requires two-thirds majority vote (§ 22)                                                                                                               

                                                                                                  

 

Assembly Bill No. 514–Committee on Taxation

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Provides for enactment of certain provisions that are necessary to carry out Streamlined Sales and Use Tax Agreement. (BDR 32‑1292)

 

FISCAL NOTE:  Effect on Local Government: No.

                           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 in skeleton form for the enactment of certain provisions that are necessary to carry out the Streamlined Sales and Use Tax Agreement; providing for the electronic registration of sellers; establishing requirements for determining the place of sale; establishing requirements for claiming an exemption from sales and use taxes; providing for the electronic payment of 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. Chapter 360B of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  The Department shall post on a website or other Internet site

1-4  that is operated or administered by or on behalf of the

1-5  Department:

1-6  1.  The rates of sales and use taxes for the state and for each

1-7  local government that imposes such taxes. The Department shall

1-8  identify the state and each local government using the Federal

1-9  Information Processing Standards developed by the National

1-10  Institute of Standards and Technology.

1-11      2.  Any change in those rates.

2-1  3.  Any amendments to statutory provisions and administrative

2-2  regulations governing the registration of sellers and the collection

2-3  of sales and use taxes.

2-4  4.  Any change in the boundaries of local governments that

2-5  impose sales and use taxes.

2-6  Sec. 2.  Chapter 372 of NRS is hereby amended by adding

2-7  thereto the provisions set forth as sections 3 to 8, inclusive, of this

2-8  act.

2-9  Sec. 3.  1.  The Department shall establish and maintain a

2-10  central, electronic registration system that allows a seller to

2-11  register to collect and remit sales and use taxes pursuant to this

2-12  chapter and to register in other states that are members of the

2-13  Streamlined Sales and Use Tax Agreement.

2-14      2.  A seller who registers pursuant to this section agrees to

2-15  collect and remit sales and use taxes as required by this chapter.

2-16      3.  Registration using this system may not be used as a factor

2-17  to determine whether a seller has a nexus with this state for the

2-18  purposes of determining his liability to pay any other tax imposed

2-19  by the State.

2-20      Sec. 4.  For the purpose of administering the provisions of

2-21  this chapter, a retail sale shall be deemed to take place:

2-22      1.  At the place of business of the seller, whether in or outside

2-23  of this state, if the tangible personal property is received by the

2-24  purchaser at that place of business.

2-25      2.  At the location where the purchaser received the tangible

2-26  property purchased, if the property is not received by the

2-27  purchaser at a place of business of the seller.

2-28      3.  If subsection 1 or 2 does not apply, at the address of the

2-29  purchaser that is available from the business records of the seller

2-30  that are maintained in the ordinary course of the seller’s business,

2-31  if the use of this address does not constitute bad faith.

2-32      4.  If subsection 1, 2 or 3 does not apply, at the address of the

2-33  purchaser obtained during the consummation of the sale, if the

2-34  use of this address does not constitute bad faith.

2-35      5.  In all other circumstances, at the address from which the

2-36  tangible personal property was shipped or, if it was delivered

2-37  electronically, at the address from which it was first available for

2-38  transmission.

2-39      Sec. 5.  1.  Any person who purchases tangible personal

2-40  property that is subject to the taxes imposed by this chapter and

2-41  who has knowledge at the time of purchase that the purchased

2-42  property will be available for use digitally or electronically by a

2-43  person in another jurisdiction of this state or in another state shall

2-44  give written notice of that fact to the seller at the time of purchase.

3-1  2.  Upon receipt of such notice, the seller is relieved of any

3-2  liability to collect, pay or remit any taxes imposed by this chapter

3-3  from any person other than the purchaser, and the purchaser

3-4  thereafter assumes that liability.

3-5  Sec. 6.  1.  A person who purchases tangible personal

3-6  property by direct mail shall provide to the seller at the time he

3-7  submits his purchase order a statement of the jurisdictions in this

3-8  state or in another state to which the purchased property will be

3-9  delivered for use.

