Nev. Admin. Code § 372.704 — 372.704

NAC 372.704    Application of exemption to property sold, shipped pursuant to
sales contract or delivered outside State; application of tax to property sold
or delivered to purchaser within State. ( NRS
360.090 , 372.335 , 372.725 )
1.  The sales tax applies to every retail
sale of tangible personal property in this State unless the sale is exempt from
taxation pursuant to a statutory exemption or taxation of the sale is
prohibited by the United States Constitution. A retail sale in this State is
not exempt from taxation for the reason that the sale follows a movement of the
property into this State or the sale precedes the removal of the property sold
from this State. If title to the property sold passes to the purchaser at a point
outside this State, or if for any other reason the sale occurs outside this
State, the sales tax does not apply, regardless of the extent of the retailer’s
participation in this State in relation to the transaction. The retailer has
the burden of proving facts establishing the right to an exemption.
2.  Except as otherwise provided in
subsection 4, sales tax applies when the property sold is delivered to the
purchaser or the purchaser’s representative in this State, whether or not the
disclosed or undisclosed intention of the purchaser is to transport the
property to a point outside this State, and whether or not the property is
actually so transported. When the property is delivered to the purchaser in
this State, it is immaterial that the:
(a) Contract of sale called for the shipment by the
retailer of the property to a point outside this State.
(b) Property was made to specifications for
out-of-state jobs.
(c) Prices quoted included transportation charges
to out-of-state points.
(d) Goods are delivered to the purchaser in this
State via a route a portion of which is outside this State.
3.  Regardless of the documentary evidence
held by the retailer to show delivery of the property was made to a carrier for
shipment to a point outside the State, the tax will apply if the property is
diverted in transit to the purchaser or his or her representative in this
State, or for any other reason the property is not delivered outside this
State.
4.  Sales tax does not apply when the
property pursuant to the contract of sale is required to be shipped and is
shipped to a point outside this State by the retailer, by means of:
(a) Facilities operated by the retailer; or
(b) Delivery by the retailer to a carrier, customs
broker or forwarding agent, whether hired by the purchaser or not, for shipment
to the out-of-state point.
5.  As used in subsection 4, the term:
(a) “Carrier” means a person or firm regularly
engaged in the business of transporting for compensation tangible personal
property owned by other persons, and includes both common and contract
carriers, and the United States Mail.
(b) “Forwarding agent” means a person or firm
regularly engaged in the business of preparing property for shipment or
arranging for its shipment.
6.  A person or firm not otherwise so engaged
does not become a “carrier” or “forwarding agent” within the meaning of this
section solely by being designated by a purchaser to receive and ship goods to
a point outside this State.
7.  When property is delivered to a point
outside this State to a purchaser known by the retailer to be a resident of
this State or to have a business in this State, the retailer must obtain a
written statement from the purchaser or the purchaser’s authorized
representative that the property is not being purchased for storage, use or
other consumption in this State. The sale is subject to the sales tax if the
retailer does not obtain such a statement or provide other satisfactory
evidence to the Department establishing that the property was not purchased for
storage, use or other consumption in this State.
(Added to NAC by Tax Comm’n by R081-97, eff. 11-14-97)