AB359

The nonadministrative provisions of the Sales and Use Tax Act of 1955 (part of chapter 372 of NRS) were approved by the voters by a referendum and therefore cannot be amended, annulled or repealed, set aside, suspended or in any way made inoperative except by the direct vote of the people. (Nev. Const. Art. 19, § 1) Existing regulations provide that sales tax applies to sales of coins or bullion at a premium price for purposes other than use as a medium of exchange. However, sales tax does not apply to such sales if the purpose of the use of the coins or bullion is as a medium of exchange, even if the sale is made at a premium. (NAC 372.170) Sections 2-9 of this bill require the submission of a question to the voters at the 2026 General Election of whether the Sales and Use Tax Act of 1955 should be amended to provide an exemption for coins, currency and bullion that are: (1) used solely as legal tender, security or commodity in this or another state, the United States or a foreign country; and (2) sold based primarily on their intrinsic value as precious material or collectible items rather than their representative value as a medium of exchange. Section 10 of this bill amends the Local School Support Tax Law to provide an identical exemption. This tax exemption becomes effective on January 1, 2027, and expires by limitation on December 1, 2050, only if the voters approve the amendment to the Sales and Use Tax Act of 1955 at the General Election in 2026. Any amendment t