Nevada Sales and Use Tax Protest / Refund Claim

PETITION / REFUND CLAIM / APPEAL — NEVADA SALES AND USE TAX

TABLE OF CONTENTS

1. Caption
2. Parties and Procedural Posture
3. Statement of Facts
4. Tax Type, Rate, and Measurement
5. Statement of Contested Issues
6. Legal Argument
7. Wayfair / Economic Nexus Analysis
8. Refund Claim
9. Computation of Correct Liability or Refund
10. Request for Relief
11. Reservation of Rights
12. Verification
13. Certificate of Service
14. Nevada Practice Notes
15. Sources and References

1. CAPTION

STATE OF NEVADA

DEPARTMENT OF TAXATION — and on appeal —

BEFORE THE NEVADA TAX COMMISSION

MATTER NO. [________________________________]

☐ PETITION FOR REDETERMINATION (NRS § 360.360)

☐ CLAIM FOR REFUND (NRS § 372.630 / § 372.635)

☐ NOTICE OF APPEAL TO NEVADA TAX COMMISSION (NRS § 360.245)

2. PARTIES AND PROCEDURAL POSTURE

2.1. Petitioner / Claimant [TAXPAYER LEGAL NAME] ("Taxpayer") is a [entity type] organized under the laws of [state], with its principal place of business at [ADDRESS], holding Nevada Sales/Use Tax Permit No. [####] and Nevada Business ID No. [NVBID].

2.2. Respondent is the Nevada Department of Taxation ("Department"), the agency charged with administration of NRS Chapters 372 and 374.

2.3. [Select procedural posture:]

• ☐ On [DATE], the Department issued Notice of Deficiency Determination No. [#####] assessing additional sales/use tax of $[AMT], penalties of $[AMT], and interest of $[AMT], for the periods [PERIODS]. This Petition for Redetermination is filed within forty-five (45) days as required by NRS § 360.360.

• ☐ Taxpayer overpaid sales/use tax in the amount of $[AMT] for the reporting periods [PERIODS] and submits this Claim for Refund within three (3) years of the last day of the month following the close of the relevant period(s) as required by NRS § 372.635.

• ☐ On [DATE], the Department / its hearing officer issued a decision adverse to Taxpayer. This Notice of Appeal to the Nevada Tax Commission is filed within thirty (30) days of service as required by NRS § 360.245(1).

3. STATEMENT OF FACTS

3.1. Taxpayer's business activity in Nevada is described as: [NARRATIVE — products/services sold; physical and economic presence; channels (brick-and-mortar, e-commerce, marketplace); customer base].

3.2. During the periods at issue, Taxpayer [was / was not] a "retailer maintaining a place of business in this State" within the meaning of NRS § 372.105 and NRS § 372.7245.

3.3. Taxpayer [did / did not] exceed the Wayfair economic-nexus thresholds of $100,000 in retail sales OR 200 or more separate retail transactions delivered into Nevada in the previous or current calendar year.

3.4. Taxpayer's reporting history for the periods at issue is summarized in Exhibit A (return-by-return reconciliation).

3.5. [Audit / refund-trigger narrative — describe what gave rise to the dispute, the auditor's findings or the basis for the refund claim, and the records supporting Taxpayer's position.]

4. TAX TYPE, RATE, AND MEASUREMENT

4.1. State sales tax. NRS § 372.105 imposes a state sales tax of 2.00% of the gross receipts of a retailer from the sale of all tangible personal property sold at retail in Nevada.

4.2. Local School Support Tax and combined rate. NRS Chapter 374 imposes the Local School Support Tax (currently 2.60%) and additional county/city taxes layer the combined rate. The combined rate for [COUNTY] during the periods at issue was [X.XX]%.

4.3. Use tax. NRS § 374.190 (and NRS Ch. 372) imposes a complementary use tax on the storage, use, or other consumption of tangible personal property in Nevada at the same combined rate, less credit for sales/use tax lawfully paid to another state (NRS § 372.337).

4.4. Exemptions. Statutory exemptions invoked by Taxpayer include: [e.g., NRS § 372.265 (sales for resale), § 372.270 (occasional sales), § 372.275 (interstate commerce), § 372.295 (food for home consumption), § 372.325 (medicines), § 372.347 (resale certificate procedure)].

5. STATEMENT OF CONTESTED ISSUES

6. LEGAL ARGUMENT

6.1 Burden and Standard of Review

Taxpayer bears the burden of proving the Department's determination incorrect by a preponderance of the evidence. Nevada law construes statutes imposing tax strictly against the taxing authority and resolves ambiguity in favor of the taxpayer. See Sierra Pac. Power Co. v. Dep't of Taxation, 130 Nev. 940 (2014).

6.2 Issue-Specific Argument

Issue 1 — Characterization of receipts. NRS § 372.105 imposes tax on "gross receipts" from the sale of "tangible personal property" sold at retail. Nevada generally does not tax services. The receipts in question represent [CHARACTERIZATION — e.g., separately stated installation labor under NAC § 372.380; cloud-hosted SaaS without transfer of tangible media; professional services] and therefore fall outside the measure of tax.

