Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
(h) CREDIT FOR TAX IMPOSED BY OTHER JURISDICTIONS
570.1617 Credit for Previous Transactions. A Nevada business made sales in Nevada to California consumers. It collected California use tax and remitted it to the Board. The state of Nevada later imposed a sales tax on the same transactions. The business may not take a credit for Nevada sales tax on these past sales against California use tax on future transactions. Under section 6406, credit for Nevada tax can only be taken by a purchaser.
For convenience purposes, a Nevada retailer who is required to collect the California use tax may take the credit, but only on the same transaction for which the California use tax was collected. Under these circumstances, the conditions of section 6406 are met in that the purchaser pays the Nevada tax reimbursement and gets the benefit of the credit against the California use tax with respect to the particular property that is sold. 8/25/69.