NEVADA REVISED STATUTES: CHAPTER 374

CHAPTER 374

LOCAL SCHOOL SUPPORT TAX

GENERAL PROVISIONS

NRS 374.010 Short title.

NRS 374.015 Legislative finding and declaration.

NRS 374.020 Definitions.

NRS 374.025 “Business” defined.

NRS 374.030 “Gross receipts” defined. [Effective through June 30, 2002.]

NRS 374.030 “Gross receipts” defined. [Effective July 1, 2002.]

NRS 374.035 “In a county” defined.

NRS 374.040 “Occasional sale” defined.

NRS 374.050 “Purchase” defined.

NRS 374.055 “Retail sale” and “sale at retail” defined.

NRS 374.060 “Retailer” defined.

NRS 374.065 “Sale” defined.

NRS 374.070 “Sales price” defined.

NRS 374.075 “Seller” defined.

NRS 374.080 “Storage” defined.

NRS 374.085 “Storage, use or other consumption”: Exclusion.

NRS 374.090 “Tangible personal property” defined.

NRS 374.100 “Taxpayer” defined.

NRS 374.107 “Vehicle” defined.

SALES TAX

NRS 374.110 Imposition and rate.

NRS 374.112 Procedure for computing tax on sale of vehicle by seller who is not required to be registered.

NRS 374.113 Schedule of depreciation for tax on sale of vehicle.

NRS 374.115 Method of collection.

NRS 374.120 Inference by retailer of his assumption or absorption of tax prohibited; penalty.

NRS 374.125 Separate display of tax from list or other price.

NRS 374.128 Certain contracts must require person making sale to obtain permit.

NRS 374.130 Application for permit required: Form; contents; exception.

NRS 374.135 Fee for permit.

NRS 374.140 Issuance, assignability and display of permit; explanation of liability for collection and payment of taxes.

NRS 374.145 Fee for reinstatement of suspended or revoked permit.

NRS 374.150 Revocation or suspension of permit: Procedure; limitation on issuance of new permit.

NRS 374.160 Presumption of taxability; resale certificate.

NRS 374.165 Effect of resale certificate.

NRS 374.170 Form and contents of resale certificate.

NRS 374.175...... Liability of purchaser giving resale certificate.

NRS 374.180 Improper use of resale certificate; penalty.

NRS 374.185 Resale certificate: Commingled fungible goods.

USE TAX

NRS 374.190 Imposition and rate.

NRS 374.195 Liability for tax; extinguishment of liability.

NRS 374.200 Collection by retailer; purchaser’s receipt.

NRS 374.205 Tax as debt to county.

NRS 374.210 Advertisement of assumption or absorption of tax by retailer unlawful.

NRS 374.215 Tax must be displayed separately from price.

NRS 374.220 Unlawful acts.

NRS 374.225 Registration of retailers.

NRS 374.230 Presumption of purchase for use; resale certificate.

NRS 374.235 Effect of resale certificate.

NRS 374.240 Form and contents of resale certificate.

NRS 374.245 Liability of purchaser giving resale certificate for use of article bought for resale.

NRS 374.250 Resale certificate: Commingled fungible goods.

NRS 374.255 Presumption of purchase for use in this state.

NRS 374.260 Presumption that property delivered outside this state to certain purchasers was purchased for use in this state.

NRS 374.263 Presumption that certain property delivered outside this state was not purchased for use in this state.

EXEMPTIONS

NRS 374.265 “Exempted from the taxes imposed by this chapter” defined.

NRS 374.270 Constitutional and statutory exemptions.

NRS 374.275 Proceeds of mines.

NRS 374.280 Fuel used to propel motor vehicle.

NRS 374.285 Animals and plants intended for human consumption; feed; fertilizer.

NRS 374.286 Farm machinery and equipment. [Effective July 1, 2002.]

NRS 374.287 Prosthetic devices, orthotic appliances and certain supports and casts; appliances and supplies relating to ostomy; products for hemodialysis; medicine.

NRS 374.289 Food for human consumption.

NRS 374.2891 Basis for determining exemption of food for human consumption.

NRS 374.290 Meals and food products sold to students or teachers by school, organization of students or parent-teacher association.

NRS 374.291 Works of fine art for public display: General requirements.

NRS 374.2911 Works of fine art for public display: Collection of admission fee for exhibition.

NRS 374.292 Textbooks sold within University and Community College System of Nevada.

NRS 374.295 Containers.

NRS 374.300 Gas, electricity and water.

NRS 374.305 Domestic fuels.

NRS 374.307 Product or system using renewable energy to generate electricity. [Effective January 1, 2002, through June 30, 2003.]

NRS 374.310 Personal property used for performance of contract on public works.

NRS 374.315 Personal property used for performance of certain written contracts.

NRS 374.320 Newspapers.

NRS 374.321 Manufactured homes and mobile homes.

NRS 374.322 Aircraft, aircraft engines and component parts of aircraft.

NRS 374.323 Engines, chassis, parts and components of professional racing vehicles; certain vehicles used by professional racing team or sanctioning body.

NRS 374.325 Occasional sales.

NRS 374.330 Personal property sold to United States, state or political subdivision.

NRS 374.3305 Personal property sold by or to nonprofit organization created for religious, charitable or educational purposes.

NRS 374.3306 Requirements for organization created for religious, charitable or educational purposes.

NRS 374.3307 Procedure for claim of exemption by nonprofit organization created for religious, charitable or educational purposes; regulations.

NRS 374.331 Personal property loaned or donated to United States, state, political subdivision or religious or eleemosynary organization.

NRS 374.335 Sale to common carrier.

NRS 374.340 Property shipped outside state pursuant to sales contract.

NRS 374.345 Personal property sold to or used by contractor who is constituent part of governmental, religious or charitable entity.

NRS 374.350 Property on which tax on retail sale paid.

NRS 374.355 Liability of purchaser who uses property declared exempt for purpose not exempt.

ABATEMENTS

NRS 374.357 Abatement for eligible machinery or equipment used by certain new or expanded businesses. [Effective through June 30, 2005.]

NRS 374.357 Abatement for eligible machinery or equipment used by certain new or expanded businesses. [Effective July 1, 2005.]

RETURNS AND PAYMENTS

NRS 374.359 Taxes collected to be held in separate account.

NRS 374.360 Date tax due.

NRS 374.365 Return: Time for filing; persons required to file; signatures.

NRS 374.370 Contents of return; deductions for uncollected sales price; penalties.

NRS 374.375 Reimbursement to taxpayer for collection of tax.

NRS 374.380 Delivery of return; remittance.

NRS 374.385 Periods for returns.

NRS 374.388 Presumption of payment: Certificate of ownership for used manufactured home or used mobile home.

NRS 374.390 Lease and rental receipts: Reporting; payment.

NRS 374.395 Affixing and canceling of revenue stamps.

NRS 374.400 Extension of time for filing return and paying tax.

NRS 374.402 Deferral of payment.

NRS 374.403 Collection and payment of tax by responsible person; joint and several liability.

SECURITY

NRS 374.515 Authority of department; amount; sales; return of surplus.

OVERPAYMENTS AND REFUNDS

NRS 374.635 Certification of excess amount collected; credit and refund; overpayment of use tax by purchaser.

NRS 374.640 Limitations on claims for refund or credit.

NRS 374.643 Credit or refund of tax for business within zone for economic development.

NRS 374.645 Credit or refund for use tax: Reimbursement of vendor for sales tax.

NRS 374.650 Form and contents of claim for credit or refund.

NRS 374.655 Failure to file claim constitutes waiver.

NRS 374.660 Service of notice of disallowance of claim.

