SB 447 — Exempts sales of certain durable medical equipment, oxygen delivery equipment and mobility enhancing equipment from sales and use taxes. (BDR 32-1255)

EXEMPTSenate (ReprintedBill withNo. amendments adopted on April 19, 2019) FIRST REPRINT S.B.

447447–Committee Son ENATERevenue Band ILLNEconomic O.Development CHAPTER..........

447–COMMITTEE ON R EVENUE AND ECONOMIC DEVELOPMENT M ARCH 25, 2019 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Exempts sales of certain durable medical equipment, oxygen delivery equipment and mobility enhancing equipment from sales and use taxes.

(BDR 32-1255) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

4, which proposed to amend the Nevada Constitution to require the Legislature to provide by law for an exemption from sales and use taxes for certain durable medical equipment, oxygen delivery equipment and mobility enhancing certain equipment.

The initiative petition was again approved by the voters at the 2018 wasGeneral enactedElection. to require the Legislature to provide for the exemption.

Accordingly, Article 10, Section 3B of the Nevada Constitution was enacted to require the Legislature to provide for the exemption.

Sections 2-4 of this bill define the terms “durable medical equipment,” “mobility enhancing equipment” and “oxygen delivery equipment” for the purpose of the exemption.

Section 9 of this bill amends amendment to the Local School Support Tax Law also applies to otherprovide salesan andidentical useexemption. taxes imposed under existing law.

(NRSAny 354.705,amendment 374A.020,to 376A.060,the Local School Support Tax Law also applies to other sales and 377.040, 377A.030, 377B.110 and 543.600 and various special and local acts) Section 12 of this bill provides that all these exemptions become effective on July 1, 2019.

-EXPLANATION *SB447_R1* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

The term includes, without limitation, abduction and orthotic pillows, anesthesia ventilators, bone growth stimulators, - 80th Session (2019) – 2 – dialyzers, enteral feeding systems, drug infusion devices and kidney dialysis machines.

and (c) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a manufacturer of motormotora vehicles.

“Oxygen delivery equipment” means equipment, including any repair and replacement parts therefor, which is used to deliver oxygen or aerosolized medicine to a person.

The termsedterm includes, without limitation, tanks and concentrators, ventilators, nebulizers, oral-nasal cannulas and continuous positive airway pressure (CPAP) machines.

- *SB447_R1* – 3 – Sec.

Chapter 372 of NRS is hereby amended by adding theretotheThere aare newhereby sectionexempted tofrom readthe astaxes follows:imposed by this chapter the gross receipts from sales of, and the storage, use or other consumption of:

There are hereby exempted from the taxes imposed by this chapter the gross receipts from sales of, and the storage, use or other consumption of:

372.195 Every retailer maintaining a place of business in this State and making sales of tangible personal property for storage, use or other consumption in this State, not exempted under NRS 372.260 to 372.350, inclusive, and section 6 of this act, shall, at the - 80th Session (2019) – 3 – time of making the sales or, if the storage, use or other consumption of the tangible personal property is not then taxable hereunder, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the Tax Commission.

Oxygen delivery equipment,  prescribed for human use by a licensed provider of health care actingactSec. within his or her scope of practice.

Sec.

- *SB447_R1* – 4 – Sec.

374.265 “Exempted from the taxes imposed by this chapter,” as used in NRS 374.265 to 374.355, inclusive, and section 9 of this act, means exempted from the computation of the amount of taxesthistaxes imposed.

H~~~~~ 19 - *SB447_R1*80th Session (2019)