An Interesting Look At Nevada And Online Sales Tax

Monika Miles

If you’ve been following along with our series about various states’ approach to online sales tax, you can see how multi-state tax issues can get confusing for business owners quickly.

At this point we’ve taken a look at the how Colorado, Alabama, Washington, Texas and Arizona establish nexus, which determines eligibility for state sales tax; today we review Nevada.

A Summary of Nevada’s Online Sales Tax Legislation

Nevada is one of the states that enacted the “Amazon Law” back in 2015. As explains, this means that a couple of years ago the state extended nexus to include:

Retailers that have an agreement with a business or seller located in Nevada to pay for customer referrals obtained via a link on the Nevada seller’s website (a click-through arrangement)
The out-of-state retailer’s gross receipts from these directed sales to Nevada customers exceeds $10,000 during the preceding four calendar quarters

Back in July we explained this legislation in a little more detail, noting it as one of a few changes taking its toll on businesses.

Nevada’s Potential Upcoming Sales Tax Legislation

In early May, the Nevada Legislature introduced Senate Joint Resolution 5, which “Urges Congress to enact the Marketplace Fairness Act, which would allow states to collect sales taxes from online vendors that don’t have a presence in the state.” The resolution passed in the Senate with a 20-1 vote.

Ramifications of Nevada’s Online Sales Tax Legislation

If Joint Resolution 5 passes in the House, it will require even more retailers to be responsible for collecting and remitting sales tax from online purchases. It could be a helpful source of income for the state; however, it is yet another example of how diligent business owners need to be in staying aware of state laws.

Want to know more about the online sales tax debate and how it could be affecting your business? Contact us today! We’re happy to answer your questions about recent legislation, nexus, credits and incentives, and any other multi-state tax issues you need to know about. Stay tuned for the next post in our series, too!

Monika founded Miles Consulting Group which focuses on multi-state tax consulting, helping clients navigate state tax issues such as sales tax and income tax in interstate commerce, including e-commerce.

Prior to forming the firm, Monika worked for 12 years combined in Big 4 Public Accounting and private industry. Monika has provided such services as federal and state income/franchise tax compliance and consulting, sales/use tax consulting, audit support, and credits and incentives reviews. She has served clients in a variety of industries including manufacturing, technology, telecommunications, construction, utility, retail and financial institutions.

Monika graduated from the University of Texas at El Paso (UTEP) with a BBA in Accounting/Finance and has a Masters in Taxation from San Jose State University.

Subscribe to TaxConnections Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.