STATE OF NEVADA DEPARTMENT OF TAXATION

ASK THE ADVISORS

BASIC TAX ACADEMY

MISSION STATEMENT
To provide fair, efficient and effective administration of tax programs for the State of Nevada in accordance with applicable statutes, regulations and policies. To serve the taxpayers, state and local government entities

Why am I here today?

To Learn bout!
Taxes" #usiness $egistration $e%uirements Streamlined greement &ayments ' (iling $eturns udit &rocess )lectronic (iling $e%uirements *eneral +uestions and ,larifications -.// legislative bills affecting taxation

TAXPAYERS BI!! OF RI"HTS

A #$%&'(at'o) (o)ta')')* the B'&& o+ R'*ht, +or Ta-#ayer, ', #ro.'ded/ Whe) yo$ re*',ter 0'th the De#artme)t I+ the %$,')e,, ', a$d'ted1 or 2#o) re3$e,t
N$S 01..-2/

!'(e),e, 4 Perm't,
The Ne.ada B$,')e,, Re*',trat'o) +orm 5NBR6 a)d the S$##&eme)ta& +orm are re3$'red to o%ta') a ,a&e, or $,e ta- #erm't +or yo$r %$,')e,, ') the State o+ Ne.ada Reta'&er, #ay a 789:;; ,a&e, ta- #erm't +ee +or ea(h %$,')e,, &o(at'o): Th', ', a o)e t'me +ee o)&y $)&e,, there ', a (ha)*e ') o0)er,h'# or &o(at'o):

SA!ES TAX Perm't, 4 De#o,'t,

A&o)* 0'th the Sa&e, ta- #erm't a reta'&er m$,t a&,o de#o,'t 0'th the De#artme)t ,e($r'ty ') the amo$)t o+/ 3 T0'(e the e,t'mated a.era*e ta- d$e 3$arter&y1 or 3 Three t'me, the e,t'mated ta- d$e mo)th&y '+ the reta'&er +'&e, mo)th&y1 or 3 Fo$r t'me, the e,t'mated a))$a& amo$)t '+ the reta'&er +'&e, a))$a&&y: Ca&($&ated ta- !ESS tha) 781;;;/

NO DEPOSIT RE<2IRED=
A+ter three +$&& year, o+ #er+e(t re#ort')*1 yo$ may a##&y +or a 0a'.er o+ the ,e($r'ty re3$'reme)t
NRS >?@:98;

B 2 S I N E S S

$ ) * 4 S T $

T 4 5 N

S 6 & & L ) 7 ) N T

4 N ( 5 $ 7

T 4 5 N

E&e(tro)'( F'&')* Re3$'reme)t,

ll payments of money for taxes, interest, penalties or other obligations in the aggregate amount to 8/.,... or more 76ST be made by electronic transfer
For more information and to register and pay your taxes, go to:

htt#/AA000:)e.adata-:).:*o.A0e%
*SB 517, 2007 Legislative Session effe!tive 7"1"200#

Rate, e++e(t'.e ?A8A@;;GH I e-#'re JA>;A@;8>C Ne0 Ta- Rate, %y Co$)ty

Ch$r(h'&& K ?:J;;E Do$*&a, K ?:8;;E E,mera&da K ?:D9;E H$m%o&dt K J:D9;E !')(o&) K ?:8;;E M')era& K J:D9;E Car,o) C'ty K ?:F?9E Storey K ?:J;;E Wh'te P')e K ?:F?9E C&arB K D:8;;E E&Bo K J:D9;E E$reBa K J:D9;E !a)der K ?:8;;E !yo) K ?:8;;E Nye K ?:8;;E Per,h')* K ?:8;;E Wa,hoe K ?:?@9E

Ne.ada , Sa&e, 4 2,e Tarate, .ary %y (o$)ty: Ta-e, are a##&'ed ') the (o$)ty the tra),a(t'o) taBe, #&a(e1 or the (o$)ty the de&'.ery ', made:
Ne.ada , !ar*e,t C't'e, !a, Ve*a, C C&arB Co: C D:8E He)der,o) C C&arB Co: C D:8E Re)o C Wa,hoe Co: C ?:?@9E !a$*h&') C C&arB Co: C D:8E State&')e 5Tahoe6 C Do$*&a, Co C ?:8E Car,o) C'ty C Car,o) Co: C ?:F?9E

