Dear Michelle:
I checked with the Department of Taxation on the question of whether payment in silver dollars affects the potential State sales or use tax liability of the person receiving such payment.
Your question (I think) asked about payment for services with silver dollars and I should point out that Nevada does NOT impose sales or use taxes on services. But, assuming that a transaction is taxable under Nevada law (e.g., purchase of an item), the Department advises that a silver dollar is considered the same as a dollar and would not be treated differently than payment by a one dollar bill.
Of course the wisdom of using silver dollars to purchase items is questionable since the coin would likely be worth more than a dollar to a coin dealer.
Please note that this response is in the context of State sales and use taxes and does not address any federal income tax issues. For answers to questions relating to federal income tax liability, the constituent should be directed to the IRS or www.irs.gov for assistance.
I hope that is helpful. I am out of the office next week but will return Oct. 7th so if this answer leads to more questions, please do not hesitate to contact me at (775) 684-6484 or via e-mail. If you need more immediate assistance, please call (775) 684-6825.
___________________________
Susan Scholley
Chief Principal Research Analyst
Nevada Legislative Counsel Bureau
Telephone: (775) 684-6825
Fax: (775) 684-6400
sscholley@lcb.state.nv.us