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- 83rd Session (2025)
Assembly Bill No. 594–Committee on Ways and Means
CHAPTER..........
AN ACT relating to taxation; authorizing the Department of
Taxation to deliver by electronic means notices, decisions
and other written communications under certain
circumstances; authorizing the Board of Economic
Development to deny an application for an abatement , partial
abatement or transferable tax credits under certain
circumstances; revising the manner in which the Department
determines the industry in which a business is engaged for
the purposes of the commerce tax; rev ising the due date for
the payment of sales and use taxes; authorizing businesses
that recycle certain materials or produce certain fuels from
recycled materials to apply to the Office of Economic
Development for a partial abatement of certain taxes; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Section 1.3 of this bill authorizes the Department of Taxation to deliver by
electronic means any notice, decision or other written communication that the
Department is required to provide to a person under existing law, unless: (1) the
person has opted out of receiv ing such notices, decisions or written
communications by electronic means; or (2) another provision of law specifies the
means by which the Department is required to send such a notice, decision or
written communication. Under section 1.3, the electronic m eans by which the
Department may send notices, decisions and other written communications are: (1)
delivery to a secure account of a person who has registered for an account with an
electronic system maintained by the Department; (2) delivery to an electr onic mail
address at which a person has agreed to receive notices, decisions and other written
communications from the Department; and (3) posting a notice, decision or other
written communication on an electronic network or Internet website maintained by
the Department that is accessible to a person via the Internet or a mobile application
and delivering a separate notice of such posting to the electronic mail address of the
person. Sections 2 and 3 of this bill clarify that the Department is required to
continue to provide notice by personal service or by mail of determinations of
deficiency in the payment of taxes or the suspension or revocation of certain
permits issued by the Department. (NRS 360.350, 360.5975)
Existing law authorizes the Office of Eco nomic Development to approve
transferable tax credits and abatements or partial abatements of certain property
taxes, business taxes and sales and use taxes for certain businesses in certain
circumstances. (NRS 231.1555, 274.310, 274.320, 274.330, 360.750, 360.753,
360.754, 360.759, 360.889, 360.945) Section 1.5 of this bill authorizes the Board
of Economic Development to deny, or approve for a lesser amount, an application
for an abatement, partial abatement or transferable tax credits if the Board
determines that approving the full amount applied for is not in the best interests of
the State. Section 1.5 lists certain factors that the Board may consider in
determining whether granting the full amount applied for is in the best interests of
the State.
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Existing law authorizes the Office to approve a partial abatement from the taxes
imposed on real property for a business that: (1) engages in the primary trade of
preparing, fabricating, manufacturing or otherwise processing raw material or an
intermediate product using a certain percentage of recycled materials or includes as
a primary component a facility for the generation of electricity from recycled
material; and (2) has as its primary purpose the conservation of energy or the
substitution of other sources of energy for fossil fuel sources of energy. (NRS
701A.210) Section 7.5 of this bill authorizes the Office to grant such a partial
abatement of property taxes to a business that: (1) includes as a primary component
a facility for the production of biofuel s, biomass or other primary fuels from
recycled material to produce energy; or (2) primarily engages in the recycling or
repurposing of materials that were used to produce or store renewable energy,
including, without limitation, materials used in solar pa nels or waste materials
resulting from the extraction of minerals.
Existing law imposes a commerce tax on the Nevada gross revenue of certain
business entities whose Nevada gross revenue exceeds $4,000,000 in a taxable
year, at a rate that is based on the industry in which a business entity is engaged.
(Chapter 363C of NRS) Section 13 of this bill repeals the provision of existing law
that provides that for the purpose of determining the commerce tax rate of a
business entity, the industry in which a busin ess entity is engaged is determined
based on the 2012 edition of the North American I ndustry Classification System
(“NAICS”) published by the Bureau of the Census of the United States Department
of Commerce. (NRS 363C.060) Section 4 of this bill instead pr ovides that the
industry in which a business entity is engaged is determined based on the most
recent edition of the NAICS. Section 5 of this bill updates certain NAICS codes in
the publishing, software and data processing business categories to reflect th e 2022
version of the NAICS, which is the most recent version published by the Bureau of
the Census. (NRS 363C.430) Section 14 of this bill provides that the changes made
by sections 4, 5 and 13 apply only to taxable years commencing on or after July 1,
2025, thereby prohibiting retroactive application of the changes made by those
sections to previous taxable years.
