1. 1. For the purpose of the proper administration of this chapter and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property sold by any person for delivery in this State is sold for storage, use or other consumption in this State until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless the person takes from the purchaser a certificate to the effect that the property is purchased for resale and the purchaser:

   1. (a) Is engaged in the business of selling tangible personal property;
   2. (b) Is registered pursuant to NRS 360B.200 or holds a permit issued pursuant to NRS 360.5973; and
   3. (c) At the time of purchasing the property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

2. 2. If a sale of tangible personal property is transacted by drop shipment, the third-party vendor is relieved of the burden of proving that the property is sold for storage, use or other consumption in this State if:

   1. (a) The third-party vendor:

      1. (1) Takes from his or her customer a certificate to the effect that the property is purchased for resale; or
      2. (2) Obtains any other evidence acceptable to the Department that the property is purchased for resale; and

   2. (b) His or her customer:

      1. (1) Is engaged in the business of selling tangible personal property; and
      2. (2) Is selling the property in the regular course of business.

(Added to NRS by 1979, 414; A 2007, 2311; 2011, 2756; 2021, 2010)