Bill
AB 276
The bill replaces the fixed $4M commerce-tax threshold with an annual, CPI-adjusted revenue threshold that determines who must file and pay the tax.
Status summary
- Introduced: Feb 24, 2025 (Assemblymembers O’Neill & Dickman).
- Committee progress: Passed Revenue Committee as amended (Amendment No. 469 / First Reprint). Referred to Appropriations / Ways & Means; held under submission (last action: 2025‑05‑23). Status: No further action taken (as of 2025‑06‑03).
- Fiscal note (as reported): Effect on State: Yes. Effect on Local Government: No.
Purpose
AB 276 replaces Nevada’s fixed $4,000,000 commerce‑tax gross revenue threshold with a statutorily calculated, inflation‑adjusted “revenue threshold,” so the exemption point for the commerce tax keeps pace with inflation.
Key provisions
- Replaces the fixed $4,000,000 threshold with an annually calculated “revenue threshold.”
- For the taxable year beginning July 1, 2025 (FY 2026): revenue threshold = $4,000,000 + ($4,000,000 × average 12‑month percent increase in the CPI‑U, West Region (All Items) for the 3 calendar years immediately preceding the taxable year).
- For subsequent years: if the 3‑year average 12‑month CPI change is positive, the prior year’s threshold is increased by that average percentage; if the average is negative, the threshold remains the prior year’s amount (no downward adjustment).
- Each annual threshold is rounded to the nearest $100,000.
- Publication/timing: Department of Taxation must calculate and publish the FY 2026 threshold on its website within 30 days after July 1, 2025; for all subsequent years the calculation must be published by March 1 for the coming taxable year.
- Filing and tax base: Businesses whose Nevada gross revenue in a taxable year exceeds the computed threshold must file commerce‑tax returns; revenue equal to or below the threshold is excluded from the taxable base (conforming changes to multiple NRS sections).
- Interest on overpayments: Amends NRS 363C.620 to prohibit the Department of Taxation from paying interest on an overpayment that resulted from a taxpayer using a revenue threshold other than the Department’s published adjusted threshold.
- Conforming and technical changes across NRS chapters governing commerce tax calculation, returns, and administration.
Who is affected
- Businesses with Nevada gross revenue near the current $4,000,000 exemption point would be most directly affected. Indexing the threshold to CPI will generally raise the exemption over time in inflationary periods, potentially exempting more small and growing businesses from the tax.
- Department of Taxation: administrative duty to compute, round, publish threshold annually.
- Taxpayers: need to use the Department‑published threshold to avoid interest disallowance on overpayments.
Policy and stakeholder notes
- Support: Business groups such as the Henderson Chamber of Commerce endorsed the bill as making the threshold more equitable and predictable for small businesses.
- Opposition/concerns: Americans for Prosperity‑Nevada commented that indexing does not address broader issues with the commerce (gross‑receipts) tax structure and advocated repeal rather than adjustment.
Procedural/timing considerations
- Effective implementation requires the Department to complete the first published calculation for FY 2026 quickly (within 30 days after July 1, 2025) and to publish future thresholds by March 1 each year.
- The bill has been amended (Revenue Committee Amendment No. 469 / R1) to add rounding, timing clarifications, and the interest prohibition provision. Further legislative action would be required for enactment.
Compiled from official sources — confirm details with the bill’s official record.
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