SB 346 — Imposes a tax on the retail sale of certain digital products. (BDR 32-9)

If the holder of a permit issued pursuant to this chapter fails to comply with any provision of this chapter or any regulation adopted pursuant thereto, the Department may revoke - *SB346_R1* – 9 – or suspend any one or more of the permits held by the person.

At the time of purchasing the specified digital product, intends to broadcast, rebroadcast, transmit, retransmit, license, relicense, distribute, redistribute or exhibit the specified digital - *SB346* – 10 – product in the regular course of business or is unable to ascertain at the time of purchase whether the specified digital product will be used for such a purpose or will be used for some other purpose.

- *SB346_R1* – 10 – Sec.

The tax is imposed with respect to all specified digital products which were electronically transferred in a transaction - *SB346* – 11 – that is taxable pursuant to this chapter but for which the tax imposed by section 24 of this act was not collected.

The liability of a person pursuant to this section is not extinguished until the tax has been paid to this State, except that a receipt from a retailer given to the purchaser pursuant to - *SB346_R1* – 11 – section 35 of this act is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

- *SB346* – 12 – Sec.

The burden of proving that a sale of specified digital products is not a sale at retail is upon the person who makes the sale unless the person takes from the - *SB346_R1* – 12 – purchaser a certificate to the effect that the specified digital products were purchased by an end user and the purchaser:

There are exempted from the taxes imposed by this chapter the gross receipts from the sale of specified digital - *SB346* – 13 – products that are textbooks sold within the Nevada System of Higher Education.

- *SB346_R1* – 13 – Sec.

Such an organization includes, without limitation, an integrated auxiliary or affiliate of the organization, men’s, women’s or youth groups established by the organization, a school or mission society operated by the organization, an - *SB346* – 14 – organization of local units of a church and a convention or association of churches.

(1) Advance a public purpose, donate or render gratuitously or at a reduced rate a substantial portion of its services to the persons who are the subjects of its charitable services, and benefit - *SB346_R1* – 14 – a substantial and indefinite class of persons who are the legitimate subjects of charity;

- *SB346* – 15 – (c) No substantial part of the business of the organization is devoted to the advocacy of any political principle or the defeat or passage of any state or federal legislation;

and (e) Any property sold to the organization for which an exemption is claimed is used by the organization in this State in - *SB346_R1* – 15 – furtherance of the religious, charitable or educational purposes of the organization.

- *SB346* – 16 – 5.

- *SB346_R1* – 16 – (b) Solicits a purchaser to participate in an unlawful claim of an exemption;

- *SB346* – 17 – (a) The organization must give a copy of its letter of exemption to the retailer from whom the organization purchases the product;

If a purchaser certifies in writing to a seller that the specified digital products purchased will be used in a manner or - *SB346_R1* – 17 – 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 taxes imposed by this chapter, and uses the specified digital products in some other manner or for some other purpose, the purchaser shall be liable for payment of the tax as if the purchaser were a retailer making a retail sale of the specified digital products at the time of such use, and the cost of the specified digital products to the purchaser shall be deemed the gross receipts from such retail sale.

- *SB346* – 18 – Sec.

- *SB346_R1* – 18 – (3) A sale pertains to the county in this State in which the retail sale of specified digital products takes place as determined pursuant to section 23 of this act.

- *SB346* – 19 – (a) For the first return of any retailer which contains one or more violations, issue a letter of warning to the retailer which provides an explanation of the violation or violations contained in the return.

- *SB346_R1* – 19 – (c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the tax which was not reported or was reported for the wrong county or $3,000, whichever is less.

- *SB346* – 20 – 4.

- *SB346_R1* – 20 – 5.

and - *SB346* – 21 – (c) That the bad debt is or would be eligible to be claimed by the entity as a deduction pursuant to section 166 of the Internal Revenue Code, 26 U.S.C.