NRS 374.665 Interest on overpayments.

NRS 374.670 Disallowance of interest.

NRS 374.675 Injunction or other process to prevent collection of tax prohibited.

NRS 374.680 Action for refund: Claim as condition precedent.

NRS 374.685 Action for refund: Time to sue; venue of action; waiver.

NRS 374.690 Right of appeal on failure of department to mail notice of action on claim.

NRS 374.695 Judgment for plaintiff: Credits; refund of balance.

NRS 374.700 Allowance of interest.

NRS 374.705 Standing to recover.

NRS 374.710 Recovery of erroneous refunds: Action; jurisdiction and venue.

NRS 374.715 District attorney to prosecute action for recovery of erroneous refund; applicability of NRS, N.R.C.P. and N.R.A.P.

NRS 374.720 Cancellation of illegal determination: Procedure; limitation.

ADMINISTRATION

NRS 374.725 Enforcement by department; adoption of regulations.

NRS 374.727 Calculation of tax imposed on use or other consumption of meals provided by employer.

NRS 374.7273 Application of exemption for sale of personal property for shipment outside state to include sale of motor vehicle to certain nonresidents. [Effective through June 30, 2002.]

NRS 374.7275 Calculation of tax imposed on retail sale of large appliances.

NRS 374.728 Construction of “retailer maintaining place of business in county.”

NRS 374.729 Application of NRS 374.330 to transfer of property to governmental entities pursuant to certain agreements.

NRS 374.731 Application of NRS 374.330 to sale of certain medical devices to governmental entities.

NRS 374.732 Taxation of photographers: Furnishing of proofs considered to be rendition of service.

NRS 374.735 Employment of accountants, investigators and other persons; delegation of authority.

NRS 374.738 Certain broadcasters, printers, advertising firms, distributors and publishers deemed agents and retailers maintaining place of business in this state.

NRS 374.739 Certain broadcasting activities not taxable transactions.

NRS 374.740 Records to be kept by sellers, retailers and others.

NRS 374.745 Examination of records; investigation of business.

NRS 374.750 Reports for administering tax on use: Contents.

NRS 374.755 Disclosure of information unlawful; exceptions.

PENALTIES

NRS 374.760 Failure to make return or furnish data.

NRS 374.765 False or fraudulent return.

NRS 374.770 Other violations of chapter.

NRS 374.775 Statute of limitations.

NRS 374.780 Application of doctrine of res judicata.

MISCELLANEOUS PROVISIONS

NRS 374.785 Sales and use tax account: Remittances; deposits; transfers.

NRS 374.790 Remedies of county are cumulative.

NRS 374.795 Department’s authority to act for counties.

NRS 374.800 Indian reservations and colonies: Imposition and collection of sales tax.

NRS 374.805 Indian reservations and colonies: Restriction on collection of tax by department.

NRS 374.810 Rights of Indians not abridged.

NRS 374.815 Strict construction of certain provisions of chapter.

NRS 374.010 Short title. This chapter shall be known and may be cited as the Local School Support Tax Law.

(Added to NRS by 1967, 895)

NRS 374.015 Legislative finding and declaration. The legislature, having carefully considered the needs of the public school system and the financial resources of the State of Nevada, and its several classes of local governments, finds and declares:

1. That sound principles of government require an increased contribution by the local district, which controls its schools, to their support.

2. That such an increase equitably should not and economically cannot be provided through an increase in the tax upon property.

3. That there is no other object of taxation, except retail sales, which is so generally distributed among the several school districts in proportion to their respective population and wealth as to be suitable for the imposition of a tax in each school district for the support of its local schools.

4. That it is therefore necessary to impose, in addition to the sales and use taxes enacted in 1955 to provide revenue for the State of Nevada, a separate tax upon the privilege of selling tangible personal property at retail in each county to provide revenue for the school district comprising such county.

5. That in order to avoid imposing unfair competitive hardships upon merchants in the several counties, it is necessary that such additional tax be imposed:

(a) At the same rate in each county; and

(b) Upon tangible personal property purchased outside this state for use within the state.

6. That the imposition of such a tax at a mandatory and uniform rate throughout the counties of the state makes such tax a fair counterpart to the mandatory property tax levy which it is designed to supplement.

7. That the tax collected upon property purchased outside the state, which cannot for this reason be returned to its county of origin, can best serve its purpose of supporting local schools if it is channeled to the several school districts through the state distributive school account in the state general fund.

8. That the convenience of the public and of retail merchants will best be served by imposing the local school support tax upon exactly the same transactions, requiring the same reports and making such tax parallel in all respects to the sales and use taxes.

(Added to NRS by 1967, 895; A 1987, 418)

NRS 374.020 Definitions. Except where the context otherwise requires, the definitions given in NRS 374.025 to 374.107, inclusive, govern the construction of this chapter.

(Added to NRS by 1967, 895; A 1983, 445, 2059, 2065)

NRS 374.025 “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.

(Added to NRS by 1967, 895)

NRS 374.030 “Gross receipts” defined. [Effective through June 30, 2002.]

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 department 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 county or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.

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

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

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

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

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

(a) Cash discounts allowed and taken on sales.

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

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

(e) The amount of any allowance against the selling price given by a retailer for the value of:

(1) A used vehicle which is taken in trade on the purchase of another vehicle; or

(2) A used piece of farm machinery or equipment which is taken in trade on the purchase of another piece of farm machinery or equipment.

4. For purposes of the sales tax, if the retailers establish to the satisfaction of the department 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.

(Added to NRS by 1967, 895; A 1975, 1723; 1983, 2059; 1987, 903)

NRS 374.030 “Gross receipts” defined. [Effective July 1, 2002.]

(a) The cost of the property sold. However, in accordance with such rules and regulations as the department 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 county 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.

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

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

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

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

(a) Cash discounts allowed and taken on sales.

(b) 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.

(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.

(Added to NRS by 1967, 895; A 1975, 1723; 1983, 2059; 1987, 903; 2001, 824, effective July 1, 2002)

NRS 374.035 “In a county” defined. “In a county” means within the exterior limits of a county, and includes all territory within such limits owned by or ceded to the United States of America.

(Added to NRS by 1967, 896)

NRS 374.040 “Occasional sale” defined.

1. “Occasional sale,” except as otherwise provided in subsection 2, 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. The term does not include the sale of a vehicle other than the sale or transfer of a used vehicle to the seller’s spouse, child, grandchild, parent, grandparent, brother or sister. For the purposes of this section, the relation of parent and child includes adoptive and illegitimate children and stepchildren.

3. 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.

(Added to NRS by 1967, 896; A 1983, 2060)

NRS 374.050 “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.

(Added to NRS by 1967, 897)

NRS 374.055 “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. The terms do not include a sale of property that:

(a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of NRS 374.291;

(b) Is made available for sale within 2 years after it is acquired; and

(c) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

2. The delivery in a county 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 the county, is a retail sale in the county by the person making the delivery. He shall include the retail selling price of the property in his gross receipts.

(Added to NRS by 1967, 897; A 1999, 3204)

NRS 374.060 “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 any retail sale of a vehicle or more than two retail sales of other 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 department 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 department may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter.

(Added to NRS by 1967, 897; A 1975, 1724; 1977, 959; 1983, 2060; 1987, 2193)

NRS 374.065 “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 department to be in lieu of a transfer of title, exchange or barter.

3. “Sale” includes:

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

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

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

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

(Added to NRS by 1967, 898; A 1975, 1725)

NRS 374.070 “Sales price” defined.

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

(a) The cost of the property sold.

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

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

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

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

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

(a) Cash discounts allowed and taken on sales.

(b) The amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or credit; but this exclusion 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.

