NEVADA REVISED STATUTES: CHAPTER 372

CHAPTER 372

SALES AND USE TAXES

(This chapter includes sections 1 to 21, inclusive, 34 to 38, inclusive, and 48 to 67.1, inclusive, of the Sales and Use Tax Act enacted as chapter 397, Statutes of Nevada 1955, at pages 762 to 766, inclusive, 769 and 771 to 773, inclusive, respectively. The Sales and Use Tax Act was submitted to and approved by referendum at the general election in 1956, and therefore is not subject to legislative amendment or repeal. The other sections of the Sales and Use Tax Act, sections 22 to 33, inclusive, 39 to 47.1, inclusive, and 68 to 153.2, inclusive, were repealed by referendum at a special election on June 5, 1979. Inclusion of the unrepealed sections of the Sales and Use Tax Act in this chapter of NRS is in the interest of uniformity and pursuant to the provisions of subsection 3 of section 4 of chapter 2, Statutes of Nevada 1957, which reads: “The incorporation of initiated or referred measures is not to be deemed a legislative reenactment or amendment thereof, but only a mechanical inclusion thereof into the Nevada Revised Statutes.” Citations of those sections should be made to the Sales and Use Tax Act as contained in chapter 397, Statutes of Nevada 1955, rather than to the sections of chapter 372 of NRS.)

GENERAL PROVISIONS

NRS 372.010 Short title.

NRS 372.015 Definitions.

NRS 372.020 “Business” defined.

NRS 372.025 “Gross receipts” defined.

NRS 372.030 “In this state” and “in the state” defined.

NRS 372.035 “Occasional sale” defined.

NRS 372.040 “Person” defined.

NRS 372.045 “Purchase” defined.

NRS 372.050 “Retail sale” and “sale at retail” defined.

NRS 372.055 “Retailer” defined.

NRS 372.060 “Sale” defined.

NRS 372.065 “Sales price” defined.

NRS 372.070 “Seller” defined.

NRS 372.075 “Storage” defined.

NRS 372.080 “Storage” and “use” defined.

NRS 372.085 “Tangible personal property” defined.

NRS 372.090 “Tax commission” defined.

NRS 372.095 “Taxpayer” defined.

SALES TAX

NRS 372.105 Imposition and rate.

NRS 372.110 Method of collection.

NRS 372.115 Advertisement of assumption or absorption of tax by retailer unlawful.

NRS 372.120 Tax must be displayed separately from price.

NRS 372.123 Certain contracts must require person making sale to obtain permit.

NRS 372.125 Application for permit required: Form; contents.

NRS 372.130 Fee for permit.

NRS 372.135 Issuance, assignability and display of permit; explanation of liability for collection and payment of taxes.

NRS 372.140 Fee for reinstatement of suspended or revoked permit.

NRS 372.145 Revocation or suspension of permit: Procedure; limitation on issuance of new permit.

NRS 372.155 Presumption of taxability; resale certificate.

NRS 372.160 Effect of resale certificate.

NRS 372.165 Form and contents of resale certificate.

NRS 372.170 Liability of purchaser giving resale certificate.

NRS 372.175 Improper use of resale certificate; penalty.

NRS 372.180 Resale certificate: Commingled fungible goods.

USE TAX

NRS 372.185 Imposition and rate.

NRS 372.190 Liability for tax; extinguishment of liability.

NRS 372.195 Collection by retailer; purchaser’s receipt.

NRS 372.200 Tax as debt to state.

NRS 372.205 Advertisement of assumption or absorption of tax by retailer unlawful.

NRS 372.210 Tax must be displayed separately from price.

NRS 372.215 Unlawful acts.

NRS 372.220 Registration of retailers.

NRS 372.225 Presumption of purchase for use; resale certificate.

NRS 372.230 Effect of resale certificate.

NRS 372.235 Form and contents of resale certificate.

NRS 372.240 Liability of purchaser giving resale certificate: Use of article bought for resale.

NRS 372.245 Resale certificate: Commingled fungible goods.

NRS 372.250 Presumption of purchase for use in this state.

NRS 372.255 Presumption that property delivered outside this state to certain purchasers was purchased for use in this state.

NRS 372.258 Presumption that certain property delivered outside this state was not purchased for use in this state.

EXEMPTIONS

NRS 372.260 “Exempted from the taxes imposed by this chapter” defined.

NRS 372.265 Constitutional and statutory exemptions.

NRS 372.270 Proceeds of mines.

NRS 372.275 Fuel used to propel motor vehicle.

NRS 372.280 Animals and plants intended for human consumption; feed; fertilizer.

NRS 372.2815 Farm machinery and equipment. [Effective January 1, 2003, if approved by the voters at the general election on November 5, 2002.]

NRS 372.283 Prosthetic devices, orthotic appliances and certain supports and casts; appliances and supplies relating to ostomy; products for hemodialysis; medicine.

NRS 372.284 Food for human consumption.

NRS 372.2841 Basis for determining exemption of food for human consumption.

NRS 372.285 Meals and food products sold to students or teachers by school, organization of students or parent-teacher association.

NRS 372.287 Textbooks sold within University and Community College System of Nevada.

NRS 372.290 Containers.

NRS 372.295 Gas, electricity and water.

NRS 372.300 Domestic fuels.

NRS 372.305 Personal property used for performance of contract on public works executed before July 1, 1955.

NRS 372.310 Personal property used for performance of written contract executed before March 29, 1955.

NRS 372.315 Newspapers.

NRS 372.316 Manufactured homes and mobile homes.

NRS 372.317 Aircraft and major components of aircraft.

NRS 372.318 Engines, chassis, parts and components of professional racing vehicles; certain vehicles used by professional racing team or sanctioning body. [Effective January 1, 2003, if approved by the voters at the general election on November 5, 2002.]

NRS 372.320 Occasional sales.

NRS 372.325 Sale to United States, state or political subdivision.

NRS 372.326 Personal property sold by or to nonprofit organization created for religious, charitable or educational purposes.

NRS 372.3261 Requirements for organization created for religious, charitable or educational purposes.

NRS 372.327 Loan or donation to United States, state, political subdivision or religious or eleemosynary organization.

NRS 372.330 Sale to common carrier.

NRS 372.335 Property shipped outside state pursuant to sales contract; delivery by vendor.

NRS 372.340 Personal property sold to or used by contractor who is constituent part of governmental, religious or charitable entity.

NRS 372.343 Procedure for claim of exemption by nonprofit organization created for religious, charitable or educational purposes; regulations.

NRS 372.345 Use tax: Property on which sales tax paid.

NRS 372.350 Liability of purchaser who uses property declared exempt for purpose not exempt.

RETURNS AND PAYMENTS

NRS 372.354 Taxes collected to be held in separate account.

NRS 372.355 Date tax due.

NRS 372.360 Return: Time for filing; persons required to file; signatures.

NRS 372.365 Contents of return; credit for uncollected sales price; violations.

NRS 372.370 Reimbursement to taxpayer for collection of tax.

NRS 372.375 Delivery of return; remittance.

NRS 372.380 Periods for returns.

NRS 372.383 Presumption of payment: Certificate of ownership for used manufactured home or used mobile home.

NRS 372.385 Lease and rental receipts: Reporting; payment.

NRS 372.390 Affixing and canceling of revenue stamps.

NRS 372.395 Extension of time for filing return and paying tax.

NRS 372.397 Deferral of payment.

NRS 372.398 Collection and payment of tax by responsible person; joint and several liability.

SECURITY

NRS 372.510 Authority of department; amount; sales; return of surplus.

OVERPAYMENTS AND REFUNDS

NRS 372.630 Certification of excess amount collected; credit and refund; overpayment of use tax by purchaser.

NRS 372.635 Limitations on claims for refund or credit.

NRS 372.640 Credit or refund for use tax: Reimbursement of vendor for sales tax.

NRS 372.645 Form and contents of claim for credit or refund.

NRS 372.650 Failure to file claim constitutes waiver.

NRS 372.655 Service of notice of disallowance of claim.

NRS 372.660 Interest on overpayments.

NRS 372.665 Disallowance of interest.

NRS 372.670 Injunction or other process to prevent collection of tax prohibited.

NRS 372.675 Action for refund: Claim as condition precedent.

NRS 372.680 Action for refund: Time to sue; venue of action; waiver.

NRS 372.685 Right of appeal on failure of department to mail notice of action on claim.

NRS 372.690 Judgment for plaintiff: Credits; refund of balance.

NRS 372.695 Allowance of interest.

NRS 372.700 Standing to recover.

NRS 372.705 Action to recover erroneous refund: Authority of department.

NRS 372.710 Action to recover erroneous refund: Venue.

NRS 372.715 Action to recover erroneous refund: Prosecution by attorney general; applicable provisions.

NRS 372.720 Cancellation of illegal determination: Procedure; limitation.

ADMINISTRATION

NRS 372.725 Enforcement by department; adoption of regulations.

NRS 372.726 Application of exemption for aircraft and major components of aircraft.

NRS 372.7263 Application of exemption for sale of personal property for shipment outside state to include sale of motor vehicle to certain nonresidents. [Effective through June 30, 2002.]

NRS 372.7265 Calculation of tax imposed on retail sale of large appliances.

NRS 372.727 Calculation of tax imposed on use or other consumption of meals provided by employer to employees.

NRS 372.728 Construction of “retailer maintaining place of business in this state.”

NRS 372.7283 Application of NRS 372.325 to transfer of property to governmental entities pursuant to certain agreements.

NRS 372.7285 Application of NRS 372.325 to sale of certain medical devices to governmental entities.

NRS 372.729 Taxation of photographers: Furnishing of proofs considered to be rendition of service.

NRS 372.730 Employment of accountants, investigators and other persons; delegation of authority.

NRS 372.733 Certain broadcasters, printers, advertising firms, distributors and publishers deemed agents and retailers maintaining place of business in this state.

NRS 372.734 Certain broadcasting activities not taxable transactions.

NRS 372.735 Records to be kept by sellers, retailers and others.

NRS 372.740 Examination of records; investigation of business; taxpayer to pay expenses of department for traveling out of state.

