2005 Nevada Revised Statutes - Chapter 360B — Sales and Use Tax Administration

CHAPTER 360B - SALES AND USE TAXADMINISTRATION

GENERAL PROVISIONS

NRS 360B.010 Short title.

NRS 360B.020 Legislative findingsand declaration.

NRS 360B.030 Definitions.

NRS 360B.040 Agreement defined.

NRS 360B.050 Certified automatedsystem defined.

NRS 360B.060 Certified serviceprovider defined.

NRS 360B.063 Purchaser defined.

NRS 360B.065 Registered sellerdefined.

NRS 360B.067 Retail sale defined.

NRS 360B.070 Sales tax defined.

NRS 360B.080 Seller defined.

NRS 360B.090 State defined.

NRS 360B.095 Tangible personalproperty defined.

NRS 360B.100 Use tax defined.

NRS 360B.110 Dutiesof Nevada Tax Commission.

STREAMLINED SALES AND USE TAX AGREEMENT

Membership in Agreement

NRS 360B.120 Prerequisitesto membership.

NRS 360B.150 Beneficiariesof Agreement; causes of action or defenses relating to Agreement; effect ofAgreement on state law. [Effective on the date this state becomes a member ofthe Streamlined Sales and Use Tax Agreement.]

NRS 360B.160 Natureand purpose of Agreement.

NRS 360B.170 Effectof Agreement and adoption thereof on state law; implementation of conditions ofAgreement.

 

Implementation of Agreement

NRS 360B.200 Establishmentand maintenance of registration system for sellers; rights and duties ofregistering seller.

NRS 360B.210 Liabilityof certified service provider as agent of seller; liability and auditing ofseller who contracts with certified service provider; system checks of sellers.

NRS 360B.220 Responsibilityand liability of person that provides and seller that uses certified automatedsystem; liability of seller for proprietary system.

NRS 360B.230 Postingby Department of certain information on website or other Internet site; noticeof changes to posted information.

NRS 360B.240 Maintenanceby Department and use of list denoting tax rates and taxing jurisdictions foreach zip code in state.

NRS 360B.250 Waiverof liability of registered seller or certified service provider for collectionof incorrect amount of tax under certain circumstances.

NRS 360B.255 Applicationof tax to shipment of tangible personal property that includes both taxable andexempt property.

NRS 360B.260 Directpay permits: Use; application for permit.

NRS 360B.270 Purchasesof tangible personal property that will be used digitally or electronically inmultiple jurisdictions.

NRS 360B.280 Purchasesof direct mail.

NRS 360B.290 Contentsof document given to purchaser indicating sales price of tangible personalproperty.

NRS 360B.300 Paymentof tax due on weekend or legal holiday.

NRS 360B.310 Effectivedate of change in tax rate resulting from change in boundary of localgovernment.

NRS 360B.320 Personallyidentifiable information: Notification of practices of State; retention andaccess; enforcement of provisions.

NRS 360B.330 Actionby purchaser against seller for refund of sales or use tax erroneously orillegally collected by seller.

 

Sources of Transactions

NRS 360B.350 Definitions.

NRS 360B.355 Applicabilityof provisions.

NRS 360B.360 Retailsale of tangible personal property generally.

NRS 360B.365 Leaseor rental of tangible personal property generally.

NRS 360B.370 Leaseor rental of motor vehicles, trailers, semitrailers or aircraft that do notconstitute transportation equipment.

NRS 360B.375 Leaseor rental of transportation equipment.

 

Construction of Common Terms

NRS 360B.400 Dutyof Department.

NRS 360B.405 Alcoholicbeverages construed.

NRS 360B.410 Computerconstrued.

NRS 360B.415 Computersoftware construed.

NRS 360B.420 Deliveredelectronically construed.

NRS 360B.425 Deliverycharges construed.

NRS 360B.430 Dietarysupplement construed.

NRS 360B.435 Drugconstrued.

NRS 360B.440 Electronicconstrued.

NRS 360B.445 Foodand food ingredients construed.

NRS 360B.450 Leaseor rental construed.

NRS 360B.455 Medicineconstrued.

NRS 360B.460 Preparedfood construed.

NRS 360B.465 Prescriptionconstrued.

NRS 360B.470 Prewrittencomputer software construed.

NRS 360B.475 Prostheticdevice construed.

NRS 360B.480 Salesprice construed.

NRS 360B.485 Tangiblepersonal property construed.

NRS 360B.490 Tobaccoconstrued.

NRS 360B.495 Tonicsand vitamins construed.

_________

GENERAL PROVISIONS

NRS 360B.010 Shorttitle. This chapter shall be known as theSimplified Sales and Use Tax Administration Act.

(Added to NRS by 2001, 1711; A 2005, 1772)

NRS 360B.020 Legislativefindings and declaration. The Legislaturehereby finds and declares that:

1. A simplified sales and use tax system will reduce,and over time eliminate, the burden and cost for all vendors to collect thisstates sales and use tax.

2. This state should enter into an agreement with one ormore states to simplify and modernize sales and use tax administration toreduce substantially the burden of tax compliance for all sellers and for alltypes of commerce.

3. This state should participate in multistatediscussions to review and, if necessary, amend the terms of the agreement tosimplify and modernize sales and use tax administration to reduce substantiallythe burden of tax compliance for all sellers and for all types of commerce.

(Added to NRS by 2001, 1711)

NRS 360B.030 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS360B.040 to 360B.100, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 1711; A 2003, 2358; 2005, 1778)

NRS 360B.040 Agreementdefined. Agreement means the StreamlinedSales and Use Tax Agreement.

(Added to NRS by 2001, 1711)

NRS 360B.050 Certifiedautomated system defined. Certified automatedsystem means software certified jointly by the states that are signatories tothe Agreement to calculate the tax imposed by each jurisdiction on atransaction, determine the amount of tax to remit to the appropriate state andmaintain a record of the transaction.

