Sections 24 and 33 of this bill impose a tax on a retail sale in this State of specified digital products electronically transferred to a person and on the use of specified digital products electronically transferred to a person in a transaction in this State for which the tax was not collected at the time of sale. Section 23 of this bill establishes requirements for determining the place where a sale of specified digital products takes place for the purpose of the tax. Under sections 24 and 33, the rate of the tax is the same as the sales and use tax rate imposed in the county in which the sale of the specified digital products takes place, as determined pursuant to section 23. Under section 100 of this bill, the requirement to impose, collect and remit the tax is imposed on a retailer who does not maintain a place of business in this State if, in the immediately preceding calendar year or the current calendar year, the retailer had more than $100,000 of gross revenue from certain transactions that took place in this State or 200 or more such transactions that took place in this State. Sections 2-22, 25-32, 34-99 and 101-127 of this bill provide for the administration, collection and enforcement of the tax in the same manner as the sales and use tax. Section 94 requires a person who directly or indirectly facilitates retail sales of specified digital products to collect and remit the tax if, in the immediately preceding calendar year or the current calendar year, the facilitator had more than $100,000 of gross receipts from certain transactions made to customers in this State or made or facilitated 200 or more transactions, on its own behalf or on behalf of a seller, unless the facilitator enters into an agreement with a seller whereby the seller agrees to assume responsibility for the collection and imposition of the tax. Section 95 provides that such a facilitator is not liable for the payment of the tax under certain circumstances. Section 96 requires certain persons who receive a fee in exchange for listing or advertising a product for a seller but do not collect money or other consideration from a customer to impose, collect and remit the tax if 200 or more retail sales to customers in this State result from referrals made by the person or the cumulative gross receipts of sales resulting from such referrals exceed $100,000, unless the person complies with certain notice requirements and makes a monthly report to the Department of Taxation. Existing law creates the Account to Stabilize the Operation of State Government, also known as the Rainy Day Fund, and authorizes the Director of the Office of Finance in the Office of the Governor to request a transfer of money from the Account to the State General Fund if: (1) the total actual revenue of the State falls short by 5 percent or more of the total anticipated revenue for the biennium in which the transfer will be made, as determined by the Legislature or the Interim Finance Committee; or (2) the Legislature or Interim Finance Committee and the Governor declare that a fiscal emergency exists. The Legislature may also allocate money from the Account directly. (NRS 353.288) Section 157.3 of this bill prohibits the issuance of transferable tax credits or the application of transferable tax credits to state or local taxes during any fiscal year in which a transfer or allocation is made from the Account by the Interim Finance Committee or during a fiscal emergency by the Legislature. Section 157.3 limits this prohibition to transferable tax credits authorized by state legislation that is enacted on or after the effective date of section 157.3. Existing law requires the Governor, on or before July 1 of each even-numbered year, to impanel an Economic Forum consisting of economic and financial experts appointed by the Governor to provide an estimate of the revenue that will be collected by the State for general, unrestricted uses during the subsequent biennium and make such projections for economic indicators as the Economic Forum deems necessary to ensure that this estimate is accurate. (NRS 353.226, 353.228) Section 157.7 of this bill provides that, if the Economic Forum forecasts that such revenue in the subsequent biennium will be less than in the then-current biennium and that the reduction in revenue exceeds 7 percent, it is the intent of the Legislature to review any transferable tax credits which the State is authorized to issue and consider if the amount of such credits should be reduced. Section 160 of this bill establishes January 1, 2026, as the effective date of the provisions of this bill.

Statutes affected:
As Introduced: 360.261, 360.2937, 360.300, 360.417, 360.510, 360B.030, 360B.063, 360B.080, 360B.320, 363C.200, 363C.300, 363C.310, 363C.320, 363C.330, 363C.340, 363C.350, 363C.360, 363C.370, 363C.380, 363C.390, 363C.400, 363C.410, 363C.420, 363C.430, 363C.440, 363C.450, 363C.460, 363C.470, 363C.480, 363C.490, 363C.500, 363C.510, 363C.520, 363C.530, 363C.540, 363C.550, 363C.560, 368A.200, 360B.483
Reprint 1: 360.261, 360.2937, 360.300, 360.417, 360.510, 360B.030, 360B.063, 360B.080, 360B.320, 360B.483
BDR: 360.261, 360.2937, 360.300, 360.417, 360.510, 360B.030, 360B.063, 360B.080, 360B.320, 363C.200, 363C.300, 363C.310, 363C.320, 363C.330, 363C.340, 363C.350, 363C.360, 363C.370, 363C.380, 363C.390, 363C.400, 363C.410, 363C.420, 363C.430, 363C.440, 363C.450, 363C.460, 363C.470, 363C.480, 363C.490, 363C.500, 363C.510, 363C.520, 363C.530, 363C.540, 363C.550, 363C.560, 368A.200, 360B.483