requires two-thirds majority vote (§§ 9, 11, 12, 36, 40, 42, 45, 72, 75, 81, 93.30, 93.36, 93.48, 101, 105, 106, 107, 108, 111-124, 127-130, 132, 139, 201-204, 206, 227-230, 232)                                      

                             

 

Assembly Bill No. 1–Select Committee on State
Revenue and Education Funding

 

June 25, 2003

____________

 

Referred to Select Committee on State Revenue
and Education Funding

 

SUMMARY—Makes various changes concerning state financial administration. (BDR 32‑13)

 

FISCAL NOTE:                   Effect on Local Government: Yes.

                   Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to state financial administration; providing for the imposition and administration of an excise tax on employers based on wages paid to their employees; imposing a franchise fee on business entities for the privilege of doing business in this state; providing for the imposition and administration of a tax on financial institutions for the privilege of doing business in this state; replacing the casino entertainment tax with a tax on all live entertainment; eliminating the business activity tax; revising the provisions governing the taxes on liquor and cigarettes; imposing a state tax on the transfer of real property and revising the provisions governing the existing tax; revising the fees charged for certain gaming licenses; establishing the Legislative Committee on Taxation, Public Revenue and Tax Policy; requiring the Department of Education to prescribe a minimum amount of money that each school district must expend each year for textbooks, instructional supplies and instructional hardware; revising provisions governing the purchase of retirement credit for certain educational personnel; apportioning the State Distributive School Account in the State General Fund for the 2003-2005 biennium; making appropriations to the State Distributive School Account

for purposes relating to class-size reduction; making various other changes relating to state financial administration; authorizing certain expenditures; making an additional appropriation; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Title 32 of NRS is hereby amended by adding

1-2  thereto a new chapter to consist of the provisions set forth as

1-3  sections 2 to 24, inclusive, of this act.

1-4  Sec. 2.  As used in this chapter, unless the context otherwise

1-5  requires, the words and terms defined in sections 3 to 6, inclusive,

1-6  of this act have the meanings ascribed to them in those sections.

1-7  Sec. 3.  “Commission” means the Nevada Tax Commission.

1-8  Sec. 4.  “Employer” means any employer who is required to

1-9  pay a contribution pursuant to NRS 612.535 for any calendar

1-10  quarter, except an Indian tribe, nonprofit organization or political

1-11  subdivision. For the purposes of this section:

1-12      1.  “Indian tribe” includes any entity described in subsection

1-13  10 of NRS 612.055.

1-14      2.  “Nonprofit organization” means any entity described in

1-15  subsection 1 of NRS 612.121.

1-16      3.  “Political subdivision” means any entity described in

1-17  subsection 9 of NRS 612.055.

1-18      Sec. 5.  “Employment” has the meaning ascribed to it in NRS

1-19  612.065 to 612.145, inclusive.

1-20      Sec. 6.  “Taxpayer” means any person liable for the tax

1-21  imposed by this chapter.

1-22      Sec. 7.  The Department shall:

1-23      1.  Administer and enforce the provisions of this chapter, and

1-24  may adopt such regulations as it deems appropriate for those

1-25  purposes.

1-26      2.  Deposit all taxes, interest and penalties it receives pursuant

1-27  to this chapter in the State Treasury for credit to the State General

1-28  Fund.

1-29      Sec. 8.  1.  Each person responsible for maintaining the

1-30  records of a taxpayer shall:

1-31      (a) Keep such records as may be necessary to determine the

1-32  amount of the liability of the taxpayer pursuant to the provisions

1-33  of this chapter;

1-34      (b) Preserve those records for 4 years or until any litigation or

1-35  prosecution pursuant to this chapter is finally determined,

1-36  whichever is longer; and

2-1  (c) Make the records available for inspection by the

2-2  Department upon demand at reasonable times during regular

2-3  business hours.

2-4  2.  The Department may by regulation specify the types of

2-5  records which must be kept to determine the amount of the

2-6  liability of a taxpayer pursuant to the provisions of this chapter.

2-7  3.  Any person who violates the provisions of subsection 1 is

2-8  guilty of a misdemeanor.

2-9  Sec. 9.  1.  To verify the accuracy of any return filed or, if

2-10  no return is filed by a taxpayer, to determine the amount required

2-11  to be paid, the Department, or any person authorized in writing by

2-12  the Department, may examine the books, papers and records of

2-13  any person who may be liable for the tax imposed by this chapter.

2-14      2.  Any person who may be liable for the tax imposed by this

2-15  chapter and who keeps outside of this state any books, papers and

2-16  records relating thereto shall pay to the Department an amount

2-17  equal to the allowance provided for state officers and employees

2-18  generally while traveling outside of the State for each day, or

2-19  fraction thereof, during which an employee of the Department is

2-20  engaged in examining those documents, plus any other actual

2-21  expenses incurred by the employee while he is absent from his

2-22  regular place of employment to examine those documents.

2-23      Sec. 9.5. The Executive Director may request from any other

2-24  governmental agency or officer such information as he deems

2-25  necessary to carry out the provisions of this chapter. If the

2-26  Executive Director obtains any confidential information pursuant

2-27  to such a request, he shall maintain the confidentiality of that

2-28  information in the same manner and to the same extent as

2-29  provided by law for the agency or officer from whom the

2-30  information was obtained.

2-31      Sec. 10.  1.  Except as otherwise provided in this section and

2-32  NRS 360.250, the records and files of the Department concerning

2-33  the administration of this chapter are confidential and privileged.

2-34  The Department, and any employee engaged in the administration

2-35  of this chapter or charged with the custody of any such records or

2-36  files, shall not disclose any information obtained from the

2-37  Department’s records or files or from any examination,

2-38  investigation or hearing authorized by the provisions of this

2-39  chapter. Neither the Department nor any employee of the

2-40  Department may be required to produce any of the records, files

2-41  and information for the inspection of any person or for use in any

2-42  action or proceeding.

2-43      2.  The records and files of the Department concerning the

2-44  administration of this chapter are not confidential and privileged

2-45  in the following cases:

3-1  (a) Testimony by a member or employee of the Department

3-2  and production of records, files and information on behalf of the

3-3  Department or a taxpayer in any action or proceeding pursuant to

3-4  the provisions of this chapter if that testimony or the records, files

3-5  or information, or the facts shown thereby, are directly involved in

3-6  the action or proceeding.

3-7  (b) Delivery to a taxpayer or his authorized representative of a

3-8  copy of any return or other document filed by the taxpayer

3-9  pursuant to this chapter.

3-10      (c) Publication of statistics so classified as to prevent the

3-11  identification of a particular person or document.

3-12      (d) Exchanges of information with the Internal Revenue

3-13  Service in accordance with compacts made and provided for in

3-14  such cases.

3-15      (e) Disclosure in confidence to the Governor or his agent in

3-16  the exercise of the Governor’s general supervisory powers, or to

3-17  any person authorized to audit the accounts of the Department in

3-18  pursuance of an audit, or to the Attorney General or other legal

3-19  representative of the State in connection with an action or

3-20  proceeding pursuant to this chapter, or to any agency of this or

3-21  any other state charged with the administration or enforcement of

3-22  laws relating to taxation.

3-23      (f) Exchanges of information pursuant to subsection 3.

3-24      3.  The Commission may agree with any county fair and

3-25  recreation board or the governing body of any county, city or town

3-26  for the continuing exchange of information concerning taxpayers.

3-27      Sec. 11.  1.  There is hereby imposed an excise tax on each

3-28  employer at the rate of 0.6 percent of the wages, as determined

3-29  pursuant to NRS 612.545, paid by the employer during a calendar

3-30  quarter with respect to employment.

3-31      2.  The tax imposed by this section must not be deducted, in

3-32  whole or in part, from any wages of persons in the employment of

3-33  the employer.

3-34      3.  Each employer shall, on or before the last day of the month

3-35  immediately following each calendar quarter for which the

3-36  employer is required to pay a contribution pursuant to

3-37  NRS 612.535:

3-38      (a) File with the Department:

3-39          (1) A return on a form prescribed by the Department; and

3-40          (2) A copy of any report required by the Employment

3-41  Security Division of the Department of Employment, Training and

3-42  Rehabilitation for determining the amount of the contribution

3-43  required pursuant to NRS 612.535 for any wages paid by the

3-44  employer during that calendar quarter; and

4-1  (b) Remit to the Department any tax due pursuant to this

4-2  chapter for that calendar quarter.

4-3  Sec. 12.  Upon written application made before the date on

4-4  which payment must be made, the Department may for good cause

4-5  extend by 30 days the time within which a taxpayer is required to

4-6  pay the tax imposed by this chapter. If the tax is paid during the

4-7  period of extension, no penalty or late charge may be imposed for

4-8  failure to pay at the time required, but the taxpayer shall pay

4-9  interest at the rate of 1 percent per month from the date on which

4-10  the amount would have been due without the extension until the

4-11  date of payment, unless otherwise provided in NRS 360.232 or

4-12  360.320.

4-13      Sec. 13.  The remedies of the State provided for in this

4-14  chapter are cumulative, and no action taken by the Department or

4-15  the Attorney General constitutes an election by the State to pursue

4-16  any remedy to the exclusion of any other remedy for which

4-17  provision is made in this chapter.

4-18      Sec. 14.  If the Department determines that any tax, penalty

4-19  or interest has been paid more than once or has been erroneously

4-20  or illegally collected or computed, the Department shall set forth

4-21  that fact in the records of the Department and certify to the State

4-22  Board of Examiners the amount collected in excess of the amount

4-23  legally due and the person from whom it was collected or by whom

4-24  it was paid. If approved by the State Board of Examiners, the

4-25  excess amount collected or paid must be credited on any amounts

4-26  then due from the person under this chapter, and the balance

4-27  refunded to the person or his successors in interest.

4-28      Sec. 15.  1.  Except as otherwise provided in NRS 360.235

4-29  and 360.395:

4-30      (a) No refund may be allowed unless a claim for it is filed with

4-31  the Department within 3 years after the last day of the month

4-32  immediately following the calendar quarter for which the

4-33  overpayment was made.

4-34      (b) No credit may be allowed after the expiration of the period

4-35  specified for filing claims for refund unless a claim for credit is

4-36  filed with the Department within that period.

4-37      2.  Each claim must be in writing and must state the specific

4-38  grounds upon which the claim is founded.

4-39      3.  Failure to file a claim within the time prescribed in this

4-40  chapter constitutes a waiver of any demand against the State on

4-41  account of overpayment.

4-42      4.  Within 30 days after rejecting any claim in whole or in

4-43  part, the Department shall serve notice of its action on the

4-44  claimant in the manner prescribed for service of notice of a

4-45  deficiency determination.

5-1  Sec. 16.  1.  Except as otherwise provided in this section and

5-2  NRS 360.320, interest must be paid upon any overpayment of any

5-3  amount of the taxes imposed by this chapter at the rate of 0.5

5-4  percent per month, or fraction thereof, from the last day of the

5-5  month immediately following the calendar quarter for which the

5-6  overpayment was made. No refund or credit may be made of any

5-7  interest imposed upon the person making the overpayment with

5-8  respect to the amount being refunded or credited.

5-9  2.  The interest must be paid:

5-10      (a) In the case of a refund, to the last day of the calendar

5-11  month following the date upon which the person making the

5-12  overpayment, if he has not already filed a claim, is notified by

5-13  the Department that a claim may be filed or the date upon which

5-14  the claim is certified to the State Board of Examiners, whichever is

5-15  earlier.

5-16      (b) In the case of a credit, to the same date as that to which

5-17  interest is computed on the tax or the amount against which the

5-18  credit is applied.

5-19      3.  If the Department determines that any overpayment has

5-20  been made intentionally or by reason of carelessness, the

5-21  Department shall not allow any interest on the overpayment.

5-22      Sec. 17.  1.  No injunction, writ of mandate or other legal or

5-23  equitable process may issue in any suit, action or proceeding in

5-24  any court against this state or against any officer of the State to

5-25  prevent or enjoin the collection under this chapter of the tax

5-26  imposed by this chapter or any amount of tax, penalty or interest

5-27  required to be collected.

5-28      2.  No suit or proceeding may be maintained in any court for

5-29  the recovery of any amount alleged to have been erroneously or

5-30  illegally determined or collected unless a claim for refund or credit

5-31  has been filed.

5-32      Sec. 18.  1.  Within 90 days after a final decision upon a

5-33  claim filed pursuant to this chapter is rendered by the

5-34  Commission, the claimant may bring an action against the

5-35  Department on the grounds set forth in the claim in a court of

5-36  competent jurisdiction in Carson City, the county of this state

5-37  where the claimant resides or maintains his principal place of

5-38  business or a county in which any relevant proceedings were

5-39  conducted by the Department, for the recovery of the whole or any

5-40  part of the amount with respect to which the claim has been

5-41  disallowed.

5-42      2.  Failure to bring an action within the time specified

5-43  constitutes a waiver of any demand against the State on account of

5-44  alleged overpayments.

6-1  Sec. 19.  1.  If the Department fails to mail notice of action

6-2  on a claim within 6 months after the claim is filed, the claimant

6-3  may consider the claim disallowed and file an appeal with the

6-4  Commission within 30 days after the last day of the 6-month

6-5  period. If the claimant is aggrieved by the decision of the

6-6  Commission rendered on appeal, the claimant may, within 90 days

6-7  after the decision is rendered, bring an action against the

6-8  Department on the grounds set forth in the claim for the recovery

6-9  of the whole or any part of the amount claimed as an

6-10  overpayment.

6-11      2.  If judgment is rendered for the plaintiff, the amount of the

6-12  judgment must first be credited towards any tax due from the

6-13  plaintiff.

6-14      3.  The balance of the judgment must be refunded to the

6-15  plaintiff.

6-16      Sec. 20.  In any judgment, interest must be allowed at the rate

6-17  of 6 percent per annum upon the amount found to have been

6-18  illegally collected from the date of payment of the amount to the

6-19  date of allowance of credit on account of the judgment, or to a

6-20  date preceding the date of the refund warrant by not more than 30

6-21  days. The date must be determined by the Department.

6-22      Sec. 21.  A judgment may not be rendered in favor of the

6-23  plaintiff in any action brought against the Department to recover

6-24  any amount paid when the action is brought by or in the name of

6-25  an assignee of the person paying the amount or by any person

6-26  other than the person who paid the amount.

6-27      Sec. 22.  1.  The Department may recover a refund or any

6-28  part thereof which is erroneously made and any credit or part

6-29  thereof which is erroneously allowed in an action brought in a

6-30  court of competent jurisdiction in Carson City or Clark County in

6-31  the name of the State of Nevada.

6-32      2.  The action must be tried in Carson City or Clark County

6-33  unless the court, with the consent of the Attorney General, orders

6-34  a change of place of trial.

6-35      3.  The Attorney General shall prosecute the action, and the

6-36  provisions of NRS, the Nevada Rules of Civil Procedure and the

6-37  Nevada Rules of Appellate Procedure relating to service of

6-38  summons, pleadings, proofs, trials and appeals are applicable to

6-39  the proceedings.

6-40      Sec. 23.  1.  If any amount in excess of $25 has been

6-41  illegally determined, either by the Department or by the person

6-42  filing the return, the Department shall certify this fact to the State

6-43  Board of Examiners, and the latter shall authorize the

6-44  cancellation of the amount upon the records of the Department.

7-1  2.  If an amount not exceeding $25 has been illegally

7-2  determined, either by the Department or by the person filing the

7-3  return, the Department, without certifying this fact to the State

7-4  Board of Examiners, shall authorize the cancellation of the

7-5  amount upon the records of the Department.

7-6  Sec. 24.  1.  A person shall not:

7-7  (a) Make, cause to be made or permit to be made any false or

7-8  fraudulent return or declaration or false statement in any return

7-9  or declaration with intent to defraud the State or to evade payment

7-10  of the tax or any part of the tax imposed by this chapter.

7-11      (b) Make, cause to be made or permit to be made any false

7-12  entry in books, records or accounts with intent to defraud the State

7-13  or to evade the payment of the tax or any part of the tax imposed

7-14  by this chapter.

7-15      (c) Keep, cause to be kept or permit to be kept more than one

7-16  set of books, records or accounts with intent to defraud the State

7-17  or to evade the payment of the tax or any part of the tax imposed

7-18  by this chapter.

7-19      2.  Any person who violates the provisions of subsection 1 is

7-20  guilty of a gross misdemeanor.

7-21      Sec. 25.  Title 32 of NRS is hereby amended by adding thereto

7-22  a new chapter to consist of the provisions set forth as sections 26 to

7-23  58, inclusive, of this act.

7-24      Sec. 26.  As used in this chapter, unless the context otherwise

7-25  requires, the words and terms defined in sections 27 to 33,

7-26  inclusive, of this act have the meanings ascribed to them in those

7-27  sections.

7-28      Sec. 27.  “Amount paid for live entertainment” means:

7-29      1.  If the live entertainment is provided at a facility owned,

7-30  leased or otherwise occupied by a taxable business entity, the

7-31  consideration, expressed in terms of money, paid for the right or

7-32  privilege to have access to that facility. For the purposes of this

7-33  subsection, the term includes all amounts paid for food,

7-34  refreshments and merchandise purchased at the facility if the

7-35  facility has a maximum seating capacity of not more than 5,000

7-36  seats that are permanently mounted and cannot be, or are not

7-37  intended to be, removed temporarily for any single performance of

7-38  live entertainment.

7-39      2.  If the live entertainment is provided at a location other

7-40  than a facility owned, leased or otherwise occupied by the taxable

7-41  business entity providing the live entertainment, the total amount

7-42  of consideration, expressed in terms of money, paid to the business

7-43  entity for providing the live entertainment.

7-44      Sec. 28.  “Board” means the State Gaming Control Board.

8-1  Sec. 29.  “Business” means any activity engaged in or

8-2  caused to be engaged in by a business entity with the object of

8-3  gain, benefit or advantage, either direct or indirect, to any person

8-4  or governmental entity.

8-5  Sec. 30.  1.  “Business entity” includes:

8-6  (a) A corporation, partnership, proprietorship, business

8-7  association and any other person engaging in business;

8-8  (b) A natural person engaging in a business if he is deemed to

8-9  be a business entity pursuant to section 34 of this act; and

8-10      (c) A brothel authorized to conduct business in this state.

8-11      2.  The term does not include a governmental entity.

8-12      Sec. 31.  “Licensed gaming establishment” has the meaning

8-13  ascribed to it in NRS 463.0169.

8-14      Sec. 32.  “Live entertainment” means any activity provided

8-15  for pleasure, enjoyment, recreation, relaxation, diversion or other

8-16  similar purpose by a person or persons who are physically present

8-17  when providing that activity to a patron or group of patrons who

8-18  are physically present.

8-19      Sec. 33.  “Taxpayer” means any person liable for the tax

8-20  imposed pursuant to this chapter.

8-21      Sec. 34.  A natural person engaging in a business shall be

8-22  deemed to be a business entity that is subject to the provisions of

8-23  this chapter if the person is required to file with the Internal

8-24  Revenue Service a Schedule C (Form 1040), Profit or Loss From

8-25  Business Form, or its equivalent or successor form, a Schedule E

8-26  (Form 1040), Supplemental Income and Loss Form, or its

8-27  equivalent or successor form, or a Schedule F (Form 1040), Profit

8-28  or Loss From Farming Form, or its equivalent or successor form,

8-29  for the business.

8-30      Sec. 35.  The Department shall provide by regulation for a

8-31  more detailed definition of live entertainment consistent with the

8-32  general definition set forth in section 32 of this act for use by the

8-33  Board and the Department in determining whether an activity is a

8-34  taxable activity under the provisions of this chapter.

8-35      Sec. 36.  1.  There is hereby imposed an excise tax of 10

8-36  percent of all amounts paid for live entertainment. Amounts paid

8-37  for gratuities directly or indirectly remitted to employees of a

8-38  business entity providing live entertainment or for service charges,

8-39  including those imposed in connection with the use of credit cards

8-40  or debit cards, which are collected and retained by persons other

8-41  than the taxpayer, are not taxable pursuant to this section.

8-42      2.  A business entity that collects any amount paid for live

8-43  entertainment is liable for the tax imposed by this section, but is

8-44  entitled to collect reimbursement from any person paying that

8-45  amount.

9-1  3.  Any ticket for live entertainment must state whether the tax

9-2  imposed by this section is included in the price of the ticket. If the

9-3  ticket does not include such a statement, the taxpayer shall pay the

9-4  tax based on the face amount of the ticket.

9-5  4.  The tax imposed by this section does not apply to:

9-6  (a) Any amount paid for live entertainment that this state is

9-7  prohibited from taxing under the Constitution, laws or treaties of

9-8  the United States or the Nevada Constitution.

9-9  (b) Any merchandise sold outside the premises where live

9-10  entertainment is provided, unless the purchase of the merchandise

9-11  entitles the purchaser to admission to the entertainment.

9-12      (c) Any amount paid for live entertainment that is provided by

9-13  or entirely for the benefit of a nonprofit organization that is

9-14  recognized as exempt from taxation pursuant to 26 U.S.C. §

9-15  501(c).

9-16      (d) Live entertainment that is provided at a trade show.

9-17      (e) Music performed by musicians who move constantly

9-18  through the audience if no other form of live entertainment is

9-19  afforded to the patrons.

9-20      (f) Any boxing contest or exhibition governed by the provisions

9-21  of chapter 467 of NRS.

9-22      Sec. 37.  A taxpayer shall hold the amount of all taxes for

9-23  which he is liable pursuant to this chapter in a separate account in

9-24  trust for the State.

9-25      Sec. 38.  1.  The Board shall:

9-26      (a) Collect the tax imposed by this chapter from taxpayers who

9-27  are licensed gaming establishments; and

9-28      (b) Adopt such regulations as are necessary to carry out the

9-29  provisions of paragraph (a). The regulations must be adopted in

9-30  accordance with the provisions of chapter 233B of NRS and must

9-31  be codified in the Nevada Administrative Code.

9-32      2.  The Department shall:

9-33      (a) Collect the tax imposed by this chapter from all other

9-34  taxpayers; and

9-35      (b) Adopt such regulations as are necessary to carry out the

9-36  provisions of paragraph (a).

9-37      3.  For the purposes of:

9-38      (a) Subsection 1, the provisions of chapter 463 of NRS relating

9-39  to the payment, collection, administration and enforcement of

9-40  gaming license fees and taxes, including, without limitation, any

9-41  provisions relating to the imposition of penalties and interest, shall

9-42  be deemed to apply to the payment, collection, administration and

9-43  enforcement of the taxes imposed by this chapter to the extent that

9-44  those provisions do not conflict with the provisions of this chapter.

10-1      (b) Subsection 2, the provisions of chapter 360 of NRS relating

10-2  to the payment, collection, administration and enforcement of

10-3  taxes, including, without limitation, any provisions relating to the

10-4  imposition of penalties and interest, shall be deemed to apply to

10-5  the payment, collection, administration and enforcement of the

10-6  taxes imposed by this chapter to the extent that those provisions do

10-7  not conflict with the provisions of this chapter.