NRS 372.745 Reports for administering use tax: Contents.

NRS 372.750 Disclosure of information unlawful; exceptions.

PENALTIES

NRS 372.755 Failure to make return or furnish data.

NRS 372.760 False or fraudulent return.

NRS 372.765 Other violations of chapter.

NRS 372.770 Statute of limitations.

NRS 372.775 Application of doctrine of res judicata.

MISCELLANEOUS PROVISIONS

NRS 372.780 Sales and use tax account: Remittances; deposits.

NRS 372.785 Sales and use tax account: Refunds.

NRS 372.790 Remedies of state are cumulative.

NRS 372.795 Department’s authority.

NRS 372.800 Indian reservations and colonies: Imposition and collection of sales tax.

NRS 372.805 Indian reservations and colonies: Restriction on collection of tax by department.

NRS 372.810 Rights of Indians not abridged.

NRS 372.815 Strict construction of certain provisions of chapter.

NRS 372.010 Short title. This chapter is known and may be cited as the Sales and Use Tax Act.

[1:397:1955]

NRS 372.015 Definitions. Except where the context otherwise requires, the definitions given in NRS 372.020 to 372.095, inclusive, govern the construction of this chapter.

[2:397:1955]

NRS 372.020 “Business” defined. “Business” includes any activity engaged in by any person or caused to be engaged in by him with the object of gain, benefit or advantage, either direct or indirect.

[13:397:1955]

NRS 372.025 “Gross receipts” defined.

1. “Gross receipts” means the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:

(a) The cost of the property sold. However, in accordance with such rules and regulations as the tax commission may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.

(b) The cost of the materials used, labor or service cost, interest paid, losses or any other expense.

2. The total amount of the sale or lease or rental price includes all of the following:

(a) Any services that are a part of the sale.

(b) All receipts, cash, credits and property of any kind.

3. “Gross receipts” does not include any of the following:

(a) Cash discounts allowed and taken on sales.

(b) Sale price of property returned by customers when the full sale price is refunded either in cash or credit; but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

(d) The amount of any tax (not including, however, any manufacturers’ or importers’ excise tax) imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.

4. For purposes of the sales tax, if the retailers establish to the satisfaction of the tax commission that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed.

[12:397:1955]

NRS 372.030 “In this state” and “in the state” defined. “In this state” or “in the state” means within the exterior limits of the State of Nevada and includes all territory within these limits owned by or ceded to the United States of America.

[17:397:1955]

NRS 372.035 “Occasional sale” defined.

1. “Occasional sale” includes:

(a) A sale of property not held or used by a seller in the course of an activity for which he is required to hold a seller’s permit, provided such sale is not one of a series of sales sufficient in number, scope and character to constitute an activity requiring the holding of a seller’s permit.

(b) Any transfer of all or substantially all the property held or used by a person in the course of such an activity when after such transfer the real or ultimate ownership of such property is substantially similar to that which existed before such transfer.

2. For the purposes of this section, stockholders, bondholders, partners or other persons holding an interest in a corporation or other entity are regarded as having the “real or ultimate ownership” of the property of such corporation or other entity.

[18.1:397:1955]

NRS 372.040 “Person” defined. “Person” includes any individual, firm, copartnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee, or any other group or combination acting as a unit, but shall not include the United States, this state or any agency thereof, or any city, county, district or other political subdivision of this state.

[3:397:1955]

NRS 372.045 “Purchase” defined.

1. “Purchase” means any transfer, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.

2. A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price is a purchase.

3. A transfer for a consideration of tangible personal property which has been produced, fabricated or printed to the special order of the customer, or of any publication, is also a purchase.

[10:397:1955]

NRS 372.050 “Retail sale” and “sale at retail” defined.

1. “Retail sale” or “sale at retail” means a sale for any purpose other than resale in the regular course of business of tangible personal property.

2. The delivery in this state of tangible personal property by an owner or former owner thereof or by a factor, or agent of such owner, former owner or factor, if the delivery is to a consumer or person for redelivery to a consumer, pursuant to a retail sale made by a retailer not engaged in business in this state, is a retail sale in this state by the person making the delivery. He shall include the retail selling price of the property in his gross receipts.

[6:397:1955]

NRS 372.055 “Retailer” defined.

1. “Retailer” includes:

(a) Every seller who makes any retail sale or sales of tangible personal property, and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others.

(b) Every person engaged in the business of making sales for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use or other consumption.

(c) Every person making more than two retail sales of tangible personal property during any 12‑month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy.

2. When the tax commission determines that it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the tax commission may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter.

3. A licensed optometrist or physician and surgeon is a consumer of, and shall not be considered, a retailer within the provisions of this chapter, with respect to the ophthalmic materials used or furnished by him in the performance of his professional services in the diagnosis, treatment or correction of conditions of the human eye, including the adaptation of lenses or frames for the aid thereof.

[15:397:1955]

NRS 372.060 “Sale” defined.

1. “Sale” means and includes any transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.

2. “Transfer of possession,” “lease,” or “rental” includes only transactions found by the tax commission to be in lieu of a transfer of title, exchange or barter.

3. “Sale” includes:

(a) The producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish, either directly or indirectly, the materials used in the producing, fabricating, processing, printing or imprinting.

(b) The furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others.

(d) A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price.

(e) A transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated or printed to the special order of the customer, or of any publication.

[5:397:1955]

NRS 372.065 “Sales price” defined.

1. “Sales price” means the total amount for which tangible property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

(a) The cost of the property sold.

(b) The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.

2. The total amount for which property is sold includes all of the following:

(a) Any services that are a part of the sale.

(b) Any amount for which credit is given to the purchaser by the seller.

3. “Sales price” does not include any of the following:

(a) Cash discounts allowed and taken on sales.

(b) The amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or credit; but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

[11:397:1955]

NRS 372.070 “Seller” defined. “Seller” includes every person engaged in the business of selling tangible personal property of a kind, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax.

[14:397:1955]

NRS 372.075 “Storage” defined. “Storage” includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer.

[7:397:1955]

NRS 372.080 “Storage” and “use” defined. “Storage” and “use” do not include the keeping, retaining or exercising any right or power over tangible personal property for the purpose of subsequently transporting it outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated or manufactured into, attached to, or incorporated into, other tangible personal property to be transported outside the state and thereafter used solely outside the state.

[9:397:1955]

NRS 372.085 “Tangible personal property” defined. “Tangible personal property” means personal property which may be seen, weighed, measured, felt or touched, or which is in any other manner perceptible to the senses.

[16:397:1955]

NRS 372.090 “Tax commission” defined. “Tax commission” means the Nevada tax commission.

[18:397:1955]

NRS 372.095 “Taxpayer” defined. “Taxpayer” means any person liable for tax under this chapter.

[4:397:1955]

SALES TAX

NRS 372.105 Imposition and rate. For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of 2 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this state on or after July 1, 1955.

[19:397:1955]

NRS 372.110 Method of collection. The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done.

[20:397:1955]

NRS 372.115 Advertisement of assumption or absorption of tax by retailer unlawful.

1. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that if added it or any part thereof will be refunded.

2. Any person violating any provision of this section is guilty of a misdemeanor.

[21:397:1955]

NRS 372.120 Tax must be displayed separately from price. The department may by regulation provide that the amount collected by the retailer from the consumer in reimbursement of the tax be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check or other proof of sale.

(Added to NRS by 1979, 412)

NRS 372.123 Certain contracts must require person making sale to obtain permit.

1. If the state or a political subdivision of the state enters into a contract pursuant to chapter 332 or 333 of NRS on or after June 5, 2001, with a person who:

(a) Sells tangible personal property in this state; and

(b) Has not obtained a permit pursuant to NRS 372.125 because he does not maintain a place of business within this state,

the contract must include a provision requiring the person to obtain a permit pursuant to NRS 372.125 and to agree to collect and pay the taxes imposed pursuant to this chapter on the sale of tangible personal property in this state. For the purposes of the permit obtained pursuant to NRS 372.125, the person shall be deemed to have a single place of business in this state.

2. The department may require a state agency or local government to submit such documentation as is necessary to ensure compliance with this section.

(Added to NRS by 2001, 1714)

NRS 372.125 Application for permit required: Form; contents.

1. Every person desiring to engage in or conduct business as a seller within this state must file with the department an application for a permit for each place of business.

2. Every application for a permit must:

(a) Be made upon a form prescribed by the department.

(b) Set forth the name under which the applicant transacts or intends to transact business and the location of his place or places of business.

3. The application must be signed by the owner if he is a natural person; in the case of an association or partnership, by a member or partner; in the case of a corporation, by an executive officer or some person specifically authorized by the corporation to sign the application, to which must be attached the written evidence of his authority.

(Added to NRS by 1979, 412)

NRS 372.130 Fee for permit. At the time of making an application, the applicant must pay to the department a permit fee of $1 for each permit.

(Added to NRS by 1979, 412)

NRS 372.135 Issuance, assignability and display of permit; explanation of liability for collection and payment of taxes.

1. After compliance with NRS 372.125, 372.130 and 372.510 by the applicant, the department shall:

(a) Grant and issue to each applicant a separate permit for each place of business within the state.

(b) Provide the applicant with a full, written explanation of the liability of the applicant for the collection and payment of the taxes imposed by this chapter. The explanation required by this paragraph:

(1) Must include the procedures for the collection and payment of the taxes that are specifically applicable to the type of business conducted by the applicant, including, without limitation and when appropriate:

(I) An explanation of the circumstances under which a service provided by the applicant is taxable;

(II) The procedures for administering exemptions; and

(III) The circumstances under which charges for freight are taxable.

(2) Is in addition to, and not in lieu of, the instructions and information required to be provided by NRS 360.2925.

2. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated on it. It must at all times be conspicuously displayed at the place for which it is issued.

(Added to NRS by 1979, 412; A 1999, 2494)

NRS 372.140 Fee for reinstatement of suspended or revoked permit. A seller whose permit has been previously suspended or revoked must pay the department a fee of $1 for the renewal or issuance of a permit.

(Added to NRS by 1979, 413)

NRS 372.145 Revocation or suspension of permit: Procedure; limitation on issuance of new permit.

