Purchases of tangible personal property that will be used digitally or electronically in multiple jurisdictions. [Effective January 1, 2006.]
1. A purchaser who:
(a) Has not obtained a direct pay permit pursuant to NRS 360B.260;
(b) Purchases tangible personal property that is subject to sales and use taxes; and
(c) Has knowledge at the time of purchase that the purchased property will be available for use digitally or electronically in more than one jurisdiction,
Ê shall give written notice of that fact to the seller at the time of purchase. The notice must be given in a form required by the Department.
2. Notwithstanding the provisions of NRS 360B.350 to 360B.375, inclusive:
(a) Upon receipt of such a notice by a seller who does not maintain a place of business in this state, the seller is relieved of any liability to collect, pay or remit any use tax that is due and the purchaser thereafter assumes the liability to pay that tax directly to the appropriate authority.
(b) To determine the tax due to this state or to a local government of this state:
(1) A purchaser who delivers a notice pursuant to subsection 1 to a seller who does not maintain a place of business in this state; and
(2) A seller who maintains a place of business in this state and receives a notice pursuant to subsection 1,
Ê may use any reasonable, consistent and uniform method to apportion the use of the property among the various jurisdictions in which it will be used that is supported by the business records of the purchaser or seller as they exist at the time of the consummation of the sale.
3. Any notice given pursuant to subsection 1 applies to all future sales of property made by the seller to the purchaser, except for the sale of property that is specifically apportioned pursuant to subsection 2 or to property that will not be used in multiple jurisdictions, until the purchaser delivers a written notice of revocation to the seller.
Last modified: February 27, 2006