(e) The amount of any tax imposed by the State of Nevada upon or with respect to the storage, use or other consumption of tangible personal property purchased from any retailer.

(f) 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 the purpose of a sale of a vehicle by a seller who is not required to be registered with the department of taxation, the sales price is the value established in the manner set forth in NRS 374.112.

(Added to NRS by 1967, 898; A 1983, 2061; 1985, 1119, 1988)

NRS 374.075 “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.

(Added to NRS by 1967, 899)

NRS 374.080 “Storage” defined. “Storage” includes any keeping or retention in a county for any purpose except sale in the regular course of business or subsequent use solely outside the county of tangible personal property purchased from a retailer.

(Added to NRS by 1967, 899)

NRS 374.085 “Storage, use or other consumption”: Exclusion. “Storage, use or other consumption” does not include:

1. 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; or

2. The keeping, retaining or exercising any right or power over tangible property that:

(a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of NRS 374.291;

(b) Is made available for sale within 2 years after it is acquired; and

(Added to NRS by 1967, 899; A 1999, 3204)

NRS 374.090 “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.

(Added to NRS by 1967, 899)

NRS 374.100 “Taxpayer” defined. “Taxpayer” means any person liable for tax under this chapter.

(Added to NRS by 1967, 899)

NRS 374.107 “Vehicle” defined. “Vehicle” has the meaning ascribed to it in NRS 482.135.

(Added to NRS by 1983, 2058)

SALES TAX

NRS 374.110 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 2.25 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in a county.

(Added to NRS by 1967, 899; A 1981, 290; 1991, 2293)

NRS 374.112 Procedure for computing tax on sale of vehicle by seller who is not required to be registered.

1. For the purposes of this section, “authorized appraisal” means an appraisal of the value of a motor vehicle made by:

(a) An employee of the department of motor vehicles on its behalf;

(b) A county assessor or his employee as an agent of the department of motor vehicles;

(d) An independent appraiser authorized by the department of motor vehicles.

2. When computing the tax on the sale of a vehicle by a seller who is not required to be registered by the department of taxation, the department of motor vehicles or the county assessor as an agent of the department of taxation shall, if an authorized appraisal is submitted, use as the vehicle’s sales price the amount stated on the authorized appraisal or $100, whichever is greater.

3. The department of motor vehicles shall establish by regulation the procedure for appraising vehicles and establish and make available a form for an authorized appraisal.

4. The department of motor vehicles shall retain a copy of the appraisal considered pursuant to subsection 2 with its record of the collection of the tax.

5. A fee which does not exceed $10 may be charged and collected for each authorized appraisal made. Any money so collected by the department of motor vehicles for such an appraisal made by its employees must be deposited with the state treasurer to the credit of the motor vehicle fund. Any money so collected by a county assessor must be deposited with the county treasurer to the credit of the county’s general fund.

6. If an authorized appraisal is not submitted, the department of motor vehicles or the county assessor as an agent of the department of taxation shall establish the sales price as a value which is based on the depreciated value of the vehicle as determined in accordance with the schedule in NRS 374.113. To determine the original price from which the depreciation is calculated, the department of motor vehicles shall use:

(a) The manufacturer’s suggested retail price in Nevada, excluding options and extras, as of the time the particular make and year model is first offered for sale in Nevada;

(b) If the vehicle is specially constructed, the original retail price to the original purchaser of the vehicle as evidenced by such document or documents as the department may require;

(d) If none of these applies, its own estimate from any available information.

(Added to NRS by 1985, 1118; A 1985, 2003; 1991, 2167; 1993, 2332; 2001, 2602)

NRS 374.113 Schedule of depreciation for tax on sale of vehicle.

1. Except as provided in subsection 2, for the purpose of computing the tax on the sale of a vehicle by a seller who is not required to be registered with the department in the manner provided for in subsection 6 of NRS 374.112, a vehicle must be depreciated according to the following schedule:

Percentage of

Age Initial Value

New.............................................................................................................. 100 percent

1 year............................................................................................................. 85 percent

2 years........................................................................................................... 75 percent

3 years........................................................................................................... 65 percent

4 years........................................................................................................... 60 percent

5 years........................................................................................................... 55 percent

6 years........................................................................................................... 50 percent

7 years........................................................................................................... 45 percent

8 years........................................................................................................... 40 percent

9 years........................................................................................................... 35 percent

Percentage of

Age Initial Value

10 years......................................................................................................... 30 percent

11 years......................................................................................................... 25 percent

12 years......................................................................................................... 20 percent

13 years......................................................................................................... 15 percent

14 years or more........................................................................................... 10 percent

2. The amount of depreciation calculated under subsection 1 must be rounded to the nearest whole multiple of $20 and the depreciated value must not be reduced below $100.

(Added to NRS by 1983, 2058; A 1985, 1119)

NRS 374.115 Method of collection. The tax hereby imposed shall be collected by the retailer from the consumer insofar as it can be done.

(Added to NRS by 1967, 899)

NRS 374.120 Inference by retailer of his assumption or absorption of tax prohibited; penalty.

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.

(Added to NRS by 1967, 899)

NRS 374.125 Separate display of tax from list or other 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 1967, 899; A 1975, 1725)

NRS 374.128 Certain contracts must require person making sale to obtain permit.

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

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

(b) Has not obtained a permit pursuant to NRS 374.130 because he does not maintain a place of business within this state,

the contract must include a provision requiring the person to obtain a permit pursuant to NRS 374.130 and to agree to collect and pay the taxes imposed pursuant to this chapter on the sale of tangible personal property in any county in this state. For the purposes of the permit obtained pursuant to NRS 374.130, the person shall be deemed to have a place of business in each county in this state, but shall pay the fee for a single permit.

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, 1715)

NRS 374.130 Application for permit required: Form; contents; exception.

1. Every person desiring to engage in or conduct business as a seller within a county shall file with the department an application for a permit for each place of business, unless he intends to sell vehicles and will make fewer than three retail sales of vehicles during any 12‑month period.

2. Every application for a permit must:

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

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

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

(Added to NRS by 1967, 899; A 1975, 1725; 1983, 2062)

NRS 374.135 Fee for permit. At the time of making an application, the applicant shall pay to the department a permit fee of $1 for each permit.

(Added to NRS by 1967, 900; A 1975, 1726)

NRS 374.140 Issuance, assignability and display of permit; explanation of liability for collection and payment of taxes.

1. After compliance with NRS 374.130, 374.135 and 374.515 by the applicant, the department shall:

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

(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 therein. A permit must at all times be conspicuously displayed at the place for which it is issued.

(Added to NRS by 1967, 900; A 1975, 1726; 1999, 2497)

NRS 374.145 Fee for reinstatement of suspended or revoked permit. A seller whose permit has been previously suspended or revoked shall pay the department a fee of $1 for the renewal or issuance of a permit.

(Added to NRS by 1967, 900; A 1975, 1726)

NRS 374.150 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 shall 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 1967, 900; A 1969, 226; 1975, 1726; 1981, 145; 1985, 285)

NRS 374.160 Presumption of taxability; resale certificate. For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax it shall be 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 1967, 900)

NRS 374.165 Effect of resale certificate. The certificate relieves the seller from the burden of proof only if taken in good faith from a person who is engaged in the business of selling tangible personal property and who holds the permit provided for in NRS 374.130 to 374.185, inclusive, and who, at the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

(Added to NRS by 1967, 900)

NRS 374.170 Form and contents of resale certificate.