1. Whenever any person fails to comply with any provision of this chapter relating to the sales tax or any regulation of the department relating to the sales tax prescribed and adopted under this chapter, the department, after a hearing of which the person was given prior notice of at least 10 days in writing specifying the time and place of the hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by the person.

2. The department shall give to the person written notice of the suspension or revocation of any of his permits.

3. The notices may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination.

4. The department may not issue a new permit after the revocation of a permit unless it is satisfied that the former holder of the permit will comply with the provisions of this chapter relating to the sales tax and the regulations of the department.

(Added to NRS by 1979, 413; A 1981, 144; 1985, 282)

NRS 372.155 Presumption of taxability; resale certificate. For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax it is presumed that all gross receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property is not a sale at retail is upon the person who makes the sale unless he takes from the purchaser a certificate to the effect that the property is purchased for resale.

(Added to NRS by 1979, 413)

NRS 372.160 Effect of resale certificate. A resale certificate relieves the seller from the burden of proof only if taken in good faith from a person who is engaged in the business of selling tangible personal property and who holds the permit provided for in NRS 372.125 to 372.180, inclusive, and who, at the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

(Added to NRS by 1979, 413)

NRS 372.165 Form and contents of resale certificate.

1. The certificate must:

(a) Be signed by and bear the name and address of the purchaser.

(b) Indicate the number of the permit issued to the purchaser.

(c) Indicate the general character of the tangible personal property sold by the purchaser in the regular course of business.

2. The certificate must be substantially in such form as the department may prescribe.

(Added to NRS by 1979, 413)

NRS 372.170 Liability of purchaser giving resale certificate. If a purchaser who gives a certificate makes any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business, the use is taxable to the purchaser as of the time the property is first so used by him, and the sales price of the property to him is the measure of the tax. Only when there is an unsatisfied use tax liability on this basis is the seller liable for sales tax with respect to the sale of the property to the purchaser. If the sole use of the property other than retention, demonstration or display in the regular course of business is the rental of the property while holding it for sale, the purchaser may elect to include in his gross receipts the amount of the rental charged rather than the sales price of the property to him.

(Added to NRS by 1979, 413)

NRS 372.175 Improper use of resale certificate; penalty. Any person who gives a resale certificate for property which he knows at the time of purchase is not to be resold by him in the regular course of business for the purpose of evading payment to the seller of the amount of the tax applicable to the transaction is guilty of a misdemeanor.

(Added to NRS by 1979, 414)

NRS 372.180 Resale certificate: Commingled fungible goods. If a purchaser gives a certificate with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales from the mass of commingled goods shall be deemed to be sales of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold.

(Added to NRS by 1979, 414)

USE TAX

NRS 372.185 Imposition and rate.

1. An excise tax is hereby imposed on the storage, use or other consumption in this state of tangible personal property purchased from any retailer on or after July 1, 1955, for storage, use or other consumption in this state at the rate of 2 percent of the sales price of the property.

2. The tax is imposed with respect to all property which was acquired out of state in a transaction that would have been a taxable sale if it had occurred within this state.

[34:397:1955]—(Amended in 1986. Proposed by the 1985 legislature; adopted by the people at the 1986 general election, effective January 1, 1987. See Statutes of Nevada 1985, p. 1563.)

NRS 372.190 Liability for tax; extinguishment of liability. Every person storing, using or otherwise consuming in this state tangible personal property purchased from a retailer is liable for the tax. His liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer maintaining a place of business in this state or from a retailer who is authorized by the tax commission, under such rules and regulations as it may prescribe, to collect the tax and who is, for the purposes of this chapter relating to the use tax, regarded as a retailer maintaining a place of business in this state, given to the purchaser pursuant to NRS 372.195 is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

[35:397:1955]

NRS 372.195 Collection by retailer; purchaser’s receipt. Every retailer maintaining a place of business in this state and making sales of tangible personal property for storage, use or other consumption in this state, not exempted under NRS 372.260 to 372.350, inclusive, shall, at the time of making the sales or, if the storage, use or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the tax commission.

[36:397:1955]

NRS 372.200 Tax as debt to state. The tax required to be collected by the retailer constitutes a debt owed by the retailer to this state.

[37:397:1955]

NRS 372.205 Advertisement of assumption or absorption of tax by retailer unlawful. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that if added it or any part thereof will be refunded.

[38:397:1955]

NRS 372.210 Tax must be displayed separately from price. The tax required to be collected by the retailer from the purchaser must be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check or other proof of sales.

(Added to NRS by 1979, 414)

NRS 372.215 Unlawful acts. Any person who violates section 36 or 38 of the Sales and Use Tax Act (chapter 397, Statutes of Nevada 1955) or NRS 372.210 is guilty of a misdemeanor.

(Added to NRS by 1979, 414)

NRS 372.220 Registration of retailers. Every retailer who sells tangible personal property for storage, use or other consumption in this state shall register with the department and give:

1. The name and address of all agents operating in this state.

2. The location of all distribution or sales houses or offices or other places of business in this state.

3. Such other information as the department may require.

(Added to NRS by 1979, 414)

NRS 372.225 Presumption of purchase for use; resale certificate. For the purpose of the proper administration of this chapter and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property sold by any person for delivery in this state is sold for storage, use or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless he takes from the purchaser a certificate to the effect that the property is purchased for resale.

(Added to NRS by 1979, 414)

NRS 372.230 Effect of resale certificate. A resale certificate relieves the person selling the property from the burden of proof only if taken in good faith from a person who is engaged in the business of selling tangible personal property and who holds the permit provided for by NRS 372.125 to 372.180, inclusive, and who, at the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

(Added to NRS by 1979, 414)

NRS 372.235 Form and contents of resale certificate.

1. The certificate must:

(a) Be signed and bear the name and address of the purchaser.

(b) Indicate the number of the permit issued to the purchaser.

(c) Indicate the general character of the tangible personal property sold by the purchaser in the regular course of business.

2. The certificate must be substantially in such form as the department may prescribe.

(Added to NRS by 1979, 415)

NRS 372.240 Liability of purchaser giving resale certificate: Use of article bought for resale. If a purchaser who gives a certificate makes any storage or use of the property other than retention, demonstration or display while holding it for sale in the regular course of business, the storage or use is taxable as of the time the property is first so stored or used. If the sole use of the property, other than retention, demonstration or display in the regular course of business, is the rental of the property while holding it for sale, the purchaser may elect to pay the tax on the use measured by the amount of the rental charged rather than the sales price of the property to him.

(Added to NRS by 1979, 415)

NRS 372.245 Resale certificate: Commingled fungible goods. If a purchaser gives a certificate with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales from the mass of commingled goods shall be deemed to be sales of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold.

(Added to NRS by 1979, 415)

NRS 372.250 Presumption of purchase for use in this state. It is presumed that tangible personal property shipped or brought to this state by the purchaser on or after July 1, 1979, was purchased from a retailer on or after July 1, 1979, for storage, use or other consumption in this state.

(Added to NRS by 1979, 415)

NRS 372.255 Presumption that property delivered outside this state to certain purchasers was purchased for use in this state.

1. Except as otherwise provided in NRS 372.258, on and after July 1, 1979, it is presumed that tangible personal property delivered outside this state to a purchaser known by the retailer to be a resident of this state was purchased from a retailer for storage, use or other consumption in this state and stored, used or otherwise consumed in this state.

2. This presumption may be controverted by:

(a) A statement in writing, signed by the purchaser or his authorized representative, and retained by the vendor, that the property was purchased for use at a designated point or points outside this state.

(b) Other evidence satisfactory to the department that the property was not purchased for storage, use or other consumption in this state.

(Added to NRS by 1979, 415; A 1999, 943)

NRS 372.258 Presumption that certain property delivered outside this state was not purchased for use in this state.

1. It is presumed that tangible personal property delivered outside this state to a purchaser was not purchased from a retailer for storage, use or other consumption in this state if the property:

(a) Was first used in interstate or foreign commerce outside this state; and

(b) Is used continuously in interstate or foreign commerce, but not exclusively in this state, for at least 12 months after the date that the property was first used pursuant to paragraph (a).

2. As used in this section:

(a) “Interstate or foreign commerce” means the transportation of passengers or property between:

(1) A point in one state and a point in:

(I) Another state;

(II) A possession or territory of the United States; or

(III) A foreign country; or

(2) Points in the same state when such transportation consists of one or more segments of transportation that immediately follow movement of the property into the state from a point beyond its borders or immediately precede movement of the property from within the state to a point outside its borders.

(b) “State” includes the District of Columbia.

(Added to NRS by 1999, 943)

EXEMPTIONS

NRS 372.260 “Exempted from the taxes imposed by this chapter” defined. “Exempted from the taxes imposed by this chapter,” as used in NRS 372.260 to 372.350, inclusive, means exempted from the computation of the amount of taxes imposed.

[48:397:1955]

NRS 372.265 Constitutional and statutory exemptions. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, tangible personal property the gross receipts from the sale of which, or the storage, use or other consumption of which, this state is prohibited from taxing under the Constitution or laws of the United States or under the constitution of this state.

[49:397:1955]

NRS 372.270 Proceeds of mines. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, the proceeds of mines which are subject to taxes levied pursuant to chapter 362 of NRS.

[52:397:1955]

NRS 372.275 Fuel used to propel motor vehicle. There are exempted from the taxes imposed by this chapter the gross receipts from the sale and distribution of, and the storage, use or other consumption in this state of, any combustible gas, liquid or material of a kind used in an internal or combustion or diesel engine for the generation of power to propel a motor vehicle on the highways.

[55:397:1955]

NRS 372.280 Animals and plants intended for human consumption; feed; fertilizer. There are exempted from the taxes imposed by this chapter the gross receipts from sales of, and the storage, use or other consumption of:

1. Any form of animal life of a kind the products of which ordinarily constitute food for human consumption.

2. Feed for any form of animal life of a kind the products of which ordinarily constitute food for human consumption or are to be sold in the regular course of business.

3. Seeds and annual plants the products of which ordinarily constitute food for human consumption or are to be sold in the regular course of business.

