NAC370.230. Refund of precollected state tax: Procedure; rate.

     1. As used in this section, unless the context otherwise requires:

     (a) “Department” means the Department of Taxation of the State of Nevada.

     (b) “Governing body” means the governmental entity that has the authority to make decisions for a tribe, commonly known as a tribal government.

     (c) “Month” means a calendar month.

     (d) “Reservation” means an Indian reservation, Indian colony or lands set aside for the use and occupancy of a tribe.

     (e) “Retail dealer” means any person, other than a wholesale dealer or a smokeshop owned by a tribe, who is located on a reservation and who offers to sell or who is engaged in selling cigarettes, other tobacco products or both of them at retail on the reservation.

     (f) “Tribe” means any Indian tribe, Indian band, Indian colony or group of Indians recognized by the Federal Government as possessing a government-to-government relationship with the United States.

     2. Upon application being made by a governing body which meets the requirements of this section, the Department shall refund to the governing body the tobacco taxes collected by the State on sales of tobacco to retail dealers in accordance with NRS 370.280 and 370.503.

     3. A refund made pursuant to this section must be made at the tax rate less any discounts allowed for a tobacco wholesaler or importer.

     4. Except as otherwise provided in subsection 6, only the governing body may apply for refunds of taxes on sales of cigarettes or other tobacco products to retail dealers. Each application for a refund must be made for all sales which occurred during not less than 1 month. The application must include:

     (a) The amount of tobacco purchased by retail dealers during the month or months for which the refund is requested;

     (b) The name and location of the wholesaler or importer from whom the tobacco was purchased; and

     (c) The county or counties where the retail dealers are located, and the quantity of tobacco purchased by retail dealers located in each county.

     5. The governing body shall maintain, and provide to the Department upon request, documentation substantiating all refunds requested. The documentation must include:

     (a) Identification of the purchasers of tobacco as retail dealers, by name and address;

     (b) For each transaction for which a refund is requested, the:

          (1) Name and address of the retail dealer;

          (2) Price paid;

          (3) Quantity purchased; and

          (4) Date of sale; and

     (c) Such other information as the Department determines is reasonably necessary to document that a purchase qualifies for a refund pursuant to this section.

     6. If a governing body fails to maintain the records required by this section, files a fraudulent refund request or refuses to transmit to the Department information required pursuant to this section, the Department may alter the refund procedure authorized by this section and, in lieu thereof, make direct refunds to a retail dealer who:

     (a) Is located on the reservation;

     (b) Purchases tobacco;

     (c) Pays the applicable tax imposed on the tobacco by the tribe; and

     (d) Complies with the requirements of this section that are applicable to governing bodies.

     (Added to NAC by Tax Comm’n, eff. 5-27-92)