(Added to NRS by 2001, 1711)

NRS 360B.060 Certifiedservice provider defined. Certified serviceprovider means an agent certified jointly by the states that are signatoriesto the Agreement to perform all of a sellers sales tax functions.

(Added to NRS by 2001, 1711)

NRS 360B.063 Purchaserdefined. Purchaser means a person to whom asale of tangible personal property is made.

(Added to NRS by 2003, 2352; A 2005, 1778)

NRS 360B.065 Registeredseller defined. Registered seller means aseller registered pursuant to NRS 360B.200.

(Added to NRS by 2003, 2352; A 2005, 1778)

NRS 360B.067 Retailsale defined. Retail sale means any sale,lease or rental for any purpose other than for resale, sublease or subrent.

(Added to NRS by 2003, 2352; A 2005, 1778)

NRS 360B.070 Salestax defined. Sales tax means the tax leviedby section 19 of chapter 397, Statutes of Nevada 1955, at page 766, and anysimilar tax authorized by or pursuant to a specific statute or speciallegislative act of this state or the laws of another state that is a member ofthe Agreement.

(Added to NRS by 2001, 1712; A 2003, 2358; 2005, 1778)

NRS 360B.080 Sellerdefined. Seller means any person makingsales, leases or rentals of tangible personal property.

(Added to NRS by 2001, 1712; A 2003, 2359; 2005, 1778)

NRS 360B.090 Statedefined. State means any state of the UnitedStates and the District of Columbia.

(Added to NRS by 2001, 1712)

NRS 360B.095 Tangiblepersonal property defined. Tangible personalproperty means personal property which may be seen, weighed, measured, felt ortouched, or which is in any other manner perceptible to the senses.

(Added to NRS by 2003, 2352; A 2005, 1778)

NRS 360B.100 Usetax defined. Use tax means the tax leviedby section 34 of chapter 397, Statutes of Nevada 1955, at page 769, as amendedby section 3 of chapter 513, Statutes of Nevada 1985, at page 1562, and anysimilar tax authorized by or pursuant to a specific statute or speciallegislative act of this state or the laws of another state that is a member ofthe Agreement.

(Added to NRS by 2001, 1712; A 2003, 2359; 2005, 1778)

NRS 360B.110 Dutiesof Nevada Tax Commission. The Nevada TaxCommission shall:

1. Except as otherwise provided in NRS 360B.120, enter into the Agreement.

2. Act jointly with other states that are members ofthe Agreement to establish standards for:

(a) Certification of a certified service provider;

(b) A certified automated system;

(c) Performance of multistate sellers; and

(d) An address-based system for determining theapplicable sales and use taxes.

3. Take all other actions reasonably required toimplement the provisions of this chapter and the provisions of the Agreement,including, without limitation, the:

(a) Adoption of regulations to carry out the provisionsof this chapter and the provisions of the Agreement; and

(b) Procurement, jointly with other member states, ofgoods and services.

4. Represent, or have its designee represent, theState of Nevada before the other states that are signatories to the Agreement.

5. Designate not more than four delegates, who may bemembers of the Commission, to represent the State of Nevada for the purposes ofreviewing or amending the Agreement.

(Added to NRS by 2001, 1712; A 2003, 2359; 2005, 1778)

STREAMLINED SALES AND USE TAX AGREEMENT

Membership in Agreement

NRS 360B.120 Prerequisitesto membership.

1. The Nevada Tax Commission shall not enter into theAgreement unless the Agreement:

(a) Sets restrictions to limit over time the number ofstate rates.

(b) Establishes uniform standards for:

(1) The sourcing of transactions to taxingjurisdictions;

(2) The administration of exempt sales; and

(3) Sales and use tax returns and remittances.

(c) Provides a central, electronic registration systemthat allows a seller to register to collect and remit sales and use taxes forall signatory states.

(d) Provides that registration with the central,electronic registration system and the collection of sales and use taxes in thesignatory states will not be used as a factor in determining whether the sellerhas nexus with a state for any tax.

(e) Provides for reduction of the burdens of complyingwith local sales and use taxes through the following:

(1) Restricting variances between the state andlocal tax bases;

(2) Requiring states to administer any sales anduse taxes levied by local jurisdictions within the state so that sellerscollecting and remitting the taxes will not have to register or file returnswith, remit funds to or be subject to independent audits from local taxingjurisdictions;

(3) Restricting the frequency of changes in thelocal sales and use tax rates and setting effective dates for the applicationof local jurisdictional boundary changes to local sales and use taxes; and

(4) Providing notice of changes in local salesand use tax rates and of changes in the boundaries of local taxingjurisdictions.

(f) Outlines any monetary allowances that are to beprovided by the states to sellers or certified service providers and allows fora joint public and private sector study of the compliance cost on sellers andcertified service providers to collect sales and use taxes for state and localgovernments under various levels of complexity to be completed by July 1, 2002.

(g) Requires each state to certify compliance with theterms of the Agreement before joining and to maintain compliance, under thelaws of the member state, with all provisions of the Agreement while a member.

(h) Requires each state to adopt a uniform policy forcertified service providers that protects the privacy of consumers andmaintains the confidentiality of tax information.

(i) Provides for the appointment of an advisory councilof private sector representatives and an advisory council of nonmember staterepresentatives to consult within the administration of the Agreement.

2. The Agreement must require each member state toabide by the requirements set forth in subsection 1.

(Added to NRS by 2001, 1712)

NRS 360B.150 Beneficiariesof Agreement; causes of action or defenses relating to Agreement; effect ofAgreement on state law. [Effective on the date this state becomes a member ofthe Streamlined Sales and Use Tax Agreement.]

1. The Agreement authorized by this chapter binds andinures only to the benefit of this state and the other member states. Noperson, other than a member state, is an intended beneficiary of the Agreement.Any benefit to a person other than a state is established by the law of thisstate and the other member states and not by the terms of the Agreement.