10-8      4.  To ensure that the tax imposed by section 36 of this act is

10-9  collected fairly and equitably, the Board and the Department shall,

10-10  jointly, coordinate the administration and collection of that tax

10-11  and the regulation of taxpayers who are liable for the payment of

10-12  the tax.

10-13     Sec. 39.  1.  Each taxpayer who is a licensed gaming

10-14  establishment shall file with the Board, on or before the 24th day

10-15  of each month, a report showing the amount of all taxable receipts

10-16  for the preceding month. The report must be in a form prescribed

10-17  by the Board.

10-18     2.  All other taxpayers shall file with the Department, on or

10-19  before the 24th day of each month, a report showing the amount

10-20  of all taxable receipts for the preceding month. The report must be

10-21  in a form prescribed by the Department.

10-22     3.  Each report required to be filed by this section must be

10-23  accompanied by the amount of the tax that is due for the month

10-24  covered by the report.

10-25     4.  The Board and the Department shall deposit all taxes,

10-26  interest and penalties it receives pursuant to this chapter in the

10-27  State Treasury for credit to the State General Fund.

10-28     Sec. 40.  Upon written application made before the date on

10-29  which payment must be made, the Board or the Department may,

10-30  for good cause, extend by 30 days the time within which a

10-31  taxpayer is required to pay the tax imposed by this chapter. If the

10-32  tax is paid during the period of extension, no penalty or late

10-33  charge may be imposed for failure to pay at the time required, but

10-34  the taxpayer shall pay interest at the rate of 1 percent per month

10-35  from the date on which the amount would have been due without

10-36  the extension until the date of payment, unless otherwise provided

10-37  in NRS 360.232 or 360.320.

10-38     Sec. 41.  1.  Each person responsible for maintaining the

10-39  records of a taxpayer shall:

10-40     (a) Keep such records as may be necessary to determine the

10-41  amount of the liability of the taxpayer pursuant to the provisions

10-42  of this chapter;

10-43     (b) Preserve those records for at least 4 years or until any

10-44  litigation or prosecution pursuant to this chapter is finally

10-45  determined, whichever is longer; and

11-1      (c) Make the records available for inspection by the Board or

11-2  the Department upon demand at reasonable times during regular

11-3  business hours.

11-4      2.  The Board and the Department may by regulation specify

11-5  the types of records which must be kept to determine the amount

11-6  of the liability of a taxpayer from whom they are required to

11-7  collect the tax imposed by this chapter.

11-8      3.  Any agreement that is entered into, modified or extended

11-9  after January 1, 2004, for the lease, assignment or transfer of any

11-10  premises upon which any activity subject to the tax imposed by this

11-11  chapter is, or thereafter may be, conducted shall be deemed to

11-12  include a provision that the taxpayer required to pay the tax must

11-13  be allowed access to, upon demand, all books, records and

11-14  financial papers held by the lessee, assignee or transferee which

11-15  must be kept pursuant to this section. Any person conducting

11-16  activities subject to the tax imposed by section 36 of this act who

11-17  fails to maintain or disclose his records pursuant to this subsection

11-18  is liable to the taxpayer for any penalty paid by the taxpayer for

11-19  the late payment or nonpayment of the tax caused by the failure to

11-20  maintain or disclose records.

11-21     4.  A person who violates any provision of this section is guilty

11-22  of a misdemeanor.

11-23     Sec. 42.  1.  To verify the accuracy of any report filed or, if

11-24  no report is filed by a taxpayer, to determine the amount of tax

11-25  required to be paid:

11-26     (a) The Board, or any person authorized in writing by the

11-27  Board, may examine the books, papers and records of any licensed

11-28  gaming establishment that may be liable for the tax imposed by

11-29  this chapter.

11-30     (b) The Department, or any person authorized in writing by

11-31  the Department, may examine the books, papers and records of

11-32  any other person who may be liable for the tax imposed by this

11-33  chapter.

11-34     2.  Any person who may be liable for the tax imposed by this

11-35  chapter and who keeps outside of this state any books, papers and

11-36  records relating thereto shall pay to the Board or the Department

11-37  an amount equal to the allowance provided for state officers and

11-38  employees generally while traveling outside of the State for each

11-39  day, or fraction thereof, during which an employee of the Board

11-40  or the Department is engaged in examining those documents, plus

11-41  any other actual expenses incurred by the employee while he is

11-42  absent from his regular place of employment to examine those

11-43  documents.

11-44     Sec. 43.  1.  Except as otherwise provided in this section and

11-45  NRS 360.250, the records and files of the Board and the

12-1  Department concerning the administration of this chapter are

12-2  confidential and privileged. The Board, the Department and any

12-3  employee of the Board or the Department engaged in the

12-4  administration of this chapter or charged with the custody of any

12-5  such records or files shall not disclose any information obtained

12-6  from the records or files of the Board or the Department or from

12-7  any examination, investigation or hearing authorized by the

12-8  provisions of this chapter. The Board, the Department and any

12-9  employee of the Board or the Department may not be required to

12-10  produce any of the records, files and information for the

12-11  inspection of any person or for use in any action or proceeding.

12-12     2.  The records and files of the Board and the Department

12-13  concerning the administration of this chapter are not confidential

12-14  and privileged in the following cases:

12-15     (a) Testimony by a member or employee of the Board or the

12-16  Department and production of records, files and information on

12-17  behalf of the Board or the Department or a taxpayer in any action

12-18  or proceeding pursuant to the provisions of this chapter, if that

12-19  testimony or the records, files or information, or the facts shown

12-20  thereby, are directly involved in the action or proceeding.

12-21     (b) Delivery to a taxpayer or his authorized representative of a

12-22  copy of any report or other document filed by the taxpayer

12-23  pursuant to this chapter.

12-24     (c) Publication of statistics so classified as to prevent the

12-25  identification of a particular person or document.

12-26     (d) Exchanges of information with the Internal Revenue

12-27  Service in accordance with compacts made and provided for in

12-28  such cases.

12-29     (e) Disclosure in confidence to the Governor or his agent in

12-30  the exercise of the Governor’s general supervisory powers, or to

12-31  any person authorized to audit the accounts of the Board or the

12-32  Department in pursuance of an audit, or to the Attorney General

12-33  or other legal representative of the State in connection with an

12-34  action or proceeding pursuant to this chapter, or to any agency of

12-35  this or any other state charged with the administration or

12-36  enforcement of laws relating to taxation.

12-37     Sec. 44.  1.  If:

12-38     (a) The Board determines that a licensed gaming

12-39  establishment is collecting an amount paid for live entertainment

12-40  with the intent to defraud the State or to evade the payment of the

12-41  tax or any part of the tax imposed by this chapter, the Board shall

12-42  establish an amount upon which the tax imposed by this chapter

12-43  must be based.

12-44     (b) The Department determines that a taxpayer who is not a

12-45  licensed gaming establishment is collecting an amount paid for

13-1  live entertainment with the intent to defraud the State or to evade

13-2  the payment of the tax or any part of the tax imposed by this

13-3  chapter, the Department shall establish an amount upon which the

13-4  tax imposed by this chapter must be based.

13-5      2.   The amount paid for live entertainment established by the

13-6  Board or the Department pursuant to subsection 1 must be based

13-7  upon amounts paid for live entertainment to business entities that

13-8  are deemed comparable by the Board or the Department to that of

13-9  the taxpayer.

13-10     Sec. 45.  1. If a taxpayer:

13-11     (a) Is unable to collect all or part of the amount paid for live

13-12  entertainment which was included in the taxable receipts reported

13-13  for a previous reporting period; and

13-14     (b) Has taken a deduction on his federal income tax return

13-15  pursuant to 26 U.S.C. § 166(a) for the amount which he is unable

13-16  to collect,

13-17  he is entitled to receive a credit for the amount of tax paid on

13-18  account of that uncollected amount. The credit may be used

13-19  against the amount of tax that the taxpayer is subsequently

13-20  required to pay pursuant to this chapter.

13-21     2.  If the Internal Revenue Service disallows a deduction

13-22  described in paragraph (b) of subsection 1 and the taxpayer

13-23  claimed a credit on a return for a previous reporting period

13-24  pursuant to subsection 1, the taxpayer shall include the amount of

13-25  that credit in the amount of taxes reported pursuant to this chapter

13-26  in the first return filed with the Board or the Department after the

13-27  deduction is disallowed.

13-28     3.  If a taxpayer collects all or part of the amount paid for live

13-29  entertainment for which he claimed a credit on a return for a

13-30  previous reporting period pursuant to subsection 2, he shall

13-31  include:

13-32     (a) The amount collected in the amount paid for live

13-33  entertainment reported pursuant to paragraph (a) of subsection 1;

13-34  and

13-35     (b) The tax payable on the amount collected in the amount of

13-36  taxes reported,

13-37  in the first return filed with the Board or the Department after that

13-38  collection.

13-39     4.  Except as otherwise provided in subsection 5, upon

13-40  determining that a taxpayer has filed a return which contains one

13-41  or more violations of the provisions of this section, the Board or

13-42  the Department shall:

13-43     (a) For the first return of any taxpayer that contains one or

13-44  more violations, issue a letter of warning to the taxpayer which

14-1  provides an explanation of the violation or violations contained in

14-2  the return.

14-3      (b) For the first or second return, other than a return

14-4  described in paragraph (a), in any calendar year which contains

14-5  one or more violations, assess a penalty equal to the amount of the

14-6  tax which was not reported.

14-7      (c) For the third and each subsequent return in any calendar

14-8  year which contains one or more violations, assess a penalty of

14-9  three times the amount of the tax which was not reported.

14-10     5.  For the purposes of subsection 4, if the first violation of

14-11  this section by any taxpayer was determined by the Board or the

14-12  Department through an audit which covered more than one return

14-13  of the taxpayer, the Board or the Department shall treat all returns

14-14  which were determined through the same audit to contain a

14-15  violation or violations in the manner provided in paragraph (a) of

14-16  subsection 4.

14-17     Sec. 46.  The remedies of the State provided for in this

14-18  chapter are cumulative, and no action taken by the Board, the

14-19  Department or the Attorney General constitutes an election by the

14-20  State to pursue any remedy to the exclusion of any other remedy

14-21  for which provision is made in this chapter.

14-22     Sec. 47.  If the Board or the Department determines that any

14-23  tax, penalty or interest has been paid more than once or has been

14-24  erroneously or illegally collected or computed, the Board or the

14-25  Department shall set forth that fact in its records and shall certify

14-26  to the State Board of Examiners the amount collected in excess of

14-27  the amount legally due and the person from which it was collected

14-28  or by whom it was paid. If approved by the State Board of

14-29  Examiners, the excess amount collected or paid must be credited

14-30  on any amounts then due from the person under this chapter, and

14-31  the balance refunded to the person or his successors in interest.

14-32     Sec. 48.  1.  Except as otherwise provided in NRS 360.235

14-33  and 360.395:

14-34     (a) No refund may be allowed unless a claim for it is filed

14-35  with:

14-36         (1) The Board, if the taxpayer is a licensed gaming

14-37  establishment; or

14-38         (2) The Department, if the taxpayer is not a licensed

14-39  gaming establishment.

14-40  A claim must be filed within 3 years after the last day of the month

14-41  following the month for which the overpayment was made.

14-42     (b) No credit may be allowed after the expiration of the period

14-43  specified for filing claims for refund unless a claim for credit is

14-44  filed with the Board or the Department within that period.

15-1      2.  Each claim must be in writing and must state the specific

15-2  grounds upon which the claim is founded.

15-3      3.  Failure to file a claim within the time prescribed in this

15-4  chapter constitutes a waiver of any demand against the State on

15-5  account of overpayment.

15-6      4.  Within 30 days after rejecting any claim in whole or in

15-7  part, the Board or the Department shall serve notice of its action

15-8  on the claimant in the manner prescribed for service of notice of a

15-9  deficiency determination.

15-10     Sec. 49.  1.  Except as otherwise provided in this section and

15-11  NRS 360.320, interest must be paid upon any overpayment of any

15-12  amount of the tax imposed by this chapter at the rate of 0.5

15-13  percent per month, or fraction thereof, from the last day of the

15-14  calendar month following the month for which the overpayment

15-15  was made. No refund or credit may be made of any interest

15-16  imposed upon the person making the overpayment with respect to

15-17  the amount being refunded or credited.

15-18     2.  The interest must be paid:

15-19     (a) In the case of a refund, to the last day of the calendar

15-20  month following the date upon which the person making the

15-21  overpayment, if he has not already filed a claim, is notified by the

15-22  Board or the Department that a claim may be filed or the date

15-23  upon which the claim is certified to the State Board of Examiners,

15-24  whichever is earlier.

15-25     (b) In the case of a credit, to the same date as that to which

15-26  interest is computed on the tax or amount against which the credit

15-27  is applied.

15-28     3.  If the Board or the Department determines that any

15-29  overpayment has been made intentionally or by reason of

15-30  carelessness, the Board or the Department shall not allow any

15-31  interest on the overpayment.

15-32     Sec. 50.  1.  No injunction, writ of mandate or other legal or

15-33  equitable process may issue in any suit, action or proceeding in

15-34  any court against this state or against any officer of the State to

15-35  prevent or enjoin the collection under this chapter of the tax

15-36  imposed by this chapter or any amount of tax, penalty or interest

15-37  required to be collected.

15-38     2.  No suit or proceeding may be maintained in any court for

15-39  the recovery of any amount alleged to have been erroneously or

15-40  illegally determined or collected unless a claim for refund or credit

15-41  has been filed.

15-42     Sec. 51.  1.  Within 90 days after a final decision upon a

15-43  claim filed pursuant to this chapter is rendered by:

15-44     (a) The Nevada Gaming Commission, the claimant may bring

15-45  an action against the Board on the grounds set forth in the claim.

16-1      (b) The Nevada Tax Commission, the claimant may bring an

16-2  action against the Department on the grounds set forth in the

16-3  claim.

16-4      2.  An action brought pursuant to subsection 1 must be

16-5  brought in a court of competent jurisdiction in Carson City, the

16-6  county of this state where the claimant resides or maintains his

16-7  principal place of business or a county in which any relevant

16-8  proceedings were conducted by the Board or the Department, for

16-9  the recovery of the whole or any part of the amount with respect to

16-10  which the claim has been disallowed.

16-11     3.  Failure to bring an action within the time specified

16-12  constitutes a waiver of any demand against the State on account of

16-13  alleged overpayments.

16-14     Sec. 52.  1.  If the Board fails to mail notice of action on a

16-15  claim within 6 months after the claim is filed, the claimant may

16-16  consider the claim disallowed and file an appeal with the Nevada

16-17  Gaming Commission within 30 days after the last day of the

16-18  6-month period.

16-19     2.  If the Department fails to mail notice of action on a claim

16-20  within 6 months after the claim is filed, the claimant may consider

16-21  the claim disallowed and file an appeal with the Nevada Tax

16-22  Commission within 30 days after the last day of the 6-month

16-23  period.

16-24     3.  If the claimant is aggrieved by the decision of:

16-25     (a) The Nevada Gaming Commission rendered on appeal, the

16-26  claimant may, within 90 days after the decision is rendered, bring

16-27  an action against the Board on the grounds set forth in the claim

16-28  for the recovery of the whole or any part of the amount claimed as

16-29  an overpayment.

16-30     (b) The Nevada Tax Commission rendered on appeal, the

16-31  claimant may, within 90 days after the decision is rendered, bring

16-32  an action against the Department on the grounds set forth in the

16-33  claim for the recovery of the whole or any part of the amount

16-34  claimed as an overpayment.

16-35     4.  If judgment is rendered for the plaintiff, the amount of the

16-36  judgment must first be credited towards any tax due from the

16-37  plaintiff.

16-38     5.  The balance of the judgment must be refunded to the

16-39  plaintiff.

16-40     Sec. 53.  In any judgment, interest must be allowed at the rate

16-41  of 6 percent per annum upon the amount found to have been

16-42  illegally collected from the date of payment of the amount to the

16-43  date of allowance of credit on account of the judgment, or to a

16-44  date preceding the date of the refund warrant by not more than 30

17-1  days. The date must be determined by the Board or the

17-2  Department.

17-3      Sec. 54.  A judgment may not be rendered in favor of the

17-4  plaintiff in any action brought against the Board or the

17-5  Department to recover any amount paid when the action is

17-6  brought by or in the name of an assignee of the person paying the

17-7  amount or by any person other than the person who paid the

17-8  amount.

17-9      Sec. 55.  1.  The Board or the Department may recover a

17-10  refund or any part thereof which is erroneously made and any

17-11  credit or part thereof which is erroneously allowed in an action

17-12  brought in a court of competent jurisdiction in Carson City or

17-13  Clark County in the name of the State of Nevada.

17-14     2.  The action must be tried in Carson City or Clark County

17-15  unless the court, with the consent of the Attorney General, orders

17-16  a change of place of trial.

17-17     3.  The Attorney General shall prosecute the action, and the

17-18  provisions of NRS, the Nevada Rules of Civil Procedure and the

17-19  Nevada Rules of Appellate Procedure relating to service of

17-20  summons, pleadings, proofs, trials and appeals are applicable to

17-21  the proceedings.

17-22     Sec. 56.  1.  If any amount in excess of $25 has been

17-23  illegally determined, either by the person filing the return or by the

17-24  Board or the Department, the Board or the Department shall

17-25  certify this fact to the State Board of Examiners, and the latter

17-26  shall authorize the cancellation of the amount upon the records of

17-27  the Board or the Department.

17-28     2.  If an amount not exceeding $25 has been illegally

17-29  determined, either by the person filing a return or by the Board or

17-30  the Department, the Board or the Department, without certifying

17-31  this fact to the State Board of Examiners, shall authorize the

17-32  cancellation of the amount upon the records of the Board or the

17-33  Department.

17-34     Sec. 57.  Any licensed gaming establishment liable for the

17-35  payment of the tax imposed by section 36 of this act who willfully

17-36  fails to report, pay or truthfully account for the tax is subject to the

17-37  revocation of his gaming license by the Nevada Gaming

17-38  Commission.

17-39     Sec. 58.  1.  A person shall not:

17-40     (a) Make, cause to be made or permit to be made any false or

17-41  fraudulent return or declaration or false statement in any report

17-42  or declaration, with intent to defraud the State or to evade

17-43  payment of the tax or any part of the tax imposed by this chapter.

17-44     (b) Make, cause to be made or permit to be made any false

17-45  entry in books, records or accounts with intent to defraud the State

18-1  or to evade the payment of the tax or any part of the tax imposed

18-2  by this chapter.

18-3      (c) Keep, cause to be kept or permit to be kept more than one

18-4  set of books, records or accounts with intent to defraud the State

18-5  or to evade the payment of the tax or any part of the tax imposed

18-6  by this chapter.

18-7      2.  Any person who violates the provisions of subsection 1 is

18-8  guilty of a gross misdemeanor.

18-9      Sec. 59.  Title 32 of NRS is hereby amended by adding thereto

18-10  a new chapter to consist of the provisions set forth as sections 60 to

18-11  93, inclusive, of this act.

18-12     Sec. 60.  As used in this chapter, unless the context otherwise

18-13  requires, the words and terms defined in sections 61 to 68,

18-14  inclusive, of this act have the meanings ascribed to them in those

18-15  sections.

18-16     Sec. 61.  “Business” means any activity engaged in or caused

18-17  to be engaged in with the object of gain, benefit or advantage,

18-18  either direct or indirect, to any person or governmental entity.

18-19     Sec. 62.  1.  “Business entity” includes:

18-20     (a) A corporation, partnership, proprietorship, limited-liability

18-21  company, business association, joint venture, limited-liability

18-22  partnership, business trust and their equivalents organized under

18-23  the laws of this state or another jurisdiction and any other type of

18-24  entity that engages in business; and

18-25     (b) A natural person engaging in a business if he is deemed to

18-26  be a business entity pursuant to section 74 of this act.

18-27     2.  The term does not include:

18-28     (a) A governmental entity;

18-29     (b) A nonprofit religious, charitable, fraternal or other

18-30  organization that qualifies as a tax-exempt organization pursuant

18-31  to 26 U.S.C. § 501(c), unless the organization has taxable income

18-32  for the purposes of federal income taxation from any unrelated

18-33  trade or business, as defined in 26 U.S.C. § 513; or

18-34     (c) A person who operates a business from his home and earns

18-35  from that business not more than 66 2/3 percent of the average

18-36  annual wage, as computed for the preceding calendar year

18-37  pursuant to chapter 612 of NRS and rounded to the nearest

18-38  hundred dollars.

18-39     Sec. 63.  “Commission” means the Nevada Tax Commission.

18-40     Sec. 64.  “Engaging in a business” means commencing,

18-41  conducting or continuing a business, the exercise of corporate or

18-42  franchise powers regarding a business, and the liquidation of a

18-43  business entity which is or was engaging in a business when the

18-44  liquidator holds itself out to the public as conducting that

18-45  business.

19-1      Sec. 65.  “Gross revenue” means the total amount received or

19-2  receivable on the use, sale or exchange of property or capital or

19-3  for the performance of services, from any transaction involving a

19-4  business entity, without any reduction for the basis of property

19-5  sold, the cost of goods or services sold, or any other expense of the

19-6  business entity.

19-7      Sec. 66.  1.  “Pass-through revenue” means revenue

19-8  received by a business entity solely on behalf of another in a

19-9  disclosed agency capacity, including revenue received as a broker,

19-10  bailee, consignee or auctioneer, notwithstanding that the business

19-11  entity may incur liability, primarily or secondarily, in a

19-12  transaction in its capacity as an agent.

19-13     2.  “Pass-through revenue” includes reimbursement for

19-14  advances made by a business entity on behalf of a customer or

19-15  client, other than with respect to services rendered or with respect

19-16  to purchases of goods by the business entity in carrying out the

19-17  business in which it engages.

19-18     Sec. 67.  “Total amount received or receivable” means the

19-19  total sum of any money and the fair market value of any other

19-20  property or services received or receivable, including, without

19-21  limitation, rents, royalties, interest and dividends, and aggregate

19-22  net gains realized from the sale or exchange of stocks, bonds,

19-23  asset-backed securities, investment and trading assets and other

19-24  evidence of indebtedness.

19-25     Sec. 68.  “Total revenue” means gross revenue minus:

19-26     1.  Any revenue which this state is prohibited from taxing

19-27  pursuant to the Constitution, laws or treaties of the United States

19-28  or the Nevada Constitution.

19-29     2.  Any revenue received by a natural person from the rental

19-30  of not more than four residential units.

19-31     3.  Any revenue from the sale of agricultural products at

19-32  wholesale.

19-33     4.  If a business entity pays a tax on premiums pursuant to

19-34  title 57 of NRS, the gross revenue of the business entity derived

19-35  from direct premiums written.

