Nevada Tax Notes Form Page 2
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4NEW TAXPAYER IDENTIFICATION NUMBER
2004 GENERAL ELECTION
BALLOT QUESTION 8
The Department of Taxation is in the process of
developing a new computer Tax Administration System
In the 2004 general election, Ballot Question #8 was
(TAS) as part of our continuous effort to provide
defeated.
This repealed NRS 374.107, 374.112,
consistent, effective and efficient administration of taxes.
374.113, 374.286, 374.291, 374.2911, 374.322 and
As the Department moves toward improved service and
374.323 and redefined NRS 374.040 & 374.070.
proficiency through new technology, there is a need for
Effective January 1, 2006, the following exemptions
the assignment of a new Taxpayer Identification Number
from local sales and use taxes have been rescinded:
(TID) for every entity registered with the Department of
Taxation. The 10-digit numerical TID will serve as a
Exemption on the sale of, and the storage, use or
unique identifier for reference when communication
other consumption in a county of, farm machinery
occurs between taxpayers and the Department.
and equipment employed for the agricultural use of
real property. Will go back to a vote of the people in
The first phase of system implementation took place in
November 2006.
June 2005 and included the administration of Business
License (BL) registration and renewal, and Modified
Exemption on the sale of any ophthalmic or ocular
Business Tax (MBT) filing. In the future, all BL and MBT
device or appliance prescribed by a physician or
correspondence from the Department will reference the
optometrist.
taxpayer’s TID.
Exemption for the sale of aircraft, aircraft engines
In addition to the 10-digit TID, a 3-digit prefix will be
and component parts of aircraft which are for use by
printed on BL renewals and MBT returns to identify the
a commercial air carrier.
associated tax and form type.
For example, a MBT
General Business tax return will have the 3-digit prefix
Exemption on the sale of engines, chassis, parts and
and TID printed on the form in the following format:
components of professional racing vehicles; certain
020-TX-1234567890
vehicles used by professional racing team or
sanctioning body.
The 3-digit prefix and TID will print on all MBT returns
and BL renewals.
Please contact and share this
Exemption from the sales of, and the storage, use or
information with your tax preparer so that necessary
other consumption in a county of, works of fine art
updates are made for your own record-keeping
for public display.
purposes.
MBT ACCOUNT CONSOLIDATION
Private party sales of vehicles will become fully
exempt from all sales and use taxes.
With the implementation of our new Tax Administration
System (TAS), employers who are subject to the
The amount of any allowance against the selling
Modified Business Tax (MBT) will be required to report
price given by a retailer for the value of a used
their payroll on a consolidated basis if they share a
vehicle which is taken in trade on the purchase of
single Federal Employer Identification Number (FEIN).
another vehicle was extended and will remain in
In other words, for purposes of the MBT only, a group of
effect until January 1, 2007.
affiliated companies using a single FEIN must report
their payroll under a single account (and will receive one
LIVE ENTERTAINMENT TAX
MBT return from the Department). The example below
illustrates this account consolidation:
2005 LEGISLATIVE CHANGES
Identification
Taxpayer
Senate Bill 3 and Assembly Bill 554 of the 2005
UI Account
FEIN
_____Number______
Legislative Session provided changes to NRS 368A Tax
1234500
88-1234567
1234567890
on Live Entertainment effective July 1, 2005. The major
1234501
88-1234567
1234567890
changes are listed below:
1234502
88-1234567
1234567890
1. The 10% tax rate is applicable to admission charges,
The consolidation is required by the Department of
merchandise, food and refreshments sold at live
Taxation only and does not affect the Unemployment
entertainment facilities where the occupancy is at
Insurance (UI) number given you by the Employment
least 200 (reduced from 300 patrons). The 5% tax
Security Division. Likewise, it does not affect employers
rate on admission charges only remains the same
who are subject to the Modified Business Tax on
for facilities with occupancy of 7,500 or more.
Financial
Institutions
(MBTFI).
Most
employers,
2. The term “seating capacity” has been changed to
including those subject to the MBTFI, will not experience
“maximum occupancy,” which is defined as the
a change in the way they report their payroll. However,
maximum occupancy of the facility determined by
employers who share a single FEIN will be impacted in
the State Fire Marshal or other local governmental
the way they report payroll for purposes of the MBT.
agency. If the maximum occupancy has not been
Effective July 1, 2005, all returns will reflect this
pre-determined
for
the
facility,
the
maximum
consolidation.
occupancy will be designated at the time occupancy
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