*2011 $%ange: &B 5'1

SA!ES TAX RET2RN

Re#ort')* +re3$e)(y ', mo)th&y: The ta- ', d$e a)d #aya%&e o) or %e+ore the &a,t day o+ the )e-t mo)th: I+ a %$,')e,, ha, ,a&e, o+ &e,, that 78;1;;; #er mo)th1 the) the +'&')* +re3$e)(y may %e 3$arter&y: I+ a reta'&er had ,a&e, o+ &e,, tha) 7819;; ') the 'mmed'ate #ro(eed')* year they may re3$e,t the'r +'&')* +re3$e)(y to %e (ha)*ed to a))$a&&y: Reta'&er, are a&&o0ed a) a&&o0a)(e o+ ;:@9Eo+ the ta-e, (o&&e(ted +or the (o,t o+ (o&&e(t')* the ta-: Th', ', re+erred to a, a (o&&e(t'o) a&&o0a)(e:
NRS >?@:>?; NRS >?@:>D;

SA!ES TAX RET2RN

SA!ES TAX EXEMPTIONS

Sa&e, to or %y E-em#t a*e)('e, or "o.er)me)t e)t't'e, O$tIo+I,tate ,a&e, Sa&e, +or re,a&e Ser.'(e, )ot a,,o('ated 0'th a ,a&e o+ ta)*'%&e #er,o)a& #ro#erty I),ta&&at'o) &a%or a)d Re#a'r &a%or

E-em#t Sa&e, K
Re(ord, to Kee#
Sh'##')* do($me)t,
9 9 9 9 9 9 9 out of state sales Selling to other retailers Nevada National *uardsmen ,hurches )ducational 5rgani:ations &urchase orders ,opy of *overnmental credit card

Re,a&e Cert'+'(ate, E-em#t'o) &etter,

2)'ted State, a)d Ne.ada "o.er)me)t,

RESA!E CERTIFICATE

@;88 Cha)*e, L E++e(t'.e ?A8A88

Mo,t ta- rate, adm')',tered %y the De#artme)t o+ Ta-at'o) that 0ere ,(hed$&ed to M,$),etN o) JA>;A88 ha.e %ee) e-te)ded to JA>;A@;8> 5&B 50(6 I)tere,t rate o) (red't re+$)d, red$(ed to :@9 #er(e)t )&B 50(* I)tere,t rate o) &ate ta-e, d$e red$(ed to :?9 #er(e)t )&B 50(* "e)era& Mod'+'ed B$,')e,, Ta- +or 0a*e, $)der 7J@19;8 #er 3$arter *oe, a0ay )&B 5'1*

Sales Tax 4ssues

Sa&e,A2,e Ta- Re+ere)(e,

Stat$te, Re*$&at'o), P$%&'(at'o), Other aABAa aABAa NRS NAC Ta-)ote, FA<,

For sales and use tax, referen!es are to $%apters +72, +7(, +'0 and +'0,

SA!ES TAX
Sales tax is due on the sale for retail of Tangible &ersonal &roperty which may be!
; ; ; ; ; ; Seen <eighed 7easured (elt Touched or is 4n any other manner perceptible to the senses.

-%e sales of all tangi,le personal property is taxa,le unless spe!ifi!ally exempted ,y statute
N$S 01.#..2=

SA!ES TAX
What , ta-a%&e? "ro,, Re(e'#t, De&'.ery Char*e, 5sometimes6 Not A&& D',(o$)t, Ta- ')(&$,'.e Ser.'(e, a,,o('ated 0'th a ,a&e

ADO2STIN" SA!ES TAX

Sa&e, ta- ')(&$ded ') the #r'(e o+ the ,a&e K Re#ort the *ro,, ,a&e, amo$)t &e,, the amo$)t a&&o(ated to ta-: CA!C2!ATION/ 5&ssume $lar. $ounty Sale6 A,,$me/ 781;;; ,a&e ')(&$de, taD'.'de the 781;;; %y o$r ta- rateIII 781;;; A 8:;D8 Re#ort ') Co&$m) A/ 7 G@9:;? PROOF/ 7G@9:;? - D:8E P 7G@9:;? Q 7?F:G> P 7 ?F:G> 781;;;:;;

TIPS1 TOKES1 "RAT2ITIES

Tips given by a customer to a server as a >5L6NT $? return for services rendered are not sub@ect to tax.

