REQUIRES TWO-THIRDS MAJORITY VOTE
(§§ 24, 27, 28, 33, 107)
S.B. 392
- *SB392*
SENATE BILL NO. 392–SENATOR NEAL
MARCH 17, 2025
____________
Referred to Committee on Revenue and
Economic Development
SUMMARY—Imposes a tax on the retail sale of certain digital
products. (BDR 32-700)
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 in 7
which the sale of the specified digital products takes place, as determined pursuant 8
to section 23. Under section 100 of this bill, the requirement to impose, collect and 9
remit the tax is imposed on a retailer who does not maintain a place of business in 10
this State if, in the immediately preceding calendar year or the current calendar 11
year, the retailer had more than $100,000 of gross revenue from certain transactions 12
that took place in this State or 200 or more such transactions that took place in this 13
State. Sections 1-22, 25-32, 34-99 and 101-127 of this bill provide for the 14
administration, collection and enforcement of the tax in the same manner as 15
the sales and use tax. Section 130 of this bill establishes January 1, 2026, as the 16
effective date of this bill. 17
Section 94 requires a person who directly or indirectly facilitates retail sales of 18
specified digital products to collect and remit the tax if, in the immediately 19
preceding calendar year or the current calendar year, the facilitator had more than 20
$100,000 of gross receipts from certain transactions made to customers in this State 21
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or made or facilitated 200 or more transactions, on its own behalf or on behalf of a 22
seller, unless the facilitator enters into an agreement with a seller whereby the seller 23
agrees to assume responsibility for the collection and imposition of the tax. Section 24
95 provides that such a facilitator is not liable for the payment of the tax under 25
certain circumstances. 26
Section 96 requires certain persons who receive a fee in exchange for listing or 27
advertising a product for a seller but do not collect money or other consideration 28
from a customer to impose, collect and remit the tax if 200 or more retail sales to 29
customers in this State result from referrals made by the person or the cumulative 30
gross receipts of sales resulting from such referrals exceed $100,000, unless the 31
person complies with certain notice requirements and makes a monthly report to the 32
Department of Taxation. 33
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 services, 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 sum of the rates of all taxes imposed upon 45
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sales at retail of tangible personal property in the county in which 1
the retail sale of the specified digital goods takes place, as 2
determined pursuant to section 23 of this act, multiplied by the 3
gross receipts of the retailer of the specified digital products. 4
2. The tax imposed by subsection 1 applies whether the 5
purchaser obtains permanent use or less than permanent use of 6
the specified digital product, whether the sale is conditioned or not 7
conditioned upon continued payment from the purchaser and 8
whether the sale is on a subscription basis or is not on a 9
subscription basis. 10
Sec. 25. The tax imposed by section 24 of this act must be 11
collected by the retailer from the end user insofar as it can be 12
done. 13
Sec. 26. 1. It is unlawful for any retailer to advertise or 14
hold out or state to the public or to any customer, directly 15
or indirectly, that the tax or any part thereof will be assumed or 16
absorbed by the retailer or that it will not be added to the selling 17
price of the specified digital products sold or that, if added, it or 18
any part thereof will be refunded. 19
2. Any person violating any provision of this section is guilty 20
of a misdemeanor. 21
Sec. 27. 1. A person shall not engage in or conduct 22
business as a seller in this State unless the person has: 23
(a) Registered with the Department pursuant to NRS 24
360B.200; or 25
(b) Obtained a permit issued by the Department. 26
2. Every application for a permit must: 27
(a) Be made upon a form prescribed by the Department. 28
(b) Set forth the name under which the applicant transacts or 29
intends to transact business and the location of the applicant’s 30
place or places of business. 31
(c) Set forth any other information which the Department may 32
require. 33
(d) Be accompanied by a fee of $5. 34
(e) Be signed by: 35
(1) The owner if he or she is a natural person; 36
(2) A member or partner if the seller is an association or 37
partnership; or 38
(3) An executive officer or some person specifically 39
authorized to sign the application if the seller is a corporation. 40
Written evidence of the signer’s authority must be attached to the 41
application. 42
Sec. 28. 1. If the holder of a permit issued pursuant to this 43
chapter fails to comply with any provision of this chapter or any 44
regulations adopted pursuant thereto, the Department may revoke 45
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or suspend any one or more of the permits held by the person. 1
Before doing so, the Department must hold a hearing after giving 2
10 days’ written notice to the holder of the permit. The notice must 3
specify the time and place of the hearing and require the holder of 4
the permit to show cause why the permit should not be suspended 5
or revoked. 6
2. If a permit is suspended or revoked, the Department must 7
give written notice of the action to the holder of the permit. 8
3. The notices required by this section may be served 9
personally or by mail in the manner prescribed for service of 10
notice of a deficiency determination. 11
4. The Department shall not issue a new permit after the 12
revocation of a permit unless the Department is satisfied that the 13
former holder of the permit will comply with the provisions of this 14
chapter and the regulations of the Department adopted pursuant 15
thereto. 16
5. A retailer whose permit has been suspended or revoked 17
must pay the Department a fee of $5 for the reinstatement of the 18
permit or the issuance of a new permit. 19
Sec. 29. For the purpose of the proper administration of this 20
chapter and to prevent evasion of the tax imposed by section 24 of 21
this act, it is presumed that all gross receipts are subject to the tax 22
until the contrary is established. The burden of proving that a sale 23
of specified digital products is not a sale at retail is upon the 24
person who makes the sale unless the person takes from the 25
purchaser a certificate to the effect that the specified digital 26
products were purchased by an end user and the purchaser: 27
1. Is engaged in the business of commercial broadcasting, 28
rebroadcasting, transmitting, retransmitting, licensing, 29
relicensing, distributing, redistributing or exhibiting specified 30
digital products, in whole or in part, to another person or persons; 31
2. Is registered pursuant to NRS 360B.200 or holds a permit 32
issued pursuant to section 27 of this act, if required; and 33
3. At the time of purchasing the specified digital product, 34
intends to broadcast, rebroadcast, transmit, retransmit, license, 35
relicense, distribute, redistribute or exhibit the specified digital 36
product in the regular course of business or is unable to ascertain 37
at the time of purchase whether the specified digital product will 38
be used for such a purpose or will be used for some other purpose. 39
Sec. 30. A resale certificate must: 40
1. Be substantially in such form and include such 41
information as the Department may prescribe; and 42
2. Unless submitted in electronic form, be signed by the 43
purchaser. 44
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Sec. 31. 1. If a purchaser who gives a resale certificate 1