1. The certificate shall:

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

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

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

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

(Added to NRS by 1967, 901; A 1975, 1726)

NRS 374.175 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 shall be taxable to the purchaser as of the time the property is first used by him, and the sales price of the property to him shall be deemed the measure of the tax. Only when there is an unsatisfied use tax liability on this basis shall the seller be 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 1967, 901)

NRS 374.180 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 1967, 901)

NRS 374.185 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 1967, 901)

USE TAX

NRS 374.190 Imposition and rate.

1. An excise tax is hereby imposed on the storage, use or other consumption in a county of tangible personal property purchased from any retailer for storage, use or other consumption in the county at the rate of 2.25 percent of the sales price of the property.

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

(Added to NRS by 1967, 901; A 1981, 290; 1983, 445, 1951; 1991, 2293)

NRS 374.195 Liability for tax; extinguishment of liability. Every person storing, using or otherwise consuming in a county tangible personal property purchased from a retailer is liable for the tax. His liability is not extinguished until the tax has been paid to the county, except that a receipt from a retailer maintaining a place of business in the county or from a retailer who is authorized by the department under such 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 the county, given to the purchaser pursuant to NRS 374.200 is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

(Added to NRS by 1967, 901; A 1975, 1727)

NRS 374.200 Collection by retailer; purchaser’s receipt. Every retailer maintaining a place of business in a county and making sales of tangible personal property for storage, use or other consumption in the county, not exempted under NRS 374.265 to 374.355, 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 department.

(Added to NRS by 1967, 902; A 1975, 1727; 1987, 408)

NRS 374.205 Tax as debt to county. The tax required to be collected by the retailer constitutes a debt owed by the retailer to the county.

(Added to NRS by 1967, 902)

NRS 374.210 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.

(Added to NRS by 1967, 902)

NRS 374.215 Tax must be displayed separately from price. The tax required to be collected by the retailer from the purchaser shall 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 1967, 902)

NRS 374.220 Unlawful acts. Any person violating NRS 374.200, 374.210 or 374.215 is guilty of a misdemeanor.

(Added to NRS by 1967, 902)

NRS 374.225 Registration of retailers. Every retailer selling tangible personal property for storage, use or other consumption in a county shall register with the department and give:

1. The name and address of all agents operating in the county.

2. The location of all distribution or sales houses or offices or other places of business in the county.

3. Such other information as the department may require.

(Added to NRS by 1967, 902; A 1975, 1727)

NRS 374.230 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 shall be presumed that tangible personal property sold by any person for delivery in a county is sold for storage, use or other consumption in the county 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 1967, 902)

NRS 374.235 Effect of resale certificate. The certificate relieves the person selling the property from the burden of proof only if taken in good faith from a person who is engaged in the business of selling tangible personal property and who holds the permit provided for by NRS 374.130 to 374.185, inclusive, and who, at the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

(Added to NRS by 1967, 902)

NRS 374.240 Form and contents of resale certificate.

1. The certificate shall:

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

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

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

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

(Added to NRS by 1967, 902; A 1975, 1727)

NRS 374.245 Liability of purchaser giving resale certificate for 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 1967, 903)

NRS 374.250 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 1967, 903)

NRS 374.255 Presumption of purchase for use in this state. It shall be further presumed that tangible personal property shipped or brought to a county by the purchaser after July 1, 1967, was purchased from a retailer on or after July 1, 1967, for storage, use or other consumption in the county.

(Added to NRS by 1967, 903)

NRS 374.260 Presumption that property delivered outside this state to certain purchasers was purchased for use in this state.

1. Except as otherwise provided in NRS 374.263, on and after July 1, 1967, it is further presumed that tangible personal property delivered outside this state to a purchaser known by the retailer to be a resident of the county was purchased from a retailer for storage, use or other consumption in the county and stored, used or otherwise consumed in the county.

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 1967, 903; A 1975, 1727; 1999, 944)

NRS 374.263 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, 944)

EXEMPTIONS

NRS 374.265 “Exempted from the taxes imposed by this chapter” defined.“Exempted from the taxes imposed by this chapter,” as used in NRS 374.265 to 374.355, inclusive, means exempted from the computation of the amount of taxes imposed.

(Added to NRS by 1967, 903; A 1987, 408; 2001, 825, 1538)

NRS 374.270 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 a county 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.

(Added to NRS by 1967, 903)

NRS 374.275 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 a county of, the proceeds of mines which are subject to taxes levied pursuant to chapter 362 of NRS.

(Added to NRS by 1967, 903)

NRS 374.280 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 a county of, any combustible gas, liquid or material of a kind used in an internal-combustion or diesel engine for the generation of power to propel a motor vehicle on the highways.

(Added to NRS by 1967, 903)

NRS 374.285 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.

(Added to NRS by 1967, 904)

NRS 374.286 Farm machinery and equipment. [Effective July 1, 2002.]

1. 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 a county of, farm machinery and equipment employed for the agricultural use of real property.

2. As used in this section:

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

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

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

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

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

(Added to NRS by 2001, 824, effective July 1, 2002)

NRS 374.287 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 chapter the gross receipts from sales and the storage, use or other consumption of:

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

(b) Appliances and supplies relating to an ostomy.

(d) Any ophthalmic or ocular device or appliance prescribed by a physician or optometrist.

(e) 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 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.

(Added to NRS by 1969, 534; A 1985, 2029; 1987, 2194; 1993, 2228; 1995, 1009)

NRS 374.289 Food for human consumption.

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

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

(a) Alcoholic beverages.

(b) Pet foods.

(d) Prepared food intended for immediate consumption.

(Added to NRS by 1979, 431)

NRS 374.2891 Basis for determining exemption of food for human consumption. In administering the provisions of NRS 374.289, 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 374.290 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 a county 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.

(Added to NRS by 1967, 904)

NRS 374.291 Works of fine art for public display: General requirements.

1. Except as otherwise provided in NRS 374.2911, there are exempted from the taxes imposed by this chapter the gross receipts from the sales of, and the storage, use or other consumption in a county of, works of fine art for public display.

2. In determining whether a payment made pursuant to a lease of a work of fine art is exempt under subsection 1, the value for the purpose of paragraph (a) of subsection 4 is the value of the work and not the value of possession for the term of the lease, and the calendar or fiscal year described in paragraph (a) of subsection 4 is the first full calendar or fiscal year respectively, after the payment is made.

3. During the first full fiscal year following the purchase of fine art for which a taxpayer receives the exemption provided in this section, the taxpayer shall make available, upon written request and without charge to any public school as defined in NRS 385.007, private school as defined in NRS 394.103 and parent of a child who receives instruction in a home pursuant to NRS 392.070, one copy of a poster depicting the fine art that the facility has on public display and that the facility makes available for purchase by the public at the time of the request.

4. As used in this section:

(a) “Fine art for public display”:

(1) Except as otherwise provided in subparagraph (2), means a work of art which:

(I) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;

(II) Is purchased in an arm’s length transaction for $25,000 or more, or has an appraised value of $25,000 or more;

(III) Will be on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of the first full calendar year after the date on which it is purchased, or if the facility displaying the fine art disposes of it before the end of that year, during at least two-thirds of the full weeks during which the facility had possession of it, or if the gallery, museum, or other building or area in which the fine art will be displayed will not be opened until after the beginning of the first full calendar year after the date on which the fine art is purchased, these display requirements must instead be met for the first full fiscal year after the date of opening, and the date of opening must not be later than 2 years after the purchase of the fine art being displayed; and

(IV) Will be on display in a facility that is available for group tours by pupils or students for at least 5 hours on at least 60 days of the first full fiscal year after the purchase of the fine art, during which the facility in which it is displayed is open, by prior appointment and at reasonable times, without charge; and

(2) Does not include:

(I) A work of fine art that is a fixture or an improvement to real property;

(II) Materials purchased by an artist for consumption in the production of a work of art that is to be a fixture or an improvement to real property;

(III) A work of fine art that constitutes a copy of an original work of fine art, unless the work is a lithograph that is a limited edition and that is signed and numbered by the artist;

(IV) Products of filmmaking or photography, including, without limitation, motion pictures;

(V) Literary works;

(VI) Property used in the performing arts, including, without limitation, scenery or props for a stage; or

(VII) Property that was created for a functional use other than, or in addition to, its aesthetic qualities, including, without limitation, a classic or custom-built automobile or boat, a sign that advertises a business, and custom or antique furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.