19-36     5.  If a business entity pays a license fee pursuant to NRS

19-37  463.370, the total sum of all amounts specifically included by

19-38  statute in and all amounts specifically excluded by statute from the

19-39  calculation of that fee for the business entity.

19-40     6.  If a business entity pays a tax on the net proceeds of

19-41  minerals pursuant to chapter 362 of NRS, the gross yield of the

19-42  business entity from which those net proceeds are determined.

19-43     7.  Any operating revenue of a public utility for the provision

19-44  of electric, gas, water or sewer service which is operated or

19-45  regulated by a governmental entity.

20-1      8.  Any revenue of a nonprofit religious, charitable, fraternal

20-2  or other organization that qualifies as a tax-exempt organization

20-3  pursuant to 26 U.S.C. § 501(c), except the gross revenue of the

20-4  organization from an unrelated trade or business, as defined in 26

20-5  U.S.C. § 513.

20-6      9.  Any revenue from the operation of a vending stand

20-7  pursuant to NRS 426.640.

20-8      10.  Any revenue received by a certified disadvantaged

20-9  business enterprise.

20-10     Sec. 69.  The Legislature hereby finds and declares that the

20-11  fee imposed by this chapter on a business entity must not be

20-12  construed as a fee or tax upon the customers of the business

20-13  entity, but as a fee which is imposed upon and collectible from the

20-14  business entity and which constitutes part of the operating

20-15  overhead of the business entity.

20-16     Sec. 70.  The Department shall:

20-17     1.  Administer and enforce the provisions of this chapter, and

20-18  may adopt such regulations as it deems appropriate for that

20-19  purpose.

20-20     2.  Deposit all fees, interest and penalties it receives pursuant

20-21  to this chapter in the State Treasury for credit to the State General

20-22  Fund.

20-23     Sec. 71.  1.  Each person responsible for maintaining the

20-24  records of a business entity shall:

20-25     (a) Keep such records as may be necessary to determine the

20-26  amount of its liability pursuant to the provisions of this chapter;

20-27     (b) Preserve those records for 4 years or until any litigation or

20-28  prosecution pursuant to this chapter is finally determined,

20-29  whichever is longer; and

20-30     (c) Make the records available for inspection by the

20-31  Department upon demand at reasonable times during regular

20-32  business hours.

20-33     2.  For the purposes of this section, “record” includes any

20-34  federal income tax return filed by a business entity with the

20-35  Internal Revenue Service.

20-36     3.  Any person who violates the provisions of subsection 1 is

20-37  guilty of a misdemeanor.

20-38     Sec. 72.  1.  To verify the accuracy of any return filed or, if

20-39  no return is filed by a business entity, to determine the amount

20-40  required to be paid, the Department, or any person authorized in

20-41  writing by the Department, may examine the books, papers and

20-42  records of any person or business entity that may be liable for the

20-43  fee imposed by this chapter.

20-44     2.  Any person or business entity which may be liable for the

20-45  fee imposed by this chapter and which keeps outside of this state

21-1  its books, papers and records relating thereto shall pay to the

21-2  Department an amount equal to the allowance provided for state

21-3  officers and employees generally while traveling outside of the

21-4  State for each day, or fraction thereof, during which an employee

21-5  of the Department is engaged in examining those documents, plus

21-6  any other actual expenses incurred by the employee while he is

21-7  absent from his regular place of employment to examine those

21-8  documents.

21-9      Sec. 72.5.  The Executive Director may request from any other

21-10  governmental agency or officer such information as he deems

21-11  necessary to carry out the provisions of this chapter. If the

21-12  Executive Director obtains any confidential information pursuant

21-13  to such a request, he shall maintain the confidentiality of that

21-14  information in the same manner and to the same extent as

21-15  provided by law for the agency or officer from whom the

21-16  information was obtained.

21-17     Sec. 73.  1.  Except as otherwise provided in this section and

21-18  NRS 360.250, the records and files of the Department concerning

21-19  the administration of this chapter are confidential and privileged.

21-20  The Department, and any employee engaged in the administration

21-21  of this chapter or charged with the custody of any such records or

21-22  files, shall not disclose any information obtained from the

21-23  Department’s records or files or from any examination,

21-24  investigation or hearing authorized by the provisions of this

21-25  chapter. Neither the Department nor any employee of the

21-26  Department may be required to produce any of the records, files

21-27  and information for the inspection of any person or for use in any

21-28  action or proceeding.

21-29     2.  The records and files of the Department concerning the

21-30  administration of this chapter are not confidential and privileged

21-31  in the following cases:

21-32     (a) Testimony by a member or employee of the Department

21-33  and production of records, files and information on behalf of the

21-34  Department or the business entity that paid the fee in any action or

21-35  proceeding pursuant to the provisions of this chapter if that

21-36  testimony or the records, files or information, or the facts shown

21-37  thereby, are directly involved in the action or proceeding.

21-38     (b) Delivery to the person who paid the fee or his authorized

21-39  representative of a copy of any return or other document filed by

21-40  him pursuant to this chapter.

21-41     (c) Publication of statistics so classified as to prevent the

21-42  identification of a particular business entity or document.

21-43     (d) Exchanges of information with the Internal Revenue

21-44  Service in accordance with compacts made and provided for in

21-45  such cases.

22-1      (e) Disclosure in confidence to the Governor or his agent in

22-2  the exercise of the Governor’s general supervisory powers, or to

22-3  any person authorized to audit the accounts of the Department in

22-4  pursuance of an audit, or to the Attorney General or other legal

22-5  representative of the State in connection with an action or

22-6  proceeding pursuant to this chapter, or to any agency of this or

22-7  any other state charged with the administration or enforcement of

22-8  laws relating to taxation.

22-9      (f) Exchanges of information pursuant to subsection 3.

22-10     3.  The Commission may agree with any county fair and

22-11  recreation board or the governing body of any county, city or town

22-12  for the continuing exchange of information concerning taxpayers.

22-13     Sec. 74.  A natural person engaging in a business shall be

22-14  deemed to be a business entity that is subject to the provisions of

22-15  this chapter if the person files with the Internal Revenue Service a

22-16  Schedule C (Form 1040), Profit or Loss From Business Form, or

22-17  its equivalent or successor form, a Schedule E (Form 1040),

22-18  Supplemental Income and Loss Form, or its equivalent or

22-19  successor form, or a Schedule F (Form 1040), Profit or Loss

22-20  From Farming Form, or its equivalent or successor form, for the

22-21  business.

22-22     Sec. 75.  1.  A quarterly franchise fee is hereby imposed

22-23  upon each business entity for the privilege of engaging in a

22-24  business in this state at the rate of:

 

22-25    Annual Total RevenueFranchise Fee per

22-26      of Business EntityCalendar Quarter

 

22-27  More than $0 but less than $100,000$0

22-28  $100,000 or more but less than $200,000.... $30

22-29  $200,000 or more but less than $300,000.... $60

22-30  $300,000 or more but less than $400,000.... $90

22-31  $400,000 or more but less than $500,000.. $120

22-32  $500,000 or more but less than $750,000.. $175

22-33  $750,000 or more but less than $1,000,000.. $240

22-34  $1,000,000 or more but less than $1,500,000.. $350

22-35  $1,500,000 or more but less than $2,000,000.. $480

22-36  $2,000,000 or more but less than $2,500,000.. $620

22-37  $2,500,000 or more but less than $3,000,000.. $750

22-38  $3,000,000 or more but less than $4,000,000.. $950

22-39  $4,000,000 or more but less than $5,000,000. $1,200

22-40  $5,000,000 or more but less than $7,500,000. $1,700

22-41  $7,500,000 or more but less than $10,000,000. $2,400

22-42  $10,000,000 or more but less than $20,000,000. $3,500

 

23-1  $20,000,000 or more. $7,000

23-2      plus $3,500 for each additional $10,000,000

 

23-3      2.  The fee for each calendar quarter is due on the last day of

23-4  the quarter and must be paid on or before the last day of the

23-5  month immediately following the quarter. The business entity

23-6  shall estimate its annual total revenue for the fiscal year in which

23-7  the franchise fee is being paid for the purposes of determining the

23-8  amount of the franchise fee that is due.

23-9      3.  Upon determination of the actual annual total revenue of

23-10  the business entity for that fiscal year, the business entity shall

23-11  reconcile the amount due from franchise fees for the year. If the

23-12  amount of franchise fees paid exceeds the amount actually due

23-13  from the business entity, the excess fees must be credited against

23-14  future franchise fees payable by the business entity. If the amount

23-15  of franchise fees paid was less than the amount due, the amount

23-16  due remaining unpaid shall be deemed, for the purposes of NRS

23-17  360.417, to constitute a failure to pay the fee within the time

23-18  required pursuant to this section.

23-19     4.  Each business entity engaging in a business in this state

23-20  shall file with the Department a return on a form prescribed by the

23-21  Department, together with the remittance of any fee due pursuant

23-22  to this chapter, on or before the last day of the month immediately

23-23  following the calendar quarter for which the payment is being

23-24  made. The form must provide each business entity with an

23-25  opportunity for account reconciliation.

23-26     Sec. 76.  1.  Except as otherwise provided in this section, the

23-27  total revenue of a business entity in this state must be computed

23-28  for each fiscal year based upon the accounting method used by the

23-29  business entity to compute its income for the purposes of federal

23-30  income taxation. If a business entity does not regularly use a

23-31  single accounting method, or if the Department determines that

23-32  the accounting method used by the business entity does not clearly

23-33  reflect the total revenue of the business entity in this state, the

23-34  calculation of that revenue must be made on the basis of such an

23-35  accounting method as, in the opinion of the Department, clearly

23-36  reflects the total revenue of the business entity in this state.

23-37     2.  If a business entity is engaged in more than one type of

23-38  business, the business entity:

23-39     (a) May, in computing its total revenue in this state, use a

23-40  different accounting method for each of those types of business;

23-41  and

23-42     (b) Shall compute its total revenue in this state for each of

23-43  those types of businesses based upon the accounting method used

24-1  by the business entity to compute its income for that type of

24-2  business for the purposes of federal income taxation.

24-3      3.  If a business entity changes the accounting method upon

24-4  which it computes its income for the purposes of federal income

24-5  taxation, the business entity shall, before using that method to

24-6  compute its total revenue in this state, provide the Department

24-7  with written notification of the change in its accounting method.

24-8  If:

24-9      (a) The business entity or any of its owners, officers,

24-10  employees, agents or representatives are required, on behalf of the

24-11  business entity, to obtain the consent of the Internal Revenue

24-12  Service to the change in its accounting method, the business entity

24-13  shall include a notarized copy of that consent in its written

24-14  notification to the Department; or

24-15     (b) The business entity is not required to obtain the consent of

24-16  the Internal Revenue Service to the change in its accounting

24-17  method, the business entity shall obtain the consent of the

24-18  Department to the change in its accounting method before using

24-19  that method to compute its total revenue in this state.

24-20     4.  If a business entity fails to comply with the provisions of

24-21  subsections 1 and 2, any required change in the accounting

24-22  method does not affect the imposition and calculation of any

24-23  penalty, or the calculation of any additional amount of franchise

24-24  fees due, pursuant to this chapter.

24-25     Sec. 77.  In calculating the franchise fee of a business entity

24-26  pursuant to this chapter, the business entity is entitled to deduct

24-27  from its total revenue:

24-28     1.  Any revenue upon which this state is prohibited from

24-29  imposing a franchise fee pursuant to the Constitution or laws of

24-30  the United States or the Nevada Constitution.

24-31     2.  The amount of any federal, state or local governmental

24-32  fuel taxes collected by the business entity.

24-33     3.  Any revenue of the business entity attributable to interest

24-34  upon any bonds or securities of the Federal Government, the State

24-35  of Nevada or a political subdivision of this state.

24-36     4.  Any pass-through revenue of the business entity.

24-37     5.  Any revenue received as dividends or distributions by a

24-38  parent organization from the capital account of a subsidiary entity

24-39  of the parent organization.

24-40     6.  Any revenue received by a hospital or provider of health

24-41  care from a governmental entity.

24-42     7.  Any cash discounts the business entity allows a purchaser

24-43  of property, rights or services.

25-1      8.  Any indebtedness to the business entity that is impossible

25-2  or impracticable to collect and which is written off by the business

25-3  entity as a bad debt for purposes of federal income taxation.

25-4      9.  Any counterfeit currency received by the business entity for

25-5  which the business entity is not reimbursed.

25-6      10.  The amount of any payments received by the business

25-7  entity upon claims for health, casualty or life insurance.

25-8      11.  The cost of all payments made to contractors and

25-9  subcontractors by a business entity that is in the business of

25-10  developing improved real property and who sells that improved

25-11  real property to a person who is not in the business of developing

25-12  real property. The amount of the deduction must not exceed the

25-13  gross revenue for the transaction.

25-14     12.  Any promotional allowances by the business entity.

25-15     13.  The gross revenue attributable to damaged or returned

25-16  merchandise.

25-17     Sec. 78.  1.  The Department shall adopt regulations

25-18  providing for the allocation or apportionment of the liability for

25-19  franchise fees pursuant to this chapter of business entities

25-20  engaging in a business both within and outside of this state. The

25-21  regulations must:

25-22     (a) Except as otherwise provided in this section, be consistent

25-23  with the methods of dividing income contained in the Uniform

25-24  Division of Income for Tax Purposes Act.

25-25     (b) If the business consists of financial activity, as defined in

25-26  the Uniform Division of Income for Tax Purposes Act, be

25-27  consistent with the Recommended Formula for the Apportionment

25-28  and Allocation of Net Income of Financial Institutions.

25-29     2.  As used in this section:

25-30     (a) “Recommended Formula for the Apportionment and

25-31  Allocation of Net Income of Financial Institutions” means the

25-32  provisions of the Recommended Formula for the Apportionment

25-33  and Allocation of Net Income of Financial Institutions adopted by

25-34  the Multistate Tax Commission, as those provisions existed on

25-35  July 1, 2003.

25-36     (b) “Uniform Division of Income for Tax Purposes Act”

25-37  means the provisions of the Uniform Division of Income for Tax

25-38  Purposes Act approved by the National Conference of

25-39  Commissioners on Uniform State Laws, as those provisions

25-40  existed on July 1, 2003.

25-41     Sec. 79.  The Department shall, upon application by a

25-42  business entity engaging in a business both within and outside of

25-43  this state, reduce the liability of the business entity for franchise

25-44  fees pursuant to this chapter to the extent required by the

25-45  Constitution or laws of the United States or the Nevada

26-1  Constitution, as a result of the tax liability of the business entity to

26-2  other states and their political subdivisions.

26-3      Sec. 80.  1.  If the Department determines, after notice and

26-4  hearing, that:

26-5      (a) A business entity and one or more of its affiliated business

26-6  entities are engaged in the same or a similar type of business; and

26-7      (b) The primary or a substantial purpose for engaging in that

26-8  type of business through affiliated business entities is to avoid or

26-9  to reduce liability for the franchise fees imposed by this chapter,

26-10  the Department shall require the business entity and one or more

26-11  of its affiliated business entities to file a consolidated return for

26-12  the purposes of this chapter.

26-13     2.  For the purposes of this section:

26-14     (a) “Affiliated business entity” means a business entity that

26-15  directly, or indirectly through one or more intermediaries,

26-16  controls, is controlled by or is under common control with,

26-17  another specified business entity.

26-18     (b) “Control,” as used in the terms “controls,” “controlled by”

26-19  and “under common control with,” means the possession, directly

26-20  or indirectly, of the power to direct or cause the direction of the

26-21  management and policies of a business entity, whether through

26-22  the ownership of voting securities, by contract or otherwise.

26-23     Sec. 81.  Upon written application made before the date on

26-24  which payment must be made, the Department may for good cause

26-25  extend by 30 days the time within which a business entity is

26-26  required to pay the franchise fee imposed by this chapter. If the

26-27  franchise fee is paid during the period of extension, no penalty or

26-28  late charge may be imposed for failure to pay at the time required,

26-29  but the business entity shall pay interest at the rate of 1 percent

26-30  per month from the date on which the amount would have been

26-31  due without the extension until the date of payment, unless

26-32  otherwise provided in NRS 360.232 or 360.320.

26-33     Sec. 82.  The remedies of the State provided for in this

26-34  chapter are cumulative, and no action taken by the Department or

26-35  the Attorney General constitutes an election by the State to pursue

26-36  any remedy to the exclusion of any other remedy for which

26-37  provision is made in this chapter.

26-38     Sec. 83.  If the Department determines that any franchise fee,

26-39  penalty or interest has been paid more than once or has been

26-40  erroneously or illegally collected or computed, the Department

26-41  shall set forth that fact in the records of the Department and

26-42  certify to the State Board of Examiners the amount collected in

26-43  excess of the amount legally due and the business entity or person

26-44  from which it was collected or by whom it was paid. If approved by

26-45  the State Board of Examiners, the excess amount collected or paid

27-1  must be credited on any amounts then due from the person or

27-2  business entity under this chapter, and the balance refunded to the

27-3  person or business entity, or its successors, administrators or

27-4  executors.

27-5      Sec. 84.  1.  Except as otherwise provided in NRS 360.235

27-6  and 360.395:

27-7      (a) No refund may be allowed unless a claim for it is filed with

27-8  the Department within 3 years after the last day of the month

27-9  immediately following the calendar quarter for which the

27-10  overpayment was made.

27-11     (b) No credit may be allowed after the expiration of the period

27-12  specified for filing claims for refund unless a claim for credit is

27-13  filed with the Department within that period.

27-14     2.  Each claim must be in writing and must state the specific

27-15  grounds upon which the claim is founded.

27-16     3.  Failure to file a claim within the time prescribed in this

27-17  chapter constitutes a waiver of any demand against the State on

27-18  account of overpayment.

27-19     4.  Within 30 days after rejecting any claim in whole or in

27-20  part, the Department shall serve notice of its action on the

27-21  claimant in the manner prescribed for service of notice of a

27-22  deficiency determination.

27-23     Sec. 85.  1.  Except as otherwise provided in this section and

27-24  NRS 360.320, interest must be paid upon any overpayment of any

27-25  amount of the franchise fee imposed by this chapter at the rate of

27-26  0.5 percent per month, or fraction thereof, from the last day of the

27-27  month immediately following the calendar quarter for which the

27-28  overpayment was made. No refund or credit may be made of any

27-29  interest imposed upon the person or business entity making the

27-30  overpayment with respect to the amount being refunded or

27-31  credited.

27-32     2.  The interest must be paid:

27-33     (a) In the case of a refund, to the last day of the calendar

27-34  month following the date upon which the person making the

27-35  overpayment, if he has not already filed a claim, is notified by

27-36  the Department that a claim may be filed or the date upon which

27-37  the claim is certified to the State Board of Examiners, whichever is

27-38  earlier.

27-39     (b) In the case of a credit, to the same date as that to which

27-40  interest is computed on the franchise fee or the amount against

27-41  which the credit is applied.

27-42     3.  If the Department determines that any overpayment has

27-43  been made intentionally or by reason of carelessness, it shall not

27-44  allow any interest on the overpayment.

28-1      Sec. 86.  1.  No injunction, writ of mandate or other legal or

28-2  equitable process may issue in any suit, action or proceeding in

28-3  any court against this state or against any officer of the State to

28-4  prevent or enjoin the collection under this chapter of the franchise

28-5  fee imposed by this chapter or any amount of the franchise fee,

28-6  penalty or interest required to be collected.

28-7      2.  No suit or proceeding may be maintained in any court for

28-8  the recovery of any amount alleged to have been erroneously or

28-9  illegally determined or collected unless a claim for refund or credit

28-10  has been filed.

28-11     Sec. 87.  1.  Within 90 days after a final decision upon a

28-12  claim filed pursuant to this chapter is rendered by the

28-13  Commission, the claimant may bring an action against the

28-14  Department on the grounds set forth in the claim in a court of

28-15  competent jurisdiction in Carson City, the county of this state

28-16  where the claimant resides or maintains his principal place of

28-17  business or a county in which any relevant proceedings were

28-18  conducted by the Department, for the recovery of the whole or any

28-19  part of the amount with respect to which the claim has been

28-20  disallowed.

28-21     2.  Failure to bring an action within the time specified

28-22  constitutes a waiver of any demand against the State on account of

28-23  alleged overpayments.

28-24     Sec. 88.  1.  If the Department fails to mail notice of action

28-25  on a claim within 6 months after the claim is filed, the claimant

28-26  may consider the claim disallowed and file an appeal with the

28-27  Commission within 30 days after the last day of the 6-month

28-28  period. If the claimant is aggrieved by the decision of the

28-29  Commission rendered on appeal, the claimant may, within 90 days

28-30  after the decision is rendered, bring an action against the

28-31  Department on the grounds set forth in the claim for the recovery

28-32  of the whole or any part of the amount claimed as an

28-33  overpayment.

28-34     2.  If judgment is rendered for the plaintiff, the amount of the

28-35  judgment must first be credited towards any franchise fees due

28-36  from the plaintiff.

28-37     3.  The balance of the judgment must be refunded to the

28-38  plaintiff.

28-39     Sec. 89.  In any judgment, interest must be allowed at the rate

28-40  of 6 percent per annum upon the amount found to have been

28-41  illegally collected from the date of payment of the amount to the

28-42  date of allowance of credit on account of the judgment, or to a

28-43  date preceding the date of the refund warrant by not more than 30

28-44  days. The date must be determined by the Department.

29-1      Sec. 90.  A judgment may not be rendered in favor of the

29-2  plaintiff in any action brought against the Department to recover

29-3  any amount paid when the action is brought by or in the name of

29-4  an assignee of the business entity paying the amount or by any

29-5  person other than the person or business entity which paid the

29-6  amount.

29-7      Sec. 91.  1.  The Department may recover a refund, or any

29-8  part thereof, which is erroneously made and any credit or part

29-9  thereof which is erroneously allowed in an action brought in a

29-10  court of competent jurisdiction in Carson City or Clark County in

29-11  the name of the State of Nevada.

29-12     2.  The action must be tried in Carson City or Clark County

29-13  unless the court, with the consent of the Attorney General, orders

29-14  a change of place of trial.

29-15     3.  The Attorney General shall prosecute the action, and the

29-16  provisions of NRS, the Nevada Rules of Civil Procedure and the

29-17  Nevada Rules of Appellate Procedure relating to service of

29-18  summons, pleadings, proofs, trials and appeals are applicable to

29-19  the proceedings.

29-20     Sec. 92.  1.  If any amount in excess of $25 has been

29-21  illegally determined, either by the Department or by the person

29-22  filing the return, the Department shall certify this fact to the State

29-23  Board of Examiners, and the latter shall authorize the

29-24  cancellation of the amount upon the records of the Department.

