Proposes to exempt from sales and use taxes the amount of any allowance against the selling price given by a retailer for the value of a used portable electronic taken in trade on the purchase of another portable electronic. (BDR 32-565)

EXEMPT
(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT A.B. 403

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ASSEMBLY BILL NO. 403–ASSEMBLYMEMBER TORRES-FOSSETT

MARCH 11, 2025
____________

Referred to Committee on Revenue

SUMMARY—Proposes to exempt from sales and use taxes the
amount of any allowance against the selling price
given by a retailer for the value of a used portable
electronic taken in trade on the purchase of another
portable electronic. (BDR 32-565)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to taxes on retail sales; providing for the
submission to the voters of the question of whether the
Sales and Use Tax Act of 1955 should be amended to
exempt from the taxes the amount of any allowance
against the selling price given by a retailer for the value of
a used portable electronic taken in trade on the purchase
of another portable electronic und er certain
circumstances; providing for the same exemption from
certain analogous taxes if the voters approve this
amendment to the Sales and Use Tax Act of 1955; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
The nonadministrative provisions of the Sales and Use Tax Act of 1955 (part of 1
chapter 372 of NRS) were approved by the voters by a referendum and therefore 2
may not be amended, annulled, repealed, set aside, suspended or in any way made 3
inoperative except by the direct vote of the people. (Nev. Const. Art. 19, § 1) 4
Sections 2-9 of this bill require the submission of a question to the voters at the 5
2026 General Election of whether the Sales and Use Tax Act of 1955 should be 6
amended to provide an exemption for the amount of any allowance against the 7
selling price given by a retailer for the value of a used portable electronic taken in 8
trade on the purchase of another portable electronic, if the amount of the allowance 9
is known and provided in full to the customer at the time of purchase and stated on 10
the sales receipt and the trade -in and purchase occur as part of a single, 11
contemporaneous transaction. Sections 10-13 of this bill amend the Local School 12
Support Tax Law (chapter 374 of NRS) to provide an identical exe mption. These 13

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tax exemptions become effective on January 1, 2027, and expire by limitation on 14
December 31, 2050, only if the voters approve the amendment to the Sales and Use 15
Tax Act of 1955 at the General Election in 2026. 16
Any amendment to the Local Scho ol Support Tax Law also applies to other 17
sales and use taxes imposed under existing law. (NRS 354.705, 374A.020, 18
376A.060, 377.040, 377A.030, 377B.110, 543.600 and various special and local 19
acts) Therefore, if the voters approve the exemption proposed by t his bill, from 20
January 1, 2027, through December 31, 2050, the exemption will apply to all sales 21
and use taxes currently contemplated under existing law. 22

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

Section 1. The Legislature hereby finds that each exemption 1
provided by this act from any excise tax on the sale, storage, use or 2
consumption of tangible personal property sold at retail: 3
1. Will achieve a bona fide social or economic purpose and that 4
the benefits of the exemption are expected to exceed any adverse 5
effect of the exemption on the provision of services to the public by 6
the State or a local government that would otherwise receive 7
revenue from the tax from which the exemption would be granted; 8
and 9
2. Will not impair adversely the ability of the State or a local 10
government to pay, when due, all interest and principal on any 11
outstanding bonds or any other obligations for which revenue from 12
the tax from which the exemption would be granted was pledged. 13
Sec. 2. At the General Election on November 3, 2026, a 14
proposal must be submitted to the registered voters of this State to 15
amend the Sales and Use Tax Act, which was enacted by the 47th 16
Session of the Legislature of the State of Nevada and approved by 17
the Governor in 1955, and subsequently approved by the people of 18
this State at the General Election held on November 6, 1956. 19
Sec. 3. At the time and in the manner provided by law, the 20
Secretary of State shall t ransmit the proposed act to the several 21
county clerks, and the county clerks shall cause it to be published 22
and posted as provided by law. 23
Sec. 4. The proclamation and notice to the voters given by the 24
county clerks pursuant to law must be in substantially the following 25
form: 26
Notice is hereby given that at the General Election on 27
November 3, 2026, a question will appear on the ballot for the 28
adoption or rejection by the registered voters of the State of the 29
following proposed act: 30
AN ACT to amend an Act entitled “An Act to provide 31
revenue for the State of Nevada; providing for sales 32
and use taxes; providing for the manner of collection; 33

