NRS: CHAPTER 363C - COMMERCE TAX

[Rev. 6/29/2024 3:47:04 PM--2023]

CHAPTER 363C - COMMERCE TAX

GENERAL PROVISIONS

NRS 363C.010 Definitions.

NRS 363C.015 “Business” defined.

NRS 363C.020 “Business entity” defined.

NRS 363C.025 “Commerce tax” defined.

NRS 363C.030 “Credit sales” defined.

NRS 363C.035 “Engaging in a business” defined.

NRS 363C.040 “Governmental entity” defined.

NRS 363C.045 “Gross revenue” defined.

NRS 363C.050 “Loan” defined.

NRS 363C.055 “Nevada gross revenue” defined.

NRS 363C.060 “North American Industry Classification System” and “NAICS” defined.

NRS 363C.065 “Pass-through entity” defined.

NRS 363C.070 “Pass-through revenue” defined.

NRS 363C.075 “Securities” defined.

NRS 363C.080 “Taxable year” defined.

NRS 363C.085 “Wages” defined.

NRS 363C.090 References to Internal Revenue Code.

NRS 363C.093 Businesses constituting passive entities.

NRS 363C.097 Determination of business category.

ADMINISTRATION

NRS 363C.100 Duties of Department.

NRS 363C.110 Maintenance and availability of records of taxpayer; regulations.

NRS 363C.120 Examination of records by Department; payment of expenses of Department for examination of records outside this State.

NRS 363C.130 Authority of Executive Director to request information from other agencies and officers; confidentiality.

NRS 363C.140 Method of accounting.

IMPOSITION AND COLLECTION

NRS 363C.200 Imposition; payment of tax; filing of return; extension of time for payment; payment of interest during period of extension.

NRS 363C.210 Deductions from gross revenue.

NRS 363C.220 Situsing.

CALCULATION OF TAX

NRS 363C.300 Rate of tax based on business category in which business entity is primarily engaged.

NRS 363C.310 Agriculture, forestry, fishing and hunting (NAICS 11).

NRS 363C.320 Mining, quarrying and oil and gas extraction (NAICS 21).

NRS 363C.330 Utilities and telecommunications (NAICS 22 and 517).

NRS 363C.340 Construction (NAICS 23).

NRS 363C.350 Manufacturing (NAICS 31, 32 and 33).

NRS 363C.360 Wholesale trade (NAICS 42).

NRS 363C.370 Retail trade (NAICS 44 and 45).

NRS 363C.380 Air transportation (NAICS 481).

NRS 363C.390 Rail transportation (NAICS 482).

NRS 363C.400 Other transportation (NAICS 483, 485, 486, 487, 488, 491 and 492).

NRS 363C.410 Truck transportation (NAICS 484).

NRS 363C.420 Warehousing and storage (NAICS 493).

NRS 363C.430 Publishing, software and data processing (NAICS 511, 512, 515 and 518).

NRS 363C.440 Finance and insurance (NAICS 52).

NRS 363C.450 Real estate and rental and leasing (NAICS 53).

NRS 363C.460 Professional, scientific and technical services (NAICS 54).

NRS 363C.470 Management of companies and enterprises (NAICS 55).

NRS 363C.480 Administrative and support services (NAICS 561).

NRS 363C.490 Waste management and remediation services (NAICS 562).

NRS 363C.500 Educational services (NAICS 61).

NRS 363C.510 Health care and social assistance (NAICS 62).

NRS 363C.520 Arts, entertainment and recreation (NAICS 71).

NRS 363C.530 Accommodation (NAICS 721).

NRS 363C.540 Food services and drinking places (NAICS 722).

NRS 363C.550 Other services (NAICS 81).

NRS 363C.560 Unclassified business entities.

OVERPAYMENTS AND REFUNDS

NRS 363C.600 Certification of excess amount collected; credit and refund.

NRS 363C.610 Limitations on claims for refund or credit; form and contents of claim; failure to file claim constitutes waiver; service of notice of rejection of claim.

NRS 363C.620 Interest on overpayments; disallowance of interest.

NRS 363C.630 Injunction or other process to prevent collection of tax prohibited; filing of claim is condition precedent to maintaining action for refund.

NRS 363C.640 Action for refund: Period for commencement; venue; waiver.

NRS 363C.650 Rights of claimant upon failure of Department to mail notice of action on claim; allocation of judgment for claimant.

NRS 363C.660 Allowance of interest in judgment for amount illegally collected.

NRS 363C.670 Standing to recover.

NRS 363C.680 Action for recovery of erroneous refund: Jurisdiction; venue; prosecution.

NRS 363C.690 Cancellation of illegal determination.

MISCELLANEOUS PROVISIONS

NRS 363C.700 Remedies of State are cumulative.

_________

GENERAL PROVISIONS

NRS 363C.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 363C.015 to 363C.085, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2015, 2878)

NRS 363C.015 “Business” defined. “Business” means any activity engaged in or caused to be engaged in with the object of gain, benefit or advantage, either direct or indirect, to any person or governmental entity.

(Added to NRS by 2015, 2878)

NRS 363C.020 “Business entity” defined.

1. Except as otherwise provided in subsection 2, “business entity” means a corporation, partnership, proprietorship, limited-liability company, business association, joint venture, limited-liability partnership, business trust, professional association, joint stock company, holding company and any other person engaged in a business.

2. “Business entity” does not include:

(a) Any person or other entity which this State is prohibited from taxing pursuant to the Constitution or laws of the United States or the Nevada Constitution.

(b) A natural person, unless that person is engaging in a business and is required to file with the Internal Revenue Service a Schedule C (Form 1040), Profit or Loss from Business, or its equivalent or successor form, a Schedule E (Form 1040), Supplemental Income and Loss, or its equivalent or successor form, or a Schedule F (Form 1040), Profit or Loss from Farming, or its equivalent or successor form, for that business.

(d) A nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c).

(e) A business entity organized pursuant to chapter 82 or 84 of NRS.

