I'm working on my Nevada LLC's sales tax report for this last quarter. A few months ago we paid Legalzoom to do a patent search, and the receipt doesn't list any sales tax. They sent us a folder with the results, files on similar patents. Should I file a use tax for this?
In Nevada, Use Tax (and Sales Tax) only apply to "tangible personal property transferred for value". In other words, it doesn't apply to services rendered, only to tangible products purchased. The service purchased from LegalZoom does not meet the tangible property definition to require Use Tax be paid. The files delivered are not a physical product that you were purchasing, but a summary of the service provided and details of the information discovered during that process.
Here's an example to think about that might make it more relatable:
If you hire a plumber to come and fix an issue with your toilet, you don't pay use/sales tax on the visit and work performed. If, during the course of performing this service, the plumber needs to sell you new parts for your toilet, you would pay sales tax for the parts you receive. If, when the job is finished, the plumber provides you with a detailed write-up of what he did, what he discovered, and how to prevent it from happening again, you don't pay tax for that documentation. It's just part of the service provided.