The Governmental Services Fee is 6% up through 09/30/2009 and 10% from
10/01/09 and forward per NRS 482.313 Washoe and Clark County Car Rental
Fees are 2% per NRS 244A.810 and NRS 244A.860, upon the short term lease (31
days or less) of passenger vehicles commencing in this state.To see an example of
how a short-term lease may be calculated please click here.
Who is affected?
Any entity that holds a license as a short term lessor with the DMV.
What is a short term lessor?
A person who has leased a vehicle to another person for a period of 31
days or less, or by the day or by the trip and has been licensed pursuant to
NRS 482.363. (NRS 482.053)
What is the definition of a passenger car?
A passenger car is defined as a motor vehicle designed to carry 10
persons or less. Passenger car does not include motorcycle, power
cycles, motor driven cycles, motor trucks, or motor homes. (NRS 482.087,
482.071, & 482.073)
What is the governmental services fee to rent a passenger vehicle?
The fee charged and collected is 10 percent of
the amount for which the passenger vehicle was leased. The fee does not include
any fee or tax imposed by a governmental entity.
In charging and collecting the governmental services fee the following
items must not be included in the total amount for which the passenger
car was leased:
1. The amount of any fee charged and collected for the County
2. The amount of any charge for fuel used to operate the passenger
3. The amount of any fee or charge for the delivery, transportation
or other handling of the passenger car.
4. The amount of any fee or charge for insurance, including, without
limitation, personal accident insurance, extended coverage or insurance
coverage for personal property.
5. The amount of any charges assessed against a short-term lessee for
damages for which the short-term lessee is held responsible.
Is there a limit to the fees that can be charged for a Waiver of Damages or an Additional Driver?
Nevada Revised Statutes (NRS)
482.31565(2) limits the dollar amount a short-term lessor may charge for a
waiver of damages to $22. It also provides that this amount be adjusted
for each fiscal year that begins on or after July 1, 2008. This adjustment is done
using the Consumer Price Index West Urban for All Urban Consumers (All Items)
between the calendar year ending on December 31, 2005 and the calendar year
immediately preceding the fiscal year for which the adjustment is made.
NRS 482.3158(1) (f) also
requires that the maximum amount charged for an additional driver not exceed
$10 per driver. This amount is also adjusted annually.
The current fiscal year
calculations for these fees can be found here.
What is the recovery surcharge?
The recovery surcharge is a fee charged for the reimbursement of vehicle
licensing fees and taxes paid by the short term lessor. The recovery
surcharge was eliminated effective 10/1/2009. Prior to the latest
enactment date, several changes have affected this fee. The lessor is
advised to contact the Department of Taxation for clarification of the statutes
prior to 10/1/2009.
What are Vehicle Licensing Costs?
As of 10/1/2009, the short-term lessor is allowed to charge its customer
a fee to recover its vehicle licensing costs that have been paid by the
short-term lessor. Vehicle Licensing Fees are defined as:
Certificate of Title
License plate decals, stickers and tabs
Basic/supplemental government services taxes
The short-term lessor is required to make good faith estimates of its vehicle
licensing costs for each calendar year and the charge that must be imposed in
each lease to recover those costs.
What are the reporting requirements for the Vehicle Licensing Costs?
The short-term lessor is required to report on an annual basis to the
Department of Taxation the amount of its vehicle licensing costs for the
immediately preceding calendar year and the amount of money collected by the
short-term lessor for the recovery of its vehicle licensing costs. If the
estimate is over or under the actual costs, the short-term lessor is required
to adjust the estimate for the subsequent calendar year.
What is the 2% county return fee?
Effective April 1, 2004 Washoe County Board of Commissioners
enacted a 2% County Car Rental Fee for the lease of passenger vehicles
commencing in Washoe County. NRS 244A.810 authorizes the county commissioners
whose population is 100,000 or more but less than 400,000, to impose a fee on
the lease of passenger car by a short-term lessor. This fee is by ordinance
only, and may only be up to 2% of the total amount for which the passenger car
Effective July 1, 2005 Clark County Board of Commissioners enacted a 2%
County Car Rental Fee for the lease of passenger vehicles commencing in Clark
County. NRS 244A.860 authorizes the county commissioners whose population is
400,000 or more to impose a fee on the lease of certain passenger cars by a
short-term lessor. This fee is by ordinance only, and may only be up to 2% of
the total amount for which the passenger car was leased.
The County Car Rental fee cannot be imposed on the rental of a replacement
vehicle, defined as
A vehicle that is rented temporarily to a person for
the purposes of repairs to that person's leased or owned vehicle.
A vehicle that is used by a person in place of a motor
vehicle owned by the person which is unavailable for use because of mechanical
breakdown, repair, service, damage or loss as defined
in the owner’s policy of liability insurance for the motor vehicle.
Short term lessors located in Washoe and/or Clark Counties must also file the
County Car Return and pay the County Car Return Fee to the Department on or
before the last day of the month following each calendar quarter.
The 2% fee is charged on everything but any Governmental
fee or tax (Example 10% Governmental Services fee, Sales tax or airport
What is subject to sales/use tax on the rental of passenger cars?
The lessor has the option when purchasing a passenger
car for lease/rental within Nevada to:
1. Pay the sales tax due in this state on the cost of the passenger car; or
2. Pay the sales tax on the gross lease or rental charges for the lease or
rental of the passenger car within this state
The lessor must make this election not later than the date upon which the first
tax return is due following the purchase of that property for lease. There is
no longer a form that is required to make this election.
If the lessor has chosen to pay sales tax on the cost of the passenger car,
there is no additional tax due and the lessor cannot collect tax from the
lessee on the gross lease or rental charge.
If the lessor has chosen to pay sales tax on the gross lease or rental charges
for the lease or rental of the passenger car then the lessor may seek
reimbursement from the lessee.
A lessor who elects to pay tax measured by the gross lease is not required to
pay the sales tax for the purchase of parts for the vehicle committed to lease
in this state if the lessor gives a re-sale certificate to the vendor.
Mandatory charges for any service, activity or function made in conjunction
with the lease are considered part of the gross lease or rental charges and are
subject to sales tax. This may include but are not limited to:
A fee or charge for mileage
A fee or charge for
return, commonly known as “drop off charge” (not to be confused with an airport
fee for the reinstatement of a lease
Optional charges, separately stated, made in conjunction with the lease are not
subject to sales tax. This may include but are not limited to:
Charge for collision damage waiver
Charges for insurance
Charges for Fuel
Charges for delivery, or other handling of the property
Lease or rental charges do not include:
A fee for access to an airport
Any late payment penalty
charges for the reimbursement of taxes
How should these items be listed on the lease/rental contract?
At the time the lease commences, the short-term lessor must provide the
lessee with a lease agreement which clearly discloses all charges for the
entire lease, excluding charges that cannot be determined at the time the lease
commences. At the time the short-term lessor provides a price quote or
estimate for the short-term lease of the passenger car, the lessor must
disclose the existence of any vehicle licensing costs and any other separately
stated additional charges.
What are short term lessors required to file with the Department of Taxation?
All short term lessors shall file a return and pay the governmental
services fee to the Department of Taxation on or before the last day of the
month following each calendar quarter. The return must include
governmental services fees collected by the short term lessor, any vehicle
licensing costs paid to DMV, and any amounts collected for recovery of vehicle
How long is a short term lessor required to keep their records?
Pursuant to NRS 372.734, a business is required to keep records for at
least 4 years. There is no time specified for record-retention under NRS