Nevada Senate Bill SB396 Latest Draft

                            REQUIRES TWO-THIRDS MAJORITY VOTE   
  (§§ 24, 27, 33, 107)  
  	S.B. 396 
 
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SENATE BILL NO. 396–SENATOR NEAL 
 
MARCH 27, 2023 
____________ 
 
Referred to Committee on Revenue and  
Economic Development 
 
SUMMARY—Imposes a tax on the retail sale of certain digital 
products. (BDR 32-6) 
 
FISCAL NOTE: Effect on Local Government: Increases or Newly 
Provides for Term of Imprisonment in County or City 
Jail or Detention Facility. 
 Effect on the State: Yes. 
 
~ 
 
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. 
 
 
AN ACT relating to taxation; providing for the imposition, 
administration, collection and enforcement of a tax on 
certain digital products electronically transferred to a 
purchaser; providing penalties; and providing other 
matters properly relating thereto. 
Legislative Counsel’s Digest: 
 Sections 24 and 33 of this bill impose a tax on a retail sale in this State of 1 
specified digital products electronically transferred to a person and on the use of 2 
specified digital products electronically transferred to a person in a transaction in 3 
this State for which the tax was not collected at the time of sale. Section 23 of this 4 
bill establishes requirements for determining the place where a sale of specified 5 
digital products takes place for the purpose of the tax. Under sections 24 and 33, 6 
the rate of the tax is the same as the sales and use tax rate imposed in the county 7 
determined pursuant to section 24. Under section 100 of this bill, the requirement 8 
to impose, collect and remit the tax is imposed on a retailer if, in the immediately 9 
preceding calendar year or the current calendar year, the retailer had more than a 10 
$100,000 of gross revenue from certain transactions that took place in this State or 11 
200 or more such transactions that took place in this State. Sections 1-22, 25-32, 12 
34-99 and 101-117 of this bill provide for the administration, collection and 13 
enforcement of the tax in the same manner as the sales and use tax. Section 131 of 14 
this bill establishes January 1, 2024, as the effective date of this bill. 15 
 Section 94 of this bill requires a person who directly or indirectly facilitates 16 
retail sales of specified digital products to collect and remit the tax if, in the 17 
immediately preceding calendar year or the current calendar year, the facilitator had 18 
more than $100,000 of gross receipts from certain transactions made to customers 19 
in this State or made or facilitated 200 or more transactions, on its own behalf or on 20 
behalf of a seller, unless the facilitator enters into an agreement with a seller 21   
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whereby the seller agrees to assume responsibility for the collection and imposition 22 
of the tax. Section 95 of this bill provides that such a facilitator is not liable for the 23 
payment of the tax under certain circumstances. 24 
 Section 96 of this bill requires certain persons who receive a fee in exchange 25 
for listing or advertising a product for a seller but do not collect money or other 26 
consideration from a customer to impose, collect and remit the tax if 200 or more 27 
retail sales to customers in this State result from referrals made by the person or the 28 
cumulative gross receipts of sales resulting from such referrals exceed $100,000, 29 
unless the person complies with certain notice requirements and makes a monthly 30 
report to the Department of Taxation. 31 
 Sections 118-128 of this bill make conforming changes. 32 
 
 
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN 
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 
 