(b) “Public display” means the display of a work of fine art where members of the public have access to the work of fine art for viewing during publicly advertised hours. The term does not include the display of a work of fine art in an area where the public does not generally have access, including, without limitation, a private office, hallway or meeting room of a business, a room of a business used for private lodging and a private residence.

(1) Is enrolled for the current academic year in a public school as defined in NRS 385.007 or a private school as defined in NRS 394.103; or

(2) Receives instruction in a home and is excused from compulsory attendance pursuant to NRS 392.070.

(d) “Student” means a person who is enrolled for the current academic year in:

(1) A community college or university; or

(2) A licensed postsecondary educational institution as defined in NRS 394.099 and a course concerning fine art.

(Added to NRS by 1997, 2980; A 1999, 3205; 2001, 229)

NRS 374.2911 Works of fine art for public display: Collection of admission fee for exhibition.

1. A taxpayer may collect an admission fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to NRS 374.291 if the taxpayer offers to residents of the State of Nevada a discount of 50 percent from any admission fee charged to nonresidents. The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.

2. If a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to NRS 374.291 and the fee is collected during the first full fiscal year after the purchase of the fine art, the exemption pertaining to that fine art must be reduced by the net revenue derived by the taxpayer for that first full fiscal year. The exemption pertaining to fine art must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that first full fiscal year.

3. Any tax due pursuant to this section must be paid with the first sales and use tax return otherwise required to be filed by the taxpayer following the 15th day of the fourth month after the end of the first full fiscal year following the purchase of the fine art or, if no sales and use tax return is otherwise required to be filed by the taxpayer, with a sales and use tax return filed specifically for this purpose on or before the last day of the fourth month after the end of the first full fiscal year following the purchase of the fine art.

4. A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the state arts council, the division of museums and history dedicated trust fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:

(a) Made the donation before the date that either return required pursuant to subsection 3 is due; and

(b) Provides the department documentation of the donation at the time that he files the return required pursuant to subsection 3.

5. For the purposes of this section:

(a) “Direct costs of owning and exhibiting the fine art” does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.

(b) “Net revenue” means the amount of the fees collected for exhibiting the fine art during the fiscal year less the following paid or made during the fiscal year:

(1) The direct costs of owning and exhibiting the fine art; and

(2) The cost of educational programs associated with the taxpayer’s public display of fine art, including the cost of meeting the requirements of subsubparagraph (IV) of subparagraph (1) of paragraph (a) of subsection 4 of NRS 374.291.

(Added to NRS by 1999, 3203; A 2001, 229)

NRS 374.292 Textbooks sold within University and Community College System of Nevada. There are exempted from the taxes imposed by this chapter the gross receipts from the sale of textbooks sold within the University and Community College System of Nevada.

(Added to NRS by 1989, 822; A 1993, 397)

NRS 374.295 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 a county 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.”

(Added to NRS by 1967, 904)

NRS 374.300 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 a county of, gas, electricity and water when delivered to consumers through mains, lines or pipes.

(Added to NRS by 1967, 904)

NRS 374.305 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 a county of, any matter used to produce domestic heat by burning, including, without limitation, wood, coal, petroleum and gas.

(Added to NRS by 1967, 904)

NRS 374.307 Product or system using renewable energy to generate electricity. [Effective January 1, 2002, through June 30, 2003.]

1. 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, any product or system designed or adapted to use renewable energy to generate electricity and all of its integral components.

2. As used in this section:

(a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

(1) Agricultural crops and agricultural wastes and residues;

(2) Wood and wood wastes and residues;

(3) Animal wastes;

(4) Municipal wastes; and

(5) Aquatic plants.

(b) “Fuel cell” means a device or contrivance that, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

(c) “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

(1) Biomass;

(2) Fuel cells;

(3) Geothermal energy;

(4) Solar energy;

(5) Waterpower; and

(6) Wind.

The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

(d) “System designed or adapted to use renewable energy to generate electricity” means a system of related components:

(1) From which at least 75 percent of the electricity generated is produced from one or more sources of renewable energy; and

(2) That is designed to work as an integral package such that the system is not complete without one of its related components.

(Added to NRS by 2001, 1537, effective January 1, 2002, through June 30, 2003)

NRS 374.310 Personal property used for performance of contract on public works.

1. 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 a county of, tangible personal property used for the performance of a contract on public works executed prior to July 1, 1967.

2. There are exempted from the additional taxes imposed by amendment to this chapter the gross receipts from the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a contract on public works which was executed prior to May 1, 1981, or for which a binding bid was submitted before that date if the bid was afterward accepted.

(Added to NRS by 1967, 904; A 1981, 290, 1017)

NRS 374.315 Personal property used for performance of certain written contracts.

2. There are exempted from the additional taxes imposed by amendment to this chapter the gross receipts from the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for construction entered into before May 1, 1981.

3. There are exempted from the additional taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for construction of an improvement to real property, entered into before July 30, 1991, or for which a binding bid was submitted before that date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the additional taxes.

(Added to NRS by 1967, 904; A 1981, 291, 1243; 1993, 1370)

NRS 374.320 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 a county 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.

(Added to NRS by 1967, 905; A 1969, 534)

NRS 374.321 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.

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.

(Added to NRS by 1987, 821)

NRS 374.322 Aircraft, aircraft engines and component parts of aircraft. There are exempted from the taxes imposed by this chapter the gross receipts from the sale, and the storage, use or other consumption in this state of:

1. Aircraft, aircraft engines and component parts of aircraft or aircraft engines which are manufactured exclusively for use in aircraft, sold or purchased for lease to a commercial air carrier for use in the transportation of persons or property in intrastate, interstate or foreign commerce pursuant to a certificate or license issued to the air carrier authorizing such transportation; and

2. Machinery, tools and other equipment and parts which are used exclusively in the repair, remodeling or maintenance of aircraft, aircraft engines or component parts of aircraft or aircraft engines which meet the requirements of subsection 1.

(Added to NRS by 1985, 1442; A 1995, 1465)

NRS 374.323 Engines, chassis, parts and components of professional racing vehicles; certain vehicles used by professional racing team or sanctioning body.

1. 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:

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

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

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

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

2. As used in this section:

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

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

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

(Added to NRS by 2001, 739)

NRS 374.325 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 a county of tangible personal property, the transfer of which to the purchaser is an occasional sale.

(Added to NRS by 1967, 905)

NRS 374.330 Personal property sold 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.

(Added to NRS by 1967, 905; A 1995, 1440)

NRS 374.3305 Personal property sold by or to nonprofit organization created for religious, charitable or educational purposes. 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, any tangible personal property sold by or to a nonprofit organization created for religious, charitable or educational purposes.

(Added to NRS by 1995, 1439)

NRS 374.3306 Requirements for organization created for religious, charitable or educational purposes.

1. For the purposes of NRS 374.3305, an organization is created for religious, charitable or educational purposes if it complies with the provisions of this section.