(f) A credit union organized under the provisions of chapter 672 of NRS or the Federal Credit Union Act.

(g) A grantor trust as defined by section 671 and 7701(a)(30)(E) of the Internal Revenue Code, 26 U.S.C. §§ 671 and 7701(a)(30)(E), all of the grantors and beneficiaries of which are natural persons or charitable entities as described in section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), excluding a trust taxable as a business entity pursuant to 26 C.F.R. § 301.7701-4(b).

(h) An estate of a natural person as defined by section 7701(a)(30)(D) of the Internal Revenue Code, 26 U.S.C. § 7701(a)(30)(D), excluding an estate taxable as a business entity pursuant to 26 C.F.R. § 301.7701-4(b).

(i) A real estate investment trust, as defined by section 856 of the Internal Revenue Code, 26 U.S.C. § 856, and its qualified real estate investment trust subsidiaries, as defined by section 856(i)(2) of the Internal Revenue Code, 26 U.S.C. § 856(i)(2), except that:

(1) A real estate investment trust with any amount of its assets in direct holdings of real estate, other than real estate it occupies for business purposes, as opposed to holding interests in limited partnerships or other entities that directly hold the real estate, is a business entity pursuant to this section; and

(2) A limited partnership or other entity that directly holds the real estate as described in subparagraph (1) is a business entity pursuant to this section, without regard to whether a real estate investment trust holds an interest in it.

(j) A real estate mortgage investment conduit, as defined by section 860D of the Internal Revenue Code, 26 U.S.C. § 860D.

(k) A trust qualified under section 401(a) of the Internal Revenue Code, 26 U.S.C. § 401(a).

(l) A passive entity.

(m) A person whose activities within this State are confined to the owning, maintenance and management of the person’s intangible investments or of the intangible investments of persons or statutory trusts or business trusts registered as investment companies under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended, and the collection and distribution of the income from such investments or from tangible property physically located outside this State. For the purposes of this paragraph, “intangible investments” includes, without limitation, investments in stocks, bonds, notes and other debt obligations, including, without limitation, debt obligations of affiliated corporations, real estate investment trusts, patents, patent applications, trademarks, trade names and similar types of intangible assets or an entity that is registered as an investment company under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq.

(n) A person who takes part in an exhibition, trade show, industry or corporate meeting or similar event held in this State for a purpose related to the conduct of a business, including, without limitation, an organizer, manager or sponsor of such an event or an exhibitor at such an event.

(o) A person engaged in the business of extracting gold or silver in this State.

(Added to NRS by 2015, 2878; A 2021, 580, 1285)

NRS 363C.025 “Commerce tax” defined. “Commerce tax” means the tax required to be paid pursuant to this chapter.

(Added to NRS by 2015, 2880)

NRS 363C.030 “Credit sales” defined. “Credit sales” means a sale of goods by a seller who accepts payments for the goods at a later time.

(Added to NRS by 2015, 2880)

NRS 363C.035 “Engaging in a business” defined. “Engaging in a business” means commencing, conducting or continuing a business, the exercise of corporate or franchise powers regarding a business, and the liquidation of a business which is or was engaging in a business when the liquidator holds itself out to the public as conducting that business.

(Added to NRS by 2015, 2880)

NRS 363C.040 “Governmental entity” defined. “Governmental entity” means:

1. The United States and any of its unincorporated agencies and instrumentalities.

2. Any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.

3. The State of Nevada and any of its unincorporated agencies and instrumentalities.

4. Any county, city, district or other political subdivision of this State.

(Added to NRS by 2015, 2880)

NRS 363C.045 “Gross revenue” defined.

1. Except as otherwise provided in subsection 3, “gross revenue” means the total amount realized by a business entity from engaging in a business in this State, without deduction for the cost of goods sold or other expenses incurred, that contributes to the production of gross income, including, without limitation, the fair market value of any property and any services received, and any debt transferred or forgiven as consideration.

2. Except as otherwise provided in subsection 3, the term includes, without limitation:

(a) Amounts realized from the sale, exchange or other disposition of a business entity’s property;

(b) Amounts realized from the performance of services by a business entity;

(d) Any combination of these amounts.

3. The term does not include:

(a) Amounts realized from the sale, exchange, disposition or other grant of the right to use trademarks, trade names, patents, copyrights and similar intellectual property;

(b) The value of cash discounts allowed by the business entity and taken by a customer;

(d) Amounts realized from a transaction subject to, described in, or equivalent to, section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031 or 1033 of the Internal Revenue Code, 26 U.S.C. § 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031 or 1033, regardless of the federal tax classification of the business entity under 26 C.F.R. § 301.7701-3;

(e) Amounts indirectly realized from a reduction of an expense or deduction;

(f) The value of property or services donated to a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), if the donation is tax deductible pursuant to the provisions of section 170(c) of the Internal Revenue Code, 26 U.S.C. § 170(c); and

(g) Amounts that are not considered revenue under generally accepted accounting principles.

(Added to NRS by 2015, 2880)

NRS 363C.050 “Loan” defined. “Loan” means any extension of credit or the purchase in whole or in part of an extension of credit from another person, including, without limitation, participations and syndications.

(Added to NRS by 2015, 2881)

NRS 363C.055 “Nevada gross revenue” defined. “Nevada gross revenue” means the gross revenue of a business entity from engaging in a business in this State, as adjusted pursuant to NRS 363C.210 and sitused to this State pursuant to NRS 363C.220.

(Added to NRS by 2015, 2881)

NRS 363C.060 “North American Industry Classification System” and “NAICS” defined. “North American Industry Classification System” or “NAICS” means the 2012 North American Industry Classification System published by the Bureau of the Census of the United States Department of Commerce.

(Added to NRS by 2015, 2881)

NRS 363C.065 “Pass-through entity” defined. “Pass-through entity” means an entity that is disregarded as an entity for the purposes of federal income taxation or is treated as a partnership for the purposes of federal income taxation.

(Added to NRS by 2015, 2881)

NRS 363C.070 “Pass-through revenue” defined.