2. No person has any cause of action or defense underthe Agreement or by virtue of this states approval of the Agreement. No personmay challenge, in any action brought under any provision of law, any action orinaction by any department, agency or other instrumentality of this state, orany political subdivision of this state, on the ground that the action orinaction is inconsistent with the Agreement.

3. No law of this state, or the application thereof,may be declared invalid as to any person or circumstance on the ground that theprovision or application is inconsistent with the Agreement.

(Added to NRS by 2001, 1714,effective on the date this state becomes a member of the Streamlined Sales andUse Tax Agreement)

NRS 360B.160 Natureand purpose of Agreement. The Agreement authorizedby this chapter is an accord among individual cooperating sovereigns in furtheranceof their governmental functions. The Agreement provides a mechanism among themember states to establish and maintain a cooperative, simplified system forthe application and administration of sales and use taxes under the laws ofeach member state.

(Added to NRS by 2001, 1714)

NRS 360B.170 Effectof Agreement and adoption thereof on state law; implementation of conditions ofAgreement. No provision of the Agreementauthorized by this chapter invalidates, in whole or part, or amends anyprovision of the laws of this state. Adoption of the Agreement by this statedoes not amend or modify any law of this state. Implementation of any conditionof the Agreement in this state, whether adopted before, at or after membershipof this state in the Agreement, must be by the action of this state.

(Added to NRS by 2001, 1714)

Implementation of Agreement

NRS 360B.200 Establishmentand maintenance of registration system for sellers; rights and duties ofregistering seller.

1. The Department shall, in cooperation with any otherstates that are members of the Agreement, establish and maintain a central, electronicregistration system that allows a seller to register to collect and remit thesales and use taxes imposed in this State and in the other states that aremembers of the Agreement.

2. A seller who registers pursuant to this sectionagrees to collect and remit sales and use taxes in accordance with theprovisions of this chapter, the regulations of the Department and theapplicable law of each state that is a member of the Agreement, including anystate that becomes a member of the Agreement after the registration of theseller pursuant to this section. The cancellation or revocation of theregistration of a seller pursuant to this section, the withdrawal of a statefrom the Agreement or the revocation of the Agreement does not relieve a sellerfrom liability pursuant to this subsection to remit any taxes previously orsubsequently collected on behalf of a state.

3. When registering pursuant to this section, a sellermay:

(a) Elect to use a certified service provider as itsagent to perform all the functions of the seller relating to sales and usetaxes, other than the obligation of the seller to remit the taxes on its ownpurchases;

(b) Elect to use a certified automated system tocalculate the amount of sales or use taxes due on its sales transactions;

(c) Under such conditions as the Department deemsappropriate in accordance with the Agreement, elect to use its own proprietaryautomated system to calculate the amount of sales or use taxes due on its salestransactions; or

(d) Elect to use any other method authorized by theDepartment for performing the functions of the seller relating to sales and usetaxes.

4. A seller who registers pursuant to this sectionagrees to submit its sales and use tax returns, and to remit any sales and usetaxes due, to the Department at such times and in such a manner and format asthe Department prescribes by regulation. Those regulations must:

(a) Require from each seller who registers pursuant tothis section:

(1) Only one tax return for each taxing periodfor all the sales and use taxes collected on behalf of this State and eachlocal government in this State; and

(2) Only one remittance of taxes for each taxreturn, except that the Department may require additional remittances of taxesif:

(I) The seller collects more than $30,000in sales and use taxes on behalf of this State and the local governments inthis State during the preceding calendar year;

(II) The amount of the additionalremittance is determined by a method of calculation instead of by the actualamount collected; and

(III) The seller is not required to fileany tax returns in addition to those otherwise required in accordance with thissubsection.

(b) Allow any seller who registers pursuant to thissection and makes an election pursuant to paragraph (a), (b) or (c) ofsubsection 3 to submit tax returns in a simplified format that does not includeany more data fields than are permitted in accordance with the Agreement.

(c) Allow any seller who registers pursuant to thissection, does not maintain a place of business in this State and has not madean election pursuant to paragraph (a), (b) or (c) of subsection 3, to file taxreturns at a frequency that does not exceed once per year unless the selleraccumulates more than $1,000 in the collection of sales and use taxes on behalfof this State and the local governments in this State.

(d) Provide an alternative method for a seller whoregisters pursuant to this section to make tax payments the same day as theseller intends if an electronic transfer of money fails.

(e) Require any data that accompanies the remittance ofa tax payment by or on behalf of a seller who registers pursuant to thissection to be formatted using uniform codes for the type of tax and payment inaccordance with the Agreement.

5. The registration of a seller and the collection andremission of sales and use taxes pursuant to this section may not be consideredas a factor in determining whether a seller has a nexus with this State for thepurposes of determining his liability to pay any tax imposed by this State.

(Added to NRS by 2003, 2352; A 2005, 1773, 1778)

NRS 360B.210 Liabilityof certified service provider as agent of seller; liability and auditing ofseller who contracts with certified service provider; system checks of sellers.

1. A certified service provider is:

(a) The agent of each seller with whom the certifiedservice provider has contracted for the collection and remittance of sales anduse taxes; and

(b) Liable for sales and use taxes due each memberstate on all sales transactions it processes for a seller unless the sellermisrepresents the type of items it sells or commits fraud.

2. A seller that contracts with a certified serviceprovider is:

(a) Liable to this state for sales or use taxes due ontransactions processed by the certified service provider if the sellermisrepresents the type of items it sells or commits fraud;

(b) Subject to audit on the transactions processed bythe certified service provider if there is probable cause to believe that theseller has committed fraud or made a material misrepresentation; and

(c) Subject to audit for transactions not processed bythe certified service provider.

3. The member states acting jointly may perform asystem check of the seller and review the sellers procedures to determine ifthe certified service providers system is functioning properly and the extentto which the sellers transactions are being processed by the certified serviceprovider.

