1. STATE OF NEVADA DEPARTMENT OF TAXATION

2. MODIFIED BUSINESS TAX

3. Financial Institutions – NRS 363A
MODIFIED BUSINESS TAX
Business entities are subject to Modified Business Tax in one of two categories:
General – NRS 363B
Financial Institutions – NRS 363A

4. MODIFIED BUSINESS TAX Who is required to be registered? Indian Tribe
Any business who is required to pay a contribution pursuant to NRS
except………
Indian Tribe
Nonprofit organization under 26 U.S.C. 501(c)
Political subdivision
NRS 363A.030
NRS 363B.030

5. MODIFIED BUSINESS TAX
What to report?
Wages taken from Employment Security Department (ESD) form NUCS 4072, line 3
What to deduct?
Deductions for employer-paid health insurance allowed
NRS 363A.130
NRS 363B.110
NRS 363A.135
NRS 363B.115

6. MODIFIED BUSINESS TAX Employer-paid insurance deduction includes:
Self-insured employer: all amounts paid for claims, premiums, stop-loss, if the program is a qualified employee welfare benefit plan
2. Premiums for a policy of health insurance for employees
3. Payments to a Taft-Hartley trust
NRS 363A.135
NRS 363B.115

7. MODIFIED BUSINESS TAX
Employer-paid insurance deduction DOES NOT include:
Amounts paid by the employee
Workmen’s compensation insurance
Life insurance
Disability
NRS 363A.135
NRS 363B.115

8. MODIFIED BUSINESS TAX Categories and Rates General…………………
Taxable wages up to $62,500 in a calendar quarter 0.5%
Taxable wages over $62,500 in a calendar quarter 1.17%
Effective 7/1/2009, expires 6/30/2011
Financial………………… %
NRS 363B.110
NRS 363A.050 and
NRS 363A.130

9. MODIFIED BUSINESS TAX Title Rate
Same return, only title & rate change for the two MBT taxes
Title
Rate

10. How is my business classified?
MODIFIED BUSINESS TAX
NAICS code
(North American Industry Classification System)
Your business is classified on its Federal Income Tax Return by this code

11. A: The wages you have reported to Employment Security Department
MODIFIED BUSINESS TAX
Wages
What to report?
A: The wages you have reported to
Employment Security Department

12. Health Benefit Deduction
MODIFIED BUSINESS TAX
What to include?
Any amount authorized by NRS 363B.115, paid by the employer for health insurance or a health benefit plan for its employees in the calendar quarter for which the tax is paid. The deduction may include:
Amounts paid by a self-insured employer in a qualified employee welfare benefit plan for claims, direct administrative services, premiums or aggregate stop-loss insurance coverage
Premiums for a policy of health insurance for employees
Amounts paid by an employer to a Taft-Hartley trust under 29 U.S.C. 186(c)(5)

13. Health Benefit Deduction
MODIFIED BUSINESS TAX
Health Benefit Deduction
What NOT to include?
Amounts paid for industrial injury or occupational disease insurance
Payments made by the employee for health care/health insurance
Amounts deducted from the wages of employees for such health care or insurance
Life insurance
NRS 363B.115(2)

14. Returns, Penalties, Interest
MODIFIED BUSINESS TAX

15. MODIFIED BUSINESS TAX
Returns are due by the last day of the month following the quarter in which the tax was due (NRS 363B.110, NRS 363A.130)
(example: quarter ended September 30, return is due by October 31)
Up to 10% penalty if late (NRS )
Interest calculated at 1% per month on unpaid balance (NRS )

16. Written Response
Most tax issues can be addressed by the Department of Taxation. Please be advised that any responses to inquires made to the Department are only binding if put in writing, such as Nevada Revised Statutes, Administrative Code, Nevada Tax Notes, or in written correspondence. 16

17. DEPARTMENT OF TAXATION Contact Information
Our offices are open Monday-Friday 8:00 AM – 5:00 PM
Carson City:
1550 College Parkway
Suite 115
Carson City, NV
Southern Nevada:
(702)
Grant Sawyer Office Building
555 E. Washington Avenue
Suite 1300
Las Vegas, NV 89101 OR
2550 Paseo Verde Parkway
Suite 180
Henderson, NV 89074
Reno:
4600 Kietzke Lane
Building L, Suite 235
Reno, NV 89502
Elko:

18. MORE QUESTIONS? Contact your Nearest Office:
(Southern Nevada)
(Carson City)
(Reno)
(Elko)
Department of Taxation website:
Taxpayer “What You Need to Know” questions and answers
Nevada Tax Notes
Copies of blank returns