US Laws, Codes, Statutes & Cases

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of the Sales and Use Tax Act, sections 22 to 33, inclusive, 39 to 47.1, inclusive, and 68 to 153.2, inclusive, were repealed by referendum at a special election on June 5, 1979.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. [Effective through December 31, 2006, and after that date if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is not approved by the voters at the 2006 general election.]

NRS 372.025            “Gross receipts” defined. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

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. [Effective through December 31, 2006, and after that date if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is not approved by the voters at the 2006 general election.]

NRS 372.065            “Sales price” defined. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

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.

NRS 372.102            “Vehicle” defined. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

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            Provisions required in certain purchasing contracts of State or political subdivision.

NRS 372.125            Registration or permit required to engage in or conduct business as seller; application for permit.

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; registration of certain businesses when obtaining business license.

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 372.281            Farm machinery and equipment. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

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 Nevada System of Higher Education.

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 372.320            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 372.345            Use tax: Property on which sales tax paid.

NRS 372.347            Claim of exemption: General requirements; liability for improper claim.

NRS 372.348            Claim of exemption: Nonprofit organization created for religious, charitable or educational purposes.

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; combination with certain other returns; persons required to file; signatures.

NRS 372.365            Contents of return; violations.

NRS 372.366            Computation of amount of taxes due.

NRS 372.368            Deduction of certain bad debts from taxable sales; violations.

NRS 372.370            Reimbursement 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 cancelling 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. [Repealed.]

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 372.723            Application of chapter 360B of NRS.

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 certain sales of motor vehicles, farm machinery and equipment and vessels. [Effective through December 31, 2006, and after that date if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is not approved by the voters at the 2006 general election.]

NRS 372.7263          Application of exemption for sale of personal property for shipment outside State to certain sales of motor vehicles, farm machinery and equipment and vessels. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

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 372.7275          Application of use tax to certain property acquired free of charge at convention, trade show or other public event.

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

NRS 372.7281          Application of NRS 372.325 to sale of property to certain members of Nevada National Guard and their families.

NRS 372.7282          Claim of exemption by certain members of Nevada National Guard and their families.

NRS 372.7283          Application of NRS 372.325 to transfer of property pursuant to certain agreements and to transfer of motor vehicle.

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

NRS 372.7287          Application of NRS 372.326 to transfer of motor vehicle.

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            Examinations and investigations; payment of expenses for examination of records outside 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.

_________

 

      (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.  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. [Effective through December 31, 2006, and after that date if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is not approved by the voters at the 2006 general election.]

      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.

      (c) The cost of transportation of the property prior to its sale to the purchaser.

      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.

      (c) Any amount for which credit is allowed by the seller to the purchaser.

      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.

      (c) The price received for labor or services used in installing or applying the property sold.

      (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 372.025  “Gross receipts” defined. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

      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 before 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.

      (c) The cost of transportation of the property before its sale to the purchaser.

      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.

      (c) Any amount for which credit is allowed by the seller to the purchaser.

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

      (a) Cash discounts allowed and taken on sales.

      (b) The sale price of property returned by customers when the full sale price is refunded either in cash or credit, but this exclusion does 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.

      (c) The price received for labor or services used in installing or applying the property sold.

      (d) The amount of any tax, not including 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.

      (e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle.

      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]—(Amendment proposed by the 2005 Legislature; effective January 1, 2007, if approved by the voters at the 2006 general election. See Statutes of Nevada 2005, p. 2494)

      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.

      (c) The furnishing, preparing, or serving for a consideration of food, meals or drinks.

      (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. [Effective through December 31, 2006, and after that date if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is not approved by the voters at the 2006 general election.]

      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.

      (c) The cost of transportation of the property prior to its purchase.

      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.

      (c) The amount charged for labor or services rendered in installing or applying the property sold.

      (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.

      [11:397:1955]

      NRS 372.065  “Sales price” defined. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

      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.

      (c) The cost of transportation of the property before its purchase.

      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, except that this exclusion does 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.

      (c) The amount charged for labor or services rendered in installing or applying the property sold.

      (d) The amount of any tax, not including 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.

      (e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle.

      [11:397:1955]—(Amendment proposed by the 2005 Legislature; effective January 1, 2007, if approved by the voters at the 2006 general election. See Statutes of Nevada 2005, p. 2493)

      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]

      NRS 372.102  “Vehicle” defined. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]  “Vehicle” has the meaning ascribed to it in NRS 482.135.

      (Amendment proposed by the 2005 Legislature; effective January 1, 2007, if approved by the voters at the 2006 general election. See Statutes of Nevada 2005, p. 2493)

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  Provisions required in certain purchasing contracts of State or political subdivision.

      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 or registered pursuant to NRS 360B.200,

Ê the contract must include a provision requiring the person to obtain a permit pursuant to NRS 372.125 or to register pursuant to NRS 360B.200, and 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 a 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; A 2003, 2364; 2005, 1778)

      NRS 372.125  Registration or permit required to engage in or conduct business as seller; application for permit.

      1.  Every person desiring to engage in or conduct business as a seller within this State must register with the Department pursuant to NRS 360B.200 or 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.

      (c) Set forth other information which the Department may require.

      3.  The application must be signed by:

      (a) The owner if he is a natural person;

      (b) A member or partner if the seller is an association or partnership; or

      (c) An executive officer or some person specifically authorized to sign the application if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.