(Added to NRS by 2001, 1713; A 2003, 2395; 2005, 1777)

NRS 360B.220 Responsibilityand liability of person that provides and seller that uses certified automatedsystem; liability of seller for proprietary system.

1. A person that provides a certified automated systemis:

(a) Responsible for the proper functioning of thatsystem; and

(b) Liable to this state for underpayments of taxattributable to errors in the functioning of the certified automated system.

2. A seller that uses a certified automated systemremains responsible and is liable to this state for reporting and remittingtax.

3. A seller that has a proprietary system fordetermining the amount of tax due on transactions and has signed an agreementestablishing a performance standard for that system is liable for the failureof the system to meet the performance standard.

(Added to NRS by 2001, 1713; A 2003, 2395; 2005, 1777)

NRS 360B.230 Postingby Department of certain information on website or other Internet site; noticeof changes to posted information.

1. The Department shall post on a website or otherInternet site that is operated or administered by or on behalf of the Department:

(a) The rates of sales and use taxes for this state andfor each local government in this state that imposes such taxes. The Departmentshall identify this state and each local government using the FederalInformation Processing Standards developed by the National Institute ofStandards and Technology.

(b) Any change in those rates.

(c) Any amendments to the statutory provisions andadministrative regulations of this state governing the registration of sellersand the collection of sales and use taxes.

(d) Any change in the boundaries of local governmentsin this state that impose sales and use taxes.

(e) The list maintained pursuant to NRS 360B.240.

(f) Any other information the Department deemsappropriate.

2. The Department shall make a reasonable effort toprovide sellers with as much advance notice as possible of any changes oramendments required to be posted pursuant to subsection 1 and of any otherchanges in the information posted pursuant to subsection 1. Except as otherwiseprovided in NRS 360B.250, the failureof the Department to provide such notice and the failure of a seller to receivesuch notice does not affect the obligation of the seller to collect and remitany applicable sales and use taxes.

(Added to NRS by 2003, 2353; A 2005, 1778)

NRS 360B.240 Maintenanceby Department and use of list denoting tax rates and taxing jurisdictions foreach zip code in state.

1. The Department shall maintain a list that denotesfor each five-digit and nine-digit zip code in this state the combined rates ofsales taxes and the combined rates of use taxes imposed in the area of that zipcode, and the applicable taxing jurisdictions. If the combined rate of all thesales taxes or use taxes respectively imposed within the area of a zip code isnot the same for the entire area of the zip code, the Department shall denotein the list the lowest combined tax rates for the entire zip code.

2. If a street address does not have a nine-digit zipcode or if a registered seller is unable to determine the nine-digit zip codeof a purchaser after exercising due diligence to determine that information,that seller may, except as otherwise provided in subsection 3, apply the ratedenoted for the five-digit zip code in the list maintained pursuant to thissection. For the purposes of this subsection, there is a rebuttable presumptionthat a registered seller has exercised due diligence if the seller hasattempted to determine the nine-digit zip code of a purchaser by using softwareapproved by the Department which makes that determination from the streetaddress and five-digit zip code of the purchaser.

3. The list maintained pursuant to this section doesnot apply to and must not be used for any transaction regarding which apurchased product is received by the purchaser at the business location of theseller.

(Added to NRS by 2003, 2353; A 2005, 1778)

NRS 360B.250 Waiverof liability of registered seller or certified service provider for collectionof incorrect amount of tax under certain circumstances. The Department shall waive any liability of a registeredseller and a certified service provider acting on behalf of a registered sellerwho, as a result of his reasonable reliance on the information posted pursuantto NRS 360B.230 or his compliance withsubsection 2 of NRS 360B.240, collectsthe incorrect amount of any sales or use tax imposed in this state, for:

1. The amount of the sales or use tax which theregistered seller and certified service provider fail to collect as a result ofthat reliance; and

2. Any penalties and interest on that amount.

(Added to NRS by 2003, 2354; A 2005, 1778)

NRS 360B.255 Applicationof tax to shipment of tangible personal property that includes both taxable andexempt property. If a shipment of tangiblepersonal property which is sold to a purchaser includes both taxable and exemptproperty, the seller of the property:

1. Shall allocate any delivery charges the sellerimposes by using a percentage based on:

(a) The total sales price of the taxable propertycompared to the total sales price of all the property in the shipment; or

(b) The total weight of the taxable property comparedto the total weight of all the property in the shipment;

2. Shall apply the applicable tax to the percentage ofthe delivery charges allocated to the taxable property; and

3. Shall not apply the tax to the percentage of thedelivery charges allocated to the exempt property.

(Added to NRS by 2005, 1772)

NRS 360B.260 Directpay permits: Use; application for permit.

1. A purchaser may purchase tangible personal propertywithout paying to the seller at the time of purchase the sales and use taxesthat are due thereon if:

(a) The seller does not maintain a place of business inthis state; and

(b) The purchaser has obtained a direct pay permitpursuant to the provisions of this section.

2. A purchaser who wishes to obtain a direct paypermit must file with the Department an application for such a permit that:

(a) Is on a form prescribed by the Department; and

(b) Sets forth such information as is required by theDepartment.

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 associationor partnership; or

(c) An executive officer or some other personspecifically authorized to sign the application if the seller is a corporation.Written evidence of the signers authority must be attached to the application.

4. Any purchaser who obtains a direct pay permitpursuant to this section shall:

(a) Determine the amount of sales and use taxes thatare due and payable to this state or a local government of this state upon thepurchase of tangible personal property from such a seller; and

(b) Report and pay those taxes to the appropriateauthority.

5. If a purchaser who has obtained a direct pay permitpurchases tangible personal property that will be available for use digitallyor electronically in more than one jurisdiction, he may, to determine theamount of tax that is due to this state or to a local government of this state,use any reasonable, consistent and uniform method to apportion the use of theproperty among the various jurisdictions in which it will be used that issupported by the purchasers business records as they exist at the time of theconsummation of the sale.

