374.353 - Claim of exemption: Nonprofit organization created for religious, charitable or educational purposes. - Nevada Statutes

374.353  Claim of exemption: Nonprofit organization created for religious, charitable or educational purposes.

      1.  Any nonprofit organization created for religious, charitable or educational purposes that wishes to claim an exemption pursuant to NRS 374.3305 must file an application with the Department to obtain a letter of exemption. The application must be on a form and contain such information as is required by the Department.

      2.  If the Department determines that the organization is created for religious, charitable or educational purposes, it shall issue a letter of exemption to the organization. The letter of exemption expires 5 years after the date on which it is issued by the Department. At least 90 days before the expiration of the letter of exemption, the Department shall notify the organization to whom the letter was issued of the date on which the letter will expire. The organization may renew its letter of exemption for an additional 5 years by filing an application for renewal with the Department. The application for renewal must be on a form and contain such information as is required by the Department.

      3.  To claim an exemption pursuant to NRS 374.3305 for the sale of tangible personal property to such an organization:

      (a) The organization must give a copy of its letter of exemption to the retailer from whom the organization purchases the property; and

      (b) The retailer must retain and present upon request a copy of the letter of exemption.

      4.  The Department shall adopt such regulations as are necessary to carry out the provisions of this section.

      (Added to NRS by 1995, 1440)—(Substituted in revision for NRS 374.3307)

      NRS 374.355  Liability of purchaser who uses property declared exempt for purpose not exempt.  If a purchaser certifies in writing to a seller that the property purchased will be used in a manner or for a purpose entitling the seller to regard the gross receipts from the sale as exempted by this chapter from the computation of the amount of the sales tax, and uses the property in some other manner or for some other purpose, the purchaser shall be liable for payment of sales tax as if he or she were a retailer making a retail sale of the property at the time of such use, and the cost of the property to him or her shall be deemed the gross receipts from such retail sale.

      (Added to NRS by 1967, 906)