 Section 1.  Title 32 of NRS is hereby amended by adding 1 
thereto a new chapter to consist of the provisions set forth as 2 
sections 2 to 117, inclusive, of this act. 3 
 Sec. 2.  As used in this chapter, unless the context otherwise 4 
requires, the words and terms defined in sections 3 to 22, 5 
inclusive, of this act have the meanings ascribed to them in those 6 
sections. 7 
 Sec. 3.  “Business” includes any activity engaged in by any 8 
person or caused to be engaged in by any person with the object of 9 
gain, benefit or advantage, either direct or indirect. 10 
 Sec. 4.  “Computer software” means a set of coded 11 
instructions designed to cause a computer or automatic data 12 
processing equipment to perform a task. 13 
 Sec. 5.  “Digital audio works” means works that result from 14 
the fixation of a series of musical, spoken or other sounds, 15 
including, without limitation, ringtones. 16 
 Sec. 6.  “Digital audio-visual works” means a series of 17 
related images which, when shown in succession, impart an 18 
impression of motion, together with accompanying sounds, if any. 19 
 Sec. 7.  “Digital books” means works that are generally 20 
recognized in the ordinary and usual sense as “books.” 21 
 Sec. 8.  “Electronically transferred” means obtained by the 22 
purchaser by means other than tangible storage media. 23 
 Sec. 9.  “End user” means any person who receives a 24 
specified digital product, other than a person who receives by 25 
contract a specified digital product for further commercial 26 
broadcast, rebroadcast, transmission, retransmission, licensing, 27 
relicensing, distribution, redistribution or exhibition of the 28 
specified digital product, in whole or in part, to another person or 29 
persons. 30   
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 Sec. 10.  1. “Gross receipts” means the total amount of the 1 
sales price or lease or rental price, as the case may be, of the retail 2 
sales of specified digital products of retailers of specified digital 3 
products, valued in money, whether received in money or 4 
otherwise, without any deduction on account of any of the 5 
following: 6 
 (a) The cost of the specified digital products sold, except that, 7 
in accordance with such rules and regulations as the Department 8 
may prescribe, a deduction may be taken if the retailer has 9 
purchased specified digital products for some other purpose than 10 
resale, has reimbursed the vendor of the specified digital products 11 
for tax which the vendor is required to pay to the State or has paid 12 
the use tax with respect to the specified digital products, and has 13 
resold the specified digital products before making any use of the 14 
specified digital products other than the broadcast, rebroadcast, 15 
transmission, retransmission, licensing, relicensing, distributing, 16 
redistributing or exhibition in the regular course of business. If 17 
such a deduction is taken by the retailer, no refund or credit will 18 
be allowed to the vendor of the specified digital products with 19 
respect to the sale of the specified digital products. 20 
 (b) The cost of the materials used, labor or service cost, 21 
interest paid, losses or any other expense. 22 
 2. The total amount of the sales or lease or rental price 23 
includes all of the following: 24 
 (a) Any services that are a part of the sale. 25 
 (b) All receipts, cash, credits and property of any kind. 26 
 (c) Any amount for which credit is allowed by the seller to the 27 
purchaser. 28 
 3. “Gross receipts” does not include any of the following: 29 
 (a) Cash discounts allowed and taken on sales. 30 
 (b) The sales price of specified digital products returned by 31 
customers when the full sales price is refunded either in cash or 32 
credit, but this exclusion does not apply in any instance when the 33 
customer, in order to obtain the refund, is required to purchase 34 
other specified digital products at a price greater than the amount 35 
charged for the specified digital products that are returned. 36 
 (c) The price received for labor or services used in installing or 37 
applying the specified digital products sold. 38 
 (d) The amount of any tax imposed by the United States upon 39 
or with respect to retail sales, whether imposed upon the retailer or 40 
the end user. 41 
 4. For purposes of the tax imposed by section 24 of this act, if 42 
a retailer establishes to the satisfaction of the Department that the 43 
tax has been added to the total amount of the sales price and has 44 
not been absorbed by the retailer, the total amount of the sales 45   
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price shall be deemed to be the amount received exclusive of the 1 
tax imposed. 2 
 Sec. 11.  “In this State” or “in the State” means within the 3 
exterior limits of the State of Nevada and includes all territory 4 
within these limits owned by or ceded to the United States of 5 
America. 6 
 Sec. 12.  1. “Occasional sale” includes: 7 
 (a) A sale of specified digital products not held or used by a 8 
seller in the course of an activity for which the seller is required to 9 
hold a seller’s permit, if the sale is not one of a series of sales 10 
sufficient in number, scope and character to constitute an activity 11 
requiring the holding of a seller’s permit. 12 
 (b) Any transfer of all or substantially all the specified digital 13 
products held or used by a person in the course of such an activity 14 
when after such transfer the real or ultimate ownership of such 15 
property is substantially similar to that which existed before such 16 
transfer. 17 
 2. For the purposes of this section, stockholders, 18 
bondholders, partners or other persons holding an interest in a 19 
corporation or other entity are regarded as having the “real or 20 
ultimate ownership” of the specified digital products of the 21 
corporation or other entity. 22 
 Sec. 13.  “Other digital products”: 23 
 1. Means greeting cards, digital images, video or electronic 24 
games or news and prewritten computer software, as defined in 25 
NRS 360B.470. 26 
 2. Does not include: 27 
 (a) Computer software that is not prewritten computer 28 
software. 29 
 (b) The storage, management and dissemination of data and 30 
information on a cloud network, server or other digital storage 31 
medium. 32 
 (c) The provision of maintenance services for computer 33 
software, provided that, if the purchase of the maintenance 34 
services occurs at the same time as the purchase of the software, 35 
the maintenance services are optional and are separately stated on 36 
any invoice, billing or other document given to a purchaser. 37 
 (d) Internet service. 38 
 (e) Payment processing services, including, without limitation, 39 
services for processing payments from retail sales and peer-to-peer 40 
money transfers. 41 
 (f) Accounting, bookkeeping and check preparation services. 42 
 (g) Internet broadcasts of live entertainment or educational or 43 
informational presentations. 44 
 (h) Website hosting, storage or backup. 45   
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 (i) The transmission of educational or instructional 1 
programming, including, without limitation, the transmission of 2 
courses by an elementary or secondary school, vocational or 3 
technical school or institution of higher education or the 4 
transmission of courses of professional development. 5 
 (j) The services of a travel agent. 6 
 (k) Cryptocurrency or digital currency, not including 7 
simulated currencies or in-game currencies which are not 8 
intended to be convertible to legal tender. 9 
 (l) Gift cards. 10 
 Sec. 14.  “Purchase” means any transfer, exchange or barter, 11 
conditional or otherwise, in any manner or by any means 12 
whatsoever, of specified digital products for a consideration. 13 
 Sec. 15.  “Retail sale” or “sale at retail” means a sale for any 14 
purpose other than resale in the regular course of business of 15 
specified digital products. 16 
 Sec. 16.  1. “Retailer” includes: 17 
 (a) Every seller who makes any retail sale or sales of specified 18 
digital products. 19 
 (b) Every person engaged in the business of making sales of 20 
specified digital products for use. 21 
 (c) Every person making more than two retail sales of specified 22 
digital products during any 12-month period, including sales made 23 
in the capacity of assignee for the benefit of creditors or a receiver 24 
or trustee in bankruptcy. 25 
 2. When the Nevada Tax Commission determines that it is 26 
necessary for the efficient administration of this chapter to regard 27 
any salespersons, representatives, peddlers or canvassers as the 28 
agents of the dealers, distributors, supervisors or employers under 29 
whom they operate or from whom they obtain the specified digital 30 
products sold by them, irrespective of whether they are making 31 
sales on their own behalf or on behalf of such dealers, 32 
distributors, supervisors or employers, the Nevada Tax 33 
Commission may so regard them and may regard the dealers, 34 
distributors, supervisors or employers as retailers for purposes of 35 
this chapter. 36 
 Sec. 17.  “Ringtones” means digitized sound files that are 37 
downloaded onto a device and that may be used to alert the 38 
customer with respect to a communication. 39 
 Sec. 18.  “Sale” means and includes any transfer of title or 40 
possession, exchange, barter, lease or rental, conditional or 41 
otherwise, in any manner or by any means whatsoever, of 42 
specified digital products for a consideration, including, without 43 
limitation, any such transfer, exchange or barter on a subscription 44 
basis. 45   
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 Sec. 19.  1. “Sales price” means the total amount for which 1 
specified digital products are sold, valued in money, whether paid 2 
in money or otherwise, without any deduction on account of any 3 
of the following: 4 
 (a) The cost of the specified digital products sold. 5 
 (b) The cost of materials used, labor or service cost, interest 6 
charged, losses or any other expenses. 7 
 (c) The cost of transmitting the specified digital products 8 
before purchase. 9 
 2. The total amount for which specified digital products are 10 
sold includes all of the following: 11 
 (a) Any services that are a part of the sale. 12 
 (b) Any amount for which credit is given to the purchaser by 13 
the seller. 14 
 3. “Sales price” does not include any of the following: 15 
 (a) Cash discounts allowed and taken on sales. 16 
 (b) The amount charged for specified digital products returned 17 
by customers when the entire amount charged therefor is refunded 18 
either in cash or credit, except that this exclusion does not apply in 19 
any instance when the customer, in order to obtain the refund, is 20 
required to purchase other specified digital products at a price 21 
greater than the amount charged for the specified digital products 22 
that are returned. 23 
 (c) The amount charged for labor or services rendered in 24 
installing or applying the specified digital products sold. 25 
 (d) The amount of any tax, not including any manufacturers’ 26 
or importers’ excise tax, imposed by the United States upon or 27 
with respect to retail sales, whether imposed upon the retailer or 28 
the consumer. 29 
 Sec. 20.  “Seller” includes every person engaged in the 30 
business of selling specified digital products of a kind, the gross 31 
receipts from the retail sale of which are required to be included in 32 
the measure of the tax imposed by section 24 of this act. 33 
 Sec. 21.  1. “Specified digital products” means 34 
electronically transferred: 35 
 (a) Digital audio works; 36 
 (b) Digital audio-visual works; 37 
 (c) Digital books; 38 
 (d) Digital codes; and 39 
 (e) Other digital products. 40 
 2. The term does not include: 41 
 (a) Direct-to-home satellite service, as defined in 47 U.S.C. § 42 
303(v). 43 
 (b) Video service, as defined in NRS 711.141. 44 
 3. As used in this section, “digital code”: 45   
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 (a) Means a method that permits a purchaser to obtain or 1 
access at a later date specified digital products. 2 
 (b) Does not include public or private keys when used in a 3 
transaction conducted on a blockchain. As used in this paragraph: 4 
  (1) “Blockchain” has the meaning ascribed to it in  5 
NRS 719.045. 6 
  (2) “Private key” has the meaning ascribed to it in  7 
NRS 720.100. 8 
  (3) “Public key” has the meaning ascribed to it in  9 
NRS 720.110. 10 
 Sec. 22.  “Subscription” means any arrangement in which a 11 
person has the right or ability to access, receive, use, obtain, 12 
purchase or otherwise acquire specified digital products on a 13 
permanent or less than permanent basis, regardless of whether the 14 
person actually accesses, receives, uses, obtains, purchases or 15 
otherwise acquires such specified digital products. 16 
 Sec. 23.  For the purposes of this chapter, a retail sale of 17 
specified digital products shall be deemed to take place: 18 
 1. If the specified digital products are received by the 19 
purchaser at a place of business of the seller, at that place of 20 
business. 21 
 2. If the specified digital products are not received by the 22 
purchaser at a place of business of the seller: 23 
 (a) At the location indicated to the seller pursuant to any 24 
instructions provided for the delivery of the specified digital 25 
products to the purchaser or to another recipient who is 26 
designated by the purchaser as his or her donee; or 27 
 (b) If no such instructions are provided and if known by the 28 
seller, at the location where the purchaser or another recipient 29 
who is designated by the purchaser as his or her donee, receives 30 
the specified digital products. 31 
 3. If subsections 1 and 2 do not apply, at the address of the 32 
purchaser indicated in the business records of the seller that are 33 
maintained in the ordinary course of the seller’s business, unless 34 
the use of that address would constitute bad faith. 35 
 4. If subsections 1, 2 and 3 do not apply, at the address of the 36 
purchaser obtained during the consummation of the sale, 37 
including, if no other address is available, the address of the 38 
purchaser’s instrument of payment, unless the use of an address 39 
pursuant to this subsection would constitute bad faith. 40 
 5. In all other circumstances, at the address from which the 41 
specified digital products were shipped. 42 
 Sec. 24.  1. An excise tax is hereby imposed upon the retail 43 
sale of specified digital products to an end user in this State, in an 44 
amount equal to the rate equal to the sum of the rates of all taxes 45   
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imposed upon sales at retail of tangible personal property in the 1 
county in which the purchaser resides multiplied by the gross 2 
receipts of the retailer of the specified digital products. 3 
 2. The tax imposed by subsection 1 applies whether the 4 
purchaser obtains permanent use or less than permanent use of 5 
the specified digital product, whether the sale is conditioned or not 6 
conditioned upon continued payment from the purchaser and 7 
whether the sale is on a subscription basis or is not on a 8 
subscription basis. 9 
 Sec. 25.  The tax imposed by section 24 of this act must be 10 
collected by the retailer from the end user insofar as it can be 11 
done. 12 
 Sec. 26.  1. It is unlawful for any retailer to advertise or 13 
hold out or state to the public or to any customer, directly or 14 
indirectly, that the tax or any part thereof will be assumed  15 
or absorbed by the retailer or that it will not be added to the selling 16 
price of the specified digital products sold or that, if added, it or 17 
any part thereof will be refunded. 18 
 2. Any person violating any provision of this section is guilty 19 
of a misdemeanor. 20 
 Sec. 27.  1. A person shall not engage in or conduct 21 
business as a seller in this State unless the person has: 22 
 (a) Registered with the Department pursuant to NRS 23 
360B.200; or 24 
 (b) Obtained a permit issued by the Department. 25 
 2. Every application for a permit must: 26 
 (a) Be made upon a form prescribed by the Department. 27 
 (b) Set forth the name under which the applicant transacts or 28 
intends to transact business and the location of the applicant’s 29 
place or places of business. 30 
 (c) Set forth any other information which the Department may 31 
require. 32 
 (d) Be accompanied by a fee of $5. 33 
 (e) Be signed by: 34 
  (1) The owner if he or she is a natural person; 35 
  (2) A member or partner if the seller is an association or 36 
partnership; or 37 
  (3) An executive officer or some person specifically 38 
authorized to sign the application if the seller is a corporation. 39 
Written evidence of the signer’s authority must be attached to the 40 
application. 41 
 Sec. 28.  1. If the holder of a permit issued pursuant to this 42 
chapter fails to comply with any provision of this chapter or any 43 
regulation adopted pursuant thereto, the Department may revoke 44 
or suspend any one or more of the permits held by the person. 45   
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Before doing so, the Department must hold a hearing after giving 1 
10 days’ written notice to the holder of the permit. The notice must 2 
specify the time and place of the hearing and require the holder of 3 
the permit to show cause why the permit should not be suspended 4 
or revoked. 5 
 2. If a permit is suspended or revoked, the Department must 6 
give written notice of the action to the holder of the permit. 7 
 3. The notices required by this section may be served 8 
personally or by mail in the manner prescribed for service of 9 
notice of a deficiency determination. 10 
 4. The Department shall not issue a new permit after the 11 
revocation of a permit unless the Department is satisfied that the 12 
former holder of the permit will comply with the provisions of this 13 
chapter and the regulations of the Department adopted pursuant 14 
thereto. 15 
 5. A retailer whose permit has been suspended or revoked 16 
must pay the Department a fee of $5 for the reinstatement of the 17 
permit or the issuance of a new permit. 18 
 Sec. 29.  For the purpose of the proper administration of this 19 
chapter and to prevent evasion of the tax imposed by section 24 of 20 
this act, it is presumed that all gross receipts are subject to the tax 21 
until the contrary is established. The burden of proving that a sale 22 
of specified digital products is not a sale at retail is upon the 23 
person who makes the sale unless the person takes from the 24 
purchaser a certificate to the effect that the specified digital 25 
products were purchased by an end user and the purchaser: 26 
 1. Is engaged in the business of commercial broadcasting, 27 
rebroadcasting, transmitting, retransmitting, licensing, 28 
relicensing, distributing, redistributing or exhibiting specified 29 
digital products, in whole or in part, to another person or persons; 30 
 2. Is registered pursuant to NRS 360B.200 or holds a permit 31 
issued pursuant to section 27 of this act, if required; and 32 
 3. At the time of purchasing the specified digital product, 33 
intends to broadcast, rebroadcast, transmit, retransmit, license, 34 
relicense, distribute, redistribute or exhibit the specified digital 35 
product in the regular course of business or is unable to ascertain 36 
at the time of purchase whether the specified digital product will 37 
be used for such a purpose or will be used for some other purpose. 38 
 Sec. 30.  A resale certificate must: 39 
 1. Be substantially in such form and include such 40 
information as the Department may prescribe; and 41 
 2. Unless submitted in electronic form, be signed by the 42 
purchaser. 43 
 Sec. 31.  1. If a purchaser who gives a resale certificate 44 
makes any use of specified digital products other than the 45   
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commercial broadcasting, rebroadcasting, transmitting, 1 
retransmitting, licensing, relicensing, distributing, redistributing 2 
or exhibiting of the specified digital products, in whole or in part, 3 
to another person or persons in the regular course of business: 4 
 (a) The use is taxable to the purchaser as of the time one of the 5 
specified digital products is first so used by the purchaser, and the 6 
sales price of the specified digital products to the purchaser is  7 
the measure of the tax.  8 
 (b) The seller is liable for the tax with respect to the sale of the 9 
specified digital products to the purchaser only if: 10 
  (1) There is an unsatisfied use tax liability pursuant to 11 
paragraph (a); and 12 
  (2) The seller fraudulently failed to collect the tax or 13 
solicited the purchaser to provide the resale certificate unlawfully. 14 
 2. As used in this section, “seller” includes a certified service 15 
provider, as that term is defined in NRS 360B.060, acting on 16 
behalf of a seller who is registered pursuant to NRS 360B.200. 17 
 Sec. 32.  Any person who gives a resale certificate for 18 
specified digital products which the person knows at the time of 19 
purchase is not to be further broadcast, rebroadcast, transmitted, 20 
retransmitted, licensed, relicensed, distributed, redistributed or 21 
exhibited by the person in the regular course of business for the 22 
purpose of evading payment to the seller of the amount of the tax 23 
applicable to the transaction is guilty of a misdemeanor. 24 
 Sec. 33.  1. An excise tax is hereby imposed on the use in 25 
this State of specified digital products purchased and 26 
electronically transferred from any retailer on or after January 1, 27 
2024, in a retail sale that takes place in this State, as set forth in 28 
section 23 of this act, for use in this State at a rate equal to the 29 
sum of the rates of all taxes imposed upon the storage, use or 30 
other consumption of tangible personal property in the county in 31 
which the retail sale takes place, as set forth in section 23 of this 32 
act. 33 
 2. The tax is imposed with respect to all specified digital 34 
products which were electronically transferred in a transaction 35 
that is taxable pursuant to this chapter but for which the tax 36 
imposed by section 24 of this act was not collected. 37 
 Sec. 34.  Every person storing, using or otherwise consuming 38 
in this State specified digital products purchased from a retailer is 39 
liable for the tax. The liability of a person pursuant to this section 40 
is not extinguished until the tax has been paid to this State, except 41 
that a receipt from a retailer given to the purchaser pursuant to 42 
section 35 of this act is sufficient to relieve the purchaser from 43 
further liability for the tax to which the receipt refers. 44   
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 Sec. 35.  Every retailer maintaining a place of business in 1 
this State and making sales of specified digital products for use in 2 
this State, not exempted by this chapter, shall, at the time of 3 
making the sales or, if the use of the specified digital products is 4 
not then taxable hereunder, at the time the use becomes taxable, 5 
collect the tax from the purchaser and give to the purchaser a 6 
receipt therefor in the manner and form prescribed by the Nevada 7 
Tax Commission. 8 
 Sec. 36.  The tax required to be collected by the retailer 9 
constitutes a debt owed by the retailer to this State. 10 
 Sec. 37.  It is unlawful for any retailer to advertise or hold 11 
out or state to the public or to any customer, directly or indirectly, 12 
that the tax or any part thereof will be assumed or absorbed by the 13 
retailer or that it will not be added to the selling price of the 14 
specified digital products sold or that, if added, it or any part 15 
thereof will be refunded. 16 
 Sec. 38.  The tax required pursuant to this chapter to be 17 
collected by the retailer from the purchaser must be displayed 18 
separately from the list price, the price advertised in the premises, 19 
the marked price, or any other price on the sales check or other 20 
proof of sale. 21 
 Sec. 39.  Any person who violates section 35, 37 or 38 of this 22 
act is guilty of a misdemeanor. 23 
 Sec. 40.  1. Every retailer who sells specified digital 24 
products for use in this State shall register with the Department 25 
and give: 26 
 (a) The name and address of all agents operating in this State. 27 
 (b) The location of all offices or other places of business in 28 
this State. 29 
 (c) Such other information as the Department may require. 30 
 2. Every business that purchases specified digital products for 31 
use in this State shall, at the time the business obtains a state 32 
business license pursuant to chapter 76 of NRS, register with the 33 
Department on a form prescribed by the Department. As used in 34 
this subsection, “business” has the meaning ascribed to it in  35 
NRS 76.020. 36 
 Sec. 41.  For the purpose of the proper administration of this 37 
chapter and to prevent evasion of the use tax and the duty to 38 
collect the use tax, it is presumed that specified digital products 39 
sold by any person for delivery in this State are sold for use in this 40 
State until the contrary is established. The burden of proving that 41 
a sale of specified digital products is not a sale at retail is upon the 42 
person who makes the sale unless the person takes from the 43 
purchaser a certificate to the effect that the specified digital 44 
products were purchased by an end user and the purchaser: 45   
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 1. Is engaged in the business of commercial broadcasting, 1 
rebroadcasting, transmitting, retransmitting, licensing, 2 
relicensing, distributing, redistributing or exhibiting specified 3 
digital products, in whole or in part, to another person or persons; 4 
 2. Is registered pursuant to NRS 360B.200 or holds a permit 5 
issued pursuant to section 27 of this act, if required; and 6 
 3. At the time of purchasing the specified digital products, 7 
intends to broadcast, rebroadcast, transmit, retransmit, license, 8 
relicense, distribute, redistribute or exhibit the specified digital 9 
products in the regular course of business or is unable to ascertain 10 
at the time of purchase whether the specified digital products will 11 
be used for such a purpose or will be used for some other purpose. 12 
 Sec. 42.  A resale certificate must: 13 
 1. Be substantially in such form and include such 14 
information as the Department may prescribe; and 15 
 2. Unless submitted in electronic form, be signed by the 16 
purchaser. 17 
 Sec. 43.  If a purchaser who gives a resale certificate makes 18 
any use of the specified digital products other than the commercial 19 
broadcasting, rebroadcasting, transmitting, retransmitting, 20 
licensing, relicensing, distributing, redistributing or exhibiting of 21 
the specified digital products, in whole or in part, to another 22 
person or persons in the regular course of business, the use is 23 
taxable as of the time any of the specified digital products is first 24 
so stored or used. 25 
 Sec. 44.  As used in sections 44 to 56, inclusive, of this act, 26 
“exempted from the taxes imposed by this chapter” means 27 
exempted from the computation of the amount of taxes imposed. 28 
 Sec. 45.  There are exempted from the taxes imposed by this 29 
chapter the gross receipts from the sale of, and the use in this 30 
State of, specified digital products the gross receipts from the sale 31 
of which, or the use of which, this State is prohibited from taxing 32 
under the Constitution or laws of the United States or under the 33 
Constitution of this State. 34 
 Sec. 46.  There are exempted from the taxes imposed by this 35 
chapter the gross receipts from the sale of specified digital 36 
products that are textbooks sold within the Nevada System of 37 
Higher Education. 38 
 Sec. 47.  There are exempted from the taxes imposed by this 39 
chapter the gross receipts from the sale of, and the use in this 40 
State of, specified digital products which is a newspaper regularly 41 
issued at average intervals not exceeding 1 week and any such 42 
newspaper. 43 
 Sec. 48.  There are exempted from the taxes imposed by this 44 
chapter the gross receipts from occasional sales of specified digital 45   
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products and the use in this State of specified digital products, the 1 
transfer of which to the purchaser is an occasional sale. 2 
 Sec. 49.  There are exempted from the taxes imposed by this 3 
chapter the gross receipts from the sale of any specified digital 4 
products to: 5 
 1. The United States, its unincorporated agencies and 6 
instrumentalities. 7 
 2. Any incorporated agency or instrumentality of the United 8 
States wholly owned by the United States or by a corporation 9 
wholly owned by the United States. 10 
 3. The State of Nevada, its unincorporated agencies and 11 
instrumentalities. 12 
 4. Any county, city, district or other political subdivision of 13 
this State. 14 
 Sec. 50.  There are exempted from the taxes imposed by this 15 
chapter the gross receipts from the sale of, and the use in this 16 
State of, any specified digital products sold by or to a nonprofit 17 
organization created for religious, charitable or educational 18 
purposes. The Legislature shall establish: 19 
 1. Standards for determining whether an organization is 20 
created for religious, charitable or educational purposes. 21 
 2. Procedures for administering the provisions of this section. 22 
 Sec. 51.  1. For the purposes of section 50 of this act, an 23 
organization is created for religious, charitable or educational 24 
purposes if it complies with the provisions of this section. 25 
 2. An organization is created for religious purposes if: 26 
 (a) It complies with the requirements set forth in subsection 5; 27 
and 28 
 (b) The sole or primary purpose of the organization is the 29 
operation of a church, synagogue or other place of religious 30 
worship at which nonprofit religious services and activities are 31 
regularly conducted. Such an organization includes, without 32 
limitation, an integrated auxiliary or affiliate of the organization, 33 
men’s, women’s or youth groups established by the organization, a 34 
school or mission society operated by the organization, an 35 
organization of local units of a church and a convention or 36 
association of churches. 37 
 3. An organization is created for charitable purposes if: 38 
 (a) It complies with the requirements set forth in subsection 5; 39 
 (b) The sole or primary purpose of the organization is to: 40 
  (1) Advance a public purpose, donate or render gratuitously 41 
or at a reduced rate a substantial portion of its services to the 42 
persons who are the subjects of its charitable services, and benefit 43 
a substantial and indefinite class of persons who are the legitimate 44 
subjects of charity; 45   
 	– 14 – 
 