1. “Pass-through revenue” means:

(a) Revenue received by a business entity that is required by law or fiduciary duty to be distributed to another person or governmental entity;

(b) Taxes collected from a third party by a business entity and remitted by the business entity to a taxing authority;

(c) Reimbursement for advances made by a business entity on behalf of a customer or client, other than with respect to services rendered or with respect to purchases of goods by the business entity in carrying out the business in which it engages;

(d) Revenue received by a business entity that is mandated by contract or subcontract to be distributed to another person or entity if the revenue constitutes:

(1) Sales commissions that are paid to a person who is not an employee of the business entity, including, without limitation, a split-fee real estate commission;

(2) The tax basis of securities underwritten by the business entity, as determined for the purposes of federal income taxation; or

(3) Subcontracting payments under a contract or subcontract entered into by a business entity to provide services, labor or materials in connection with the actual or proposed design, construction, remodeling, remediation or repair of improvements on real property or the location of the boundaries of real property;

(e) Revenue received by a business entity that provides legal services if the revenue received by the business entity is:

(1) Mandated by law, fiduciary duty or contract to be distributed to a claimant by the claimant’s attorney or to another person or entity on behalf of a claimant by the claimant’s attorney, including, without limitation, revenue received:

(I) For damages due to a client represented by the business entity;

(II) That is subject to a lien or other contractual obligation arising out of the representation provided by the business entity, other than fees owed to the business entity for the provision of legal services;

(III) That is subject to a subrogation interest or other third-party contractual claim; and

(IV) That is required to be paid to another attorney who provided legal services in a matter and who is not a member, partner, shareholder or employee of the business entity; and

(2) Reimbursement of the expenses incurred by the business entity in providing legal services to a claimant that are specific to the claimant’s matter and that are not general operating expenses of the business entity; or

(f) Revenue received by a business entity that is part of an affiliated group from another member of the affiliated group.

2. As used in this section:

(a) “Affiliated group” means a group of two or more business entities, including, without limitation, a business entity described in subsection 2 of NRS 363C.020, each of which is controlled by one or more common owners or by one or more members of the group.

(b) “Controlled by” means the direct or indirect ownership, control or possession of 50 percent or more of a business entity.

(1) Any form of compensation paid to a person for engaging in an act for which a license is required pursuant to chapter 645 of NRS; or

(2) Compensation paid to a sales representative by a principal in an amount that is based on the amount or level of orders for or sales on behalf of the principal and that the principal is required to report on Internal Revenue Service Form 1099-MISC, Miscellaneous Income.

(Added to NRS by 2015, 2881)

NRS 363C.075 “Securities” defined. “Securities” means United States Treasury securities, obligations of United States governmental agencies and corporations, obligations of a state or political subdivision, corporate stock, bonds, participations in securities backed by mortgages held by the United States or state governmental agencies, loan-backed securities, money market instruments, federal funds, securities purchased and sold under agreements to resell or repurchase, commercial paper, banker’s acceptances, purchased certificates of deposit, options, futures contracts, forward contracts, notional principal contracts, including, without limitation, swaps, and other similar securities and instruments.

(Added to NRS by 2015, 2882)

NRS 363C.080 “Taxable year” defined. “Taxable year” means the 12-month period beginning on July 1 and ending on June 30 of the following year.

(Added to NRS by 2015, 2882)

NRS 363C.085 “Wages” defined. “Wages” means any remuneration paid for personal services, including, without limitation, commissions and bonuses, and remuneration payable in any medium other than cash.

(Added to NRS by 2015, 2882)

NRS 363C.090 References to Internal Revenue Code. For the purposes of this chapter, unless otherwise indicated, section references are to the Internal Revenue Code of 1986, as amended, and include future amendments to such sections and corresponding provisions of future federal internal revenue laws.

(Added to NRS by 2015, 2882)

NRS 363C.093 Businesses constituting passive entities.

1. For the purposes of this chapter, a business is a “passive entity” only if:

(a) The business is a limited-liability company, general partnership, limited-liability partnership, limited partnership or limited-liability limited partnership, or a trust, other than a business trust;

(b) During the period for which the gross revenue of the business entity is reported pursuant to NRS 363C.200, at least 90 percent of the business entity’s federal gross income consists of the following income:

(1) Dividends, interest, foreign currency exchange gains, periodic and nonperiodic payments with respect to notional principal contracts, option premiums, cash settlements or termination payments with respect to a financial instrument, and income from a limited-liability company;

(2) Capital gains from the sale of real property, gains from the sale of commodities traded on a commodities exchange and gains from the sale of securities; and

(3) Royalties, bonuses or delay rental income from mineral properties and income from other nonoperating mineral interests; and

(c) The business entity does not receive more than 10 percent of its federal gross income from conducting an active trade or business.

2. As used in paragraph (b) of subsection 1, the term “income” does not include any:

(a) Rent; or

(b) Income received by a nonoperator from mineral properties under a joint operating agreement if the nonoperator is a member of an affiliated group and another member of that group is the operator under that joint operating agreement.

3. For the purposes of paragraph (c) of subsection 1:

(a) Except as otherwise provided in this subsection, a business entity is “conducting an active trade or business” if:

(1) The activities being carried on by the business entity include one or more active operations that form a part of the process of earning income or profit, and the business entity performs active management and operating functions; or

(2) Any assets, including, without limitation, royalties, patents, trademarks and other intangible assets, held by the business entity are used in the active trade or business of one or more related business entities.

(b) The ownership of a royalty interest or a nonoperating working interest in mineral rights does not constitute the conduct of an active trade or business.

(c) The payment of compensation to employees or independent contractors for financial or legal services reasonably necessary for the operation of a business does not constitute the conduct of an active trade or business.

(d) Holding a seat on the board of directors of a business entity does not by itself constitute the conduct of an active trade or business.

(e) Activities performed by a business entity include activities performed by persons outside the business entity, including independent contractors, to the extent that those persons perform services on behalf of the business entity and those services constitute all or any part of the business entity’s trade or business.

