Nev. Admin. Code § 363C.240 — 363C.240

NAC 363C.240    Change of NAICS code category and rate used to calculate amount
of tax. ( NRS
360.090 , 363C.100 , 363C.200 )
1.  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 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 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 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 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 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 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 NRS
363C.310 to 363C.560 ,
inclusive; and
(c) The period to which the NAICS code and tax rate
will apply.
Ê 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.
(Added to NAC by Tax Comm’n by R123-15, eff. 6-28-2016)