29-25     2.  If an amount not exceeding $25 has been illegally

29-26  determined, either by the Department or by the person or business

29-27  entity filing the return, the Department, without certifying this fact

29-28  to the State Board of Examiners, shall authorize the cancellation

29-29  of the amount upon the records of the Department.

29-30     Sec. 93.  1.  A person shall not:

29-31     (a) Make, cause to be made or permit to be made any false or

29-32  fraudulent return or declaration or false statement in any return

29-33  or declaration with intent to defraud the State or to evade payment

29-34  of the franchise fee or any part of the franchise fee imposed by

29-35  this chapter.

29-36     (b) Make, cause to be made or permit to be made any false

29-37  entry in books, records or accounts with intent to defraud the State

29-38  or to evade the payment of the franchise fee or any part of the

29-39  franchise fee imposed by this chapter.

29-40     (c) Keep, cause to be kept or permit to be kept more than one

29-41  set of books, records or accounts with intent to defraud the State

29-42  or to evade the payment of the franchise fee or any part of the

29-43  franchise fee imposed by this chapter.

29-44     2.  Any person who violates the provisions of subsection 1 is

29-45  guilty of a gross misdemeanor.

30-1      Sec. 93.10. Title 32 of NRS is hereby amended by adding

30-2  thereto a new chapter to consist of the provisions set forth as

30-3  sections 93.12 to 93.72, inclusive, of this act.

30-4      Sec. 93.12.  As used in this chapter, unless the context

30-5  otherwise requires, the words and terms defined in sections 93.14

30-6  to 93.24, inclusive, of this act have the meanings ascribed to them

30-7  in those sections.

30-8      Sec. 93.14.  “Commission” means the Nevada Tax

30-9  Commission.

30-10     Sec. 93.16.  “Federal taxable income” means the taxable

30-11  income of a financial institution for a taxable year, as set forth in

30-12  the federal income tax return filed by the financial institution for

30-13  that year with the Internal Revenue Service, and any other taxable

30-14  income of a financial institution for a taxable year under federal

30-15  law, regardless of whether it is actually reported.

30-16     Sec. 93.18.  “Financial institution” means an institution

30-17  licensed, registered or otherwise authorized to do business in this

30-18  state pursuant to the provisions of chapter 604, 645B, 645E or 649

30-19  of NRS or title 55 or 56 of NRS, a similar institution chartered or

30-20  licensed pursuant to federal law and doing business in this state or

30-21  a person conducting loan or credit card processing activities in

30-22  this state. The term does not include:

30-23     1.  A nonprofit organization that is recognized as exempt from

30-24  taxation pursuant to 26 U.S.C. § 501(c).

30-25     2.  A credit union organized under the provisions of chapter

30-26  678 of NRS or the Federal Credit Union Act.

30-27     Sec. 93.19.  “Gross income” means all gains, profits and

30-28  other income earned by a financial institution from its operation

30-29  as a financial institution, including, without limitation:

30-30     1.  All rents, compensation for services, commissions and

30-31  brokerage and other fees;

30-32     2.  All gains or profits from the sale or other disposition of

30-33  any real or personal property; and

30-34     3.  All recoveries on losses sustained in the ordinary course of

30-35  business,

30-36  and excluding any income which this state is prohibited from

30-37  taxing pursuant to the laws or Constitution of the United States or

30-38  the Nevada Constitution.

30-39     Sec. 93.20.  “Nevada taxable income” means the amount of

30-40  the federal taxable income of a financial institution, as adjusted

30-41  pursuant to section 93.42 of this act.

30-42     Sec. 93.22.  “Taxable year” means the taxable year used by

30-43  the financial institution for the purposes of federal income

30-44  taxation.

31-1      Sec. 93.24.  “Taxpayer” means any person liable for a tax

31-2  imposed pursuant to this chapter.

31-3      Sec. 93.26.  The Department shall:

31-4      1.  Administer and enforce the provisions of this chapter, and

31-5  may adopt such regulations as it deems appropriate for that

31-6  purpose.

31-7      2.  Deposit all taxes, interest and penalties it receives pursuant

31-8  to this chapter in the State Treasury for credit to the State General

31-9  Fund.

31-10     Sec. 93.28.  1.  Each person responsible for maintaining the

31-11  records of a financial institution shall:

31-12     (a) Keep such records as may be necessary to determine the

31-13  amount of its liability pursuant to the provisions of this chapter;

31-14     (b) Preserve those records for 4 years or until any litigation or

31-15  prosecution pursuant to this chapter is finally determined,

31-16  whichever is longer; and

31-17     (c) Make the records available for inspection by the

31-18  Department upon demand at reasonable times during regular

31-19  business hours.

31-20     2.  For the purposes of this section, “record” includes any

31-21  federal income tax return filed by a financial institution with the

31-22  Internal Revenue Service.

31-23     3.  Any person who violates the provisions of subsection 1 is

31-24  guilty of a misdemeanor.

31-25     Sec. 93.30. 1.  To verify the accuracy of any return filed or,

31-26  if no return is filed by a financial institution, to determine the

31-27  amount required to be paid, the Department, or any person

31-28  authorized in writing by the Department, may examine the books,

31-29  papers and records of any person or financial institution that may

31-30  be liable for the tax imposed by this chapter.

31-31     2.  Any person or financial institution which may be liable for

31-32  the tax imposed by this chapter and which keeps outside of this

31-33  state its books, papers and records relating thereto shall pay to the

31-34  Department an amount equal to the allowance provided for state

31-35  officers and employees generally while traveling outside of the

31-36  State for each day, or fraction thereof, during which an employee

31-37  of the Department is engaged in examining those documents, plus

31-38  any other actual expenses incurred by the employee while he is

31-39  absent from his regular place of employment to examine those

31-40  documents.

31-41      Sec. 93.32. The Executive Director may request from any

31-42  other governmental agency or officer such information as he

31-43  deems necessary to carry out the provisions of this chapter. If the

31-44  Executive Director obtains any confidential information pursuant

31-45  to such a request, he shall maintain the confidentiality of that

32-1  information in the same manner and to the same extent as

32-2  provided by law for the agency or officer from whom the

32-3  information was obtained.

32-4      Sec. 93.34. 1.  Except as otherwise provided in this section

32-5  and NRS 360.250, the records and files of the Department

32-6  concerning the administration of this chapter are confidential and

32-7  privileged. The Department, and any employee engaged in the

32-8  administration of this chapter or charged with the custody of any

32-9  such records or files, shall not disclose any information obtained

32-10  from the Department’s records or files or from any examination,

32-11  investigation or hearing authorized by the provisions of this

32-12  chapter. Neither the Department nor any employee of the

32-13  Department may be required to produce any of the records, files

32-14  and information for the inspection of any person or for use in any

32-15  action or proceeding.

32-16     2.  The records and files of the Department concerning the

32-17  administration of this chapter are not confidential and privileged

32-18  in the following cases:

32-19     (a) Testimony by a member or employee of the Department

32-20  and production of records, files and information on behalf of the

32-21  Department or a taxpayer in any action or proceeding pursuant to

32-22  the provisions of this chapter if that testimony or the records, files

32-23  or information, or the facts shown thereby, are directly involved in

32-24  the action or proceeding.

32-25     (b) Delivery to a taxpayer or his authorized representative of a

32-26  copy of any return or other document filed by the taxpayer

32-27  pursuant to this chapter.

32-28     (c) Publication of statistics so classified as to prevent the

32-29  identification of a particular financial institution or document.

32-30     (d) Exchanges of information with the Internal Revenue

32-31  Service in accordance with compacts made and provided for in

32-32  such cases.

32-33     (e) Disclosure in confidence to the Governor or his agent in

32-34  the exercise of the Governor’s general supervisory powers, or to

32-35  any person authorized to audit the accounts of the Department in

32-36  pursuance of an audit, or to the Attorney General or other legal

32-37  representative of the State in connection with an action or

32-38  proceeding pursuant to this chapter, or to any agency of this or

32-39  any other state charged with the administration or enforcement of

32-40  laws relating to taxation.

32-41     (f) Exchanges of information pursuant to subsection 3.

32-42     3.  The Commission may agree with any county fair and

32-43  recreation board or the governing body of any county, city or town

32-44  for the continuing exchange of information concerning taxpayers.

33-1      Sec. 93.36. 1.  A franchise tax is hereby imposed upon each

33-2  financial institution for the privilege of engaging in business in

33-3  this state at the rate of 3 percent of the Nevada taxable income of

33-4  the financial institution each taxable year. The tax for each

33-5  taxable year is due on the last day of that taxable year.

33-6      2.  Each financial institution engaging in business in this

33-7  state during a taxable year shall file with the Department a return

33-8  on a form prescribed by the Department, together with the

33-9  remittance of any tax due pursuant to this chapter for that taxable

33-10  year, not later than the date the financial institution is required to

33-11  file its federal income tax return for that taxable year with the

33-12  Internal Revenue Service. The return required by this subsection

33-13  must include:

33-14     (a) A statement that the return is made under penalty of

33-15  perjury; and

33-16     (b) Such information as is required by the Department.

33-17     Sec. 93.38. 1.  In addition to the returns required by section

33-18  93.36 of this act, a financial institution that is a member of an

33-19  affiliated group and is engaged in a unitary business in this state

33-20  with one or more other members of the affiliated group shall file

33-21  with the Department such reports regarding the unitary business

33-22  as the Department determines is appropriate for the

33-23  administration and enforcement of the provisions of this chapter.

33-24     2.  The Department may allow two or more financial

33-25  institutions that are members of an affiliated group to file a

33-26  consolidated return for the purposes of this chapter if the financial

33-27  institutions are allowed to file a consolidated return for the

33-28  purposes of federal income taxation.

33-29     3.  As used in this section:

33-30     (a) “Affiliated group” means a group of two or more financial

33-31  institutions, each of which is controlled by a common owner or by

33-32  one or more of the members of the group.

33-33     (b) “Controlled by” means the possession, directly or

33-34  indirectly, of the power to direct or cause the direction of the

33-35  management and policies of a financial institution, whether

33-36  through the ownership of voting securities, by contract or

33-37  otherwise.

33-38     (c) “Unitary business” means a business characterized by

33-39  unity of ownership, functional integration, centralization of

33-40  management and economy of scale.

33-41     Sec. 93.40. 1.  If a financial institution files an amended

33-42  federal income tax return that reflects a change in income

33-43  required to be reported pursuant to this chapter, the financial

33-44  institution shall file an amended return with the Department not

33-45  later than the date it files the amended federal return.

34-1      2.  If a final determination of federal taxable income is made

34-2  under federal law and, pursuant to that determination, the federal

34-3  taxable income of a financial institution is found to differ from

34-4  that initially reported to the Internal Revenue Service, the

34-5  financial institution shall, within 30 days after the date of that

34-6  determination, report the determination to the Department in

34-7  writing, together with such information as the Department deems

34-8  appropriate.

34-9      3.  If, based upon an amended return or report filed pursuant

34-10  to this section, it appears that the tax imposed by this chapter has

34-11  not been fully assessed, the Department shall assess the deficiency,

34-12  with interest calculated at the rate and in the manner set forth in

34-13  NRS 360.417. Any assessment required by this subsection must be

34-14  made within 1 year after the Department receives the amended

34-15  return or report.

34-16     Sec. 93.42. 1.  In computing the Nevada taxable income of

34-17  a financial institution, its federal taxable income must be:

34-18     (a) Increased by:

34-19         (1) The amount of any deduction for the tax imposed by

34-20  section 93.36 of this act or the equivalent taxing statute of another

34-21  state;

34-22         (2) The amount of any net operating loss in the taxable

34-23  year that is carried back to previous taxable years pursuant to 26

34-24  U.S.C. § 172;

34-25         (3) The amount of any deduction claimed for the taxable

34-26  year pursuant to 26 U.S.C. § 172 which was previously used to

34-27  offset any increase required by this subsection; and

34-28         (4) Any interest or dividends on the obligations or securities

34-29  of any state or political subdivision of a state, other than this state

34-30  or a political subdivision of this state; and

34-31     (b) Decreased by:

34-32         (1) Any income that is exempt from taxation by this state

34-33  under the Constitution, laws or treaties of the United States or the

34-34  Nevada Constitution;

34-35         (2) Any interest income received on obligations of the

34-36  United States; and

34-37         (3) The amount of any refund of income tax received from

34-38  another state which has been included as income in computing

34-39  federal taxable income.

34-40     2.  After making the calculations required by subsection 1, the

34-41  resulting amount must be allocated or apportioned to this state in

34-42  accordance with the regulations adopted pursuant to section 93.44

34-43  of this act to determine the amount of the tax liability of the

34-44  financial institution. The Nevada taxable income of the financial

35-1  institution consists of the amount of the tax liability of the

35-2  financial institution determined pursuant to this subsection.

35-3      3.  The Department shall adopt regulations for the

35-4  administration of this section.

35-5      Sec. 93.44. The Department shall adopt regulations

35-6  providing for the allocation or apportionment to this state of the

35-7  tax liability of a financial institution pursuant to this chapter. If

35-8  the federal taxable income of a financial institution is derived

35-9  from business conducted both within and outside this state,

35-10  whether or not the financial institution is physically present in

35-11  another state or is subject to another state’s jurisdiction to impose

35-12  a tax on the financial institution, the apportionment factor for

35-13  determining the tax liability of the financial institution derived

35-14  from business conducted by it in this state must consist of a

35-15  fraction, the numerator of which is the gross income of the

35-16  financial institution from customers whose address is within this

35-17  state, and the denominator of which is the gross income of the

35-18  financial institution from its entire operation as a financial

35-19  institution in this state.

35-20     Sec. 93.46. 1.  For the purposes of this chapter, the method

35-21  of accounting and the taxable year used by a financial institution

35-22  must be the same as those used by the financial institution for the

35-23  purposes of federal income taxation. If the financial institution

35-24  does not regularly use a single method of accounting, the taxable

35-25  income of the financial institution must be computed under such a

35-26  method as the Department determines will fairly reflect that

35-27  income.

35-28     2.  If there is any change in the method of accounting or the

35-29  taxable year used by a financial institution for the purposes of

35-30  federal income taxation, the same change must be implemented

35-31  for the purposes of this chapter.

35-32     Sec. 93.48. Upon written application made before the date on

35-33  which a financial institution is otherwise required to file a return

35-34  and to pay the tax imposed by this chapter, the Department may:

35-35     1.  If the financial institution is granted an extension of time

35-36  by the Federal Government for the filing of its federal income tax

35-37  return, extend the time for filing the return required by this

35-38  chapter until not later than the date the financial institution is

35-39  required to file its federal income tax return pursuant to the

35-40  extension of time granted by the Federal Government. The

35-41  Department shall require, as a condition to the granting of any

35-42  extension pursuant to this subsection, the payment of the tax

35-43  estimated to be due pursuant to this chapter.

35-44     2.  For good cause, extend by 30 days the time within which

35-45  the financial institution is required to pay the tax. If the tax is paid

36-1  during a period of extension granted pursuant to this subsection,

36-2  no penalty or late charge may be imposed for failure to pay at the

36-3  time required, but the financial institution shall pay interest at the

36-4  rate of 1 percent per month from the date on which the amount

36-5  would have been due without the extension until the date of

36-6  payment, unless otherwise provided in NRS 360.232 or 360.320.

36-7      Sec. 93.50. The remedies of the State provided for in this

36-8  chapter are cumulative, and no action taken by the Department or

36-9  the Attorney General constitutes an election by the State to pursue

36-10  any remedy to the exclusion of any other remedy for which

36-11  provision is made in this chapter.

36-12     Sec. 93.52. If the Department determines that any tax,

36-13  penalty or interest has been paid more than once or has been

36-14  erroneously or illegally collected or computed, the Department

36-15  shall set forth that fact in the records of the Department and shall

36-16  certify to the State Board of Examiners the amount collected in

36-17  excess of the amount legally due and the financial institution or

36-18  person from which it was collected or by whom it was paid. If

36-19  approved by the State Board of Examiners, the excess amount

36-20  collected or paid must be credited on any amounts then due from

36-21  the person or financial institution under this chapter, and the

36-22  balance refunded to the person or financial institution, or its

36-23  successors, administrators or executors.

36-24     Sec. 93.54. 1.  Except as otherwise provided in NRS 360.235

36-25  and 360.395:

36-26     (a) No refund may be allowed unless a claim for it is filed with

36-27  the Department within 3 years after the last day of the month

36-28  immediately following the close of the taxable year for which the

36-29  overpayment was made.

36-30     (b) No credit may be allowed after the expiration of the period

36-31  specified for filing claims for refund unless a claim for credit is

36-32  filed with the Department within that period.

36-33     2.  Each claim must be in writing and must state the specific

36-34  grounds upon which the claim is founded.

36-35     3.  Failure to file a claim within the time prescribed in this

36-36  chapter constitutes a waiver of any demand against the State on

36-37  account of overpayment.

36-38     4.  Within 30 days after rejecting any claim in whole or in

36-39  part, the Department shall serve notice of its action on the

36-40  claimant in the manner prescribed for service of notice of a

36-41  deficiency determination.

36-42     Sec. 93.56. 1.  Except as otherwise provided in this section

36-43  and NRS 360.320, interest must be paid upon any overpayment of

36-44  any amount of the tax imposed by this chapter at the rate of 0.5

36-45  percent per month, or fraction thereof, from the last day of the

37-1  calendar month immediately following the calendar month in

37-2  which the overpayment was made. No refund or credit may be

37-3  made of any interest imposed upon the person or financial

37-4  institution making the overpayment with respect to the amount

37-5  being refunded or credited.

37-6      2.  The interest must be paid:

37-7      (a) In the case of a refund, to the last day of the calendar

37-8  month following the date upon which the person making the

37-9  overpayment, if he has not already filed a claim, is notified by

37-10  the Department that a claim may be filed or the date upon which

37-11  the claim is certified to the State Board of Examiners, whichever is

37-12  earlier.

37-13     (b) In the case of a credit, to the same date as that to which

37-14  interest is computed on the tax or the amount against which the

37-15  credit is applied.

37-16     3.  If the Department determines that any overpayment has

37-17  been made intentionally or by reason of carelessness, it shall not

37-18  allow any interest on the overpayment.

37-19     Sec. 93.58. 1.  No injunction, writ of mandate or other legal

37-20  or equitable process may issue in any suit, action or proceeding in

37-21  any court against this state or against any officer of the State to

37-22  prevent or enjoin the collection under this chapter of the tax

37-23  imposed by this chapter or any amount of tax, penalty or interest

37-24  required to be collected.

37-25     2.  No suit or proceeding may be maintained in any court for

37-26  the recovery of any amount alleged to have been erroneously or

37-27  illegally determined or collected unless a claim for refund or credit

37-28  has been filed.

37-29     Sec. 93.60. 1.  Within 90 days after a final decision upon a

37-30  claim filed pursuant to this chapter is rendered by the

37-31  Commission, the claimant may bring an action against the

37-32  Department on the grounds set forth in the claim in a court of

37-33  competent jurisdiction in Carson City, the county of this state

37-34  where the claimant resides or maintains his principal place of

37-35  business or a county in which any relevant proceedings were

37-36  conducted by the Department, for the recovery of the whole or any

37-37  part of the amount with respect to which the claim has been

37-38  disallowed.

37-39     2.  Failure to bring an action within the time specified

37-40  constitutes a waiver of any demand against the State on account of

37-41  alleged overpayments.

37-42     Sec. 93.62. 1.  If the Department fails to mail notice of

37-43  action on a claim within 6 months after the claim is filed, the

37-44  claimant may consider the claim disallowed and may file an

37-45  appeal with the Commission within 30 days after the last day of

38-1  the 6-month period. If the claimant is aggrieved by the decision of

38-2  the Commission rendered on appeal, the claimant may, within 90

38-3  days after the decision is rendered, bring an action against the

38-4  Department on the grounds set forth in the claim for the recovery

38-5  of the whole or any part of the amount claimed as an

38-6  overpayment.

38-7      2.  If judgment is rendered for the plaintiff, the amount of the

38-8  judgment must first be credited towards any tax due from the

38-9  plaintiff.

38-10     3.  The balance of the judgment must be refunded to the

38-11  plaintiff.

38-12     Sec. 93.64. In any judgment, interest must be allowed at the

38-13  rate of 6 percent per annum upon the amount found to have been

38-14  illegally collected from the date of payment of the amount to the

38-15  date of allowance of credit on account of the judgment, or to a

38-16  date preceding the date of the refund warrant by not more than 30

38-17  days. The date must be determined by the Department.

38-18     Sec. 93.66. A judgment may not be rendered in favor of the

38-19  plaintiff in any action brought against the Department to recover

38-20  any amount paid when the action is brought by or in the name of

38-21  an assignee of the financial institution paying the amount or by

38-22  any person other than the person or financial institution which

38-23  paid the amount.

38-24     Sec. 93.68. 1.  The Department may recover a refund, or

38-25  any part thereof, which is erroneously made and any credit or part

38-26  thereof which is erroneously allowed in an action brought in a

38-27  court of competent jurisdiction in Carson City or Clark County in

38-28  the name of the State of Nevada.

38-29     2.  The action must be tried in Carson City or Clark County

38-30  unless the court, with the consent of the Attorney General, orders

38-31  a change of place of trial.

38-32     3.  The Attorney General shall prosecute the action, and the

38-33  provisions of NRS, the Nevada Rules of Civil Procedure and the

38-34  Nevada Rules of Appellate Procedure relating to service of

38-35  summons, pleadings, proofs, trials and appeals are applicable to

38-36  the proceedings.

38-37     Sec. 93.70. 1.  If any amount in excess of $25 has been

38-38  illegally determined, either by the Department or by the person

38-39  filing the return, the Department shall certify this fact to the State

38-40  Board of Examiners, and the latter shall authorize the

38-41  cancellation of the amount upon the records of the Department.

38-42     2.  If an amount not exceeding $25 has been illegally

38-43  determined, either by the Department or by the person or financial

38-44  institution filing the return, the Department, without certifying

39-1  this fact to the State Board of Examiners, shall authorize the

39-2  cancellation of the amount upon the records of the Department.

39-3      Sec. 93.72. 1.  A person shall not:

39-4      (a) Make, cause to be made or permit to be made any false or

39-5  fraudulent return or declaration or false statement in any return

39-6  or declaration with intent to defraud the State or to evade payment

39-7  of the tax or any part of the tax imposed by this chapter.

39-8      (b) Make, cause to be made or permit to be made any false

39-9  entry in books, records or accounts with intent to defraud the State

39-10  or to evade the payment of the tax or any part of the tax imposed

39-11  by this chapter.

39-12     (c) Keep, cause to be kept or permit to be kept more than one

39-13  set of books, records or accounts with intent to defraud the State

39-14  or to evade the payment of the tax or any part of the tax imposed

39-15  by this chapter.

39-16     2.  Any person who violates the provisions of subsection 1 is

39-17  guilty of a gross misdemeanor.