(Added to NRS by 2015, 2883)

NRS 363C.097 Determination of business category. For the purposes of this chapter, if a business entity engaging in a business in this State is engaged in business in more than one business category set forth in NRS 363C.310 to 363C.560, inclusive, the business entity shall be deemed to be primarily engaged in the business category in which the highest percentage of its Nevada gross revenue is generated.

(Added to NRS by 2015, 2884)

ADMINISTRATION

NRS 363C.100 Duties of Department. The Department shall:

1. Administer and enforce the provisions of this chapter, and may adopt such regulations as it deems appropriate for that purpose.

2. Deposit all taxes, interest and penalties it receives pursuant to this chapter in the State Treasury for credit to the State General Fund.

(Added to NRS by 2015, 2884)

NRS 363C.110 Maintenance and availability of records of taxpayer; regulations.

1. Each person responsible for maintaining the records of a business entity shall:

(a) Keep such records as may be necessary to determine the amount of the liability of the business entity pursuant to the provisions of this chapter;

(b) Preserve those records for 4 years or until any litigation or prosecution pursuant to this chapter is finally determined, whichever is longer; and

(c) Make the records available for inspection by the Department upon demand at reasonable times during regular business hours.

2. The Department may by regulation specify the types of records which must be kept to determine the amount of the liability of a business entity pursuant to the provisions of this chapter. The regulations adopted by the Department pursuant to this subsection must specify the type of information that a business entity engaging in a business in this State must keep in the normal course of its financial recordkeeping for the purpose of determining the amount of the commerce tax owed by the business entity.

(Added to NRS by 2015, 2884)

NRS 363C.120 Examination of records by Department; payment of expenses of Department for examination of records outside this State.

1. To verify the accuracy of any return filed or, if no return is filed by a business entity, to determine the amount of the commerce tax required to be paid pursuant to this chapter, the Department, or any person authorized in writing by the Department, may examine the books, papers and records of any person who may be liable for the commerce tax.

2. Any person who may be liable for the commerce tax and who keeps outside of this State any books, papers or records relating thereto shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the State for each day or fraction thereof during which an employee of the Department is engaged in examining those documents, plus any other actual expenses incurred by the employee while he or she is absent from his or her regular place of employment to examine those documents.

(Added to NRS by 2015, 2884)

NRS 363C.130 Authority of Executive Director to request information from other agencies and officers; confidentiality. The Executive Director may request from any other governmental agency or officer such information as the Executive Director deems necessary to carry out the provisions of this chapter. If the Executive Director obtains any confidential information pursuant to such a request, he or she shall maintain the confidentiality of that information in the same manner and to the same extent as provided by law for the agency or officer from whom the information was obtained.

(Added to NRS by 2015, 2884)

NRS 363C.140 Method of accounting. A business entity’s method of accounting for gross revenue for a taxable year for the purposes of determining the amount of the commerce tax owed by the business entity must be the same as the business’s method of accounting for federal income tax purposes for the business’s federal taxable year which includes that calendar quarter. If a business entity’s method of accounting for federal income tax purposes changes, its method of accounting for gross revenue pursuant to this chapter must be changed accordingly.

(Added to NRS by 2015, 2894)

IMPOSITION AND COLLECTION

NRS 363C.200 Imposition; payment of tax; filing of return; extension of time for payment; payment of interest during period of extension.

1. For the privilege of engaging in a business in this State, a commerce tax is hereby imposed upon each business entity whose Nevada gross revenue in a taxable year exceeds $4,000,000 in an amount determined pursuant to NRS 363C.300 to 363C.560, inclusive. The commerce tax is due and payable as provided in this section.

2. Each business entity whose Nevada gross revenue in a taxable year exceeds $4,000,000 shall, on or before the 45th day immediately following the end of that taxable year, file with the Department a return on a form prescribed by the Department. The Department shall not require a business entity whose Nevada gross revenue for a taxable year is $4,000,000 or less to file a return for that taxable year. The return required by this subsection must include such information as is required by the Department.

3. For the purposes of determining the amount of the commerce tax due pursuant to this chapter, the initial return filed by a business entity with the Department pursuant to subsection 2 must designate the business category in which the business entity is primarily engaged. A business entity may not change the business category designated for that business entity unless the person applies to the Department to change such designation and the Department determines that the business is no longer primarily engaged in the designated business category.

4. A business entity shall remit with the return the amount of commerce tax due pursuant to subsection 1. Upon written application made before the date on which payment of the commerce tax due pursuant to this chapter must be made, the Department may for good cause extend by not more than 30 days the time within which a business entity is required to pay the commerce tax. If the commerce tax is paid during the period of extension, no penalty or late charge may be imposed for failure to pay the commerce tax at the time required, but the business entity shall pay interest at the rate of 0.75 percent per month from the date on which the amount would have been due without the extension until the date of payment, unless otherwise provided in NRS 360.232 or 360.320.

(Added to NRS by 2015, 2884; A 2019, 2021)

NRS 363C.210 Deductions from gross revenue.

1. In computing the commerce tax owed by a business entity pursuant to this chapter, the business entity is entitled to deduct from its gross revenue the following amounts, to the extent such amounts are included in gross revenue of the business entity:

(a) Any gross revenue which this State is prohibited from taxing pursuant to the Constitution or laws of the United States or the Nevada Constitution.

(b) Any gross revenue of the business entity attributable to dividends and interest upon any bonds or securities of the Federal Government, the State of Nevada or a political subdivision of this State.

(c) If a business entity is required to pay a license fee pursuant to NRS 463.370, the amount of its gross receipts used to determine the amount of that fee.

(d) If the business entity is required to pay a tax on the net proceeds from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, the amount of the gross proceeds used to determine the amount of that tax.

(e) If the business entity is required to pay the tax imposed by chapter 369 of NRS, an amount equal to the amount of the excise tax paid pursuant to that chapter by the business entity.

