42-5001

42-5001. Definitions

In this article and article 2 of this chapter, unless the context otherwise
requires:

1. "Business" includes all activities or acts, personal or corporate, engaged in or
caused to be engaged in with the object of gain, benefit or advantage, either directly or
indirectly, but not casual activities or sales.

2. "Distribution base" means the portion of the revenues derived from the tax
levied by this article and articles 5 and 8 of this chapter designated for distribution
to counties, municipalities and other purposes according to section 42-5029, subsection
D.

3. "Engaging", when used with reference to engaging or continuing in business,
includes the exercise of corporate or franchise powers.

4. "Gross income" means the gross receipts of a taxpayer derived from trade,
business, commerce or sales and the value proceeding or accruing from the sale of
tangible personal property or service, or both, and without any deduction on account of
losses.

5. "Gross proceeds of sales" means the value proceeding or accruing from the sale
of tangible personal property without any deduction on account of the cost of property
sold, expense of any kind or losses, but cash discounts allowed and taken on sales are
not included as gross income.

6. "Gross income" and "gross proceeds of sales" do not include goods, wares or
merchandise, or value thereof, returned by customers if the sale price is refunded either
in cash or by credit, nor the value of merchandise traded in on the purchase of new
merchandise when the trade-in allowance is deducted from the sales price of the new
merchandise before completion of the sale.

7. "Gross receipts" means the total amount of the sale, lease or rental price, as
the case may be, of the retail sales of retailers, including any services that are a part
of the sales, valued in money, whether received in money or otherwise, including all
receipts, cash, credits and property of every kind or nature, and any amount for which
credit is allowed by the seller to the purchaser without any deduction from the amount on
account of the cost of the property sold, materials used, labor or service performed,
interest paid, losses or any other expense. Gross receipts do not include cash discounts
allowed and taken nor the sale price of property returned by customers if the full sale
price is refunded either in cash or by credit.

8. "Person" or "company" includes an individual, firm, partnership, joint venture,
association, corporation, estate or trust, this state, any county, city, town, district,
other than a school district, or other political subdivision and any other group or
combination acting as a unit, and the plural as well as the singular number.

9. "Qualifying community health center":

(a) Means an entity that is recognized as nonprofit under section 501(c)(3) of the
United States internal revenue code, that is a community-based, primary care clinic that
has a community-based board of directors and that is either:

(i) The sole provider of primary care in the community.

(ii) A nonhospital affiliated clinic that is located in a federally designated
medically underserved area in this state.

(b) Includes clinics that are being constructed as qualifying community health
centers.

10. "Qualifying health care organization" means an entity that is recognized as
nonprofit under section 501(c) of the United States internal revenue code and that uses,
saves or invests at least eighty per cent of all monies that it receives from all sources
each year only for health and medical related educational and charitable services, as
documented by annual financial audits prepared by an independent certified public
accountant, performed according to generally accepted accounting standards and filed
annually with the department. Monies that are used, saved or invested to lease, purchase
or construct a facility for health and medical related education and charitable services
are included in the eighty per cent requirement.

11. "Qualifying hospital" means any of the following:

(a) A licensed hospital which is organized and operated exclusively for charitable
purposes, no part of the net earnings of which inures to the benefit of any private
shareholder or individual.

(b) A licensed nursing care institution or a licensed residential care institution
or a residential care facility operated in conjunction with a licensed nursing care
institution or a licensed kidney dialysis center, which provides medical services,
nursing services or health related services and is not used or held for profit.

(c) A hospital, nursing care institution or residential care institution which is
operated by the federal government, this state or a political subdivision of this state.

(d) A facility that is under construction and that on completion will be a facility
under subdivision (a), (b) or (c) of this paragraph.

12. "Retailer" includes every person engaged in the business classified under the
retail classification pursuant to section 42-5061 and, when in the opinion of the
department it is necessary for the efficient administration of this article, includes
dealers, distributors, supervisors, employers and salesmen, representatives, peddlers or
canvassers as the agents of the dealers, distributors, supervisors or employers under
whom they operate or from whom they obtain the tangible personal property sold by them,
whether in making sales on their own behalf or on behalf of the dealers, distributors,
supervisors or employers.

13. "Sale" means any transfer of title or possession, or both, exchange, barter,
lease or rental, conditional or otherwise, in any manner or by any means whatever,
including consignment transactions and auctions, of tangible personal property or other
activities taxable under this chapter, for a consideration, and includes:

(a) Any transaction by which the possession of property is transferred but the
seller retains the title as security for the payment of the price.

(b) Fabricating tangible personal property for consumers who furnish either
directly or indirectly the materials used in the fabrication work.

(c) Furnishing, preparing or serving for a consideration any tangible personal
property consumed on the premises of the person furnishing, preparing or serving the
tangible personal property.

14. "Solar daylighting" means a device that is specifically designed to capture and
redirect the visible portion of the solar beam, while controlling the infrared portion,
for use in illuminating interior building spaces in lieu of artificial lighting.

15. "Solar energy device" means a system or series of mechanisms designed primarily
to provide heating, to provide cooling, to produce electrical power, to produce
mechanical power, to provide solar daylighting or to provide any combination of the
foregoing by means of collecting and transferring solar generated energy into such uses
either by active or passive means, including wind generator systems that produce
electricity. Solar energy systems may also have the capability of storing solar energy
for future use. Passive systems shall clearly be designed as a solar energy device, such
as a trombe wall, and not merely as a part of a normal structure, such as a window.

16. "Tangible personal property" means personal property which may be seen, weighed,
measured, felt or touched or is in any other manner perceptible to the senses.

17. "Tax year" or "taxable year" means either the calendar year or the taxpayer's
fiscal year, if permission is obtained from the department to use a fiscal year as the
tax period instead of the calendar year.

18. "Taxpayer" means any person who is liable for any tax which is imposed by this
article.

19. "Wholesaler" or "jobber" means any person who sells tangible personal property
for resale and not for consumption by the purchaser.