Morning outside the Legislature on the fifth day of the 31st Special Session in Carson City on Monday, July 13, 2020.
Photo: Trevor Bexon / The Nevada Independent
Nevada Appeal Capitol Bureau
Saturday, January 29, 2022
The Nevada Taxation Department has now refunded $64.88 million of the Modified Business Tax illegally overpaid by Nevada businesses.
The higher level MBT was slated to sunset last year but Democratic lawmakers attempted to keep that from happening, arguing that eliminating a sunset wasn’t actually a tax increase and, therefore, didn’t require a two-thirds majority. The attempt failed when Carson City District Judge Todd Russell agreed with Republican senators that, since removing the sunset generated about $100 million in General Fund revenue, it had to have a two-thirds vote.
With all Republican Senators opposed, the bill eliminating the sunset failed 13-8 — one shy of two-thirds.
The refunds to 22,261 businesses that paid the higher rate before the court ruling includes interest.
A taxation spokesman said the remaining $15.4 million balance has not been refunded for a variety of reasons including out of date account information. In some cases it was applied to the business’s account as a positive balance and in others, it was applied to a debt the business owed to the state and one of its agencies.
Officials say the refunds cannot be mailed to an invalid mailing address. Taxpayers can update their information at Nevada Online Tax or by calling the department at 866-962-3707.
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