Under existing law, with certain exceptions, a person required to pay sales or
use tax is required to remit such taxes to the Department on or before the last day of
the month after the tax was imposed. (NRS 372.355, 374.360) Sections 6 and 7 of
this bill revise the due date for remitting such taxes by requiring sales or use tax to
be remitted to the Department on or before the 20th day of the month after the tax
was imposed. Sections 14 and 15 of this bill provide that the change to the due date
for remitting sales and use taxes to the Department applies only to a taxable period
beginning on or after January 1, 2026, thereby prohibiting retroactive application of
the change to such due date to taxable periods beginning before January 1, 2026.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 360 of NRS is hereby amended by adding
thereto the provisions set forth as sections 1.3 and 1.5 of this act.
Sec. 1.3. 1. Except as otherwise provided by specific statute,
the Department may deliver by electronic means any notice,
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decision or other written communication which the Department is
required to provide to a person pursuant to this title if the notice,
decision or other written communication delivered by the
Department through electronic means contains or is accompanied
by information from which the person can determine the date on
which the Department sent the notice, decision or other written
communication.
2. The Department shall allow a person, at any time, to opt
out of receiving notices, decisions and written communications
from the Department through electronic means. Except as
otherwise provided by specific statute, if a person opts out of
receiving such notices, decisions and written communications
through electronic means, the Department shall send such notices,
decisions and written communications by mail addressed to the
person at his or her address as it appears in the records of the
Department.
3. As used in this section, “deliver by electronic means”
means:
(a) To deliver to the secure account of a person who has
registered for an account with an electronic system maintained by
the Department;
(b) To deliver to an electronic mail address at whic h a person
has agreed to receive notices, decisions and other written
communications from the Department; or
(c) To post a notice, decision or other written communication
on an electronic network or Internet website maintained by the
Department that is ac cessible via the Internet or a mobile
application or by using a computer, mobile device, tablet or any
other electronic device and to deliver a separate notice of the
posting of the notice, decision or other written communication to
the electronic mail add ress of the person described in
paragraph (b).
Sec. 1.5. 1. Notwithstanding any other provisions of law, if
the Board of Economic Development determines, with respect to
an application for an abatement or partial abatement of taxes or
for transferable tax credits which is reviewed by the Board, that
granting the full amount of the abatement, partial abatement or
transferable tax credits requested or to which the applicant would
otherwise be entitled is not in the b est interests of the State, the
Board must:
(a) Deny the application; or
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(b) Approve the application but for a lesser amount, or
otherwise place conditions on the approval of the abatement,
partial abatement or transferable tax credits.
2. In determini ng whether granting the full amount of an
abatement, partial abatement or transferable tax credits is in the
best interests of the State for the purposes of subsection 1, the
Board of Economic Development may consider the following
factors, with respect to the business that is the subject of the
application:
(a) The projected water consumption of the business,
particularly if the business is or will be located in a region with
limited water resources, with the goal of promoting the sustainable
use of the water supplies in this State.
(b) The alignment of the business with the social objectives of
the State, including, without limitation, the promotion of equity,
education and community well-being.
(c) The potential environmental impact of the business,
including, without limitation, the likelihood of a significant
adverse effect on air quality, water quality or local ecosystems.
(d) The alignment of the business with the economic objectives
of the State, including, without limitation, the creation of jobs , the
diversification of the economy of the State and the long -term
economic development of the State.
(e) The anticipated impact of the business on local
communities, including, without limitation, the impact on traffic,
infrastructure and community resources.
(f) The financial stability and viability of the business,
including, without limitation, signs of financial instability that
may pose a risk to state investments.
3. The Board of Economic Development may consider the
factors listed in subsection 2 with respect to any other decision
which the Board is authorized to make with respect to an
application for an abatement, partial abatement or transferable
tax credits, including, without limitation, the duration of the
abatement, partial abatement or transferable tax credits.
Sec. 2. NRS 360.350 is hereby amended to read as follows:
360.350 1. The Department shall give a person against whom
a determination has been made written notice of its determination [.]
in accordance with subsection 2.
2. The notice may be served personally or by mail. If served by
mail, the notice must be addressed to the person at his or her address
as it appears in the records of the Department.
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3. If notice is served by mail, ser vice is complete at the time of
deposit with the United States Postal Service.
4. Service of notice tolls any limitation for the determination of
a further deficiency.
Sec. 3. NRS 360.5975 is hereby amended to read as follows:
360.5975 1. Whenever any person fails to comply with any
provision of chapter 372, 374 or 377 of NRS relating to the taxes
imposed by those chapters or any regulation of the Department
relating to the taxes imposed by chapters 372, 374 and 377 of NRS,
the Department, after a hearing of which the person was given prior
notice of at least 10 days in writing specifying the time and place of
the hearing and requiring the person to show cause as to why his or
her permit or permits should not be revoked or suspended, may
revoke or suspend any one or more of the permits held by the
person.
