NAC372.930. Sale and lease back of tangible personal property.

     1. The sale of tangible personal property to a person who is in the business of leasing tangible personal property to others and who leases the property back to the seller within 90 days after the date on which the property was sold is not a taxable sale if the lessor is registered with the Department to collect and report the tax pursuant to NAC 372.922 and 372.926.

     2. A person who paid the sales or use tax on a sale of tangible personal property that meets the requirements of subsection 1 may apply to the Department for a refund in the amount of the tax paid if the transaction is properly documented.

     3. To document properly such a transaction, the documentation must establish that:

     (a) The purchaser gave a resale certificate to the vendor at the time of sale, unless the vendor was out of state and was not required to be registered in Nevada.

     (b) The purchaser sold the property to a second purchaser who is in the business of leasing tangible personal property and accepted the second purchaser’s resale certificate.

     (c) The second purchaser leased the property back to the first purchaser within 90 days after the date on which the property was sold to the second purchaser.

     (d) The lessor was registered with the Department to collect and report the tax pursuant to NAC 372.922 and 372.926 at the time of the transaction.

     (Added to NAC by Tax Comm’n, eff. 9-13-91)—(Substituted in revision for NAC 372.085)