Tax collectors hit up on more Nevada individuals, businesses

Thursday, Aug. 5, 2004 | 11:18 a.m.

CARSON CITY -- There may be as many as 200,000 individuals and companies that have failed to pay a new $100 a year business registration fee and the state Tax Department said it is speeding up its efforts to track them down.

The 2003 Legislature, in its $833.5 million tax bill, included a new annual $100 fee on those involved in business. But the language in the bill takes in a lot more individuals than originally projected.

For instance Carole Vilardo, president of the Nevada Taxpayers Association, said in an interview Wednesday that those persons who receive income from renting just one home are required to pay the tax. And there are thousands of others who never registered with the state Tax Department in the past who will now have to start paying the fee.

When the bill was approved last summer, Chuck Chinnock, director of the tax department, estimated there would be 120,000 to 150,000 firms or people who might have to register.

But the data bank from the Internal Revenue Service shows there could be as many as an additional 250,000 people or entities subject to the new tax. And records from the secretary of state's office indicates there could be up to 220,000 companies, limited liability corporations or limited liability partnerships that must pay the levy.

Chinnock said Tuesday his staff is working with such groups as accountants, cosmetologists, lawyers and others to get the word out that people are liable for this fee.

Vilardo said she isn't surprised by the high number of people who are caught in this web. Those people with rental property that file the rental income and expenses on their federal income tax return come under the new law.

She said a legislative committee is working to change that to require only those with four or more rentals be required to pay the $100 annual fee.

This is just one of the issues with the tax bill that was quickly passed during the special session in 2003 without extensive debate or examination.

Chinnock said the department is starting to send out notices to those who potentially owe the tax. But he said this will be a long process.

The state Tax Commission, recognizing the problem, voted to waive the penalty and interest of anybody who doesn't pay the $100 until this December.