2. An organization is created for religious purposes if:

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

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

3. An organization is created for charitable purposes if:

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

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

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

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

4. An organization is created for educational purposes if:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(Added to NRS by 1995, 1439; A 1999, 966)

NRS 374.3307 Procedure for claim of exemption by nonprofit organization created for religious, charitable or educational purposes; regulations.

1. Any nonprofit organization created for religious, charitable or educational purposes that wishes to claim an exemption pursuant to NRS 374.3305 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 374.3305 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, 1440)

NRS 374.331 Personal property loaned or donated 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.

(Added to NRS by 1987, 408)

NRS 374.335 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.

(Added to NRS by 1967, 905)

NRS 374.340 Property shipped outside state pursuant to sales contract.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.

(Added to NRS by 1967, 905)

NRS 374.345 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 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.

(Added to NRS by 1967, 905; A 1983, 445)

NRS 374.350 Property on which tax on retail sale paid. The storage, use or other consumption in a county 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.

(Added to NRS by 1967, 906)

NRS 374.355 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.

(Added to NRS by 1967, 906)

ABATEMENTS

NRS 374.357 Abatement for eligible machinery or equipment used by certain new or expanded businesses. [Effective through June 30, 2005.]

1. A person who maintains a business or intends to locate a business in this state may, pursuant to NRS 360.750, apply to the commission on economic development for an abatement from the taxes imposed by this chapter on the gross receipts from the sale, and the storage, use or other consumption, of eligible machinery or equipment for use by a business which has been approved for an abatement pursuant to NRS 360.750.

2. Except as otherwise provided in subsection 3, if an application for an abatement is approved pursuant to NRS 360.750:

(a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for not more than 2 years.

(b) The abatement must be administered and carried out in the manner set forth in NRS 360.750.

3. If an application for an abatement is approved pursuant to NRS 360.750 for a facility for the generation of electricity from renewable energy:

(a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for 2 years.

(b) The abatement must be administered and carried out in the manner set forth in NRS 360.750.

4. As used in this section, unless the context otherwise requires:

(a) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

(1) Agricultural crops and agricultural wastes and residues;

(2) Wood and wood wastes and residues;

(3) Animal wastes;

(4) Municipal wastes; and

(5) Aquatic plants.

(b) “Eligible machinery or equipment” means:

(1) If the business that qualifies for the abatement is not a facility for the generation of electricity from renewable energy, machinery or equipment for which a deduction is authorized pursuant to 26 U.S.C. § 179. The term does not include:

(I) Buildings or the structural components of buildings;

(II) Equipment used by a public utility;

(III) Equipment used for medical treatment;

(IV) Machinery or equipment used in mining; or

(V) Machinery or equipment used in gaming.

(2) If the business that qualifies for the abatement is a facility for the generation of electricity from renewable energy, all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.

(c) “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

(1) Uses renewable energy as its primary source of energy; and

(2) Has a generating capacity of at least 10 kilowatts.

The term includes all the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity. The term does not include a facility that is located on residential property.

(d) “Fuel cell” means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

(e) “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

(1) Biomass;

(2) Fuel cells;

(3) Geothermal energy;

(4) Solar energy;

(5) Waterpower; and

(6) Wind.

The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

(Added to NRS by 1995, 744; A 1999, 1748; 2001, 1583)

NRS 374.357 Abatement for eligible machinery or equipment used by certain new or expanded businesses. [Effective July 1, 2005.]

2. If an application for an abatement is approved pursuant to NRS 360.750:

(a) The taxpayer is eligible for an abatement from the tax imposed by this chapter for not more than 2 years.

(b) The abatement must be administered and carried out in the manner set forth in NRS 360.750.

3. As used in this section, unless the context otherwise requires, “eligible machinery or equipment” means machinery or equipment for which a deduction is authorized pursuant to 26 U.S.C. § 179. The term does not include:

(a) Buildings or the structural components of buildings;

(b) Equipment used by a public utility;

(d) Machinery or equipment used in mining; or

(e) Machinery or equipment used in gaming.

(Added to NRS by 1995, 744; A 1999, 1748; 2001, 1583, effective July 1, 2005)

RETURNS AND PAYMENTS

NRS 374.359 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, 1068)

NRS 374.360 Date tax due. Except as provided in NRS 374.385, 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 1967, 906; A 1975, 1728; 1981, 291)

NRS 374.365 Return: Time for filing; persons required to file; signatures.

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

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

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

(Added to NRS by 1967, 906; A 1975, 1728; 1981, 291)

NRS 374.370 Contents of return; deductions for uncollected sales price; penalties.

1. For the purposes of the sales tax:

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

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

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

2. For purposes of the use tax:

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

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

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

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

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

5. If a retailer:

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

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

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

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

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

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

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

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

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

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

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

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

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

(Added to NRS by 1967, 906; A 1975, 1728; 1995, 1972, 2556; 1997, 647, 1106)

NRS 374.375 Reimbursement to taxpayer for collection of tax. The taxpayer shall deduct and withhold from the taxes otherwise due from him 1.25 percent thereof to reimburse himself for the cost of collecting the tax.

(Added to NRS by 1967, 906; A 1981, 291; 1991, 2294)

NRS 374.380 Delivery of return; remittance. The person required to file the return shall deliver the return together with a remittance of the amount of the tax due to the department.

(Added to NRS by 1967, 906; A 1975, 1728)

NRS 374.385 Periods for returns.

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

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

(Added to NRS by 1967, 906; A 1975, 1728; 1981, 291, 910)

NRS 374.388 Presumption of payment: Certificate of ownership for used manufactured home or used mobile home.

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

2. As used in this section, “manufactured home” and “mobile home” have the meanings ascribed to them in NRS 374.321.

(Added to NRS by 1989, 960; A 1993, 1578; 2001, 2602)

NRS 374.390 Lease and rental receipts: Reporting; payment. For the purposes of the sales tax, gross receipts from rentals or leases of tangible personal property shall be reported and the tax paid in accordance with such regulations as the department may prescribe.

(Added to NRS by 1967, 907; A 1975, 1729)

NRS 374.395 Affixing and canceling of revenue stamps. The department, if it deems it necessary to insure the collection of the taxes, may provide by regulation for the collection of the taxes by the affixing and canceling of revenue stamps and may prescribe the form and method of the affixing and canceling.

(Added to NRS by 1967, 907; A 1975, 1729)

NRS 374.400 Extension of time for filing return and paying tax. The department for good cause may extend for not to exceed 1 month the time for making any return or paying any amount required to be paid under this chapter.

(Added to NRS by 1967, 907; A 1975, 1729; 1985, 950)

NRS 374.402 Deferral of payment.

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

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

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

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

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

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

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

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

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

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

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

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

5. The Nevada tax commission shall adopt regulations governing:

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

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

(Added to NRS by 1985, 2024; A 1989, 215)

NRS 374.403 Collection and payment of tax by responsible person; joint and several liability.

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

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

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

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

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

(Added to NRS by 1995, 1068)

SECURITY

NRS 374.515 Authority of department; amount; sales; return of surplus.

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

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

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

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

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

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

(Added to NRS by 1967, 910; A 1975, 1731; 1981, 292, 910; 1985, 1180)

OVERPAYMENTS AND REFUNDS

NRS 374.635 Certification of excess amount collected; credit and refund; overpayment of use tax by purchaser.

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

2. Any overpayment of the use tax by a purchaser to a retailer who is required to collect the tax and who gives the purchaser a receipt therefor pursuant to NRS 374.190 to 374.260, inclusive, and 374.727, must be credited or refunded by the county.