3-10      2.  Upon receipt of such notice, the seller shall collect the

3-11  taxes imposed by this chapter in accordance with the information

3-12  provided pursuant to subsection 1 and is relieved of any liability to

3-13  collect, pay or remit any taxes imposed by this chapter other than

3-14  in accordance with that information received.

3-15      3.  As used in this section, “direct mail” means printed

3-16  material delivered or distributed by the United States Postal

3-17  Service or another delivery service to a mass audience or to

3-18  addresses contained on a mailing list provided by a purchaser or

3-19  at the direction of a purchaser when the cost of the items

3-20  purchased are not billed directly or indirectly to the recipients.

3-21      Sec. 7.  In administering the provisions of this chapter, the

3-22  Department shall calculate the amount of tax imposed to the third

3-23  decimal place and round the tax due to a whole cent using a

3-24  method that rounds up to the next cent if the numeral in the third

3-25  decimal place is greater than 4.

3-26      Sec. 8.  1.  If a purchaser wishes to claim an exemption from

3-27  the taxes imposed by this chapter, the seller shall obtain such

3-28  identifying information from the purchaser as is required by the

3-29  Department.

3-30      2.  The Department shall, to the extent feasible, establish an

3-31  electronic system for submitting a request for an exemption. A

3-32  purchaser is not required to provide a signature to claim an

3-33  exemption if the request is submitted electronically.

3-34      3.  The Department may establish a system whereby a

3-35  purchaser who is exempt from the payment of the taxes imposed

3-36  by this chapter is issued an identification number that can be

3-37  presented to the seller at the time of sale.

3-38      4.  A seller shall maintain such records of exempt transactions

3-39  as are required by the Department.

3-40      Sec. 9.  NRS 372.125 is hereby amended to read as follows:

3-41      372.125  1.  Every person desiring to engage in or conduct

3-42  business as a seller within this state must register with the

3-43  Department pursuant to section 3 of this act or file with the

3-44  Department an application for a permit for each place of business.

3-45      2.  Every application for a permit must:

4-1  (a) Be made upon a form prescribed by the Department.

4-2  (b) Set forth the name under which the applicant transacts or

4-3  intends to transact business and the location of his place or places of

4-4  business.

4-5  (c) Set forth other information which the Department may

4-6  require.

4-7  3.  The application must be signed by [the] :

4-8  (a) The owner if he is a natural person; [in the case of an

4-9  association or partnership, by a]

4-10      (b) A member or partner[; in the case of a corporation, by an] if

4-11  the seller is an association or partnership; or

4-12      (c) An executive officer or some person specifically authorized

4-13  [by the corporation] to sign the application[, to which must be

4-14  attached the written evidence of his authority.] if the seller is a

4-15  corporation. Written evidence of the signer’s authority must be

4-16  attached to the application.

4-17       Sec. 10.  NRS 372.360 is hereby amended to read as follows:

4-18      372.360  1.  On or before the last day of the month following

4-19  each reporting period, a return for the preceding period must be filed

4-20  with the Department in such form as the Department may prescribe.

4-21  Any return required to be filed by this section must be combined

4-22  with any return required to be filed pursuant to the provisions of

4-23  chapter 374 of NRS.

4-24      2.  For purposes of the sales tax a return must be filed by each

4-25  seller. For purposes of the use tax a return must be filed by

4-26  each retailer maintaining a place of business in the state and by each

4-27  person purchasing tangible personal property, the storage, use or

4-28  other consumption of which is subject to the use tax, who has not

4-29  paid the use tax due to a retailer required to collect the tax.

4-30      3.  Returns must be signed by the person required to file the

4-31  return or by his authorized agent but need not be verified by oath.