2. The Department shall give to the person written notice of the
suspension or revocation of any of his or her permits [.] in
accordance with subsection 3.
3. The notices may be served personally or by mail in the
manner prescribed for service of notice of a deficiency
determination.
4. The Department shall not issue a new permit after the
revocation of a permit unless it is satisfied that the former holder of
the permit will comply with the provisions of chapters 372, 374 and
377 of NRS relating to the taxes imposed by those chapters and the
regulations of the Department.
Sec. 4. Chapter 363C of NRS is hereby amended by adding
thereto a new section to read as follows:
1. Except as otherwise provided in this section and unless the
context otherwise requires, for the purposes of this chapter,
references to the “North American Industry Classification
System” or “NAICS” are to the most recent edition of the North
American Industry Classification System published by the Bureau
of the Census of the United States Department of Commerce.
2. The Department shall review each new edition of the North
American Industry Classification System published by the Bureau
of the Census of the United States Department of Commerce after
July 1, 2025. If the Department determines that the adoption of
the new edition would cause a business entity to be categorized in
a different business category set forth in NRS 363C.310 to
363C.550, inclusive, or would cause a business entity categorized
in the unclassified business category pursuant to NRS 363C.560 to
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be categorized in a business category set forth in NRS 363C.310 to
363C.550, inclusive:
(a) The Department shall notify the Office of Finance and the
Fiscal Analysis Division of the Legislative Counsel Bureau; and
(b) The new edition of the North American Industry
Classification System must not become effective unless legislation
adopting the new edi tion is enacted by the Legislature and
approved by the Governor.
Sec. 5. NRS 363C.430 is hereby amended to read as follows:
363C.430 1. The publishing, software and data processing
business category (NAICS [511,] 512, [515] 513, 516 and 518)
includes all business entities primarily engaged in:
(a) [Publishing, except on the Internet, including, without
limitation, the publishing of newspapers, magazines, other
periodicals and books, as well as directory and mailing list and
software publishing;
(b)] Motion picture and sound recording, including, without
limitation, the production and distribution of motion pictures and
sound recordings;
(b) Publishing, except on the Internet, including, without
limitation, the publishin g of newspapers, magazines, other
periodicals and books, as well as directory and mailing list and
software publishing;
(c) Broadcasting, except on the Internet, including, without
limitation, creating content or acquiring the right to distribute
content and subsequently broadcast or distribute the content; and
(d) Data processing, hosting and related services, including,
without limitation, the provision of infrastructure for hosting and
data processing services.
2. The amount of the commerce tax for a business entity
included in this category is the amount obtained by subtracting
$4,000,000 from the Nevada gross revenue of the business entity for
the taxable year and multiplying that amount by 0.253 percent.
Sec. 6. NRS 372.355 is hereby amended to read as follows:
372.355 Except as otherwise provided in NRS 372.380 or
required by the Department pursuant to NRS 360B.200, the taxes
imposed by this chapter are due and payable to the Department
monthly on or before the [last day ] 20th day of the month next
succeeding each month.
Sec. 7. NRS 374.360 is hereby amended to read as follows:
374.360 Except as otherwise provided in NRS 374.385 or
required by the Department pursuant to NRS 360 B.200, the taxes
imposed by this chapter are due and payable to the Department
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monthly on or before the [last day ] 20th day of the month next
succeeding each month.
Sec. 7.5. NRS 701A.210 is hereby amended to read as
follows:
701A.210 1. Except as otherwise provided in this section, the
Office of Economic Development may grant a business a partial
abatement from the taxes imposed on real property pursuant to
chapter 361 of NRS if : [a:]
(a) [Business that engages] The business:
(1) Engages in the primary trade of preparing, fabricating,
manufacturing or otherwise processing raw material or an
intermediate product through a process in which at least 50 percent
of the material or product is recycled on-site; [or
(b) Business that includes]
(2) Includes as a primary component a facility for the
generation of electricity from recycled material [,
is found by the Office of Economic Development to have ] or a
facility for the production of biofuels, biomass or other primary
fuels from recycled material to produce energy; or
(3) Primarily engages in the recycling or repurposing of
materials that were used to produce or store renewable energy,
including, without limitation, materials used in solar panels or
waste materials resulting from the extraction of minerals;
(b) The Office finds that the business has as a primary purpose
the conservation of energy , [or] the substitution of other sources of
energy for fossil sources of energy [and] or the advancement of the
environmental sustainability and energy goals of this State;
(c) The business obtains certification from the Office [of
Economic Development ] pursuant to NRS 360.750 [, the Office
may, if the] ; and
(d) The business [additionally] satisfies the requirem ents set
forth in subsection 2 of NRS 361.0687 . [, grant to the business a
partial abatement from the taxes imposed on real property pursuant
to chapter 361 of NRS.]
