Assembly Bill No. 389–Assemblywoman Cegavske

March 4, 1999

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Referred to Committee on Taxation

 

SUMMARY—Makes allowance against selling price given by retailer for used construction machinery or equipment not subject to local sales and use taxes. (BDR 32-1408)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to taxation; making the allowance against the selling price given by a retailer for used construction machinery or equipment not subject to the local sales and use taxes; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 374.030 is hereby amended to read as follows:

1-2 374.030 1. "Gross receipts" means the total amount of the sale or

1-3 lease or rental price, as the case may be, of the retail sales of retailers,

1-4 valued in money, whether received in money or otherwise, without any

1-5 deduction on account of any of the following:

1-6 (a) The cost of the property sold. However, in accordance with such

1-7 rules and regulations as the department may prescribe, a deduction may be

1-8 taken if the retailer has purchased property for some other purpose than

1-9 resale, has reimbursed his vendor for tax which the vendor is required to

1-10 pay to the county or has paid the use tax with respect to the property, and

1-11 has resold the property prior to making any use of the property other than

1-12 retention, demonstration or display while holding it for sale in the regular

1-13 course of business. If such a deduction is taken by the retailer, no refund or

1-14 credit will be allowed to his vendor with respect to the sale of the property.

1-15 (b) The cost of the materials used, labor or service cost, interest paid,

1-16 losses or any other expense.

1-17 (c) The cost of transportation of the property prior to its sale to the

1-18 purchaser.

2-1 2. The total amount of the sale or lease or rental price includes all of

2-2 the following:

2-3 (a) Any services that are a part of the sale.

2-4 (b) All receipts, cash, credits and property of any kind.

2-5 (c) Any amount for which credit is allowed by the seller to the

2-6 purchaser.

2-7 3. "Gross receipts" does not include any of the following:

2-8 (a) Cash discounts allowed and taken on sales.

2-9 (b) Sale price of property returned by customers when the full sale price

2-10 is refunded either in cash or credit; but this exclusion shall not apply in any

2-11 instance when the customer, in order to obtain the refund, is required to

2-12 purchase other property at a price greater than the amount charged for the

2-13 property that is returned.

2-14 (c) The price received for labor or services used in installing or

2-15 applying the property sold.

2-16 (d) The amount of any tax , [(] not including, however, any

2-17 manufacturers’ or importers’ excise tax , [)] imposed by the United States

2-18 upon or with respect to retail sales, whether imposed upon the retailer or

2-19 the consumer.

2-20 (e) The amount of any allowance against the selling price given by a

2-21 retailer for the value of:

2-22 (1) A used vehicle which is taken in trade on the purchase of another

2-23 vehicle; or

2-24 (2) A used piece of farm or construction machinery or equipment

2-25 which is taken in trade on the purchase of another piece of farm or

2-26 construction machinery or equipment.

2-27 4. For purposes of the sales tax, if the retailers establish to the

2-28 satisfaction of the department that the sales tax has been added to the total

2-29 amount of the sale price and has not been absorbed by them, the total

2-30 amount of the sale price shall be deemed to be the amount received

2-31 exclusive of the tax imposed.

2-32 Sec. 2. This act becomes effective on July 1, 1999.

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