- *SB346_R1* – 21 – (b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the deduction claimed or $1,000, whichever is less.

The regulations adopted by the Nevada Tax Commission pursuant to NRS 360B.110 may authorize the deduction and withholding from the taxes otherwise due from a taxpayer such - *SB346* – 22 – other amounts as are required to carry out the Streamlined Sales and Use Tax Agreement.

- *SB346_R1* – 22 – Sec.

The Department shall fix the amount of the security which, except as otherwise provided in subsection 2, may not be greater than twice the estimated average tax due quarterly of persons filing returns for quarterly periods, three - *SB346* – 23 – times the estimated average tax due monthly of persons filing returns for monthly periods or four times the estimated average tax due annually of persons filing returns for annual periods, determined in such a manner as the Department deems proper.

In the case of persons who are habitually delinquent in their obligations under this chapter, the amount of the security may not be greater than three times the average actual tax due quarterly of persons filing returns for quarterly periods, five times the average actual tax due monthly of persons filing returns for - *SB346_R1* – 23 – monthly periods or seven times the average actual tax due annually of persons filing returns for annual periods.

Any overpayment of the tax imposed by section 33 of this act by a purchaser to a retailer who is required to collect the tax and who gives the purchaser a receipt therefor pursuant to sections 33 to 43, inclusive, of this act must be credited or - *SB346* – 24 – refunded by the State to the purchaser, subject to the requirements of NRS 360.236.

- *SB346_R1* – 24 – 2.

No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been - *SB346* – 25 – erroneously or illegally determined or collected unless a claim for refund or credit has been duly filed.

Within 90 days after a final decision upon a claim filed pursuant to this chapter is rendered by the Nevada Tax Commission, the claimant may bring an action against the Department on the grounds set forth in the claim in a court of competent jurisdiction in Carson City, the county of this State where the claimant resides or maintains his or her principal place of business or a county in which any relevant proceedings were - *SB346_R1* – 25 – conducted by the Department, for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

A judgment shall not be rendered in favor of the plaintiff in any action brought against the Department to recover - *SB346* – 26 – any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.

- *SB346_R1* – 26 – Sec.

- *SB346* – 27 – Sec.

- *SB346_R1* – 27 – Sec.

and - *SB346* – 28 – (b) Directly or indirectly, does one or more of the following to facilitate a retail sale:

(3) Charges, collects or otherwise receives selling fees, listing fees, referral fees, closing fees, fees for inserting or making - *SB346_R1* – 28 – available specified digital products on a marketplace or other consideration from the facilitation of a retail sale of specified digital products, regardless of ownership or control of the specified digital products that are the subject of the retail sale;

3.

The term includes a provider of direct broadcast satellite service as defined in 47 U.S.C.

§ 335(b)(5)(A) or a cable operator as defined in 47 U.S.C.

§ 522(5) who meets the definition of “marketplace facilitator” provided in subsection 1, including, without limitation, by facilitating the retail sale of a software application of a marketplace seller which may be accessed through the digital platform owned, operated or controlled by the provider of direct broadcast satellite service or cable operator.

A provider of direct broadcast satellite service or cable operator is not a marketplace facilitator with respect to a software application of a marketplace seller which may be accessed through the digital platform owned, operated or controlled by the provider of direct broadcast satellite service or cable operator for no additional charge.

A seller who makes retail sales resulting from a referral by a referrer, even if such seller would not have been required to - *SB346_R1* – 29 – collect and remit the sales tax or use tax had the sale not been made through such referrer.

Except as otherwise provided in this section and section 95 of this act, the provisions of this chapter relating to the imposition, collection and remittance of the tax imposed by section 24 of this act, and the collection and remittance of the tax imposed by section 33 of this act, apply to a marketplace facilitator during - *SB346* – 29 – a calendar year in which or during a calendar year immediately following any calendar year in which:

- *SB346_R1* – 30 – (a) The marketplace seller for whom a marketplace facilitator makes or facilitates a retail sale would not have been required to collect and remit the sales tax or the use tax had the retail sale not been facilitated by the marketplace facilitator;

or - *SB346* – 30 – (c) The amount of the sales price of a retail sale will ultimately accrue to or benefit the marketplace facilitator, the marketplace seller or any other person.

