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

exemption

may

result

its

revocation by the

occurred despite the exercise of ordinary care and

Department.

without intent. Hardship is not included in the

NRS 360.419 criteria. In determining whether to waive or

Pursuant to NRS 372.348(2), this exemption is only valid

reduce the penalty or interest, the Department shall

for 5 years. There must be an issue date and an

consider any evidence that shows the late payment was

expiration date on the exemption letter. Purchases of

caused by circumstances that were not directly related

tangible personal property subject to sales tax made

to the actions of the taxpayer or his agent, including,

prior to the issue date or after the expiration date on the

without limitation:

exemption letter are subject to sales tax. If you have any

questions as to the validity of an exemption letter, please

1) Fire, earthquake, flood or other acts of God, theft, or

contact the Carson City office of the Department of

the death or serious illness of the taxpayer or his

Taxation.

agent or a member of the immediate family of the

taxpayer;

DISCOUNT COUPONS

2) An error or the misconduct of an employee of the

taxpayer;

Many businesses offer their own coupons involving

3) Erroneous written information provided to the

reductions in the price of meals and beverages as an

taxpayer or his agent by the Department; and

inducement to trade at their place of business.

4) The misaddressed but timely mailing of the return or

Examples are “$2.00 off a lunch buffet,” “buy-one-get-

payment.

one-free” or “two-for-one.” The Department has received

a number of complaints from customers who were

In the case of a late filed return, pursuant to

charged sales tax on the full retail price of the items for

NAC 360.396, the tax must also be paid within 120 days

which they had a discount coupon. If a retailer provides

of the due date.

its own non-reimbursable coupon to a customer, the

coupon must be treated as a “cash discount.” In other

A person seeking waiver or reduction of penalty and

words, sales tax must only be calculated on the net

interest must file a statement with the Department,

sales price charged the customer (NRS 372.025(3)(a)

signed under oath, setting forth the facts upon which

and 372.065(3)(a)).

he bases his claim. The statement must include the

signature of the taxpayer declaring, “Under penalties of

EXAMPLES:

perjury, I declare, to the best of my knowledge and

belief, these statements to be true, correct, and

complete.” This is a requirement of NRS 360.419, and

Get $2.00 off an $8.00 lunch buffet—the tax is due

any requests for waiver or reduction of penalty and

on the actual cash selling price of $6.00.

interest will be returned to the taxpayer if this statement

Buy one dinner entrée for $15.00, get one entrée

and signature is not included. The Department is in the

free—tax is due on the actual cash-selling price of

process of creating a standard form that may be used by

$15.00.

taxpayers, and it will be posted to the Department

Buy two buffets for the price of one at $10.00—tax is

website in January 2007.

due on the actual cash selling price of the one

buffet, $10.00.

ADVERTISEMENT OF ASSUMPTION OR

ABSORPTION OF TAX BY RETAILER

Since these coupons are treated as discounts rather

It is unlawful for any retailer to advertise or hold out or

than “complimentary,” the value of coupons redeemed

state to the public or to any customer, directly or

should not be included in tax calculations by the seller.

indirectly, that the sales tax or any part thereof will be

assumed or absorbed by the retailer or that it will not be

If a retailer receives a manufacturer’s coupon for which

added to the selling price of the property sold or that if

he is reimbursed, it is considered part of gross receipts

added, it or any part thereof will be refunded.

and is subject to sales tax.

(NRS 372.115)

RELIGIOUS, CHARITABLE AND EDUCATIONAL

VETERINARIANS AND VETERINARY SUPPLIES

ORGANIZATIONS EXEMPT

FROM SALES AND USE TAX

Veterinarians are the consumers of tangible personal

property they use in the treatment of animals and are

Religious, charitable and educational organizations that

required to pay sales tax on the purchase price of the

are granted exemption from sales and use taxes for

property to their Nevada registered vendors. Prescription

purchases or sales can only use their exemption in an

drugs prescribed by a veterinarian for treatment of an

official capacity. Exemption status cannot be transferred

animal are not exempt from sales or use tax. If the

to individual organization members nor to anyone else

veterinarian also sells such items as dog foods,

for their personal use. Misuse of an organization’s

medicines, vitamins, or other pet supplies, he must

Nevada Tax Form Notes Page 3

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