Senate Bill No. 314–Senator Raggio

 

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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:

 

    Section 1. 1.  The Department of Taxation shall collect

primary and supplementary data concerning electronic commerce

that is conducted in this state.

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

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

engaged in electronic commerce.

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

electronic commercial transactions.

    (c) An estimate of the number of electronic commercial

transactions conducted in this state by retailers operating within this

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

scientific sampling.

    (d) An estimate of the number of electronic commercial

transactions conducted outside the State by retailers operating

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

standards of scientific sampling.

    (e) An estimate of the total value of electronic commercial

transactions conducted by retailers operating within this state.

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

not collected because electronic commercial transactions are

conducted outside the State.

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

are engaged in electronic commerce.

    3.  The supplementary data collected must include, without

limitation, information concerning electronic commerce that is

available from the Bureau of the Census of the United States

Department of Commerce, the Small Business Administration and

any other federal agency or affiliated state data center that collects

such information.

    4.  To comply with the requirements of this section, the

Department of Taxation may collect information that is available

from a private or academic organization if the name of the

organization and the methods of research used by that organization

are clearly stated within the text of the report required to be

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

in the report as an authoritative source a study conducted by a

private or academic organization that is speculative or based on

unscientific methods of research.

    5.  The Department of Taxation shall prepare a written report

that contains a compilation of the data required to be collected

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

financial impact more stringent requirements for the collection of

the sales and use taxes on electronic commerce would have on

retailers in this state who are engaged in electronic commerce. The

report must be submitted to the Director of the Legislative Counsel

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

Session of the Legislature.

    6.  As used in this section:

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

by a retailer on an Internet or network site.

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

NRS 205.4744.

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

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

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

by limitation on June 30, 2005.

 

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