Section 363C.240 - Change of NAICS code category and rate used to calculate amount of tax1. For the purpose of determining the rate used to calculate the amount of commerce tax required to be paid by a business entity pursuant to sections 24 to 49, inclusive, of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2889 (NRS 363C.310 to 363C.560, inclusive), the business category of the business entity is: (a) The NAICS code designated by the business entity pursuant to subsection 2; or(b) If the NAICS code designated by the business entity is changed pursuant to subsection 3 or 4, the NAICS code of the business entity as determined pursuant to subsection 3 or 4.2. In the initial Nevada Commerce Tax Return filed with the Department pursuant to subsection 2 of section 20 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2884 (NRS 363C.200):(a) Except as otherwise provided in paragraph (b), the business entity must designate: (1) The NAICS code of the business in which the business entity is engaged; and(2) The tax rate set forth in sections 24 to 48, inclusive, of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2889 (NRS 363C.310 to 363C.550, inclusive), for the NAICS code designated by the business entity pursuant to subparagraph (1) or, if the tax rate for that NAICS code is not set forth in those sections, the tax rate for the unclassified business category set forth in section 49 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2894 (NRS 363C.560).(b) If the business entity is engaging in a business categorized in more than one NAICS code, the business entity must designate:(1) The NAICS code of the business with the greatest percentage of the business entity's Nevada gross revenue for the taxable year for which the initial return is filed or, at the election of the business entity, the NAICS code of the business with the greatest average percentage of the business entity's Nevada gross revenue for the 3 fiscal years immediately preceding the filing of the initial return; and(2) The tax rate set forth in sections 24 to 48, inclusive, of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2889 (NRS 363C.310 to 363C.550, inclusive), for the NAICS code designated by the business entity pursuant to subparagraph (1) or, if the tax rate for that NAICS code is not set forth in those sections, the tax rate for the unclassified business category set forth in section 49 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2894 (NRS 363C.560).3. A business entity that wishes to change the NAICS code designated for the business entity pursuant to subsection 1 must submit to the Department, on or before the date on which the Nevada Commerce Tax Return for the taxable year, a written request to change its designated NAICS code on a form prescribed by the Department. A request submitted pursuant to this subsection must: (a) State the current NAICS code designated for the business entity, the proposed NAICS code for the business entity, the taxable year to which the proposed NAICS code will apply and the reason for the requested change; and(b) Be accompanied by documentation indicating that the current NAICS code designated for the business entity is erroneous or inaccurate.4. Within 60 days after receipt of a request and the information required by subsection 3, the Department shall determine and notify the business entity of:(a) The NAICS code of the business entity;(b) The tax rate for the NAICS code of the business entity as set forth in sections 24 to 49, inclusive, of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2889 (NRS 363C.310 to 363C.560, inclusive); and(c) The period to which the NAICS code and tax rate will apply. If the Department does not make such a determination within the period prescribed by this subsection, the request is deemed to be approved by the Department.
5. If, based on fraudulent or incorrect information, the Department approves a change to the NAICS code of a business entity, the Department is not estopped from assessing a deficiency in the payment of the commerce tax and imposing the applicable penalty and interest for such deficiency.Nev. Admin. Code § 363C.240
Added to NAC by Tax Comm'n by R123-15, eff. 6/28/2016NRS 360.090 and sections 16 and 20 of Senate Bill No. 483, chapter 487, Statutes of Nevada 2015, at page 2884 (NRS 363C.100 and 363C.200)