 
- 	*SB396* 
  (2) Provide services that are otherwise required to be 1 
provided by a local government, this State or the Federal 2 
Government; or 3 
  (3) Operate a hospital or medical facility licensed pursuant 4 
to chapter 449 or 450 of NRS; and 5 
 (c) The organization is operating in this State. 6 
 4. An organization is created for educational purposes if: 7 
 (a) It complies with the requirements set forth in subsection 5; 8 
and 9 
 (b) The sole or primary purpose of the organization is to: 10 
  (1) Provide athletic, cultural or social activities for 11 
children; 12 
  (2) Provide displays or performances of the visual or 13 
performing arts to members of the general public; 14 
  (3) Provide instruction and disseminate information on 15 
subjects beneficial to the community; 16 
  (4) Operate a school, college or university located in this 17 
State that conducts regular classes and provides courses of study 18 
required for accreditation or licensing by the State Board of 19 
Education or the Commission on Postsecondary Education, or for 20 
membership in the Northwest Accreditation Commission or 21 
accreditation by the Northwest Commission on Colleges and 22 
Universities; 23 
  (5) Serve as a local or state apprenticeship committee to 24 
advance programs of apprenticeship in this State; or 25 
  (6) Sponsor programs of apprenticeship in this State 26 
through a trust created pursuant to 29 U.S.C. § 186. 27 
 5. In addition to the requirements set forth in subsection 2, 3 28 
or 4, an organization is created for religious, charitable or 29 
educational purposes if: 30 
 (a) No part of the net earnings of any such organization inures 31 
to the benefit of a private shareholder, individual or entity; 32 
 (b) The business of the organization is not conducted for 33 
profit; 34 
 (c) No substantial part of the business of the organization is 35 
devoted to the advocacy of any political principle or the defeat or 36 
passage of any state or federal legislation; 37 
 (d) The organization does not participate or intervene in any 38 
political campaign on behalf of or in opposition to any candidate 39 
for public office; and 40 
 (e) Any property sold to the organization for which an 41 
exemption is claimed is used by the organization in this State in 42 
furtherance of the religious, charitable or educational purposes of 43 
the organization. 44   
 	– 15 – 
 
 
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 Sec. 52.  There are exempted from the taxes imposed by this 1 
chapter on the use of specified digital products any such products 2 
loaned or donated to: 3 
 1. The United States, its unincorporated agencies and 4 
instrumentalities. 5 
 2. Any incorporated agency or instrumentality of the United 6 
States wholly owned by the United States or by a corporation 7 
wholly owned by the United States. 8 
 3. The State of Nevada, its unincorporated agencies and 9 
instrumentalities. 10 
 4. Any county, city, district or other political subdivision of 11 
this State. 12 
 5. Any organization created for religious, charitable or 13 
eleemosynary purposes, provided that no part of the net earnings 14 
of any such organization inures to the benefit of any private 15 
shareholder or individual. 16 
 Sec. 53.  The use in this State of specified digital products, 17 
the gross receipts from the sale of which are required to be 18 
included in the measure of the tax imposed by section 24 of this 19 
act, is exempted from the tax imposed by section 33 of this act. 20 
 Sec. 54.  1. If a purchaser wishes to claim an exemption 21 
from the taxes imposed by this chapter, the retailer shall obtain 22 
such information from the purchaser as is required by the 23 
Department. 24 
 2. The Department shall, to the extent feasible, establish an 25 
electronic system for submitting a request for an exemption. A 26 
purchaser is not required to provide a signature to claim an 27 
exemption if the request is submitted electronically. 28 
 3. The Department may establish a system whereby a 29 
purchaser who is exempt from the payment of the taxes imposed 30 
by this chapter is issued an identification number that can be 31 
presented to the retailer at the time of sale. 32 
 4. A retailer shall maintain such records of exempt 33 
transactions as are required by the Department and provide those 34 
records to the Department upon request. 35 
 5. Except as otherwise provided in this subsection, a retailer 36 
who complies with the provisions of this section is not liable for 37 
the payment of any tax imposed by this chapter if the purchaser 38 
improperly claims an exemption. If the purchaser improperly 39 
claims an exemption, the purchaser is liable for the payment of the 40 
tax. The provisions of this subsection do not apply if the retailer: 41 
 (a) Fraudulently fails to collect the tax; 42 
 (b) Solicits a purchaser to participate in an unlawful claim of 43 
an exemption; or 44   
 	– 16 – 
 
 
- 	*SB396* 
 (c) Accepts a certificate of exemption from a purchaser who 1 
claims an entity-based exemption, the subject of the transaction 2 
sought to be covered by the certificate is actually received by the 3 
purchaser at a location operated by the seller, and the Department 4 
provides, and posts on a website or other Internet site that is 5 
operated or administered by or on behalf of the Department, a 6 
certificate of exemption which clearly and affirmatively indicates 7 
that the claimed exemption is not available. 8 
 6. As used in this section: 9 
 (a) “Entity-based exemption” means an exemption based on 10 
who purchases the product or who sells the product, and which is 11 
not available to all. 12 
 (b) “Retailer” includes a certified service provider, as that term 13 
is defined in NRS 360B.060, acting on behalf of a retailer who is 14 
registered pursuant to NRS 360B.200. 15 
 Sec. 55.  1. Any nonprofit organization created for 16 
religious, charitable or educational purposes that wishes to claim 17 
an exemption pursuant to section 50 of this act, must file an 18 
application with the Department to obtain a letter of exemption. 19 
The application must be on a form and contain such information 20 
as is required by the Department. 21 
 2. If the Department determines that the organization is 22 
created for religious, charitable or educational purposes, it shall 23 
issue a letter of exemption to the organization. The letter of 24 
exemption expires 5 years after the date on which it is issued by 25 
the Department. At least 90 days before the expiration of the letter 26 
of exemption, the Department shall notify the organization to 27 
whom the letter was issued of the date on which the letter will 28 
expire. The organization may renew its letter of exemption for an 29 
additional 5 years by filing an application for renewal with the 30 
Department. The application for renewal must be on a form and 31 
contain such information as is required by the Department. 32 
 3. To claim an exemption pursuant to section 50 of this act 33 
for the sale of specified digital products to such an organization: 34 
 (a) The organization must give a copy of its letter of exemption 35 
to the retailer from whom the organization purchases the product; 36 
and 37 
 (b) The retailer must retain and present upon request a copy of 38 
the letter of exemption. 39 
 4. The Department shall adopt such regulations as are 40 
necessary to carry out the provisions of this section. 41 
 Sec. 56.  If a purchaser certifies in writing to a seller that the 42 
specified digital products purchased will be used in a manner or 43 
for a purpose entitling the seller to regard the gross receipts from 44 
the sale as exempted by this chapter from the computation of the 45   
 	– 17 – 
 
 
- 	*SB396* 
amount of the taxes imposed by this chapter, and uses the 1 
specified digital products in some other manner or for some other 2 
purpose, the purchaser shall be liable for payment of the tax as if 3 
the purchaser were a retailer making a retail sale of the specified 4 
digital products at the time of such use, and the cost of the 5 
specified digital products to the purchaser shall be deemed the 6 
gross receipts from such retail sale. 7 
 Sec. 57.  A retailer shall hold the amount of all taxes 8 
collected pursuant to this chapter in a separate account in trust for 9 
the State. 10 
 Sec. 58.  Except as otherwise provided in section 65 of this act 11 
or required by the Department pursuant to NRS 360B.200, the 12 
taxes imposed by this chapter are due and payable to the 13 
Department monthly on or before the last day of the month next 14 
succeeding each month. 15 
 Sec. 59.  Except as otherwise required by the Department 16 
pursuant to NRS 360B.200: 17 
 1. On or before the last day of the month following each 18 
reporting period, a return for the preceding period must be filed 19 
with the Department in such form and manner as the Department 20 
may prescribe. Any return required to be filed by this section must 21 
be combined with any return required to be filed pursuant to the 22 
provisions of chapters 372 and 374 of NRS. 23 
 2. For purposes of: 24 
 (a) The tax imposed by section 24 of this act, a return must be 25 
filed by each seller. 26 
 (b) The tax imposed by section 33 of this act, a return must be 27 
filed by each retailer maintaining a place of business in the State 28 
and by each person purchasing specified digital products, the use 29 
of which is subject to the use tax, who has not paid the use tax 30 
due. 31 
 3. Unless filed electronically, returns must be signed by the 32 
person required to file the return or by his or her authorized agent 33 
but need not be verified by oath. 34 
 Sec. 60.  1. Except as otherwise required by the Department 35 
pursuant to NRS 360B.200: 36 
 (a) For the purposes of the tax imposed by section 24 of this 37 
act: 38 
  (1) The return must show the gross receipts of the seller 39 
during the preceding reporting period. 40 
  (2) The gross receipts must be segregated and reported 41 
separately for each county to which a sale of specified digital 42 
products pertains. 43   
 	– 18 – 
 
 
- 	*SB396* 
  (3) A sale pertains to the county in this State in which the 1 
retail sale of specified digital products takes place as determined 2 
pursuant to section 23 of this act. 3 
 (b) For purposes of the tax imposed by section 33 of this act: 4 
  (1) In the case of a return filed by a retailer, the return 5 
must show the total sales price of the specified digital products 6 
purchased by the retailer, the use of which specified digital 7 
products became subject to the use tax during the preceding 8 
reporting period. 9 
  (2) The sales price must be segregated and reported 10 
separately for each county to which a purchase of specified digital 11 
products pertains. 12 
  (3) If the specified digital products were: 13 
   (I) Brought into this State by the purchaser or his or her 14 
agent or designee, the sale pertains to the county in this State in 15 
which the property is or will be first used, stored or otherwise 16 
consumed. 17 
   (II) Not brought into this State by the purchaser or his 18 
or her agent or designee, the sale pertains to the county in this 19 
State in which the property was delivered to the purchaser or his 20 
or her agent or designee. 21 
 2. In case of a return filed by a purchaser, the return must 22 
show the total sales price of the specified digital products 23 
purchased by the purchaser, the use of which became subject to 24 
the tax imposed by section 24 of this act during the preceding 25 
reporting period and indicate the county in this State in which the 26 
specified digital products were first used, stored or consumed. 27 
 3. The return must also show the amount of the taxes for the 28 
period covered by the return and such other information as the 29 
Department deems necessary for the proper administration of this 30 
chapter. 31 
 4. Except as otherwise provided in subsection 5, upon 32 
determining that a retailer has filed a return which contains one 33 
or more violations of the provisions of this section, the Department 34 
shall: 35 
 (a) For the first return of any retailer which contains one or 36 
more violations, issue a letter of warning to the retailer which 37 
provides an explanation of the violation or violations contained in 38 
the return. 39 
 (b) For the first or second return, other than a return 40 
described in paragraph (a), in any calendar year which contains 41 
one or more violations, assess a penalty equal to the amount of the 42 
tax which was not reported or was reported for the wrong county 43 
or $1,000, whichever is less. 44   
 	– 19 – 
 
