Sales Tax Updates in Nevada

Tax Professionals' Resource
November 14, 2012 — 1,208 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

Sales Tax Updates in Nevada

Below are the tax updates in sales and use tax for the state of Nevada as of October 2012.

When tax is included in the sales price, this must be clearly communicated to the customer. This can be done by simply stating "price includes sales tax" either on the receipt or on a sign.

Use tax is required to be paid on all personal property when sales tax has not been paid. The Nevada Department of Taxation has expressed concern that too many businesses are simply skipping paying this tax because they do not understand it. The state offers information and classes through their website at http://tax.state.nv.us.

If a business is audited by the department of taxation, at least four years of sales and use tax records will be required for businesses registered with the state and eight years for those not registered. A penalty of 10% on payment shortfalls can be imposed if these guidelines are not met.

Event and party planners must charge sales tax on all portions of the transaction necessary to complete the event. Sales tax does not need to be charges on gratuities, music or entertainment fees(not including equipment rental), and security fees. If an event or party planner does not itemize invoices, then sales tax must be charged on the entire invoice.

Food intended for immediate consumption is taxable, unlike grocery items. This can include items heated, including coffee, or prepared items with two or more ingredients. Further, any items offered with utensils for consumption are considered part of this rule and should have sales tax applied.

Florists, unlike other businesses, must charge sales tax on all transactions, not just those delivered within the state. This applies to any order the florist taxes directly. Florists are not required to charge sales tax on orders received from another florist to fill an order as part of a network if they are not the one receiving payment.

Non-gaming, live entertainment facilities must pay the Live Entertainment Tax if their occupancy is between 200 and 7500 people. Live Entertainment Tax (LET) is 10% of the admission, food, drinks, and merchandise sales. This tax is only applicable to sales occurring when a live entertainment is in progress in the facility.

Contractors must be registered with the state department of taxation, have a tax permit, and hold a resale certificate to avoid charging sales tax on materials.

 

Tax Professionals' Resource