4. Fertilizer to be applied to land the products of which are to be used as food for human consumption or sold in the regular course of business.

[56:397:1955]

NRS 372.2815 Farm machinery and equipment. [Effective January 1, 2003, if approved by the voters at the general election on November 5, 2002.]

1. There are exempted from the taxes imposed by this act the gross receipts from the sale of, and the storage, use or other consumption in a county of, farm machinery and equipment employed for the agricultural use of real property.

2. As used in this section:

(a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

(b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment. The term does not include:

(1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

(2) Machinery or equipment only incidentally employed for the agricultural use of real property.

(d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.

(Proposed by the 2001 legislature; effective January 1, 2003, if approved by the voters at the general election on November 5, 2002. See Statutes of Nevada 2001, p. 822.)

NRS 372.283 Prosthetic devices, orthotic appliances and certain supports and casts; appliances and supplies relating to ostomy; products for hemodialysis; medicine.

1. There are exempted from the taxes imposed by this act the gross receipts from sales and the storage, use or other consumption of:

(a) Prosthetic devices, orthotic appliances and ambulatory casts for human use, and other supports and casts if prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

(b) Appliances and supplies relating to an ostomy.

(d) Medicines:

(1) Prescribed for the treatment of a human being by a person authorized to prescribe medicines, and dispensed on a prescription filled by a registered pharmacist in accordance with law;

(2) Furnished by a licensed physician, dentist or podiatric physician to his own patient for the treatment of the patient;

(3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, dentist or podiatric physician; or

(4) Sold to a licensed physician, dentist, podiatric physician or hospital for the treatment of a human being.

2. As used in this section:

(a) “Medicine” means any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body and which is commonly recognized as a substance or preparation intended for such use. The term includes splints, bandages, pads, compresses and dressings.

(b) “Medicine” does not include:

(1) Any auditory, ophthalmic or ocular device or appliance.

(2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.

(3) Any alcoholic beverage, except where the alcohol merely provides a solution in the ordinary preparation of a medicine.

(4) Braces or supports, other than those prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

3. Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on a prescription within the meaning of this section.

[56.1:397:1955]—(Added in 1970. Proposed by the 1969 legislature; adopted by the people at the 1970 general election, effective January 1, 1971. See Statutes of Nevada 1969, p. 532. Amended in 1986. Proposed by the 1985 legislature; adopted by the people at the 1986 general election, effective January 1, 1987. See Statutes of Nevada 1985, p. 2028. Amended in 1996. Proposed by the 1995 legislature; adopted by the people at the1996 general election, effective January 1, 1997. See Statutes of Nevada 1995, p. 1007.)

NRS 372.284 Food for human consumption.

1. There are exempted from the taxes imposed by this chapter the gross receipts from sales and the storage, use or other consumption of food for human consumption.

2. “Food for human consumption” does not include:

(a) Alcoholic beverages.

(b) Pet foods.

(d) Prepared food intended for immediate consumption.

[56.2:397:1955]—(Added in 1979. Proposed by the 1979 legislature; adopted by the people at a special election on June 5, 1979, effective July 1, 1979. See Statutes of Nevada 1979, p. 409.)

NRS 372.2841 Basis for determining exemption of food for human consumption. In administering the provisions of NRS 372.284, the department shall determine the exemption from the gross receipts from the sale and storage, use or other consumption of food for human consumption on the basis of whether the food is intended for immediate consumption and not on the type of establishment where the food is sold.

(Added to NRS by 1999, 177)

NRS 372.285 Meals and food products sold to students or teachers by school, organization of students or parent-teacher association. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, meals and food products for human consumption served by public or private schools, school districts, student organizations and parent-teacher associations to the students or teachers of a school.

[57:397:1955]

NRS 372.287 Textbooks sold within University and Community College System of Nevada. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of textbooks sold within the University of Nevada System.

[63.1:397:1955]—(Added in 1991. Proposed by the 1989 legislature; adopted by the people at the 1990 general election, effective January 1, 1991. See Statutes of Nevada 1989, p. 821.)

NRS 372.290 Containers.

1. There are exempted from the taxes imposed by this chapter the gross receipts from sales of, and the storage, use or other consumption in this state of:

(a) Nonreturnable containers when sold without the contents to persons who place the contents in the container and sell the contents together with the container.

(b) Containers when sold with the contents if the sales price of the contents is not required to be included in the measure of the taxes imposed by this chapter.

(c) Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling.

2. As used in this section the term “returnable containers” means containers of a kind customarily returned by the buyer of the contents for reuse. All other containers are “nonreturnable containers.”

[58:397:1955]

NRS 372.295 Gas, electricity and water. There are exempted from the taxes imposed by this chapter the gross receipts from the sales, furnishing or service of, and the storage, use or other consumption in this state of, gas, electricity and water when delivered to consumers through mains, lines or pipes.

[59:397:1955]

NRS 372.300 Domestic fuels. There are exempted from the taxes imposed by this chapter the gross receipts from the sale, furnishing or service of, and the storage, use or other consumption in this state of, any matter used to produce domestic heat by burning, including, without limitation, wood, coal, petroleum and gas.

[59.1:397:1955]

NRS 372.305 Personal property used for performance of contract on public works executed before July 1, 1955. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, tangible personal property used for the performance of a contract on public works executed prior to July 1, 1955.

[60:397:1955]

NRS 372.310 Personal property used for performance of written contract executed before March 29, 1955. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, tangible personal property used for the performance of a written contract entered into prior to March 29, 1955.

[60.1:397:1955]

NRS 372.315 Newspapers. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in this state of, tangible personal property which becomes an ingredient or component part of any newspaper regularly issued at average intervals not exceeding 1 week and any such newspaper.

[61:397:1955]—(Amended in 1970. Proposed by the 1969 legislature; adopted by the people at the 1970 general election, effective January 1, 1971. See Statutes of Nevada 1969, p. 533.)

NRS 372.316 Manufactured homes and mobile homes.

1. There are exempted from the taxes imposed by this chapter an amount equal to 40 percent of the gross receipts from the sales and storage, use or other consumption of new manufactured homes and new mobile homes.

2. There are exempted from the taxes imposed by this chapter the gross receipts from the sales and storage, use or other consumption of used manufactured homes and used mobile homes for which taxes under this chapter have been paid as a result of a previous sale, storage, use or consumption.

3. As used in this section:

(a) “Manufactured home” has the meaning ascribed to it in NRS 489.113; and

(b) “Mobile home” has the meaning ascribed to it in NRS 489.120. The term does not include a motor home as defined in NRS 482.071.

[62:397:1955]—(Added in 1988. Proposed by the 1987 legislature; adopted by the people at the 1988 general election, effective November 23, 1988. See Statutes of Nevada 1987, p. 819.)

NRS 372.317 Aircraft and major components of aircraft. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of aircraft and major components of aircraft, such as engines and other components made for use only in aircraft, to an air carrier which:

1. Holds a certificate to engage in air transportation issued pursuant to 49 U.S.C. § 1371 and is not solely a charter air carrier or a supplemental air carrier as described in Title 49 of the United States Code; and

2. Maintains its central office in Nevada and bases a majority of its aircraft in Nevada.

[61.5:397:1955]—(Added in 1986. Proposed by the 1985 legislature; adopted by the people at the 1986 general election, effective January 1, 1987. See Statutes of Nevada 1985, p. 1441.)

1. There are exempted from the taxes imposed by this act the gross receipts from the sale, furnishing or service of, and the storage, use or other consumption in this state of:

(a) All engines and chassis of a professional racing vehicle;

(b) All parts and components that are used to replace or rebuild existing parts or components of any engine or chassis of a professional racing vehicle;

(c) All motor vehicles used by professional racing teams to transport professional racing vehicles or to transport parts or components of professional racing vehicles, including, without limitation, an engine and chassis of a professional racing vehicle; and

(d) All motor vehicles used by a professional racing team or sanctioning body to transport the business office of the professional racing team or sanctioning body or to transport a facility from which hospitality services are provided.

2. As used in this section:

(a) “Professional racing team” means a racing operation that qualifies for the taxable year as an activity engaged in for profit pursuant to the Internal Revenue Code, Title 26 of the United States Code.

(b) “Professional racing vehicle” means any motor vehicle which is used in a professional racing competition and which is owned, leased or operated by a professional racing team.

(c) “Sanctioning body” means an organization that establishes an annual schedule of professional racing events in which professional racing teams participate, grants rights to conduct such events and establishes and administers rules and regulations governing the persons who conduct or participate in such events.

(Proposed by the 2001 legislature; effective January 1, 2003, if approved by the voters at the general election on November 5, 2002. See Statutes of Nevada 2001, p. 737.)

NRS 372.320 Occasional sales. There are exempted from the taxes imposed by this chapter the gross receipts from occasional sales of tangible personal property and the storage, use or other consumption in this state of tangible personal property, the transfer of which to the purchaser is an occasional sale.

[63:397:1955]

NRS 372.325 Sale to United States, state or political subdivision. There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of any tangible personal property to:

1. The United States, its unincorporated agencies and instrumentalities.

2. Any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.

3. The State of Nevada, its unincorporated agencies and instrumentalities.

4. Any county, city, district or other political subdivision of this state.

[50:397:1955]—(Amended in 1996. Proposed by the 1995 legislature; adopted by the people at the 1996 general election, effective January 1, 1997. See Statutes of Nevada 1995, p. 1436.)

NRS 372.326 Personal property sold by or to nonprofit organization created for religious, charitable or educational purposes. There are exempted from the taxes imposed by this act the gross receipts from the sale of, and the storage, use or other consumption in this state of, any tangible personal property sold by or to a nonprofit organization created for religious, charitable or educational purposes. The legislature shall establish:

1. Standards for determining whether an organization is created for religious, charitable or educational purposes.

2. Procedures for administering the provisions of this section.

[50.1:397:1995]—(Added in 1996. Proposed by the 1995 legislature; adopted by the people at the 1996 general election, effective January 1, 1997. See Statutes of Nevada 1995, p. 1436.)

NRS 372.3261 Requirements for organization created for religious, charitable or educational purposes.