(f) If the business entity is required to pay the tax imposed pursuant to chapter 680B of NRS:

(1) The amount of the total income derived from direct premiums written and all other considerations for insurance, bail or annuity contracts used to determine the amount of the tax imposed pursuant to chapter 680B of NRS;

(2) Any amounts excluded from total income derived from direct premiums pursuant to NRS 680B.025; and

(3) Gross premiums upon policies on risks located in this State received by a factory mutual and amounts deducted from such gross premiums to determine the amount of the tax imposed by NRS 680B.027 upon the factory mutual pursuant to NRS 680B.033.

(g) If the business entity is required to pay the tax imposed pursuant to NRS 694C.450, the amount of the net direct premiums, as defined in that section, used to determine the amount of that tax.

(h) If the business entity is required to pay the tax imposed pursuant to NRS 685A.180, the amount of the premiums, as defined in that section, used to determine the amount of that tax.

(i) Except as otherwise provided by paragraph (j), the total amount of payments received by a health care provider:

(1) From Medicaid, Medicare, the Children’s Health Insurance Program, the Fund for Hospital Care to Indigent Persons created pursuant to NRS 428.175 or TRICARE;

(2) For professional services provided in relation to a workers’ compensation claim; and

(3) For the actual cost to the health care provider for any uncompensated care provided by the health care provider, except that if the health care provider later receives payment for all or part of that care, the health care provider must include the amount of the payment in his or her gross receipts for the calendar quarter in which the payment is received.

(j) If the business entity is engaging in a business in this State as a health care provider that is a health care institution, an amount equal to 50 percent of the amounts described in paragraph (i) that are received by the health care institution.

(k) If the business entity is engaging in business in this State as a professional employer organization, the amount of any payments received from a client company for wages, payroll taxes on those wages, employee benefits and workers’ compensation benefits for employees leased to the client company.

(l) The amount of any pass-through revenue of the business entity.

(m) The tax basis of securities and loans sold by the business entity, as determined for the purposes of federal income taxation.

(n) The amount of revenue received by the business entity that is directly derived from the operation of a facility that is:

(1) Located on property owned or leased by the Federal Government; and

(2) Managed or operated primarily to house members of the Armed Forces of the United States.

(o) Interest income other than interest on credit sales.

(p) Dividends and distributions from corporations, and distributive or proportionate shares of receipts and income from a pass-through entity.

(q) Receipts from the sale, exchange or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code, 26 U.S.C. § 1221 or 1231, without regard to the length of time the business entity held the asset.

(r) Receipts from a hedging transaction, as defined in section 1221 of the Internal Revenue Code, 26 U.S.C. § 1221, or a transaction accorded hedge accounting treatment under Statement No. 133 of the Financial Accounting Standards Board, Accounting for Derivative Instruments and Hedging Activities, to the extent the transaction is entered into primarily to protect a financial position, including, without limitation, managing the risk of exposure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity or investments in foreign operations, to interest rate fluctuations or to commodity price fluctuations. For the purposes of this paragraph, receipts from the actual transfer of title of real or tangible personal property to another business entity are not receipts from a hedging transaction or a transaction accorded hedge accounting treatment.

(s) Proceeds received by a business entity that are attributable to the repayment, maturity or redemption of the principal of a loan, bond, mutual fund, certificate of deposit or marketable instrument.

(t) The principal amount received under a repurchase agreement or on account of any transaction properly characterized as a loan.

(u) Proceeds received from the issuance of the business entity’s own stock, options, warrants, puts or calls, from the sale of the business entity’s treasury stock or as contributions to the capital of the business entity.

(v) Proceeds received on account of payments from insurance policies, except those proceeds received for the loss of business revenue.

(w) Damages received as a result of litigation in excess of amounts that, if received without litigation, would not have been included in the gross receipts of the business entity pursuant to this section.

(x) Bad debts expensed for the purposes of federal income taxation.

(y) Returns and refunds to customers.

(z) Amounts realized from the sale of an account receivable to the extent the receipts from the underlying transaction were included in the gross receipts of the business entity.

(aa) If the business entity owns an interest in a passive entity, the business entity’s share of the net income of the passive entity, but only to the extent the net income of the passive entity was generated by the gross revenue of another business entity.

2. As used in this section:

(a) “Children’s Health Insurance Program” means the program established pursuant to 42 U.S.C. §§ 1397aa to 1397jj, inclusive, to provide health insurance for uninsured children from low-income families in this State.

(b) “Client company” has the meaning ascribed to it in NRS 611.400.

(1) A medical facility as defined in NRS 449.0151; and

(2) A pharmacy as defined in NRS 639.012.

(d) “Health care provider” means a business that receives any payments listed in paragraph (i) of subsection 1 as a provider of health care services, including, without limitation, mental health care services.

(e) “Medicaid” means the program established pursuant to Title XIX of the Social Security Act, 42 U.S.C. §§ 1396 et seq., to provide assistance for part or all of the cost of medical care rendered on behalf of indigent persons.

(f) “Medicare” means the program of health insurance for aged persons and persons with disabilities established pursuant to Title XVIII of the Social Security Act, 42 U.S.C. §§ 1395 et seq.

(g) “Professional employer organization” has the meaning ascribed to it in NRS 611.400.

(Added to NRS by 2015, 2885; A 2021, 1932)

NRS 363C.220 Situsing.

1. In computing the commerce tax owed by a business entity, the gross revenue of the business entity, as adjusted pursuant to NRS 363C.210, must be sitused to this State in accordance with the following rules:

(a) Gross rents and royalties from real property are sitused to this State if the real property is located in this State.

(b) Gross revenue from the sale of real property is sitused to this State if the real property is located in this State.

(c) Gross rents and royalties from tangible personal property are sitused to this State to the extent the tangible personal property is located or used in this State.

(d) Gross revenue from the sale of tangible personal property is sitused to this State if the property is delivered or shipped to a buyer in this State, regardless of the F.O.B. point or any other condition of sale.

(e) Gross revenue from the sale of transportation services is sitused to this State if both the origin and the destination point of the transportation are located in this State.

