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STATE OF NEVADA DEPARTMENT OF TAXATION
STATE OF NEVADADEPARTMENT OF TAXATION
AutomotiveIndustry
LAWS GOVERNING AUTO INDUSTRY
Two of the main chapters of the Nevada Revised Statutes and Nevada Administrative Code discussed today are:
• Chapter 372: Sales and Use Taxes
• Chapter 482: Motor Vehicles and Trailers: Licensing, Registration, Sales and Leases
Also referenced will be chapter 374, Local School Support Tax
Automobile Industry
The Department of Taxation administers the sales/use tax laws and regulations while the
Department of Motor Vehicles (DMV) administers laws and
regulations governing the licensing, selling, titling and other related issues involving vehicles which are required to belicensed to drive on a public highway(NRS 482.135)
Automobile Industry
The Department of Taxation looks to some of the definitions contained in NRS Chapter 482 for guidance in making determinations of taxability.
Automobile IndustrySome useful sources of information can be found at:DMV main website: http://www.dmvnv.com/index.htm
DMV Registration/Title Guide: http://www.dmvnv.com/pdfforms/regtitle.pdf
Department of Taxation: http://www.tax.state.nv.us
Statutes and Nevada Administrative Code at http://www.leg.state.nv.us/law1.cfm
Automobile Industry
Laws affecting automobile industry
• Trade Ins
• Trade down
• Dealer Special Plates – they are gone
Automobile Industry - Sales
• NRS 372.025, “Gross Receipts” is a primary statute describing what is included in gross receipts and what is not included:
• Included
All receipts, cash, property
Manufacturer’s discounts, or rebates
Mandatory warranties
Services that are part of the sale
Automobile Industry - Sales
• NRS 372.025, “Gross Receipts” - what is not included:
Dealer issued discounts
Luxury Tax imposed by the U.S.Government
Drive-away permit costs
Optional Warranties
Automobile Industry-Sales
•Sales to Military: Generally taxable
• Sales to Students: Generally taxable
• Sales to Native Americans: Generally taxable
• Sales to Snowbirds: Sometimes taxable
•Sales to Active Nevada National Guard members: Generally exempt
Automobile Industry – Taxable Sales
•Tire Sales
•Smog fees
•Doc(ument) fees
•Parts Sales
•Repairs
•Shop Supplies
Automobile Industry-Sales
Giveaway cars in casino promotions
Transaction between dealership & casino
= Nevada sale
Casino posts contest rules-winner pays tax
= Winner paying Casino tax burden
= Nevada sale
Automobile Industry - Sales
Trade-Ins are reportable at full county tax rate (Clark County = 8.1% as of 7/1/2009)
Trade-Downs (Trade-in allowance reportable limited to amount of new vehicle purchase) (Example: New vehicle purchase: $15,000
Trade-down amount: $20,000. Trade-in allowed on sales/use tax return = $15,000)
NEVADA DEPT OF TAXATION
VEHICLE/VESSEL TRADE-IN/TRADE-DOWN SUPPLEMENTAL REPORTING FORM
Permit No.:
Mail Original with your Sales/Use Tax Return
Due on or before
FOR DEPARTMENT USE ONLY
TRADE IN
For month ending
RATE COUNTY TRADE IN VALUE
1. County Rate 6.5% Calc Tax @ 4.5%
2. County Rate 6.75% Calc Tax @ 4.75%
3. County Rate 7% Calc Tax @ 5%
4. County Rate 7.125% Calc Tax @ 5.125%
5. County Rate 7.25% Calc Tax @ 5.25%
6. County Rate 7.375% Calc Tax @ 5.375%
7. County Rate 7.5% Calc Tax @ 5.5%
Sub Total
Less .5% Collection Allowance
(A) Total Allowance Subtract (A) from Line 25 of your regular Sales/Use Tax Return
TRADE DOWN (use when vehicle/vessel sold is worth less than vehicle/vessel taken in trade)
1. Selling Price of New Vehicle/Vessel
2. Selling Price of New Vehicle/Vessel
3. Selling Price of New Vehicle/Vessel
Sub Total
Tax @ 2%
Less .5% Collection Allowance
(B) Total Allowance
Add (B) to Line 25 of your regular Sales/Use Tax Return
SIGNATURE PHONE NUMBER
PRINT NAME FEDERAL ID OR SOCIAL SECURITY NUMBER
TITLE DATE
NOTE: This form is no longer needed for a VEHICLE trade-in; however, trade-in of a vessel will require use of this form.