1. For the purposes of NRS 372.326, an organization is created for religious, charitable or educational purposes if it complies with the provisions of this section.

2. An organization is created for religious purposes if:

(a) It complies with the requirements set forth in subsection 5; and

(b) The sole or primary purpose of the organization is the operation of a church, synagogue or other place of religious worship at which nonprofit religious services and activities are regularly conducted. Such an organization includes, without limitation, an integrated auxiliary or affiliate of the organization, men’s, women’s or youth groups established by the organization, a school or mission society operated by the organization, an organization of local units of a church and a convention or association of churches.

3. An organization is created for charitable purposes if:

(a) It complies with the requirements set forth in subsection 5;

(b) The sole or primary purpose of the organization is to:

(1) Advance a public purpose, donate or render gratuitously or at a reduced rate a substantial portion of its services to the persons who are the subjects of its charitable services, and benefit a substantial and indefinite class of persons who are the legitimate subjects of charity; or

(2) Provide services that are otherwise required to be provided by a local government, this state or the Federal Government; and

4. An organization is created for educational purposes if:

(a) It complies with the requirements set forth in subsection 5; and

(b) The sole or primary purpose of the organization is to:

(1) Provide athletic, cultural or social activities for children;

(2) Provide displays or performances of the visual or performing arts to members of the general public;

(3) Provide instruction and disseminate information on subjects beneficial to the community;

(4) Operate a school, college or university located in this state that conducts regular classes and provides courses of study required for accreditation or licensing by the state board of education or the commission of postsecondary education, or for membership in the Northwest Association of Schools and Colleges;

(5) Serve as a local or state apprenticeship committee to advance programs of apprenticeship in this state; or

(6) Sponsor programs of apprenticeship in this state through a trust created pursuant to 29 U.S.C. § 186.

5. In addition to the requirements set forth in subsection 2, 3 or 4, an organization is created for religious, charitable or educational purposes if:

(a) No part of the net earnings of any such organization inures to the benefit of a private shareholder, individual or entity;

(b) The business of the organization is not conducted for profit;

(c) No substantial part of the business of the organization is devoted to the advocacy of any political principle or the defeat or passage of any state or federal legislation;

(d) The organization does not participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office; and

(e) Any property sold to the organization for which an exemption is claimed is used by the organization in this state in furtherance of the religious, charitable or educational purposes of the organization.

(Added to NRS by 1995, 1437; A 1999, 965)

NRS 372.327 Loan or donation to United States, state, political subdivision or religious or eleemosynary organization. There are exempted from the taxes imposed by this chapter on the storage, use or other consumption of tangible personal property any such property loaned or donated to:

1. The United States, its unincorporated agencies and instrumentalities.

2. Any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.

3. The State of Nevada, its unincorporated agencies and instrumentalities.

4. Any county, city, district or other political subdivision of this state.

5. Any organization created for religious, charitable or eleemosynary purposes, provided that no part of the net earnings of any such organization inures to the benefit of any private shareholder or individual.

[50.2:397:1955]—(Added in 1988. Proposed by the 1987 legislature; adopted by the people at the 1988 general election, effective January 1, 1989. See Statutes of Nevada 1987, p. 406.)

NRS 372.330 Sale to common carrier. There are exempted from the computation of the amount of the sales tax the gross receipts from sales of tangible personal property to a common carrier, shipped by the seller via the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside this state and the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a common carrier.

[65:397:1955]

NRS 372.335 Property shipped outside state pursuant to sales contract; delivery by vendor. There are exempted from the computation of the amount of the sales tax the gross receipts from any sale of tangible personal property which is shipped to a point outside this state pursuant to the contract of sale by delivery by the vendor to such point by means of:

1. Facilities operated by the vendor;

2. Delivery by the vendor to a carrier for shipment to a consignee at such point; or

3. Delivery by the vendor to a customs broker or forwarding agent for shipment outside this state.

[66:397:1955]

NRS 372.340 Personal property sold to or used by contractor who is constituent part of governmental, religious or charitable entity. The taxes imposed under this chapter apply to the sale of tangible personal property to and the storage, use or other consumption in this state of tangible personal property by a contractor for a governmental, religious or charitable entity which is otherwise exempted from the tax unless the contractor is a constituent part of that entity.

[51:397:1955]—(Amended in 1986. Proposed by the 1985 legislature; adopted by the people at the 1986 general election, effective January 1, 1987. See Statutes of Nevada 1985, p. 1563.)

NRS 372.343 Procedure for claim of exemption by nonprofit organization created for religious, charitable or educational purposes; regulations.

1. Any nonprofit organization created for religious, charitable or educational purposes that wishes to claim an exemption pursuant to NRS 372.326, must file an application with the department to obtain a letter of exemption. The application must be on a form and contain such information as is required by the department.

2. If the department determines that the organization is created for religious, charitable or educational purposes, it shall issue a letter of exemption to the organization. The letter of exemption expires 5 years after the date on which it is issued by the department. At least 90 days before the expiration of the letter of exemption, the department shall notify the organization to whom the letter was issued of the date on which the letter will expire. The organization may renew its letter of exemption for an additional 5 years by filing an application for renewal with the department. The application for renewal must be on a form and contain such information as is required by the department.

3. To claim an exemption pursuant to NRS 372.326 for the sale of tangible personal property to such an organization:

(a) The organization must give a copy of its letter of exemption to the retailer from whom the organization purchases the property; and

(b) The retailer must retain and present upon request a copy of the letter of exemption.

4. The department shall adopt such regulations as are necessary to carry out the provisions of this section.

(Added to NRS by 1995, 1438)

NRS 372.345 Use tax: Property on which sales tax paid. The storage, use or other consumption in this state of property, the gross receipts from the sale of which are required to be included in the measure of the sales tax, is exempted from the use tax.

[67:397:1955]

NRS 372.350 Liability of purchaser who uses property declared exempt for purpose not exempt. If a purchaser certifies in writing to a seller that the property purchased will be used in a manner or for a purpose entitling the seller to regard the gross receipts from the sale as exempted by this chapter from the computation of the amount of the sales tax, and uses the property in some other manner or for some other purpose, the purchaser shall be liable for payment of sales tax as if he were a retailer making a retail sale of the property at the time of such use, and the cost of the property to him shall be deemed the gross receipts from such retail sale.

[67.1:397:1955]

RETURNS AND PAYMENTS

NRS 372.354 Taxes collected to be held in separate account. A retailer shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the state.

(Added to NRS by 1995, 1067)

NRS 372.355 Date tax due. Except as provided in NRS 372.380, the taxes imposed by this chapter are payable to the department monthly on or before the last day of the month next succeeding each month.

(Added to NRS by 1979, 415; A 1981, 287)

NRS 372.360 Return: Time for filing; persons required to file; signatures.

1. On or before the last day of the month following each reporting period, a return for the preceding period must be filed with the department in such form as the department may prescribe.

2. For purposes of the sales tax a return must be filed by each seller. For purposes of the use tax a return must be filed by each retailer maintaining a place of business in the state and by each person purchasing tangible personal property, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax.

3. Returns must be signed by the person required to file the return or by his authorized agent but need not be verified by oath.

(Added to NRS by 1979, 416; A 1981, 287)

NRS 372.365 Contents of return; credit for uncollected sales price; violations.

1. For the purposes of the sales tax:

(a) The return must show the gross receipts of the seller during the preceding reporting period.

(b) The gross receipts must be segregated and reported separately for each county to which a sale of tangible personal property pertains.

(c) A sale pertains to the county in this state in which the tangible personal property is or will be delivered to the purchaser or his agent or designee.

2. For purposes of the use tax:

(a) In the case of a return filed by a retailer, the return must show the total sales price of the property purchased by him, the storage, use or consumption of which property became subject to the use tax during the preceding reporting period.

(b) The sales price must be segregated and reported separately for each county to which a purchase of tangible personal property pertains.

(c) If the property was brought into this state by the purchaser or his agent or designee, the sale pertains to the county in this state in which the property is or will be first used, stored or otherwise consumed. Otherwise, the sale pertains to the county in this state in which the property was delivered to the purchaser or his agent or designee.

3. In case of a return filed by a purchaser, the return must show the total sales price of the property purchased by him, the storage, use or consumption of which became subject to the use tax during the preceding reporting period and indicate the county in this state in which the property was first used, stored or consumed.

4. The return must also show the amount of the taxes for the period covered by the return and such other information as the department deems necessary for the proper administration of this chapter.

5. If a retailer:

(a) Is unable to collect all or part of the sales price of a sale, the amount of which was included in the gross receipts reported for a previous reporting period; and

(b) Has taken a deduction on his federal income tax return pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to collect,

he is entitled to receive a credit for the amount of sales tax paid on account of that uncollected sales price. The credit may be used against the amount of sales tax that the retailer is subsequently required to pay pursuant to this chapter.

6. If the Internal Revenue Service of the Department of the Treasury disallows a deduction described in paragraph (b) of subsection 5 and the retailer claimed a credit on a return for a previous reporting period pursuant to subsection 5, the retailer shall include the amount of that credit in the amount of taxes reported pursuant to subsection 4 in the first return filed with the department after the deduction is disallowed.

7. If a retailer collects all or part of the sales price for which he claimed a credit on a return for a previous reporting period pursuant to subsection 5, he shall include:

(a) The amount collected in the gross receipts reported pursuant to paragraph (a) of subsection 1; and

(b) The sales tax payable on the amount collected in the amount of taxes reported pursuant to subsection 4,

in the first return filed with the department after that collection.

8. Except as otherwise provided in subsection 9, upon determining that a retailer has filed a return which contains one or more violations of the provisions of this section, the department shall:

(a) For the first return of any retailer which contains one or more violations, issue a letter of warning to the retailer which provides an explanation of the violation or violations contained in the return.

(b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the tax which was not reported or was reported for the wrong county or $1,000, whichever is less.

(c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the tax which was not reported or was reported for the wrong county or $3,000, whichever is less.

9. For the purposes of subsection 8, if the first violation of this section by any retailer was determined by the department through an audit which covered more than one return of the retailer, the department shall treat all returns which were determined through the same audit to contain a violation or violations in the manner provided in paragraph (a) of subsection 8.