makes any use of specified digital products other than the 2
commercial broadcasting, rebroadcasting, transmitting, 3
retransmitting, licensing, relicensing, distributing, redistributing 4
or exhibiting of the specified digital products, in whole or in part, 5
to another person or persons in the regular course of business: 6
(a) The use is taxable to the purchaser as of the time one of the 7
specified digital products is first so used by the purchaser, and 8
the sales price of the specified digital products to the purchaser is 9
the measure of the tax. 10
(b) The seller is liable for the tax with respect to the sale of the 11
specified digital products to the purchaser only if: 12
(1) There is an unsatisfied use tax liability pursuant to 13
paragraph (a); and 14
(2) The seller fraudulently failed to collect the tax or 15
solicited the purchaser to provide the resale certificate unlawfully. 16
2. As used in this section, “seller” includes a certified service 17
provider, as that term is defined in NRS 360B.060, acting on 18
behalf of a seller who is registered pursuant to NRS 360B.200. 19
Sec. 32. Any person who gives a resale certificate for 20
specified digital products which the person knows at the time of 21
purchase is not to be further broadcast, rebroadcast, transmitted, 22
retransmitted, licensed, relicensed, distributed, redistributed or 23
exhibited by the person in the regular course of business for the 24
purpose of evading payment to the seller of the amount of the tax 25
applicable to the transaction is guilty of a misdemeanor. 26
Sec. 33. 1. An excise tax is hereby imposed on the use in 27
this State of specified digital products purchased and 28
electronically transferred from any retailer on or after January 1, 29
2026, for use in this State at a rate equal to the sum of the rates of 30
all taxes imposed upon the storage, use or other consumption of 31
tangible personal property in the county in which the use of the 32
specific digital products occurs. 33
2. The tax imposed by subsection 1 applies whether the 34
purchaser obtains permanent use or less than permanent use of 35
the specified digital product, whether the sale is conditioned or not 36
conditioned upon continued payment from the purchaser and 37
whether the sale is on a subscription basis or is not on a 38
subscription basis. 39
3. The tax is imposed with respect to all specified digital 40
products which were electronically transferred in a transaction 41
that is taxable pursuant to this chapter but for which the tax 42
imposed by section 24 of this act was not collected. 43
Sec. 34. Every person storing, using or otherwise consuming 44
in this State specified digital products purchased from a retailer is 45
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liable for the tax. The liability of a person pursuant to this section 1
is not extinguished until the tax has been paid to this State, except 2
that a receipt from a retailer given to the purchaser pursuant to 3
section 35 of this act is sufficient to relieve the purchaser from 4
further liability for the tax to which the receipt refers. 5
Sec. 35. Every retailer maintaining a place of business in 6
this State and making sales of specified digital products for use in 7
this State, not exempted by this chapter, shall, at the time of 8
making the sales or, if the use of the specified digital products is 9
not then taxable hereunder, at the time the use becomes taxable, 10
collect the tax from the purchaser and give to the purchaser a 11
receipt therefor in the manner and form prescribed by the Nevada 12
Tax Commission. 13
Sec. 36. The tax required to be collected by the retailer 14
constitutes a debt owed by the retailer to this State. 15
Sec. 37. It is unlawful for any retailer to advertise or hold 16
out or state to the public or to any customer, directly or indirectly, 17
that the tax or any part thereof will be assumed or absorbed by the 18
retailer or that it will not be added to the selling price of the 19
specified digital products sold or that, if added, it or any part 20
thereof will be refunded. 21
Sec. 38. The tax required pursuant to this chapter to be 22
collected by the retailer from the purchaser must be displayed 23
separately from the list price, the price advertised in the premises, 24
the marked price, or any other price on the sales check or other 25
proof of sale. 26
Sec. 39. Any person who violates section 35, 37 or 38 of this 27
act is guilty of a misdemeanor. 28
Sec. 40. 1. Every retailer who sells specified digital 29
products for use in this State shall register with the Department 30
and give: 31
(a) The name and address of all agents operating in this State. 32
(b) The location of all offices or other places of business in 33
this State. 34
(c) Such other information as the Department may require. 35
2. Every business that purchases specified digital products for 36
use in this State shall, at the time the business obtains a state 37
business license pursuant to chapter 76 of NRS, register with the 38
Department on a form prescribed by the Department. As used in 39
this subsection, “business” has the meaning ascribed to it in 40
NRS 76.020. 41
Sec. 41. For the purpose of the proper administration of this 42
chapter and to prevent evasion of the use tax and the duty to 43
collect the use tax, it is presumed that specified digital products 44
sold by any person for delivery in this State are sold for use in this 45
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State until the contrary is established. The burden of proving that 1
a sale of specified digital products is not a sale at retail is upon the 2
person who makes the sale unless the person takes from the 3
purchaser a certificate to the effect that the specified digital 4
products were purchased by an end user and the purchaser: 5
1. Is engaged in the business of commercial broadcasting, 6
rebroadcasting, transmitting, retransmitting, licensing, 7
relicensing, distributing, redistributing or exhibiting specified 8
digital products, in whole or in part, to another person or persons; 9
2. Is registered pursuant to NRS 360B.200 or holds a permit 10
issued pursuant to section 27 of this act, if required; and 11
3. At the time of purchasing the specified digital products, 12
intends to broadcast, rebroadcast, transmit, retransmit, license, 13
relicense, distribute, redistribute or exhibit the specified digital 14
products in the regular course of business or is unable to ascertain 15
at the time of purchase whether the specified digital products will 16
be used for such a purpose or will be used for some other purpose. 17
Sec. 42. A resale certificate must: 18
1. Be substantially in such form and include such 19
information as the Department may prescribe; and 20
2. Unless submitted in electronic form, be signed by the 21
purchaser. 22
Sec. 43. If a purchaser who gives a resale certificate makes 23
any use of the specified digital products other than the commercial 24
broadcasting, rebroadcasting, transmitting, retransmitting, 25
licensing, relicensing, distributing, redistributing or exhibiting of 26
the specified digital products, in whole or in part, to another 27
person or persons in the regular course of business, the use is 28
taxable as of the time any of the specified digital products is first 29
so stored or used. 30
Sec. 44. As used in sections 44 to 56, inclusive, of this act, 31
“exempted from the taxes imposed by this chapter” means 32
exempted from the computation of the amount of taxes imposed. 33
Sec. 45. There are exempted from the taxes imposed by this 34
chapter the gross receipts from the sale of, and the use in this 35
State of, specified digital products the gross receipts from the sale 36
of which, or the use of which, this State is prohibited from taxing 37