/012324
4f the restaurantAbar owner Beeps any portion of the tip, that portion retained becomes part of the T C #L) sale
&ttorney 5eneral 0pinion D *5E 11-

VENDIN" MACHINES
4f you own the vending machine! ,annot taBe tax out of selling price unless there is a sign indicating 6&$ +7277'0 sales tax is included
6&$ +727520

7ust have a permit clearly visible on machine

6&$ +727500)+* 6&$ +727510

7ust maintain records with location of each machine 7ust provide the Fepartment with a list of vending machinesG must update the list whenever machines are removed or placed in different locations .

FABRICATION !ABOR
Labor used to .change tangible personal property to another form and billed in a retail sale..

O.erI(o&&e(ted Sa&e, Ta $eturn to the customer OR $emit to the Fepartment of Taxation

6&$ +7277'5

A%,or#t'o) o+ Ta Ta-#ayer, CANNOT ad.ert',e they 0'&& #ay the ,a&e, ta- )64S +727115* Ta-#ayer, CAN ,tate that M,a&e, ta- ', ')(&$dedR:N )6&$ +7277'0* I+ there ', )o ,$(h ,tateme)t o) the ').o'(e or a ,'*) that ,tate, that ,a&e, ta- ', ')(&$ded1 the) the ,a&e ', ,$%Se(t to ta-at'o) o) the e)t're amo$)t or #ort'o) that ', ,e#arated o$t re&at')* to ta)*'%&e #er,o)a& #ro#erty )6&$ +7277'0

2SE TAX
What ', 2,e Ta-?
2,e Ta- ', a m'rror o+ the ,a&e, ta-1 ,ame rate: The ta- ', mea)t to Te.e) the (om#et't'.e ad.a)ta*e that o$t o+ ,tate .e)dor, ha.e 0he) ,e&&')* a #rod$(t 0'tho$t ta-1 0he) a Ne.ada .e)dor m$,t (har*e the ta-: The ta- ', d$e o) a&& ta)*'%&e #er,o)a& #ro#erty %ro$*ht ')to th', ,tate1 +or ,tora*e1 $,e or other (o),$m#t'o) ') th', ,tate1 a)d 0here Ne.ada ,a&e, ta- ha, )ot %ee) (har*ed:

2SE TAX
Who ', re3$'red to %e re*',tered? &ny ,usiness 8%o pur!%ases tangi,le personal property 8it%out paying 6evada sales tax is re9uired to ,e registered and report t%e use tax on t%e pur!%ase7 &ny individual 8%o ma.es a large pur!%ase 8it%out paying t%e tax s%ould !onta!t t%e :epartment to pay t%e tax

2SE TAX
A)y +ee,?
;nli.e sales tax, t%ere are no permit fees for !onsumers

2SE TAX
What , ta-a%&e? Co)tra(tor, #ay $,e ta- o) the %$'&d')* mater'a&, they $,e: I)ter)etACata&o* Sa&e, P$r(ha,e, +rom o$t o+ ,tate

CONS2MER 2SE TAX RET2RN

Co)tra(t,
Co)tra(t that ha.e %ee) e)tered ')to #r'or to the ,a&e,A$,e ta- ')(rea,e o) ?A8A;G 0'&& %e a&&o0ed to #ay the ta- o) the o&d ta- rate: A +orm a)d '),tr$(t'o), +or a##&y')* +or th', ', a.a'&a%&e o) the De#artme)t , We% S'te $)der MCommo) Form,N:

REF2RBISH !ABOR
Labor used to refurbish an item of tangible personal property to restore or refit it for the use for which it was originally produced..

