NAC372.910. Sales tax collection agreement: Authority of Department; contents.

     1. The Department may enter into a sales tax collection agreement with a direct sales organization.

     2. A sales tax collection agreement must provide that:

     (a) Before a direct sales organization may report and remit taxes due for the sales made by independent salespersons of tangible personal property obtained from the direct sales organization, the direct sales organization will obtain a permit to engage in or conduct business as a seller pursuant to NRS 372.125.

     (b) Tangible personal property sold to an independent salesperson for personal use is taxed based on:

          (1) The actual sales price paid by the independent salesperson; or

          (2) If the direct sales organization does not have evidence that the tangible personal property was purchased for personal use by the independent salesperson, the sales price determined pursuant to paragraph (c).

     (c) Tangible personal property obtained from a direct sales organization and sold by an independent salesperson at retail is taxed based on:

          (1) The actual sales price paid by the retail customer; or

          (2) If the direct sales organization does not have evidence as to the actual sales price paid by the retail customer, the suggested retail price.

     (d) The tax due on the sale of tangible personal property is computed at:

          (1) The tax rate in effect at the location of the sale to the retail customer; or

          (2) If the direct sales organization does not have evidence as to the actual location of the sale to the retail customer, the tax rate in effect at the location to which the tangible personal property is shipped or delivered.

     (e) The direct sales organization is entitled to the same deductions, allowances and collection credits to which an independent salesperson would be entitled if the sales tax collection agreement were not in effect.

     (f) The direct sales organization will make available to the Department, upon request, such books and records as may be reasonably required by the Department to conduct an audit of the direct sales organization.

     3. The Department shall not regard a sales tax collection agreement as a factor in determining whether or not the direct sales organization has a nexus with this State for the purpose of imposing any tax or tax collection obligation except for the sales or use tax collected by the direct sales organization pursuant to the sales tax collection agreement.

     (Added to NAC by Tax Comm’n by R021-05, eff. 10-31-2005)