      (Added to NRS by 1979, 412; A 2003, 2364; 2005, 1778)

      NRS 372.130  Fee for permit.  At the time of making an application, the applicant must pay to the Department a permit fee of $5 for each permit.

      (Added to NRS by 1979, 412; A 2003, 20th Special Session, 20)

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

      1.  Except as otherwise provided in NRS 360.205 and 372.145, 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; 2005, 295)

      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 $5 for the renewal or issuance of a permit.

      (Added to NRS by 1979, 413; A 2003, 20th Special Session, 20)

      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:

      1.  Is engaged in the business of selling tangible personal property;

      2.  Is registered pursuant to NRS 360B.200 or holds a permit issued pursuant to NRS 372.135; and

      3.  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; A 2003, 2365; 2005, 1778)

      NRS 372.165  Form and contents of resale certificate.

      1.  A resale certificate must:

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

      (b) Indicate that the purchaser is registered pursuant to NRS 360B.200 or contain the number of the permit issued to the purchaser pursuant to NRS 372.135.

      (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; A 2003, 2365; 2005, 1778)

      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; registration of certain businesses when obtaining business license.

      1.  Every retailer who sells tangible personal property for storage, use or other consumption in this State shall register with the Department and give:

      (a) The name and address of all agents operating in this State.

      (b) The location of all distribution or sales houses or offices or other places of business in this State.

      (c) Such other information as the Department may require.

      2.  Every business that purchases tangible personal property for storage, use or other consumption in this State shall, at the time the business obtains a business license pursuant to NRS 360.780, register with the Department on a form prescribed by the Department. As used in this section, “business” has the meaning ascribed to it in NRS 360.765.

      (Added to NRS by 1979, 414; A 2003, 20th Special Session, 20)

      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:

      1.  Is engaged in the business of selling tangible personal property;

      2.  Is registered pursuant to NRS 360B.200 or holds a permit issued pursuant to NRS 372.135; and

      3.  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; A 2003, 2365; 2005, 1778)

      NRS 372.235  Form and contents of resale certificate.

      1.  A resale certificate must:

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

      (b) Indicate that the purchaser is registered pursuant to NRS 360B.200 or contain the number of the permit issued to the purchaser pursuant to NRS 372.135.

      (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; A 2003, 2365; 2005, 1778)

      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 372.281  Farm machinery and equipment. [Effective January 1, 2007, if the proposal to amend the Sales and Use Tax Act of 1955 submitted pursuant to chapter 484, Statutes of Nevada 2005, is approved by the voters at the 2006 general election.]

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

      2.  As used in this section:

      (a) “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 agricultural purposes.

      (b) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

      (c) “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.

      (Amendment proposed by the 2005 Legislature; effective January 1, 2007, if approved by the voters at the 2006 general election. See Statutes of Nevada 2005, p. 2493)

      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.

      (c) Products for hemodialysis.

      (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 the 1996 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.

      (c) Tonics and vitamins.

      (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 Nevada System of Higher Education.  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.)

      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;

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

             (3) Operate a hospital or medical facility licensed pursuant to chapter 449 or 450 of NRS; and

      (c) The organization is operating in this State.

      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 on Postsecondary Education, or for membership in the Northwest Association of Schools and of Colleges and Universities;

             (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; 2003, 1283)

      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 372.345  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 372.347  Claim of exemption: General requirements; liability for improper claim.

      1.  If a purchaser wishes to claim an exemption from the taxes imposed by this chapter, the retailer shall obtain such identifying information from the purchaser at the time of sale as is required by the Department.

      2.  The Department shall, to the extent feasible, establish an electronic system for submitting a request for an exemption. A purchaser is not required to provide a signature to claim an exemption if the request is submitted electronically.

      3.  The Department may establish a system whereby a purchaser who is exempt from the payment of the taxes imposed by this chapter is issued an identification number that can be presented to the retailer at the time of sale.

      4.  A retailer shall maintain such records of exempt transactions as are required by the Department.

      5.  Except as otherwise provided in this subsection, a retailer who complies with the provisions of this section is not liable for the payment of any tax imposed by this chapter if the purchaser improperly claims an exemption. If the purchaser improperly claims an exemption, the purchaser is liable for the payment of the tax. The provisions of this subsection do not apply if the retailer fraudulently fails to collect the tax or solicits a purchaser to participate in an unlawful claim of an exemption.

      (Added to NRS by 2003, 2362; A 2005, 1778)

      NRS 372.348  Claim of exemption: Nonprofit organization created for religious, charitable or educational purposes.

      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)—(Substituted in revision for NRS 372.343)

      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 otherwise provided in NRS 372.380 or required by the Department pursuant to NRS 360B.200, the taxes imposed by this chapter are due and 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; 2003, 2365; 2005, 1755, 1778)

      NRS 372.360  Return: Time for filing; combination with certain other returns; persons required to file; signatures.  Except as otherwise required by the Department pursuant to NRS 360B.200:

      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. Any return required to be filed by this section must be combined with any return required to be filed pursuant to the provisions of chapter 374 of NRS.

      2.  For purposes of:

      (a) The sales tax, a return must be filed by each seller.

      (b) 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.

      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; 2003, 2366; 2005, 1778)

      NRS 372.365  Contents of return; violations.

      1.  Except as otherwise required by the Department pursuant to NRS 360B.200 or provided in