Nev. Admin. Code § 372.155 — 372.155

NAC 372.155    Broadcasters. ( NRS
360.090 , 372.725 , 372.734 )
1.  As used in this section, the term
“broadcaster” means a radio or television broadcasting station primarily
engaged in, and deriving income from, the business of facilitating speech via
over-the-air communications, both as to pure speech and commercial speech.
2.  The gross receipts of a broadcaster from
the furnishing of broadcasting services are not subject to the sales tax,
including, without limitation, the gross receipts from the sale of airtime and
any charge for transmission of the signal.
3.  Purchases of tangible personal property
by broadcasters are subject to the sales tax if such property is consumed by
the station and is not resold in the normal course of business. As an example
of the application of this subsection, the purchase of a transmitter by a
broadcaster is subject to the sales tax.
4.  When a broadcaster engages in production
services, including the development of commercially suitable audiotapes and
videotapes intended for broadcasting purposes only, the gross receipts from the
sale of the tapes to the client are not subject to the sales tax. The
broadcaster is the consumer, not the retailer, of any tangible personal
property which is used incidentally in rendering the service therefore the
sales tax applies to the purchase of the property by the broadcaster. As an
example of the application of this subsection, if a television station is
engaged by a client to create an advertisement for a client and the television
station:
(a) Purchases paint and other materials necessary
to construct a set upon which the advertisement will be filmed;
(b) Purchases raw videotape footage onto which to
dub the advertisement for the client;
(c) Engages in activities such as writing copy,
preparing animation, taking photographs and putting music to the piece to
complete the advertisement; and
(d) Prepares videotapes of the advertisement which
will be distributed to various other television stations for broadcasting,
Ê the gross
receipts from the sale of the finished videotapes are not subject to the sales
tax but the sales tax on the purchase of the paint, videotape and other
materials necessary for the production of the videotape must be paid by the
station at the time of purchase by the station.
5.  If a broadcaster engages in the business
of duplicating audiotapes or videotapes beyond the first rendering which are
not intended for broadcasting purposes only, the gross receipts from the copies
are subject to the sales tax, except that, if a part of the charge for the
copies is for services and that portion of the charge is separately stated on
the invoice, the portion of the charge that is attributable to services is not
subject to the sales tax. As an example of the application of this subsection,
if a television station produces an advertisement for a client promoting his or
her law practice and the client orders three commercially suitable videotapes
of the advertisement intended for broadcast purposes only and 10 copies of the
videotape to mail to family and friends, the gross receipts from the three
videotapes for use in broadcasting only are not subject to the sales tax but
the gross receipts from the 10 copies not for use in broadcasting are subject
to the sales tax.
6.  The sales tax does not apply to any
charges for supervision, consultation, research, postage, express, telephone
and telegraph messages, transportation and travel expenses, or talent fees, if
the charge is stated separately on the invoice or is part of a charge for other
services.
(Added to NAC by Tax Comm’n, eff. 11-12-93)