 
- 	*SB396* 
 (c) For the third and each subsequent return in any calendar 1 
year which contains one or more violations, assess a penalty of 2 
three times the amount of the tax which was not reported or was 3 
reported for the wrong county or $3,000, whichever is less. 4 
 5. For the purposes of subsection 4, if the first violation of 5 
this section by any retailer was determined by the Department 6 
through an audit which covered more than one return of the 7 
retailer, the Department shall treat all returns which were 8 
determined through the same audit to contain a violation or 9 
violations in the manner provided in paragraph (a) of  10 
subsection 4. 11 
 Sec. 61.  In determining the amount of taxes due pursuant to 12 
this chapter: 13 
 1. The amount due must be computed to the third decimal 14 
place and rounded to a whole cent using a method that rounds up 15 
to the next cent if the numeral in the third decimal place is greater 16 
than 4. 17 
 2. A retailer may compute the amount due on a transaction 18 
on the basis of each item involved in the transaction or a single 19 
invoice for the entire transaction. 20 
 Sec. 62.  1. If a retailer is unable to collect all or part of the 21 
sales price of a sale, the retailer is entitled to receive a deduction 22 
from his or her taxable sales for that bad debt. 23 
 2. Any deduction that is claimed pursuant to this section may 24 
not include interest. 25 
 3. The amount of any deduction claimed must equal the 26 
amount of a deduction that may be claimed pursuant to section 27 
166 of the Internal Revenue Code, 26 U.S.C. § 166, for that sale 28 
minus: 29 
 (a) Any finance charge or interest charged as part of the sale; 30 
 (b) Any tax imposed by this chapter charged on the sales price; 31 
 (c) Any amount not paid on the sales price because the 32 
specified digital product that was sold was not delivered until the 33 
full sales price is paid; and 34 
 (d) Any expense incurred in attempting to collect the bad debt. 35 
 4. A bad debt may be claimed as a deduction on the return 36 
that covers the period during which the bad debt is written off in 37 
the business records of the retailer that are maintained in the 38 
ordinary course of the retailer’s business and is eligible to be 39 
claimed as a deduction pursuant to section 166 of the Internal 40 
Revenue Code, 26 U.S.C. § 166, or if the retailer is not required to 41 
file a federal income tax return, would be eligible to be claimed as 42 
a deduction pursuant to section 166 of the Internal Revenue Code, 43 
26 U.S.C. § 166. 44   
 	– 20 – 
 
 
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 5. If a bad debt for which a deduction has been claimed is 1 
subsequently collected in whole or in part, the tax on the amount 2 
so collected must be reported on the return that covers the period 3 
in which the collection is made. 4 
 6. If the amount of the bad debt is greater than the amount of 5 
the taxable sales reported for the period during which the bad debt 6 
is claimed as a deduction, a claim for a refund may be filed 7 
pursuant to sections 69 to 87, inclusive, of this act except that the 8 
time within which the claim may be filed begins on the date on 9 
which the return that included the deduction was filed. 10 
 7. If the retailer has contracted with a certified service 11 
provider for the remittance of the tax due under this chapter, the 12 
service provider may, on behalf of the retailer, claim any 13 
deduction to which the retailer is entitled pursuant to this section. 14 
The service provider shall credit or refund the full amount of any 15 
deduction or refund received pursuant to this section to the 16 
retailer. 17 
 8. For the purposes of reporting a payment received on a bad 18 
debt for which a deduction has been claimed, the payment must 19 
first be applied to the sales price of the specified digital products 20 
sold and the tax due thereon, and then to any interest, service 21 
charge or other charge that was charged as part of the sale. 22 
 9. If the records of a retailer indicate that a bad debt may be 23 
allocated among other states that are members of the Streamlined 24 
Sales and Use Tax Agreement, the retailer may allocate the bad 25 
debt among those states. 26 
 10. A retailer who assigns a debt to an entity which is part of 27 
an affiliated group that includes the retailer may claim any 28 
deduction or refund to which the retailer would otherwise be 29 
entitled pursuant to this section, notwithstanding: 30 
 (a) The assignment of the debt to the entity; 31 
 (b) That the debt is written off as a bad debt in the business 32 
records of the entity which are maintained in the ordinary course 33 
of the entity’s business; and 34 
 (c) That the bad debt is or would be eligible to be claimed by 35 
the entity as a deduction pursuant to section 166 of the Internal 36 
Revenue Code, 26 U.S.C. § 166. 37 
 11. Except as otherwise provided in subsection 12, upon 38 
determining that a retailer has filed a return which contains one 39 
or more violations of the provisions of this section, the Department 40 
shall: 41 
 (a) For the first return of any retailer which contains one or 42 
more violations, issue a letter of warning to the retailer which 43 
provides an explanation of the violation or violations contained in 44 
the return. 45   
 	– 21 – 
 
 
- 	*SB396* 
 (b) For the first or second return, other than a return 1 
described in paragraph (a), in any calendar year which contains 2 
one or more violations, assess a penalty equal to the amount of the 3 
deduction claimed or $1,000, whichever is less. 4 
 (c) For the third and each subsequent return in any calendar 5 
year which contains one or more violations, assess a penalty of 6 
three times the amount of the deduction claimed or $3,000, 7 
whichever is less. 8 
 12. For the purposes of subsection 11, if the first violation of 9 
this section by any retailer was determined by the Department 10 
through an audit which covered more than one return of the 11 
retailer, the Department shall treat all returns which were 12 
determined through the same audit to contain a violation or 13 
violations in the manner provided in paragraph (a) of  14 
subsection 11. 15 
 13. As used in this section: 16 
 (a) “Affiliated group” means: 17 
  (1) An affiliated group as defined in section 1504(a) of the 18 
Internal Revenue Code, 26 U.S.C. § 1504(a); or 19 
  (2) A controlled group of corporations as described in 20 
section 1563(a)(2) of the Internal Revenue Code, 26 U.S.C. § 21 
1563(a)(2). 22 
 (b) “Bad debt” means a debt that may be deducted pursuant to 23 
section 166 of the Internal Revenue Code, 26 U.S.C. § 166. 24 
 (c) “Certified service provider” has the meaning ascribed to it 25 
in NRS 360B.060. 26 
 Sec. 63.  1. Except as otherwise provided in subsection 2, if 27 
the taxes imposed by this chapter are paid in accordance with 28 
section 58 of this act, a taxpayer may deduct and withhold from 29 
the taxes otherwise due from the taxpayer 0.25 percent of those 30 
taxes as reimbursement for the cost of collecting the tax. 31 
 2. The regulations adopted by the Nevada Tax Commission 32 
pursuant to NRS 360B.110 may authorize the deduction and 33 
withholding from the taxes otherwise due from a taxpayer such 34 
other amounts as are required to carry out the Streamlined Sales 35 
and Use Tax Agreement. 36 
 Sec. 64.  1. Except as otherwise authorized or required by 37 
the Department, the person required to file a return shall deliver 38 
the return together with a remittance of the amount of the tax due 39 
to the Department. 40 
 2. The Department shall provide for the acceptance of credit 41 
cards, debit cards or electronic transfers of money for the payment 42 
of the tax due in the manner prescribed pursuant to NRS 360.092. 43   
 	– 22 – 
 
 
- 	*SB396* 
 Sec. 65.  1. Except as otherwise provided in this section or 1 
required by the Department pursuant to NRS 360B.200, the 2 
reporting and payment period of: 3 
 (a) A taxpayer whose taxable sales do not exceed $10,000 per 4 
month is a calendar quarter. 5 
 (b) A taxpayer who files reports on a quarterly basis in 6 
accordance with paragraph (a) and: 7 
  (1) From whom no tax is due pursuant to this chapter for 8 
the immediately preceding three quarterly reporting periods; or 9 
  (2) Whose taxable sales do not exceed a total amount of 10 
$1,500 for the immediately preceding four quarterly reporting 11 
periods, 12 
 is 12 calendar months, unless the taxable sales of the taxpayer 13 
exceed a total amount of $1,500 for such a 12-month reporting 14 
and payment period or $10,000 for a calendar month. 15 
 2. The Department, if it deems this action necessary to ensure 16 
payment to or facilitate the collection by the State of the amount of 17 
taxes, may require returns and payment of the amount of taxes for 18 
periods other than calendar months or quarters, depending upon 19 
the principal place of business of the seller, retailer or purchaser, 20 
as the case may be, or for other than monthly, quarterly or annual 21 
periods. 22 
 Sec. 66.  For the purposes of the tax imposed by section 24 of 23 
this act, gross receipts from rentals or leases of specified digital 24 
products must be reported and the tax paid in accordance with 25 
such regulations as the Department may prescribe. 26 
 Sec. 67.  The Department for good cause may extend for not 27 
to exceed 1 month the time for making any return or paying any 28 
amount required to be paid under this chapter. 29 
 Sec. 68.  1. The Department, whenever it deems it necessary 30 
to ensure compliance with this chapter, may require any person 31 
subject to the chapter to place with it such security as the 32 
Department may determine. The Department shall fix the amount 33 
of the security which, except as otherwise provided in subsection 2, 34 
may not be greater than twice the estimated average tax due 35 
quarterly of persons filing returns for quarterly periods, three 36 
times the estimated average tax due monthly of persons filing 37 
returns for monthly periods or four times the estimated average 38 
tax due annually of persons filing returns for annual periods, 39 
determined in such a manner as the Department deems proper. 40 
 2. In the case of persons who are habitually delinquent in 41 
their obligations under this chapter, the amount of the security 42 
may not be greater than three times the average actual tax due 43 
quarterly of persons filing returns for quarterly periods, five times 44 
the average actual tax due monthly of persons filing returns for 45   
 	– 23 – 
 
 
- 	*SB396* 
monthly periods or seven times the average actual tax due 1 
annually of persons filing returns for annual periods. 2 
 3. The limitations provided in this section apply regardless of 3 
the type of security placed with the Department. 4 
 4. The amount of the security may be increased or decreased 5 
by the Department subject to the limitations provided in this 6 
section. 7 
 5. The Department may sell the security at public auction if it 8 
becomes necessary to recover any tax or any amount required to 9 
be collected, or interest or penalty due. Notice of the sale may be 10 
served upon the person who placed the security personally or by 11 
mail. If the notice is served by mail, service must be made in the 12 
manner prescribed for service of a notice of a deficiency 13 
determination and must be addressed to the person at his or her 14 
address as it appears in the records of the Department. Security in 15 
the form of a bearer bond issued by the United States or the State 16 
of Nevada which has a prevailing market price may be sold by the 17 
Department at a private sale at a price not lower than the 18 
prevailing market price. 19 
 6. Upon any sale any surplus above the amounts due must be 20 
returned to the person who placed the security. 21 
 Sec. 69.  1. If the Department determines that any amount, 22 
penalty or interest has been paid more than once or has been 23 
erroneously or illegally collected or computed, the Department 24 
shall set forth that fact in the records of the Department and 25 
certify to the State Board of Examiners the amount collected in 26 
excess of the amount legally due and the person from whom it was 27 
collected or by whom paid. If approved by the State Board of 28 
Examiners, the excess amount collected or paid must, after being 29 
credited against any amount then due from the person in 30 
accordance with NRS 360.236, be refunded to the person, or his or 31 
her successors, administrators or executors. 32 
 2. Any overpayment of the tax imposed by section 33 of this 33 
act by a purchaser to a retailer who is required to collect the tax 34 
and who gives the purchaser a receipt therefor pursuant to 35 
sections 33 to 43, inclusive, of this act must be credited or 36 
refunded by the State to the purchaser, subject to the requirements 37 
of NRS 360.236. 38 
 Sec. 70.  Except as otherwise provided in NRS 360.235 and 39 
360.395 and section 62 of this act: 40 
 1. No refund may be allowed unless a claim for it is filed with 41 
the Department within 3 years after the last day of the month 42 
following the close of the period for which the overpayment was 43 
made. 44   
 	– 24 – 
 
