Nevada ~ Sales and Use Tax: Temporary Increase in Local School Support Tax Extended Two Years, Other Changes

The temporary increase to the local Nevada school support tax rate is extended until June 30, 2013. The rate was temporarily increased by 0.35% effective July 1, 2009, and the temporary increase was set to expire on June 30, 2011. The current rate with the temporary increase is 2.6%, and it is set to return to the previous rate of 2.25% once the temporary increase expires. The local school support tax is a component of the overall state sales and use tax rate.

Also, effective July 1, 2011, and expiring June 30, 2013, a partial abatement for certain renewable energy facilities approved by the Commissioner of the Department of Taxation must: (1) be for three years beginning on the date of approval of the application; (2) be equal to that portion of the combined rate of all the local sales and use taxes payable by the facility each year that exceeds 0.6% (previously, 0.25%); and (3) not apply during any period in which the facility is receiving another abatement or exemption from local sales and use taxes. The department must issue to the facility a document certifying the abatement that can be presented to retailers at the time of sale. The document must clearly state that the purchaser is only required to pay sales and use taxes imposed in Nevada at the rate of 2.6% (previously, 2.25%).

Related stories discuss income tax (TAXDAY, 2011/06/21, S.24) and other tax (TAXDAY, 2011/06/21, S.26) provisions contained in the legislation.

Ch. 476 (A.B. 561), Laws 2011, effective June 17, 2011, unless otherwise noted

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