under the Constitution or laws of the United States or under the 38
Constitution of this State. 39
Sec. 46. There are exempted from the taxes imposed by this 40
chapter the gross receipts from the sale of specified digital 41
products that are textbooks sold within the Nevada System of 42
Higher Education. 43
Sec. 47. There are exempted from the taxes imposed by this 44
chapter the gross receipts from the sale of, and the use in this 45
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State of, specified digital products which is a newspaper regularly 1
issued at average intervals not exceeding 1 week and any such 2
newspaper. 3
Sec. 48. There are exempted from the taxes imposed by this 4
chapter the gross receipts from occasional sales of specified digital 5
products and the use in this State of specified digital products, the 6
transfer of which to the purchaser is an occasional sale. 7
Sec. 49. There are exempted from the taxes imposed by this 8
chapter the gross receipts from the sale of any specified digital 9
products to: 10
1. The United States, its unincorporated agencies and 11
instrumentalities. 12
2. Any incorporated agency or instrumentality of the United 13
States wholly owned by the United States or by a corporation 14
wholly owned by the United States. 15
3. The State of Nevada, its unincorporated agencies and 16
instrumentalities. 17
4. Any county, city, district or other political subdivision of 18
this State. 19
Sec. 50. There are exempted from the taxes imposed by this 20
chapter the gross receipts from the sale of, and the use in this 21
State of, any specified digital products sold by or to a nonprofit 22
organization created for religious, charitable or educational 23
purposes. The Legislature shall establish: 24
1. Standards for determining whether an organization is 25
created for religious, charitable or educational purposes. 26
2. Procedures for administering the provisions of this section. 27
Sec. 51. 1. For the purposes of section 50 of this act, an 28
organization is created for religious, charitable or educational 29
purposes if it complies with the provisions of this section. 30
2. An organization is created for religious purposes if: 31
(a) It complies with the requirements set forth in subsection 5; 32
and 33
(b) The sole or primary purpose of the organization is the 34
operation of a church, synagogue or other place of religious 35
worship at which nonprofit religious services and activities are 36
regularly conducted. Such an organization includes, without 37
limitation, an integrated auxiliary or affiliate of the organization, 38
men’s, women’s or youth groups established by the organization, a 39
school or mission society operated by the organization, an 40
organization of local units of a church and a convention or 41
association of churches. 42
3. An organization is created for charitable purposes if: 43
(a) It complies with the requirements set forth in subsection 5; 44
(b) The sole or primary purpose of the organization is to: 45
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(1) Advance a public purpose, donate or render gratuitously 1
or at a reduced rate a substantial portion of its services to the 2
persons who are the subjects of its charitable services, and benefit 3
a substantial and indefinite class of persons who are the legitimate 4
subjects of charity; 5
(2) Provide services that are otherwise required to be 6
provided by a local government, this State or the Federal 7
Government; or 8
(3) Operate a hospital or medical facility licensed pursuant 9
to chapter 449 or 450 of NRS; and 10
(c) The organization is operating in this State. 11
4. An organization is created for educational purposes if: 12
(a) It complies with the requirements set forth in subsection 5; 13
and 14
(b) The sole or primary purpose of the organization is to: 15
(1) Provide athletic, cultural or social activities for 16
children; 17
(2) Provide displays or performances of the visual or 18
performing arts to members of the general public; 19
(3) Provide instruction and disseminate information on 20
subjects beneficial to the community; 21
(4) Operate a school, college or university located in this 22
State that conducts regular classes and provides courses of study 23
required for accreditation or licensing by the State Board of 24
Education or the Commission on Postsecondary Education, or for 25
membership in the Northwest Accreditation Commission or 26
accreditation by the Northwest Commission on Colleges and 27
Universities; 28
(5) Serve as a local or state apprenticeship committee to 29
advance programs of apprenticeship in this State; or 30
(6) Sponsor programs of apprenticeship in this State 31
through a trust created pursuant to 29 U.S.C. § 186. 32
5. In addition to the requirements set forth in subsection 2, 3 33
or 4, as applicable, an organization is created for religious, 34
charitable or educational purposes if: 35
(a) No part of the net earnings of any such organization inures 36
to the benefit of a private shareholder, individual or entity; 37
(b) The business of the organization is not conducted for 38
profit; 39
(c) No substantial part of the business of the organization is 40
devoted to the advocacy of any political principle or the defeat or 41
passage of any state or federal legislation; 42
(d) The organization does not participate or intervene in any 43
political campaign on behalf of or in opposition to any candidate 44
for public office; and 45
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(e) Any property sold to the organization for which an 1
exemption is claimed is used by the organization in this State in 2
furtherance of the religious, charitable or educational purposes of 3
the organization. 4
Sec. 52. There are exempted from the taxes imposed by this 5
chapter on the use of specified digital products any such products 6
loaned or donated to: 7
1. The United States, its unincorporated agencies and 8
instrumentalities. 9
2. Any incorporated agency or instrumentality of the United 10
States wholly owned by the United States or by a corporation 11
wholly owned by the United States. 12
3. The State of Nevada, its unincorporated agencies and 13
instrumentalities. 14
4. Any county, city, district or other political subdivision of 15
this State. 16
5. Any organization created for religious, charitable or 17
eleemosynary purposes, provided that no part of the net earnings 18
of any such organization inures to the benefit of any private 19
shareholder or individual. 20
Sec. 53. The use in this State of specified digital products, 21
the gross receipts from the sale of which are required to be 22
included in the measure of the tax imposed by section 24 of this 23
act, is exempted from the tax imposed by section 33 of this act. 24
Sec. 54. 1. If a purchaser wishes to claim an exemption 25
from the taxes imposed by this chapter, the retailer shall obtain 26
such information from the purchaser as is required by the 27
Department. 28
2. The Department shall, to the extent feasible, establish an 29
electronic system for submitting a request for an exemption. A 30
purchaser is not required to provide a signature to claim an 31
exemption if the request is submitted electronically. 32
3. The Department may establish a system whereby a 33
purchaser who is exempt from the payment of the taxes imposed 34
by this chapter is issued an identification number that can be 35
presented to the retailer at the time of sale. 36
4. A retailer shall maintain such records of exempt 37
transactions as are required by the Department and provide those 38
records to the Department upon request. 39
5. Except as otherwise provided in this subsection, a retailer 40
who complies with the provisions of this section is not liable for 41
the payment of any tax imposed by this chapter if the purchaser 42
