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 and compile certain information concerning electronic commerce and prepare and submit a report of the compilation to the 73rd Session of 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. 1.  The Department of Taxation shall collect

1-2  primary and supplementary data concerning electronic commerce

1-3  that is conducted in this state.

1-4  2.  The primary data collected must include, without limitation:

1-5  (a) The number of retailers domiciled in this state who are

1-6  engaged in electronic commerce.

1-7  (b) The gross retail sales of such retailers that are derived from

1-8  electronic commercial transactions.

1-9  (c) An estimate of the number of electronic commercial

1-10  transactions conducted in this state by retailers operating within this

1-11  state. The estimate must be based on generally accepted standards of

1-12  scientific sampling.

1-13      (d) An estimate of the number of electronic commercial

1-14  transactions conducted outside the State by retailers operating

1-15  within this state. The estimate must be based on generally accepted

1-16  standards of scientific sampling.

2-1  (e) An estimate of the total value of electronic commercial

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

2-3  (f) An estimate of revenues from the sales and use taxes that are

2-4  not collected because electronic commercial transactions are

2-5  conducted outside the State.

2-6  (g) An estimate of all revenue paid to the State by retailers who

2-7  are engaged in electronic commerce.

2-8  3.  The supplementary data collected must include, without

2-9  limitation, information concerning electronic commerce that is

2-10  available from the Bureau of the Census of the United States

2-11  Department of Commerce, the Small Business Administration and

2-12  any other federal agency or affiliated state data center that collects

2-13  such information.

2-14      4.  To comply with the requirements of this section, the

2-15  Department of Taxation may collect information that is available

2-16  from a private or academic organization if the name of the

2-17  organization and the methods of research used by that organization

2-18  are clearly stated within the text of the report required to be

2-19  prepared by subsection 5. The Department of Taxation shall not use

2-20  in the report as an authoritative source a study conducted by a

2-21  private or academic organization that is speculative or based on

2-22  unscientific methods of research.

2-23      5.  The Department of Taxation shall prepare a written report

2-24  that contains a compilation of the data required to be collected

2-25  pursuant to this section. The report must include an analysis of the

2-26  financial impact more stringent requirements for the collection of

2-27  the sales and use taxes on electronic commerce would have on

2-28  retailers in this state who are engaged in electronic commerce. The

2-29  report must be submitted to the Director of the Legislative Counsel

2-30  Bureau on or before February 1, 2005, for transmittal to the 73rd

2-31  Session of the Legislature.

2-32      6.  As used in this section:

2-33      (a) “Electronic commerce” means the sale of personal property

2-34  by a retailer on an Internet or network site.

2-35      (b) “Internet or network site” has the meaning ascribed to it in

2-36  NRS 205.4744.

2-37      (c) “Sales tax” has the meaning ascribed to it in NRS 360B.070.

2-38      (d) “Use tax” has the meaning ascribed to it in NRS 360B.100.

2-39      Sec. 2.  This act becomes effective on July 1, 2003, and expires

2-40  by limitation on June 30, 2005.

 

2-41  H