(Added to NRS by 2003, 2356; A 2005, 1778)

NRS 360B.270 Purchasesof tangible personal property that will be used digitally or electronically inmultiple jurisdictions.

1. A purchaser who:

(a) Has not obtained a direct pay permit pursuant to NRS 360B.260;

(b) Purchases tangible personal property that issubject to sales and use taxes; and

(c) Has knowledge at the time of purchase that thepurchased property will be available for use digitally or electronically inmore than one jurisdiction,

shall givewritten notice of that fact to the seller at the time of purchase. The noticemust be given in a form required by the Department.

2. Notwithstanding the provisions of NRS 360B.350 to 360B.375, inclusive:

(a) Upon receipt of such a notice by a seller who doesnot maintain a place of business in this state, the seller is relieved of anyliability to collect, pay or remit any use tax that is due and the purchaserthereafter assumes the liability to pay that tax directly to the appropriateauthority.

(b) To determine the tax due to this state or to alocal government of this state:

(1) A purchaser who delivers a notice pursuantto subsection 1 to a seller who does not maintain a place of business in thisstate; and

(2) A seller who maintains a place of businessin this state and receives a notice pursuant to subsection 1,

may use anyreasonable, consistent and uniform method to apportion the use of the propertyamong the various jurisdictions in which it will be used that is supported bythe business records of the purchaser or seller as they exist at the time ofthe consummation of the sale.

3. Any notice given pursuant to subsection 1 appliesto all future sales of property made by the seller to the purchaser, except forthe sale of property that is specifically apportioned pursuant to subsection 2or to property that will not be used in multiple jurisdictions, until thepurchaser delivers a written notice of revocation to the seller.

(Added to NRS by 2003, 2357; A 2005, 1778)

NRS 360B.280 Purchasesof direct mail.

1. A purchaser of direct mail must provide to theseller at the time of the purchase:

(a) If the seller does not maintain a place of businessin this State:

(1) A form for direct mail approved by theDepartment;

(2) An informational statement of thejurisdictions to which the direct mail will be delivered to recipients; or

(3) Documentation of the direct pay permit ofthe purchaser issued pursuant to NRS360B.260; or

(b) If the seller maintains a place of business in thisState, an informational statement of the jurisdictions to which the direct mailwill be delivered to recipients.

If apurchaser of direct mail provides documentation of a direct pay permit to aseller in accordance with subparagraph (3) of paragraph (a), the seller shallnot require the purchaser to comply with any other provision of that paragraph.

2. Notwithstanding the provisions of NRS 360B.350 to 360B.375, inclusive:

(a) Upon the receipt pursuant to subsection 1 of:

(1) A form for direct mail by a seller who doesnot maintain a place of business in this State:

(I) The seller is relieved of anyliability for the collection, payment or remission of any sales or use taxesapplicable to the purchase of direct mail by that purchaser from that seller;and

(II) The purchaser is liable for any salesor use taxes applicable to the purchase of direct mail by that purchaser fromthat seller.

Any form fordirect mail provided to a seller pursuant to this subparagraph applies to allfuture sales of direct mail made by that seller to that purchaser until the purchaserdelivers a written notice of revocation to the seller.

(2) An informational statement by any seller,the seller shall collect, pay or remit any applicable sales and use taxes inaccordance with the information contained in that statement. In the absence ofbad faith, the seller is relieved of any liability to collect, pay or remit anysales and use taxes other than in accordance with that information received.

(b) If a purchaser of direct mail does not comply withsubsection 1, the seller shall determine the location of the sale pursuant tosubsection 5 of NRS 360B.360 andcollect, pay or remit any applicable sales and use taxes. This paragraph doesnot limit the liability of the purchaser for the payment of any of those taxes.

3. As used in this section, direct mail meansprinted material delivered or distributed by the United States Postal Serviceor another delivery service to a mass audience or to addresses contained on amailing list provided by a purchaser or at the direction of a purchaser whenthe cost of the items purchased is not billed directly to the recipients. Theterm includes tangible personal property supplied directly or indirectly by thepurchaser to the seller of the direct mail for inclusion in the packagecontaining the printed material. The term does not include multiple items ofprinted material delivered to a single address.

(Added to NRS by 2003, 2357; A 2005, 1774, 1778)

NRS 360B.290 Contentsof document given to purchaser indicating sales price of tangible personalproperty. Any invoice, billing or otherdocument given to a purchaser that indicates the sales price for which tangiblepersonal property is sold must state separately any amount received by theseller for:

1. Any installation charges for the property;

2. The value of any exempt property given to thepurchaser if the exempt property and any taxable property are sold as a singleproduct or piece of merchandise;

3. Any credit for any trade-in which is specificallyexempted from the sales price of the property pursuant to chapter 372 or 374of NRS;

4. Any interest, financing and carrying charges fromcredit extended on the sale; and

5. Any taxes legally imposed directly on the consumer.

(Added to NRS by 2003, 2358; A 2005, 1775, 1778)

NRS 360B.300 Paymentof tax due on weekend or legal holiday. Notwithstandingthe provisions of any other specific statute, if any sales or use tax is dueand payable on a Saturday, Sunday or legal holiday, the tax may be paid on thenext succeeding business day.

(Added to NRS by 2003, 2358; A 2005, 1778)

NRS 360B.310 Effectivedate of change in tax rate resulting from change in boundary of local government. Notwithstanding the provisions of any other specificstatute, if the boundary of a local government that has imposed a sales or usetax is changed, any change in the rate of that tax which results therefrombecomes effective on the first day of the first calendar quarter that begins atleast 60 days after the effective date of the change in the boundary.

(Added to NRS by 2003, 2358; A 2005, 1778)

NRS 360B.320 Personallyidentifiable information: Notification of practices of State; retention andaccess; enforcement of provisions.