improperly claims an exemption. If the purchaser improperly 43
claims an exemption, the purchaser is liable for the payment of the 44
tax. The provisions of this subsection do not apply if the retailer: 45
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(a) Fraudulently fails to collect the tax; 1
(b) Solicits a purchaser to participate in an unlawful claim of 2
an exemption; or 3
(c) Accepts a certificate of exemption from a purchaser who 4
claims an entity-based exemption, the subject of the transaction 5
sought to be covered by the certificate is actually received by the 6
purchaser at a location operated by the seller, and the Department 7
provides, and posts on a website or other Internet site that is 8
operated or administered by or on behalf of the Department, a 9
certificate of exemption which clearly and affirmatively indicates 10
that the claimed exemption is not available. 11
6. As used in this section: 12
(a) “Entity-based exemption” means an exemption based on 13
who purchases the product or who sells the product, and which is 14
not available to all. 15
(b) “Retailer” includes a certified service provider, as that term 16
is defined in NRS 360B.060, acting on behalf of a retailer who is 17
registered pursuant to NRS 360B.200. 18
Sec. 55. 1. Any nonprofit organization created for 19
religious, charitable or educational purposes that wishes to claim 20
an exemption pursuant to section 50 of this act, must file an 21
application with the Department to obtain a letter of exemption. 22
The application must be on a form and contain such information 23
as is required by the Department. 24
2. If the Department determines that the organization is 25
created for religious, charitable or educational purposes, it shall 26
issue a letter of exemption to the organization. The letter of 27
exemption expires 5 years after the date on which it is issued by 28
the Department. At least 90 days before the expiration of the letter 29
of exemption, the Department shall notify the organization to 30
whom the letter was issued of the date on which the letter will 31
expire. The organization may renew its letter of exemption for an 32
additional 5 years by filing an application for renewal with the 33
Department. The application for renewal must be on a form and 34
contain such information as is required by the Department. 35
3. To claim an exemption pursuant to section 50 of this act 36
for the sale of specified digital products to such an organization: 37
(a) The organization must give a copy of its letter of exemption 38
to the retailer from whom the organization purchases the product; 39
and 40
(b) The retailer must retain and present upon request a copy of 41
the letter of exemption. 42
4. The Department shall adopt such regulations as are 43
necessary to carry out the provisions of this section. 44
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Sec. 56. If a purchaser certifies in writing to a seller that the 1
specified digital products purchased will be used in a manner or 2
for a purpose entitling the seller to regard the gross receipts from 3
the sale as exempted by this chapter from the computation of the 4
amount of the taxes imposed by this chapter, and uses the 5
specified digital products in some other manner or for some other 6
purpose, the purchaser shall be liable for payment of the tax as if 7
the purchaser were a retailer making a retail sale of the specified 8
digital products at the time of such use, and the cost of the 9
specified digital products to the purchaser shall be deemed the 10
gross receipts from such retail sale. 11
Sec. 57. A retailer shall hold the amount of all taxes 12
collected pursuant to this chapter in a separate account in trust for 13
the State. 14
Sec. 58. Except as otherwise provided in section 65 of this act 15
or required by the Department pursuant to NRS 360B.200, the 16
taxes imposed by this chapter are due and payable to the 17
Department monthly on or before the last day of the month next 18
succeeding each month. 19
Sec. 59. Except as otherwise required by the Department 20
pursuant to NRS 360B.200: 21
1. On or before the last day of the month following each 22
reporting period, a return for the preceding period must be filed 23
with the Department in such form and manner as the Department 24
may prescribe. Any return required to be filed by this section must 25
be combined with any return required to be filed pursuant to the 26
provisions of chapters 372 and 374 of NRS. 27
2. For purposes of: 28
(a) The tax imposed by section 24 of this act, a return must be 29
filed by each seller. 30
(b) The tax imposed by section 33 of this act, a return must be 31
filed by each retailer maintaining a place of business in the State 32
and by each person purchasing specified digital products, the use 33
of which is subject to the use tax, who has not paid the use tax 34
due. 35
3. Unless filed electronically, returns must be signed by the 36
person required to file the return or by his or her authorized agent 37
but need not be verified by oath. 38
Sec. 60. 1. Except as otherwise required by the Department 39
pursuant to NRS 360B.200: 40
(a) For the purposes of the tax imposed by section 24 of this 41
act: 42
(1) The return must show the gross receipts of the seller 43
during the preceding reporting period. 44
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(2) The gross receipts must be segregated and reported 1
separately for each county to which a sale of specified digital 2
products pertains. 3
(3) A sale pertains to the county in this State in which the 4
retail sale of specified digital products takes place as determined 5
pursuant to section 23 of this act. 6
(b) For purposes of the tax imposed by section 33 of this act: 7
(1) In the case of a return filed by a retailer, the return 8
must show the total sales price of the specified digital products 9
purchased by the retailer, the use of which specified digital 10
products became subject to the use tax during the preceding 11
reporting period. 12
(2) The sales price must be segregated and reported 13
separately for each county to which a purchase of specified digital 14
products pertains. 15
(3) If the specified digital products were: 16
(I) Brought into this State by the purchaser or his or her 17
agent or designee, the sale pertains to the county in this State in 18
which the property is or will be first used, stored or otherwise 19
consumed. 20
(II) Not brought into this State by the purchaser or his 21
or her agent or designee, the sale pertains to the county in this 22
State in which the property was delivered to the purchaser or his 23
or her agent or designee. 24
2. In case of a return filed by a purchaser, the return must 25
show the total sales price of the specified digital products 26
purchased by the purchaser, the use of which became subject to 27
the tax imposed by section 24 of this act during the preceding 28
reporting period and indicate the county in this State in which the 29
specified digital products were first used, stored or consumed. 30
3. The return must also show the amount of the taxes for the 31
period covered by the return and such other information as the 32
Department deems necessary for the proper administration of this 33
chapter. 34
4. Except as otherwise provided in subsection 5, upon 35
determining that a retailer has filed a return which contains one 36
or more violations of the provisions of this section, the Department 37
shall: 38
(a) For the first return of any retailer which contains one or 39
more violations, issue a letter of warning to the retailer which 40
provides an explanation of the violation or violations contained in 41
the return. 42
(b) For the first or second return, other than a return 43
described in paragraph (a), in any calendar year which contains 44
