SUMMARY--Clarifies provisions governing administration of sales and use taxes to ensure that retailers of large appliances collect sales tax on retail sales price. (BDR 32-1657)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to taxation; clarifying the provisions governing the administration of the sales and use taxes to ensure that all retailers of large appliances collect the sales tax on the retail sales price of the appliance; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 372 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In administering the provisions of this chapter, the department shall calculate the amount of tax imposed on the retail sale of large appliances as follows:
(a) If the large appliance is sold separately or with installation or replacement services, or any combination thereof, the sales tax must be applied to the retail sales price of the large appliance to the customer. The sales tax does not apply to charges for or associated with installation and replacement if those charges are stated separately on the sales receipt or in the contract of sale.
(b) If the large appliance is sold as a constituent part of a contract for the construction or refurbishment of an improvement to real property or a mobile home, the sales tax must be paid by the contractor on the sales price of the large appliance to the contractor.
2. As used in this section:
(a) "Contract for the construction or refurbishment of an improvement to real property" means a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home, including the remodeling, altering or repairing of an improvement to real property or a mobile home. The term does not include the sale, delivery, installation or replacement of one or more large appliances not included in a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home.
(b) "Large appliance" includes, without limitation, a washing machine, dryer, range, stove, oven, dishwasher, refrigerator, freezer, ice maker and hot water dispenser.
(c) "Replacement" means the removal of an old large appliance and the installation of a new large appliance.
Sec. 2 Chapter 374 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In administering the provisions of this chapter, the department shall calculate the amount of tax imposed on the retail sale of large appliances as follows:
(a) If the large appliance is sold separately or with installation or replacement services, or any combination thereof, the sales tax must be applied to the retail sales price of the large appliance to the customer. The sales tax does not apply to charges for or associated with installation and replacement if those charges are stated separately on the sales receipt or in the contract of sale.
(b) If the large appliance is sold as a constituent part of a contract for the construction or refurbishment of an improvement to real property or a mobile home, the sales tax must be paid by the contractor on the sales price of the large appliance to the contractor.
2. As used in this section:
(a) "Contract for the construction or refurbishment of an improvement to real property" means a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home, including the remodeling, altering or repairing of an improvement to real property or a mobile home. The term does not include the sale, delivery, installation or replacement of one or more large appliances not included in a contract for erecting, constructing or affixing a structure or other improvement to real property or a mobile home.
(b) "Large appliance" includes, without limitation, a washing machine, dryer, range, stove, oven, dishwasher, refrigerator, freezer, ice maker and hot water dispenser.
(c) "Replacement" means the removal of an old large appliance and the installation of a new large appliance.
Sec. 3. This act becomes effective upon passage and approval.