Trade-ins of vessels do not get the full tax credit; in using this form to record a vessel trade-in, use the full county tax rate less 2%. (Example: Clark County full tax rate as of 7/1/2009 is 8.1%. Vessels trade-in tax rate is 6.1%)
Trade-In Transaction
• Current reporting requirements
…………..as of 1/1/2007
Trade-In Transaction:
Car sale……………………………………………….$20,000 report in Column A of sales tax return
Trade-in……………………………………………….$10,000 report in Column B of sales tax return
Trade-Down Transactions
• Reporting requirements
………………..as of 1/1/2007
Trade-DownTransaction:
Car sale……………………………………………….$20,000 report in Column A of sales tax return
Trade-in……………………………………………….$25,000 report only $20,000 in Column B of sales tax return
Automobile Industry - Sales
• Unwinds – Not Taxable
• Repossessions – Taxable
• Lemon Law returns - Taxable
Automobile Industry-Leases
• Leases
True lease: NAC 372.070(1)(2)
Capitalized Cost Reduction
First Payment
Other advance
payments all taxable
Automobile Industry-Exempt Sales
Exempt Sales to: – State of Nevada– U. S. Government– Government fees (title fees, luxury tax)– Religious or charitable organizations– Resale– Out of State– Active members of the Nevada National
Guard & Family
NEVADA DEPARTMENT OF TAXATION
AFFIDAVIT OF PURCHASER
(EXECUTE WITH SPECIAL DRIVE AWAY PERMIT)
THIS FORM IS NOT VALID UNLESS ALL INFORMATION IS OBTAINED
I/We,
certify that I/we purchased on
the following vehicle vessel from
(Check type)
I/We further certify that I/we are not residents of Nevada and the described vehicle/vessel is not for storage, use or consumption in the State of Nevada, except for its transportation from this State within the 15 days provided for in the Special Drive-Away permit issued at the time of sale.
Signature of Purchaser
Signature of Purchaser
Name of Purchaser
Name of Purchaser
Address of Purchaser
Address of Purchaser
Drivers License Number State
Drivers License Number State
Social Security Number Social Security Number
On , , identified to be the person(s) Date Purchaser(s)
named above appeared before me and affirmed, under penalty of perjury, that the above statements are true.
THIS FORM IS NOT VALID UNLESS ALL INFORMATION IS OBTAINED
(Dealers Representative Must Also Sign Form)
Year:
Make:
Model:
VIN/HULL#:
Notary Public Signature
County State (Notary Seal)
Dealership Representative Title Date (Authorized Signature)
**This form is for use only by non-residents of the State of Nevada. If you are a member of the armed services stationed in the State of Nevada or you are a student attending a Nevada school, the affidavit does not apply since the vehicle/vessel will be used in the State of Nevada. Attn retailers: Failure to verify non-residency may result in assessment of tax, penalty and interest.**
NEVADA DEPT OF TAXATION
OUT-OF-STATE DELIVERY OF MOTOR VEHICLE AFFIDAVIT I hereby certify, under penalty of perjury under the laws of the state of Nevada, that I delivered the following vehicle/vessel:
Year Make Model Serial Number
to at Name of Purchaser Out Of State Location - City & State
on on behalf of Date Name of Selling Dealer
Signed: Signature of Person Making Delivery Date
Relationship to Dealership (e.g., salesman, employee, partner, or owner)
I hereby certify that I took delivery of the following vehicle/vessel:
Year Make Model Serial Number
on at Date Out Of State Location - City & State
from for Person Making Delivery of Vehicle Name of Employer/Dealer
I further certify that I have do not have a residence in Nevada where I permanently reside and that this vehicle was purchased for use outside the State of Nevada at
Street Address City St Zip Code
Signed: Signature of Purchaser Date
Driver’s License No.: Issuing State:
Subscribed and sworn before me on this day of , 20
in and for the County of
State of
Notary Public
(Must be in State of delivery)
My Commission Expires
(seal)
Nevada residents are not allowed Drive-away permits
• Beware of Drive-away permits to these states
• Oregon
• Montana
• Delaware
• Alaska
• New Hampshire
Automobile Industry – Use Tax
• Giveaway items
• Self-use items purchased ex-tax
• Internet ex-tax purchases for self use
• Vehicles placed in service for
use by dealership
• Parts for company vehicles
RECORDS TO BE KEPT
• Purchase invoices• Sales journals• General ledgers• Deal files• Affidavits and Drive–away permits
Must keep records for four (4) years
Electronic Filing Requirements• Effective July 1, 2008…..
All payments of money for taxes, interest, penalties or other obligations in the aggregate amount to $10,000 or more MUST be made by electronic transfer….*
For more information and to register and pay your taxes, go to:
http://www.nevadatax.nv.gov/web
*SB 517, 2007 Legislative Session
Written Response
Most tax issues can be addressed by the Department of Taxation. Please be advised that any responses to inquires made to the Department are only binding if put in writing, such as Nevada Revised Statutes, Administrative Code, Nevada Tax Notes, or in written correspondence.