 
- 	*SB396* 
 2. No credit may be allowed after the expiration of the period 1 
specified for filing claims for refund unless a claim for credit is 2 
filed with the Department within that period, or unless the credit 3 
relates to a period for which a waiver is given pursuant to  4 
NRS 360.355. 5 
 Sec. 71.  No credit or refund of any amount paid pursuant to 6 
sections 33 to 43, inclusive, of this act may be allowed on the 7 
ground that the use of the specified digital products is exempted 8 
pursuant to section 53 of this act, unless the person who paid the 9 
amount reimburses the vendor of the specified digital products for 10 
the amount of the tax imposed by section 24 of this act upon the 11 
vendor of the specified digital products with respect to the sale of 12 
the specified digital products and paid by the vendor to the State. 13 
 Sec. 72.  Every claim must be in writing and state the specific 14 
grounds upon which the claim is founded. 15 
 Sec. 73.  Failure to file a claim within the time prescribed in 16 
section 70 of this act constitutes a waiver of any demand against 17 
the State on account of overpayment. 18 
 Sec. 74.  Within 30 days after disallowing any claim in whole 19 
or in part, the Department shall serve notice of its action on the 20 
claimant in the manner prescribed for service of notice of a 21 
deficiency determination. 22 
 Sec. 75.  Except as otherwise provided in NRS 360.320 or any 23 
other specific statute, interest must be paid upon any overpayment 24 
of any amount of tax at the rate set forth in, and in accordance 25 
with the provisions of, NRS 360.2937. 26 
 Sec. 76.  If the Department determines that any overpayment 27 
has been made intentionally or by reason of carelessness, it shall 28 
not allow any interest thereon. 29 
 Sec. 77.  No injunction or writ of mandate or other legal or 30 
equitable process shall issue in any suit, action or proceeding in 31 
any court against the State, a county or any officer thereof to 32 
prevent or enjoin the collection under this chapter of any tax or 33 
any amount of tax required to be collected. 34 
 Sec. 78.  No suit or proceeding shall be maintained in any 35 
court for the recovery of any amount alleged to have been 36 
erroneously or illegally determined or collected unless a claim for 37 
refund or credit has been duly filed. 38 
 Sec. 79.  1. Within 90 days after a final decision upon a 39 
claim filed pursuant to this chapter is rendered by the Nevada Tax 40 
Commission, the claimant may bring an action against the 41 
Department on the grounds set forth in the claim in a court of 42 
competent jurisdiction in Carson City, the county of this State 43 
where the claimant resides or maintains his or her principal place 44 
of business or a county in which any relevant proceedings were 45   
 	– 25 – 
 
 
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conducted by the Department, for the recovery of the whole or any 1 
part of the amount with respect to which the claim has been 2 
disallowed. 3 
 2. Failure to bring an action within the time specified 4 
constitutes a waiver of any demand against the State on account of 5 
alleged overpayments. 6 
 Sec. 80.  If the Department fails to mail notice of action on a 7 
claim within 6 months after the claim is filed, the claimant may 8 
consider the claim disallowed and file an appeal with a hearing 9 
officer within 45 days after the last day of the 6-month period. If 10 
the claimant is aggrieved by the decision of the hearing officer on 11 
appeal, the claimant may, pursuant to the provisions of NRS 12 
360.245, appeal the decision to the Nevada Tax Commission. If 13 
the claimant is aggrieved by the decision of the Commission on 14 
appeal, the claimant may, within 45 days after the decision is 15 
rendered, bring an action against the Department on the grounds 16 
set forth in the claim for the recovery of the whole or any part of 17 
the amount claimed as an overpayment. 18 
 Sec. 81.  1. If judgment is rendered for the plaintiff, the 19 
amount of the judgment must first be credited as follows: 20 
 (a) If the judgment is for a refund of tax imposed by section 24 21 
of this act, it must be credited on any amount of tax due from the 22 
plaintiff pursuant to this chapter. 23 
 (b) If the judgment is for a refund of the tax imposed by 24 
section 33 of this act, it must be credited on any amount of that tax 25 
due from the plaintiff pursuant to this chapter. 26 
 2. The balance of the judgment must be refunded to the 27 
plaintiff. 28 
 Sec. 82.  In any judgment, interest shall be allowed at the rate 29 
of 3 percent per annum upon the amount found to have been 30 
illegally collected from the date of payment of the amount to the 31 
date of allowance of credit on account of the judgment, or to a 32 
date preceding the date of the refund warrant by not more than 30 33 
days, the date to be determined by the Department. 34 
 Sec. 83.  A judgment shall not be rendered in favor of the 35 
plaintiff in any action brought against the Department to recover 36 
any amount paid when the action is brought by or in the name of 37 
an assignee of the person paying the amount or by any person 38 
other than the person who paid the amount. 39 
 Sec. 84.  The Department may recover any refund or part of it 40 
which is erroneously made and any credit or part of it which is 41 
erroneously allowed in an action brought in a court of competent 42 
jurisdiction in Carson City or Clark County in the name of the 43 
State of Nevada. 44   
 	– 26 – 
 
 
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 Sec. 85.  The action must be tried in Carson City or Clark 1 
County unless the court, with the consent of the Attorney General, 2 
orders a change of place of trial. 3 
 Sec. 86.  The Attorney General shall prosecute the action, 4 
and the provisions of NRS, the Nevada Rules of Civil Procedure 5 
and the Nevada Rules of Appellate Procedure relating to service of 6 
summons, pleadings, proofs, trials and appeals are applicable to 7 
the proceedings. 8 
 Sec. 87.  1. If any amount in excess of $25 has been 9 
illegally determined, either by the person filing the return or by the 10 
Department, the Department shall certify this fact to the State 11 
Board of Examiners, and the latter shall authorize the 12 
cancellation of the amount upon the records of the Department. 13 
 2. If an amount not exceeding $25 has been illegally 14 
determined, either by the person filing a return or by the 15 
Department, the Department, without certifying this fact to the 16 
State Board of Examiners, shall authorize the cancellation of  17 
the amount upon the records of the Department. 18 
 Sec. 88.  This chapter must be administered in accordance 19 
with the provisions of chapter 360B of NRS. 20 
 Sec. 89.  1. The provisions of this chapter relating to: 21 
 (a) The imposition, collection and remittance of the tax 22 
imposed by section 24 of this act apply to every retailer whose 23 
activities have a sufficient nexus with this State to satisfy the 24 
requirements of the United States Constitution. 25 
 (b) The collection and remittance of the tax imposed by section 26 
33 of this act apply to every retailer whose activities have a 27 
sufficient nexus with this State to satisfy the requirements of the 28 
United States Constitution. 29 
 2. In administering the provisions of this chapter, the 30 
Department shall construe the terms “seller,” “retailer” and 31 
“retailer maintaining a place of business in this State” in 32 
accordance with the provisions of subsection 1. 33 
 Sec. 90.  As used in sections 90 to 97, inclusive, of this act, 34 
unless the context otherwise requires, the words and terms defined 35 
in sections 91, 92 and 93 of this act have the meanings ascribed to 36 
them in those sections. 37 
 Sec. 91.  “Affiliate” means a person who directly or indirectly 38 
owns or controls, is owned or controlled by, or is under common 39 
ownership or control with, another person. For the purposes of 40 
this section, control shall be presumed to exist if any person 41 
directly or indirectly owns, controls, holds with the power to vote 42 
or holds proxies representing 10 percent or more of the voting 43 
securities of any other person. This presumption may be rebutted 44 
by a showing that control does not exist in fact. 45   
 	– 27 – 
 
 
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 Sec. 92.  1. “Marketplace facilitator” means a person, 1 
including any affiliate of the person, who: 2 
 (a) Directly or indirectly, does one or more of the following to 3 
facilitate a retail sale: 4 
  (1) Lists, makes available or advertises specified digital 5 
products for sale by a marketplace seller in a marketplace owned, 6 
operated or controlled by the person; 7 
  (2) Facilitates the sale of a marketplace seller’s product 8 
through a marketplace by transmitting or otherwise 9 
communicating an offer or acceptance of a retail sale of specified 10 
digital products between a marketplace seller and a purchaser in a 11 
forum including a shop, store, booth, catalog, Internet site or 12 
similar forum;  13 
  (3) Owns, rents, licenses, makes available or operates any 14 
electronic or physical infrastructure or any property, process, 15 
method, copyright, trademark or patent that connects marketplace 16 
sellers to purchasers for the purpose of making retail sales of 17 
specified digital products; 18 
  (4) Provides a marketplace for making retail sales of 19 
specified digital products, or otherwise facilitates retail sales  20 
of specified digital products, regardless of ownership or control of 21 
the specified digital products that are the subject of the retail sale; 22 
  (5) Provides software development or research and 23 
development activities related to any activity described in this 24 
subsection, if such software development or research and 25 
development activities are directly related to the physical or 26 
electronic marketplace provided by a marketplace provider; 27 
  (6) Provides or offers fulfillment or storage services for a 28 
marketplace seller; 29 
  (7) Sets prices for the sale of specified digital products by a 30 
marketplace seller; 31 
  (8) Provides or offers customer service to a marketplace 32 
seller or the customers of a marketplace seller, or accepts or 33 
assists with taking orders, returns or exchanges of specified digital 34 
products sold by a marketplace seller; or 35 
  (9) Brands or otherwise identifies sales as those of the 36 
marketplace facilitator; and 37 
 (b) Directly or indirectly, does one or more of the following to 38 
facilitate a retail sale: 39 
  (1) Collects the sales price or purchase price of a retail sale 40 
of specified digital products; 41 
  (2) Provides payment processing services for a retail sale of 42 
specified digital products; 43 
  (3) Charges, collects or otherwise receives selling fees, 44 
listing fees, referral fees, closing fees, fees for inserting or making 45   
 	– 28 – 
 
 
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available specified digital products on a marketplace or other 1 
consideration from the facilitation of a retail sale of specified 2 
digital products, regardless of ownership or control of the 3 
specified digital products that are the subject of the retail sale; 4 
  (4) Through terms and conditions, agreements or 5 
arrangements with a third party, collects payment in connection 6 
with a retail sale of specified digital products from a purchaser 7 
and transmits that payment to the marketplace seller, regardless of 8 
whether the person collecting and transmitting such payment 9 
receives compensation or other consideration in exchange for the 10 
service; or 11 
  (5) Provides a virtual currency that purchasers are allowed 12 
or required to use to purchase specified digital products. 13 
 2. The term does not include a person who provides Internet 14 
advertising services, including, without limitation, the listing of 15 
products for sale, if the person does not directly or indirectly or 16 
through an affiliate: 17 
 (a) Transmit or otherwise communicate an offer or acceptance 18 
of a retail sale of specified digital products between a marketplace 19 
seller and a purchaser; and 20 
 (b) Do one or more of the activities listed in paragraph (b) of 21 
subsection 1. 22 
 3. The term includes a provider of direct broadcast satellite 23 
service as defined in 47 U.S.C. § 335(b)(5)(A) or a cable operator 24 
as defined in 47 U.S.C. § 522(5) who meets the definition of 25 
“marketplace facilitator” provided in subsection 1, including, 26 
without limitation, by facilitating the retail sale of a software 27 
application of a marketplace seller which may be accessed 28 
through the digital platform owned, operated or controlled by the 29 
provider of direct broadcast satellite service or cable operator. A 30 
provider of direct broadcast satellite service or cable operator is 31 
not a marketplace facilitator with respect to a software application 32 
of a marketplace seller which may be accessed through the digital 33 
platform owned, operated or controlled by the provider of direct 34 
broadcast satellite service or cable operator for no additional 35 
charge. 36 
 Sec. 93.  “Marketplace seller” means: 37 
 1. A seller who makes retail sales through any physical or 38 
electronic marketplace owned, operated or controlled by a 39 
marketplace facilitator, even if such seller would not have been 40 
required to collect and remit the sales tax or use tax had the sale 41 
not been made through such marketplace; or 42 
 2. A seller who makes retail sales resulting from a referral by 43 
a referrer, even if such seller would not have been required to 44   
 	– 29 – 
 
 
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collect and remit the sales tax or use tax had the sale not been 1 
made through such referrer. 2 
 Sec. 94.  1. Except as otherwise provided in this section and 3 
section 95 of this act, the provisions of this chapter relating to the 4 
imposition, collection and remittance of the tax imposed by section 5 
24 of this act, and the collection and remittance of the tax imposed 6 
by section 33 of this act, apply to a marketplace facilitator during 7 
a calendar year in which or during a calendar year immediately 8 
following any calendar year in which: 9 
 (a) The cumulative gross receipts from retail sales of tangible 10 
personal property and specified digital products made or 11 
facilitated by the marketplace facilitator on its own behalf or for 12 
one or more marketplace sellers to customers in this State exceed 13 
$100,000; or 14 
 (b) The marketplace facilitator makes or facilitates 200 or 15 
more separate retail sales transactions of tangible personal 16 
property or specified digital products on his or her own behalf or 17 
for one or more marketplace sellers to customers in this State. 18 
 2. The provisions of this chapter relating to the imposition, 19 
collection and remittance of the tax imposed by section 24 of this 20 
act and the collection and remittance of the tax imposed by section 21 
33 of this act do not apply to a marketplace facilitator described in 22 
subsection 1 if: 23 
 (a) The marketplace facilitator and the marketplace seller have 24 
entered into a written agreement whereby the marketplace seller 25 
assumes responsibility for the collection and remittance of the tax 26 
imposed by section 24 of this act, and the collection and 27 
remittance of the tax imposed by section 33 of this act, for retail 28 
sales made by the marketplace seller through the marketplace 29 
facilitator; and 30 
 (b) The marketplace seller has obtained a permit pursuant to 31 
section 27 of this act or registered pursuant to NRS 360B.200. 32 
 Upon request of the Department, a marketplace facilitator shall 33 
provide to the Department a report containing the name of each 34 
marketplace seller with whom the marketplace facilitator has 35 
entered into an agreement pursuant to this subsection and such 36 
other information as the Department determines is necessary to 37 
ensure that each marketplace seller with whom the marketplace 38 
facilitator has entered into an agreement pursuant to this 39 
subsection has obtained a permit pursuant to section 27 of this act 40 
or registered pursuant to NRS 360B.200. 41 
 3. Except as otherwise provided in this section and section 95 42 
of this act, the provisions of subsection 1 apply regardless of 43 
whether: 44   
 	– 30 – 
 
