New State Law Requires Facility Registration;
Electronic Tonnage Tax Collection
In 2015, the state of Nevada enacted a
new law requiring commercial feed facility licenses, quarterly tonnage sales reporting and payment of tonnage taxes. The law went into effect on Jan. 1; however, the Nevada Department of Agriculture is just now requiring the licensing and tonnage payments. The department chose to wait until an electronic payment system was established.
A manufacturer, distributor or guarantor who distributes, sells or offers for sale commercial feed in Nevada must obtain a facility license. A licensee must also report quarterly the total tonnage manufactured, distributed or guaranteed in Nevada and pay a tonnage tax of 15 cents per ton or $5, whichever is greater.
The department is
distributing a letter to many companies and publishing information to notify industry. The American Feed Industry Association is informing its members about the new requirements and asks industry to comply. The website to acquire the facility license and pay tonnage fees is available
here.
Originally, this bill contained product registration fees, which AFIA opposed. After discussion with customer groups, AFIA convinced the department to support a tonnage tax bill, which is more realistic. The purpose of the taxes, according to the department, is to fund an inspector to do Food Safety Modernization Act inspections. AFIA supported moving this legislation to 2017, but last-minute bill shuffling allowed the department to adopt it last year.
For more information, please contact
Leah Wilkinson, AFIA vice president of legislative, regulatory and state affairs, at (703) 558-3560.