1. The Department shall provide public notification toconsumers of tangible personal property, including purchasers who are exemptfrom any sales and use taxes, of the practices of this State relating to thecollection, use and retention of any personally identifiable information.

2. The Department shall not retain any personallyidentifiable information if the information is no longer required to ensure thevalidity of exemptions from sales and use taxes.

3. When any personally identifiable information thatidentifies a natural person is retained by or on behalf of the State, thatperson is entitled to reasonable access to that information to correct anyportion thereof which has been inaccurately recorded.

4. If any person or other entity, except a state whichis a member of the Agreement or any person or other entity who is entitled tosuch information pursuant to any state law or the Agreement, requests anypersonally identifiable information maintained by the Department, theDepartment shall make a reasonable and timely effort to notify any person whois identified by the requested information.

5. The Attorney General shall enforce the provisionsof this section.

6. As used in this section, personally identifiableinformation means information that identifies:

(a) A participant in the system created pursuant to theAgreement; or

(b) A consumer of tangible personal property who dealswith a registered seller that elects to use a certified service provider as itsagent to perform all the functions of the seller relating to sales and usetaxes, other than the obligation of the seller to remit the taxes on its ownpurchases.

(Added to NRS by 2005, 1771)

NRS 360B.330 Actionby purchaser against seller for refund of sales or use tax erroneously orillegally collected by seller.

1. No purchaser may commence or maintain any cause ofaction against any seller for the refund of any sales or use tax erroneously orillegally collected by the seller unless:

(a) The purchaser provides the seller with writtennotice of his request for a refund, containing such information as is necessaryto determine the validity of the request; and

(b) The seller:

(1) Denies the request; or

(2) Fails to respond to the request within 60 daysafter receiving the notice of the request provided in accordance with paragraph(a).

2. For the purposes of any action brought by apurchaser against a seller for the refund of any sales or use tax erroneouslyor illegally collected by the seller, the seller is presumed to have areasonable business practice regarding the collection of sales and use taxes ifthe seller:

(a) Uses a provider or system, including a proprietarysystem, that is certified by this State; and

(b) Has remitted to this State all sales and use taxescollected on behalf of this State and each local government in this State, lessany deductions, credits and collection allowances to which the seller isentitled.

(Added to NRS by 2005, 1772)

Sources of Transactions

NRS 360B.350 Definitions. As used in NRS360B.350 to 360B.375, inclusive:

1. Receive means taking possession of or making thefirst use of tangible personal property, whichever occurs first. The term doesnot include possession by a shipping company on behalf of a purchaser.

2. Transportation equipment means:

(a) Locomotives and railcars used for the carriage ofpersons or property in interstate commerce.

(b) Trucks and truck-tractors having a manufacturersgross vehicle weight rating of more than 10,000 pounds, and trailers,semitrailers and passenger buses that are:

(1) Registered pursuant to the InternationalRegistration Plan, as adopted by the Department of Motor Vehicles pursuant to NRS 706.826; or

(2) Operated under the authority of a carrierwho is authorized by the Federal Government to engage in the carriage ofpersons or property in interstate commerce.

(c) Aircraft operated by an air carrier who isauthorized by the Federal Government or a foreign government to engage in thecarriage of persons or property in interstate or foreign commerce.

(d) Containers designed for use on and component partsattached or secured to any of the items described in paragraph (a), (b) or (c).

(Added to NRS by 2003, 2354; A 2005, 1778)

NRS 360B.355 Applicabilityof provisions.

1. Except as otherwise provided in this section, forthe purpose of determining the liability of a seller for sales and use taxes, aretail sale shall be deemed to take place at the location determined pursuantto NRS 360B.350 to 360B.375, inclusive.

2. NRS 360B.350to 360B.375, inclusive, do not:

(a) Affect any liability of a purchaser or lessee for ause tax.

(b) Apply to:

(1) The retail sale or transfer of watercraft,modular homes, manufactured homes or mobile homes.

(2) The retail sale, other than the lease orrental, of motor vehicles, trailers, semitrailers or aircraft that do notconstitute transportation equipment.

(Added to NRS by 2003, 2354; A 2005, 1778)

NRS 360B.360 Retailsale of tangible personal property generally. Exceptas otherwise provided in NRS 360B.350to 360B.375, inclusive, the retailsale, excluding the lease or rental, of tangible personal property shall bedeemed to take place:

1. If the property is received by the purchaser at aplace of business of the seller, at that place of business.

2. If the property is not received by the purchaser ata place of business of the seller:

(a) At the location indicated to the seller pursuant toany instructions provided for the delivery of the property to the purchaser orto another recipient who is designated by the purchaser as his donee; or

(b) If no such instructions are provided and if knownby the seller, at the location where the purchaser or another recipient who isdesignated by the purchaser as his donee, receives the property.

3. If subsections 1 and 2 do not apply, at the addressof the purchaser indicated in the business records of the seller that aremaintained in the ordinary course of the sellers business, unless the use ofthat address would constitute bad faith.

4. If subsections 1, 2 and 3 do not apply, at theaddress of the purchaser obtained during the consummation of the sale,including, if no other address is available, the address of the purchasersinstrument of payment, unless the use of an address pursuant to this subsectionwould constitute bad faith.

5. In all other circumstances, at the address fromwhich the property was shipped or, if it was delivered electronically, at theaddress from which it was first available for transmission by the seller.

(Added to NRS by 2003, 2355; A 2005, 1778)

NRS 360B.365 Leaseor rental of tangible personal property generally.