The relief from liability provided pursuant to subsection 2 for the 2022 and 2023 calendar years, respectively, must not exceed 5 percent of the total tax imposed by sections 24 and 33 of this act owed for the calendar year on the cumulative gross - *SB346_R1* – 31 – receipts of the marketplace facilitator from retail sales made or facilitated by the marketplace facilitator for one or more marketplace sellers to customers in this State.

If a marketplace facilitator is relieved of liability for the collection and remittance of any amount of the tax imposed by section 24 of this act or the tax imposed by section 33 of this act pursuant to subsection 1, the marketplace seller or purchaser, as - *SB346* – 31 – applicable, is liable for the payment of such uncollected, unpaid or unremitted tax.

(2) A statement that the marketplace seller from whom the person is purchasing on the platform may or may not collect and - *SB346_R1* – 32 – remit the tax imposed by sections 24 and 33 of this act on a purchase;

and - *SB346* – 32 – (5) Instructions for obtaining additional information from the Department regarding whether and how to remit the tax imposed by sections 24 and 33 of this act;

Any regulations adopted by the Department pursuant to subsection 1 must apply only to referrals by a referrer and shall not preclude the applicability of other provisions of this chapter to - *SB346_R1* – 33 – a person who is a referrer and is also a retailer, a marketplace facilitator or a marketplace seller.

(b) “Referral” means the transfer through telephone, Internet link or other means by a referrer of a potential customer to a - *SB346* – 33 – retailer or seller who advertises or lists specified digital products for sale on a platform of the referrer.

- *SB346_R1* – 34 – (b) The right of a taxpayer to seek a refund pursuant to sections 69 to 87, inclusive, of this act.

(a) The retailer is part of a controlled group of corporations that has a component member, other than a common carrier - *SB346* – 34 – acting in its capacity as such, that has physical presence in this State;

In administering the provisions of this chapter, the Department shall construe the terms “seller,” “retailer” and - *SB346_R1* – 35 – “retailer maintaining a place of business in this State” in accordance with the provisions of this section.

- *SB346* – 35 – (b) “Controlled group of corporations” has the meaning ascribed to it in section 1563(a) of the Internal Revenue Code, 26 U.S.C.

Such proof may consist of the sworn written statements of each resident with whom the retailer has an agreement stating that the resident did not engage in any solicitation in this State on behalf of the retailer during the preceding four quarterly periods ending on the last day of March, - *SB346_R1* – 36 – June, September and December, if the statements were obtained from each resident and provided to the Department in good faith.

The provisions of this chapter relating to the imposition, collection and remittance of the tax imposed by section 24 of this act, and the collection and remittance of the tax imposed - *SB346* – 36 – by section 33 of this act apply to a retailer if, in the immediately preceding calendar year or the current calendar year:

and - *SB346_R1* – 37 – (b) Is related by blood, adoption or marriage within the first degree of consanguinity or affinity to the member.

- *SB346* – 37 – (a) Resided in the same house or dwelling in this State as the deceased member;

Notwithstanding any other provision of law, any broadcaster, printer, outdoor advertising firm, advertising - *SB346_R1* – 38 – distributor or publisher which broadcasts, publishes, displays or distributes paid commercial advertising in this State which is intended to be disseminated primarily to persons located in this State and is only secondarily disseminated to bordering jurisdictions, including advertising appearing exclusively in a Nevada edition or section of a national publication, must be regarded, for the purposes set forth in subsection 2 only, as the agent of the person or entity placing the advertisement, and as a retailer maintaining a place of business in this State.

