Senate forwards Internet sales tax bill to Assembly

CARSON CITY — The Nevada Senate on Tuesday unanimously approved a bill intended to capture more sales tax from out-of-state retailers.

Senate Bill 382 would enact provisions used by other states to broaden the definition of when an outside retailer has an in-state presence and is required to collect the tax.

Senate Minority Leader Aaron Ford and state Sen. Ruben Kihuen, both Las Vegas Democrats, were key sponsors of the bill, which now moves to the Assembly.

When Nevadans buy from out-of-state vendors that do not automatically collect sales tax, they are supposed to remit the tax directly to the Department of Taxation, though that is rarely done.

Supporters of the bill argue Nevada small businesses are penalized when consumers window shop in their stores, and then buy identical items online from out-of-state companies to avoid paying sales tax.

During an earlier hearing in the Senate Revenue Committee, Ford said e-commerce accounted for $263 billion in national sales in 2013, and much of it went untaxed.

The bill would expand the umbrella of what constitutes a presence in the state to companies and any affiliates that engage in retail activities.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.