NAC372.260. Hospitals.

     1. A hospital which is maintained and operated by an organization which is exempt pursuant to section 50 of chapter 397, Statutes of Nevada 1955, (NRS 372.325), is:

     (a) Not required to collect the sales tax on:

          (1) Tangible personal property furnished to inpatients in connection with the rendition of hospital services.

          (2) Meals served to staff members and personnel.

     (b) The retailer of tangible personal property sold:

          (1) To outpatients.

          (2) Through any pharmacy which it operates for any purpose other than the rendition of hospital services.

     2. All other hospitals, including nonprofit and private hospitals, shall pay either the sales tax on purchases of tangible personal property or the use tax on storing, using or consuming tangible personal property in Nevada, in accordance with the nature of the transaction. These hospitals must collect the sales tax on tangible personal property which they furnish to inpatients in connection with the rendition of hospital services. The tax will be measured:

     (a) By the charge for the property if it is separately stated; or

     (b) If the property and the hospital or medical services are not separately stated, by the cost to the hospital at the time of the acquisition of the property which was used for or transferred to the inpatient.

     3. Cafes, restaurants, gift shops, and similar facilities which are operated by any type of hospital, are the retailers of the tangible personal property which they sell. The hospital, concessionaire, or other owner of the facility must report the sales, collect the sales tax from the patrons, and pay the sales tax to the State. This type of transaction is not considered to be within the scope of the primary function of a charitable hospital.

     [Tax Comm’n, Combined Sales and Use Tax Ruling No. 62, eff. 3-1-68]