Issue 2 — Resale certificates. NRS § 372.347 entitles a seller to accept a resale certificate in good faith and relieves the seller of liability for tax on the sale. Taxpayer obtained, in good faith and timely, the certificates produced as Exhibit B. The auditor's "missing certificate" adjustments are accordingly improper.

Issue 3 — Interstate-commerce exclusion / drop-shipments. NRS § 372.275 and the Commerce Clause exclude sales in interstate commerce. The transactions at issue involved delivery to out-of-state customers via [carrier] with title passage outside Nevada per the parties' contract terms.

Issue 4 — Bad-debt deduction. NRS § 372.368 permits a deduction for accounts found worthless and charged off for federal income tax purposes. Taxpayer's bad-debt schedule (Exhibit C) satisfies the statutory requirements.

6.3 Penalty Abatement

Penalties imposed under NRS § 360.300 and § 372.510 should be abated for reasonable cause under NAC § 360.395. Taxpayer relied in good faith on [BASIS] and exercised ordinary business care.

6.4 Statute of Limitations

NRS § 360.355 bars assessment more than three (3) years after the return was filed. Periods [LIST] are time-barred.

7. WAYFAIR / ECONOMIC NEXUS ANALYSIS

7.1 The Wayfair Standard

In South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018), the Supreme Court overruled the physical-presence requirement of Quill Corp. v. North Dakota, 504 U.S. 298 (1992), and held that a remote seller may be required to collect a state's sales tax based on substantial economic and virtual contacts.

7.2 Nevada's Implementation

Effective October 1, 2018, Nevada requires registration and collection by remote sellers whose retail sales into Nevada exceed $100,000 OR who have 200 or more separate retail transactions for delivery into Nevada in the previous or current calendar year (Nevada Department of Taxation guidance implementing NRS Ch. 372; codified in part at NRS § 372.7245). Marketplace facilitators are responsible for collection on third-party sales they facilitate under NRS § 372.7287.

7.3 Application to Taxpayer

Taxpayer's Nevada-delivered sales and transaction counts for the relevant calendar years are:

7.3.1. No nexus position. Taxpayer did not exceed either threshold during the audit period and was not otherwise required to register under NRS § 372.220. The Department's assessment for periods preceding registration is therefore improper.

7.3.2. Marketplace facilitator position. Sales facilitated by a registered marketplace facilitator are the facilitator's responsibility under NRS § 372.7287; they should not be included in Taxpayer's measure of tax.

7.3.3. Voluntary disclosure / look-back. To the extent any obligation existed, Taxpayer is prepared to discuss a voluntary disclosure agreement with limited look-back consistent with Department practice.

8. REFUND CLAIM

8.1 Statutory Basis

Pursuant to NRS § 372.630, "[i]f the department determines that any amount, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed," the Department shall set forth the amount as a credit or refund. Pursuant to NRS § 372.635, the claim must be filed within three (3) years after the last day of the month following the close of the period for which the overpayment was made.

8.2 Periods and Amounts

8.3 Vendor Reimbursement of Customer (NRS § 372.640)

To the extent the refund relates to sales tax collected from a customer and remitted to the State, Taxpayer represents that it has either (a) refunded the over-collected amount to the customer (proof in Exhibit D), or (b) shall do so promptly upon receipt of the State refund, in compliance with NRS § 372.640.

8.4 Disallowance and Action for Refund

If the claim is disallowed in whole or in part, the Department shall serve a notice of disallowance under NRS § 372.655. Taxpayer reserves the right to bring an action against the State under NRS § 372.680 within ninety (90) days after notice of disallowance.

9. COMPUTATION OF CORRECT LIABILITY OR REFUND

A schedule reconciling Taxpayer's position to the Department's assessment (or supporting the refund) is attached as Exhibit E. Summary:

10. REQUEST FOR RELIEF

WHEREFORE, Taxpayer respectfully requests that the Department, and on appeal the Nevada Tax Commission:

• A. Vacate the Notice of Deficiency Determination in whole or in part;
• B. Allow the refund claim in the amount of $[AMOUNT], plus statutory interest from the date of overpayment per NRS § 372.650;
• C. Abate all penalties for reasonable cause;
• D. Issue a Notice of Credit or Refund consistent with this filing;
• E. Stay collection activity pending final resolution; and
• F. Grant such further relief as is just and proper.

11. RESERVATION OF RIGHTS

11.1. Taxpayer expressly preserves: (a) the right to appeal an adverse decision to the Nevada Tax Commission within 30 days under NRS § 360.245; (b) the right to seek judicial review under NRS § 233B.130 within 30 days of the Tax Commission's final decision (subject to the payment / payment-agreement prerequisite of NRS § 360.395); (c) the right to bring a refund action against the State under NRS § 372.680; and (d) the right to amend or supplement this filing.

11.2. Any payment toward the assessment is made under protest and without waiver of any defense or right of refund.

12. VERIFICATION

STATE OF NEVADA

COUNTY OF [COUNTY]

I, [OFFICER NAME], being first duly sworn, depose and say that I am the [TITLE] of Taxpayer; that I am authorized to execute this filing on its behalf; that I have read the foregoing and know its contents; and that the same is true to my own knowledge except as to those matters stated upon information and belief, and as to those I believe them to be true.