- *SB346* – 38 – 2.

or - *SB346_R1* – 39 – (2) File a return pursuant to subsection 2 of section 59 of this act;

and (b) Keeps outside of this State his or her records, receipts, invoices and other documents relating to sales the person has made or the tax imposed by section 33 of this act due this State,  shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the State for each day or fraction thereof during which an employee of the Department is engaged in examining those - *SB346* – 39 – documents, plus any other actual expenses incurred by the employee while he or she is absent from his or her regular place of employment to examine those documents.

All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the State under this - *SB346_R1* – 40 – chapter must be paid to the Department in the form of remittances payable to the Department.

TheExcept as otherwise provided in subsection 3, the Department shall deposit the payments in the State Treasury to the credit of each account in the State General Fund to which is credited a tax imposed upon sales at retail of tangible personal property and use tax due on the purchase of tangible personal property for use in this State, in the proportion that would be credited to each account if the fees, taxes, interest and penalties imposed or required to be paid to the State under this - *SB346* – 40 – chapter were a tax upon sales at retail of tangible personal property or use tax due on the purchase of tangible personal property for use in this State.

3.

The payments pursuant to this chapter which, in the absence of this subsection, would be allocated pursuant to NRS 377.055 and 377.057 must instead be distributed to the county to which the underlying retail sale of specified digital products is deemed to take place pursuant to section 23 of this act.

Title(Deleted 32 of NRS is hereby amended by addingamendment.) theretoSec. a new chapter to consist of the provisions set forth as sections 119 to 138, inclusive, of this act.

Sec.

As(Deleted usedby inamendment.) thisSec. chapter, unless the context otherwise requires, the words and terms defined in sections 120, 121 and 122 of this act have the meanings ascribed to them in those sections.

Sec.

“Direct-to-home(Deleted satellite television service” means television programming transmitted or broadcast by satelliteamendment.) directlySec. to the customers’ premises without the use of ground receiving or distribution equipment, except at the customers’ premises or in the uplink process to the satellite.

Sec.

“Taxpayer”(Deleted meansby aamendment.) personSec. who provides direct- to-home satellite television service.

Sec.

“Television(Deleted programming” means multichannel television programming generally considered comparable to television programming delivered by aamendment.) televisionSec. broadcast station, cable service or other digital television service, whether provided as part of a tier, on-demand or on a per-channel basis.

Sec.

The(Deleted provisions of chapter 360 of NRS relating to the payment, collection, administration and enforcement of taxes, including, without limitation, any provisions relating to the imposition of penalties and interest, shall be deemed to apply to the payment, collection, administration and enforcement of the excise taxes imposed by thisamendment.) chapterSec. to the extent that those provisions do not conflict with the provisions of this chapter.

- *SB346* – 41 – Sec.

The(Deleted Departmentby shallamendment.) adoptSec. all necessary regulations to carry out the provisions of this chapter.

Sec.

1.(Deleted by amendment.) Sec.

Each person responsible for maintaining the records of a taxpayer shall:

(a) Keep such records as may be necessary to determine the amount of the liability of the taxpayer pursuant to the provisions of this chapter;

(b) Preserve those records for 4 years or until any litigation or prosecution pursuant to this chapter is finally determined, whichever is longer;

and (c) Make the records available for inspection by the Department upon demand at reasonable times during regular business hours.

2.

Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.

Sec.

1.(Deleted by amendment.) Sec.

To verify the accuracy of any return filed by a taxpayer or, if no return is filed, to determine the amount required to be paid, the Department, or any person authorized in writing by the Department, may examine the books, papers and records of any person who may be liable for the excise taxes imposed by this chapter.

2.

Any person who may be liable for the tax imposed by this chapter and who keeps outside of this State any books, papers and records relating thereto shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the State for each day or fraction thereof during which an employee of the Department is engaged in examining those documents, plus any other actual expenses incurred by the employee while the employee is absent from his or her regular place of employment to examine those documents.

