Section 372.367 - Property purchased for use as prize in raffle, contest or game of chance1. A person who purchases tangible personal property for the purpose of awarding the property as a prize to the winner of a raffle, contest or game of chance is considered to be the purchaser or consumer of that property for purposes of the sales or use tax. Except as otherwise provided in subsection 2, that person shall: (a) Pay sales tax to the retailer; or(b) If the property is acquired from a retailer outside this State who is not registered to collect sales and use tax for the State of Nevada, remit use tax to the Department at the time of purchase.2. A retailer holding a Nevada seller's permit who is informed by the purchaser that the tangible personal property is being purchased for the purpose of awarding it as a prize to the winner of a raffle, contest or game of chance may collect the sales tax from the winner of the prize in lieu of the purchaser if: (a) The retailer and the purchaser agree by contract that the retailer will retain title, possession and risk of loss of the property until the prize is awarded;(b) The winner of the prize takes possession of and title to the property at the retailer's place of business; and(c) The rules of the raffle, contest or game of chance state prominently and specifically that the winner of the raffle, contest or game of chance will be required to pay Nevada sales tax upon receipt of the property given as the prize.3. A retailer who collects sales tax from the winner of a prize pursuant to subsection 2 must base the amount of the tax collected upon the sales price of the property to the purchaser, regardless of whether a sale of the prize to the winner would be exempt from the tax. If the winner of the prize elects to substitute another item of tangible personal property which is offered for sale by the retailer, the tax due will be calculated on the basis of the higher priced item.Nev. Admin. Code § 372.367
Added to NAC by Tax Comm'n, eff. 8-23-96