Nev. Rev. Stat. § 372.397 — Deferral of payment of tax on certain sales of eligible property

NRS  372.397    Deferral of payment of tax on certain sales of eligible
property.
1.  A person may apply to the Office of
Economic Development for a deferment of the payment of the tax on the sale of
eligible property for a sales price of $1,000,000 or more for use by the person
in a business in this State. If a purchase is made outside of the State from a
retailer who is not registered with the Department, an application for a
deferment must be made in advance or, if the purchase has been made, within 60
days after the date on which the tax is due. If a purchase is made in this
State from a retailer who is registered with the Department and to whom the tax
is paid, an application must be made within 60 days after the payment of the
tax. If the application for a deferment is approved, the taxpayer is eligible
for a refund of the tax paid.
2.  The Office of Economic Development
shall certify the person’s eligibility for a deferment pursuant to this section
if:
(a) The person meets the eligibility requirements
set forth in NRS 360.750 for a partial
abatement of the taxes imposed on the person pursuant to chapter 374 of NRS;
(b) The purchase is consistent with the State
Plan for Economic Development developed by the Executive Director of the Office
pursuant to subsection 2 of NRS 231.053 ;
and
(c) The Office determines that:
(1) The deferment is a significant factor
in the decision of the person to locate or expand a business in this State; and
(2) The eligible property will be retained
at the location of the person’s business in this State until at least the date
which is 5 years after the date on which the Office certifies the person’s
eligibility for the deferment.
Ê Upon
certification, the Office shall immediately forward the deferment to the Nevada
Tax Commission.
3.  Upon receipt of such a certification,
the Nevada Tax Commission shall verify the sale, the price paid, the date of
the sale and the applicable period for payment of the deferred tax. It may
require security for the payment in an amount which does not exceed the amount
of tax deferred.
4.  If the Office of Economic Development
certifies a person’s eligibility for a deferment pursuant to this section:
(a) Payment of the total amount of tax due on the
sale of the eligible property must be deferred without interest for the
60-month period beginning on the date the Office makes that certification; and
(b) Payment of the tax must be made in each
month, beginning not later than the date which is 1 year after the date on
which the Office makes that certification, at a rate which is at least
sufficient to result in payment of the total obligation within the period
described in paragraph (a).
5.  The Nevada Tax Commission shall adopt
regulations governing:
(a) The aggregation of related purchases which
are made to expand a business, establish a new business, or renovate or replace
eligible property; and
(b) The period within which such purchases may be
aggregated.
6.  As used in this section, “eligible
property” does not include any of the following capital assets:
(a) Buildings or the structural components of
buildings;
(b) Equipment used by a public utility;
(c) Equipment used for medical treatment;
(d) Machinery or equipment used in mining; or
(e) Machinery or equipment used in gaming.

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