(Reprinted with amendments adopted on July 13, 2003)

 

Senate Bill No. 6–Committee of the Whole

 

June 26, 2003

____________

 

Referred to Committee of the Whole

 

SUMMARY—Makes various changes concerning state financial administration. (BDR 32‑14)

 

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; 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; providing for the imposition and administration of a franchise fee on business entities for the privilege of doing business in this state; eliminating the tax imposed on the privilege of conducting business in this state; revising 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 Legislative Auditor to conduct performance audits
of certain school districts; providing for the formation of Business Advisory Councils; 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 a nonprofit religious,

1-15  charitable, fraternal or other organization that qualifies as a tax-

1-16  exempt organization pursuant to 26 U.S.C. § 501(c).

1-17      3.  “Political subdivision” means any entity described in

1-18  subsection 9 of NRS 612.055.

1-19      Sec. 5.  “Employment” has the meaning ascribed to it in NRS

1-20  612.065 to 612.145, inclusive.

1-21      Sec. 6.  “Taxpayer” means any person liable for the tax

1-22  imposed by this chapter.

1-23      Sec. 7.  The Department shall:

1-24      1.  Administer and enforce the provisions of this chapter, and

1-25  may adopt such regulations as it deems appropriate for those

1-26  purposes.

1-27      2.  Deposit all taxes, interest and penalties it receives pursuant

1-28  to this chapter in the State Treasury for credit to the State General

1-29  Fund.

1-30      Sec. 8.  1.  Each person responsible for maintaining the

1-31  records of a taxpayer shall:

1-32      (a) Keep such records as may be necessary to determine the

1-33  amount of the liability of the taxpayer pursuant to the provisions

1-34  of this chapter;

2-1  (b) Preserve those records for 4 years or until any litigation or

2-2  prosecution pursuant to this chapter is finally determined,

2-3  whichever is longer; and

2-4  (c) Make the records available for inspection by the

2-5  Department upon demand at reasonable times during regular

2-6  business hours.

2-7  2.  The Department may by regulation specify the types of

2-8  records which must be kept to determine the amount of the

2-9  liability of a taxpayer pursuant to the provisions of this chapter.

2-10      3.  Any person who violates the provisions of subsection 1 is

2-11  guilty of a misdemeanor.

2-12      Sec. 9.  1.  To verify the accuracy of any return filed or, if

2-13  no return is filed by a taxpayer, to determine the amount required

2-14  to be paid, the Department, or any person authorized in writing by

2-15  the Department, may examine the books, papers and records of

2-16  any person who may be liable for the tax imposed by this chapter.

2-17      2.  Any person who may be liable for the tax imposed by this

2-18  chapter and who keeps outside of this state any books, papers and

2-19  records relating thereto shall pay to the Department an amount

2-20  equal to the allowance provided for state officers and employees

2-21  generally while traveling outside of the State for each day or

2-22  fraction thereof during which an employee of the Department is

2-23  engaged in examining those documents, plus any other actual

2-24  expenses incurred by the employee while he is absent from his

2-25  regular place of employment to examine those documents.

2-26      Sec. 9.5. The Executive Director may request from any other

2-27  governmental agency or officer such information as he deems

2-28  necessary to carry out the provisions of this chapter. If the

2-29  Executive Director obtains any confidential information pursuant

2-30  to such a request, he shall maintain the confidentiality of that

2-31  information in the same manner and to the same extent as

2-32  provided by law for the agency or officer from whom the

2-33  information was obtained.

2-34      Sec. 10.  1.  Except as otherwise provided in this section and

2-35  NRS 360.250, the records and files of the Department concerning

2-36  the administration of this chapter are confidential and privileged.

2-37  The Department, and any employee engaged in the administration

2-38  of this chapter or charged with the custody of any such records or

2-39  files, shall not disclose any information obtained from the

2-40  Department’s records or files or from any examination,

2-41  investigation or hearing authorized by the provisions of this

2-42  chapter. Neither the Department nor any employee of the

2-43  Department may be required to produce any of the records, files

2-44  and information for the inspection of any person or for use in any

2-45  action or proceeding.

3-1  2.  The records and files of the Department concerning the

3-2  administration of this chapter are not confidential and privileged

3-3  in the following cases:

3-4  (a) Testimony by a member or employee of the Department

3-5  and production of records, files and information on behalf of the

3-6  Department or a taxpayer in any action or proceeding pursuant to

3-7  the provisions of this chapter if that testimony or the records, files

3-8  or information, or the facts shown thereby are directly involved in

3-9  the action or proceeding.

3-10      (b) Delivery to a taxpayer or his authorized representative of a

3-11  copy of any return or other document filed by the taxpayer

3-12  pursuant to this chapter.

3-13      (c) Publication of statistics so classified as to prevent the

3-14  identification of a particular person or document.

3-15      (d) Exchanges of information with the Internal Revenue

3-16  Service in accordance with compacts made and provided for in

3-17  such cases.