4-32      Sec. 11.  NRS 372.375 is hereby amended to read as follows:

4-33      372.375  1.  The person required to file the return shall deliver

4-34  the return together with a remittance of the amount of the tax due to

4-35  the Department.

4-36      2.  The Department shall provide for the acceptance of credit

4-37  cards, debit cards or electronic transfers of money for the payment

4-38  of the tax due in the manner prescribed in NRS 353.1465.

4-39      Sec. 12.  Chapter 374 of NRS is hereby amended by adding

4-40  thereto the provisions set forth as sections 13 to 18, inclusive, of this

4-41  act.

4-42      Sec. 13.  1.  The Department shall establish and maintain a

4-43  central, electronic registration system that allows a seller to

4-44  register to collect and remit sales and use taxes pursuant to this

5-1  chapter and to register in other states that are members of the

5-2  Streamlined Sales and Use Tax Agreement.

5-3  2.  A seller who registers pursuant to this section agrees to

5-4  collect and remit sales and use taxes as required by this chapter.

5-5  3.  Registration using this system may not be used as a factor

5-6  to determine whether a seller has a nexus with this state for the

5-7  purposes of determining his liability to pay any other tax imposed

5-8  by the State.

5-9  Sec. 14.  For the purpose of administering the provisions of

5-10  this chapter, a retail sale shall be deemed to take place:

5-11      1.  At the place of business of the seller, whether in or outside

5-12  of this state, if the tangible personal property is received by the

5-13  purchaser at that place of business.

5-14      2.  At the location where the purchaser received the tangible

5-15  property purchased, if the property is not received by the

5-16  purchaser at a place of business of the seller.

5-17      3.  If subsection 1 or 2 does not apply, at the address of the

5-18  purchaser that is available from the business records of the seller

5-19  that are maintained in the ordinary course of the seller’s business,

5-20  if the use of this address does not constitute bad faith.

5-21      4.  If subsection 1, 2 or 3 does not apply, at the address of the

5-22  purchaser obtained during the consummation of the sale, if the

5-23  use of this address does not constitute bad faith.

5-24      5.  In all other circumstances, at the address from which the

5-25  tangible personal property was shipped or, if it was delivered

5-26  electronically, at the address from which it was first available for

5-27  transmission.

5-28      Sec. 15.  1.  Any person who purchases tangible personal

5-29  property that is subject to the taxes imposed by this chapter and

5-30  who has knowledge at the time of purchase that the purchased

5-31  property will be available for use digitally or electronically by a

5-32  person in another jurisdiction of this state or in another state shall

5-33  give written notice of that fact to the seller at the time of purchase.

5-34      2.  Upon receipt of such notice, the seller is relieved of any

5-35  liability to collect, pay or remit any taxes imposed by this chapter

5-36  from any person other than the purchaser, and the purchaser

5-37  thereafter assumes that liability.

5-38      Sec. 16.  1.  A person who purchases tangible personal

5-39  property by direct mail shall provide to the seller at the time he

5-40  submits his purchase order a statement of the jurisdictions in this

5-41  state or in another state to which the purchased property will be

5-42  delivered for use.

5-43      2.  Upon receipt of such notice, the seller shall collect the

5-44  taxes imposed by this chapter in accordance with the information

5-45  provided pursuant to subsection 1 and is relieved of any liability to

6-1  collect, pay or remit any taxes imposed by this chapter other than

6-2  in accordance with that information received.

6-3  3.  As used in this section, “direct mail” means printed

6-4  material delivered or distributed by the United States Postal

6-5  Service or another delivery service to a mass audience or to

6-6  addresses contained on a mailing list provided by a purchaser or

6-7  at the direction of a purchaser when the cost of the items

6-8  purchased are not billed directly or indirectly to the recipients.

6-9  Sec. 17.  In administering the provisions of this chapter, the

6-10  Department shall calculate the amount of tax imposed to the third

6-11  decimal place and round the tax due to a whole cent using a

6-12  method that rounds up to the next cent if the numeral in the third

6-13  decimal place is greater than 4.

