Transportation Connection Tax (TCT)

Transportation Connection Tax (TCT)

The Nevada Transportation Connection Tax, also known as the Passenger Transportation Tax, is an excise tax on the fare revenues generated by passenger transportation services in Nevada.

The TCT tax is imposed on transportation network companies, common motor carriers of passengers, and taxicabs. It supports transportation infrastructure funding and also contributes to the state’s general budget.

Transportation Connection Tax (TCT) Return

  • Transportation Connection Tax (TCT) Return (PDF)
  • Who should use it?
    • Transportation Network Companies: This includes businesses like Uber, Lyft, and other ride share services that connect passengers with drivers via a mobile app or platform.
    • Taxi Services: Traditional taxi companies that provide transportation services to passengers.
    • Other Transportation Services: Any business providing similar transportation connections might also be required to use this form, depending on state regulations.
  • Purpose: The TCT Return is used to report and remit taxes collected from fares or fees charged to passengers.
  • Frequency: Companies are required to file this return monthly.

  • Tax Rate: 3% of the total fare charged for the transportation service.
  • Initial Distribution of Revenue: The first $5 million collected each biennium is allocated to the Highway Fund, which supports road and infrastructure projects within the state.
  • Subsequent Distribution of Revenue: Any revenue exceeding the initial $5 million per biennium is directed to the General Fund, which finances a broad array of state government operations and services.

If a customer pays a fare of $20 for a ride:

  • Tax Calculation: 3% of $20 = $0.60
  • $0.60 is collected as the Passenger Transportation Tax.
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