39-18     Sec. 94.  Chapter 360 of NRS is hereby amended by adding

39-19  thereto the provisions set forth as sections 95 to 101, inclusive, of

39-20  this act.

39-21     Sec. 95.  The Nevada Tax Commission shall adopt

39-22  regulations providing for:

39-23     1.  The electronic submission of returns to the Department;

39-24  and

39-25     2.  The payment of taxes, fees, interest and penalties to the

39-26  Department through the use of credit cards, debit cards and

39-27  electronic transfers of money.

39-28     Sec. 96.  As used in sections 96 to 101, inclusive, of this act,

39-29  unless the context otherwise requires, the words and terms defined

39-30  in sections 97, 98 and 99 of this act have the meanings ascribed to

39-31  them in those sections.

39-32     Sec. 97.  1.  “Business” includes:

39-33     (a) A corporation, partnership, proprietorship, limited-liability

39-34  company, business association, joint venture, limited-liability

39-35  partnership, business trust and their equivalents organized under

39-36  the laws of this state or another jurisdiction and any other person

39-37  that conducts an activity for profit; and

39-38     (b) The activities of a natural person which are deemed to be a

39-39  business pursuant to section 100 of this act.

39-40     2.  The term does not include:

39-41     (a) A governmental entity;

39-42     (b) A nonprofit religious, charitable, fraternal or other

39-43  organization that qualifies as a tax-exempt organization pursuant

39-44  to 26 U.S.C. § 501(c), unless the organization has taxable income

40-1  for the purposes of federal income taxation from any unrelated

40-2  trade or business, as defined in 26 U.S.C. § 513;

40-3      (c) A person who operates a business from his home and earns

40-4  from that business not more than 66 2/3 percent of the average

40-5  annual wage, as computed for the preceding calendar year

40-6  pursuant to chapter 612 of NRS and rounded to the nearest

40-7  hundred dollars; or

40-8      (d) A business whose primary purpose is to create or produce

40-9  motion pictures. As used in this paragraph, “motion pictures” has

40-10  the meaning ascribed to it in NRS 231.020.

40-11     Sec. 98.  1.  “Employee” includes:

40-12     (a) A natural person who receives wages or other

40-13  remuneration from a business for personal services, including

40-14  commissions and bonuses and remuneration payable in a medium

40-15  other than cash; and

40-16     (b) A natural person engaged in the operation of a business.

40-17     2.  The term includes:

40-18     (a) A partner or other co-owner of a business; and

40-19     (b) Except as otherwise provided in subsection 3, a natural

40-20  person reported as an employee to the:

40-21         (1) Employment Security Division of the Department of

40-22  Employment, Training and Rehabilitation;

40-23         (2) Administrator of the Division of Industrial Relations of

40-24  the Department of Business and Industry; or

40-25         (3) Internal Revenue Service on an Employer’s Quarterly

40-26  Federal Tax Return (Form 941), Employer’s Monthly Federal

40-27  Tax Return (Form 941-M), Employer’s Annual Tax Return for

40-28  Agricultural Employees (Form 943), or any equivalent or

40-29  successor form.

40-30     3.  The term does not include:

40-31     (a) A business or an independent contractor performing

40-32  services on behalf of another business.

40-33     (b) A natural person who is retired or otherwise receiving

40-34  remuneration solely because of past service to the business.

40-35     (c) A newspaper carrier or the immediate supervisor of a

40-36  newspaper carrier who is an independent contractor of the

40-37  newspaper.

40-38     (d) A natural person who performs all of his duties for the

40-39  business outside of this state.

40-40     4.  An independent contractor is not an employee of a

40-41  business with which he contracts.

40-42     Sec. 99.  “Wages” means any remuneration paid for personal

40-43  services, including commissions, and bonuses and remuneration

40-44  payable in any medium other than cash.

41-1      Sec. 100.  The activity or activities conducted by a natural

41-2  person shall be deemed to be a business that is subject to the

41-3  provisions of sections 96 to 101, inclusive, of this act if the person

41-4  is required to file with the Internal Revenue Service a Schedule C

41-5  (Form 1040), Profit or Loss From Business Form, or its

41-6  equivalent or successor form, a Schedule E (Form 1040),

41-7  Supplemental Income and Loss Form, or its equivalent or

41-8  successor form, or a Schedule F (Form 1040), Profit or Loss

41-9  From Farming Form, or its equivalent or successor form, for the

41-10  activity or activities.

41-11     Sec. 101.  1.  Except as otherwise provided in subsection 8, a

41-12  person shall not conduct a business in this state unless he has a

41-13  business license issued by the Department.

41-14     2.  An application for a business license must:

41-15     (a) Be made upon a form prescribed by the Department;

41-16     (b) Set forth the name under which the applicant transacts or

41-17  intends to transact business and the location of his place or places

41-18  of business;

41-19     (c) Declare the estimated number of employees for the

41-20  previous calendar quarter;

41-21     (d) Be accompanied by a fee of $75; and

41-22     (e) Include any other information that the Department deems

41-23  necessary.

41-24     3.  The application must be signed by:

41-25     (a) The owner, if the business is owned by a natural person;

41-26     (b) A member or partner, if the business is owned by an

41-27  association or partnership; or

41-28     (c) An officer or some other person specifically authorized to

41-29  sign the application, if the business is owned by a corporation.

41-30     4.  If the application is signed pursuant to paragraph (c) of

41-31  subsection 3, written evidence of the signer’s authority must be

41-32  attached to the application.

41-33     5.  A person who has been issued a business license by the

41-34  Department shall submit a fee of $75 to the Department on or

41-35  before the last day of the month in which the anniversary date of

41-36  issuance of the business license occurs in each year, unless the

41-37  person submits a written statement to the Department, at least 10

41-38  days before the anniversary date, indicating that the person will

41-39  not be conducting business in this state after the anniversary date.

41-40     6.  The business license required to be obtained pursuant to

41-41  this section is in addition to any license to conduct business that

41-42  must be obtained from the local jurisdiction in which the business

41-43  is being conducted.

42-1      7.  For the purposes of sections 96 to 101, inclusive, of this

42-2  act, a person shall be deemed to conduct a business in this state if

42-3  a business for which the person is responsible:

42-4      (a) Is organized pursuant to title 7 of NRS, other than a

42-5  business organized pursuant to chapter 82 or 84 of NRS;

42-6      (b) Has an office or other base of operations in this state; or

42-7      (c) Pays wages or other remuneration to a natural person who

42-8  performs in this state any of the duties for which he is paid.

42-9      8.  A person who takes part in a trade show or convention

42-10  held in this state for a purpose related to conducting a business is

42-11  not required to obtain a business license specifically for that event.

42-12     Sec. 102.  NRS 360.095 is hereby amended to read as follows:

42-13      360.095  In the adoption of regulations, policies of

42-14  enforcement, and policies for auditing of taxpayers, with respect to

42-15  all taxes and fees for whose administration the Department is

42-16  responsible, the Nevada Tax Commission shall apply the following

42-17  principles:

42-18     1.  Forms, instructions and regulations governing the

42-19  computation of the amount of tax due must be brief and easily

42-20  understood.

42-21     2.  In cases where another authority, such as the United States

42-22  or a local government, also imposes a tax upon the same property or

42-23  revenue, the mechanism for collecting the tax imposed by the State

42-24  must be as nearly compatible with the collection of the other taxes

42-25  as is feasible.

42-26     3.  Unless a change is made necessary by statute or to preserve

42-27  compatibility with a tax imposed by another authority, the forms,

42-28  instructions and regulations must remain the same from year to year,

42-29  to make the taxpayer’s liability as predictable as is feasible.

42-30     4.  Exemptions or waivers, where permitted by statute, must be

42-31  granted:

42-32     (a) Equitably among eligible taxpayers; and

42-33     (b) As sparingly as is consistent with the legislative intent, to

42-34  retain the broadest feasible base for the tax affected.

42-35     5.  Audits and other procedures for enforcement must be

42-36  applied as uniformly as is feasible, not only as among persons

42-37  subject to a particular tax but also as among different taxes[.] , but

42-38  must consider a weighting of indicators of noncompliance.

42-39     6.  Collection of taxes due must be pursued in an equitable

42-40  manner, so that every taxpayer pays the full amount imposed by

42-41  law.

42-42     Sec. 103.  NRS 360.225 is hereby amended to read as follows:

42-43      360.225  1.  During the course of an investigation undertaken

42-44  pursuant to NRS 360.130 of a person claiming:

43-1      (a) A partial abatement of property taxes pursuant to

43-2  NRS 361.0687;

43-3      (b) [An exemption from taxes upon the privilege of doing

43-4  business in this state pursuant to NRS 364A.170;

43-5      (c)] A deferral of the payment of taxes on the sale of capital

43-6  goods pursuant to NRS 372.397 or 374.402; or

43-7      [(d)] (c) An abatement of taxes on the gross receipts from the

43-8  sale, storage, use or other consumption of eligible machinery or

43-9  equipment pursuant to NRS 374.357,

43-10  the Department shall investigate whether the person meets the

43-11  eligibility requirements for the abatement, partial abatement[,

43-12  exemption] or deferral that the person is claiming.

43-13     2.  If the Department finds that the person does not meet the

43-14  eligibility requirements for the abatement[, exemption] or deferral

43-15  which the person is claiming, the Department shall report its

43-16  findings to the Commission on Economic Development and take

43-17  any other necessary actions.

43-18     Sec. 104.  NRS 360.2935 is hereby amended to read as

43-19  follows:

43-20      360.2935  Except as otherwise provided in [NRS 361.485,] this

43-21  title, a taxpayer is entitled to receive on any overpayment of taxes,

43-22  after the offset required by NRS 360.320 has been made, a refund

43-23  together with interest at a rate determined pursuant to NRS 17.130.

43-24  No interest is allowed on a refund of any penalties or interest paid

43-25  by a taxpayer.

43-26     Sec. 105.  NRS 360.300 is hereby amended to read as follows:

43-27      360.300  1.  If a person fails to file a return or the Department

43-28  is not satisfied with the return or returns of any tax, franchise fee,

43-29  contribution or premium or amount of tax, franchise fee,

43-30  contribution or premium required to be paid to the State by any

43-31  person, in accordance with the applicable provisions of this chapter,

43-32  chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of

43-33  NRS, NRS 482.313, or chapter 585 or 680B of NRS , or sections 2

43-34  to 24, inclusive, 60 to 93, inclusive, or 93.12 to 93.72, inclusive, of

43-35  this act, as administered or audited by the Department, it may

43-36  compute and determine the amount required to be paid upon the

43-37  basis of:

43-38     (a) The facts contained in the return;

43-39     (b) Any information within its possession or that may come into

43-40  its possession; or

43-41     (c) Reasonable estimates of the amount.

43-42     2.  One or more deficiency determinations may be made with

43-43  respect to the amount due for one or for more than one period.

43-44     3.  In making its determination of the amount required to be

43-45  paid, the Department shall impose interest on the amount of tax

44-1  determined to be due, calculated at the rate and in the manner set

44-2  forth in NRS 360.417, unless a different rate of interest is

44-3  specifically provided by statute.

44-4      4.  The Department shall impose a penalty of 10 percent in

44-5  addition to the amount of a determination that is made in the case of

44-6  the failure of a person to file a return with the Department.

44-7      5.  When a business is discontinued, a determination may be

44-8  made at any time thereafter within the time prescribed in NRS

44-9  360.355 as to liability arising out of that business, irrespective of

44-10  whether the determination is issued before the due date of the

44-11  liability.

44-12     Sec. 105.5.  NRS 360.300 is hereby amended to read as

44-13  follows:

44-14      360.300  1.  If a person fails to file a return or the Department

44-15  is not satisfied with the return or returns of any tax, franchise fee,

44-16  contribution or premium or amount of tax, franchise fee,

44-17  contribution or premium required to be paid to the State by any

44-18  person, in accordance with the applicable provisions of this chapter,

44-19  chapter 362, [364A,] 369, 370, 372, 372A, 374, 377, 377A or 444A

44-20  of NRS, NRS 482.313, or chapter 585 or 680B of NRS, or sections

44-21  2 to 24, inclusive, 60 to 93, inclusive, or 93.12 to 93.72, inclusive,

44-22  of this act, as administered or audited by the Department, it may

44-23  compute and determine the amount required to be paid upon the

44-24  basis of:

44-25     (a) The facts contained in the return;

44-26     (b) Any information within its possession or that may come into

44-27  its possession; or

44-28     (c) Reasonable estimates of the amount.

44-29     2.  One or more deficiency determinations may be made with

44-30  respect to the amount due for one or for more than one period.

44-31     3.  In making its determination of the amount required to be

44-32  paid, the Department shall impose interest on the amount of tax

44-33  determined to be due, calculated at the rate and in the manner set

44-34  forth in NRS 360.417, unless a different rate of interest is

44-35  specifically provided by statute.

44-36     4.  The Department shall impose a penalty of 10 percent in

44-37  addition to the amount of a determination that is made in the case of

44-38  the failure of a person to file a return with the Department.

44-39     5.  When a business is discontinued, a determination may be

44-40  made at any time thereafter within the time prescribed in NRS

44-41  360.355 as to liability arising out of that business, irrespective of

44-42  whether the determination is issued before the due date of the

44-43  liability.

 

 

45-1      Sec. 106.  NRS 360.417 is hereby amended to read as follows:

45-2      360.417  Except as otherwise provided in NRS 360.232 and

45-3  360.320, and unless a different penalty or rate of interest is

45-4  specifically provided by statute, any person who fails to pay any tax

45-5  or franchise fee provided for in chapter 362, 364A, 369, 370, 372,

45-6  374, 377, 377A, 444A or 585 of NRS, or sections 2 to 24, inclusive,

45-7  60 to 93, inclusive, or 93.12 to 93.72, inclusive, of this act, or the

45-8  fee provided for in NRS 482.313, to the State or a county within the

45-9  time required, shall pay a penalty of not more than 10 percent of the

45-10  amount of the tax or fee which is owed, as determined by the

45-11  Department, in addition to the tax or fee, plus interest at the rate of 1

45-12  percent per month, or fraction of a month, from the last day of the

45-13  month following the period for which the amount or any portion of

45-14  the amount should have been reported until the date of payment.

45-15  The amount of any penalty imposed must be based on a graduated

45-16  schedule adopted by the Nevada Tax Commission which takes into

45-17  consideration the length of time the tax or fee remained unpaid.

45-18     Sec. 106.5.  NRS 360.417 is hereby amended to read as

45-19  follows:

45-20      360.417  Except as otherwise provided in NRS 360.232 and

45-21  360.320, and unless a different penalty or rate of interest is

45-22  specifically provided by statute, any person who fails to pay any tax

45-23  or franchise fee provided for in chapter 362, [364A,] 369, 370, 372,

45-24  374, 377, 377A, 444A or 585 of NRS, or sections 2 to 24, inclusive,

45-25  60 to 93, inclusive, or 93.12 to 93.72, inclusive, of this act,or the

45-26  fee provided for in NRS 482.313, to the State or a county within the

45-27  time required, shall pay a penalty of not more than 10 percent of the

45-28  amount of the tax or fee which is owed, as determined by the

45-29  Department, in addition to the tax or fee, plus interest at the rate of 1

45-30  percent per month, or fraction of a month, from the last day of the

45-31  month following the period for which the amount or any portion of

45-32  the amount should have been reported until the date of payment.

45-33  The amount of any penalty imposed must be based on a graduated

45-34  schedule adopted by the Nevada Tax Commission which takes into

45-35  consideration the length of time the tax or fee remained unpaid.

45-36     Sec. 107.  NRS 360.419 is hereby amended to read as follows:

45-37      360.419 1.  If the Executive Director or a designated hearing

45-38  officer finds that the failure of a person to make a timely return or

45-39  payment of a tax or franchise fee imposed pursuant to NRS 361.320

45-40  or [chapter 361A, 376A, 377 or 377A of NRS, or by] chapter 361A,

45-41  362, 364A, 369, 370, 372, 372A, 374, 375A , [or] 375B , 376A, 377

45-42  or 377A of NRS, or sections 2 to 24, inclusive, 60 to 93, inclusive,

45-43  or 93.12 to 93.72, inclusive, of this act is the result of circumstances

45-44  beyond his control and occurred despite the exercise of ordinary

46-1  care and without intent, the Department may relieve him of all or

46-2  part of any interest or penalty or both.

46-3      2.  A person seeking this relief must file with the Department a

46-4  statement under oath setting forth the facts upon which he bases his

46-5  claim.

46-6      3.  The Department shall disclose, upon the request of any

46-7  person:

46-8      (a) The name of the person to whom relief was granted; and

46-9      (b) The amount of the relief.

46-10     4.  The Executive Director or a designated hearing officer shall

46-11  act upon the request of a taxpayer seeking relief pursuant to NRS

46-12  361.4835 which is deferred by a county treasurer or county assessor.

46-13     Sec. 107.5. NRS 360.419 is hereby amended to read as

46-14  follows:

46-15      360.419 1.  If the Executive Director or a designated hearing

46-16  officer finds that the failure of a person to make a timely return or

46-17  payment of a tax or franchise feeimposed pursuant to NRS 361.320

46-18  or chapter 361A, 362, [364A,] 369, 370, 372, 372A, 374, 375A,

46-19  375B, 376A, 377 or 377A of NRS, or sections 2 to 24, inclusive, 60

46-20  to 93, inclusive, or 93.12 to 93.72, inclusive, of this act is the result

46-21  of circumstances beyond his control and occurred despite the

46-22  exercise of ordinary care and without intent, the Department may

46-23  relieve him of all or part of any interest or penalty or both.

46-24     2.  A person seeking this relief must file with the Department a

46-25  statement under oath setting forth the facts upon which he bases his

46-26  claim.

46-27     3.  The Department shall disclose, upon the request of any

46-28  person:

46-29     (a) The name of the person to whom relief was granted; and

46-30     (b) The amount of the relief.

46-31     4.  The Executive Director or a designated hearing officer shall

46-32  act upon the request of a taxpayer seeking relief pursuant to NRS

46-33  361.4835 which is deferred by a county treasurer or county assessor.

46-34     Sec. 108.  NRS 360.510 is hereby amended to read as follows:

46-35      360.510  1.  If any person is delinquent in the payment of any

46-36  tax or fee administered by the Department or if a determination has

46-37  been made against him which remains unpaid, the Department may:

46-38     (a) Not later than 3 years after the payment became delinquent

46-39  or the determination became final; or

46-40     (b) Not later than 6 years after the last recording of an abstract

46-41  of judgment or of a certificate constituting a lien for tax owed,

46-42  give a notice of the delinquency and a demand to transmit

46-43  personally or by registered or certified mail to any person,

46-44  including, without limitation, any officer or department of this state

46-45  or any political subdivision or agency of this state, who has in his

47-1  possession or under his control any credits or other personal

47-2  property belonging to the delinquent, or owing any debts to the

47-3  delinquent or person against whom a determination has been made

47-4  which remains unpaid, or owing any debts to the delinquent or that

47-5  person. In the case of any state officer, department or agency, the

47-6  notice must be given to the officer, department or agency before

47-7  the Department presents the claim of the delinquent taxpayer to the

47-8  State Controller.

47-9      2.  A state officer, department or agency which receives such a

47-10  notice may satisfy any debt owed to it by that person before it

47-11  honors the notice of the Department.

47-12     3.  After receiving the demand to transmit, the person notified

47-13  by the demand may not transfer or otherwise dispose of the credits,

47-14  other personal property, or debts in his possession or under his

47-15  control at the time he received the notice until the Department

47-16  consents to a transfer or other disposition.

47-17     4.  Every person notified by a demand to transmit shall, within

47-18  10 days after receipt of the demand to transmit, inform the

47-19  Department of [,] and transmit to the Department all such credits,

47-20  other personal property [,] or debts in his possession, under his

47-21  control or owing by him within the time and in the manner

47-22  requested by the Department. Except as otherwise provided in

47-23  subsection 5, no further notice is required to be served to that

47-24  person.

47-25     5.  If the property of the delinquent taxpayer consists of a series

47-26  of payments owed to him, the person who owes or controls the

47-27  payments shall transmit the payments to the Department until

47-28  otherwise notified by the Department. If the debt of the delinquent

47-29  taxpayer is not paid within 1 year after the Department issued the

47-30  original demand to transmit, the Department shall issue another

47-31  demand to transmit to the person responsible for making the

47-32  payments informing him to continue to transmit payments to

47-33  the Department or that his duty to transmit the payments to the

47-34  Department has ceased.

47-35     6.  If the notice of the delinquency seeks to prevent the transfer

47-36  or other disposition of a deposit in a bank or credit union or other

47-37  credits or personal property in the possession or under the control of

47-38  a bank, credit union or other depository institution, the notice must

47-39  be delivered or mailed to any branch or office of the bank, credit

47-40  union or other depository institution at which the deposit is carried

47-41  or at which the credits or personal property is held.

47-42     7.  If any person notified by the notice of the delinquency

47-43  makes any transfer or other disposition of the property or debts

47-44  required to be withheld or transmitted, to the extent of the value of

47-45  the property or the amount of the debts thus transferred or paid, he is

48-1  liable to the State for any indebtedness due pursuant to this chapter,

48-2  or chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A

48-3  of NRS, NRS 482.313, or chapter 585 or 680B of NRS , or sections

48-4  2 to 24, inclusive, 60 to 93, inclusive, or 93.12 to 93.72, inclusive,

48-5  of this act from the person with respect to whose obligation the

48-6  notice was given if solely by reason of the transfer or other

48-7  disposition the State is unable to recover the indebtedness of the

48-8  person with respect to whose obligation the notice was given.

48-9      Sec. 108.5. NRS 360.510 is hereby amended to read as

48-10  follows:

48-11      360.510  1.  If any person is delinquent in the payment of any

48-12  tax or fee administered by the Department or if a determination has

48-13  been made against him which remains unpaid, the Department may:

48-14     (a) Not later than 3 years after the payment became delinquent

48-15  or the determination became final; or

48-16     (b) Not later than 6 years after the last recording of an abstract

48-17  of judgment or of a certificate constituting a lien for tax owed,

48-18  give a notice of the delinquency and a demand to transmit

48-19  personally or by registered or certified mail to any person,

48-20  including, without limitation, any officer or department of this state

48-21  or any political subdivision or agency of this state, who has in his

48-22  possession or under his control any credits or other personal

48-23  property belonging to the delinquent, or owing any debts to the

48-24  delinquent or person against whom a determination has been made

48-25  which remains unpaid, or owing any debts to the delinquent or that

48-26  person. In the case of any state officer, department or agency, the

48-27  notice must be given to the officer, department or agency before

48-28  the Department presents the claim of the delinquent taxpayer to the

48-29  State Controller.

48-30     2.  A state officer, department or agency which receives such a

48-31  notice may satisfy any debt owed to it by that person before it

48-32  honors the notice of the Department.