6&$ +727+#0)1,*

O$t o+ ,tate #$r(ha,e,

Mater'a&, #$r(ha,ed o$t o+ ,tate +or a Ne.ada So%, are ,$%Se(t to Ne.ada ta-: Ta- &e*'t'mate&y #a'd to other ,tate ', ho)ored %y Ne.adaH ho0e.er1 '+ the other ,tate ta- rate ', &o0er tha) the Ne.ada rate1 the d'++ere)(e ', d$e to Ne.ada

Pay')* other ,tate , ta-LL !e*'t'mate&y

EXAMP!E! 781;;; #$r(ha,e #ought e%uipment ') 6tah for use in Nevada Tax rate in 6tah! 1./H 5we Nevada difference D-HE Dassume $lar. $ounty rateE CA!C2!ATION/ Tax paid! 8/,... x 1./H I 81/... Nevada tax! 8/,... x J./H I 8J/... Fifference owed to Nevada! 8-.... Fivide Fifference by our tax rate! 8-.... A ..J/ I 7@FJ:G8 re#orted ') Co&$m) F
o+ ,a&e,A$,e ta- ret$r)

&$55(! 8-K1.2/ C J./H

8-....

Com#$ter So+t0are
Ta-a%&e )6&$ +727##0*: LPre0r'tte) (om#$ter ,o+t0are 564S +'0B7(706
L!'(e),')*

2SE TAX

+ee, +or Sta)dard Pre0r'tte) #ro*ram,

Not Ta-a%&e!
IC$,tom

(om#$ter So+t0are 5in!luding updates"upgrades and support servi!es6 )6&$ +727#75* C$,tom #ro*ramm')* ,er.'(e,, separately stated )6&$
+727#75*

IDe&'.ered e&e(tro)'(a&&y 5or ,y Load and Leave6

+'0B7(20*

)64S

2SE TAX
Com#$ter So+t0are 5!ontinued6
De&'.ered e&e(tro)'(a&&y 5not taxa,le6
Spe!ified digital produ!ts means ele!troni!ally transferred digital audio 8or.s, digital audiovisual 8or.s and digital ,oo.s Series of musi!al, spo.en or ot%er sounds Series of related images imparting motion :igital Boo.s 4ingtones
64S +'0B7(#+

FREI"HT1 TRANSPORTATION OR DE!IVERY CHAR"ES 7ost charges for freight, transportation or delivery is sub@ect to sales and use tax E++e(t'.e May @@1 @;;G charges for transportation, shipping or postage are no longer sub@ect to Sales ' 6se Tax if they are separately stated on the invoice. ,harges for handling, pacBing and crating are taxable whether or not separately stated.
64S +'0B72<0, 64S +'0B7(25 and 64S +'0B7(#0

75F4(4)F #6S4N)SS T C
*eneral 3 N$S 010# (inancial 4nstitutions 3 N$S 010

75F4(4)F #6S4N)SS T C
<ho is re%uired to be registeredM
ny business who is re%uired to pay a contribution for unemployment insurance e-(e#t I)d'a) Tr'%e No)#ro+'t or*a)'Uat'o) $)der @J 2:S:C: 9;85(6 Po&'t'(a& ,$%d'.','o)
64S +'+&70+0 64S +'+B70+0

75F4(4)F #6S4N)SS T C
What to re#ort? v 1ages ta.en from 2mployment Se!urity :epartment )2S:* form 6;$S (072, line +
64S +'+&71+0 64S +'+B7110

What to ded$(t?

v :edu!tions for employer paid %ealt% insuran!e allo8ed 64S +'+&71+5

64S +'+B7115

75F4(4)F #6S4N)SS T C
)mployerLpaid insurance deduction includes! 17 Self insured employer: all amounts paid for !laims, premiums, stop loss, if t%e program is a 9ualified employee 8elfare ,enefit plan 27 =remiums for a poli!y of %ealt% insuran!e for employees 64S +'+&71+5 +7 =ayments to a -aft /artley trust
64S +'+B7115

75F4(4)F #6S4N)SS T C
)mployerLpaid insurance deduction F5)S N5T include! 17 27 +7 (7 &mounts paid ,y t%e employee 1or.men>s !ompensation insuran!e Life insuran!e :isa,ility
64S +'+&71+5 64S +'+B7115