 
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 (a) The marketplace seller for whom a marketplace facilitator 1 
makes or facilitates a retail sale would not have been required to 2 
collect and remit the sales tax or the use tax had the retail sale not 3 
been facilitated by the marketplace facilitator; 4 
 (b) The marketplace seller for whom a marketplace facilitator 5 
makes or facilitates a retail sale was required to register with the 6 
Department pursuant to NRS 360B.200 or obtain a permit 7 
pursuant to section 27 of this act; or 8 
 (c) The amount of the sales price of a retail sale will ultimately 9 
accrue to or benefit the marketplace facilitator, the marketplace 10 
seller or any other person. 11 
 4. In administering the provisions of this chapter, the 12 
Department shall construe the terms “seller,” “retailer” and 13 
“retailer maintaining a place of business in this State” in 14 
accordance with the provisions of this section. 15 
 Sec. 95.  1. In administering the provisions of this chapter, 16 
the Department shall not hold a marketplace facilitator liable for 17 
the payment of any tax imposed by this chapter which is 18 
attributable to a retail sale made or facilitated on behalf of a 19 
marketplace seller who is not an affiliate of the marketplace 20 
facilitator if: 21 
 (a) The marketplace facilitator provides proof satisfactory to 22 
the Department that the marketplace facilitator has made a 23 
reasonable effort to obtain accurate information from the 24 
marketplace seller about the retail sale; and  25 
 (b) The failure to collect and remit the correct tax on the retail 26 
sale was due to incorrect information provided to the marketplace 27 
facilitator by the marketplace seller. 28 
 2. Except as otherwise provided in subsection 3, in 29 
administering the provisions of this chapter, the Department shall 30 
not hold a marketplace facilitator liable for the payment of any tax 31 
imposed by this chapter which is attributable to a retail sale made 32 
or facilitated on behalf of a marketplace seller who is not an 33 
affiliate of the marketplace facilitator if the marketplace facilitator 34 
provides proof satisfactory to the Department that: 35 
 (a) The retail sale was made before January 1, 2024; 36 
 (b) The retail sale was made through a marketplace of the 37 
marketplace facilitator; and  38 
 (c) The failure to collect the tax imposed by section 24 of this 39 
act and the tax imposed by section 33 of this act was due to an 40 
error other than an error in sourcing the retail sale. 41 
 3. The relief from liability provided pursuant to subsection 2 42 
for the 2024 and 2025 calendar years, respectively, must not 43 
exceed 5 percent of the total tax imposed by sections 24 and 33 of 44 
this act owed for the calendar year on the cumulative gross 45   
 	– 31 – 
 
 
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receipts of the marketplace facilitator from retail sales made or 1 
facilitated by the marketplace facilitator for one or more 2 
marketplace sellers to customers in this State.  3 
 4. If a marketplace facilitator is relieved of liability for the 4 
collection and remittance of any amount of the tax imposed by 5 
section 24 of this act or the tax imposed by section 33 of this act 6 
pursuant to subsection 1, the marketplace seller or purchaser, as 7 
applicable, is liable for the payment of such uncollected, unpaid or 8 
unremitted tax. 9 
 5. To the extent that a marketplace facilitator is relieved of 10 
liability for the collection and remittance of any tax pursuant to 11 
subsections 2 and 3, the marketplace seller for whom the 12 
marketplace facilitator made or facilitated the retail sale giving 13 
rise to the tax is also relieved of such liability. 14 
 6. Nothing in this section shall be construed to relieve any 15 
person of liability for collecting but failing to remit to the 16 
Department any tax imposed by this chapter. 17 
 Sec. 96.  1. The Department may provide by regulation that, 18 
except as otherwise provided in this section, the provisions of this 19 
chapter relating to the imposition, collection and remittance of the 20 
tax imposed by section 24 of this act and the collection and 21 
remittance of the tax imposed by section 33 of this act apply to a 22 
referrer during a calendar year in which, or during a calendar 23 
year immediately following any calendar year in which: 24 
 (a) The cumulative gross receipts from retail sales of tangible 25 
personal property and specified digital products to customers in 26 
this State resulting from referrals from a platform of the referrer 27 
are in excess of $100,000; or 28 
 (b) There are 200 or more separate retail sales transactions 29 
involving sales of tangible personal property or specified digital 30 
products to customers in this State resulting from referrals from a 31 
platform of the referrer. 32 
 2. Any regulations adopted by the Department pursuant to 33 
subsection 1 must provide that the provisions of this chapter 34 
relating to the imposition, collection and remittance of the tax 35 
imposed by section 24 of this act, and the collection and 36 
remittance of the tax imposed by section 33 of this act do not apply 37 
to a referrer described in subsection 1 if the referrer: 38 
 (a) Posts a conspicuous notice on each platform of the referrer 39 
that includes all of the following: 40 
  (1) A statement that tax imposed by sections 24 and 33 of 41 
this act is due on certain purchases; 42 
  (2) A statement that the marketplace seller from whom the 43 
person is purchasing on the platform may or may not collect and 44   
 	– 32 – 
 
 
- 	*SB396* 
remit the tax imposed by sections 24 and 33 of this act on a 1 
purchase; 2 
  (3) A statement that Nevada requires the purchaser to pay 3 
the tax imposed by sections 24 and 33 of this act and file a return 4 
for such taxes if the tax imposed by sections 24 and 33 of this act 5 
is not collected at the time of the sale by the marketplace seller; 6 
  (4) Information informing the purchaser that the notice is 7 
provided under the requirements of this section; and 8 
  (5) Instructions for obtaining additional information from 9 
the Department regarding whether and how to remit the tax 10 
imposed by sections 24 and 33 of this act; 11 
 (b) The referrer provides a monthly notice to each marketplace 12 
seller to whom the referrer made a referral of a potential customer 13 
located in this State during the previous calendar year, which 14 
monthly notice shall contain all of the following: 15 
  (1) A statement that Nevada imposes the tax imposed by 16 
sections 24 and 33 of this act on retail sales in this State; 17 
  (2) A statement that a marketplace facilitator or other 18 
retailer making retail sales in this State must collect and remit the 19 
tax imposed by sections 24 and 33 of this act; and 20 
  (3) Instructions for obtaining additional information from 21 
the Department regarding the collection and remittance of the tax 22 
imposed by sections 24 and 33 of this act; and 23 
 (c) The referrer provides the Department with periodic reports 24 
in an electronic format and in the manner prescribed by the 25 
Department, which reports contain all of the following: 26 
  (1) A list of marketplace sellers who received a notice from 27 
the referrer pursuant to paragraph (b); 28 
  (2) A list of marketplace sellers that collect and remit the 29 
tax imposed by sections 24 and 33 of this act and that list or 30 
advertise the marketplace seller’s products for sale on a platform 31 
of the referrer; and 32 
  (3) An affidavit signed under penalty of perjury from an 33 
officer of the referrer affirming that the referrer made reasonable 34 
efforts to comply with the applicable notice and reporting 35 
requirements of this subsection. 36 
 3. Any regulations adopted by the Department pursuant to 37 
subsection 1 must provide that in administering the provisions of 38 
this chapter, the Department shall construe the terms “seller,” 39 
“retailer” and “retailer maintaining a place of business in this 40 
State” in accordance with the provisions of this section. 41 
 4. Any regulations adopted by the Department pursuant to 42 
subsection 1 must apply only to referrals by a referrer and shall 43 
not preclude the applicability of other provisions of this chapter to 44   
 	– 33 – 
 
 
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a person who is a referrer and is also a retailer, a marketplace 1 
facilitator or a marketplace seller. 2 
 5. As used in this section: 3 
 (a) “Platform” means an electronic or physical medium, 4 
including, without limitation, an Internet site or catalog, that is 5 
owned, operated or controlled by a referrer. 6 
 (b) “Referral” means the transfer through telephone, Internet 7 
link or other means by a referrer of a potential customer to a 8 
retailer or seller who advertises or lists specified digital products 9 
for sale on a platform of the referrer. 10 
 (c) “Referrer”: 11 
  (1) Means a person who does all of the following: 12 
   (I) Contracts or otherwise agrees with a retailer, seller 13 
or marketplace facilitator to list or advertise for sale specified 14 
digital products of the retailer, seller or marketplace facilitator on 15 
a platform, provided such listing or advertisement identifies 16 
whether or not the retailer, seller or marketplace facilitator 17 
collects the tax imposed by sections 24 and 33 of this act; 18 
   (II) Receives a commission, fee or other consideration 19 
from the retailer, seller or marketplace facilitator for the listing or 20 
advertisement; 21 
   (III) Provides referrals to a retailer, seller or 22 
marketplace facilitator, or an affiliate of a retailer, seller or 23 
marketplace facilitator; and 24 
   (IV) Does not collect money or other consideration from 25 
the customer for the transaction. 26 
  (2) Does not include: 27 
   (I) A person primarily engaged in the business of 28 
printing or publishing a newspaper; or 29 
   (II) A person who does not provide the retailer’s, seller’s 30 
or marketplace facilitator’s shipping terms and who does not 31 
advertise whether a retailer, seller or marketplace facilitator 32 
collects the tax imposed by sections 24 and 33 of this act. 33 
 Sec. 97.  1. Nothing in sections 90 to 97, inclusive, of this 34 
act shall be construed to create any remedy or private right of 35 
action against a marketplace facilitator. 36 
 2. A marketplace facilitator that is required to collect taxes 37 
imposed by this chapter is immune from civil liability for claims 38 
arising from or related to the overpayment of taxes imposed by this 39 
chapter if the marketplace facilitator acted in good faith and 40 
without malicious intent. 41 
 3. Nothing in this section applies to or otherwise limits: 42 
 (a) Any claim, action, mandate, power, remedy or discretion of 43 
the Department, or an agent or designee of the Department. 44   
 	– 34 – 
 
 
- 	*SB396* 
 (b) The right of a taxpayer to seek a refund pursuant to 1 
sections 69 to 87, inclusive, of this act. 2 
 Sec. 98.  1. Except as otherwise provided in this section, it is 3 
presumed that the provisions of this chapter relating to the 4 
imposition, collection and remittance of the tax imposed by section 5 
24 of this act, and the collection and remittance of the tax imposed 6 
by section 33 of this act, apply to a retailer if: 7 
 (a) The retailer is part of a controlled group of corporations 8 
that has a component member, other than a common carrier 9 
acting in its capacity as such, that has physical presence in this 10 
State; and 11 
 (b) The component member with physical presence in this 12 
State: 13 
  (1) Sells a similar line of products or services as the retailer 14 
and does so under a business name that is the same or similar to 15 
that of the retailer; 16 
  (2) Maintains an office, distribution facility, warehouse or 17 
storage place or similar place of business in this State to facilitate 18 
the delivery of products or services sold by the retailer to the 19 
retailer’s customers; 20 
  (3) Uses trademarks, service marks or trade names in this 21 
State that are the same or substantially similar to those used by the 22 
retailer; 23 
  (4) Delivers, installs, assembles or performs maintenance 24 
services for the retailer’s customers within this State; 25 
  (5) Facilitates the retailer’s delivery of products or services 26 
to customers in this State by allowing the retailer’s customers to 27 
pick up or receive products or services sold by the retailer at an 28 
office, distribution facility, warehouse, storage place or similar 29 
place of business maintained by the component member in this 30 
State; or 31 
  (6) Conducts any other activities in this State that are 32 
significantly associated with the retailer’s ability to establish and 33 
maintain a market in this State for the retailer’s products or 34 
services. 35 
 2. A retailer may rebut the presumption set forth in 36 
subsection 1 by providing proof satisfactory to the Department 37 
that, during the calendar year in question, the activities of the 38 
component member with physical presence in this State are not 39 
significantly associated with the retailer’s ability to establish or 40 
maintain a market in this State for the retailer’s products or 41 
services. 42 
 3. In administering the provisions of this chapter, the 43 
Department shall construe the terms “seller,” “retailer” and 44   
 	– 35 – 
 