48-33     3.  After receiving the demand to transmit, the person notified

48-34  by the demand may not transfer or otherwise dispose of the credits,

48-35  other personal property, or debts in his possession or under his

48-36  control at the time he received the notice until the Department

48-37  consents to a transfer or other disposition.

48-38     4.  Every person notified by a demand to transmit shall, within

48-39  10 days after receipt of the demand to transmit, inform the

48-40  Department of and transmit to the Department all such credits, other

48-41  personal property or debts in his possession, under his control or

48-42  owing by him within the time and in the manner requested by the

48-43  Department. Except as otherwise provided in subsection 5, no

48-44  further notice is required to be served to that person.

49-1      5.  If the property of the delinquent taxpayer consists of a series

49-2  of payments owed to him, the person who owes or controls the

49-3  payments shall transmit the payments to the Department until

49-4  otherwise notified by the Department. If the debt of the delinquent

49-5  taxpayer is not paid within 1 year after the Department issued the

49-6  original demand to transmit, the Department shall issue another

49-7  demand to transmit to the person responsible for making the

49-8  payments informing him to continue to transmit payments to the

49-9  Department or that his duty to transmit the payments to the

49-10  Department has ceased.

49-11     6.  If the notice of the delinquency seeks to prevent the transfer

49-12  or other disposition of a deposit in a bank or credit union or other

49-13  credits or personal property in the possession or under the control of

49-14  a bank, credit union or other depository institution, the notice must

49-15  be delivered or mailed to any branch or office of the bank, credit

49-16  union or other depository institution at which the deposit is carried

49-17  or at which the credits or personal property is held.

49-18     7.  If any person notified by the notice of the delinquency

49-19  makes any transfer or other disposition of the property or debts

49-20  required to be withheld or transmitted, to the extent of the value of

49-21  the property or the amount of the debts thus transferred or paid, he is

49-22  liable to the State for any indebtedness due pursuant to this chapter,

49-23  or chapter 362, [364A,] 369, 370, 372, 372A, 374, 377, 377A or

49-24  444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS, or

49-25  sections 2 to 24, inclusive, 60 to 93, inclusive, or 93.12 to 93.72,

49-26  inclusive, of this actfrom the person with respect to whose

49-27  obligation the notice was given if solely by reason of the transfer or

49-28  other disposition the State is unable to recover the indebtedness of

49-29  the person with respect to whose obligation the notice was given.

49-30     Sec. 109.  NRS 360.750 is hereby amended to read as follows:

49-31      360.750  1.  A person who intends to locate or expand a

49-32  business in this state may apply to the Commission on Economic

49-33  Development for a partial abatement of one or more of the taxes

49-34  imposed on the new or expanded business pursuant to chapter 361[,

49-35  364A] or 374 of NRS.

49-36     2.  The Commission on Economic Development shall approve

49-37  an application for a partial abatement if the Commission makes the

49-38  following determinations:

49-39     (a) The business is consistent with:

49-40         (1) The State Plan for Industrial Development and

49-41  Diversification that is developed by the Commission pursuant to

49-42  NRS 231.067; and

49-43         (2) Any guidelines adopted pursuant to the State Plan.

49-44     (b) The applicant has executed an agreement with the

49-45  Commission which states that the business will, after the date on

50-1  which a certificate of eligibility for the abatement is issued pursuant

50-2  to subsection 5, continue in operation in this state for a period

50-3  specified by the Commission, which must be at least 5 years, and

50-4  will continue to meet the eligibility requirements set forth in this

50-5  subsection. The agreement must bind the successors in interest of

50-6  the business for the specified period.

50-7      (c) The business is registered pursuant to the laws of this state or

50-8  the applicant commits to obtain a valid business license and all other

50-9  permits required by the county, city or town in which the business

50-10  operates.

50-11     (d) Except as otherwise provided in NRS 361.0687, if the

50-12  business is a new business in a county whose population is 100,000

50-13  or more or a city whose population is 60,000 or more, the business

50-14  meets at least two of the following requirements:

50-15         (1) The business will have 75 or more full-time employees

50-16  on the payroll of the business by the fourth quarter that it is in

50-17  operation.

50-18         (2) Establishing the business will require the business to

50-19  make a capital investment of at least $1,000,000 in this state.

50-20         (3) The average hourly wage that will be paid by the new

50-21  business to its employees in this state is at least 100 percent of the

50-22  average statewide hourly wage as established by the Employment

50-23  Security Division of the Department of Employment, Training and

50-24  Rehabilitation on July 1 of each fiscal year and:

50-25             (I) The business will provide a health insurance plan for

50-26  all employees that includes an option for health insurance coverage

50-27  for dependents of the employees; and

50-28             (II) The cost to the business for the benefits the business

50-29  provides to its employees in this state will meet the minimum

50-30  requirements for benefits established by the Commission by

50-31  regulation pursuant to subsection 9.

50-32     (e) Except as otherwise provided in NRS 361.0687, if the

50-33  business is a new business in a county whose population is less than

50-34  100,000 or a city whose population is less than 60,000, the business

50-35  meets at least two of the following requirements:

50-36         (1) The business will have 25 or more full-time employees

50-37  on the payroll of the business by the fourth quarter that it is in

50-38  operation.

50-39         (2) Establishing the business will require the business to

50-40  make a capital investment of at least $250,000 in this state.

50-41         (3) The average hourly wage that will be paid by the new

50-42  business to its employees in this state is at least 100 percent of the

50-43  average statewide hourly wage as established by the Employment

50-44  Security Division of the Department of Employment, Training and

50-45  Rehabilitation on July 1 of each fiscal year and:

51-1             (I) The business will provide a health insurance plan for

51-2  all employees that includes an option for health insurance coverage

51-3  for dependents of the employees; and

51-4              (II) The cost to the business for the benefits the business

51-5  provides to its employees in this state will meet the minimum

51-6  requirements for benefits established by the Commission by

51-7  regulation pursuant to subsection 9.

51-8      (f) If the business is an existing business, the business meets at

51-9  least two of the following requirements:

51-10         (1) The business will increase the number of employees on

51-11  its payroll by 10 percent more than it employed in the immediately

51-12  preceding fiscal year or by six employees, whichever is greater.

51-13         (2) The business will expand by making a capital investment

51-14  in this state in an amount equal to at least 20 percent of the value of

51-15  the tangible property possessed by the business in the immediately

51-16  preceding fiscal year. The determination of the value of the tangible

51-17  property possessed by the business in the immediately preceding

51-18  fiscal year must be made by the:

51-19             (I) County assessor of the county in which the business

51-20  will expand, if the business is locally assessed; or

51-21             (II) Department, if the business is centrally assessed.

51-22         (3) The average hourly wage that will be paid by the existing

51-23  business to its new employees in this state is at least 100 percent of

51-24  the average statewide hourly wage as established by the

51-25  Employment Security Division of the Department of Employment,

51-26  Training and Rehabilitation on July 1 of each fiscal year and:

51-27             (I) The business will provide a health insurance plan for

51-28  all new employees that includes an option for health insurance

51-29  coverage for dependents of the employees; and

51-30             (II) The cost to the business for the benefits the business

51-31  provides to its new employees in this state will meet the minimum

51-32  requirements for benefits established by the Commission by

51-33  regulation pursuant to subsection 9.

51-34     3.  Notwithstanding the provisions of subsection 2, the

51-35  Commission on Economic Development may:

51-36     (a) Approve an application for a partial abatement by a business

51-37  that does not meet the requirements set forth in paragraph (d), (e) or

51-38  (f) of subsection 2;

51-39     (b) Make the requirements set forth in paragraph (d), (e) or (f) of

51-40  subsection 2 more stringent; or

51-41     (c) Add additional requirements that a business must meet to

51-42  qualify for a partial abatement,

51-43  if the Commission determines that such action is necessary.

51-44     4.  If a person submits an application to the Commission on

51-45  Economic Development pursuant to subsection 1, the Commission

52-1  shall provide notice to the governing body of the county and the city

52-2  or town, if any, in which the person intends to locate or expand a

52-3  business. The notice required pursuant to this subsection must set

52-4  forth the date, time and location of the hearing at which the

52-5  Commission will consider the application.

52-6      5.  If the Commission on Economic Development approves an

52-7  application for a partial abatement, the Commission shall

52-8  immediately forward a certificate of eligibility for the abatement to:

52-9      (a) The Department;

52-10     (b) The Nevada Tax Commission; and

52-11     (c) If the partial abatement is from the property tax imposed

52-12  pursuant to chapter 361 of NRS, the county treasurer.

52-13     6.  An applicant for a partial abatement pursuant to this section

52-14  or an existing business whose partial abatement is in effect shall,

52-15  upon the request of the Executive Director of the Commission on

52-16  Economic Development, furnish the Executive Director with copies

52-17  of all records necessary to verify that the applicant meets the

52-18  requirements of subsection 2.

52-19     7.  If a business whose partial abatement has been approved

52-20  pursuant to this section and is in effect ceases:

52-21     (a) To meet the requirements set forth in subsection 2; or

52-22     (b) Operation before the time specified in the agreement

52-23  described in paragraph (b) of subsection 2,

52-24  the business shall repay to the Department or, if the partial

52-25  abatement was from the property tax imposed pursuant to chapter

52-26  361 of NRS, to the county treasurer, the amount of the exemption

52-27  that was allowed pursuant to this section before the failure of the

52-28  business to comply unless the Nevada Tax Commission determines

52-29  that the business has substantially complied with the requirements of

52-30  this section. Except as otherwise provided in NRS 360.232 and

52-31  360.320, the business shall, in addition to the amount of the

52-32  exemption required to be paid pursuant to this subsection, pay

52-33  interest on the amount due at the rate most recently established

52-34  pursuant to NRS 99.040 for each month, or portion thereof, from the

52-35  last day of the month following the period for which the payment

52-36  would have been made had the partial abatement not been approved

52-37  until the date of payment of the tax.

52-38     8.  A county treasurer:

52-39     (a) Shall deposit any money that he receives pursuant to

52-40  subsection 7 in one or more of the funds established by a local

52-41  government of the county pursuant to NRS 354.6113 or 354.6115;

52-42  and

52-43     (b) May use the money deposited pursuant to paragraph (a) only

52-44  for the purposes authorized by NRS 354.6113 and 354.6115.

52-45     9.  The Commission on Economic Development:

53-1      (a) Shall adopt regulations relating to:

53-2          (1) The minimum level of benefits that a business must

53-3  provide to its employees if the business is going to use benefits paid

53-4  to employees as a basis to qualify for a partial abatement; and

53-5          (2) The notice that must be provided pursuant to

53-6  subsection 4.

53-7      (b) May adopt such other regulations as the Commission on

53-8  Economic Development determines to be necessary to carry out the

53-9  provisions of this section.

53-10     10.  The Nevada Tax Commission:

53-11     (a) Shall adopt regulations regarding:

53-12         (1) The capital investment that a new business must make to

53-13  meet the requirement set forth in paragraph (d) or (e) of subsection

53-14  2; and

53-15         (2) Any security that a business is required to post to qualify

53-16  for a partial abatement pursuant to this section.

53-17     (b) May adopt such other regulations as the Nevada Tax

53-18  Commission determines to be necessary to carry out the provisions

53-19  of this section.

53-20     11.  An applicant for an abatement who is aggrieved by a final

53-21  decision of the Commission on Economic Development may

53-22  petition for judicial review in the manner provided in chapter 233B

53-23  of NRS.

53-24     Sec. 110.  NRS 360A.020 is hereby amended to read as

53-25  follows:

53-26      360A.020  The Department shall adopt [such] :

53-27     1.  Such regulations as are necessary to carry out the provisions

53-28  of this chapter.

53-29     2.  Regulations providing for:

53-30     (a) The electronic submission of returns to the Department;

53-31  and

53-32     (b) The payment to the Department of any amount required to

53-33  be paid pursuant to this chapter or chapter 365, 366 or 373 of

53-34  NRS, or NRS 590.120 or 590.840 through the use of credit cards,

53-35  debit cards and electronic transfers of money.

53-36     Sec. 111.  NRS 364A.020 is hereby amended to read as

53-37  follows:

53-38      364A.020  1.  “Business” includes:

53-39     (a) A corporation, partnership, proprietorship, limited-liability

53-40  company, business association , joint venture, limited-liability

53-41  partnership, business trust and their equivalents organized under

53-42  the laws of this state or another jurisdiction and any other [similar]

53-43  organization that conducts an activity for profit;

53-44     (b) The activities of a natural person which are deemed to be a

53-45  business pursuant to NRS 364A.120; and

54-1      (c) A trade show or convention held in this state in which a

54-2  business described in paragraph (a) or (b) takes part, or which a

54-3  person who conducts such a business attends, for a purpose related

54-4  to the conduct of the business.

54-5      2.  [The term includes an independent contractor.

54-6      3.] The term does not include:

54-7      (a) A nonprofit religious, charitable, fraternal or other

54-8  organization that qualifies as a tax-exempt organization pursuant to

54-9  26 U.S.C. § 501(c) [;] , unless the organization has taxable income

54-10  for the purposes of federal income taxation from any unrelated

54-11  trade or business, as defined in 26 U.S.C. § 513;

54-12     (b) A governmental entity; [or]

54-13     (c) A person who operates a business from his home and earns

54-14  from that business not more than 66 2/3 percent of the average

54-15  annual wage, as computed for the preceding calendar year

54-16  pursuant to chapter 612 of NRS and rounded to the nearest

54-17  hundred dollars; or

54-18     (d) A business that creates or produces motion pictures. As used

54-19  in this paragraph, “motion pictures” has the meaning ascribed to it

54-20  in NRS 231.020.

54-21     Sec. 112. NRS 364A.120 is hereby amended to read as

54-22  follows:

54-23      364A.120  The activity or activities conducted by a natural

54-24  person shall be deemed to be a business that is subject to the

54-25  provisions of this chapter if the person files with the Internal

54-26  Revenue Service a Schedule C (Form 1040), Profit or Loss from

54-27  Business Form, or its equivalent or successor form, a Schedule E

54-28  (Form 1040), Supplemental Income and Loss Form, or its

54-29  equivalent or successor form, or a Schedule F (Form 1040), Farm

54-30  Income and Expenses Form, or its equivalent or successor form, for

54-31  the activity or activities.

54-32     Sec. 113. NRS 364A.130 is hereby amended to read as

54-33  follows:

54-34      364A.130  1.  Except as otherwise provided in subsection [6,]

54-35  8, a person shall not conduct a business in this state unless he has a

54-36  business license issued by the Department.

54-37     2.  [The] An application for a business license must:

54-38     (a) Be made upon a form prescribed by the Department;

54-39     (b) Set forth the name under which the applicant transacts or

54-40  intends to transact business and the location of his place or places of

54-41  business;

54-42     (c) Declare the estimated number of employees for the previous

54-43  calendar quarter;

54-44     (d) Be accompanied by a fee of [$25;] $75; and

55-1      (e) Include any other information that the Department deems

55-2  necessary.

55-3      3.  The application must be signed by:

55-4      (a) The owner, if the business is owned by a natural person;

55-5      (b) A member or partner, if the business is owned by an

55-6  association or partnership; or

55-7      (c) An officer or some other person specifically authorized to

55-8  sign the application, if the business is owned by a corporation.

55-9      4.  If the application is signed pursuant to paragraph (c) of

55-10  subsection 3, written evidence of the signer’s authority must be

55-11  attached to the application.

55-12     5.  A person who has been issued a business license by the

55-13  Department shall submit a fee of $75 to the Department on or

55-14  before the last day of the month in which the anniversary date of

55-15  issuance of the business license occurs in each year, unless the

55-16  person submits a written statement to the Department, at least 10

55-17  days before the anniversary date, indicating that the person will

55-18  not be conducting business in this state after the anniversary date.

55-19     6.  The business license required to be obtained pursuant to

55-20  this section is in addition to any license to conduct business that

55-21  must be obtained from the local jurisdiction in which the business

55-22  is being conducted.

55-23     7.  For the purposes of this chapter, a person shall be deemed to

55-24  conduct a business in this state if a business for which the person is

55-25  responsible:

55-26     (a) Is [incorporated] organized pursuant to [chapter 78 or 78A]

55-27  title 7 of NRS[;] , other than a business organized pursuant to

55-28  chapter 82 or 84 of NRS;

55-29     (b) Has an office or other base of operations in this state; or

55-30     (c) Pays wages or other remuneration to a natural person who

55-31  performs in this state any of the duties for which he is paid.

55-32     [6.] 8. A person who takes part in a trade show or convention

55-33  held in this state for a purpose related to the conduct of a business is

55-34  not required to obtain a business license specifically for that event.

55-35     Sec. 114.  NRS 369.174 is hereby amended to read as follows:

55-36      369.174  Each month, the State Controller shall transfer to the

55-37  Tax on Liquor Program Account in the State General Fund, from the

55-38  tax on liquor containing more than 22 percent of alcohol by volume,

55-39  the portion of the tax which exceeds [$1.90] $3.45 per wine gallon.

55-40     Sec. 115.  NRS 369.330 is hereby amended to read as follows:

55-41      369.330  Except as otherwise provided in this chapter, an excise

55-42  tax is hereby levied and must be collected respecting all liquor and

55-43  upon the privilege of importing, possessing, storing or selling liquor,

55-44  according to the following rates and classifications:

56-1      1.  On liquor containing more than 22 percent of alcohol by

56-2  volume, [$2.05] $3.60 per wine gallon or proportionate part thereof.

56-3      2.  On liquor containing more than 14 percent up to and

56-4  including 22 percent of alcohol by volume, [75 cents] $1.30 per

56-5  wine gallon or proportionate part thereof.

56-6      3.  On liquor containing from one-half of 1 percent up to and

56-7  including 14 percent of alcohol by volume, [40] 70 cents per wine

56-8  gallon or proportionate part thereof.

56-9      4.  On all malt beverage liquor brewed or fermented and bottled

56-10  in or outside this state, [9] 16 cents per gallon.

56-11     Sec. 116. NRS 369.370 is hereby amended to read as follows:

56-12      369.370  1.  For the privilege of importing, possessing, storing

56-13  or selling liquors, all licensed importers and manufacturers of liquor

56-14  in this state shall pay the excise tax imposed and established by this

56-15  chapter.

56-16     2.  If, after the tax is paid on any such liquor, satisfactory

56-17  evidence is presented to the Department that the imports have been

56-18  actually exported and sold outside this state in a manner not in

56-19  conflict with the law of the place of sale, the Department shall direct

56-20  that a refund or credit of the tax so paid be made to the taxpayer.

56-21  The taxpayer shall report all such exports and imports, and pay the

56-22  tax on the imports monthly, on forms and subject to regulations

56-23  prescribed by the Department.

56-24     3.  The excise tax imposed by this chapter is due on or before

56-25  the 20th day of the following month. If all such taxes are paid on or

56-26  before the 15th day of the following month, a discount in the

56-27  amount of [3] 0.5 percent of the tax must be allowed to the taxpayer.

56-28  The Department may, for good cause, extend for not more than 15

56-29  days after the date the tax is due the time for paying the tax if a

56-30  request for such an extension of time is received by the Department

56-31  on or before the date the tax was due. If such an extension is

56-32  granted, interest accrues from the original date the tax was due.

56-33     4.  The Department shall allow refunds or credits on any

56-34  shipments lost, stolen or damaged in transit, or damaged or spoiled

56-35  on the premises, may require all claims in connection therewith to

56-36  be sworn to and may make ratable tax adjustments, credits or

56-37  refunds to effectuate the purposes of this chapter.

56-38     Sec. 117.  NRS 370.165 is hereby amended to read as follows:

56-39      370.165  There is hereby levied a tax upon the purchase or

56-40  possession of cigarettes by a consumer in the State of Nevada at the

56-41  rate of [17.5] 40 mills per cigarette. The tax may be represented and

56-42  precollected by the affixing of a revenue stamp or other approved

56-43  evidence of payment to each package, packet or container in which

56-44  cigarettes are sold. The tax must be precollected by the wholesale or

56-45  retail dealer, and must be recovered from the consumer by adding

57-1  the amount of the tax to the selling price. Each person who sells

57-2  cigarettes at retail shall prominently display on his premises a notice

57-3  that the tax is included in the selling price and is payable under the

57-4  provisions of this chapter.

57-5      Sec. 117.5.  NRS 370.165 is hereby amended to read as

57-6  follows:

57-7      370.165  There is hereby levied a tax upon the purchase or

57-8  possession of cigarettes by a consumer in the State of Nevada at the

57-9  rate of [40] 45 mills per cigarette. The tax may be represented and

57-10  precollected by the affixing of a revenue stamp or other approved

57-11  evidence of payment to each package, packet or container in which

57-12  cigarettes are sold. The tax must be precollected by the wholesale or

57-13  retail dealer, and must be recovered from the consumer by adding

57-14  the amount of the tax to the selling price. Each person who sells

57-15  cigarettes at retail shall prominently display on his premises a notice

57-16  that the tax is included in the selling price and is payable under the

57-17  provisions of this chapter.

57-18     Sec. 118. NRS 370.220 is hereby amended to read as follows:

57-19      370.220  In the sale of any cigarette revenue stamps or any

57-20  metered machine settings to a licensed cigarette dealer, the

57-21  Department and its agents shall allow the purchaser a discount of [3]

57-22  0.5 percent against the amount of excise tax otherwise due for the

57-23  services rendered in affixing cigarette revenue stamps or metered

57-24  machine impressions to the cigarette packages.

57-25     Sec. 119.  NRS 370.260 is hereby amended to read as follows:

57-26      370.260  1.  All taxes and license fees imposed by the

57-27  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

57-28  granted as provided by law, must be paid to the Department in the

57-29  form of remittances payable to the Department.

57-30     2.  The Department shall:

57-31     (a) As compensation to the State for the costs of collecting the

57-32  taxes and license fees, transmit each month the sum the Legislature

57-33  specifies from the remittances made to it pursuant to subsection 1

57-34  during the preceding month to the State Treasurer for deposit to the

57-35  credit of the Department. The deposited money must be expended

57-36  by the Department in accordance with its work program.

57-37     (b) From the remittances made to it pursuant to subsection 1

57-38  during the preceding month, less the amount transmitted pursuant to

57-39  paragraph (a), transmit each month the portion of the tax which is

57-40  equivalent to [12.5] 35 mills per cigarette to the State Treasurer for

57-41  deposit to the credit of the Account for the Tax on Cigarettes in the

57-42  State General Fund.

57-43     (c) Transmit the balance of the payments each month to the

57-44  State Treasurer for deposit in the Local Government Tax

57-45  Distribution Account created by NRS 360.660.

58-1      (d) Report to the State Controller monthly the amount of

58-2  collections.

58-3      3.  The money deposited pursuant to paragraph (c) of

58-4  subsection 2 in the Local Government Tax Distribution Account is

58-5  hereby appropriated to Carson City andto each of the counties in

58-6  proportion to their respective populations and must be credited to

58-7  the respective accounts of Carson City and each county.