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defining certain terms; providing penalties for 1
violation, and other matters properly rel ating thereto.” 2
approved March 29, 1955, as amended. 3
4
THE PEOPLE OF THE STATE OF NEVADA 5
DO ENACT AS FOLLOWS: 6
7
Section 1. The above entitled Act, being chapter 397, 8
Statutes of Nevada 1955, at page 762, is hereby amended by 9
adding thereto a new section to be designated as section 18.3, 10
immediately following section 18.2, to read as follows: 11
Sec. 18.3 “Portable electronic” means an electronic 12
device that is portable in nature and its accessories. 13
Sec. 2. Section 11 of the above -entitled Act, being 14
chapter 397, Statutes of Nevada 1955, at page 764, and 15
amended by chapter 400, Statutes of Nevada 2003, at page 16
2397, and amended by chapter 484, Statutes of Nevada 2005, 17
at page 2493, is hereby amended to read as follows: 18
Sec. 11. 1. “Sales price” means th e total amount 19
for which tangible property is sold, valued in money, 20
whether paid in money or otherwise, without any 21
deduction on account of any of the following: 22
(a) The cost of the property sold. 23
(b) The cost of materials used, labor or service cost, 24
interest charged, losses, or any other expenses. 25
(c) The cost of transportation of the property before its 26
purchase. 27
2. The total amount for which property is sold 28
includes all of the following: 29
(a) Any services that are a part of the sale. 30
(b) Any amo unt for which credit is given to the 31
purchaser by the seller. 32
3. “Sales price” does not include any of the 33
following: 34
(a) Cash discounts allowed and taken on sales. 35
(b) The amount charged for property returned by 36
customers when the entire amount charged therefor is 37
refunded either in cash or credit, except that this exclusion 38
does not apply in any instance when the customer, in order 39
to obtain the refund, is required to purchase other property 40
at a price greater than the amount charged for the pro perty 41
that is returned. 42
(c) The amount charged for labor or services rendered 43
in installing or applying the property sold. 44

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(d) The amount of any tax, not including any 1
manufacturers’ or importers’ excise tax, imposed by the 2
United States upon or with res pect to retail sales, whether 3
imposed upon the retailer or consumer. 4
(e) The amount of any allowance against the selling 5
price given by a retailer for the value of a used vehicle 6
which is taken in trade on the purchase of another vehicle. 7
(f) The amount of any allowance against the selling 8
price given by a retailer for the value of a used portable 9
electronic which is taken in trade on the purchase of 10
another portable electronic if: 11
(1) The amount of the allowance is known and 12
provided in full to the customer at the time of the 13
purchase; 14
(2) The amount of the allowance is stated 15
separately on the sales receipt; and 16
(3) The trade -in of the used portable electronic 17
and the purchase of another portable electronic occur as 18
part of a single, contemporaneous transaction. 19
Sec. 3. Section 12 of the above entitled Act, being 20
chapter 397, Statutes of Nevada 1955, at page 764, and 21
amended by chapter 400, Statutes of Nevada 2003, at page 22
2398, and amended by chapter 484, Statutes of Nevada 2005, 23
at page 2494, is hereby amended to read as follows: 24
Sec. 12. 1. “Gross receipts” means the total 25
amount of the sale or lease or rental price, as the case may 26
be, of the retail sales of retailers, valued in money, 27
whether received in money or otherwise, wi thout any 28
deduction on account of any of the following: 29
(a) The cost of the property sold. However, in 30
accordance with such rules and regulations as the Tax 31
Commission may prescribe, a deduction may be taken if 32
the retailer has purchased property for some other purpose 33
than resale, has reimbursed his vendor for tax which the 34
vendor is required to pay to the State or has paid the use 35
tax with respect to the property, and has resold the 36
property before making any use of the property other than 37
retention, dem onstration or display while holding it for 38
sale in the regular course of business. If such a deduction 39
is taken by the retailer, no refund or credit will be allowed 40
to his vendor with respect to the sale of the property. 41
(b) The cost of the materials used , labor or service 42
cost, interest paid, losses or any other expense. 43
(c) The cost of transportation of the property before its 44
sale to the purchaser. 45