3-18      (e) Disclosure in confidence to the Governor or his agent in

3-19  the exercise of the Governor’s general supervisory powers, or to

3-20  any person authorized to audit the accounts of the Department in

3-21  pursuance of an audit, or to the Attorney General or other legal

3-22  representative of the State in connection with an action or

3-23  proceeding pursuant to this chapter, or to any agency of this or

3-24  any other state charged with the administration or enforcement of

3-25  laws relating to taxation.

3-26      (f) Exchanges of information pursuant to subsection 3.

3-27      3.  The Commission may agree with any county fair and

3-28  recreation board or the governing body of any county, city or town

3-29  for the continuing exchange of information concerning taxpayers.

3-30      Sec. 11.  1.  There is hereby imposed an excise tax on each

3-31  employer at the rate of 0.5 percent of the wages, as determined

3-32  pursuant to NRS 612.545, paid by the employer during a calendar

3-33  quarter with respect to employment.

3-34      2.  The tax imposed by this section must not be deducted, in

3-35  whole or in part, from any wages of persons in the employment of

3-36  the employer.

3-37      3.  Each employer shall, on or before the last day of the month

3-38  immediately following each calendar quarter for which the

3-39  employer is required to pay a contribution pursuant to

3-40  NRS 612.535:

3-41      (a) File with the Department:

3-42          (1) A return on a form prescribed by the Department; and

3-43          (2) A copy of any report required by the Employment

3-44  Security Division of the Department of Employment, Training and

3-45  Rehabilitation for determining the amount of the contribution

4-1  required pursuant to NRS 612.535 for any wages paid by the

4-2  employer during that calendar quarter; and

4-3  (b) Remit to the Department any tax due pursuant to this

4-4  chapter for that calendar quarter.

4-5  Sec. 12.  Upon written application made before the date on

4-6  which payment must be made, the Department may for good cause

4-7  extend by 30 days the time within which a taxpayer is required to

4-8  pay the tax imposed by this chapter. If the tax is paid during the

4-9  period of extension, no penalty or late charge may be imposed for

4-10  failure to pay at the time required, but the taxpayer shall pay

4-11  interest at the rate of 1 percent per month from the date on which

4-12  the amount would have been due without the extension until the

4-13  date of payment, unless otherwise provided in NRS 360.232 or

4-14  360.320.

4-15      Sec. 13.  The remedies of the State provided for in this

4-16  chapter are cumulative, and no action taken by the Department or

4-17  the Attorney General constitutes an election by the State to pursue

4-18  any remedy to the exclusion of any other remedy for which

4-19  provision is made in this chapter.

4-20      Sec. 14.  If the Department determines that any tax, penalty

4-21  or interest has been paid more than once or has been erroneously

4-22  or illegally collected or computed, the Department shall set forth

4-23  that fact in the records of the Department and certify to the State

4-24  Board of Examiners the amount collected in excess of the amount

4-25  legally due and the person from whom it was collected or by whom

4-26  it was paid. If approved by the State Board of Examiners, the

4-27  excess amount collected or paid must be credited on any amounts

4-28  then due from the person under this chapter, and the balance

4-29  refunded to the person or his successors in interest.

4-30      Sec. 15.  1.  Except as otherwise provided in NRS 360.235

4-31  and 360.395:

4-32      (a) No refund may be allowed unless a claim for it is filed with

4-33  the Department within 3 years after the last day of the month

4-34  following the calendar quarter for which the overpayment was

4-35  made.

4-36      (b) No credit may be allowed after the expiration of the period

4-37  specified for filing claims for refund unless a claim for credit is

4-38  filed with the Department within that period.

4-39      2.  Each claim must be in writing and must state the specific

4-40  grounds upon which the claim is founded.

4-41      3.  Failure to file a claim within the time prescribed in this

4-42  chapter constitutes a waiver of any demand against the State on

4-43  account of overpayment.

4-44      4.  Within 30 days after rejecting any claim in whole or in

4-45  part, the Department shall serve notice of its action on the

5-1  claimant in the manner prescribed for service of notice of a

5-2  deficiency determination.

5-3  Sec. 16.  1.  Except as otherwise provided in this section and

5-4  NRS 360.320, interest must be paid upon any overpayment of any

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

5-6  percent per month, or fraction thereof, from the last day of the

5-7  calendar month following the calendar quarter for which the

5-8  overpayment was made. No refund or credit may be made of any

5-9  interest imposed upon the person making the overpayment with

5-10  respect to the amount being refunded or credited.

5-11      2.  The interest must be paid:

5-12      (a) In the case of a refund, to the last day of the calendar

5-13  month following the date upon which the person making the

5-14  overpayment, if he has not already filed a claim, is notified by

5-15  the Department that a claim may be filed or the date upon which

5-16  the claim is certified to the State Board of Examiners, whichever is

5-17  earlier.

