No Taxes

The outstanding tax climate in Nevada is one of the best reasons to do business in the state. This tax structure also clearly distinguishes Nevada as offering a high pro-business environment very few states can match. These are some examples of the favorable tax structure:

No corporate income tax
No personal income tax
No franchise tax on income
No inheritance or gift tax
No admissions tax
No unitary tax
No estate tax*
Competitive sales and property tax rates
Minimal business tax

*A small assessed “pick-up tax” that cannot exceed the maximum allowable credit against the federal estate return.

Under Federal law, a credit is allowed each state against the Federal Estate Tax, up to a certain amount for each estate. Equal to the maximum amount of the credit against the Federal Estate Tax for the state death taxes allowed by 26 U.S.C. Section 2011. This does not increase the total of the tax due.

Business Tax Abatement
A new business may qualify for a partial exemption if it will have 25 or more full-time employees with an average hourly wage of at least 100% of the average statewide hourly wage and a capital investment of $250,000 or more in a county or city whose population is less than 50,000; or, in a county or city whose population is 50,000 or more, a business will have 75 or more full-time employees with an average hourly wage of at least 100% of the average statewide hourly wage and makes a $1 million or more capital investment.

An existing business may qualify for a partial exemption if it meets at least two of the following requirements:

1. Increase number of employees by 10% more than it employed in the immediately preceding fiscal year or by six employees, whichever is greater.

2. Will expand by making a capital investment in this state in an amount equal to at least 20% of the value of the tangible property possessed by the business in the immediately preceding fiscal year.

3. The average hourly wage that will be paid by the existing business to its new employees in this state is at least 100% of the average statewide hourly wage.

Businesses that are consistent with the Commission on Economic Development's plan for economic diversification and development and meet the above requirements may qualify for a partial exemption of 80% in the first year of operation, 60% the second year, 40% the third year, and 20% the fourth year. For additional information, contact the Commission on Economic Development, 108 E. Proctor, Carson City, Nevada 89710 or telephone in-state 775-687-4325, out of state 1-800-336-1600.

http://tax.state.nv.us

Personal Property Tax Abatement
Qualifying companies can get up to 50% tax exemption on Personal Property Taxes.

Property Tax Exemptions
Qualifying recycling companies can get up to 75% tax exemption on Real and Personal Property Taxes. The following are exempt from property tax: All personal property stored, assembled or processed for interstate transit. All raw materials and supplies utilized in the manufacturing process. Inventories held for sale within Nevada, and all real and personal property that qualifies and is used for the purpose of air and/or water pollution control.

Property Tax Rates
Both real and personal property is assessed at 35% of appraised value. The state limits the rate of property tax to a total of $3.64 for each $100 of assessed valuation. Nevada has no classification system distinguishing different types of property. Individual assessments will vary.

Sales and Use Tax Abatement
There is Partial Sales and Use Tax abatement on machinery and equipment purchases. Lyon County Sales & Use Tax is 6.5%. All but 2% can be abated, which is mandated for the state.

Sales and Use Tax Deferral
Qualifying companies can defer 5.25% of the Sales and Use Tax when purchasing specific types of capital equipment in excess of $100,000. Taxes can be deferred interest-free for five years.

Sales Tax Exemptions
Certain aircraft engaged in air transportation are exempted from taxes imposed on gross receipts from the sale of aircraft and major components of aircraft.

(Source: http://www.edawn.org/doingbusiness/incentives.cfm)

Business Fees and Taxes and Business Licenses
For more detailed information regarding state and local taxes, business fees, essential registration forms, and specific accounts of all the steps that lead up to creating a successful future business in Nevada, please visit the State of Nevada Department of Taxation at http://tax.state.nv.us/taxnew/taxmap.htm.