one or more violations, assess a penalty equal to the amount of the 45
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tax which was not reported or was reported for the wrong county 1
or $1,000, whichever is less. 2
(c) For the third and each subsequent return in any calendar 3
year which contains one or more violations, assess a penalty of 4
three times the amount of the tax which was not reported or was 5
reported for the wrong county or $3,000, whichever is less. 6
5. For the purposes of subsection 4, if the first violation of 7
this section by any retailer was determined by the Department 8
through an audit which covered more than one return of the 9
retailer, the Department shall treat all returns which were 10
determined through the same audit to contain a violation 11
or violations in the manner provided in paragraph (a) of 12
subsection 4. 13
Sec. 61. In determining the amount of taxes due pursuant to 14
this chapter: 15
1. The amount due must be computed to the third decimal 16
place and rounded to a whole cent using a method that rounds up 17
to the next cent if the numeral in the third decimal place is greater 18
than 4. 19
2. A retailer may compute the amount due on a transaction 20
on the basis of each item involved in the transaction or a single 21
invoice for the entire transaction. 22
Sec. 62. 1. If a retailer is unable to collect all or part of the 23
sales price of a sale, the retailer is entitled to receive a deduction 24
from his or her taxable sales for that bad debt. 25
2. Any deduction that is claimed pursuant to this section may 26
not include interest. 27
3. The amount of any deduction claimed must equal the 28
amount of a deduction that may be claimed pursuant to section 29
166 of the Internal Revenue Code, 26 U.S.C. § 166, for that sale 30
minus: 31
(a) Any finance charge or interest charged as part of the sale; 32
(b) Any tax imposed by this chapter charged on the sales price; 33
(c) Any amount not paid on the sales price because the 34
specified digital product that was sold was not delivered until the 35
full sales price is paid; and 36
(d) Any expense incurred in attempting to collect the bad debt. 37
4. A bad debt may be claimed as a deduction on the return 38
that covers the period during which the bad debt is written off in 39
the business records of the retailer that are maintained in the 40
ordinary course of the retailer’s business and is eligible to be 41
claimed as a deduction pursuant to section 166 of the Internal 42
Revenue Code, 26 U.S.C. § 166, or if the retailer is not required to 43
file a federal income tax return, would be eligible to be claimed as 44
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a deduction pursuant to section 166 of the Internal Revenue Code, 1
26 U.S.C. § 166. 2
5. If a bad debt for which a deduction has been claimed is 3
subsequently collected in whole or in part, the tax on the amount 4
so collected must be reported on the return that covers the period 5
in which the collection is made. 6
6. If the amount of the bad debt is greater than the amount of 7
the taxable sales reported for the period during which the bad debt 8
is claimed as a deduction, a claim for a refund may be filed 9
pursuant to sections 69 to 87, inclusive, of this act except that the 10
time within which the claim may be filed begins on the date on 11
which the return that included the deduction was filed. 12
7. If the retailer has contracted with a certified service 13
provider for the remittance of the tax due under this chapter, the 14
service provider may, on behalf of the retailer, claim any 15
deduction to which the retailer is entitled pursuant to this section. 16
The service provider shall credit or refund the full amount of any 17
deduction or refund received pursuant to this section to the 18
retailer. 19
8. For the purposes of reporting a payment received on a bad 20
debt for which a deduction has been claimed, the payment must 21
first be applied to the sales price of the specified digital products 22
sold and the tax due thereon, and then to any interest, service 23
charge or other charge that was charged as part of the sale. 24
9. If the records of a retailer indicate that a bad debt may be 25
allocated among other states that are members of the Streamlined 26
Sales and Use Tax Agreement, the retailer may allocate the bad 27
debt among those states. 28
10. A retailer who assigns a debt to an entity which is part of 29
an affiliated group that includes the retailer may claim any 30
deduction or refund to which the retailer would otherwise be 31
entitled pursuant to this section, notwithstanding: 32
(a) The assignment of the debt to the entity; 33
(b) That the debt is written off as a bad debt in the business 34
records of the entity which are maintained in the ordinary course 35
of the entity’s business; and 36
(c) That the bad debt is or would be eligible to be claimed by 37
the entity as a deduction pursuant to section 166 of the Internal 38
Revenue Code, 26 U.S.C. § 166. 39
11. Except as otherwise provided in subsection 12, upon 40
determining that a retailer has filed a return which contains one 41
or more violations of the provisions of this section, the Department 42
shall: 43
(a) For the first return of any retailer which contains one or 44
more violations, issue a letter of warning to the retailer which 45
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provides an explanation of the violation or violations contained in 1
the return. 2
(b) For the first or second return, other than a return 3
described in paragraph (a), in any calendar year which contains 4
one or more violations, assess a penalty equal to the amount of the 5
deduction claimed or $1,000, whichever is less. 6
(c) For the third and each subsequent return in any calendar 7
year which contains one or more violations, assess a penalty of 8
three times the amount of the deduction claimed or $3,000, 9
whichever is less. 10
12. For the purposes of subsection 11, if the first violation of 11
this section by any retailer was determined by the Department 12
through an audit which covered more than one return of the 13
retailer, the Department shall treat all returns which were 14
determined through the same audit to contain a violation 15
or violations in the manner provided in paragraph (a) of 16
subsection 11. 17
13. As used in this section: 18
(a) “Affiliated group” means: 19
(1) An affiliated group as defined in section 1504(a) of the 20
Internal Revenue Code, 26 U.S.C. § 1504(a); or 21
(2) A controlled group of corporations as described in 22
section 1563(a)(2) of the Internal Revenue Code, 26 U.S.C. § 23
1563(a)(2). 24
(b) “Bad debt” means a debt that may be deducted pursuant to 25
section 166 of the Internal Revenue Code, 26 U.S.C. § 166. 26
(c) “Certified service provider” has the meaning ascribed to it 27
in NRS 360B.060. 28
Sec. 63. 1. Except as otherwise provided in subsection 2, if 29
the taxes imposed by this chapter are paid in accordance with 30
section 58 of this act, a taxpayer may deduct and withhold from 31
the taxes otherwise due from the taxpayer 0.25 percent of those 32
taxes as reimbursement for the cost of collecting the tax. 33
2. The regulations adopted by the Nevada Tax Commission 34
pursuant to NRS 360B.110 may authorize the deduction and 35
withholding from the taxes otherwise due from a taxpayer such 36
other amounts as are required to carry out the Streamlined Sales 37
and Use Tax Agreement. 38
Sec. 64. 1. Except as otherwise authorized or required by 39
the Department, the person required to file a return shall deliver 40
the return together with a remittance of the amount of the tax due 41
to the Department. 42
2. The Department shall provide for the acceptance of credit 43
cards, debit cards or electronic transfers of money for the payment 44