[________________________________]

[OFFICER NAME], [TITLE]

Sworn to and subscribed before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public — State of Nevada

(My Commission Expires: [_______________])

13. CERTIFICATE OF SERVICE

I hereby certify that on this the [____] day of [_______________], 20[____], a true and correct copy of the foregoing was served upon the Nevada Department of Taxation by [U.S. CERTIFIED MAIL, RETURN RECEIPT REQUESTED / HAND DELIVERY / E-SERVICE via the Department's secure portal] at:

Nevada Department of Taxation
Attn: [Hearing Officer / Refund Section / Compliance Division]
3850 Arrowhead Drive, 2nd Floor
Carson City, Nevada 89706

[________________________________]

[ATTORNEY OR AUTHORIZED REPRESENTATIVE]

14. NEVADA PRACTICE NOTES

• Combined sales-tax rate. The Nevada state sales tax under NRS § 372.105 is 2.00%. The combined rate (state + local school support + county options) varies by county and ranges roughly from 6.85% in Esmeralda, Eureka, Humboldt, Lander, Lincoln, Mineral, Pershing, Storey, and White Pine counties to 8.375% in Clark County (Las Vegas). Verify the exact rate for the relevant period and county on the Department's published rate schedule.
• Service vs. tangible personal property. Nevada generally taxes only tangible personal property and a small number of statutorily enumerated services. Software-as-a-service delivered without tangible media has historically been treated as a non-taxable service in Nevada, but evolving guidance counsels caution; secure written advice for material positions.
• Resale certificates (NRS § 372.347). A seller accepting a resale certificate in good faith is relieved of liability for tax on the sale. Audit files should pair every claimed exempt sale with a contemporaneous, properly completed certificate. Belated certificates may be accepted but are scrutinized.
• Wayfair / economic nexus. Effective October 1, 2018, Nevada requires registration and collection by remote sellers exceeding $100,000 in retail sales OR 200 separate transactions delivered into Nevada in the previous or current calendar year. Marketplace facilitators collect on facilitated sales (NRS § 372.7287).
• Refund deadlines (NRS § 372.635). Three years from the last day of the month following the close of the period for which the overpayment was made. Vendors who collected tax from customers should refund the customer or be prepared to do so before claiming the State refund (NRS § 372.640).
• Disallowance and suit. A disallowance triggers a 90-day window to bring an action for refund against the State under NRS § 372.680, in addition to the administrative appeal cascade.
• Two-step administrative appeal then judicial review. 45 days to Petition for Redetermination (NRS § 360.360); 30 days to appeal an adverse decision to the Nevada Tax Commission (NRS § 360.245); 30 days to file a petition for judicial review (NRS § 233B.130) after paying the determination or executing a written payment agreement (NRS § 360.395).
• Records retention. Four years for registered businesses, eight years for unregistered (NRS § 372.735).
• Bond / security in lieu of payment. Collection may be stayed by posting a bond or security in lieu of paying the contested amount in full pending appeal — confirm current Department practice and bond rates.

15. SOURCES AND REFERENCES

• NRS Chapter 372 — Sales and Use Taxes: https://www.leg.state.nv.us/nrs/nrs-372.html
• NRS Chapter 374 — Local School Support Tax / Use Tax: https://www.leg.state.nv.us/NRS/NRS-374.html
• NRS § 372.635 (Limitations on refund/credit — 3 years): https://nevada.public.law/statutes/nrs_372.635
• NRS § 372.640 (Use-tax credit/refund; reimbursement of vendor): https://nevada.public.law/statutes/nrs_372.640
• NRS § 372.655 (Service of notice of disallowance): https://nevada.public.law/statutes/nrs_372.655
• NRS Chapter 360 — General Provisions (appeals): https://www.leg.state.nv.us/NRS/NRS-360.html
• NRS Chapter 233B — Nevada Administrative Procedure Act: https://www.leg.state.nv.us/nrs/nrs-233b.html
• Nevada Department of Taxation — Remote Sellers (Wayfair) FAQ: https://tax.nv.gov/faqs/marketplace-facilitator-seller-faqs/remote-sellers-wayfair-decision/
• Nevada Department of Taxation — Sales and Use Tax General Info: https://tax.nv.gov/wp-content/uploads/2024/05/Sales-and-Use-Tax-GeneraI-Info.pdf
• Nevada Department of Taxation — Appeals FAQ: https://tax.nv.gov/faqs/appeals-faqs/
• South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018)
• Quill Corp. v. North Dakota, 504 U.S. 298 (1992) (overruled)
• State Dep't of Taxation v. Chrysler Group LLC, 129 Nev. 274 (2013)
• Sierra Pac. Power Co. v. Dep't of Taxation, 130 Nev. 940 (2014)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Nevada must review and customize this document before filing. Statutes, rates, and procedures change; verify all authorities against the current Nevada Revised Statutes, Nevada Administrative Code, and Department guidance before use.