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2. The total amount of the sale or lease or rental price 1
includes all of the following: 2
(a) Any services that are a part of the sale. 3
(b) All receipts, cash, credits and property of any kind. 4
(c) Any amount for which credit is allowed by the 5
seller to the purchaser. 6
3. “Gross receipts” does not include any of the 7
following: 8
(a) Cash discounts allowed and taken on sales. 9
(b) The sale price of property returned by customers 10
when the full sale price is refunded either in cash or credit, 11
but this exclusion does not apply in any instance when the 12
customer, in order to obtain the refund, is required to 13
purchase other property at a price greater than the amount 14
charged for the property that is returned. 15
(c) The price received for labor or services used in 16
installing or applying the property sold. 17
(d) The amount of any tax, not including any 18
manufacturers’ o r importers’ excise tax, imposed by the 19
United States upon or with respect to retail sales, whether 20
imposed upon the retailer or the consumer. 21
(e) The amount of any allowance against the selling 22
price given by a retailer for the value of a used vehicle 23
which is taken in trade on the purchase of another vehicle. 24
(f) The amount of any allowance against the selling 25
price given by a retailer for the value of a used portable 26
electronic which is taken in trade on the purchase of 27
another portable electronic if: 28
(1) The amount of the allowance is known and 29
provided in full to the customer at the time of the 30
purchase; 31
(2) The amount of the allowance is stated 32
separately on the sales receipt; and 33
(3) The trade -in of the used portable electronic 34
and the purchase of another portable electronic occur as 35
part of a single, contemporaneous transaction. 36
4. For purposes of the sales tax, if the retailers 37
establish to the satisfaction of the Tax Commission that 38
the sales tax has been added to the total amount of the sale 39
price and has not been absorbed by them, the total amount 40
of the sale price shall be deemed to be the amount 41
received exclusive of the tax imposed. 42
Sec. 4. This act becomes effective on January 1, 2027, 43
and expires by limitation on December 31, 2050. 44

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Sec. 5. The ballot page assemblies and the paper ballots to be 1
used in voting on the question must present the question in 2
substantially the following form: 3
Shall the Sales and Use Tax Act of 1955 be amended to 4
exempt from the taxes imposed by this Act on the gross 5
receipts from the sale and the storage, use or other 6
consumption of tangible personal property, the amount of any 7
allowance against the selling pri ce given by a retailer for the 8
value of a used portable electronic taken in trade on the 9
purchase of another portable electronic? 10
Yes  No  11
Sec. 6. The explanation of the question which must appear on 12
each paper ballot and sample ballot and in every publication and 13
posting of notice of the question must be in substantially the 14
following form: 15
16
(Explanation of Question) 17
The proposed amendment to the Sales and Use Tax Act of 18
1955 would exempt from the taxes imposed by thi s Act on 19
the gross receipts from the sale and the storage, use or other 20
consumption of tangible personal property, the amount of any 21
allowance against the selling price given by a retailer for the 22
value of a used portable electronic taken in trade on the 23
purchase of another portable electronic if the amount of 24
the allowance is known and provided in full to the customer 25
at the time of purchase and stated on the sales receipt and the 26
trade-in and purchase occur as part of a single, 27
contemporaneous transaction. If this proposal is adopted, the 28
Legislature has provided that the Local School Support Tax 29
Law and certain analogous taxes on retail sales will be 30
amended to provide the same exemption. 31
Sec. 7. If a majority of the vote s cast on the question is yes, 32
the amendment to the Sales and Use Tax Act of 1955 becomes 33
effective on January 1, 2027, and expires by limitation on 34
December 31, 2050. If less than a majority of votes cast on the 35
question is yes, the question fails and th e amendment to the Sales 36
and Use Tax Act of 1955 does not become effective. 37
Sec. 8. All general election laws not inconsistent with this act 38
are applicable. 39
Sec. 9. Any informalities, omissi ons or defects in the content 40
or making of the publications, proclamations or notices provided for 41
in this act and by the general election laws under which this election 42
is held must be so construed as not to invalidate the adoption of the 43
act by a majority of the registered voters voting on the question if it 44

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can be ascertained with reasonable certainty from the official returns 1
transmitted to the Office of the Secretary of State whether the 2
proposed amendment was adopted by a majority of those registered 3
voters. 4
Sec. 10. Chapter 374 of NRS is hereby amended by adding 5
thereto a new section to read as follows: 6
“Portable electronic” means an electronic device that is 7
portable in nature and its accessories. 8
Sec. 11. NRS 374.020 is hereby amended to read as follows: 9
374.020 As used in this chapter, unless the context otherwise 10
requires, the words and terms defined in NRS 374.025 to 374.108, 11
inclusive, and section 10 of this act have the meanings ascribed to 12
them in those sections. 13
Sec. 12. NRS 374.030 is hereby amended to read as follows: 14
374.030 1. “Gross receipts” means the total amount of the 15
sale or lease or rental price, as the case may be, of the retail sales of 16
retailers, valued in money, whether received in money or otherwise, 17
without any deduction on account of any of the following: 18
(a) The cost of the property sold. However, in accordance with 19
such rules and regulations as the Departmen t may prescribe, a 20
deduction may be taken if the retailer has purchased property for 21
some other purpose than resale, has reimbursed his or her vendor for 22
tax which the vendor is required to pay to the county or has paid the 23
use tax with respect to the prop erty, and has resold the property 24
before making any use of the property other than retention, 25
demonstration or display while holding it for sale in the regular 26
course of business. If such a deduction is taken by the retailer, no 27
refund or credit will be al lowed to his or her vendor with respect to 28
the sale of the property. 29
(b) The cost of the materials used, labor or service cost, interest 30
paid, losses or any other expense. 31
(c) The cost of transportation of the property before its sale to 32
the purchaser. 33
2. The total amount of the sale or lease or rental price includes 34
all of the following: 35
(a) Any services that are a part of the sale. 36
(b) All receipts, cash, credits and property of any kind. 37
(c) Any amount for which credit is allowed by the seller to the 38
purchaser. 39
3. “Gross receipts” does not include any of the following: 40
(a) Cash discounts allowed and taken on sales. 41
(b) The sale price of property returned by customers when the 42
full sale price is refunded either in cash or credit, but this exclusion 43
does not apply in any instance when the customer, in order to obtain 44