2. If a partial abatement from the taxes imposed on real
property pursuant to chapter 3 61 of NRS is approved by the Office
of Economic Development pursuant to NRS 360.750 for a business
described in subsection 1:
(a) The partial abatement must:
(1) Be for a duration of at least 1 year but not more than 10
years;
(2) Not exceed 50 percen t of the taxes on real property
payable by the business each year; and
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(3) Be administered and carried out in the manner set forth in
NRS 360.750.
(b) The Executive Director of the Office of Economic
Development shall notify the county assessor of the county in which
the business is located of the approval of the partial abatement,
including, without limitation, the duration and percentage of the
partial abatement that the Office granted. The Executive Director
shall, on or before April 15 of each year, advise the county assessor
of each county in which a business qualifies for a partial abatement
during the current fiscal year as to whether the business is still
eligible for the partial abatement in the next succeeding fiscal year.
3. The partial abate ment provided in this section applies only
to the business for which certification was granted pursuant to NRS
360.750 and the property used in connection with that business. The
exemption does not apply to property in this State that is not related
to the business for which the certification was granted pursuant to
NRS 360.750 or to property in existence and subject to taxation
before the certification was granted.
4. As used in this section [, “facility] :
(a) “Anaerobic digestion” means the breaking d own of
organic waste using anaerobic bacteria to create biofuel.
(b) “Biofuel” means any alcohol, ether, ester or other
chemical compound made from herbaceous plants, woody plants
or organic waste.
(c) “Biomass” means any organic matter that is available on a
renewable basis, including, without limitation:
(1) Agricultural crops and agriculture wastes and residues;
(2) Wood and wood wastes and residues;
(3) Animal wastes;
(4) Municipal wastes; and
(5) Aquatic plants.
(d) “Facility for the gener ation of electricity from recycled
material” means a facility for the generation of electricity that uses
recycled material as its primary fuel, including material from:
[(a)] (1) Industrial or domestic waste, other than hazardous
waste, even though it in cludes a product made from oil, natural gas
or coal, such as plastics, asphalt shingles or tires;
[(b)] (2) Agricultural crops, whether terrestrial or aquatic, and
agricultural waste, such as manure and residue from crops; and
[(c)] (3) Municipal waste, such as sewage and sludge.
The term includes all the equipment in the facility used to process
and convert into electricity the energy derived from a recycled
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material fuel [.] and a facility for the generation of electricity
through modified microbial fuel cells.
(e) “Facility for the production of biofuels, biomass or other
primary fuels from recycled material” means a facility for the
production of biofuels, biomass or other primary fuels that uses
recycled material to produc e biofuels, biomass or oth er primary
fuels for use in the generation of energy, including material from:
(1) Industrial or domestic waste, other than hazardous
waste, even though it includes a product made from oil, natural
gas or coal, such as plastics, asphalt shingles or tires;
(2) Agricultural crops, whether terrestrial or aquatic, and
agricultural waste, such as manure and residue from crops; and
(3) Municipal waste, such as sewage and sludge.
The term includes all the equipment in the facility used to
process and convert into biofuels, biomass or other primary fuels
the energy derived from a recycled material and a facility for the
production of biofuels, biomass or other primary fuels through
gasification and pyrolysis, anaerobic digestion, the recovery of gas
from landfills or triboelectric devices.
(f) “Gasification and pyrolysis” means the use of heat to
convert waste into synthesis gas.
(g) “Modified microbial fuel cell” means the use of
microorganisms to convert the chemical energy in organic waste
into electricity while simultaneously treating wastewater.
(h) “Recycled material” includes, without limitation, critical
materials, waste materials from the extraction of minerals and
products for the production or storage of renewable energy that
are recycled or repurposed.
(i) “Renewable energy” means biomass. The term does not
include coal, natural gas, oil, propane or any other fossil fuel, or
nuclear energy.
(j) “Triboelectric device” means a device that converts energy
from ambient vibrations into electricity.
Secs. 8-12. (Deleted by amendment.)
Sec. 13. NRS 363C.060 is hereby repealed.
Sec. 14. 1. The provisions of sections 4, 5 and 13 of this act
apply only to a taxable year, as defined in NRS 363C.080,
commencing on or after July 1, 2025.
2. The amendatory provisions of sections 6 and 7 of this act
apply o nly to a taxable period commencing on or after January 1,
2026.
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Sec. 15. 1. This section, sections 1 to 5, inclusive, and
sections 7.5 to 13, inclusive, of this act and subsection 1 of section
14 of this act become effective on July 1, 2025.
2. Sections 6 and 7 of this act and subsection 2 of section 14 of
this act become effective on January 1, 2026.
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