(Added to NRS by 1967, 916; A 1975, 1736; 1995, 1973)

NRS 374.640 Limitations on claims for refund or credit. Except as otherwise provided in NRS 360.235 and 360.395:

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

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

(Added to NRS by 1967, 916; A 1975, 1736; 1981, 293; 1983, 475; 1991, 1408; 1995, 1069)

NRS 374.643 Credit or refund of tax for business within zone for economic development.

1. Each person who holds a valid certificate, issued under NRS 274.270, as a qualified business within a specially benefited zone may file for a credit or refund to recover the amount of tax paid under this chapter for all tangible personal property purchased in the conduct of its business for the period, not to exceed 5 years, stated in its agreement with the city or county, as the case may be, made under NRS 274.270, or until the person is no longer certified as a qualified business under that section, whichever occurs first.

2. Claims for credit or refund may be filed under this section only if:

(a) The city or county which designated the specially benefited zone has adopted an ordinance authorizing such claims; and

(b) This benefit is specified in the agreement made under NRS 274.270.

(Added to NRS by 1983, 1996)

NRS 374.645 Credit or refund for use tax: Reimbursement of vendor for sales tax. No credit or refund of any amount paid pursuant to NRS 374.190 to 374.260, inclusive, and 374.727 may be allowed on the ground that the storage, use or other consumption of the property is exempted pursuant to NRS 374.350, unless the person who paid the amount reimburses his vendor for the amount of the sales tax imposed upon his vendor with respect to the sale of the property and paid by the vendor to the county.

(Added to NRS by 1967, 916; A 1995, 1973)

NRS 374.650 Form and contents of claim for credit or refund. Every claim shall be in writing and shall state the specific grounds upon which the claim is founded.

(Added to NRS by 1967, 916)

NRS 374.655 Failure to file claim constitutes waiver. Failure to file a claim within the time prescribed in NRS 374.640 constitutes a waiver of any demand against the county on account of overpayment.

(Added to NRS by 1967, 916)

NRS 374.660 Service of notice of disallowance of claim. Within 30 days after disallowing any claim in whole or in part, the department shall serve notice of its action on the claimant in the manner prescribed for service of notice of a deficiency determination.

(Added to NRS by 1967, 916; A 1975, 1736)

NRS 374.665 Interest on overpayments.

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

2. The interest must be paid as follows:

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

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

(Added to NRS by 1967, 916; A 1975, 1736; 1981, 293; 1999, 2498)

NRS 374.670 Disallowance of interest. If the department determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.

(Added to NRS by 1967, 917; A 1975, 1737)

NRS 374.675 Injunction or other process to prevent collection of tax prohibited. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state, a county, any officer thereof to prevent or enjoin the collection under this chapter of any tax or any amount of tax required to be collected.

(Added to NRS by 1967, 917)

NRS 374.680 Action for refund: Claim as condition precedent. No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been duly filed.

(Added to NRS by 1967, 917)

NRS 374.685 Action for refund: Time to sue; venue of action; waiver.

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

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

(Added to NRS by 1967, 917; A 1969, 287; 1975, 1737; 1999, 2499)

NRS 374.690 Right of appeal on failure of department to mail notice of action on claim. If the department fails to mail notice of action on a claim within 6 months after the claim is filed, the claimant may consider the claim disallowed and file an appeal with a hearing officer within 45 days after the last day of the 6-month period. If the claimant is aggrieved by the decision of the hearing officer on appeal, he may, pursuant to the provisions of NRS 360.245, appeal the decision to the Nevada tax commission. If the claimant is aggrieved by the decision of the commission on appeal, he may, within 45 days after the decision is rendered, bring an action against the department on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

(Added to NRS by 1967, 917; A 1975, 1737; 1999, 2499)

NRS 374.695 Judgment for plaintiff: Credits; refund of balance.

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

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

(b) If the judgment is for a refund of use taxes, it must be credited on any use tax or amount of use tax due from the plaintiff pursuant to NRS 374.190 to 374.260, inclusive, and 374.727.

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

(Added to NRS by 1967, 917; A 1995, 1974)

NRS 374.700 Allowance of interest. In any judgment, interest shall be allowed at the rate of 6 percent per annum upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment, or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the department.

(Added to NRS by 1967, 917; A 1975, 1737)

NRS 374.705 Standing to recover. A judgment shall not be rendered in favor of the plaintiff in any action brought against the department to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.

(Added to NRS by 1967, 917; A 1975, 1737)

NRS 374.710 Recovery of erroneous refunds: Action; jurisdiction and venue. The department may recover any refund or part thereof which is erroneously made and any credit or part thereof which is erroneously allowed in an action brought in a court of competent jurisdiction in the county to which the refund is owed, in the name of such county.

(Added to NRS by 1967, 918; A 1975, 1737)

NRS 374.715 District attorney to prosecute action for recovery of erroneous refund; applicability of NRS, N.R.C.P. and N.R.A.P. The district attorney of the county to which the refund is owed, on behalf of the county, shall prosecute the action, and the provisions of NRS and the Nevada Rules of Civil Procedure and Nevada Rules of Appellate Procedure relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceedings.

(Added to NRS by 1967, 918)

NRS 374.720 Cancellation of illegal determination: Procedure; limitation.

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

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

(Added to NRS by 1967, 918; A 1975, 1737)

ADMINISTRATION

NRS 374.725 Enforcement by department; adoption of regulations.

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

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

(Added to NRS by 1967, 918; A 1975, 1738)

NRS 374.727 Calculation of tax imposed on use or other consumption of meals provided by employer. In administering the provisions of this chapter, the department shall, pursuant to NRS 374.190, calculate the amount of tax imposed on the use or other consumption of meals provided by an employer to his employee based on the cost of the specific components of those meals if:

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

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

(Added to NRS by 1995, 1972)

NRS 374.7273 Application of exemption for sale of personal property for shipment outside state to include sale of motor vehicle to certain nonresidents. [Effective through June 30, 2002.] In administering the provisions of NRS 374.340, the department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include the sale of a vehicle to a nonresident to whom a special movement permit has been issued by the department of motor vehicles pursuant to subsection 1 of NRS 482.3955.

(Added to NRS by 1997, 181; A 2001, 2603)

NRS 374.7273 Application of exemption for sale of personal property for shipment outside state to include sale to certain nonresidents of motor vehicles and farm machinery and equipment. [Effective July 1, 2002.] In administering the provisions of NRS 374.340, the department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include:

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

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

(Added to NRS by 1997, 181; A 2001, 825, 2603, effective July 1, 2002)

NRS 374.7275 Calculation of tax imposed on retail sale of large appliances.

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

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

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

2. As used in this section:

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

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

(Added to NRS by 1997, 913)

NRS 374.728 Construction of “retailer maintaining place of business in county.” In administering the provisions of this chapter, the department shall construe the term “retailer maintaining a place of business in a county” to include:

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

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

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

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

5. A retailer who, pursuant to a contract with a broadcaster or publisher located in the state, solicits orders for tangible personal property by means of advertising

which is disseminated primarily to persons located in the state and only secondarily to bordering jurisdictions, and which is disseminated to persons located in the county.

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

7. A retailer owned or controlled by the same persons who own or control a retailer who maintains a place of business in the same or a similar line of business in the county.

8. A retailer having a person operating under its trade name, pursuant to a franchise or license authorized by the retailer, if the person so operating is required to collect the tax pursuant to NRS 374.200.

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

(Added to NRS by 1989, 1508; A 2001, 1716)

NRS 374.729 Application of NRS 374.330 to transfer of property to governmental entities pursuant to certain agreements. In administering the provisions of NRS 374.330, the department shall apply the exemption for the sale of tangible personal property to the State of Nevada, its unincorporated agencies and instrumentalities, to include all tangible personal property that is transferred for use by a state entity in accordance with an agreement executed pursuant to NRS 353.500 to 353.630, inclusive.