of the tax due in the manner prescribed pursuant to NRS 360.092. 45
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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
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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
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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
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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
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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
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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
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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
services 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 services 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 services 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
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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
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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, 2026; 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 2026 and 2027 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
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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
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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
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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
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(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
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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
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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 who does not maintain a 10
place of business in this State if, in the immediately preceding 11
calendar year or the current calendar year: 12
(a) The gross revenue of the retailer from the retail sale of 13
tangible personal property or specified digital products, or the total 14
gross revenue of the retailer from the retail sale of tangible 15
personal property and specified digital products, in transactions 16
that took place in this State, as determined pursuant to NRS 17
360B.350 to 360B.375, inclusive, or section 23 of this act, as 18
applicable, is greater than $100,000. 19
(b) The retailer had 200 or more transactions that took place 20
in this State, as determined pursuant to NRS 360B.350 to 21
360B.375, inclusive, or section 23 of this act, as applicable, in 22
which tangible personal property or specified digital products were 23
sold at retail. 24
2. In administering the provisions of this chapter, the 25
Department shall construe the terms “seller,” “retailer” and 26
“retailer maintaining a place of business in this State” in 27
accordance with the provisions of subsection 1. 28
Sec. 101. 1. The Department shall enforce the provisions of 29
this chapter and may adopt regulations relating to the 30
administration and enforcement of this chapter. 31
2. The Department may prescribe the extent to which any 32
regulation may be applied without retroactive effect. 33
Sec. 102. In administering the provisions of section 49 of this 34
act, the Department shall apply the exemption for the sale of 35
specified digital products to the State of Nevada, its 36
unincorporated agencies and instrumentalities to include all 37
specified digital products that are sold to: 38
1. A member of the Nevada National Guard who is engaged 39
in full-time National Guard duty, as defined in 10 U.S.C. § 40
101(d)(5) and has been called into active service. 41
2. A relative of a member of the Nevada National Guard 42
eligible for the exemption pursuant to subsection 1 who: 43
(a) Resides in the same home or dwelling in this State as the 44
member; and 45
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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 accountants, 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
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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 the Department, may examine the books, papers, 35
records and equipment of any person selling specified digital 36
products and any person liable for the tax imposed by section 33 of 37
this act and may investigate the character of the business of the 38
person to verify the accuracy of any return made or, if no return is 39
made by the person, to ascertain and determine the amount 40
required to be paid. 41
2. Any person selling or purchasing specified digital products 42
in this State who: 43
(a) Is required to: 44
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(1) Obtain a permit pursuant to section 27 of this act or 1
register pursuant to NRS 360B.200; or 2
(2) File a return pursuant to subsection 2 of section 59 of 3
this act; and 4
(b) Keeps outside of this State his or her records, receipts, 5
invoices and other documents relating to sales the person has 6
made or the tax imposed by section 33 of this act due this State, 7
shall pay to the Department an amount equal to the allowance 8
provided for state officers and employees generally while traveling 9
outside of the State for each day or fraction thereof during which 10
an employee of the Department is engaged in examining those 11
documents, plus any other actual expenses incurred by the 12
employee while he or she is absent from his or her regular place of 13
employment to examine those documents. 14
Sec. 108. In its administration of the tax imposed by section 15
33 of this act, the Department may require the filing of reports by 16
any person or class of persons having in their possession or 17
custody information relating to sales of specified digital products, 18
the use of which is subject to the tax. The report must: 19
1. Be filed when the Department requires. 20
2. Set forth the names and addresses of purchasers of the 21
specified digital products, the sales price of the specified digital 22
products, the date of sale and such other information as the 23
Department may require. 24
Sec. 109. Any retailer or other person who fails or refuses to 25
furnish any return required to be made, or who fails or refuses to 26
furnish a supplemental return or other data required by the 27
Department, or who renders a false or fraudulent return shall be 28
fined not more than $500 for each offense. 29
Sec. 110. Any person required to make, render, sign or verify 30
any report who makes any false or fraudulent return, with intent 31
to defeat or evade the determination of an amount due required by 32
law to be made, is guilty of a gross misdemeanor and shall for 33
each offense be fined not less than $300 nor more than $5,000, or 34
be imprisoned for not more than 364 days in the county jail, or be 35
punished by both fine and imprisonment. 36
Sec. 111. Any violation of this chapter, except as otherwise 37
provided, is a misdemeanor. 38
Sec. 112. Any prosecution for violation of any of the penal 39
provisions of this chapter must be instituted within 3 years after 40
the commission of the offense. 41
Sec. 113. In the determination of any case arising under this 42
chapter, the rule of res judicata is applicable only if the liability 43
involved is for the same period as was involved in another case 44
previously determined. 45
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Sec. 114. 1. All fees, taxes, interest and penalties imposed 1
and all amounts of tax required to be paid to the State under this 2
chapter must be paid to the Department in the form of remittances 3
