Senate Bill No. 314–Senator Raggio

 

March 17, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Requires Department of Taxation to collect and report data concerning electronic commerce that is conducted in this state. (BDR 32‑36)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

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

 

AN ACT relating to taxation; requiring the Department of Taxation to collect data concerning electronic commerce that is conducted in this state; requiring the Department to prepare annual reports of the data collected for submission to the Legislature; 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 360 of NRS is hereby amended by adding

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

1-3  1.  The Department shall collect primary and supplementary

1-4  data concerning electronic commerce that is conducted in this

1-5  state.

1-6  2.  The primary data collected must include, without

1-7  limitation:

1-8  (a) The number of retailers domiciled in this state who are

1-9  engaged in electronic commerce.

1-10      (b) The annual gross retail sales of such retailers that are

1-11  derived from electronic commercial transactions.

1-12      (c) An estimate of the number of electronic commercial

1-13  transactions conducted in this state by retailers operating within

1-14  this state. The estimate must be based on generally accepted

1-15  standards of scientific sampling.

2-1  (d) An estimate of the number of electronic commercial

2-2  transactions conducted outside the State by retailers operating

2-3  within this state. The estimate must be based on generally accepted

2-4  standards of scientific sampling.

2-5  (e) An estimate of the total value of electronic commercial

2-6  transactions conducted by retailers operating within this state.

2-7  (f) An estimate of revenues from the sales and use taxes that

2-8  are not collected because electronic commercial transactions are

2-9  conducted outside the State.

2-10      (g) An estimate of all revenue paid to the State by retailers who

2-11  are engaged in electronic commerce.

2-12      3.  The supplementary data collected must include, without

2-13  limitation, information concerning electronic commerce that is

2-14  available from the Bureau of the Census of the United States

2-15  Department of Commerce, the Small Business Administration and

2-16  any other federal agency or affiliated state data center that collects

2-17  such information.

2-18      4.  To comply with the requirements of this section, the

2-19  Department may collect information that is available from a

2-20  private or academic organization if the name of the organization

2-21  and the methods of research used by that organization are clearly

2-22  stated within the text of the report required to be prepared by

2-23  subsection 5. The Department shall not use in such a report as an

2-24  authoritative source a study conducted by a private or academic

2-25  organization that is speculative or based on unscientific methods

2-26  of research.

2-27      5.  The Department shall prepare annually a written report

2-28  that contains a compilation of the data required to be collected

2-29  pursuant to this section for the immediately preceding calendar

2-30  year. The report must include an analysis of the financial impact

2-31  more stringent requirements for the collection of the sales and use

2-32  taxes on electronic commerce would have on retailers in this state

2-33  who are engaged in electronic commerce.

2-34      6.  The Department shall submit the report required by

2-35  subsection 5 to the:

2-36      (a) Legislature on or before February 1 of each odd-numbered

2-37  year.

2-38      (b) Legislative Commission on or before February 1 of each

2-39  even-numbered year.

2-40      7.  As used in this section:

2-41      (a) “Electronic commerce” means the sale of personal

2-42  property by a retailer on an Internet or network site.

2-43      (b) “Internet or network site” has the meaning ascribed to it in

2-44  NRS 205.4744.

3-1  (c) “Sales tax” has the meaning ascribed to it in

3-2  NRS 360B.070.

3-3  (d) “Use tax” has the meaning ascribed to it in NRS 360B.100.

3-4  Sec. 2.  This act becomes effective on July 1, 2003.

 

3-5  H