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the refund, is required to purchase other property at a price greater 1
than the amount charged for the property that is returned. 2
(c) The price received for labor or services used in installing or 3
applying the property sold. 4
(d) The amount of any tax, not including any manufacturers’ or 5
importers’ excise tax, imposed by the United States upon or with 6
respect to retail sales, whether imposed upon the retailer or the 7
consumer. 8
(e) The amount of any allowance against the selling price given 9
by a retailer for the value of a used vehicle which is taken in trade 10
on the purchase of another vehicle. 11
(f) The amount of any allowance against the selling price 12
given by a retailer for the value of a used portable electronic 13
which is taken in trade on the purchase of another portable 14
electronic if: 15
(1) The amount of the a llowance is known and provided in 16
full to the customer at the time of the purchase; 17
(2) The amount of the allowance is stated separately on the 18
sales receipt; and 19
(3) The trade -in of the used portable electronic and the 20
purchase of another portable ele ctronic occur as part of a single, 21
contemporaneous transaction. 22
4. For purposes of the sales tax, if the retailers establish to the 23
satisfaction of the Department that the sales tax has been added to 24
the total amount of the sale price and has not been ab sorbed by 25
them, the total amount of the sale price shall be deemed to be the 26
amount received exclusive of the tax imposed. 27
Sec. 13. NRS 374.070 is hereby amended to read as follows: 28
374.070 1. “Sales price” means the total amount for which 29
tangible property is sold, valued in money, whether paid in money 30
or otherwise, without any deduction on account of any of the 31
following: 32
(a) The cost of the property sold. 33
(b) The cost of the materials used, labor or service cost, interest 34
charged, losses, or any other expenses. 35
(c) The cost of transportation of the property before its purchase. 36
2. The total amount for which property is sold includes all of 37
the following: 38
(a) Any services that are a part of the sale. 39
(b) Any amount for which credit is given to the purchaser by the 40
seller. 41
3. “Sales price” does not include any of the following: 42
(a) Cash discounts allowed and taken on sales. 43
(b) The amount charged for property returned by customers 44
when the entire amount charged therefor is refunded in cash or 45

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credit, except that this exclusion does not apply in any instance 1
when the customer, in order to obtain the refund, is required to 2
purchase other property at a price greater than the amount charged 3
for the property that is returned. 4
(c) The amount charged for labor or services rendered in 5
installing or applying the property sold. 6
(d) The amount of any tax, not including any manufacturers’ o r 7
importers’ excise tax, imposed by the United States upon or with 8
respect to retail sales, whether imposed upon the retailer or the 9
consumer. 10
(e) The amount of any tax imposed by the State of Nevada upon 11
or with respect to the storage, use or other consu mption of tangible 12
personal property purchased from any retailer. 13
(f) The amount of any allowance against the selling price given 14
by a retailer for the value of a used vehicle or vessel which is taken 15
in trade on the purchase of another vehicle or vessel. 16
(g) The amount of any allowance against the selling price 17
given by a retailer for the value of a used portable electronic 18
which is taken in trade on the purchase of another portable 19
electronic if: 20
(1) The amount of the allowance is known and provided i n 21
full to the customer at the time of the purchase; 22
(2) The amount of the allowance is stated separately on the 23
sales receipt; and 24
(3) The trade -in of the used portable electronic and the 25
purchase of another portable electronic occur as part of a single, 26
contemporaneous transaction. 27
Sec. 14. 1. This section and sections 1 to 9, inclusive, of this 28
act become effective on October 1, 2025. 29
2. Sections 10 to 13, inclusive, of this act become effective on 30
January 1, 2 027, and expire by limitation on December 31, 2050, 31
only if the proposal submitted pursuant to sections 2 to 9, inclusive, 32
of this act is approved by the voters at the General Election on 33
November 3, 2026. 34

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