Assembly Bill No. 243–Assemblymen Dini, de Braga, Marvel, Carpenter, Neighbors, Goldwater and Hettrick

 

February 26, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Provides exemption from certain sales and use taxes for farm machinery and equipment. (BDR 32‑866)

 

FISCAL NOTE:            Effect on Local Government: Yes.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxation; providing an exemption from certain sales and use taxes for farm machinery and equipment; 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. Chapter 374 of NRS is hereby amended by adding thereto a

1-2  new section to read as follows:

1-3    There are exempted from the taxes imposed by this chapter the gross

1-4  receipts from the sale of, and the storage, use or other consumption in a

1-5  county of, farm machinery and equipment.

1-6    Sec. 2.  NRS 374.030 is hereby amended to read as follows:

1-7    374.030  1.  “Gross receipts” means the total amount of the sale or

1-8  lease or rental price, as the case may be, of the retail sales of retailers,

1-9  valued in money, whether received in money or otherwise, without any

1-10  deduction on account of any of the following:

1-11    (a) The cost of the property sold. However, in accordance with such

1-12  rules and regulations as the department may prescribe, a deduction may be

1-13  taken if the retailer has purchased property for some other purpose than

1-14  resale, has reimbursed his vendor for tax which the vendor is required to

1-15  pay to the county or has paid the use tax with respect to the property, and

1-16  has resold the property [prior to] before making any use of the property

1-17  other than retention, demonstration or display while holding it for sale in

1-18  the regular course of business. If such a deduction is taken by the retailer,

1-19  no refund or credit will be allowed to his vendor with respect to the sale of

1-20  the property.

2-1    (b) The cost of the materials used, labor or service cost, interest paid,

2-2  losses or any other expense.

2-3    (c) The cost of transportation of the property [prior to] before its sale to

2-4  the purchaser.

2-5    2.  The total amount of the sale or lease or rental price includes all of

2-6  the following:

2-7    (a) Any services that are a part of the sale.

2-8    (b) All receipts, cash, credits and property of any kind.

2-9    (c) Any amount for which credit is allowed by the seller to the

2-10  purchaser.

2-11    3.  “Gross receipts” does not include any of the following:

2-12    (a) Cash discounts allowed and taken on sales.

2-13    (b) [Sale] The sale price of property returned by customers when the

2-14  full sale price is refunded either in cash or credit , [;] but this exclusion

2-15  [shall] does not apply in any instance when the customer, in order to obtain

2-16  the refund, is required to purchase other property at a price greater than the

2-17  amount charged for the property that is returned.

2-18    (c) The price received for labor or services used in installing or applying

2-19  the property sold.

2-20    (d) The amount of any tax , [(]not including[, however,] any

2-21  manufacturers’ or importers’ excise tax , [)] imposed by the United States

2-22  upon or with respect to retail sales, whether imposed upon the retailer or

2-23  the consumer.

2-24    (e) The amount of any allowance against the selling price given by a

2-25  retailer for the value of[:

2-26      (1) A] a used vehicle which is taken in trade on the purchase of

2-27  another vehicle . [; or

2-28      (2) A used piece of farm machinery or equipment which is taken in

2-29  trade on the purchase of another piece of farm machinery or equipment.]

2-30    4.  For purposes of the sales tax, if the retailers establish to the

2-31  satisfaction of the department that the sales tax has been added to the total

2-32  amount of the sale price and has not been absorbed by them, the total

2-33  amount of the sale price shall be deemed to be the amount received

2-34  exclusive of the tax imposed.

2-35    Sec. 3.  NRS 374.265 is hereby amended to read as follows:

2-36    374.265  “Exempted from the taxes imposed by this chapter,” as used

2-37  in NRS 374.265 to 374.355, inclusive, and section 1 of this act means

2-38  exempted from the computation of the amount of taxes imposed.

2-39    Sec. 4.  This act becomes effective upon passage and approval for the

2-40  purpose of adopting any regulations necessary to carry out the provisions

2-41  of this act and on July 1, 2002, for all other purposes.

 

2-42  H