Nev. Admin. Code § 372.539 — 372.539

NAC 372.539    Method for determining actual cash value of motor vehicle;
retention of books and records substantiating actual cash value. ( NRS 360.090 , 372.368 ,
372.725 ,
372.735 ,
374.373 ,
374.725 ,
374.740 )
1.  For the purposes of NRS 372.368 and 374.373 and NAC 372.536 , the actual cash value of a
motor vehicle that has been repossessed by a retailer is the wholesale price
published in a price guide recognized in the retailer’s industry for a motor
vehicle of the same make, model and year which is in the same condition as the
actual condition of the motor vehicle at the time the motor vehicle was
repossessed.
2.  The cost to repossess or improve the
condition of a motor vehicle which has been repossessed may not be deducted
from the actual cash value of the motor vehicle.
3.  A retailer who claims a bad debt
deduction for a motor vehicle that has been repossessed by the retailer shall
retain, in the dealer jacket for the motor vehicle and with the books and
records of the retailer, documentation substantiating the actual cash value of
the motor vehicle at the time it was repossessed, including, without limitation:
(a) A copy of the published wholesale price which
was used to determine the actual cash value of the motor vehicle pursuant to
subsection 2.
(b) If the retailer receives a check from an
insurer for the partial loss of the motor vehicle, a copy of that check.
(c) If the motor vehicle is sold at auction or to a
salvage yard, proof of payment from that sale.
(d) If the actual cash value of the motor vehicle
was determined pursuant to subsection 1, documentation demonstrating the
condition of the motor vehicle at the time of repossession which may include,
without limitation:
(1) Pictures documenting the condition of the
motor vehicle at the time of repossession; or
(2) Inspection documents prepared by the
retailer of the motor vehicle substantiating the condition of the motor vehicle
at the time of repossession.
4.  If a motor vehicle that was repossessed
by a retailer is sold by the retailer, the retailer must collect and remit
sales tax on the sales price of the motor vehicle from the new sale.
5.  If a retailer receives full payment from
an insurance company on a debt for a motor vehicle that has been involved in an
accident, the retailer may not claim a bad debt deduction for the sale of the
motor vehicle.
(Added to NAC by Tax Comm’n by R191-18, eff. 12-19-2018)
EXEMPTIONS