Nevada Administrative Code
Chapter 372 - Sales and Use Taxes
APPLICATION OF TAX
Section 372.045 - Bundled transactions
Universal Citation: NV Admin Code 372.045
Current through September 16, 2024
1. Except as otherwise provided by specific statute or regulation, the sales tax or use tax, as applicable, applies to the total amount of consideration received by a seller in connection with a bundled transaction.
2. For the purposes of this section:
(a) Except as otherwise provided in paragraph
(b), "bundled transaction" means the retail sale of two or more products,
except real property and services to real property, where the products are:
(1) Otherwise distinct and identifiable;
and
(2) Sold for one nonitemized
price.
(b) "Bundled
transaction" does not include:
(1) The sale of
any products in which the sales price varies, or is negotiable, based on the
selection by the purchaser of the products included in the
transaction.
(2) The retail sale of
tangible personal property and a service where the tangible personal property
is essential to the use of the service and is provided exclusively in
connection with the service, and the true object of the transaction is the
service.
(3) A transaction that
includes taxable products and nontaxable products and regarding which the
purchase price or sales price of the taxable products is de minimis. For the
purposes of this subparagraph:
(I) "De
minimis" means that the seller's purchase price or sales price of the taxable
products is 10 percent or less of the total purchase price or sales price of
the bundled products.
(II) Sellers
must use either the purchase price or the sales price of the products to
determine if the taxable products are de minimis. Sellers may not use a
combination of the purchase price and sales price of the products to determine
if the taxable products are de minimis.
(III) Sellers must use the full term of a
service contract to determine if the taxable products are de minimis.
(4) The retail sale of exempt
tangible personal property and taxable tangible personal property, where:
(I) The transaction includes food, drugs,
durable medical equipment, mobility enhancing equipment, prosthetic devices or
medical supplies; and
(II) The
seller's purchase price or sales price of the taxable tangible personal
property is 50 percent or less of the total purchase price or sales price of
the bundled tangible personal property. Sellers may not use a combination of
the purchase price and sales price of the tangible personal property for the
purpose of making this 50-percent determination for a transaction.
(c) "Distinct and
identifiable" products do not include any:
(1)
Packaging items, such as containers, boxes, sacks, bags and bottles, or other
materials, such as wrapping, labels, tags and instruction guides, that
accompany the retail sale of the products and are incidental or immaterial to
the retail sale thereof. Examples of packaging items that are incidental or
immaterial to the retail sale of the products include grocery sacks, shoeboxes,
dry cleaning garment bags, and express delivery envelopes and boxes.
(2) Products provided free of charge with the
required purchase of another product. For the purposes of this subparagraph, a
product is "provided free of charge" if the sales price of the product
purchased does not vary depending on the inclusion of the product "provided
free of charge."
(3) Items included
in the sales price.
(d)
"One nonitemized price" does not include a price that is separately identified
by product on binding sales or other supporting sales-related documentation
made available to the customer in paper or electronic form, including, but not
limited to, an invoice, bill of sale, receipt, contract, service agreement,
lease agreement, periodic notice of rates and services, rate card or price
list.
(e) "Sales price" applies to
the measure subject to sales tax.
Added to NAC by Tax Comm'n by R021-08, eff. 4-17-2008
NRS 360.090, 360B.110, 372.725
Disclaimer: These regulations may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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