When you get a permit to collect sales tax in Nevada, the state wants to make sure you’ll be able to pay the taxes you owe. To do this, they require a security deposit. Think of it as a financial safety net.
Here’s what you need to know:
Purpose of the Security Deposit: The state requires this deposit to ensure that you have funds available to cover your sales tax obligations. It’s a way for the state to protect itself if, for some reason, you can’t pay the taxes you owe.
How the Amount is Calculated: The amount of the deposit is based on how much tax the state estimates you’ll owe. If you report your sales tax monthly, the state takes your estimated monthly sales, applies the highest tax rate (currently 8.375%), and then multiplies that by three. If you report quarterly, they multiply it by six instead. However, if the calculated amount is $1,000 or less, you won’t need to provide a deposit.
What If You Don’t Meet the Deposit Requirement?: If you don’t provide the required deposit, you might not receive your sales tax permit. The state will notify you if you’re "in compliance" (meaning you’ve provided enough security) or "underbonded" (meaning you still need to provide more).
How to Provide the Deposit: You can meet the deposit requirement in various ways, such as by providing cash, an irrevocable letter of credit, or a surety bond. Payments can be made online if needed, directly in the state portal. Numeral can handle this for you with the banking information you have provided.
Let us know if this was helpful! Your feedback is very important.