1. Except as otherwise provided in this section and NRS 360B.355, 360B.370 and 360B.375, the lease or rental of tangiblepersonal property shall be deemed to take place as follows:

(a) If the lease or rental requires recurring periodicpayments, for the purposes of:

(1) The first periodic payment, the location ofthe lease or rental shall be deemed to take place at the location determinedpursuant to NRS 360B.360; and

(2) Subsequent periodic payments, the locationof the lease or rental shall be deemed to take place at the primary location ofthe property. For the purposes of this subparagraph, the primary location ofthe property shall be deemed to be the address for the property provided by thelessee and set forth in the records maintained by the lessor in the ordinarycourse of business, regardless of the intermittent use of the property atdifferent locations, unless the use of that address would constitute bad faith.

(b) If the lease or rental does not require recurringperiodic payments, the location of the lease or rental shall be deemed to takeplace at the location determined pursuant to NRS 360B.360.

2. This section does not apply to the determination ofany liability of a seller for any sales or use taxes imposed on:

(a) The acquisition of tangible personal property forlease; or

(b) Any accelerated or lump-sum payments made pursuantto a lease or rental of tangible personal property.

(Added to NRS by 2003, 2355; A 2005, 1778)

NRS 360B.370 Leaseor rental of motor vehicles, trailers, semitrailers or aircraft that do notconstitute transportation equipment.

1. Except as otherwise provided in this section and NRS 360B.355, the lease or rental ofmotor vehicles, trailers, semitrailers or aircraft that do not constitute transportationequipment shall be deemed to take place:

(a) If the lease or rental requires recurring periodicpayments, at the primary location of the property. For the purposes of thisparagraph, the primary location of the property shall be deemed to be theaddress for the property provided by the lessee and set forth in the recordsmaintained by the lessor in the ordinary course of business, regardless of theintermittent use of the property at different locations, unless the use of thataddress would constitute bad faith.

(b) If the lease or rental does not require recurringperiodic payments, at the location determined pursuant to NRS 360B.360.

2. This section does not apply to the determination ofany liability of a seller for any sales or use taxes imposed on:

(a) The acquisition of tangible personal property forlease; or

(b) Any accelerated or lump-sum payments made pursuantto a lease or rental of tangible personal property.

(Added to NRS by 2003, 2356; A 2005, 1778)

NRS 360B.375 Leaseor rental of transportation equipment. Exceptas otherwise provided in NRS 360B.355,the lease or rental of transportation equipment shall be deemed to take placeat the location determined pursuant to NRS360B.360.

(Added to NRS by 2003, 2356; A 2005, 1778)

Construction of Common Terms

NRS 360B.400 Dutyof Department. In administering the provisionsof this chapter and chapters 372 and 374 of NRS, and in carrying out the provisions ofthe Agreement, the Department shall construe the terms defined in NRS 360B.405 to 360B.495, inclusive, unless the contextotherwise requires, in the manner prescribed by those sections.

(Added to NRS by 2005, 1768)

NRS 360B.405 Alcoholicbeverages construed. Alcoholic beveragesmeans beverages that are suitable for human consumption and contain one-half of1 percent or more of alcohol by volume.

(Added to NRS by 2005, 1768)

NRS 360B.410 Computerconstrued. Computer means an electronicdevice that accepts information in digital or similar form and manipulates itfor a result based on a sequence of instructions.

(Added to NRS by 2005, 1768)

NRS 360B.415 Computersoftware construed. Computer software meansa set of coded instructions designed to cause a computer or automatic dataprocessing equipment to perform a task.

(Added to NRS by 2005, 1768)

NRS 360B.420 Deliveredelectronically construed. Delivered electronicallymeans delivered to a purchaser by means other than tangible storage media.

(Added to NRS by 2005, 1768)

NRS 360B.425 Deliverycharges construed. Delivery charges meanscharges by a seller of personal property for the preparation and delivery ofthe property to a location designated by the purchaser of the property,including, but not limited to, charges for transportation, shipping, postage,handling, crating and packing.

(Added to NRS by 2005, 1768)

NRS 360B.430 Dietarysupplement construed. Dietary supplementmeans any product, other than tobacco, intended to supplement the diet that:

1. Contains one or more of the following dietaryingredients:

(a) A vitamin;

(b) A mineral;

(c) An herb or other botanical;

(d) An amino acid;

(e) A dietary substance for use by humans to supplementthe diet by increasing the total dietary intake; or

(f) A concentrate, metabolite, constituent, extract orcombination of any ingredient described in paragraphs (a) to (e), inclusive;

2. Is intended for ingestion in the form of a tablet,capsule, powder, softgel, gelcap or liquid or, if not intended for ingestion insuch a form, is not represented as conventional food and is not represented foruse as a sole item of a meal or of the diet; and

3. Is required to be labeled as a dietary supplementin accordance with 21 C.F.R. 101.36.

(Added to NRS by 2005, 1769)

NRS 360B.435 Drugconstrued. Drug means a compound, substanceor preparation, and any component of a compound, substance or preparation,other than a food, a food ingredient, a dietary supplement and an alcoholicbeverage, which is:

1. Recognized in the official United StatesPharmacopoeia, official Homeopathic Pharmacopoeia of the United States,or official National Formulary, or in any supplement thereto;

2. Intended for use in the diagnosis, cure,mitigation, treatment or prevention of disease; or

3. Intended to affect the structure or any function ofthe body.

(Added to NRS by 2005, 1769)

NRS 360B.440 Electronicconstrued. Electronic means relating totechnology having electrical, digital, magnetic, wireless, optical,electromagnetic or similar capabilities.

(Added to NRS by 2005, 1769)

NRS 360B.445 Foodand food ingredients construed. Food andfood ingredients means substances, whether in liquid, concentrated, solid, frozen,dried or dehydrated form, that are sold for ingestion or chewing by humans andare consumed for their taste or nutritional value, except alcoholic beveragesand tobacco.

(Added to NRS by 2005, 1769)

NRS 360B.450 Leaseor rental construed.

