Nevada Tax Form Notes (Page 3 of 4) in pdf

purchased for resale, or a detailed description of the kind

recoup that collection allowance amount plus any

of property to be purchased for resale.

applicable penalties and/or interest.

SCOPE OF LIQUOR LICENSES

It is good practice to periodically update your business’s

HELD BY SUPPLIERS, IMPORTERS,

resale certificate files. The Department recommends

WHOLESALERS AND RETAILERS

every two to three years per NRS 372.160. Sellers are

required to have a properly completed resale certificate

Nevada Revised Statutes Chapter 369 regulates the

on file for each purchaser who purchases product

distribution and sale of liquor within the borders of

without payment of the tax, and with the intent to resell

Nevada by use of a three-tier system. The system is

the product. If you have questions, please contact the

structured as follows:

Department’s nearest district office.

•

A SUPPLIER of alcohol into the State of Nevada

CONFUSION REGARDING

is required to hold a current Nevada Certificate

of Compliance with the Department of Taxation

TAXPAYER IDENTIFICATION NUMBERS (TID)

in order to ship alcoholic beverages into this

AND

State.

FEDERAL IDENTIFICATION NUMBERS (FID)

•

An IMPORTER of liquor holds a privileged

license permitting him to purchase liquor from a

valid Certificate of Compliance holder. The

The Department has become aware that there is

license entitles the importer to be the first in

confusion regarding the Department of Taxation’s

possession of such liquors at the specified place

10-digit Taxpayer Identification Number (TID) and the

listed on the license. An importer may also hold

9-digit Federal Identification Number (FID), issued by the

a wholesaler’s license.

U.S. Federal Government.

•

The WHOLESALER’S privilege license permits

the holder to sell liquor to other wholesalers,

The 10-digit TID is issued by the Department to

retailers, and instrumentalities of the Armed

accounts registered with it and is unique to the

forces.

Department of Taxation. Its sole use is by the

•

A RETAILER of liquor holds a license that

Department of Taxation; its use is not shared with any

permits the holder to purchase liquor only from a

other city, county, State, or federal entity. The TID is not

licensed importer/wholesaler (NRS 369.487). A

a replacement or substitution for a Federal Identification

retailer may only sell liquor to the final

Number.

consumer. A retailer may not sell liquor for

resale.

RENT AND LEASE PAYMENTS

A list of current suppliers and importer/wholesalers can

ON TANGIBLE PERSONAL PROPERTY

be viewed on the Department’s internet website at

MUST BE REPORTED IN COLUMN F

When an election is made to charge tax on the lease or

Be advised, warehouse clubs such as Costco and Sam’s

rental stream of payments rather than the purchase price

Club are not licensed liquor wholesale dealers.

of an item being rented or leased out, the tax is

considered a Use Tax rather than a Sales Tax (NAC

Transportation of Alcohol

372.080). The tax is on the lessor’s use or consumption

of the property regardless of whether the property is

•

Alcohol product may only be imported and

originally

purchased

in-state

out-of-state.

The

delivered into Nevada via common carrier,

subsequent rental of the property is not a “sale,” and any

contract carrier, or a special permit carrier.

reimbursement of tax by the lessee to the lessor is

strictly a contractual matter between the two parties.

•

A retailer is required to obtain a special permit

Therefore, the lessor is not entitled to a collection

from the Department to transfer liquor in its

allowance because they collect no tax. Rather, the

original package. Pursuant to NRS 369.4865,

lessor self-accrues and remits the tax on its own behalf.

this permit is restricted to the transfer of liquor to

Consequently, the 0.5% collection allowance provided

an affiliated store when not violating any

for in NRS 372.370 is not applicable and will not be

franchise agreements.

allowed on this tax. Since the lessor incurs no “cost of

collecting the tax,” lease and rental payments must be

Retailers of alcohol are advised to consult with the city or

reported in Column F of the revised Sales and Use Tax

County in which their business physically resides for

return. If, during an audit of periods starting after

additional licensing requirements.

July 31, 2006, lease or rental payments are found to have

received the 0.5% collection allowance due to their

Pursuant to NRS 369.420, any shipment of liquor that

placement in Column A, an adjustment will be made to

does not follow the three-tier system (Supplier to

Nevada Tax Form Notes Page 3

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