payable to the Department. 4
2. Except as otherwise provided in subsection 3, the 5
Department shall deposit the payments in the State Treasury to the 6
credit of each account in the State General Fund to which is 7
credited a tax imposed upon sales at retail of tangible personal 8
property and use tax due on the purchase of tangible personal 9
property for use in this State, in the proportion that would be 10
credited to each account if the fees, taxes, interest and penalties 11
imposed or required to be paid to the State under this chapter were 12
a tax upon sales at retail of tangible personal property or use tax 13
due on the purchase of tangible personal property for use in this 14
State. 15
3. The payments pursuant to this chapter which, in the 16
absence of this subsection, would be allocated pursuant to NRS 17
377.055 and 377.057 must instead be distributed to the county to 18
which the underlying retail sale of specified digital products is 19
deemed to take place pursuant to section 23 of this act. 20
Sec. 115. The money in the accounts described in subsection 21
2 of section 114 of this act may, upon order of the State 22
Controller, be used for refunds under this chapter. 23
Sec. 116. The remedies of the State provided for in this 24
chapter are cumulative, and no action taken by the Department or 25
the Attorney General constitutes an election by the State to pursue 26
any remedy to the exclusion of any other remedy for which 27
provision is made in this chapter. 28
Sec. 117. The imposition of taxes by this chapter, the 29
categories of transactions upon which taxes are imposed and the 30
specification of exemptions are exclusive. The Nevada Tax 31
Commission and the Department shall not construe any provision 32
of this chapter to authorize the imposition of a tax imposed by this 33
chapter upon any transaction not expressly made taxable by this 34
chapter. 35
Sec. 118. NRS 360.261 is hereby amended to read as follows: 36
360.261 Not later than 30 days after the Department or the 37
Nevada Tax Commission makes a finding or ruling, or enters into an 38
agreement with a retailer providing, that the provisions of chapters 39
372 and 374 of NRS and sections 2 to 117, inclusive, of this act 40
relating to the imposition, collection and remittance of [the sales] a 41
tax [, and the collection and remittance of the use tax,] do not apply 42
to the retailer, despite the presence in this State of an office, 43
distribution facility, warehouse or storage place or similar place of 44
business which is owned or operated by the retailer or an affiliate of 45
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the retailer, whether the finding, ruling or agreement is written or 1
oral and whether the finding, ruling or agreement is express or 2
implied, the Department shall submit a report of the finding, ruling 3
or agreement to the Director of the Legislative Counsel Bureau for 4
transmittal to: 5
1. If the Legislature is in session, the Legislature; or 6
2. If the Legislature is not in session, the Legislative 7
Commission. 8
Sec. 119. NRS 360.2937 is hereby amended to read as 9
follows: 10
360.2937 1. Except as otherwise provided in this section, 11
NRS 360.320 or any other specific statute, and notwithstanding the 12
provisions of subsection 1 of NRS 360.2935, interest must be paid 13
upon an overpayment of any tax provided for in chapter 362, 363A, 14
363B, 363C, 363D, 369, 370, 372, 372B, 374, 377, 377A, 377C or 15
377D of NRS [,] or sections 2 to 117, inclusive, of this act, any of 16
the taxes provided for in NRS 372A.290, any fee provided for in 17
NRS 444A.090, 482.313, 482C.230 or 482C.240, or any assessment 18
provided for in NRS 585.497, at the rate of 0.25 percent per month 19
from the last day of the calendar month following the period for 20
which the overpayment was made. 21
2. No refund or credit may be made of any interest imposed on 22
the person making the overpayment with respect to the amount 23
being refunded or credited. 24
3. The interest must be paid: 25
(a) In the case of a refund, to the last day of the calendar month 26
following the date upon which the person making the overpayment, 27
if the person has not already filed a claim, is notified by the 28
Department that a claim may be filed or the date upon which the 29
claim is certified to the State Board of Examiners, whichever is 30
earlier. 31
(b) In the case of a credit, to the same date as that to which 32
interest is computed on the tax or the amount against which the 33
credit is applied. 34
Sec. 120. NRS 360.300 is hereby amended to read as follows: 35
360.300 1. If a person fails to file a return or the Department 36
is not satisfied with the return or returns of any tax, contribution or 37
premium or amount of tax, contribution or premium required to be 38
paid to the State by any person, in accordance with the applicable 39
provisions of this chapter, chapter 360B, 362, 363A, 363B, 363C, 40
363D, 369, 370, 372, 372A, 372B, 374, 377, 377A, 377C, 377D or 41
444A of NRS, NRS 482.313, 482C.230 or 482C.240, or chapter 585 42
or 680B of NRS [,] or sections 2 to 117, inclusive, of this act, as 43
administered or audited by the Department, it may compute and 44
determine the amount required to be paid upon the basis of: 45
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(a) The facts contained in the return; 1
(b) Any information within its possession or that may come into 2
its possession; or 3
(c) Reasonable estimates of the amount. 4
2. One or more deficiency determinations may be made with 5
respect to the amount due for one or for more than one period. 6
3. In making its determination of the amount required to be 7
paid, the Department shall impose interest on the amount of tax 8
determined to be due, calculated at the rate and in the manner set 9
forth in NRS 360.417, unless a different rate of interest is 10
specifically provided by statute. 11
4. The Department shall impose a penalty of 10 percent in 12
addition to the amount of a determination that is made in the case of 13
the failure of a person to file a return with the Department. 14
5. When a business is discontinued, a determination may be 15
made at any time thereafter within the time prescribed in NRS 16
360.355 as to liability arising out of that business, irrespective of 17
whether the determination is issued before the due date of the 18
liability. 19
Sec. 121. NRS 360.417 is hereby amended to read as follows: 20
360.417 Except as otherwise provided in NRS 360.232 and 21
360.320, and unless a different penalty or rate of interest is 22
specifically provided by statute, any person who fails to pay any tax 23
provided for in chapter 362, 363A, 363B, 363C, 363D, 369, 370, 24
372, 372B, 374, 377, 377A, 377C, 377D, 444A or 585 of NRS [,] or 25
sections 2 to 117, inclusive, of this act, any of the taxes provided 26
for in NRS 372A.290, or any fee provided for in NRS 482.313, 27
482C.230 or 482C.240, and any person or governmental entity that 28
fails to pay any fee provided for in NRS 360.787, to the State or a 29
county within the time required, shall pay a penalty of not more than 30
10 percent of the amount of the tax or fee which is owed, as 31
determined by the Department, in addition to the tax or fee, plus 32
interest at the rate of 0.75 percent per month, or fraction of a month, 33
from the last day of the month following the period for which the 34
amount or any portion of the amount should have been reported 35
until the date of payment. The amount of any penalty imposed must 36
be based on a graduated schedule adopted by the Nevada Tax 37
Commission which takes into consideration the length of time the 38
tax or fee remained unpaid. 39
Sec. 122. NRS 360.510 is hereby amended to read as follows: 40
360.510 1. If any person is delinquent in the payment of any 41
