NAC372.735. Establishment of exemption; improper claim of exemption.

     1. To establish that the gross receipts from a sale of tangible personal property or the sales price of such property is not subject to the sales or use tax, a seller may:

     (a) Not later than 90 days after the date of the pertinent sale, obtain from the purchaser:

          (1) A copy of the appropriate letter of exemption issued by the Department;

          (2) A fully completed certificate of exemption; or

          (3) The information required to complete fully a certificate of exemption; or

     (b) Not later than 120 days after receiving a request for substantiation from the Department:

          (1) Obtain from the purchaser a fully completed certificate of exemption; or

          (2) Prove by other means that the transaction was not subject to the tax.

     2. A certificate of exemption need not be provided in a paper format. If provided in a paper format, the document must be signed by the purchaser.

     3. A separate certificate of exemption need not be obtained for each sale. The Commission will recognize blanket certificates of exemption if given in advance to cover all orders except those orders which specify otherwise.

     4. A fully completed certificate of exemption or the information required to complete fully a certificate of exemption must be maintained by the seller and provided to the Department upon request.

     5. If a purchaser improperly claims an exemption:

     (a) The purchaser is liable for the payment of the applicable tax; and

     (b) A seller who complies with the provisions of this section is not liable for the payment of the applicable tax unless:

          (1) The purchaser fails to pay the tax; and

          (2) The seller fraudulently failed to collect the tax or solicited the purchaser to participate in an unlawful claim of an exemption.

     6. For the purposes of this section, “certificate of exemption” means any form for a certificate of exemption which the Department has determined:

     (a) Satisfies the requirements of the Streamlined Sales and Use Tax Agreement; and

     (b) Is suitable for this State.

Ê The term does not include a certificate claiming an exemption on the basis that the property is purchased for resale.

     (Added to NRS by Tax Comm’n by R106-09, eff. 11-25-2009)