Modified Business Tax
MBT or Modified Business Tax is a type of Nevada commerce tax that is applicable to two types of categories and they are:
General business is considered as any employer who will be required to pay a contribution to the Department of Employee Training and Rehabilitation/Employment Security Division pursuant to NRS 612.535, in any calendar quarter. Businesses excluded in this category include Indian tribes, nonprofit organizations, financial institutions, and political subdivisions. The Nevada business tax as defined for the general business category is pursuant to NV Rev Stat § 363B (2017).
The tax rate is 1.475% on wages. This is after the deduction of any health benefits paid by the business or employer. One of the salient aspects is that the first $50,000 of gross wages will not taxable.
The Nevada business tax returns are normally due by the last day of the month following the calendar quarter in which the limited-liability company is required to pay the Unemployment Compensation pursuant to NRS 363B.110. It is important to note that there is a late filing penalty of 10% pursuant to NRS 360.417 and the interest will be calculated at .75% per month on the entities unpaid tax balance.
Financial Institutions and Mining
A Financial institution from the perspective of the MBT category is an entity that is required to pay a contribution pursuant to NRS 612.535 for any calendar quarter towards any type of business activity of the said institution. Mining under Modified Business tax category is pursuant to NV Rev Stat § 363A.030 (2017) and is an individual subjected to the Nevada business tax on the net proceeds of minerals in accordance with the provisions of NRS 362.100 to 362.240. Businesses excluded in this category include Indian tribes, nonprofit organizations, credit unions pursuant to NRS 678, and political subdivisions.
The Nevada business tax rate for financial institutions is 2% on the gross wages including financial institutions and net proceeds of minerals entities. This is after the deduction of any employee health care benefits that have been paid by the business or employer.
It is important to note that there is a late filing penalty of 10% pursuant to NRS 363A.130 and the interest will be calculated at .75% per month on the entities unpaid tax balance.