tax or fee administered by the Department or if a determination has 42
been made against the person which remains unpaid, the 43
Department may: 44
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(a) Not later than 3 years after the payment became delinquent 1
or the determination became final; or 2
(b) Not later than 6 years after the last recording of an abstract 3
of judgment or of a certificate constituting a lien for tax owed, 4
give a notice of the delinquency and a demand to transmit 5
personally or by registered or certified mail to any person, 6
including, without limitation, any officer or department of this State 7
or any political subdivision or agency of this State, who has in his or 8
her possession or under his or her control any credits or other 9
personal property belonging to the delinquent, or owing any debts to 10
the delinquent or person against whom a determination has been 11
made which remains unpaid, or owing any debts to the delinquent or 12
that person. In the case of any state officer, department or agency, 13
the notice must be given to the officer, department or agency before 14
the Department presents the claim of the delinquent taxpayer to the 15
State Controller. 16
2. A state officer, department or agency which receives such a 17
notice may satisfy any debt owed to it by that person before it 18
honors the notice of the Department. 19
3. After receiving the demand to transmit, the person notified 20
by the demand may not transfer or otherwise dispose of the credits, 21
other personal property, or debts in his or her possession or under 22
his or her control at the time the person received the notice until the 23
Department consents to a transfer or other disposition. 24
4. Every person notified by a demand to transmit shall, within 25
10 days after receipt of the demand to transmit, inform the 26
Department of and transmit to the Department all such credits, other 27
personal property or debts in his or her possession, under his or her 28
control or owing by that person within the time and in the manner 29
requested by the Department. Except as otherwise provided in 30
subsection 5, no further notice is required to be served to that 31
person. 32
5. If the property of the delinquent taxpayer consists of a series 33
of payments owed to him or her, the person who owes or controls 34
the payments shall transmit the payments to the Department until 35
otherwise notified by the Department. If the debt of the delinquent 36
taxpayer is not paid within 1 year after the Department issued the 37
original demand to transmit, the Department shall issue another 38
demand to transmit to the person responsible for making the 39
payments informing him or her to continue to transmit payments to 40
the Department or that his or her duty to transmit the payments to 41
the Department has ceased. 42
6. If the notice of the delinquency seeks to prevent the transfer 43
or other disposition of a deposit in a bank or credit union or other 44
credits or personal property in the possession or under the control of 45
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a bank, credit union or other depository institution, the notice must 1
be delivered or mailed to any branch or office of the bank, credit 2
union or other depository institution at which the deposit is carried 3
or at which the credits or personal property is held. 4
7. If any person notified by the notice of the delinquency 5
makes any transfer or other disposition of the property or debts 6
required to be withheld or transmitted, to the extent of the value of 7
the property or the amount of the debts thus transferred or paid, that 8
person is liable to the State for any indebtedness due pursuant to this 9
chapter, chapter 360B, 362, 363A, 363B, 363C, 363D, 369, 370, 10
372, 372A, 372B, 374, 377, 377A, 377C, 377D or 444A of NRS, 11
NRS 482.313, 482C.230 or 482C.240, or chapter 585 or 680B of 12
NRS or sections 2 to 117, inclusive, of this act from the person with 13
respect to whose obligation the notice was given if solely by reason 14
of the transfer or other disposition the State is unable to recover the 15
indebtedness of the person with respect to whose obligation the 16
notice was given. 17
Sec. 123. Chapter 360B of NRS is hereby amended by adding 18
thereto a new section to read as follows: 19
“Specified digital products” has the meaning ascribed to it in 20
section 21 of this act. 21
Sec. 124. NRS 360B.030 is hereby amended to read as 22
follows: 23
360B.030 As used in this chapter, unless the context otherwise 24
requires, the words and terms defined in NRS 360B.040 to 25
360B.100, inclusive, and section 123 of this act have the meanings 26
ascribed to them in those sections. 27
Sec. 125. NRS 360B.063 is hereby amended to read as 28
follows: 29
360B.063 “Purchaser” means a person to whom a sale of 30
tangible personal property or specified digital products is made. 31
Sec. 126. NRS 360B.080 is hereby amended to read as 32
follows: 33
360B.080 “Seller” means any person making sales, leases or 34
rentals of tangible personal property [.] or specified digital 35
products. 36
Sec. 127. NRS 360B.320 is hereby amended to read as 37
follows: 38
360B.320 1. The Department shall provide public 39
notification to consumers of tangible personal property [,] or 40
specified digital products, including purchasers who are exempt 41
from any sales and use taxes, of the practices of this State relating to 42
the collection, use and retention of any personally identifiable 43
information. 44
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2. The Department shall not retain any personally identifiable 1
information if the information is no longer required to ensure the 2
validity of exemptions from sales and use taxes. 3
3. When any personally identifiable information that identifies 4
a natural person is retained by or on behalf of the State, that person 5
is entitled to reasonable access to that information to correct any 6
portion thereof which has been inaccurately recorded. 7
4. If any person or other entity, except a state which is a 8
member of the Agreement or any person or other entity who is 9
entitled to such information pursuant to any state law or the 10
Agreement, requests any personally identifiable information 11
maintained by the Department, the Department shall make a 12
reasonable and timely effort to notify any person who is identified 13
by the requested information. 14
5. The Attorney General shall enforce the provisions of this 15
section. 16
6. As used in this section, “personally identifiable information” 17
means information that identifies: 18
(a) A participant in the system created pursuant to the 19
Agreement; or 20
(b) A consumer of tangible personal property or specified 21
digital products who deals with a registered seller that elects to use 22
a certified service provider as its agent to perform all the functions 23
of the seller relating to sales and use taxes, other than the obligation 24
of the seller to remit the taxes on its own purchases. 25
Sec. 128. The provisions of subsection 1 of NRS 218D.380 do 26
not apply to any provision of this act which adds or revises a 27
requirement to submit a report to the Legislature. 28
Sec. 129. NRS 360B.483 is hereby repealed. 29
Sec. 130. 1. This section becomes effective upon passage 30
and approval. 31
2. Sections 1 to 129, inclusive, of this act become effective: 32
(a) Upon passage and approval for the purposes of adopting 33
regulations and taking such other actions as are necessary to carry 34
out the provisions of this act; and 35
(b) On January 1, 2026, for all other purposes. 36
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.
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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