NAC372.924. Election by lessor to pay tax on use of tangible personal property rather than cost of acquisition.

     1. If a lessor of tangible personal property elects to pay the tax on the use of that property as measured by the amount of the rental charged for the property rather than the cost of the acquisition of that property pursuant to NRS 372.170 or 372.240, the lessor shall notify the Department of that election on a form prepared by the Department. The lessor shall file a copy of the form with his or her records and make the copy available to the Department for inspection upon request.

     2. A lessor who notifies the Department of his or her election pursuant to subsection 1 may choose to apply the election:

     (a) Separately to the item of tangible personal property that the lessor identifies on the form and submit the form within 10 days after acquiring that item; or

     (b) To all the tangible personal property he or she acquires within the next ensuing year and submit the form on an annual basis.

     3. A lessor who applies the election to separate items of tangible personal property pursuant to paragraph (a) of subsection 2 may include more than one item of tangible personal property on the form if the form is submitted within 10 days after the earliest date of acquisition of an item of tangible personal property that is identified on the form.

     4. The failure of a lessor to notify the Department of his or her election pursuant to this section creates a rebuttable presumption that the lessor did not elect to pay the tax on the use of the tangible personal property rather than the cost of the acquisition of that property pursuant to NRS 372.170 or 372.240. The rebuttable presumption may be overcome if the lessor presents evidence that he or she intended to pay the tax on the use of the tangible personal property rather than the cost of the acquisition of that property pursuant to NRS 372.170 or 372.240.

     (Added to NAC by Tax Comm’n by R058-02, eff. 1-17-2003)—(Substituted in revision for NAC 372.088)