Sec.

Except(Deleted asby otherwiseamendment.) providedSec. in subsection 4:

1.

An excise tax is hereby imposed at the rate of 5 percent of the gross receipts derived from providing direct-to-home satellite television service to a customer in this State, including, without limitation, any separately stated charges billed to a customer for repair, maintenance and installation services or a contribution in aid of construction.

2.

Each taxpayer shall file with the Department on or before the last day of each month, a report showing the amount of all taxable receipts for the preceding month.

The report must be in a form prescribed by the Department.

3.

Each report required to be filed by this section must be accompanied by the amount of the tax that is due for the period covered by the report.

- *SB346* – 42 – 4.

The tax imposed by subsection 1 does not apply to gross receipts that this State is prohibited from taxing under the Constitution, laws or treaties of the United States or the Nevada Constitution.

Sec.

1.(Deleted by amendment.) Sec.

All taxes, interest and penalties imposed and all amounts of tax required to be paid pursuant to this chapter must be paid to the Department in the form of remittances payable to the Department.

2.

The Department shall deposit all taxes, interest and penalties received pursuant to this chapter with the State Treasurer:

(a) For credit to the Account to Stabilize the Operation of the State Government created in the State General Fund by NRS 353.288, 50 percent of all taxes, interest and penalties received pursuant to this chapter, except that if the amount of such credit would cause the balance in the Account to Stabilize the Operation of the State Government to exceed the maximum balance established pursuant to subsection 3 of NRS 353.288, the amount of credit exceeding the maximum balance must be deposited for credit to the State General Fund.

(b) For credit to the State General Fund, the remainder of the taxes, interest and penalties received pursuant to this chapter.

Sec.

For(Deleted theby purposesamendment.) of- this*SB346_R1* chapter,– gross41 receipts– derivedSec. from providing direct-to-home satellite television service shall be sourced to:

1.

The customer’s business or home address, indicated in the business records of the taxpayer that are maintained in the ordinary course of the taxpayer’s business, unless the use of that address would constitute bad faith.

2.

If subsection 1 does not apply, the address of the customer obtained during the consummation of the service contract, including, if no other address is available, the address of the customer’s instrument of payment, unless the use of an address pursuant to this subsection would constitute bad faith.

Sec.

If(Deleted the Department determines that the excise tax imposed by sectionamendment.) 127Sec. of this act or any penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and certify to the State Board of Examiners the amount collected in excess of the amount legally due and the person from whom it was collected or by whom it was paid.

If approved by the State Board of Examiners, the excess amount collected or paid must, after being credited against any amount then due from the person in accordance with - *SB346* – 43 – NRS 360.236, be refunded to the person or the person’s successors in interest.

Sec.

1.(Deleted by amendment.) Sec.

Except as otherwise provided in NRS 360.235 and 360.395:

(a) No refund of the excise tax imposed by section 127 of this act may be allowed unless a claim for a refund is filed with the Department within 3 years after the last day of the month following the month for which the overpayment was made.

(b) No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for a credit is filed with the Department within that period.

2.

Each claim must be in writing and must state the specific grounds upon which the claim is founded.

3.

The failure to file a claim within the time prescribed in subsection 1 constitutes a waiver of any demand against the State on account of any overpayment.

Sec.

1.(Deleted by amendment.) Sec.

Except as otherwise provided in subsection 2, NRS 360.320 or any other specific statute, interest must be paid upon any overpayment of the excise tax imposed by section 127 of this act at the rate set forth in, and in accordance with the provisions of, NRS 360.2937.

2.

If the Department determines that any overpayment has been made intentionally or by reason of carelessness, the Department shall not allow any interest on the overpayment.

Sec.

1.(Deleted by amendment.) Sec.

Within 30 days after rejecting a claim for a refund or credit, in whole or in part, the Department shall serve written notice of its action on the claimant in the manner prescribed for service of a notice of deficiency determination.

