What it does
The legislature's own summary of the bill, or its official long title.
Existing law imposes upon each retailer a sales tax measured by the gross receipts of the retailer from the retail sale of tangible personal property in this State, and requires the retailer to collect the sales tax from the purchaser in a transaction to which the sales tax applies. (NRS 372.105, 372.110, 374.110, 374.111, 374.115) Existing law also imposes a use tax on the storage, use or other consumption in this…
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Existing law imposes upon each retailer a sales tax measured by the gross receipts of the retailer from the retail sale of tangible personal property in this State, and requires the retailer to collect the sales tax from the purchaser in a transaction to which the sales tax applies. (NRS 372.105, 372.110, 374.110, 374.111, 374.115) Existing law also imposes a use tax on the storage, use or other consumption in this State of tangible personal property purchased outside of this State from a retailer in a transaction that would have been subject to the sales tax in this State if it had occurred within this State. (NRS 372.185, 374.190, 374.191) Existing law exempts from such taxes the gross receipts from the sale of any tangible personal property sold by or to a nonprofit organization created for religious, charitable or educational purposes. (NRS 372.326, 374.3306) Under existing law, among other requirements, an organization that claims this exemption is required to establish that the sole or primary purpose of the organization is to further certain specified purposes deemed to be religious, charitable or educational. (NRS 372.3261, 374.3306) Sections 1 and 2 of this bill establish criteria for the Department of Taxation and the Nevada Tax Commission to use to determine whether an organization satisfies the requirements to be exempt from sales and use taxes as a charitable organization, including, without limitation, by the organization establishing that it: (1) operates exclusively for a purpose exempt under section 501(c)(3) of the Internal Revenue Code and is recognized as exempt by the Internal Revenue Service under the provision of that section; or (2) furthers at least one of certain specified purposes. Sections 1.5 and 2.3 of this bill require the Department to: (1) provide to an organization that does not qualify for the exemption as a religious, charitable or educational organization a full explanation outlining the reasons why the organization does not qualify and the procedure to appeal such a determination; and (2) submit to the Legislature every odd-numbered year a report concerning applications for the tax exemption.