(Added to NRS by 1979, 416; A 1995, 1971, 2555; 1997, 647, 1104)

NRS 372.370 Reimbursement to taxpayer for collection of tax. The taxpayer shall deduct and withhold from the taxes otherwise due from him 1.25 percent of it to reimburse himself for the cost of collecting the tax.

(Added to NRS by 1979, 416; A 1981, 288; 1991, 2293)

NRS 372.375 Delivery of return; remittance. The person required to file the return shall deliver the return together with a remittance of the amount of the tax due to the department.

(Added to NRS by 1979, 416)

NRS 372.380 Periods for returns.

1. The reporting and payment period of a taxpayer whose taxable sales do not exceed $10,000 per month is a calendar quarter.

2. The department, if it deems this action necessary in order to insure payment to or facilitate the collection by the state of the amount of taxes, may require returns and payment of the amount of taxes for periods other than calendar months or quarters, depending upon the principal place of business of the seller, retailer or purchaser, as the case may be, or for other than monthly or quarterly periods.

(Added to NRS by 1979, 416; A 1981, 288, 909)

NRS 372.383 Presumption of payment: Certificate of ownership for used manufactured home or used mobile home.

1. If a certificate of ownership has been issued for a used manufactured home or used mobile home by the department of motor vehicles or the manufactured housing division of the department of business and industry, it is presumed that the taxes imposed by this chapter have been paid with respect to that manufactured home or mobile home.

2. As used in this section, “manufactured home” and “mobile home” have the meanings ascribed to them in NRS 372.316.

(Added to NRS by 1989, 960; A 1993, 1578; 2001, 2601)

NRS 372.385 Lease and rental receipts: Reporting; payment. For the purposes of the sales tax, gross receipts from rentals or leases of tangible personal property must be reported and the tax paid in accordance with such regulations as the department may prescribe.

(Added to NRS by 1979, 416)

NRS 372.390 Affixing and canceling of revenue stamps. The department, if it deems it necessary to insure the collection of the taxes, may provide by regulation for the collection of the taxes by the affixing and canceling of revenue stamps and may prescribe the form and method of the affixing and canceling.

(Added to NRS by 1979, 416)

NRS 372.395 Extension of time for filing return and paying tax. The department for good cause may extend for not to exceed 1 month the time for making any return or paying any amount required to be paid under this chapter.

(Added to NRS by 1979, 417; A 1985, 949)

NRS 372.397 Deferral of payment.

1. Payment of the tax on the sale of capital goods for a sales price of $100,000 or more may be deferred without interest in accordance with this section. If the sales price is:

(a) At least $100,000 but less than $350,000, the tax must be paid within 12 months.

(b) At least $350,000 but less than $600,000, the tax must be paid within 24 months.

(d) At least $850,000 but less than $1,000,000, the tax must be paid within 48 months.

(e) One million dollars or more, the tax must be paid within 60 months.

Payment must be made in each month at a rate which is at least sufficient to result in payment of the total obligation within the permitted period.

2. A person may apply to the commission on economic development for such a deferment. If a purchase is made outside of the state from a retailer who is not registered with the department, an application for a deferment must be made in advance or, if the purchase has been made, within 60 days after the date on which the tax is due. If a purchase is made in this state from a retailer who is registered with the department and to whom the tax is paid, an application must be made within 60 days after the payment of the tax. If the application for a deferment is approved, the taxpayer is eligible for a refund of the tax paid.

3. The commission on economic development shall certify the person’s eligibility for a deferment if:

(a) The purchase is consistent with the commission’s plan for industrial development and diversification; and

(b) The commission determines that the deferment is a significant factor in the decision of the person to locate or expand a business in this state.

Upon certification, the commission shall immediately forward the deferment to the Nevada tax commission.

4. Upon receipt of such a certification, the Nevada tax commission shall verify the sale, the price paid and the date of the sale and assign the applicable period for payment of the deferred tax. It may require security for the payment in an amount which does not exceed the amount of tax deferred.

5. The Nevada tax commission shall adopt regulations governing:

(a) The aggregation of related purchases which are made to expand a business, establish a new business, or renovate or replace capital equipment; and

(b) The period within which such purchases may be aggregated.

(Added to NRS by 1985, 2024; A 1989, 214)

NRS 372.398 Collection and payment of tax by responsible person; joint and several liability.

1. A responsible person who willfully fails to collect or pay to the department the tax imposed by this chapter or who willfully attempts to evade the payment of the tax is jointly and severally liable with the retailer for the tax owed plus interest and all applicable penalties. The responsible person shall pay the tax upon notice from the department that it is due.

2. As used in this section, “responsible person” includes:

(a) An officer or employee of a corporation; and

(b) A member or employee of a partnership or limited-liability company,

whose job or duty it is to collect, account for or pay to the department the tax imposed by this chapter.

(Added to NRS by 1995, 1067)

SECURITY

NRS 372.510 Authority of department; amount; sales; return of surplus.

1. The department, whenever it deems it necessary to insure compliance with this chapter, may require any person subject to the chapter to place with it such security as the department may determine. The department shall fix the amount of the security which, except as provided in subsection 2, may not be greater than twice the estimated average tax due quarterly of persons filing returns for quarterly periods or three times the estimated average tax due monthly of persons filing returns for monthly periods, determined in such manner as the department deems proper.

2. In the case of persons who are habitually delinquent in their obligations under this chapter, the amount of the security may not be greater than three times the average actual tax due quarterly of persons filing returns for quarterly periods or five times the average actual tax due monthly of persons filing returns for monthly periods.

3. The limitations provided in this section apply regardless of the type of security placed with the department.

4. The amount of the security may be increased or decreased by the department subject to the limitations provided in this section.

5. The department may sell the security at public auction if it becomes necessary to recover any tax or any amount required to be collected, interest or penalty due. Notice of the sale may be served upon the person who placed the security personally or by mail; if by mail, service must be made in the manner prescribed for service of a notice of a deficiency determination and must be addressed to the person at his address as it appears in the records of the department. Security in the form of a bearer bond issued by the United States or the State of Nevada which has a prevailing market price may be sold by the department at a private sale at a price not lower than the prevailing market price.

6. Upon any sale any surplus above the amounts due must be returned to the person who placed the security.

(Added to NRS by 1979, 420; A 1981, 289, 909; 1985, 1179)

OVERPAYMENTS AND REFUNDS

NRS 372.630 Certification of excess amount collected; credit and refund; overpayment of use tax by purchaser.

1. If the department determines that any amount, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the department shall set forth that fact in the records of the department and certify to the state board of examiners the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid. If approved by the state board of examiners, the excess amount collected or paid must be credited on any amounts then due from the person under this chapter, and the balance refunded to the person, or his successors, administrators or executors.

2. Any overpayment of the use tax by a purchaser to a retailer who is required to collect the tax and who gives the purchaser a receipt therefor pursuant to sections 34 to 38, inclusive, of the Sales and Use Tax Act (chapter 397, Statutes of Nevada 1955) and NRS 372.210 to 372.255, inclusive, must be credited or refunded by the state to the purchaser.

(Added to NRS by 1979, 426)

NRS 372.635 Limitations on claims for refund or credit. Except as otherwise provided in NRS 360.235 and 360.395:

1. No refund may be allowed unless a claim for it is filed with the department within 3 years after the last day of the month following the close of the period for which the overpayment was made.

2. No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the department within that period, or unless the credit relates to a period for which a waiver is given pursuant to NRS 360.355.

(Added to NRS by 1979, 427; A 1981, 289; 1983, 475; 1991, 1407; 1995, 1067)

NRS 372.640 Credit or refund for use tax: Reimbursement of vendor for sales tax. No credit or refund of any amount paid pursuant to sections 34 to 38, inclusive, of the Sales and Use Tax Act (chapter 397, Statutes of Nevada 1955) and NRS 372.210 to 372.255, inclusive, may be allowed on the ground that the storage, use or other consumption of the property is exempt under section 67 of the Sales and Use Tax Act, unless the person who paid the amount reimburses his vendor for the amount of the sales tax imposed upon his vendor with respect to the sale of the property and paid by the vendor to the state.

(Added to NRS by 1979, 427)

NRS 372.645 Form and contents of claim for credit or refund. Every claim must be in writing and must state the specific grounds upon which the claim is founded.

(Added to NRS by 1979, 427)

NRS 372.650 Failure to file claim constitutes waiver. Failure to file a claim within the time prescribed in NRS 372.635 constitutes a waiver of any demand against the state on account of overpayment.

(Added to NRS by 1979, 427)

NRS 372.655 Service of notice of disallowance of claim. Within 30 days after disallowing any claim in whole or in part, the department shall serve notice of its action on the claimant in the manner prescribed for service of notice of a deficiency determination.

(Added to NRS by 1979, 427)

NRS 372.660 Interest on overpayments.

1. Except as otherwise provided in NRS 360.320, interest must be paid upon any overpayment of any amount of tax at the rate of one-half of 1 percent per month from the last day of the calendar month following the period for which the overpayment was made. No refund or credit may be made of any interest imposed upon the person making the overpayment with respect to the amount being refunded or credited.

2. The interest must be paid:

(a) In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he has not already filed a claim, is notified by the department that a claim may be filed or the date upon which the claim is certified to the state board of examiners, whichever is earlier.

(b) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

(Added to NRS by 1979, 427; A 1981, 290; 1999, 2495)

NRS 372.665 Disallowance of interest. If the department determines that any overpayment has been made intentionally or by reason of carelessness, it may not allow any interest on it.

(Added to NRS by 1979, 428)

NRS 372.670 Injunction or other process to prevent collection of tax prohibited. No injunction, writ of mandate or other legal or equitable process may issue in any suit, action or proceeding in any court against this state or against any officer of the state to prevent or enjoin the collection under this chapter of any tax or any amount of tax required to be collected.

(Added to NRS by 1979, 428)

NRS 372.675 Action for refund: Claim as condition precedent. No suit or proceeding may be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been filed.

(Added to NRS by 1979, 428)

NRS 372.680 Action for refund: Time to sue; venue of action; waiver.