58-8      Sec. 119.5.  NRS 370.260 is hereby amended to read as

58-9  follows:

58-10      370.260  1.  All taxes and license fees imposed by the

58-11  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

58-12  granted as provided by law, must be paid to the Department in the

58-13  form of remittances payable to the Department.

58-14     2.  The Department shall:

58-15     (a) As compensation to the State for the costs of collecting the

58-16  taxes and license fees, transmit each month the sum the Legislature

58-17  specifies from the remittances made to it pursuant to subsection 1

58-18  during the preceding month to the State Treasurer for deposit to the

58-19  credit of the Department. The deposited money must be expended

58-20  by the Department in accordance with its work program.

58-21     (b) From the remittances made to it pursuant to subsection 1

58-22  during the preceding month, less the amount transmitted pursuant to

58-23  paragraph (a), transmit each month the portion of the tax which is

58-24  equivalent to [35] 40 mills per cigarette to the State Treasurer for

58-25  deposit to the credit of the Account for the Tax on Cigarettes in the

58-26  State General Fund.

58-27     (c) Transmit the balance of the payments each month to the

58-28  State Treasurer for deposit in the Local Government Tax

58-29  Distribution Account created by NRS 360.660.

58-30     (d) Report to the State Controller monthly the amount of

58-31  collections.

58-32     3.  The money deposited pursuant to paragraph (c) of

58-33  subsection 2 in the Local Government Tax Distribution Account is

58-34  hereby appropriated to Carson City andto each of the counties in

58-35  proportion to their respective populations and must be credited to

58-36  the respective accounts of Carson City and each county.

58-37     Sec. 120.  NRS 370.350 is hereby amended to read as follows:

58-38      370.350  1.  Except as otherwise provided in subsection 3, a

58-39  tax is hereby levied and imposed upon the use of cigarettes in this

58-40  state.

58-41     2.  The amount of the use tax is [17.5] 40 mills per cigarette.

58-42     3.  The use tax does not apply where:

58-43     (a) Nevada cigarette revenue stamps have been affixed to

58-44  cigarette packages as required by law.

58-45     (b) Tax exemption is provided for in this chapter.

59-1      Sec. 120.5.  NRS 370.350 is hereby amended to read as

59-2  follows:

59-3      370.350  1.  Except as otherwise provided in subsection 3, a

59-4  tax is hereby levied and imposed upon the use of cigarettes in this

59-5  state.

59-6      2.  The amount of the use tax is [40] 45 mills per cigarette.

59-7      3.  The use tax does not apply where:

59-8      (a) Nevada cigarette revenue stamps have been affixed to

59-9  cigarette packages as required by law.

59-10     (b) Tax exemption is provided for in this chapter.

59-11     Sec. 121. NRS 370.450 is hereby amended to read as follows:

59-12      370.450  1.  Except as otherwise provided in subsection 2,

59-13  there is hereby imposed upon the purchase or possession of products

59-14  made from tobacco, other than cigarettes, by a customer in this state

59-15  a tax of 30 percent of the wholesale price of those products.

59-16     2.  The provisions of subsection 1 do not apply to those

59-17  products which are:

59-18     (a) Shipped out of the State for sale and use outside the State; or

59-19     (b) Displayed or exhibited at a trade show, convention or other

59-20  exhibition in this state by a manufacturer or wholesale dealer who is

59-21  not licensed in this state.

59-22     3.  This tax must be collected and paid by the wholesale dealer

59-23  to the Department, in accordance with the provisions of NRS

59-24  370.465, after the sale or distribution of those products by the

59-25  wholesale dealer. The wholesale dealer is entitled to retain [2] 0.5

59-26  percent of the taxes collected to cover the costs of collecting and

59-27  administering the taxes[.] if the taxes are paid in accordance with

59-28  the provisions of NRS 370.465.

59-29     4.  Any wholesale dealer who sells or distributes any of those

59-30  products without paying the tax provided for by this section is guilty

59-31  of a misdemeanor.

59-32     Sec. 122. NRS 370.490 is hereby amended to read as follows:

59-33      370.490  1.  The Department shall allow a credit of 30 percent

59-34  of the wholesale price, less a discount of [2] 0.5 percent for the

59-35  services rendered in collecting the tax, for products made from

59-36  tobacco, other than cigarettes, upon which the tax has been paid

59-37  pursuant to NRS 370.450 and that may no longer be sold. If the

59-38  products have been purchased and delivered, a credit memo of the

59-39  manufacturer is required for proof of returned merchandise.

59-40     2.  A credit must also be granted for any products made from

59-41  tobacco, other than cigarettes, shipped from this state and destined

59-42  for retail sale and consumption outside the State on which the tax

59-43  has previously been paid. A duplicate or copy of the invoice is

59-44  required for proof of the sale outside the State.

60-1      3.  A wholesale dealer may claim a credit by filing with the

60-2  Department the proof required by this section. The claim must be

60-3  made on a form prescribed by the Department.

60-4      Sec. 123.  NRS 372.130 is hereby amended to read as follows:

60-5      372.130  At the time of making an application, the applicant

60-6  must pay to the Department a permit fee of [$1] $5 for each permit.

60-7      Sec. 124.  NRS 372.140 is hereby amended to read as follows:

60-8      372.140  A seller whose permit has been previously suspended

60-9  or revoked must pay the Department a fee of [$1] $5 for the renewal

60-10  or issuance of a permit.

60-11     Sec. 125.  NRS 372.220 is hereby amended to read as follows:

60-12      372.220  1.  Every retailer who sells tangible personal

60-13  property for storage, use or other consumption in this state shall

60-14  register with the Department and give:

60-15     [1.] (a) The name and address of all agents operating in this

60-16  state.

60-17     [2.] (b) The location of all distribution or sales houses or offices

60-18  or other places of business in this state.

60-19     [3.] (c) Such other information as the Department may require.

60-20     2.  Every business that purchases tangible personal property

60-21  for storage, use or other consumption in this state shall, at the

60-22  time the business obtains a business license pursuant to NRS

60-23  364A.130, register with the Department on a form prescribed by

60-24  the Department. As used in this section, “business” has the

60-25  meaning ascribed to it in NRS 364A.020.

60-26     Sec. 126.  NRS 372.220 is hereby amended to read as follows:

60-27      372.220  1.  Every retailer who sells tangible personal

60-28  property for storage, use or other consumption in this state shall

60-29  register with the Department and give:

60-30     (a) The name and address of all agents operating in this state.

60-31     (b) The location of all distribution or sales houses or offices or

60-32  other places of business in this state.

60-33     (c) Such other information as the Department may require.

60-34     2.  Every business that purchases tangible personal property for

60-35  storage, use or other consumption in this state shall, at the time the

60-36  business obtains a business license pursuant to [NRS 364A.130,]

60-37  section 101 of this act, register with the Department on a form

60-38  prescribed by the Department. As used in this section, “business”

60-39  has the meaning ascribed to it in [NRS 364A.020.] section 97 of this

60-40  act.

60-41     Sec. 127.  NRS 372.370 is hereby amended to read as follows:

60-42      372.370  [The taxpayer shall] If the taxes imposed by this

60-43  chapter are paid in accordance with NRS 372.355, the taxpayer

60-44  may deduct and withhold from the taxes otherwise due from him

61-1  [1.25] 0.5 percent of [it] those taxes to reimburse himself for the

61-2  cost of collecting the tax.

61-3      Sec. 128.  NRS 374.135 is hereby amended to read as follows:

61-4      374.135  At the time of making an application, the applicant

61-5  shall pay to the Department a permit fee of [$1] $5 for each permit.

61-6      Sec. 129.  NRS 374.145 is hereby amended to read as follows:

61-7      374.145  A seller whose permit has been previously suspended

61-8  or revoked shall pay the Department a fee of [$1] $5 for the renewal

61-9  or issuance of a permit.

61-10     Sec. 130.  NRS 374.375 is hereby amended to read as follows:

61-11      374.375  [The taxpayer shall] If the taxes imposed by this

61-12  chapter are paid in accordance with NRS 374.360, the taxpayer

61-13  may deduct and withhold from the taxes otherwise due from him

61-14  [1.25] 0.5 percent thereof to reimburse himself for the cost of

61-15  collecting the tax.

61-16     Sec. 131.   Chapter 375 of NRS is hereby amended by adding

61-17  thereto the provisions set forth as sections 132 and 133 of this act.

61-18     Sec. 132. 1.  In addition to all other taxes imposed on

61-19  transfers of real property, a tax, at the rate of $1.30 on each $500

61-20  of value, or fraction thereof, is hereby imposed on each deed by

61-21  which any lands, tenements or other realty is granted, assigned,

61-22  transferred or otherwise conveyed to, or vested in, another person,

61-23  if the consideration or value of the interest or property conveyed

61-24  exceeds $100.

61-25     2.  The amount of the tax must be computed on the basis of

61-26  the value of the transferred property as declared pursuant to

61-27  NRS 375.060.

61-28     3.  The county recorder of each county shall collect the tax in

61-29  the manner provided in NRS 375.030, except that the amount

61-30  collected must be transmitted to the State Controller for deposit in

61-31  the State General Fund within 30 days after the end of calendar

61-32  quarter during which the tax was collected.

61-33     4.  The county recorder of a county may deduct and withhold

61-34  from the taxes collected 0.2 percent of those taxes to reimburse the

61-35  county for the cost of collecting the tax.

61-36     Sec. 133.  1.  The Department shall, to ensure that the tax

61-37  imposed by section 132 of this act is collected fairly and equitably

61-38  in all counties, coordinate the collection and administration of

61-39  that tax. For this purpose, the Department may conduct such

61-40  audits of the records of the various counties as are necessary to

61-41  carry out the provisions of section 132 of this act.

61-42     2.  When requested, the Department shall render assistance to

61-43  the county recorder of a county whose population is less than

61-44  30,000 relating to the imposition and collection of the tax imposed

61-45  by section 132 of this act.

62-1      3.  The Department is not entitled to receive any fee for

62-2  rendering any assistance pursuant to subsection 2.

62-3      Sec. 134. NRS 375.018 is hereby amended to read as follows:

62-4      375.018  With regard to the administration of [the real property

62-5  transfer tax,] any tax imposed by this chapter, the county recorder

62-6  shall apply the following principles:

62-7      1.  Forms, instructions and regulations governing the

62-8  computation of the amount of tax due must be brief and easily

62-9  understood.

62-10     2.  In cases where another authority, such as the United States

62-11  or this state, also imposes a tax upon the same property or revenue,

62-12  the mechanism for collecting the tax imposed by the county must be

62-13  as nearly compatible with the collection of the other taxes as is

62-14  feasible.

62-15     3.  Unless a change is made necessary by statute or to preserve

62-16  compatibility with a tax imposed by another authority, the forms,

62-17  instructions and regulations must remain the same from year to year,

62-18  to make the taxpayer’s liability as predictable as is feasible.

62-19     4.  Exemptions or waivers, where permitted by statute, must be

62-20  granted:

62-21     (a) Equitably among eligible taxpayers; and

62-22     (b) As sparingly as is consistent with the legislative intent, to

62-23  retain the broadest feasible base for the tax.

62-24     Sec. 135.  NRS 375.030 is hereby amended to read as follows:

62-25      375.030  1.  If any deed evidencing a transfer of title subject to

62-26  the tax imposed by NRS 375.020 [and, if applicable, NRS 375.025,]

62-27  is offered for recordation, the county recorder shall compute the

62-28  amount of the tax due and shall collect that amount before

62-29  acceptance of the deed for recordation.

62-30     2.  The buyer and seller are jointly and severally liable for the

62-31  payment of the taxes imposed by NRS 375.020 [and 375.025] and

62-32  any penalties and interest imposed pursuant to subsection 3. The

62-33  escrow holder is not liable for the payment of the taxes imposed by

62-34  NRS 375.020 [and 375.025] or any penalties or interest imposed

62-35  pursuant to subsection 3.

62-36     3.  If after recordation of the deed, the county recorder

62-37  disallows an exemption that was claimed at the time the deed was

62-38  recorded or through audit or otherwise determines that an additional

62-39  amount of tax is due, the county recorder shall promptly notify the

62-40  person who requested the recording of the deed and the buyer and

62-41  seller of the additional amount of tax due. If the additional amount

62-42  of tax is not paid within 30 days after the date the buyer and seller

62-43  are notified, the county recorder shall impose a penalty of 10

62-44  percent of the additional amount due in addition to interest at the

62-45  rate of 1 percent per month, or portion thereof, of the additional

63-1  amount due calculated from the date of the original recordation of

63-2  the deed on which the additional amount is due through the date on

63-3  which the additional amount due, penalty and interest are paid to the

63-4  county recorder.

63-5      4.  This section does not prohibit a buyer and seller from

63-6  agreeing by contract or otherwise that one party or the other will be

63-7  responsible for the payment of the tax due pursuant to this chapter,

63-8  but such an agreement does not affect the ability of the county

63-9  recorder to collect the tax and any penalties and interest from either

63-10  the buyer or the seller.

63-11     Sec. 136. NRS 375.030 is hereby amended to read as follows:

63-12      375.030  1.  If any deed evidencing a transfer of title subject to

63-13  the tax imposed by NRS 375.020 and section 132 of this act is

63-14  offered for recordation, the county recorder shall compute the

63-15  amount of the tax due and shall collect that amount before

63-16  acceptance of the deed for recordation.

63-17     2.  The buyer and seller are jointly and severally liable for the

63-18  payment of the taxes imposed by NRS 375.020 and section 132 of

63-19  this act and any penalties and interest imposed pursuant to

63-20  subsection 3. The escrow holder is not liable for the payment of the

63-21  taxes imposed by NRS 375.020 and section 132 of this act or any

63-22  penalties or interest imposed pursuant to subsection 3.

63-23     3.  If after recordation of the deed, the county recorder

63-24  disallows an exemption that was claimed at the time the deed was

63-25  recorded or through audit or otherwise determines that an additional

63-26  amount of tax is due, the county recorder shall promptly notify the

63-27  person who requested the recording of the deed and the buyer and

63-28  seller of the additional amount of tax due. If the additional amount

63-29  of tax is not paid within 30 days after the date the buyer and seller

63-30  are notified, the county recorder shall impose a penalty of 10

63-31  percent of the additional amount due in addition to interest at the

63-32  rate of 1 percent per month, or portion thereof, of the additional

63-33  amount due calculated from the date of the original recordation of

63-34  the deed on which the additional amount is due through the date on

63-35  which the additional amount due, penalty and interest are paid to the

63-36  county recorder.

63-37     4.  This section does not prohibit a buyer and seller from

63-38  agreeing by contract or otherwise that one party or the other will be

63-39  responsible for the payment of the tax due pursuant to this chapter,

63-40  but such an agreement does not affect the ability of the county

63-41  recorder to collect the tax and any penalties and interest from either

63-42  the buyer or the seller.

 

 

 

64-1      Sec. 137. NRS 375.070 is hereby amended to read as follows:

64-2      375.070  1.  The county recorder shall transmit the proceeds of

64-3  the [real property transfer] tax imposed by NRS 375.020 at the end

64-4  of each quarter in the following manner:

64-5      (a) An amount equal to that portion of the proceeds which is

64-6  equivalent to 10 cents for each $500 of value or fraction thereof

64-7  must be transmitted to the State Controller who shall deposit that

64-8  amount in the Account for Low-Income Housing created pursuant to

64-9  NRS 319.500.

64-10     (b) In a county whose population is more than 400,000, an

64-11  amount equal to that portion of the proceeds which is equivalent to

64-12  60 cents for each $500 of value or fraction thereof must be

64-13  transmitted to the county treasurer for deposit in the county school

64-14  district’s fund for capital projects established pursuant to NRS

64-15  387.328, to be held and expended in the same manner as other

64-16  money deposited in that fund.

64-17     (c) The remaining proceeds must be transmitted to the State

64-18  Controller for deposit in the Local Government Tax Distribution

64-19  Account created by NRS 360.660 for credit to the respective

64-20  accounts of Carson City and each county.

64-21     2.  In addition to any other authorized use of the proceeds it

64-22  receives pursuant to subsection 1, a county or city may use the

64-23  proceeds to pay expenses related to or incurred for the development

64-24  of affordable housing for families whose income does not exceed 80

64-25  percent of the median income for families residing in the same

64-26  county, as that percentage is defined by the United States

64-27  Department of Housing and Urban Development. A county or city

64-28  that uses the proceeds in that manner must give priority to the

64-29  development of affordable housing for persons who are disabled or

64-30  elderly.

64-31     3.  The expenses authorized by subsection 2 include, but are not

64-32  limited to:

64-33     (a) The costs to acquire land and developmental rights;

64-34     (b) Related predevelopment expenses;

64-35     (c) The costs to develop the land, including the payment of

64-36  related rebates;

64-37     (d) Contributions toward down payments made for the purchase

64-38  of affordable housing; and

64-39     (e) The creation of related trust funds.

64-40     Sec. 138.  NRS 375.090 is hereby amended to read as follows:

64-41      375.090  The tax imposed by NRS 375.020 [and 375.025] does

64-42  not apply to:

64-43     1.  A mere change in identity, form or place of organization,

64-44  such as a transfer between a corporation and its parent corporation, a

65-1  subsidiary or an affiliated corporation if the affiliated corporation

65-2  has identical common ownership.

65-3      2.  A transfer of title to the United States, any territory or state

65-4  or any agency, department, instrumentality or political subdivision

65-5  thereof.

65-6      3.  A transfer of title recognizing the true status of ownership of

65-7  the real property.

65-8      4.  A transfer of title without consideration from one joint

65-9  tenant or tenant in common to one or more remaining joint tenants

65-10  or tenants in common.

65-11     5.  A transfer of title to community property without

65-12  consideration when held in the name of one spouse to both spouses

65-13  as joint tenants or tenants in common, or as community property.

65-14     6.  A transfer of title between spouses, including gifts.

65-15     7.  A transfer of title between spouses to effect a property

65-16  settlement agreement or between former spouses in compliance with

65-17  a decree of divorce.

65-18     8.  A transfer of title to or from a trust, if the transfer is made

65-19  without consideration, and is made to or from:

65-20     (a) The trustor of the trust;

65-21     (b) The trustor’s legal representative; or

65-22     (c) A person related to the trustor in the first degree of

65-23  consanguinity.

65-24  As used in this subsection, “legal representative” has the meaning

65-25  ascribed to it in NRS 167.020.

65-26     9.  Transfers, assignments or conveyances of unpatented mines

65-27  or mining claims.

65-28     10.  A transfer, assignment or other conveyance of real property

65-29  to a corporation or other business organization if the person

65-30  conveying the property owns 100 percent of the corporation or

65-31  organization to which the conveyance is made.

65-32     11.  A transfer, assignment or other conveyance of real property

65-33  if the owner of the property is related to the person to whom it is

65-34  conveyed within the first degree of consanguinity.

65-35     12.  The making, delivery or filing of conveyances of real

65-36  property to make effective any plan of reorganization or adjustment:

65-37     (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C.

65-38  §§ 101 et seq.;

65-39     (b) Approved in an equity receivership proceeding involving a

65-40  railroad, as defined in the Bankruptcy Act; or

65-41     (c) Approved in an equity receivership proceeding involving a

65-42  corporation, as defined in the Bankruptcy Act,

65-43  if the making, delivery or filing of instruments of transfer or

65-44  conveyance occurs within 5 years after the date of the confirmation,

65-45  approval or change.

66-1      13.  The making or delivery of conveyances of real property to

66-2  make effective any order of the Securities and Exchange

66-3  Commission if:

66-4      (a) The order of the Securities and Exchange Commission in

66-5  obedience to which the transfer or conveyance is made recites that

66-6  the transfer or conveyance is necessary or appropriate to effectuate

66-7  the provisions of section 11 of the Public Utility Holding Company

66-8  Act of 1935, 15 U.S.C. § 79k;

66-9      (b) The order specifies and itemizes the property which is

66-10  ordered to be transferred or conveyed; and

66-11     (c) The transfer or conveyance is made in obedience to the

66-12  order.

66-13     14.  A transfer to an educational foundation. As used in this

66-14  subsection, “educational foundation” has the meaning ascribed to it

66-15  in subsection 3 of NRS 388.750.

66-16     15.  A transfer to a university foundation. As used in this

66-17  subsection, “university foundation” has the meaning ascribed to it in

66-18  subsection 3 of NRS 396.405.

66-19     16.  A transfer, assignment or other conveyance of real property

66-20  to a corporation sole from another corporation sole. As used in this

66-21  subsection, “corporation sole” means a corporation which is

66-22  organized pursuant to the provisions of chapter 84 of NRS.

66-23     Sec. 139. NRS 375.090 is hereby amended to read as follows:

66-24      375.090  The [tax] taxes imposed by NRS 375.020 [does] and

66-25  section 132 of this act do not apply to:

66-26     1.  A mere change in [identity, form or place of organization,

66-27  such as a transfer between a corporation and its parent corporation, a

66-28  subsidiary or an affiliated corporation if the affiliated corporation

66-29  has identical common ownership.] the name of the owner of the

66-30  property without a change in the ownership interest of the

66-31  property.

66-32     2.  A transfer of title to the United States, any territory or state

66-33  or any agency, department, instrumentality or political subdivision

66-34  thereof.

66-35     3.  A transfer of title recognizing the true status of ownership of

66-36  the real property.

66-37     4.  A transfer of title without consideration from one joint

66-38  tenant or tenant in common to one or more remaining joint tenants

66-39  or tenants in common.

66-40     5.  [A transfer of title to community property without

66-41  consideration when held in the name of one spouse to both spouses

66-42  as joint tenants or tenants in common, or as community property.

66-43     6.] A transfer of title between spouses, including gifts [.

67-1      7.  A transfer of title between spouses] , or to effect a property

67-2  settlement agreement or between former spouses in compliance with

67-3  a decree of divorce.

67-4      [8.] 6.  A transfer of title to or from a trust [, if the transfer is

67-5  made] without consideration [, and is made to or from:

67-6      (a) The trustor of the trust;

67-7      (b) The trustor’s legal representative; or

67-8      (c) A person related to the trustor in the first degree of

67-9  consanguinity.

67-10  As used in this subsection, “legal representative” has the meaning

67-11  ascribed to it in NRS 167.020.

67-12     9.] if a certificate of trust is presented at the time of transfer.

67-13     7.  Transfers, assignments or conveyances of unpatented mines

67-14  or mining claims.

67-15     [10.  A transfer, assignment or other conveyance of real

67-16  property to a corporation or other business organization if the person

67-17  conveying the property owns 100 percent of the corporation or

67-18  organization to which the conveyance is made.

67-19     11.] 8.  A transfer, assignment or other conveyance of real

67-20  property if the owner of the property is related to the person to

67-21  whom it is conveyed within the first degree of consanguinity.

