First spherical of Nevada Modified Enterprise Tax refunds issued

Nevada Supreme Court building Monday March 4, 2019. Photo by David Calvert / The Nevada Independent

In accordance with a May 13 ruling by the Nevada Supreme Court finding that Senate Bill 551, passed during the 2019 legislative session, was unconstitutional, the Nevada Department of Taxes has issued the first round of refund checks.

A total of $ 30.6 million, including interest, was returned to 22,621 taxpayers who paid the tax at a rate higher than the legal requirements, according to a state news release dated Aug. 17.

Refunds apply for quarters September 30, 2019 through March 31, 2021 for general corporations, financial institutions, and mining.

The next round of repayments is planned for September.

According to media reports, the litigation is over Senate Act 551 came about when the Democratic-led Senate passed a bill in its 2019 session that raised a higher rate for the modified trade tax (wage tax) that was otherwise supposed to return to a lower level. The proposal didn’t get a two-thirds majority when all Republicans opposed it, but the Democrats then changed the bill by removing the two-thirds requirements and passed it.

With respect to refunds, Nevada law under Nevada law requires the tax department to verify that a credit is valid before the amount can be refunded; Therefore, the taxpayer’s account must be up to date before a refund can be issued.

Taxpayers who have late tax returns, including sales / use tax, amended business tax, business tax, or excise tax, are encouraged to file the tax return (s) via US Mail or use Nevada Online Tax here.

All outstanding tax returns must be submitted before a refund can be issued.