Within 30 days after the date of service of the notice, a claimant who is aggrieved by the action of the Department may file an appeal with the Nevada Tax Commission.

2.

If the Department fails to serve notice of its action on a claim for a refund or credit within 6 months after the claim is filed, the claimant may consider the claim to be disallowed and file an appeal with the Nevada Tax Commission within 30 days after the last day of the 6-month period.

3.

The final decision of the Nevada Tax Commission on an appeal is a final decision for the purposes of judicial review pursuant to chapter 233B of NRS.

Sec.

1.(Deleted by amendment.) Sec.

A proceeding for judicial review of a decision of the Nevada Tax Commission may not be commenced or maintained by an assignee of the claimant or by any other person other than the person who paid the amount at issue in the claim.

- *SB346* – 44 – 2.

The failure of a claimant to file a timely petition for judicial review constitutes a waiver of any demand against the State on account of any overpayment.

Sec.

1.(Deleted by amendment.) Sec.

If judgment is rendered for the claimant in a proceeding for judicial review, any amount found by the court to have been erroneously or illegally collected must first be credited to any tax due from the claimant.

The balance of the amount must be refunded to the claimant.

2.

In any such judgment, interest must be allowed at the rate of 3 percent per annum upon any amount found to have been erroneously or illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment, or to a date preceding the date of the refund warrant by not more than 30 days.

The date must be determined by the Department.

Sec.

1.(Deleted by amendment.) Sec.

No injunction, writ of mandate or other legal or equitable process may issue in any suit, action or proceeding in any court against this State or against any officer of the State to prevent or enjoin the collection of the excise tax imposed by section 127 of this act or any amount of tax, penalty or interest required to be collected.

2.

No suit or proceeding, including, without limitation, a proceeding for judicial review, may be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for a refund or credit has been filed within the time prescribed in section 131 of this act.

Sec.

1.(Deleted by amendment.) Sec.

A person shall not, with intent to defraud the State or evade payment of the excise tax imposed by section 127 of this act or any part of the tax:

(a) Make, cause to be made or permit to be made any false or fraudulent return or declaration or false statement in any return or declaration.

(b) Make, cause to be made or permit to be made any false entry in books, records or accounts.

(c) Keep, cause to be kept or permit to be kept more than one set of books, records or accounts.

2.

Any person who violates the provisions of subsection 1 is guilty of a gross misdemeanor.

Sec.

The(Deleted remedies of the State provided for in this chapter are cumulative, and no action taken by theamendment.) DepartmentSec. or the Attorney General constitutes an election by the State to pursue any remedy to the exclusion of any other remedy for which provision is made in those sections.

- *SB346* – 45 – Sec.

Except as otherwise provided in this section, NRS 360.320 or any other specific statute, and notwithstanding the provisions of NRS 360.2935, interest must be paid upon an overpayment of any tax provided for in chapter 362, 363A, 363B, 363C, 369, 370, 372, 372B, 374, 377, 377A, 377C or 377D of NRS [,] or sections 2 to 117, inclusive, or 119 to 138, inclusive, of this act, any of the taxes provided for in NRS 372A.290, any fee provided for in NRS 444A.090 or 482.313, or any assessment provided for in NRS 585.497, at the rate of 0.25 percent per month from the last day of the calendar month following the period for which the overpayment was made.

- *SB346_R1* – 42 – (a) In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if the person has not already filed a claim, is notified by the Department that a claim may be filed or the date upon which the claim is certified to the State Board of Examiners, whichever is earlier.

- *SB346* – 46 – Sec.

