NAC372.946. Purchase, sale and lease back of tangible personal property.

     1. If tangible personal property is sold to an initial purchaser who then sells the property to a person who is in the business of leasing tangible personal property to others, that second purchaser then leases the property back to the initial purchaser within 180 days after the date of the initial sale of the property to the initial purchaser or within such a longer period as may be authorized by the Department, and these transactions are properly documented pursuant to subsection 2:

     (a) That initial sale of the property to the initial purchaser constitutes a sale for the purpose of resale;

     (b) That subsequent sale of the property to the second purchaser constitutes a sale for the purpose of resale;

     (c) That lease of the property back to the initial purchaser constitutes a retail sale; and

     (d) If the initial purchaser paid any sales or use tax on that initial sale of the property to that initial purchaser, that initial purchaser is entitled to a refund of the amount of the tax paid to this State.

     2. To document properly the transactions described in subsection 1, the documentation must establish that:

     (a) The initial purchaser:

          (1) Gave a resale certificate to the vendor at the time of the initial sale and did not report and remit the applicable tax directly to the Department; or

          (2) Paid the applicable tax to the vendor at the time of the initial sale or, if the vendor was located outside of this State and was not required to be registered in Nevada, reported and remitted the applicable tax directly to the Department;

     (b) The initial purchaser sold the property to a second purchaser who is in the business of leasing tangible personal property and accepted the second purchaser’s resale certificate; and

     (c) The second purchaser leased the property back to the initial purchaser within 180 days after the date of the initial sale of the property to the initial purchaser or within such a longer period as may be authorized by the Department.

     (Added to NAC by Tax Comm’n by R105-09, eff. 11-25-2009)