(f) Gross revenue from the sale of any services not otherwise described in this section is sitused to this State in the proportion that the purchaser’s benefit in this State, with respect to what was purchased, bears to the purchaser’s benefit everywhere with respect to what was purchased. For the purposes of this paragraph, the physical location at which the purchaser of a service ultimately uses or receives the benefit of the service that was purchased is paramount in determining the proportion of the benefit in this State to the benefit everywhere. If the records of a business entity do not allow the taxpayer to determine that location, the business entity may use an alternative method to situs gross revenue pursuant to this section if the alternative method is reasonable, is consistently and uniformly applied and is supported by the taxpayer’s records as those records exist when the service is provided or within a reasonable period of time thereafter.

(g) Gross revenue not otherwise described in this section is sitused to this State if the gross receipts are from business conducted in this State. For the purposes of this paragraph, the physical location of the purchaser is paramount in determining if business is done in this State. If the records of a business entity do not allow the business entity to determine the location of the purchaser, the gross revenue must not be considered to be from business conducted in this State.

2. If the application of the provisions of subsection 1 does not fairly represent the extent of the business conducted in this State by a business entity, the Department may authorize the business entity to the use of an alternative method of situsing gross revenue to this State.

(Added to NRS by 2015, 2888)

CALCULATION OF TAX

NRS 363C.300 Rate of tax based on business category in which business entity is primarily engaged. Except as otherwise provided in this section, the commerce tax required to be paid by a business entity engaging in a business in this State is equal to the amount obtained by subtracting $4,000,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by the rate set forth in NRS 363C.310 to 363C.550, inclusive, for the business category in which the business entity is primarily engaged. If the business entity cannot be categorized in a business category set forth in NRS 363C.310 to 363C.550, inclusive, the commerce tax required to be paid by that business entity is equal to the amount obtained by subtracting $4,000,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by the rate set forth in NRS 363C.560.

(Added to NRS by 2015, 2889)

NRS 363C.310 Agriculture, forestry, fishing and hunting (NAICS 11).

1. The agriculture, forestry, fishing and hunting business category (NAICS 11) includes all business entities primarily engaged in agricultural production or agricultural support activities, or both, including, without limitation, growing crops, raising animals, harvesting timber and harvesting fish and other animals from a farm, ranch or their natural habitats.

2. Examples of business entities in this category include, without limitation, farms, ranches, dairies, greenhouses, nurseries, orchards and hatcheries.

3. This category does not include business entities primarily engaged in agricultural research or administering programs for regulating and conserving land, minerals, wildlife or forest use.

4. The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting $4,000,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.063 percent.

(Added to NRS by 2015, 2889)

NRS 363C.320 Mining, quarrying and oil and gas extraction (NAICS 21).

1. The mining, quarrying and oil and gas extraction business category (NAICS 21) includes all business entities primarily engaged in mining operations and mining support activities, including, without limitation, extracting:

(a) Naturally occurring mineral solids, such as coal and ores;

(b) Liquid minerals, such as crude petroleum; and

2. Examples of business entities in this category include, without limitation:

(a) Business entities operating mines, quarries or oil and gas wells on their own account or for others on a contract or fee basis.

(b) Mining support activities, including business entities that perform exploration or other mining services, or both, on a contract or fee basis, except geophysical surveying, mine site preparation and the construction of oil and gas pipelines.

3. As used in subsections 1 and 2, the term “mining” includes quarrying, well operations and beneficiating, including, without limitation, crushing, screening, washing, flotation and other preparation customarily performed at a mine site or as a part of mining activity.

(Added to NRS by 2015, 2889)

NRS 363C.330 Utilities and telecommunications (NAICS 22 and 517).

1. The utilities and telecommunications business category (NAICS 22 and 517, respectively) includes:

(a) All business entities primarily engaged in providing utility services, including, without limitation, electric power, natural gas, steam supply, water supply and sewage removal; and

(b) All business entities primarily engaged in providing telecommunications and the services related to that activity, including, without limitation, telephony, cable and satellite distribution services, Internet access and telecommunications reselling services.

2. This category does not include business entities primarily engaged in waste management and remediation services that are described in NRS 363C.490.

3. The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting $4,000,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.136 percent.

(Added to NRS by 2015, 2890)

NRS 363C.340 Construction (NAICS 23).

1. The construction business category (NAICS 23) includes all business entities primarily engaged in the construction of buildings or engineering projects, such as highways and utility systems. Business entities engaged in the preparation of sites for new construction and business entities primarily engaged in subdividing land for sale as building sites also are included in this category.

2. Examples of business entities in this category include, without limitation, general contractors, design-builders, construction managers, turnkey contractors, joint-venture contractors, specialty trade contractors, for-sale builders, speculative builders and merchant builders.

(Added to NRS by 2015, 2890)

NRS 363C.350 Manufacturing (NAICS 31, 32 and 33).

1. The manufacturing business category (NAICS 31, 32 and 33) includes all business entities primarily engaged in the mechanical, physical or chemical transformation of materials, substances or components into new products.

2. Examples of business entities in this category include, without limitation, milk bottling and pasteurizing, water bottling and processing, fresh fish packaging, apparel jobbing, contracting on materials owned by others, printing and related activities, ready-mixed concrete production, leather converting, grinding of lenses to prescription, wood preserving, electroplating, plating, metal heat, treating and polishing for the trade, lapidary work for the trade, fabricating signs and advertising displays, rebuilding or remanufacturing machinery, ship repair and renovation, machine shops and tire retreading.

(Added to NRS by 2015, 2890)

NRS 363C.360 Wholesale trade (NAICS 42).

1. The wholesale trade business category (NAICS 42) includes all business entities primarily engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

2. The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting $4,000,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.101 percent.

(Added to NRS by 2015, 2890)

NRS 363C.370 Retail trade (NAICS 44 and 45).

1. The retail trade business category (NAICS 44 and 45) includes all businesses primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

(Added to NRS by 2015, 2891)

NRS 363C.380 Air transportation (NAICS 481).