75F4(4)F #6S4N)SS T C
,ategories and $ates )t%roug% '"+0"11* *eneral
64S +'+B7110

Ta-a%&e 0a*e, $# to 7J@19;; ') a (a&e)dar 3$arter ;:9E Ta-a%&e 0a*e, o.er 7J@19;; ') a (a&e)dar 3$arter 8:8?E
5E++e(t'.e ?A8A@;;G1 a)d 0a, d$e to e-#'re o) JA>;A@;886

(inancial

-...H

64S +'+&7050 and 64S +'+&71+0

75F4(4)F #6S4N)SS T C
,ategories and $ates )2FF2$-?32 7"1"2011* *eneral
Ta-a%&e 0a*e, $# to 7J@19;; ') a (a&e)dar 3$arter
64S +'+B7110

No ta-@,ut a return A;S- still ,e filed

Ta-a%&e 0a*e, o.er 7J@19;; ') a (a&e)dar 3$arter 8:8?E 5E++e(t'.e ?A8A@;881 a)d e-#'re, o) JA>;A@;8>6

(inancial -...H

&B 5'1 amending 64S +'+&7050 and 64S +'+&71+0

75F4(4)F #6S4N)SS T C
IMPORTANT/
A) $#dated +orm +or the >rd 3$arter @;88 0'&& %e a.a'&a%&e ') the )ear +$t$re.

IMPORTANT/
The +orm ,ho0) here ', e++e(t'.e +or ta-e, d$e +or the @)d 3$arter @;88

75F4(4)F #6S4N)SS T C

$0AA06 24404S
Wa*e, )ot ,ame a, re#orted to Em#&oyme)t Se($r'ty De#artme)t
N

NFor*ot to taBe hea&th '),$ra)(e ded$(t'o) NTooB hea&th (are ded$(t'o) +or '),$ra)(e )ot a$thor'Ued %y NRS >J>A or NRS >J>B NTooB hea&th (are ded$(t'o) +or #ort'o) o+ #rem'$m that the em#&oyee #a'd: NF'&')* m$&t'#&e ret$r), d$e to )e0 t'ered rate

Stream&')ed Ta Stream&')ed Ta- ', a) e++ort to ha.e ,'m'&ar ta- &a0, thro$*ho$t the (o$)try: Ne.ada 0a, o++'('a&&y a((e#ted a, a +$&& mem%er o) FA8A@;;D: NRS >J;B 0a, added %y the @;;9 &e*',&at'.e #ro(e,, +or th', #$r#o,e: Some e-',t')* ,tat$te, $)der Cha#ter >?@ o+ the NRS 0'&& %e a++e(ted1 0'th (ha)*e, deemed to %e retroa(t'.e to @;;D:

Stream&')ed Ta #undled Transactions

3 retail sale of two or more products in which only some of the products are normally taxable, distinct and identifiable from each other #6T sold together for a single nonLitemi:edAnonLnegotiable price, then.. 3 4tOs considered #6NFL)F and. the entire bundle is sub@ect to sales tax"

N , 0P-..K=

 #undled Transactions

Stream&')ed Ta-

3 &rimary reason for transaction is a sale of a service, then.. 3 the transaction is N5T considered bundled NF 6se tax is due on the cost of the tangible personal property using the cost of the item to the retailer as the use taxable measure.

N , 0P-..K=

!IVE ENTERTAINMENT TAX

DnonLgamingE

L4>) )NT)$T 4N7)NT T C

DNo)I"am')*6
Th', ', a T0oIT'ered Ta- Rate d$e mo)th&y: No re*',trat'o) +ee re3$'red:
8;E ta- rate a##&'(a%&eISeat')* Ca#a('ty 5@;;I?FGG6 5NRS >JDA:@;;5a66 3 O) adm',,'o) a)d (o.er (har*e,1 +ood1 re+re,hme)t, a)d mer(ha)d',e ,a&e,: Th', ', ') add't'o) to a##&'(a%&e ,a&e, ta- o) +ood1 re+re,hme)t, a)d mer(ha)d',e ,o&d: 9E ta- rate a##&'(a%&eISeat')* Ca#a('ty 5?9;; a)d o.er6 5NRS >JDA:@;;5%66 3 O) adm',,'o) a)d (o.er (har*e, o)&y +or !'.e E)terta')me)t taB')* #&a(e at a +a('&'ty 0'th ma-'m$m ,eat')* (a#a('ty o+ ?19;; or more: No ta-I)o)I*am')* +a('&'t'e, 0'th a ,eat')* (a#a('ty o+ &e,, tha) @;;
NRS >JDA

