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Panel backs ballot proposal to allow sales tax credit for trade‑in value of portable electronics
Summary
AB403 would put a question to voters to allow sales and use tax to be calculated on the net selling price after a retailer’s allowance for a traded‑in portable electronic device; sponsors and industry supporters said it would reduce costs for consumers and encourage trade‑ins and refurbishment.
Assemblymember Selena Torres Fawcett presented Assembly Bill 4 03 to the Assembly Committee on Revenue seeking voter approval to amend the Sales and Use Tax Act of 1955 so that retailers could subtract the allowance given for a used portable electronic device taken in trade when calculating sales and use tax on the purchase of another portable electronic device.
Torres Fawcett said the measure would treat portable electronics trade‑ins in the same way Nevada treats motor vehicle trade‑ins: tax would apply only to the difference between the selling price and the allowance for the trade‑in. She said the bill would be placed on the Nov. 3, 2026 general election ballot and — if approved by voters — become effective Jan. 1, 2027. The sponsor noted the proposal is meant to reflect modern consumer practices that did not exist when the 1955 act was adopted.
Olivia Spears, government affairs counsel for Asurion, told the committee the exemption would apply to a range of portable devices, including phones, tablets and laptops, and would allow retailers to state the allowance separately on receipts. Spears said the change would reduce the tax burden for consumers, encourage trade‑ins which can reduce landfill waste, and allow businesses that operate nationally to harmonize Nevada operations with other states’ practices.
Committee members asked about the breadth of the definition of "portable electronic device," whether non-electronic or medical devices could be captured, and whether the change would include items such as laptops but not large televisions. Spears said the focus was on portability: devices that are ‘‘portable in nature.’’ Sponsor Torres Fawcett said the intent was not to capture medical devices (for example, hearing aids) but she was open to further discussion; members urged follow-up with technical language to clarify the scope.
A representative for a nonprofit submitted a staff estimate that the bill would reduce state revenue by about $3.8 million in the first year and about $4.0 million the following year but argued trade‑in activity and increased retail sales could offset some loss. No formal committee vote was recorded during the hearing; the sponsor said she would continue discussions before any work session.
