1. The commerce tax is a tax imposed on each business entity engaging in a business in this State. To determine whether a business entity is engaging in a business in this State, the Department must consider the activities of the business entity and not the activities of other entities in which the business entity owns an interest.
2. Except as otherwise provided in subsection 3 and chapter 363C of NRS, for the purpose of determining whether a person or other entity is subject to the commerce tax, a person or other entity is a business entity if the person is:
(a) An entity organized pursuant to title 7 of NRS or another equivalent statute of this State or another jurisdiction, other than an entity organized pursuant to chapter 82 or 84 of NRS.
(b) A state, national, domestic or foreign bank, whether organized under the laws of this State, another state or another country, or under federal law.
(c) A savings and loan association or savings bank, whether organized under the laws of this State, another state or another country, or under federal law.
(d) A partnership governed by chapter 87 of NRS or another equivalent statute of this State or another jurisdiction.
(e) A registered limited-liability partnership registered with the Secretary of State pursuant to NRS 87.440 to 87.500, inclusive.
(f) A business association.
(g) A joint venture, except a joint operating or co-ownership arrangement which meets the requirements of 26 C.F.R. § 1.761 - 2(a)(3), Treas. Reg. § 1.761-2(a)(3), that elects out of federal partnership treatment as provided by 26 U.S.C. §
761(a).
(h) A joint stock company.
(j) A natural person who is required to file with the Internal Revenue Service a:
(1) Schedule C (Form 1040), Profit or Loss from Business, or its equivalent or successor form;
(2) Schedule E (Form 1040), Supplemental Income and Loss, or its equivalent or successor form, if an activity of the natural person is reported on Part I of that Schedule; or
(3) Schedule F (Form 1040), Profit or Loss from Farming, or its equivalent or successor form.
(k) Any other person engaging in a business in this State.
3. For the purpose of determining whether a person or other entity is subject to the commerce tax, a person or other entity is not a business entity if the person or entity is listed in subsection 2 of NRS 363C.020, regardless of whether the person or entity is engaging in a business in this State.
4. As used in this section:
(a) "Holding company" means an entity that confines its activities to owning stock in, and supervising management of, other companies.
(b) "Joint stock company" means a common-law unincorporated business enterprise of natural persons possessing common capital with ownership interests represented by shares of stock.
(c) "Joint venture" means a partnership engaged in the joint prosecution of a particular transaction for mutual profit.
Added to NAC by Tax Comm'n by R123-15, eff. 6/28/2016
