Nevada: Sales Tax Handbook

Nevada:

Are Optional Maintenance Contracts subject to sales tax?

While Nevada's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in Nevada, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Nevada.

General Optional Maintenance Contracts

EXEMPT

In the state of Nevada, the agreement is required to be billed separately. The value of property transferred in connection with the agreement must not exceed 51% of the original cost of the agreement.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts

TAXABLE

Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Nevada.

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