 
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“retailer maintaining a place of business in this State” in 1 
accordance with the provisions of this section. 2 
 4. As used in this section: 3 
 (a) “Component member” has the meaning ascribed to it in 4 
section 1563(b) of the Internal Revenue Code, 26 U.S.C. § 5 
1563(b), and includes any entity that, notwithstanding its form of 6 
organization, bears the same ownership relationship to the retailer 7 
as a corporation that would qualify as a component member of the 8 
same controlled group of corporations as the retailer. 9 
 (b) “Controlled group of corporations” has the meaning 10 
ascribed to it in section 1563(a) of the Internal Revenue Code, 26 11 
U.S.C. § 1563(a), and includes any entity that, notwithstanding its 12 
form of organization, bears the same ownership relationship to the 13 
retailer as a corporation that would qualify as a component 14 
member of the same controlled group of corporations as the 15 
retailer. 16 
 Sec. 99.  1. Except as otherwise provided in this section, it is 17 
presumed that the provisions of this chapter relating to: 18 
 (a) The imposition, collection and remittance of the tax 19 
imposed by section 24 of this act; and 20 
 (b) The collection and remittance of the tax imposed by section 21 
33 of this act, 22 
 apply to every retailer who enters into an agreement with a 23 
resident of this State under which the resident, for a commission 24 
or other consideration based upon the sale of specified digital 25 
products by the retailer, directly or indirectly refers potential 26 
customers, whether by a link on an Internet website or otherwise, 27 
to the retailer, if the cumulative gross receipts from sales by the 28 
retailer to customers in this State who are referred to the retailer 29 
by all residents with this type of an agreement with the retailer is 30 
in excess of $10,000 during the preceding four quarterly periods 31 
ending on the last day of March, June, September and December. 32 
 2. A retailer may rebut the presumption set forth in 33 
subsection 1 by providing proof satisfactory to the Department that 34 
each resident with whom the retailer has an agreement did not 35 
engage in any activity in this State that was significantly 36 
associated with the retailer’s ability to establish or maintain a 37 
market in this State for the retailer’s products or services during 38 
the preceding four quarterly periods ending on the last day of 39 
March, June, September and December. Such proof may consist 40 
of the sworn written statements of each resident with whom the 41 
retailer has an agreement stating that the resident did not engage 42 
in any solicitation in this State on behalf of the retailer during the 43 
preceding four quarterly periods ending on the last day of March, 44   
 	– 36 – 
 
 
- 	*SB396* 
June, September and December, if the statements were obtained 1 
from each resident and provided to the Department in good faith. 2 
 3. In administering the provisions of this chapter, the 3 
Department shall construe the terms “seller,” “retailer” and 4 
“retailer maintaining a place of business in this State” in 5 
accordance with the provisions of this section. 6 
 Sec. 100.  1. The provisions of this chapter relating to the 7 
imposition, collection and remittance of the tax imposed by section 8 
24 of this act, and the collection and remittance of the tax imposed 9 
by section 33 of this act apply to a retailer if, in the immediately 10 
preceding calendar year or the current calendar year: 11 
 (a) The gross revenue of the retailer from the retail sale of 12 
tangible personal property or specified digital products, or the total 13 
gross revenue of the retailer from the retail sale of tangible 14 
personal property and specified digital products, in transactions 15 
that took place in this State, as determined pursuant to NRS 16 
360B.350 to 360B.375, inclusive, or section 23 of this act, as 17 
applicable, is greater than $100,000. 18 
 (b) The retailer had 200 or more transactions that took place 19 
in this State, as determined pursuant to NRS 360B.350 to 20 
360B.375, inclusive, or section 23 of this act, as applicable, in 21 
which tangible personal property or specified digital products were 22 
sold at retail. 23 
 2. In administering the provisions of this chapter, the 24 
Department shall construe the terms “seller,” “retailer” and 25 
“retailer maintaining a place of business in this State” in 26 
accordance with the provisions of subsection 1. 27 
 Sec. 101.  1. The Department shall enforce the provisions of 28 
this chapter and may adopt regulations relating to the 29 
administration and enforcement of this chapter. 30 
 2. The Department may prescribe the extent to which any 31 
regulation may be applied without retroactive effect. 32 
 Sec. 102.  In administering the provisions of section 49 of this 33 
act, the Department shall apply the exemption for the sale of 34 
specified digital products to the State of Nevada, its 35 
unincorporated agencies and instrumentalities to include all 36 
specified digital products that are sold to: 37 
 1. A member of the Nevada National Guard who is engaged 38 
in full-time National Guard duty, as defined in 10 U.S.C. § 39 
101(d)(5) and has been called into active service. 40 
 2. A relative of a member of the Nevada National Guard 41 
eligible for the exemption pursuant to subsection 1 who: 42 
 (a) Resides in the same home or dwelling in this State as the 43 
member; and 44   
 	– 37 – 
 
 
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 (b) Is related by blood, adoption or marriage within the first 1 
degree of consanguinity or affinity to the member. 2 
 3. A relative of a deceased member of the Nevada National 3 
Guard who was engaged in full-time National Guard duty, as 4 
defined in 10 U.S.C. § 101(d)(5), and who was killed while 5 
performing his or her duties as a member of the Nevada National 6 
Guard during a period when the member was called into active 7 
service. To be eligible under this subsection, the relative must be a 8 
person who: 9 
 (a) Resided in the same house or dwelling in this State as the 10 
deceased member; and 11 
 (b) Was related by blood, adoption or marriage within the first 12 
degree of consanguinity or affinity to the deceased member. 13 
 Sec. 103.  1. A person who wishes to claim an exemption 14 
pursuant to section 102 of this act must file an application with the 15 
Department to obtain a letter of exemption. The application must 16 
be on a form and contain such information as is required by the 17 
Department. 18 
 2. If the Department determines that a person is eligible for 19 
the exemption provided pursuant to section 102 of this act, the 20 
Department shall issue a letter of exemption to the person. A letter 21 
of exemption issued to a member of the Nevada National Guard 22 
described in subsection 1 of section 102 of this act or a relative of 23 
a member described in subsection 2 of section 102 of this act 24 
expires on the date on which the person no longer meets the 25 
qualifications for eligibility. A letter of exemption issued to a 26 
relative of a deceased member of the Nevada National Guard 27 
described in subsection 3 of section 102 of this act expires on the 28 
date 3 years after the date of the death of the member. 29 
 3. To claim an exemption pursuant to section 102 of this act 30 
for the sale of specified digital products to such a person: 31 
 (a) The person must provide a copy of the letter of exemption 32 
to the retailer from whom the person purchases the specified 33 
digital products; and 34 
 (b) The retailer must retain and present upon request a copy of 35 
the letter of exemption to the Department. 36 
 4. The Department shall adopt such regulations as are 37 
necessary to carry out the provisions of this section. 38 
 Sec. 104.  The Department may employ accountan ts, 39 
auditors, investigators, assistants and clerks necessary for the 40 
efficient administration of this chapter, and may delegate 41 
authority to its representatives to conduct hearings, adopt 42 
regulations or perform any other duties imposed by this chapter. 43 
 Sec. 105.  1. Notwithstanding any other provision of law, 44 
any broadcaster, printer, outdoor advertising firm, advertising 45   
 	– 38 – 
 
 
- 	*SB396* 
distributor or publisher which broadcasts, publishes, displays or 1 
distributes paid commercial advertising in this State which is 2 
intended to be disseminated primarily to persons located in this 3 
State and is only secondarily disseminated to bordering 4 
jurisdictions, including advertising appearing exclusively in a 5 
Nevada edition or section of a national publication, must be 6 
regarded, for the purposes set forth in subsection 2 only, as the 7 
agent of the person or entity placing the advertisement, and as a 8 
retailer maintaining a place of business in this State. 9 
 2. The agency created by this section is solely for the purpose 10 
of the proper administration of this chapter, to prevent evasion of 11 
the tax imposed by section 33 of this act and the duty to collect that 12 
tax, and to provide a presence in Nevada for the collection of the 13 
tax imposed by section 33 of this act by and from advertisers and 14 
sellers who do not otherwise maintain a place of business in this 15 
State. The agent has no responsibility to report, or liability to pay, 16 
any tax imposed under this chapter and is not restricted by the 17 
provisions of this chapter from accepting advertisements from 18 
advertisers or sellers who do not otherwise maintain a place of 19 
business in this State. 20 
 Sec. 106.  1. Every seller, every retailer, and every person 21 
storing, using or otherwise consuming in this State specified 22 
digital products purchased from a retailer shall keep records, 23 
receipts, invoices and other pertinent papers in such form as the 24 
Department may require. 25 
 2. Every seller, retailer or person who files the returns 26 
required under this chapter shall keep the records for not less than 27 
4 years from their making unless the Department in writing 28 
sooner authorizes their destruction. 29 
 3. Every seller, retailer or person who fails to file the returns 30 
required under this chapter shall keep the records for not less than 31 
8 years from their making unless the Department in writing 32 
sooner authorizes their destruction. 33 
 Sec. 107.  1. The Department, or any person authorized in 34 
writing by it, may examine the books, papers, records and 35 
equipment of any person selling specified digital products and any 36 
person liable for the tax imposed by section 33 of this act and may 37 
investigate the character of the business of the person to verify the 38 
accuracy of any return made, or, if no return is made by the 39 
person, to ascertain and determine the amount required to be paid. 40 
 2. Any person selling or purchasing specified digital products 41 
in this State who: 42 
 (a) Is required to: 43 
  (1) Obtain a permit pursuant to section 27 of this act or 44 
register pursuant to NRS 360B.200; or 45   
 	– 39 – 
 
 
- 	*SB396* 
  (2) File a return pursuant to subsection 2 of section 59 of 1 
this act; and 2 
 (b) Keeps outside of this State his or her records, receipts, 3 
invoices and other documents relating to sales the person has 4 
made or the tax imposed by section 33 of this act due this State, 5 
 shall pay to the Department an amount equal to the allowance 6 
provided for state officers and employees generally while traveling 7 
outside of the State for each day or fraction thereof during which 8 
an employee of the Department is engaged in examining those 9 
documents, plus any other actual expenses incurred by the 10 
employee while he or she is absent from his or her regular place of 11 
employment to examine those documents. 12 
 Sec. 108.  In its administration of the tax imposed by section 13 
33 of this act, the Department may require the filing of reports by 14 
any person or class of persons having in their possession or 15 
custody information relating to sales of specified digital products, 16 
the use of which is subject to the tax. The report must: 17 
 1. Be filed when the Department requires. 18 
 2. Set forth the names and addresses of purchasers of the 19 
specified digital products, the sales price of the specified digital 20 
products, the date of sale, and such other information as the 21 
Department may require. 22 
 Sec. 109.  Any retailer or other person who fails or refuses to 23 
furnish any return required to be made, or who fails or refuses to 24 
furnish a supplemental return or other data required by the 25 
Department, or who renders a false or fraudulent return shall be 26 
fined not more than $500 for each offense. 27 
 Sec. 110.  Any person required to make, render, sign or verify 28 
any report who makes any false or fraudulent return, with intent 29 
to defeat or evade the determination of an amount due required by 30 
law to be made, is guilty of a gross misdemeanor and shall for 31 
each offense be fined not less than $300 nor more than $5,000, or 32 
be imprisoned for not more than 364 days in the county jail, or be 33 
punished by both fine and imprisonment. 34 
 Sec. 111.  Any violation of this chapter, except as otherwise 35 
provided, is a misdemeanor. 36 
 Sec. 112.  Any prosecution for violation of any of the penal 37 
provisions of this chapter must be instituted within 3 years after 38 
the commission of the offense. 39 
 Sec. 113.  In the determination of any case arising under this 40 
chapter, the rule of res judicata is applicable only if the liability 41 
involved is for the same period as was involved in another case 42 
previously determined. 43 
 Sec. 114.  1. All fees, taxes, interest and penalties imposed 44 
and all amounts of tax required to be paid to the State under this 45   
 	– 40 – 
 
 
- 	*SB396* 
chapter must be paid to the Department in the form of remittances 1 
payable to the Department. 2 
 2.  Except as otherwise provided in subsection 3, the 3 
Department shall deposit the payments in the State Treasury to the 4 
credit of each account in the State General Fund to which is 5 
credited a tax imposed upon sales at retail of tangible personal 6 
property and use tax due on the purchase of tangible personal 7 
property for use in this State, in the proportion that would be 8 
credited to each account if the fees, taxes, interest and penalties 9 
imposed or required to be paid to the State under this chapter were 10 
a tax upon sales at retail of tangible personal property or use tax 11 
due on the purchase of tangible personal property for use in this 12 
State. 13 
 3. The payments pursuant to this chapter which, in the 14 
absence of this subsection, would be allocated pursuant to NRS 15 
377.055 and 377.057 must instead be distributed to the county to 16 
which the underlying retail sale of specified digital products is 17 
deemed to take place pursuant to section 23 of this act. 18 
 Sec. 115.  The money in the accounts described in subsection 19 
2 of section 114 of this act may, upon order of the State 20 
Controller, be used for refunds under this chapter. 21 
 Sec. 116.  The remedies of the State provided for in this 22 
chapter are cumulative, and no action taken by the Department or 23 
the Attorney General constitutes an election by the State to pursue 24 
any remedy to the exclusion of any other remedy for which 25 
provision is made in this chapter. 26 
 Sec. 117.  The imposition of taxes by this chapter, the 27 
categories of transactions upon which taxes are imposed and the 28 
specification of exemptions are exclusive. The Nevada Tax 29 
Commission and the Department shall not construe any provision 30 
of this chapter to authorize the imposition of a tax imposed by this 31 
chapter upon any transaction not expressly made taxable by this 32 
chapter. 33 
 Sec. 118.  NRS 360.261 is hereby amended to read as follows: 34 
 360.261 Not later than 30 days after the Department or the 35 
Nevada Tax Commission makes a finding or ruling, or enters into an 36 
agreement with a retailer providing, that the provisions of chapters 37 
372 and 374 of NRS and sections 2 to 117, inclusive, of this act 38 
relating to the imposition, collection and remittance of [the sales] a 39 
tax [, and the collection and remittance of the use tax,] do not apply 40 
to the retailer, despite the presence in this State of an office, 41 
distribution facility, warehouse or storage place or similar place of 42 
business which is owned or operated by the retailer or an affiliate of 43 
the retailer, whether the finding, ruling or agreement is written or 44 
oral and whether the finding, ruling or agreement is express or 45   
 	– 41 – 
 