(Added to NRS by 2001, 2482)

NRS 374.731 Application of NRS 374.330 to sale of certain medical devices to governmental entities.

1. In administering the provisions of NRS 374.330, the department shall apply the exemption to the sale of a medical device to a governmental entity that is exempt pursuant to that section without regard to whether the person using the medical device or the governmental entity that purchased the device is deemed to be the holder of title to the device if:

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

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

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

2. As used in this section:

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

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

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

(Added to NRS by 2001, 1294)

NRS 374.732 Taxation of photographers: Furnishing of proofs considered to be rendition of service. In administering the provisions of this chapter, the department shall not consider the furnishing of one or more proofs by a photographer to a customer as a sale of tangible personal property but rather as part of the rendition of the photographer’s service, whether or not a separate charge is made for furnishing the proof.

(Added to NRS by 1999, 1262)

NRS 374.735 Employment of accountants, investigators and other persons; delegation of authority. The department may employ accountants, auditors, investigators, assistants and clerks necessary for the efficient administration of this chapter, and may delegate authority to its representatives to conduct hearings, prescribe regulations or perform any other duties imposed by this chapter.

(Added to NRS by 1967, 918; A 1975, 1738)

NRS 374.738 Certain broadcasters, printers, advertising firms, distributors and publishers deemed agents and retailers maintaining place of business in this state.

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

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

(Added to NRS by 1989, 1508)

NRS 374.739 Certain broadcasting activities not taxable transactions. In administering the provisions of this chapter, the department shall not consider the activities of persons that are directly related to the process of transmitting radio, television, cable television or data signals, including the transmission of news or information by data signal, the transmission of signals from one broadcaster to another and from a broadcaster to a member of the public and including the production and airing of any form of speech or broadcast by radio or television, whether or not compensation is provided to the broadcaster in connection therewith, to be transactions that are taxable pursuant to the provisions of this chapter.

(Added to NRS by 1993, 2744)

NRS 374.740 Records to be kept by sellers, retailers and others.

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

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

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

(Added to NRS by 1967, 918; A 1975, 1738)

NRS 374.745 Examination of records; investigation of business. The department, or any person authorized in writing by it, may examine the books, papers, records and equipment of any person selling tangible personal property and any person liable for the use tax and may investigate the character of the business of the person in order to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid.

(Added to NRS by 1967, 919; A 1975, 1738)

NRS 374.750 Reports for administering tax on use: Contents. In administration of the use tax, the department may require the filing of reports by any person or class of persons having in his or their possession or custody information relating to sales of tangible personal property, the storage, use or other consumption of which is subject to the tax. The report shall:

1. Be filed when the department requires.

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

(Added to NRS by 1967, 919; A 1975, 1738)

NRS 374.755 Disclosure of information unlawful; exceptions.

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

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

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

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

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

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

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

(Added to NRS by 1967, 919; A 1975, 1738; 1983, 317, 764; 1989, 1161; 1995, 1069, 1579; 1999, 2499)

PENALTIES

NRS 374.760 Failure to make return or furnish data. Any retailer or other person who fails or refuses to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the department, or who renders a false or fraudulent return, shall be fined not more than $500 for each offense.

(Added to NRS by 1967, 919; A 1975, 1739; 1985, 286)

NRS 374.765 False or fraudulent return. Any person required to make, render, sign or verify any report who makes any false or fraudulent return, with intent to defeat or evade the determination of an amount due required by law to be made, shall for each offense be fined not less than $300 nor more than $5,000, or be imprisoned for not exceeding 1 year in the county jail, or be subject to both fine and imprisonment.

(Added to NRS by 1967, 919)

NRS 374.770 Other violations of chapter. Any violation of this chapter, except as otherwise provided, is a misdemeanor.

(Added to NRS by 1967, 920)

NRS 374.775 Statute of limitations. Any prosecution for violation of any of the penal provisions of this chapter shall be instituted within 3 years after the commission of the offense.

(Added to NRS by 1967, 920)

NRS 374.780 Application of doctrine of res judicata. In the determination of any case arising under this chapter, the rule of res judicata is applicable only if the liability involved is for the same period as was involved in another case previously determined.

(Added to NRS by 1967, 920; A 1981, 293)

MISCELLANEOUS PROVISIONS

NRS 374.785 Sales and use tax account: Remittances; deposits; transfers.

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

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

3. The state controller, acting upon the collection data furnished by the department, shall, each month, from the sales and use tax account in the state general fund:

(a) Transfer .75 percent of all fees, taxes, interest and penalties collected in each county during the preceding month to the appropriate account in the state general fund as compensation to the state for the costs of collecting the tax.

(b) Transfer .75 percent of all fees, taxes, interest and penalties collected during the preceding month from out-of-state businesses not maintaining a fixed place of business within this state to the appropriate account in the state general fund as compensation to the state for the costs of collecting the tax.

(c) Determine for each county the amount of money equal to the fees, taxes, interest and penalties collected in the county pursuant to this chapter during the preceding month less the amount transferred pursuant to paragraph (a).

(d) Transfer the total amount of taxes collected pursuant to this chapter during the preceding month from out-of-state businesses not maintaining a fixed place of business within this state, less the amount transferred pursuant to paragraph (b), to the state distributive school account in the state general fund.

(e) Except as otherwise provided in NRS 387.528, transfer the amount owed to each county to the intergovernmental fund and remit the money to the credit of the county school district fund.

4. For the purpose of the distribution required by this section, the occasional sale of a vehicle shall be deemed to take place in the county to which the governmental services tax payable by the buyer upon that vehicle is distributed.

(Added to NRS by 1967, 920; A 1971, 649, 2088; 1975, 1739; 1981, 259, 294, 303, 304, 1778; 1983, 2062; 1987, 418, 1427; 1989, 313; 1991, 2168; 1993, 1992; 1997, 459, 2714; 1999, 599, 1907; 2001, 295)

NRS 374.790 Remedies of county are cumulative. The remedies of a county provided for in this chapter are cumulative, and no action taken by the department, the attorney general or a district attorney constitutes an election by the county to pursue any remedy to the exclusion of any other remedy for which provision is made in this chapter.

(Added to NRS by 1967, 920; A 1975, 1740)

NRS 374.795 Department’s authority to act for counties. In all proceedings under this chapter the department may act for and on behalf of the counties of the State of Nevada.

(Added to NRS by 1967, 920; A 1975, 1740)

NRS 374.800 Indian reservations and colonies: Imposition and collection of sales tax.

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

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

(Added to NRS by 1989, 1109)

NRS 374.805 Indian reservations and colonies: Restriction on collection of tax by department. The department of taxation shall not collect the tax imposed by this chapter on the sale of tangible personal property on an Indian reservation or Indian colony on which a tax has been imposed pursuant to NRS 374.800 if:

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

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

(Added to NRS by 1989, 1109)

NRS 374.810 Rights of Indians not abridged. Nothing in this chapter abridges the rights of any Indian, individual or tribe, or infringes upon the sovereignty of any Indian tribe, organized under the Indian Reorganization Act (25 U.S.C. §§ 476 et seq.).

(Added to NRS by 1989, 1109)

NRS 374.815 Strict construction of certain provisions of chapter. The imposition of taxes by this chapter, the categories of transactions upon which taxes are imposed and the specification of exemptions are exclusive. The Nevada tax commission and the department shall not construe any provision of this chapter to authorize the imposition of a tax imposed by this chapter upon any transaction not expressly made taxable by this chapter.

(Added to NRS by 1999, 1312)