Sales Tax State Activity Update - October 2004

Nevada Amends Lease Fee Rule for Short Term Loaner Vehicles

Chapter 482 of the Nevada Admistrative Code governing the collection of fees for loaner vehicles has been amended. According to the amended rule, lessors of loaner vehicles are not required to collect any fees, if the short-term lessor includes in the lease an acknowledgment as follows:

“I understand and acknowledge that if I am renting this vehicle for the purpose of using it in place of a motor vehicle I own that is unavailable for use because of mechanical breakdown, repair, service, damage or loss as defined in my policy of liability insurance for that unavailable motor vehicle, I may claim an exemption from the county fee imposed pursuant to chapter 244A of the Nevada Revised Statutes upon the short-term lease of a passenger vehicle.

I understand and acknowledge that by placing my initials below, I am affirming that I am in fact renting this vehicle for the purpose of using it in place of a motor vehicle I own that is unavailable for use as described above.

I further understand and acknowledge that if I place my initials below and I am not in fact renting this vehicle for the purpose of using it in place of a motor vehicle I own that is unavailable for use as described above, I may be held liable for any fee that is waived or refunded to me by virtue of my having placed my initials below. _________ (initials) “

A short-term lessor of the loaner vehicle, obtaining the initials of a short-term lessee on the acknowledgment form is not required to collect from the short-term lessee any fees imposed by a county pursuant to NRS 244A.810 or 244A.860 upon any lease to which the acknowledgment applies.

The rule is available at: http://www.leg.state.nv.us/nac/nac%2D482.html#NAC482Sec290 (NRS 482.313 {Chapter NAC 482.290} Amended 05/12/04)

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