Nevada – The Nevada Nexus Net Is Thrown A Little Wider With Approval of AB 380

Salt Report 3677 – On May 27, 2015 the Nevada Legislature signed Assembly Bill 380 into law.  AB 380 enacts nexus provisions based on previously enacted Colorado and New York laws.  Pursuant to the Legislative Counsel’s Digest in AB 380 the following rebuttable presumptions are now enacted:

“Sections 2 and 5 of this bill enact provisions based on a Colorado law which creates a presumption that a retailer is required to impose, collect and remit sales and use taxes if the retailer is: (1) part of a controlled group of business entities that has a component member who has physical presence in this State; and (2) the component member with such physical presence engages in certain activities in this State that relate to the ability of the retailer to make retail sales to residents of this State.”

“Sections 3 and 6 of this bill enact a provision based on a New York law which creates a presumption that a retailer is required to impose, collect and remit sales and use taxes if: (1) the retailer enters into an agreement with a resident of this State under which the resident receives certain consideration for referring potential customers to the retailer through a link on the resident’s Internet website or otherwise; and (2) the cumulative gross receipts from sales by the retailer to customers in this State through all such referrals exceeds a certain amount during the preceding four quarterly periods.”

Further Information:

http://www.leg.state.nv.us/Session/78th2015/Bills/AB/AB380_EN.pdf