Nev. Admin. Code § 372.942 — 372.942

NAC 372.942    Termination of lease. ( NRS
360.090 , 360B.110 , 372.385 ,
372.725 )    For the
purposes of NAC 372.938 :
1.  A retailer may discontinue charging sales
tax on the basis of gross lease charges when a lease agreement is terminated.
Periodic billing statements for amounts which are past due at the time the
agreement is terminated may continue after termination for collection purposes.
2.  Evidence that a lease agreement has been
terminated includes:
(a) Documentation showing that the leased property
has been repossessed or returned to the lessor.
(b) A formal notice of termination that has been
personally served upon the lessee or served upon the lessee by certified mail,
return receipt requested, or registered mail.
(c) Proof that the property has been wrecked,
damaged, stolen or otherwise rendered unusable.
(d) A new agreement to lease the same property to
the same or another lessee.
(e) Any other evidence or documentation which is
acceptable to the Department and shows that a lease agreement has been
terminated.
Ê Such evidence
must be maintained pursuant to NRS
372.735 .
3.  Any payments, penalties or other charges
or fees collected by a retailer upon termination of a lease and return of the
property as a result of a breach of contract or a mutually agreed-upon early
termination of the contract, if separately stated on the applicable invoices,
contracts or other documents, are not subject to taxation as gross lease
charges. Any portion of those payments, penalties, fees or other charges which
represents sales or use taxes must be reported and remitted to the Department.
(Added to NAC by Tax Comm’n by R105-09, eff. 11-25-2009)