1. Except as otherwise provided in this section,lease or rental means any transfer of possession or control of tangiblepersonal property for a fixed or indeterminate term for consideration. Theterm:

(a) Includes future options to purchase or extend;

(b) Excludes:

(1) A transfer of possession or control under asecurity agreement or plan for deferred payment that requires the transfer oftitle upon completion of the required payments;

(2) A transfer of possession or control under anagreement that requires the transfer of title upon completion of requiredpayments and payment of an option price that does not exceed the greater of$100 or 1 percent of the total required payments; and

(3) The provision of tangible personal propertytogether with an operator for a fixed or indeterminate period, if the operator:

(I) Is necessary for the property toperform as designed; and

(II) Does anything more than maintain,inspect and set up the property; and

(c) Includes agreements covering motor vehicles andtrailers pursuant to which the amount of consideration may be increased ordecreased by reference to the amount realized upon sale or disposition of theproperty, as described in 26 U.S.C. 7701(h)(1).

2. The provisions of subsection 1:

(a) Apply regardless of whether a transaction ischaracterized as a lease or rental under generally accepted accountingprinciples, the Internal Revenue Code, the Uniform Commercial Code or any otherprovisions of federal, state or local law.

(b) Do not apply to any leases or rentals existing onJune 15, 2005.

(Added to NRS by 2005, 1769)

NRS 360B.455 Medicineconstrued. Medicine includes any drug.

(Added to NRS by 2005, 1770)

NRS 360B.460 Preparedfood construed. Prepared food means:

1. Food sold in a heated state or heated by theseller;

2. Two or more food ingredients mixed or combined bythe seller for sale as a single item, unless the food ingredients:

(a) Are only cut, repackaged or pasteurized by theseller; or

(b) Contain any raw eggs, fish, meat or poultry, orother such raw animal foods, for which cooking by the consumer is recommendedpursuant to the Food Code published by the Food and Drug Administration of theUnited States Department of Health and Human Services; and

3. Food sold with eating utensils provided by theseller, including plates, knives, forks, spoons, glasses, cups, napkins orstraws. For the purposes of this paragraph, plates does not include anycontainers or packaging used to transport food.

(Added to NRS by 2005, 1770)

NRS 360B.465 Prescriptionconstrued. Prescription means an order,formula or recipe issued in any form of oral, written, electronic or othermeans of transmission by a duly licensed practitioner authorized by the laws ofthis State.

(Added to NRS by 2005, 1770)

NRS 360B.470 Prewrittencomputer software construed. Prewrittencomputer software means computer software, including any prewritten upgrades,which is not designed and developed by the author or other creator to thespecifications of a specific purchaser, and computer software designed anddeveloped by the author or other creator to the specifications of a specificpurchaser when it is sold to a person other than the specific purchaser. Forthe purposes of this section:

1. The combining of two or more prewritten computersoftware programs or prewritten portions thereof does not cause the combinationto be other than prewritten computer software.

2. When a person modifies or enhances any computersoftware of which the person is not the author or creator, that person shall bedeemed to be the author or creator only of those modifications or enhancements.

3. Any prewritten computer software or a prewrittenportion thereof that is modified or enhanced to any degree remains prewrittencomputer software if that modification or enhancement is designed and developedto the specifications of a specific purchaser, except that the modification orenhancement does not constitute prewritten computer software if there is areasonable, separately stated charge or an invoice or other statement of theprice given to the purchaser for that modification or enhancement.

(Added to NRS by 2005, 1770)

NRS 360B.475 Prostheticdevice construed. Prosthetic device means areplacement, corrective or supportive device, including any repair andreplacement parts therefor, worn on or in the body:

1. To replace artificially a missing portion of thebody;

2. To prevent or correct a physical deformity ormalfunction; or

3. To support a weak or deformed portion of the body,

except thatthe term does not include any corrective eyeglasses, contact lenses or hearingaids.

(Added to NRS by 2005, 1770)

NRS 360B.480 Salesprice construed.

1. Sales price means the total amount ofconsideration, including cash, credit, property and services, for whichpersonal property is sold, leased or rented, valued in money, whether receivedin money or otherwise, and without any deduction for:

(a) The sellers cost of the property sold;

(b) The cost of materials used, labor or service cost,interest, losses, all costs of transportation to the seller, all taxes imposedon the seller, and any other expense of the seller;

(c) Any charges by the seller for any servicesnecessary to complete the sale, including any delivery charges and excludingany installation charges which are stated separately pursuant to NRS 360B.290; and

(d) Except as otherwise provided in subsection 2, anycredit for any trade-in.

2. The term does not include:

(a) Any installation charges which are statedseparately pursuant to NRS 360B.290;

(b) The value of any exempt personal property given tothe purchaser if:

(1) The exempt property and any taxable propertyare sold as a single product or piece of merchandise; and

(2) The value of the exempt property is statedseparately pursuant to NRS 360B.290;

(c) Any credit for any trade-in which is:

(1) Specifically exempted from the sales pricepursuant to chapter 372 or 374 of NRS; and

(2) Stated separately pursuant to NRS 360B.290;

(d) Any discounts, including those in the form of cash,term or coupons that are not reimbursed by a third party, which are allowed bya seller and taken by the purchaser on a sale;

(e) Any interest, financing and carrying charges fromcredit extended on the sale of personal property, if stated separately pursuantto NRS 360B.290; and

(f) Any taxes legally imposed directly on the consumerwhich are stated separately pursuant to NRS360B.290.

(Added to NRS by 2005, 1771)

NRS 360B.485 Tangiblepersonal property construed. Tangible personalproperty includes, but is not limited to, electricity, water, gas, steam andprewritten computer software.

(Added to NRS by 2005, 1771)

NRS 360B.490 Tobaccoconstrued. Tobacco means cigarettes, cigars,chewing or pipe tobacco, or any other item that contains tobacco.

(Added to NRS by 2005, 1771)

NRS 360B.495 Tonicsand vitamins construed. Tonics and vitaminsincludes dietary supplements.

(Added to NRS by 2005, 1771)

 

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