6-14      Sec. 18.  1.  If a purchaser wishes to claim an exemption

6-15  from the taxes imposed by this chapter, the seller shall obtain such

6-16  identifying information from the purchaser as is required by the

6-17  Department.

6-18      2.  The Department shall, to the extent feasible, establish an

6-19  electronic system for submitting a request for an exemption. A

6-20  purchaser is not required to provide a signature to claim an

6-21  exemption if the request is submitted electronically.

6-22      3.  The Department may establish a system whereby a

6-23  purchaser who is exempt from the payment of the taxes imposed

6-24  by this chapter is issued an identification number that can be

6-25  presented to the seller at the time of sale.

6-26      4.  A seller shall maintain such records of exempt transactions

6-27  as are required by the Department.

6-28      Sec. 19.  NRS 374.130 is hereby amended to read as follows:

6-29      374.130  1.  Every person desiring to engage in or conduct

6-30  business as a seller within a county shall register with the

6-31  Department pursuant to section 13 of this act or file with the

6-32  Department an application for a permit for each place of business,

6-33  unless he intends to sell vehicles and will make fewer than three

6-34  retail sales of vehicles during any 12-month period.

6-35      2.  Every application for a permit must:

6-36      (a) Be made upon a form prescribed by the Department.

6-37      (b) Set forth the name under which the applicant transacts or

6-38  intends to transact business and the location of his place or places of

6-39  business.

6-40      (c) Set forth such other information as the Department may

6-41  require.

6-42      3.  The application must be signed by [the] :

6-43      (a) The owner if he is a natural person; [in the case of an

6-44  association or partnership, by a]

7-1  (b) A member or partner[; in the case of a corporation, by an] if

7-2  the seller is an association or partnership; or

7-3  (c) An executive officer or some person specifically authorized

7-4  [by the corporation] to sign the application[, to which must be

7-5  attached the written evidence of his authority.] if the seller is a

7-6  corporation. Written evidence of the signer’s authority must be

7-7  attached to the application.

7-8  Sec. 20.  NRS 374.365 is hereby amended to read as follows:

7-9  374.365  1.  On or before the last day of the month following

7-10  each reporting period, a return for the preceding period must be filed

7-11  with the Department in such form as the Department may prescribe.

7-12  Any return required to be filed by this section must be combined

7-13  with any return required to be filed pursuant to the provisions of

7-14  chapter 372 of NRS.

7-15      2.  For purposes of the sales tax a return must be filed by every

7-16  seller. For purposes of the use tax a return must be filed by

7-17  every retailer maintaining a place of business in the county and by

7-18  every person purchasing tangible personal property, the storage, use

7-19  or other consumption of which is subject to the use tax, who has not

7-20  paid the use tax due to a retailer required to collect the tax.

7-21      3.  Returns must be signed by the person required to file the

7-22  return or by his authorized agent but need not be verified by oath.

7-23      Sec. 21.  NRS 374.380 is hereby amended to read as follows:

7-24      374.380  1.  The person required to file the return shall deliver

7-25  the return together with a remittance of the amount of the tax due to

7-26  the Department.

7-27      2.  The Department shall provide for the acceptance of credit

7-28  cards, debit cards or electronic transfers of money for the payment

7-29  of the tax due in the manner prescribed in NRS 353.1465.

7-30      Sec. 22.  1.  This section and sections 1 to 5, inclusive, 7 to

7-31  15, inclusive, and 17 to 21, inclusive of this act become effective on

7-32  January 1, 2006, only if this state has become a member of the

7-33  Streamlined Sales and Use Tax Agreement on or before that date.

7-34      2.  Sections 6 and 16 of this act become effective on the

7-35  effective date of the First Act of Congress that allows a state to

7-36  impose and collect sales and use taxes on sales transacted through

7-37  the Internet or other similar electronic technology.

 

7-38  H