!IVE ENTERTAINMENT TAX 5No)I"am')*6

Live entertainment in!ludes t%e follo8ing a!tivities provided ,y professional or amateur persons! Live music or vocals Fancing by performers ctingAdrama crobaticsAstunts nimal Stunts thletic or sporting contestsQ ,omedy or magic shows ny or all of the above
N$S 01J ..2.D-EDaE

!IVE ENTERTAINMENT TAX 5No)I"am')*6

Live entertainment does 60- in!lude t%e follo8ing a!tivities #oxing contestAexhibition governed by the 6evada &t%leti! $ommission DN$S K1PE &rovided by or for entities formed under 4$S =./DcE )ntertainment prohibited to be taxed under other laws )ntertainment provided at trade shows (oodAproduct demonstrations or craft show N S, $ racing events Da, o+ ?A8A;?E #aseball event at a stadium in this state Da, o+ ?A8A;?E Live entertainment in outdoor area with no admission
64S +'#&7200)5*

CANCE!IN" YO2R ACCO2NT

C&o,')* yo$r a((o$)t/ 4f you close or sell your business, you must contact the Fepartment. ?ou can cancel your account by contacting us by phone written correspondence visiting us at one of our 4 district offices. Rowever you choose to contact us, certain information will be re%uired in order to expedite the canceling of your account and refund any security deposit or credits to which you may be entitled.

We%,'te I)+ormat'o)
htt#/AAta-:,tate:).:$,A
E-(',e Ta-e, )-ire, ?nsuran!e, Li9uor, S%ort term
Lease, to,a!!o, mining, et!7*

@;88 !e*',&at'.e Ta- Cha)*e,ICom')* Soo)= FA< , <$'(B !')B, )Spe!ifi! tax information, updates* !')B, )6evada %ome page, ?4S, 2S:, :A3, et!7*

ASK THE ADVISOR

Several tax presentations are available on the FepartmentOs website. These presentations are in the form of powerLpoint or &F( files and can be downloaded.
5o to t%e :epartment 8e,site, !li!. on t%e B&s. t%e &dvisor -rainingC lin. );nder Dui!. Lin.s* and sele!t t%e presentation7 more

ASK THE ADVISOR

v Basic Training vOnline-Filing-Registration vRepairs & Delivery harges v!edical v onstruction v!odified Business Ta" v#eases vOther Tobacco $roducts vThe %udit $rocess v&hort term leases v%utomotive

Ta- ')+ormat'o) o) ,#e('+'( ',,$e, 0h'(h are a.a'&a%&e o) the De#artme)t , 0e%,'te:

Wr'tte) Re,#o),e
7ost tax issues can be addressed by the Fepartment of Taxation. &lease be advised that any responses to in%uires made to the Fepartment are only binding if put in writing, such as Nevada $evised Statutes, dministrative ,ode, Nevada Tax Notes, or in written correspondence.

DEPARTMENT OF TAXATION Co)ta(t I)+ormat'o)

O$r o++'(e, are o#e) Mo)dayIFr'day D/;; AM K 9/;; PM
Co)ta(t o$r Ca&& Ce)ter at 8IDJJIGJ@I>?;? 5!losed during lun!%6 So$ther) Ne.ada! *rant Sawyer 5ffice #uilding === ). <ashington venue Suite /0.. Las >egas, N> J2/./ OR -==. &aseo >erde &arBway Suite /J. Renderson, N> J2.PK Car,o) C'ty! /==. ,ollege &arBway Suite //= ,arson ,ity, N> J2P.1LP20P Re)o! K1.. Siet:Be Lane #uilding L, Suite -0= $eno, N> J2=.-