1. Within 90 days after a final decision upon a claim filed pursuant to this chapter is rendered by the Nevada tax commission, the claimant may bring an action against the department on the grounds set forth in the claim in a court of competent jurisdiction in Carson City, the county of this state where the claimant resides or maintains his principal place of business or a county in which any relevant proceedings were conducted by the department, for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

2. Failure to bring an action within the time specified constitutes a waiver of any demand against the state on account of alleged overpayments.

(Added to NRS by 1979, 428; A 1999, 2495)

NRS 372.685 Right of appeal on failure of department to mail notice of action on claim. If the department fails to mail notice of action on a claim within 6 months after the claim is filed, the claimant may consider the claim disallowed and file an appeal with a hearing officer within 45 days after the last day of the 6-month period. If the claimant is aggrieved by the decision of the hearing officer on appeal, he may, pursuant to the provisions of NRS 360.245, appeal the decision to the

Nevada tax commission. If the claimant is aggrieved by the decision of the commission on appeal, he may, within 45 days after the decision is rendered, bring an action against the department on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

(Added to NRS by 1979, 428; A 1999, 2495)

NRS 372.690 Judgment for plaintiff: Credits; refund of balance.

1. If judgment is rendered for the plaintiff, the amount of the judgment must first be credited as follows:

(a) If the judgment is for a refund of sales taxes, it must be credited on any sales or use tax due from the plaintiff.

(b) If the judgment is for a refund of use taxes, it must be credited on any use tax due from the plaintiff.

2. The balance of the judgment must be refunded to the plaintiff.

(Added to NRS by 1979, 428)

NRS 372.695 Allowance of interest. In any judgment, interest must be allowed at the rate of 6 percent per annum upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment, or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the department.

(Added to NRS by 1979, 429)

NRS 372.700 Standing to recover. A judgment may not be rendered in favor of the plaintiff in any action brought against the department to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.

(Added to NRS by 1979, 429)

NRS 372.705 Action to recover erroneous refund: Authority of department. The department may recover any refund or part of it which is erroneously made and any credit or part of it which is erroneously allowed in an action brought in a court of competent jurisdiction in Carson City or Clark County in the name of the State of Nevada.

(Added to NRS by 1979, 429; A 1999, 2495)

NRS 372.710 Action to recover erroneous refund: Venue. The action must be tried in Carson City or Clark County unless the court with the consent of the attorney general orders a change of place of trial.

(Added to NRS by 1979, 429; A 1999, 2496)

NRS 372.715 Action to recover erroneous refund: Prosecution by attorney general; applicable provisions. The attorney general shall prosecute the action, and the provisions of NRS, the Nevada Rules of Civil Procedure and the Nevada Rules of Appellate Procedure relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceedings.

(Added to NRS by 1979, 429)

NRS 372.720 Cancellation of illegal determination: Procedure; limitation.

1. If any amount in excess of $25 has been illegally determined, either by the person filing the return or by the department, the department shall certify this fact to the state board of examiners, and the latter shall authorize the cancellation of the amount upon the records of the department.

2. If an amount not exceeding $25 has been illegally determined, either by the person filing a return or by the department, the department, without certifying this fact to the state board of examiners, shall authorize the cancellation of the amount upon the records of the department.

(Added to NRS by 1979, 429)

ADMINISTRATION

NRS 372.725 Enforcement by department; adoption of regulations.

1. The department shall enforce the provisions of this chapter and may adopt regulations relating to the administration and enforcement of this chapter.

2. The department may prescribe the extent to which any regulation may be applied without retroactive effect.

(Added to NRS by 1979, 429)

NRS 372.726 Application of exemption for aircraft and major components of aircraft. On and after July 1, 1995, in administering the provisions of section 61.5 of chapter 397, Statutes of Nevada 1955, which is included in NRS as NRS 372.317, the department shall:

1. Not enforce any restriction on the applicability of the exemption provided therein which would violate the United States Constitution.

2. Apply the exemption to all types of sales to air carriers including both indirect sales to an entity which purchases the aircraft or major components of an aircraft for lease to and use by an air carrier that otherwise qualifies for the exemption and direct sales to air carriers.

(Added to NRS by 1995, 1465)

NRS 372.7263 Application of exemption for sale of personal property for shipment outside state to include sale of motor vehicle to certain nonresidents. [Effective through June 30, 2002.] In administering the provisions of NRS 372.335, the department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include the sale of a vehicle to a nonresident to whom a special movement permit has been issued by the department of motor vehicles pursuant to subsection 1 of NRS 482.3955.

(Added to NRS by 1997, 180; A 2001, 2601)

NRS 372.7263 Application of exemption for sale of personal property for shipment outside state to include sale to certain nonresidents of motor vehicles and farm machinery and equipment. [Effective July 1, 2002.] In administering the provisions of NRS 372.335, the department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include:

1. The sale of a vehicle to a nonresident to whom a special movement permit has been issued by the department of motor vehicles pursuant to subsection 1 of NRS 482.3955; and

2. The sale of farm machinery and equipment, as defined in NRS 374.286, to a nonresident who submits proof to the vendor that the farm machinery and equipment will be delivered out of state not later than 15 days after the sale.

(Added to NRS by 1997, 180; A 2001, 823, 2601, effective July 1, 2002)

NRS 372.7265 Calculation of tax imposed on retail sale of large appliances.

1. In administering the provisions of this chapter, the department shall calculate the amount of tax imposed on the retail sale of large appliances as follows:

(a) If the large appliance is sold separately or with installation or replacement services, or any combination thereof, the sales tax must be applied to the retail sales price of the large appliance to the customer. The sales tax does not apply to charges for or associated with installation and replacement if those charges are stated separately on the sales receipt or in the contract of sale.

(b) If the large appliance is sold as a constituent part of a contract for the construction or refurbishment of an improvement to real property or a mobile home, the sales tax must be paid by the contractor on the sales price of the large appliance to the contractor.

2. As used in this section:

(a) “Contract for the construction or refurbishment of an improvement to real property” means a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home, including the remodeling, altering or repairing of an improvement to real property or a mobile home. The term does not include the sale, delivery, installation or replacement of one or more large appliances not included in a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home.

(b) “Large appliance” includes, without limitation, a washing machine, dryer, range, stove, oven, dishwasher, refrigerator, freezer, ice maker and hot water dispenser.

(Added to NRS by 1997, 912)

NRS 372.727 Calculation of tax imposed on use or other consumption of meals provided by employer to employees. In administering the provisions of this chapter, the department shall, pursuant to NRS 372.185, calculate the amount of tax imposed on the use or other consumption of meals provided by an employer to his employees based on the cost of the specific components of those meals if:

1. The meals are furnished on a regular basis on the premises of the employer for the convenience of the employer; and

2. The employer does not charge the employees a specific fixed price per meal.

(Added to NRS by 1995, 1971)

NRS 372.728 Construction of “retailer maintaining place of business in this state.” In administering the provisions of this chapter, the department shall construe the term “retailer maintaining a place of business in this state” to include:

1. A retailer maintaining, occupying or using, permanently or temporarily, directly or indirectly, or through a subsidiary or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or place of storage, or any other place of business, in this state.

2. A retailer having any representative, agent, salesman, canvasser or solicitor operating in this state under the authority of the retailer or its subsidiary to sell, deliver or take orders for tangible personal property.

3. With respect to a lease, a retailer deriving rentals from a lease of tangible personal property situated in this state.

4. A retailer soliciting orders for tangible personal property through a system for shopping by means of telecommunication or television, using toll-free telephone numbers, which is intended by the retailer to be broadcast by cable television or other means of broadcasting to persons located in this state or through a website on the Internet or other electronic means of communication to provide solicitations to persons in this state.

5. A retailer who, pursuant to a contract with a broadcaster or publisher located in this state, solicits orders for tangible personal property by means of advertising which is disseminated primarily to persons located in this state and only secondarily to bordering jurisdictions.

6. A retailer soliciting orders for tangible personal property by mail or electronic facsimile if the solicitations are substantial and recurring and if the retailer benefits from any activities occurring in this state related to banking, financing, the collection of debts, telecommunication or marketing, or benefits from the location in this state of authorized facilities for installation, servicing or repairs.

7. A retailer owned or controlled by the same person who owns or controls a retailer who maintains a place of business in the same or a similar line of business in this state.

8. A retailer having a person operating under its trade name, pursuant to a franchise or license authorized by the retailer, if the person so operating is required to collect the tax pursuant to NRS 372.195.

9. A retailer who, pursuant to a contract with the operator of a system of cable television located in this state, solicits orders for tangible personal property by means of advertising which is transmitted or distributed over a system of cable television in this state.

(Added to NRS by 1989, 1506; A 2001, 1714)

NRS 372.7283 Application of NRS 372.325 to transfer of property to governmental entities pursuant to certain agreements. In administering the provisions of NRS 372.325, the department shall apply the exemption for the sale of tangible personal property to the State of Nevada, its unincorporated agencies and instrumentalities, to include all tangible personal property that is transferred for use by a state entity in accordance with an agreement executed pursuant to NRS 353.500 to 353.630, inclusive.

(Added to NRS by 2001, 2481)

NRS 372.7285 Application of NRS 372.325 to sale of certain medical devices to governmental entities.

1. In administering the provisions of NRS 372.325, the department shall apply the exemption to the sale of a medical device to a governmental entity that is exempt pursuant to that section without regard to whether the person using the medical device or the governmental entity that purchased the device is deemed to be the holder of title to the device if:

(a) The medical device was ordered or prescribed by a provider of health care, within his scope of practice, for use by the person to whom it is provided;

(b) The medical device is covered by Medicaid or Medicare; and

(c) The purchase of the medical device is made pursuant to a contract between the governmental entity that purchases the medical device and the person who sells the medical device to the governmental entity.

2. As used in this section:

(a) “Medicaid” means the program established pursuant to Title XIX of the Social Security Act, 42 U.S.C. §§ 1396 et seq., to provide assistance for part or all of the cost of medical care rendered on behalf of indigent persons.

(b) “Medicare” means the program of health insurance for aged and disabled persons established pursuant to Title XVIII of the Social Security Act, 42 U.S.C. §§ 1395 et seq.