67-22     [12.] 9.  The making, delivery or filing of conveyances of real

67-23  property to make effective any plan of reorganization or adjustment:

67-24     (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C.

67-25  §§ 101 et seq.;

67-26     (b) Approved in an equity receivership proceeding involving a

67-27  railroad, as defined in the Bankruptcy Act; or

67-28     (c) Approved in an equity receivership proceeding involving a

67-29  corporation, as defined in the Bankruptcy Act,

67-30  if the making, delivery or filing of instruments of transfer or

67-31  conveyance occurs within 5 years after the date of the confirmation,

67-32  approval or change.

67-33     [13.] 10.  The making or delivery of conveyances of real

67-34  property to make effective any order of the Securities and Exchange

67-35  Commission if:

67-36     (a) The order of the Securities and Exchange Commission in

67-37  obedience to which the transfer or conveyance is made recites that

67-38  the transfer or conveyance is necessary or appropriate to effectuate

67-39  the provisions of section 11 of the Public Utility Holding Company

67-40  Act of 1935, 15 U.S.C. § 79k;

67-41     (b) The order specifies and itemizes the property which is

67-42  ordered to be transferred or conveyed; and

67-43     (c) The transfer or conveyance is made in obedience to the

67-44  order.

68-1      [14.] 11.  A transfer to an educational foundation. As used in

68-2  this subsection, “educational foundation” has the meaning ascribed

68-3  to it in subsection 3 of NRS 388.750.

68-4      [15.] 12.  A transfer to a university foundation. As used in this

68-5  subsection, “university foundation” has the meaning ascribed to it in

68-6  subsection 3 of NRS 396.405.

68-7      [16.  A transfer, assignment or other conveyance of real

68-8  property to a corporation sole from another corporation sole. As

68-9  used in this subsection, “corporation sole” means a corporation

68-10  which is organized pursuant to the provisions of chapter 84 of

68-11  NRS.]

68-12     Sec. 140. NRS 375.120 is hereby amended to read as follows:

68-13      375.120  The county recorder shall:

68-14     1.  Conduct and apply audits and other procedures for

68-15  enforcement as uniformly as is feasible.

68-16     2.  Collect [real property transfer] any tax that is due pursuant

68-17  to the provisions of this chapter in an equitable manner, so that

68-18  every taxpayer pays the full amount imposed by law.

68-19     Sec. 141. NRS 375.130 is hereby amended to read as follows:

68-20      375.130  1.  The county recorder may audit all records relating

68-21  to the collection and calculation of [the real property transfer tax.]

68-22  any tax imposed by this chapter. If the county recorder deems it

68-23  necessary to conduct an audit, the audit must be completed within 3

68-24  years after the date of the original recording of the document that

68-25  evidences the transfer of property for which the tax was imposed.

68-26     2.  The county recorder may issue subpoenas to require the

68-27  production of documents necessary for him to determine the amount

68-28  of [real property transfer] the tax due pursuant to this chapter or to

68-29  determine whether a person qualifies for an exemption from taxes

68-30  pursuant to this chapter. The county recorder may have the

68-31  subpoenas served, and upon application of the district attorney, to

68-32  any court of competent jurisdiction, enforced in the manner

68-33  provided by law for the service and enforcement of subpoenas in a

68-34  civil action.

68-35     Sec. 142. NRS 375.160 is hereby amended to read as follows:

68-36      375.160  1.  If any [real property transfer] tax imposed

68-37  pursuant to this chapter is not paid when due, the county may,

68-38  within 3 years after the date that the tax was due, record a certificate

68-39  in the office of the county recorder which states:

68-40     (a) The amount of the [real property transfer] tax and any

68-41  interest or penalties due;

68-42     (b) The name and address of the person who is liable for the

68-43  amount due as they appear on the records of the county; and

68-44     (c) That the county recorder has complied with all procedures

68-45  required by law for determining the amount due.

69-1      2.  From the time of the recording of the certificate, the amount

69-2  due, including interest and penalties, constitutes:

69-3      (a) A lien upon the real property for which the tax was due if the

69-4  person who owes the tax still owns the property; or

69-5      (b) A demand for payment if the property has been sold or

69-6  otherwise transferred to another person.

69-7      3.  The lien has the effect and priority of a judgment lien and

69-8  continues for 5 years after the time of the recording of the certificate

69-9  unless sooner released or otherwise discharged.

69-10     4.  Within 5 years after the date of recording the certificate or

69-11  within 5 years after the date of the last extension of the lien pursuant

69-12  to this subsection, the lien may be extended by recording a new

69-13  certificate in the office of the county recorder. From the time of

69-14  recording the new certificate, the lien is extended for 5 years, unless

69-15  sooner released or otherwise discharged.

69-16     Sec. 143. NRS 375.170 is hereby amended to read as follows:

69-17      375.170  1.  If a person is delinquent in the payment of [the

69-18  real property transfer] any tax imposed by this chapter or has not

69-19  paid the amount of a deficiency determination, the county may bring

69-20  an action in a court of this state, a court of any other state or a court

69-21  of the United States that has competent jurisdiction to collect the

69-22  delinquent or deficient amount, penalties and interest. The action:

69-23     (a) May not be brought if the decision that the payment is

69-24  delinquent or that there is a deficiency determination is on appeal to

69-25  a hearing officer pursuant to NRS 375.320.

69-26     (b) Must be brought not later than 3 years after the payment

69-27  became delinquent or the determination became final.

69-28     2.  The district attorney shall prosecute the action. The

69-29  provisions of the Nevada Revised Statutes, Nevada Rules of Civil

69-30  Procedure and Nevada Rules of Appellate Procedure relating to

69-31  service of summons, pleadings, proofs, trials and appeals are

69-32  applicable to the proceedings. In the action, a writ of attachment

69-33  may issue. A bond or affidavit is not required before an attachment

69-34  may be issued.

69-35     3.  In an action, a certificate by the county recorder showing the

69-36  delinquency is prima facie evidence of:

69-37     (a) The determination of the tax or the amount of the tax;

69-38     (b) The delinquency of the amounts; and

69-39     (c) The compliance by the county recorder with all the

69-40  procedures required by law relating to the computation and

69-41  determination of the amounts.

69-42     Sec. 144. NRS 375.250 is hereby amended to read as follows:

69-43      375.250  1.  The Legislature hereby declares that each

69-44  taxpayer has the right:

70-1      (a) To be treated by officers and employees of the county

70-2  recorder with courtesy, fairness, uniformity, consistency and

70-3  common sense.

70-4      (b) To a prompt response from the county recorder to each

70-5  communication from the taxpayer.

70-6      (c) To provide the minimum documentation and other

70-7  information as may reasonably be required by the county recorder to

70-8  carry out his duties.

70-9      (d) To be notified, in writing, by the county recorder whenever

70-10  an officer or employee of the county recorder determines that the

70-11  taxpayer is entitled to an exemption or has been taxed more than is

70-12  required pursuant to this chapter.

70-13     (e) To written instructions indicating how the taxpayer may

70-14  petition for a refund for overpayment of [real property transfer] any

70-15  tax, interest or penalties.

70-16     (f) To recover an overpayment of [real property transfer] any tax

70-17  promptly upon the final determination of such an overpayment.

70-18     (g) To obtain specific advice from the county recorder

70-19  concerning [real property transfer] any tax.

70-20     (h) In any meeting with the county recorder, including an audit,

70-21  conference, interview or hearing:

70-22         (1) To an explanation by an officer, agent or employee of the

70-23  county recorder that describes the procedures to be followed and the

70-24  rights of the taxpayer thereunder;

70-25         (2) To be represented by himself or anyone who is otherwise

70-26  authorized by law to represent him before the county recorder;

70-27         (3) To make an audio recording using the taxpayer’s

70-28  equipment and at the taxpayer’s expense; and

70-29         (4) To receive a copy of any document or audio recording

70-30  made by or in the possession of the county recorder relating to the

70-31  determination or collection of any tax for which the taxpayer is

70-32  assessed pursuant to this chapter, upon payment of the actual cost to

70-33  the county recorder of making the copy.

70-34     (i) To a full explanation of the authority of the county recorder

70-35  to collect the [real property transfer] tax or to collect a delinquent

70-36  [real property transfer] tax, including, without limitation, the

70-37  procedures and notices for review and appeal that are required for

70-38  the protection of the taxpayer. An explanation which meets the

70-39  requirements of this section must also be included with each notice

70-40  to a taxpayer that an audit will be conducted by the county.

70-41     (j) To the immediate release of any lien which the county

70-42  recorder has placed on real property for the nonpayment of [the real

70-43  property transfer] a tax when:

70-44         (1) The tax is paid;

70-45         (2) The period of limitation for collecting the tax expires;

71-1          (3) The lien is the result of an error by the county recorder;

71-2          (4) The county recorder determines that the taxes, interest

71-3  and penalties are secured sufficiently by a lien on other real

71-4  property;

71-5          (5) The release or subordination of the lien will not

71-6  jeopardize the collection of the taxes, interest and penalties; or

71-7          (6) The release of the lien will facilitate the collection of the

71-8  taxes, interest and penalties.

71-9      (k) To be free from harassment and intimidation by an officer or

71-10  employee of the county recorder for any reason.

71-11     2.  The provisions of this chapter governing the administration

71-12  and collection of taxes by the county recorder must not be construed

71-13  in such a manner as to interfere or conflict with the provisions of

71-14  this section or any applicable regulations.

71-15     3.  The provisions of this section apply to the administration

71-16  and collection of taxes pursuant to this chapter.

71-17     Sec. 145. NRS 375.270 is hereby amended to read as follows:

71-18      375.270  The county recorder shall provide each taxpayer who

71-19  it determines may be liable for taxes pursuant to this chapter with

71-20  simplified written instructions concerning the rights and

71-21  responsibilities of the taxpayer, including the:

71-22     1.  Keeping of records sufficient for audit purposes;

71-23     2.  Procedures for paying [the real property transfer tax;] any

71-24  taxes that are due; and

71-25     3.  Procedures for challenging any liability for [real property

71-26  transfer] any tax, penalties or interest and for requesting refunds of

71-27  any erroneously paid [real property transfer] tax, including the steps

71-28  for appealing a denial thereof.

71-29     Sec. 146. NRS 375.290 is hereby amended to read as follows:

71-30      375.290  A taxpayer is entitled to receive on any overpayment

71-31  of [the real property transfer] any tax imposed by this chapter a

71-32  refund together with interest at a rate determined pursuant to NRS

71-33  17.130. No interest is allowed on a refund of any penalties or

71-34  interest on the [real property transfer] tax that is paid by a taxpayer.

71-35     Sec. 147. NRS 375.300 is hereby amended to read as follows:

71-36      375.300  The county recorder shall provide a taxpayer with a

71-37  response to any written request submitted by the taxpayer that

71-38  relates to a [real property transfer] tax imposed by this chapter

71-39  within 30 days after the county treasurer receives the request.

71-40     Sec. 148.  NRS 375.330 is hereby amended to read as follows:

71-41      375.330  1.  The county recorder may waive any [real property

71-42  transfer] tax, penalty and interest owed by the taxpayer pursuant to

71-43  this chapter, other than the tax imposed by section 132 of this act,

71-44  if the taxpayer meets the criteria adopted by regulation. If a waiver

72-1  is granted pursuant to this subsection, the county shall prepare and

72-2  maintain on file a statement that contains:

72-3      (a) The reason for the waiver;

72-4      (b) The amount of the tax, penalty and interest owed by the

72-5  taxpayer; and

72-6      (c) The amount of the tax, penalty and interest waived by the

72-7  county.

72-8      2.  If the county recorder or a designated hearing officer finds

72-9  that the failure of a person to make a timely payment of [the real

72-10  property transfer] any tax imposed is the result of circumstances

72-11  beyond his control and occurred despite the exercise of ordinary

72-12  care and without intent to avoid such payment, the county recorder

72-13  may relieve him of all or part of any interest or penalty , or both.

72-14     3.  If a person proves to the satisfaction of the county recorder

72-15  that he has in good faith remitted the [real property transfer] tax in

72-16  reliance upon written advice provided by an officer or employee of

72-17  the county recorder, an opinion of the district attorney or Attorney

72-18  General, or the written results of an audit of his records conducted

72-19  by the county recorder, the county recorder may not require the

72-20  taxpayer to pay delinquent taxes, penalties or interest if the county

72-21  recorder determines after the completion of a subsequent audit that

72-22  the taxes the taxpayer remitted were deficient.

72-23     Sec. 149.  NRS 376A.040 is hereby amended to read as

72-24  follows:

72-25      376A.040  1.  In addition to all other taxes imposed on the

72-26  revenues from retail sales, a board of county commissioners of a

72-27  county whose population is less than 400,000 may by ordinance, but

72-28  not as in a case of emergency, impose a tax at the rate of up to 1/4 of

72-29  1 percent of the gross receipts of any retailer from the sale of all

72-30  tangible personal property sold at retail, or stored, used or otherwise

72-31  consumed in the county, after receiving the approval of a majority

72-32  of the registered voters of the county voting on the question at a

72-33  primary, general or special election. The question may be combined

72-34  with questions submitted pursuant to NRS [375.025, 376A.050 and

72-35  376A.070 or any combination thereof.] 376A.050 or 376A.070, or

72-36  both.

72-37     2.  If a county imposes a sales tax pursuant to this section and

72-38  NRS 376A.050, the combined additional sales tax must not exceed

72-39  1/4 of 1 percent. A tax imposed pursuant to this section applies

72-40  throughout the county, including incorporated cities in the county.

72-41     3.  Before the election may occur, an open-space plan must be

72-42  adopted by the board of county commissioners pursuant to NRS

72-43  376A.020 and the adopted open-space plan must be endorsed by

72-44  resolution by the city council of each incorporated city within the

72-45  county.

73-1      4.  All fees, taxes, interest and penalties imposed and all

73-2  amounts of tax required to be paid pursuant to this section must be

73-3  paid to the Department of Taxation in the form of remittances

73-4  payable to the Department of Taxation. The Department of Taxation

73-5  shall deposit the payments with the State Treasurer for credit to the

73-6  Sales and Use Tax Account in the State General Fund. The State

73-7  Controller, acting upon the collection data furnished by the

73-8  Department of Taxation, shall transfer monthly all fees, taxes,

73-9  interest and penalties collected during the preceding month to the

73-10  Intergovernmental Fund and remit the money to the county

73-11  treasurer.

73-12     5.  The money received from the tax imposed pursuant to

73-13  subsection 4 must be retained by the county, or remitted to a city or

73-14  general improvement district in the county. The money received by

73-15  a county, city or general improvement district pursuant to this

73-16  section must only be used to pay the cost of:

73-17     (a) The acquisition of land in fee simple for development and

73-18  use as open-space land;

73-19     (b) The acquisition of the development rights of land identified

73-20  as open-space land;

73-21     (c) The creation of a trust fund for the acquisition of land or

73-22  development rights of land pursuant to paragraphs (a) and (b);

73-23     (d) The principal and interest on notes, bonds or other

73-24  obligations issued by the county, city or general improvement

73-25  district for the acquisition of land or development rights of land

73-26  pursuant to paragraphs (a) and (b); or

73-27     (e) Any combination of the uses set forth in paragraphs (a) to

73-28  (d), inclusive.

73-29     6.  The money received from the tax imposed pursuant to this

73-30  section and any applicable penalty or interest must not be used for

73-31  any neighborhood or community park or facility.

73-32     7.  Any money used for the purposes described in this section

73-33  must be used in a manner:

73-34     (a) That is consistent with the provisions of the open-space plan

73-35  adopted pursuant to NRS 376A.020; and

73-36     (b) That provides an equitable allocation of the money among

73-37  the county and the incorporated cities within the county.

73-38     Sec. 150.  NRS 376A.040 is hereby amended to read as

73-39  follows:

73-40      376A.040  1.  In addition to all other taxes imposed on the

73-41  revenues from retail sales, a board of county commissioners of a

73-42  county whose population is 100,000 or more but less than 400,000,

73-43  may by ordinance, but not as in a case of emergency, impose a tax at

73-44  the rate of up to 1/4 of 1 percent of the gross receipts of any retailer

73-45  from the sale of all tangible personal property sold at retail, or

74-1  stored, used or otherwise consumed in the county, after receiving

74-2  the approval of a majority of the registered voters of the county

74-3  voting on the question at a primary, general or special election. The

74-4  question may be combined with questions submitted pursuant to

74-5  NRS [375.025, 376A.050 and 376A.070 or any combination

74-6  thereof.] 376A.050 or 376A.070, or both.

74-7      2.  If a county imposes a sales tax pursuant to this section and

74-8  NRS 376A.050, the combined additional sales tax must not exceed

74-9  1/4 of 1 percent. A tax imposed pursuant to this section applies

74-10  throughout the county, including incorporated cities in the county.

74-11     3.  Before the election may occur, an open-space plan must be

74-12  adopted by the board of county commissioners pursuant to NRS

74-13  376A.020 and the adopted open-space plan must be endorsed by

74-14  resolution by the city council of each incorporated city within the

74-15  county.

74-16     4.  All fees, taxes, interest and penalties imposed and all

74-17  amounts of tax required to be paid pursuant to this section must be

74-18  paid to the Department of Taxation in the form of remittances

74-19  payable to the Department of Taxation. The Department of Taxation

74-20  shall deposit the payments with the State Treasurer for credit to the

74-21  Sales and Use Tax Account in the State General Fund. The State

74-22  Controller, acting upon the collection data furnished by the

74-23  Department of Taxation, shall transfer monthly all fees, taxes,

74-24  interest and penalties collected during the preceding month to the

74-25  Intergovernmental Fund and remit the money to the county

74-26  treasurer.

74-27     5.  The money received from the tax imposed pursuant to

74-28  subsection 4 must be retained by the county, or remitted to a city or

74-29  general improvement district in the county. The money received by

74-30  a county, city or general improvement district pursuant to this

74-31  section must only be used to pay the cost of:

74-32     (a) The acquisition of land in fee simple for development and

74-33  use as open-space land;

74-34     (b) The acquisition of the development rights of land identified

74-35  as open-space land;

74-36     (c) The creation of a trust fund for the acquisition of land or

74-37  development rights of land pursuant to paragraphs (a) and (b);

74-38     (d) The principal and interest on notes, bonds or other

74-39  obligations issued by the county, city or general improvement

74-40  district for the acquisition of land or development rights of land

74-41  pursuant to paragraphs (a) and (b); or

74-42     (e) Any combination of the uses set forth in paragraphs (a) to

74-43  (d), inclusive.

75-1      6.  The money received from the tax imposed pursuant to this

75-2  section and any applicable penalty or interest must not be used for

75-3  any neighborhood or community park or facility.

75-4      7.  Any money used for the purposes described in this section

75-5  must be used in a manner:

75-6      (a) That is consistent with the provisions of the open-space plan

75-7  adopted pursuant to NRS 376A.020; and

75-8      (b) That provides an equitable allocation of the money among

75-9  the county and the incorporated cities within the county.

75-10     Sec. 151.  NRS 376A.050 is hereby amended to read as

75-11  follows:

75-12      376A.050  1.  Except as otherwise provided in subsection 2, in

75-13  addition to all other taxes imposed on the revenues from retail sales,

75-14  a board of county commissioners in each county whose population

75-15  is less than 400,000 may by ordinance, but not as in a case of

75-16  emergency, impose a tax at the rate of up to 1/4 of 1 percent of the

75-17  gross receipts of any retailer from the sale of all tangible personal

75-18  property sold at retail, or stored, used or otherwise consumed in the

75-19  county, after receiving the approval of a majority of the registered

75-20  voters of the county voting on the question at a primary, general or

75-21  special election. The question may be combined with questions

75-22  submitted pursuant to NRS [375.025, 376A.040 and 376A.070 or

75-23  any combination thereof.] 376A.040 or 376A.070, or both.

75-24     2.  If a county imposes a sales tax pursuant to this section and

75-25  NRS 376A.040, the combined additional sales tax must not exceed

75-26  1/4 of 1 percent. A tax imposed pursuant to this section applies

75-27  throughout the county, including incorporated cities in the county.

75-28     3.  Before the election occurs, an open-space plan must be

75-29  adopted by the board of county commissioners pursuant to NRS

75-30  376A.020 and the adopted open-space plan must be endorsed by

75-31  resolution by the city council of each incorporated city in the

75-32  county.

75-33     4.  All fees, taxes, interest and penalties imposed and all

75-34  amounts of tax required to be paid pursuant to this section must be

75-35  paid to the Department of Taxation in the form of remittances

75-36  payable to the Department of Taxation. The Department of Taxation

75-37  shall deposit the payments with the State Treasurer for credit to the

75-38  Sales and Use Tax Account in the State General Fund. The State

75-39  Controller, acting upon the collection data furnished by the

75-40  Department of Taxation, shall transfer monthly all fees, taxes,

75-41  interest and penalties collected during the preceding month to the

75-42  Intergovernmental Fund and remit the money to the county

75-43  treasurer.

 

 

76-1      Sec. 152.  NRS 376A.050 is hereby amended to read as

76-2  follows:

76-3      376A.050  1.  Except as otherwise provided in subsection 2, in

76-4  addition to all other taxes imposed on the revenues from retail sales,

76-5  a board of county commissioners in each county whose population

76-6  is 100,000 or more but less than 400,000, may by ordinance, but not

76-7  as in a case of emergency, impose a tax at the rate of up to 1/4 of 1

76-8  percent of the gross receipts of any retailer from the sale of all

76-9  tangible personal property sold at retail, or stored, used or otherwise

76-10  consumed in the county, after receiving the approval of a majority

76-11  of the registered voters of the county voting on the question at a

76-12  primary, general or special election. The question may be combined

76-13  with questions submitted pursuant to NRS [375.025, 376A.040 and

76-14  376A.070 or any combination thereof.] 376A.040 or 376A.070, or

76-15  both.

76-16     2.  If a county imposes a sales tax pursuant to this section and

76-17  NRS 376A.040, the combined additional sales tax must not exceed

76-18  1/4 of 1 percent. A tax imposed pursuant to this section applies

76-19  throughout the county, including incorporated cities in the county.

76-20     3.  Before the election occurs, an open-space plan must be

76-21  adopted by the board of county commissioners pursuant to NRS

76-22  376A.020 and the adopted open-space plan must be endorsed by

76-23  resolution by the city council of each incorporated city in the

76-24  county.

76-25     4.  All fees, taxes, interest and penalties imposed and all

76-26  amounts of tax required to be paid pursuant to this section must be

76-27  paid to the Department of Taxation in the form of remittances

76-28  payable to the Department of Taxation. The Department of Taxation

76-29  shall deposit the payments with the State Treasurer for credit to the

76-30  Sales and Use Tax Account in the State General Fund. The State

76-31  Controller, acting upon the collection data furnished by the

76-32  Department of Taxation, shall transfer monthly all fees, taxes,

76-33  interest and penalties collected during the preceding month to the