1. The air transportation business category (NAICS 481) includes all business entities primarily engaged in providing air transportation of passengers or cargo, or both, using aircraft, such as an airplane and helicopter.

(Added to NRS by 2015, 2891)

NRS 363C.390 Rail transportation (NAICS 482).

1. The rail transportation business category (NAICS 482) includes all business entities primarily engaged in providing rail transportation of passengers or cargo, or both, using railroad rolling stock.

(Added to NRS by 2015, 2891)

NRS 363C.400 Other transportation (NAICS 483, 485, 486, 487, 488, 491 and 492).

1. The other transportation business category (NAICS 483, 485, 486, 487, 488, 491 and 492) includes all business entities primarily engaged in:

(a) Water transportation, including, without limitation, the transportation of passengers and cargo using watercraft;

(b) Transit and ground passenger transportation, including, without limitation, charter buses, school buses, interurban bus transportation, taxis and limousine services, street railroads, commuter rail and rapid transit;

(c) Pipeline transportation, including, without limitation, using transmission pipelines to transport products, such as crude oil, natural gas, refined petroleum products and slurry;

(d) Scenic and sightseeing transportation, including, without limitation, on land or the water, or in the air;

(e) Support activities for transportation, including, without limitation, air traffic control services, marine cargo handling, motor vehicle towing, railroad switching and terminals, and ship repair and maintenance not done in a shipyard, such as floating drydock services in a harbor;

(f) Postal services, including, without limitation, the activities of the United States Postal Service and its subcontractors operating under a universal service obligation to provide mail services, deliver letters and small parcels, and rural post offices on contract to the United States Postal Service; and

(g) Courier and messenger services, including, without limitation, the provision of intercity, local or international delivery of parcels and documents without operating under a universal service obligation.

(Added to NRS by 2015, 2891)

NRS 363C.410 Truck transportation (NAICS 484).

1. The truck transportation business category (NAICS 484) includes all business entities primarily engaged in providing over-the-road transportation of cargo using motor vehicles, such as a truck and tractor trailer.

(Added to NRS by 2015, 2891)

NRS 363C.420 Warehousing and storage (NAICS 493).

1. The warehousing and storage business category (NAICS 493) includes all business entities primarily engaged in operating warehousing and storage facilities for general merchandise, refrigerated goods and other warehouse products.

(Added to NRS by 2015, 2892)

NRS 363C.430 Publishing, software and data processing (NAICS 511, 512, 515 and 518).

1. The publishing, software and data processing business category (NAICS 511, 512, 515 and 518) includes all business entities primarily engaged in:

(a) Publishing, except on the Internet, including, without limitation, the publishing of newspapers, magazines, other periodicals and books, as well as directory and mailing list and software publishing;

(b) Motion picture and sound recording, including, without limitation, the production and distribution of motion pictures and sound recordings;

(c) Broadcasting, except on the Internet, including, without limitation, creating content or acquiring the right to distribute content and subsequently broadcast the content; and

(d) Data processing, hosting and related services, including, without limitation, the provision of infrastructure for hosting and data processing services.

(Added to NRS by 2015, 2892)

NRS 363C.440 Finance and insurance (NAICS 52).

1. The finance and insurance business category (NAICS 52) includes all business entities primarily engaged in financial transactions or in facilitating financial transactions.

(Added to NRS by 2015, 2892)

NRS 363C.450 Real estate and rental and leasing (NAICS 53).

1. The real estate and rental and leasing business category (NAICS 53) includes all business entities primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets, providing related services, managing real estate for others, selling, renting or buying real estate for others, and appraising real estate.

(Added to NRS by 2015, 2892)

NRS 363C.460 Professional, scientific and technical services (NAICS 54).

1. The professional, scientific and technical services business category (NAICS 54) includes all business entities primarily engaged in performing professional, scientific and technical activities for others.

(Added to NRS by 2015, 2893)

NRS 363C.470 Management of companies and enterprises (NAICS 55).

1. The management of companies and enterprises business category (NAICS 55) includes all business entities primarily engaged in:

(a) Holding the securities of, or other equity interests in, companies and enterprises for the purpose of owning a controlling interest or influencing management decisions; or

(b) Administering, overseeing and managing establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision-making role of the company or enterprise.

(Added to NRS by 2015, 2893)

NRS 363C.480 Administrative and support services (NAICS 561).

1. The administrative and support services business category (NAICS 561) includes all business entities primarily engaged in activities that support the day-to-day operations of other organizations.

(Added to NRS by 2015, 2893)

NRS 363C.490 Waste management and remediation services (NAICS 562).

1. The waste management and remediation services business category (NAICS 562) includes all business entities primarily engaged in the collection, treatment and disposal of waste materials.

(Added to NRS by 2015, 2893)

NRS 363C.500 Educational services (NAICS 61).

1. The educational services business category (NAICS 61) includes all businesses primarily engaged in providing instruction and training in a wide variety of subjects.

(Added to NRS by 2015, 2893)

NRS 363C.510 Health care and social assistance (NAICS 62).

1. The health care and social assistance business category (NAICS 62) includes all business entities primarily engaged in providing health care and social assistance for natural persons.

(Added to NRS by 2015, 2893)

NRS 363C.520 Arts, entertainment and recreation (NAICS 71).

1. The arts, entertainment and recreation business category (NAICS 71) includes all business entities primarily engaged in operating facilities or providing services to meet varied cultural, entertainment and recreational interests of their patrons.

(Added to NRS by 2015, 2894)

NRS 363C.530 Accommodation (NAICS 721).

1. The accommodation business category (NAICS 721) includes all business entities primarily engaged in providing lodging or short-term accommodations for travelers, vacationers and others.

(Added to NRS by 2015, 2894)

NRS 363C.540 Food services and drinking places (NAICS 722).

1. The food services and drinking places business category (NAICS 722) includes all business entities primarily engaged in preparing meals, snacks and beverages to customer order for immediate on-premises and off-premises consumption.

(Added to NRS by 2015, 2894)

NRS 363C.550 Other services (NAICS 81).

