NAC372.090. Merchandise returned by customers.

     1. For the purposes of the deduction from gross receipts of the sales price of merchandise which was returned by customers, “full sale price” includes the portion of the price which was designated as sales tax.

     2. When a charge for restocking or handling is deducted from the refund of the sales price to the customer for merchandise which was returned, the full sale price shall be deemed to have been refunded or credited to the customer if the charge represents, as closely as can reasonably be determined, the actual expense to the retailer of retaking the property and replacing it on the shelves or other place from which it was removed for delivery to the customer.

     3. The charge may not include compensation for increased overhead costs because of the return, for refinishing or restoring the property to saleable condition where the necessity therefor was occasioned by customer usage, or for any expense which was incurred before the sale, such as the cost of transferring the title or possession under a conditional sale contract.

     [Tax Comm’n, Combined Sales and Use Tax Ruling part No. 37, eff. 3-1-68]