If a person fails to file a return or the Department is not satisfied with the return or returns of any tax, contribution or premium or amount of tax, contribution or premium required to be paid to the State by any person, in accordance with the applicable provisions of this chapter, chapter 360B, 362, 363A, 363B, 363C, 369, 370, 372, 372A, 372B, 374, 377, 377A, 377C, 377D or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS [,] or sections 2 to 117, inclusive, or 119 to 138, inclusive, of this act, as administered or audited by the Department, it may compute and determine the amount required to be paid upon the basis of:

360.417 Except as otherwise provided in NRS 360.232 and 360.320, and unless a different penalty or rate of interest is specifically provided by statute, any person who fails to pay any tax provided for in chapter 362, 363A, 363B, 363C, 369, 370, 372, 372B, 374, 377, 377A, 377C, 377D, 444A or 585 of NRS [,] or sections- 2*SB346_R1* to– 117,43 inclusive,– orsections 1192 to 138,117, inclusive, of this act, any of the taxes provided for in NRS 372A.290, or any fee provided for in NRS 482.313, and any person or governmental entity that fails to pay any fee provided for in NRS 360.787, to the State or a county within the time required, shall pay a penalty of not more than 10 percent of the amount of the tax or fee which is owed, as determined by the Department, in addition to the tax or fee, plus interest at the rate of 0.75 percent per month, or fraction of a month, from the last day of the month following the period for which the amount or any - *SB346* – 47 – portion of the amount should have been reported until the date of payment.

Every person notified by a demand to transmit shall, within 10 days after receipt of the demand to transmit, inform the Department of and transmit to the Department all such credits, other - *SB346_R1* – 44 – personal property or debts in his or her possession, under his or her control or owing by that person within the time and in the manner requested by the Department.

If the property of the delinquent taxpayer consists of a series of payments owed to him or her, the person who owes or controls the payments shall transmit the payments to the Department until - *SB346* – 48 – otherwise notified by the Department.

If any person notified by the notice of the delinquency makes any transfer or other disposition of the property or debts required to be withheld or transmitted, to the extent of the value of the property or the amount of the debts thus transferred or paid, that person is liable to the State for any indebtedness due pursuant to this chapter, chapter 360B, 362, 363A, 363B, 363C, 369, 370, 372, 372A, 372B, 374, 377, 377A, 377C, 377D or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS or sections 2 to 117, inclusive, or 119 to 138, inclusive, of this act from the person with respect to whose obligation the notice was given if solely by reason of the transfer or other disposition the State is unable to recover the indebtedness of the person with respect to whose obligation the notice was given.

- *SB346_R1* – 45 – Sec.

- *SB346* – 49 – Sec.

If any person or other entity, except a state which is a member of the Agreement or any person or other entity who is entitled to such information pursuant to any state law or the Agreement, requests any personally identifiable information maintained by the Department, the Department shall make a - *SB346_R1* – 46 – reasonable and timely effort to notify any person who is identified by the requested information.

- *SB346* – 50 – 6.

or (b) A consumer of tangible personal property or specified digital products who deals with a registered seller that elects to use a certified service provider as its agent to perform all the functions of the seller relating to sales and use taxes, other than the obligation of the seller to remit the taxes on its own purchases.purchases.han the obligation Sec.

Sec.

The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requSec.requirement to submit a report to the Legislature.

Sec.

NRS 360B.483 is hereby repealed.ure.repealed.

“Specified digital products” means electronically transferred digitaldigi2.l audioAs works,used digitalin audiovisualthis section:iovisual works and digital books.

2.(a) “Digital audio works” means works that result from the fixation of a series of musical, spoken or other sounds, including ringtones.

As(b) used“Digital audiovisual works” means a series of related images which, when shown in thissuccession, section:impart an impression of motion, together with accompanying sounds, if any.

(a) “Digital audio works” means works that result from the fixation of a series of musical, spoken or other sounds, including ring(b) “Digital audiovisual works” means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.

(e)- “Ringtones”*SB346_R1* means– digitized47 sound– files that are downloaded onto a device and may be used to alert the customer with respect to a communication.

H - *SB346**SB346_R1*