1. The other services business category (NAICS 81) includes all business entities primarily engaged in providing services not included in any of the business categories described in NRS 363C.310 to 363C.540, inclusive. Business entities in this category are primarily engaged in activities such as repairing equipment and machinery, promoting or administering religious activities, grantmaking, advocacy, and providing dry cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services and dating services.

(Added to NRS by 2015, 2894)

NRS 363C.560 Unclassified business entities.

1. The unclassified business category includes any business entity not included in any of the business categories established by NRS 363C.310 to 363C.550, inclusive.

(Added to NRS by 2015, 2894)

OVERPAYMENTS AND REFUNDS

NRS 363C.600 Certification of excess amount collected; credit and refund. If the Department determines that any tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and certify to the State Board of Examiners the amount collected in excess of the amount legally due and the person from whom it was collected or by whom it was paid. If approved by the State Board of Examiners, the excess amount collected or paid must, after being credited against any amount then due from the person in accordance with NRS 360.236, be refunded to the person or his or her successors in interest.

(Added to NRS by 2015, 2895)

NRS 363C.610 Limitations on claims for refund or credit; form and contents of claim; failure to file claim constitutes waiver; service of notice of rejection of claim.

1. Except as otherwise provided in NRS 360.235 and 360.395:

(a) No refund may be allowed unless a claim for it is filed with the Department within 3 years after the last day of the month following the last month of the taxable year for which the overpayment was made.

(b) No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the Department within that period.

2. Each claim must be in writing and must state the specific grounds upon which the claim is founded.

3. Failure to file a claim within the time prescribed in this chapter constitutes a waiver of any demand against the State on account of overpayment.

4. Within 30 days after rejecting any claim in whole or in part, the Department shall serve notice of its action on the claimant in the manner prescribed for service of notice of a deficiency determination.

(Added to NRS by 2015, 2895)

NRS 363C.620 Interest on overpayments; disallowance of interest.

1. Except as otherwise provided in this section and NRS 360.320 or any other specific statute, interest must be paid upon any overpayment of any amount of the commerce tax at the rate set forth in, and in accordance with the provisions of, NRS 360.2937.

2. If the Department determines that any overpayment has been made intentionally or by reason of carelessness, the Department shall not allow any interest on the overpayment.

(Added to NRS by 2015, 2895)

NRS 363C.630 Injunction or other process to prevent collection of tax prohibited; filing of claim is condition precedent to maintaining action for refund.

1. No injunction, writ of mandate or other legal or equitable process may issue in any suit, action or proceeding in any court against this State or against any officer of this State to prevent or enjoin the collection under this chapter of the commerce tax or any amount of tax, penalty or interest required to be collected.

2. No suit or proceeding may be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been filed.

(Added to NRS by 2015, 2895)

NRS 363C.640 Action for refund: Period for commencement; venue; waiver.

1. Within 90 days after a final decision upon a claim filed pursuant to this chapter is rendered by the Nevada Tax Commission, the claimant may bring an action against the Department on the grounds set forth in the claim in a court of competent jurisdiction in Carson City, the county of this State where the claimant resides or maintains his or her principal place of business or a county in which any relevant proceedings were conducted by the Department, for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

2. Failure to bring an action within the time specified constitutes a waiver of any demand against the State on account of alleged overpayments.

(Added to NRS by 2015, 2895)

NRS 363C.650 Rights of claimant upon failure of Department to mail notice of action on claim; allocation of judgment for claimant.

1. If the Department fails to mail notice of action on a claim within 6 months after the claim is filed, the claimant may consider the claim disallowed and file an appeal with the Nevada Tax Commission within 30 days after the last day of the 6-month period. If the claimant is aggrieved by the decision of the Nevada Tax Commission rendered on appeal, the claimant may, within 90 days after the decision is rendered, bring an action against the Department on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

2. If judgment is rendered for the plaintiff, the amount of the judgment must first be credited toward any tax due from the plaintiff.

3. The balance of the judgment must be refunded to the plaintiff.

(Added to NRS by 2015, 2896)

NRS 363C.660 Allowance of interest in judgment for amount illegally collected. In any judgment, interest must be allowed at the rate of 3 percent per annum upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment, or to a date preceding the date of the refund warrant by not more than 30 days. The date must be determined by the Department.

(Added to NRS by 2015, 2896)

NRS 363C.670 Standing to recover. A judgment may not be rendered in favor of the plaintiff in any action brought against the Department to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.

(Added to NRS by 2015, 2896)

NRS 363C.680 Action for recovery of erroneous refund: Jurisdiction; venue; prosecution.

1. The Department may recover a refund or any part thereof which is erroneously made and any credit or part thereof which is erroneously allowed in an action brought in a court of competent jurisdiction in Carson City or Clark County in the name of the State of Nevada.

2. The action must be tried in Carson City or Clark County unless the court, with the consent of the Attorney General, orders a change of place of trial.

3. The Attorney General shall prosecute the action, and the provisions of the Nevada Revised Statutes, the Nevada Rules of Civil Procedure and the Nevada Rules of Appellate Procedure relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceedings.

(Added to NRS by 2015, 2896)

NRS 363C.690 Cancellation of illegal determination.

1. If any amount in excess of $25 has been illegally determined, either by the Department or by the person filing the return, the Department shall certify that fact to the State Board of Examiners, and the latter shall authorize the cancellation of the amount upon the records of the Department.

2. If an amount not exceeding $25 has been illegally determined, either by the Department or by the person filing the return, the Department, without certifying that fact to the State Board of Examiners, shall authorize the cancellation of the amount upon the records of the Department.

(Added to NRS by 2015, 2896)

MISCELLANEOUS PROVISIONS

NRS 363C.700 Remedies of State are cumulative. The remedies of the State provided for in this chapter are cumulative, and no action taken by the Department or the Attorney General constitutes an election by the State to pursue any remedy to the exclusion of any other remedy for which provision is made in this chapter.

(Added to NRS by 2015, 2896)