 
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implied, the Department shall submit a report of the finding, ruling 1 
or agreement to the Director of the Legislative Counsel Bureau for 2 
transmittal to: 3 
 1. If the Legislature is in session, the Legislature; or 4 
 2. If the Legislature is not in session, the Legislative 5 
Commission. 6 
 Sec. 119.  NRS 360.2937 is hereby amended to read as 7 
follows: 8 
 360.2937 1.  Except as otherwise provided in this section, 9 
NRS 360.320 or any other specific statute, and notwithstanding the 10 
provisions of NRS 360.2935, interest must be paid upon an 11 
overpayment of any tax provided for in chapter 362, 363A, 363B, 12 
363C, 363D, 369, 370, 372, 372B, 374, 377, 377A, 377C or 377D 13 
of NRS [,] or sections 2 to 117, inclusive, of this act, any of the 14 
taxes provided for in NRS 372A.290, any fee provided for in NRS 15 
444A.090, 482.313, 482C.230 or 482C.240, or any assessment 16 
provided for in NRS 585.497, at the rate of 0.25 percent per month 17 
from the last day of the calendar month following the period for 18 
which the overpayment was made. 19 
 2.  No refund or credit may be made of any interest imposed on 20 
the person making the overpayment with respect to the amount 21 
being refunded or credited. 22 
 3.  The interest must be paid: 23 
 (a) In the case of a refund, to the last day of the calendar month 24 
following the date upon which the person making the overpayment, 25 
if the person has not already filed a claim, is notified by the 26 
Department that a claim may be filed or the date upon which the 27 
claim is certified to the State Board of Examiners, whichever is 28 
earlier. 29 
 (b) In the case of a credit, to the same date as that to which 30 
interest is computed on the tax or the amount against which the 31 
credit is applied. 32 
 Sec. 120.  NRS 360.300 is hereby amended to read as follows: 33 
 360.300 1.  If a person fails to file a return or the Department 34 
is not satisfied with the return or returns of any tax, contribution or 35 
premium or amount of tax, contribution or premium required to be 36 
paid to the State by any person, in accordance with the applicable 37 
provisions of this chapter, chapter 360B, 362, 363A, 363B, 363C, 38 
363D, 369, 370, 372, 372A, 372B, 374, 377, 377A, 377C, 377D or 39 
444A of NRS, NRS 482.313, 482C.230 or 482C.240, or chapter 585 40 
or 680B of NRS [,] or sections 2 to 117, inclusive, of this act, as 41 
administered or audited by the Department, it may compute and 42 
determine the amount required to be paid upon the basis of: 43 
 (a) The facts contained in the return; 44   
 	– 42 – 
 
 
- 	*SB396* 
 (b) Any information within its possession or that may come into 1 
its possession; or 2 
 (c) Reasonable estimates of the amount. 3 
 2.  One or more deficiency determinations may be made with 4 
respect to the amount due for one or for more than one period. 5 
 3.  In making its determination of the amount required to be 6 
paid, the Department shall impose interest on the amount of tax 7 
determined to be due, calculated at the rate and in the manner set 8 
forth in NRS 360.417, unless a different rate of interest is 9 
specifically provided by statute. 10 
 4.  The Department shall impose a penalty of 10 percent in 11 
addition to the amount of a determination that is made in the case of 12 
the failure of a person to file a return with the Department. 13 
 5.  When a business is discontinued, a determination may be 14 
made at any time thereafter within the time prescribed in NRS 15 
360.355 as to liability arising out of that business, irrespective of 16 
whether the determination is issued before the due date of the 17 
liability. 18 
 Sec. 121.  NRS 360.417 is hereby amended to read as follows: 19 
 360.417 Except as otherwise provided in NRS 360.232 and 20 
360.320, and unless a different penalty or rate of interest is 21 
specifically provided by statute, any person who fails to pay any tax 22 
provided for in chapter 362, 363A, 363B, 363C, 363D, 369, 370, 23 
372, 372B, 374, 377, 377A, 377C, 377D, 444A or 585 of NRS [,] or 24 
sections 2 to 117, inclusive, of this act, any of the taxes provided 25 
for in NRS 372A.290, or any fee provided for in NRS 482.313, 26 
482C.230 or 482C.240, and any person or governmental entity that 27 
fails to pay any fee provided for in NRS 360.787, to the State or a 28 
county within the time required, shall pay a penalty of not more than 29 
10 percent of the amount of the tax or fee which is owed, as 30 
determined by the Department, in addition to the tax or fee, plus 31 
interest at the rate of 0.75 percent per month, or fraction of a month, 32 
from the last day of the month following the period for which the 33 
amount or any portion of the amount should have been reported 34 
until the date of payment. The amount of any penalty imposed must 35 
be based on a graduated schedule adopted by the Nevada Tax 36 
Commission which takes into consideration the length of time the 37 
tax or fee remained unpaid. 38 
 Sec. 122.  NRS 360.510 is hereby amended to read as follows: 39 
 360.510 1.  If any person is delinquent in the payment of any 40 
tax or fee administered by the Department or if a determination has 41 
been made against the person which remains unpaid, the 42 
Department may: 43 
 (a) Not later than 3 years after the payment became delinquent 44 
or the determination became final; or 45   
 	– 43 – 
 
 
- 	*SB396* 
 (b) Not later than 6 years after the last recording of an abstract 1 
of judgment or of a certificate constituting a lien for tax owed, 2 
 give a notice of the delinquency and a demand to transmit 3 
personally or by registered or certified mail to any person, 4 
including, without limitation, any officer or department of this State 5 
or any political subdivision or agency of this State, who has in his or 6 
her possession or under his or her control any credits or other 7 
personal property belonging to the delinquent, or owing any debts to 8 
the delinquent or person against whom a determination has been 9 
made which remains unpaid, or owing any debts to the delinquent or 10 
that person. In the case of any state officer, department or agency, 11 
the notice must be given to the officer, department or agency before 12 
the Department presents the claim of the delinquent taxpayer to the 13 
State Controller. 14 
 2.  A state officer, department or agency which receives such a 15 
notice may satisfy any debt owed to it by that person before it 16 
honors the notice of the Department. 17 
 3.  After receiving the demand to transmit, the person notified 18 
by the demand may not transfer or otherwise dispose of the credits, 19 
other personal property, or debts in his or her possession or under 20 
his or her control at the time the person received the notice until the 21 
Department consents to a transfer or other disposition. 22 
 4.  Every person notified by a demand to transmit shall, within 23 
10 days after receipt of the demand to transmit, inform the 24 
Department of and transmit to the Department all such credits, other 25 
personal property or debts in his or her possession, under his or her 26 
control or owing by that person within the time and in the manner 27 
requested by the Department. Except as otherwise provided in 28 
subsection 5, no further notice is required to be served to that 29 
person. 30 
 5.  If the property of the delinquent taxpayer consists of a series 31 
of payments owed to him or her, the person who owes or controls 32 
the payments shall transmit the payments to the Department until 33 
otherwise notified by the Department. If the debt of the delinquent 34 
taxpayer is not paid within 1 year after the Department issued the 35 
original demand to transmit, the Department shall issue another 36 
demand to transmit to the person responsible for making the 37 
payments informing him or her to continue to transmit payments to 38 
the Department or that his or her duty to transmit the payments to 39 
the Department has ceased. 40 
 6.  If the notice of the delinquency seeks to prevent the transfer 41 
or other disposition of a deposit in a bank or credit union or other 42 
credits or personal property in the possession or under the control of 43 
a bank, credit union or other depository institution, the notice must 44 
be delivered or mailed to any branch or office of the bank, credit 45   
 	– 44 – 
 
 
- 	*SB396* 
union or other depository institution at which the deposit is carried 1 
or at which the credits or personal property is held. 2 
 7.  If any person notified by the notice of the delinquency 3 
makes any transfer or other disposition of the property or debts 4 
required to be withheld or transmitted, to the extent of the value of 5 
the property or the amount of the debts thus transferred or paid, that 6 
person is liable to the State for any indebtedness due pursuant to this 7 
chapter, chapter 360B, 362, 363A, 363B, 363C, 363D, 369, 370, 8 
372, 372A, 372B, 374, 377, 377A, 377C, 377D or 444A of NRS, 9 
NRS 482.313, 482C.230 or 482C.240, or chapter 585 or 680B of 10 
NRS or sections 2 to 117, inclusive, of this act from the person with 11 
respect to whose obligation the notice was given if solely by reason 12 
of the transfer or other disposition the State is unable to recover the 13 
indebtedness of the person with respect to whose obligation the 14 
notice was given. 15 
 Sec. 123.  Chapter 360B of NRS is hereby amended by adding 16 
thereto a new section to read as follows: 17 
 “Specified digital products” has the meaning ascribed to it in 18 
section 21 of this act. 19 
 Sec. 124.  NRS 360B.030 is hereby amended to read as 20 
follows: 21 
 360B.030 As used in this chapter, unless the context otherwise 22 
requires, the words and terms defined in NRS 360B.040 to 23 
360B.100, inclusive, and section 123 of this act have the meanings 24 
ascribed to them in those sections. 25 
 Sec. 125.  NRS 360B.063 is hereby amended to read as 26 
follows: 27 
 360B.063 “Purchaser” means a person to whom a sale of 28 
tangible personal property or specified digital products is made. 29 
 Sec. 126.  NRS 360B.080 is hereby amended to read as 30 
follows: 31 
 360B.080 “Seller” means any person making sales, leases or 32 
rentals of tangible personal property [.] or specified digital 33 
products. 34 
 Sec. 127.  NRS 360B.290 is hereby amended to read as 35 
follows: 36 
 360B.290 Any invoice, billing or other document given to a 37 
purchaser that indicates the sales price for which tangible personal 38 
property or specified digital products is sold: 39 
 1.  May state separately any amount received by the seller for 40 
any transportation, shipping or postage charges for the delivery of 41 
the property to a location designated by the purchaser; and 42 
 2.  Must state separately any amount received by the seller for: 43 
 (a) Any installation charges for the property; 44   
 	– 45 – 
 
 
- 	*SB396* 
 (b) Any credit for any trade-in which is specifically exempted 1 
from the sales price of the property pursuant to chapter 372 or 374 2 
of NRS; 3 
 (c) Any interest, financing and carrying charges from credit 4 
extended on the sale; and 5 
 (d) Any taxes legally imposed directly on the consumer. 6 
 Sec. 128.  NRS 360B.320 is hereby amended to read as 7 
follows: 8 
 360B.320 1.  The Department shall provide public 9 
notification to consumers of tangible personal property [,] or 10 
specified digital products, including purchasers who are exempt 11 
from any sales and use taxes, of the practices of this State relating to 12 
the collection, use and retention of any personally identifiable 13 
information. 14 
 2.  The Department shall not retain any personally identifiable 15 
information if the information is no longer required to ensure the 16 
validity of exemptions from sales and use taxes. 17 
 3.  When any personally identifiable information that identifies 18 
a natural person is retained by or on behalf of the State, that person 19 
is entitled to reasonable access to that information to correct any 20 
portion thereof which has been inaccurately recorded. 21 
 4.  If any person or other entity, except a state which is a 22 
member of the Agreement or any person or other entity who is 23 
entitled to such information pursuant to any state law or the 24 
Agreement, requests any personally identifiable information 25 
maintained by the Department, the Department shall make a 26 
reasonable and timely effort to notify any person who is identified 27 
by the requested information. 28 
 5.  The Attorney General shall enforce the provisions of this 29 
section. 30 
 6.  As used in this section, “personally identifiable information” 31 
means information that identifies: 32 
 (a) A participant in the system created pursuant to the 33 
Agreement; or 34 
 (b) A consumer of tangible personal property or specified 35 
digital products who deals with a registered seller that elects to use 36 
a certified service provider as its agent to perform all the functions 37 
of the seller relating to sales and use taxes, other than the obligation 38 
of the seller to remit the taxes on its own purchases. 39 
 Sec. 129.  The provisions of subsection 1 of NRS 218D.380 do 40 
not apply to any provision of this act which adds or revises a 41 
requirement to submit a report to the Legislature. 42 
 Sec. 130.  NRS 360B.483 is hereby repealed. 43 
 Sec. 131.  1. This section becomes effective upon passage 44 
and approval. 45   
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 2. Sections 1 to 130, inclusive, of this act become effective: 1 
 (a) Upon passage and approval for the purposes of adopting 2 
regulations and taking such other actions as are necessary to carry 3 
out the provisions of this act; and 4 
 (b) On January 1, 2024, for all other purposes. 5 
 
 
TEXT OF REPEALED SECTION 
 
 
 360B.483 “Specified digital products” construed. 
 1.  “Specified digital products” means electronically transferred 
digital audio works, digital audiovisual works and digital books. 
 2.  As used in this section: 
 (a) “Digital audio works” means works that result from the 
fixation of a series of musical, spoken or other sounds, including 
ringtones. 
 (b) “Digital audiovisual works” means a series of related images 
which, when shown in succession, impart an impression of motion, 
together with accompanying sounds, if any. 
 (c) “Digital books” means works that are generally recognized 
in the ordinary and usual sense as books. 
 (d) “Electronically transferred” means obtained by a purchaser 
by means other than tangible storage media. 
 (e) “Ringtones” means digitized sound files that are downloaded 
onto a device and may be used to alert the customer with respect to 
a communication. 
 
H