(c) “Provider of health care” means a physician licensed pursuant to chapter 630, 630A or 633 of NRS, dentist, licensed nurse, dispensing optician, optometrist, practitioner of respiratory care, registered physical therapist, podiatric physician, licensed psychologist, licensed audiologist, licensed speech pathologist, licensed hearing aid specialist, licensed marriage and family therapist, chiropractor or doctor of Oriental medicine in any form.

(Added to NRS by 2001, 1294)

NRS 372.729 Taxation of photographers: Furnishing of proofs considered to be rendition of service. In administering the provisions of this chapter, the department shall not consider the furnishing of one or more proofs by a photographer to a customer as a sale of tangible personal property but rather as part of the rendition of the photographer’s service, whether or not a separate charge is made for furnishing the proof.

(Added to NRS by 1999, 1262)

NRS 372.730 Employment of accountants, investigators and other persons; delegation of authority. The department may employ accountants, auditors, investigators, assistants and clerks necessary for the efficient administration of this chapter, and may delegate authority to its representatives to conduct hearings, adopt regulations or perform any other duties imposed by this chapter.

(Added to NRS by 1979, 429)

NRS 372.733 Certain broadcasters, printers, advertising firms, distributors and publishers deemed agents and retailers maintaining place of business in this state.

1. Notwithstanding any other provision of law, any broadcaster, printer, outdoor advertising firm, advertising distributor or publisher which broadcasts, publishes, displays or distributes paid commercial advertising in this state which is intended to be disseminated primarily to persons located in this state and is only secondarily disseminated to bordering jurisdictions, including advertising appearing exclusively in a Nevada edition or section of a national publication, must be regarded, for the purposes set forth in subsection 2 only, as the agent of the person or entity placing the advertisement, and as a retailer maintaining a place of business in this state.

2. The agency created by this section is solely for the purpose of the proper administration of this chapter, to prevent evasion of the use tax and the duty to collect the use tax, and to provide a presence in Nevada for the collection of the use tax by and from advertisers and sellers who do not otherwise maintain a place of business in this state. The agent has no responsibility to report, or liability to pay, any tax imposed under this chapter and is not restricted by the provisions of this chapter from accepting advertisements from advertisers or sellers who do not otherwise maintain a place of business in this state.

(Added to NRS by 1989, 1507)

NRS 372.734 Certain broadcasting activities not taxable transactions. In administering the provisions of this chapter, the department shall not consider the activities of persons that are directly related to the process of transmitting radio, television, cable television or data signals, including the transmission of news or information by data signal, the transmission of signals from one broadcaster to another and from a broadcaster to a member of the public and including the production and airing of any form of speech or broadcast by radio or television, whether or not compensation is provided to the broadcaster in connection therewith, to be transactions that are taxable pursuant to the provisions of this chapter.

(Added to NRS by 1993, 2744)

NRS 372.735 Records to be kept by sellers, retailers and others.

1. Every seller, every retailer, and every person storing, using or otherwise consuming in this state tangible personal property purchased from a retailer shall keep records, receipts, invoices and other pertinent papers in such form as the department may require.

2. Every seller, retailer or person who files the returns required under this chapter shall keep the records for not less than 4 years from their making unless the department in writing sooner authorizes their destruction.

3. Every seller, retailer or person who fails to file the returns required under this chapter shall keep the records for not less than 8 years from their making unless the department in writing sooner authorizes their destruction.

(Added to NRS by 1979, 430)

NRS 372.740 Examination of records; investigation of business; taxpayer to pay expenses of department for traveling out of state.

1. The department, or any person authorized in writing by it, may examine the books, papers, records and equipment of any person selling tangible personal property and any person liable for the use tax and may investigate the character of the business of the person to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid.

2. Any person selling or purchasing tangible personal property in this state who is required to obtain a permit pursuant to NRS 372.125 or to file a return pursuant to subsection 2 of NRS 372.360, and who keeps outside of this state his records, receipts, invoices and other documents relating to sales he has made or the use tax due this state, shall pay to the department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the state for each day or fraction thereof during which an employee of the department is engaged in examining those documents, plus any other actual expenses incurred by the employee while he is absent from his regular place of employment to examine those documents.

(Added to NRS by 1979, 430; A 1989, 392; 1993, 101)

NRS 372.745 Reports for administering use tax: Contents. In its administration of the use tax, the department may require the filing of reports by any person or class of persons having in his or their possession or custody information relating to sales of tangible personal property, the storage, use or other consumption of which is subject to the tax. The report must:

1. Be filed when the department requires.

2. Set forth the names and addresses of purchasers of the tangible personal property, the sales price of the property, the date of sale, and such other information as the department may require.

(Added to NRS by 1979, 430)

NRS 372.750 Disclosure of information unlawful; exceptions.

1. Except as otherwise provided in this section, it is a misdemeanor for any member of the tax commission or officer, agent or employee of the department to make known in any manner whatever the business affairs, operations or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of income, profits, losses, expenditures or any particular of them, set forth or disclosed in any return, or to permit any return or copy of a return, or any book containing any abstract or particulars of it to be seen or examined by any person not connected with the department.

2. The tax commission may agree with any county fair and recreation board or the governing body of any county, city or town for the continuing exchange of information concerning taxpayers.

3. The governor may, by general or special order, authorize the examination of the records maintained by the department under this chapter by other state officers, by tax officers of another state, by the Federal Government, if a reciprocal arrangement exists, or by any other person. The information so obtained may not be made public except to the extent and in the manner that the order may authorize that it be made public.

4. Upon written request made by a public officer of a local government, the executive director shall furnish from the records of the department, the name and address of the owner of any seller or retailer who must file a return with the department. The request must set forth the social security number of the owner of the seller or retailer about which the request is made and contain a statement signed by the proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. The information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to that local government. The executive director may charge a reasonable fee for the cost of providing the requested information.

5. Successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties.

6. Relevant information may be disclosed as evidence in an appeal by the taxpayer from a determination of tax due.

7. At any time after a determination, decision or order of the executive director or other officer of the department imposing upon a person a penalty for fraud or intent to evade the tax imposed by this chapter on the sale, storage, use or other consumption of any vehicle, vessel or aircraft becomes final or is affirmed by the commission, any member of the commission or officer, agent or employee of the department may publicly disclose the identity of that person and the amount of tax assessed and penalties imposed against him.

(Added to NRS by 1979, 430; A 1983, 316, 763; 1989, 1160; 1995, 1068, 1578; 1999, 2496)

PENALTIES

NRS 372.755 Failure to make return or furnish data. Any retailer or other person who fails or refuses to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the department, or who renders a false or fraudulent return shall be fined not more than $500 for each offense.

(Added to NRS by 1979, 431)

NRS 372.760 False or fraudulent return. Any person required to make, render, sign or verify any report who makes any false or fraudulent return, with intent to defeat or evade the determination of an amount due required by law to be made, shall for each offense be fined not less than $300 nor more than $5,000, or be imprisoned for not more than 1 year in the county jail, or be punished by both fine and imprisonment.

(Added to NRS by 1979, 431)

NRS 372.765 Other violations of chapter. Any violation of this chapter, except as otherwise provided, is a misdemeanor.

(Added to NRS by 1979, 431)

NRS 372.770 Statute of limitations. Any prosecution for violation of any of the penal provisions of this chapter must be instituted within 3 years after the commission of the offense.

(Added to NRS by 1979, 431)

NRS 372.775 Application of doctrine of res judicata. In the determination of any case arising under this chapter, the rule of res judicata is applicable only if the liability involved is for the same period as was involved in another case previously determined.

(Added to NRS by 1979, 431; A 1981, 290)

MISCELLANEOUS PROVISIONS

NRS 372.780 Sales and use tax account: Remittances; deposits.

1. All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the state under this chapter must be paid to the department in the form of remittances payable to the department.

2. The department shall deposit the payments in the state treasury to the credit of the sales and use tax account in the state general fund.

(Added to NRS by 1979, 431; A 1981, 258)

NRS 372.785 Sales and use tax account: Refunds. The money in the sales and use tax account may, upon order of the state controller, be used for refunds under this chapter.

(Added to NRS by 1979, 431; A 1981, 259)

NRS 372.790 Remedies of state are cumulative. The remedies of the state provided for in this chapter are cumulative, and no action taken by the department or the attorney general constitutes an election by the state to pursue any remedy to the exclusion of any other remedy for which provision is made in this chapter.

(Added to NRS by 1979, 431)

NRS 372.795 Department’s authority. In all proceedings under this chapter the department may act for and on behalf of the people of the State of Nevada.

(Added to NRS by 1979, 431)

NRS 372.800 Indian reservations and colonies: Imposition and collection of sales tax.

1. The governing body of an Indian reservation or Indian colony may impose a tax on the privilege of selling tangible personal property at retail on the reservation or colony.

2. If a sales tax is imposed, the governing body may establish procedures for collecting the tax from any person authorized to do business on the reservation or colony.

(Added to NRS by 1989, 1109)

NRS 372.805 Indian reservations and colonies: Restriction on collection of tax by department. The department of taxation shall not collect the tax imposed by this chapter on the sale of tangible personal property on an Indian reservation or Indian colony on which a tax has been imposed pursuant to NRS 372.800 if:

1. The tax is equal to or greater than the tax imposed by this chapter; and

2. A copy of an approved tribal tax ordinance imposing the tax has been filed with the department of taxation.

(Added to NRS by 1989, 1109)

NRS 372.810 Rights of Indians not abridged. Nothing in this chapter abridges the rights of any Indian, individual or tribe, or infringes upon the sovereignty of any Indian tribe, organized under the Indian Reorganization Act (25 U.S.C. §§ 476 et seq.).

(Added to NRS by 1989, 1109)

NRS 372.815 Strict construction of certain provisions of chapter. The imposition of taxes by this chapter, the categories of transactions upon which taxes are imposed and the specification of exemptions are exclusive. The tax commission and the department shall not construe any provision of this chapter to authorize the imposition of a tax imposed by this chapter upon any transaction not expressly made taxable by this chapter.

(Added to NRS by 1999, 1311)