5-18      (b) In the case of a credit, to the same date as that to which

5-19  interest is computed on the tax or the amount against which the

5-20  credit is applied.

5-21      3.  If the Department determines that any overpayment has

5-22  been made intentionally or by reason of carelessness, the

5-23  Department shall not allow any interest on the overpayment.

5-24      Sec. 17.  1.  No injunction, writ of mandate or other legal or

5-25  equitable process may issue in any suit, action or proceeding in

5-26  any court against this state or against any officer of the State to

5-27  prevent or enjoin the collection under this chapter of the tax

5-28  imposed by this chapter or any amount of tax, penalty or interest

5-29  required to be collected.

5-30      2.  No suit or proceeding may be maintained in any court for

5-31  the recovery of any amount alleged to have been erroneously or

5-32  illegally determined or collected unless a claim for refund or credit

5-33  has been filed.

5-34      Sec. 18.  1.  Within 90 days after a final decision upon a

5-35  claim filed pursuant to this chapter is rendered by the

5-36  Commission, the claimant may bring an action against the

5-37  Department on the grounds set forth in the claim in a court of

5-38  competent jurisdiction in Carson City, the county of this state

5-39  where the claimant resides or maintains his principal place of

5-40  business or a county in which any relevant proceedings were

5-41  conducted by the Department, for the recovery of the whole or any

5-42  part of the amount with respect to which the claim has been

5-43  disallowed.

6-1  2.  Failure to bring an action within the time specified

6-2  constitutes a waiver of any demand against the State on account of

6-3  alleged overpayments.

6-4  Sec. 19.  1.  If the Department fails to mail notice of action

6-5  on a claim within 6 months after the claim is filed, the claimant

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

6-7  Commission within 30 days after the last day of the 6-month

6-8  period. If the claimant is aggrieved by the decision of the

6-9  Commission rendered on appeal, the claimant may, within 90 days

6-10  after the decision is rendered, bring an action against the

6-11  Department on the grounds set forth in the claim for the recovery

6-12  of the whole or any part of the amount claimed as an

6-13  overpayment.

6-14      2.  If judgment is rendered for the plaintiff, the amount of the

6-15  judgment must first be credited towards any tax due from the

6-16  plaintiff.

6-17      3.  The balance of the judgment must be refunded to the

6-18  plaintiff.

6-19      Sec. 20.  In any judgment, interest must be allowed at the rate

6-20  of 6 percent per annum upon the amount found to have been

6-21  illegally collected from the date of payment of the amount to the

6-22  date of allowance of credit on account of the judgment, or to a

6-23  date preceding the date of the refund warrant by not more than 30

6-24  days. The date must be determined by the Department.

6-25      Sec. 21.  A judgment may not be rendered in favor of the

6-26  plaintiff in any action brought against the Department to recover

6-27  any amount paid when the action is brought by or in the name of

6-28  an assignee of the person paying the amount or by any person

6-29  other than the person who paid the amount.

6-30      Sec. 22.  1.  The Department may recover a refund or any

6-31  part thereof which is erroneously made and any credit or part

6-32  thereof which is erroneously allowed in an action brought in a

6-33  court of competent jurisdiction in Carson City or Clark County in

6-34  the name of the State of Nevada.

6-35      2.  The action must be tried in Carson City or Clark County

6-36  unless the court, with the consent of the Attorney General, orders

6-37  a change of place of trial.

6-38      3.  The Attorney General shall prosecute the action, and the

6-39  provisions of NRS, the Nevada Rules of Civil Procedure and the

6-40  Nevada Rules of Appellate Procedure relating to service of

6-41  summons, pleadings, proofs, trials and appeals are applicable to

6-42  the proceedings.

6-43      Sec. 23.  1.  If any amount in excess of $25 has been

6-44  illegally determined, either by the Department or by the person

6-45  filing the return, the Department shall certify this fact to the State

7-1  Board of Examiners, and the latter shall authorize the

7-2  cancellation of the amount upon the records of the Department.

7-3  2.  If an amount not exceeding $25 has been illegally

7-4  determined, either by the Department or by the person filing the

7-5  return, the Department, without certifying this fact to the State

7-6  Board of Examiners, shall authorize the cancellation of the

7-7  amount upon the records of the Department.

7-8  Sec. 24.  1.  A person shall not:

7-9  (a) Make, cause to be made or permit to be made any false or

7-10  fraudulent return or declaration or false statement in any return

7-11  or declaration with intent to defraud the State or to evade payment

7-12  of the tax or any part of the tax imposed by this chapter.

7-13      (b) Make, cause to be made or permit to be made any false

7-14  entry in books, records or accounts with intent to defraud the State

7-15  or to evade the payment of the tax or any part of the tax imposed

7-16  by this chapter.

7-17      (c) Keep, cause to be kept or permit to be kept more than one

7-18  set of books, records or accounts with intent to defraud the State

7-19  or to evade the payment of the tax or any part of the tax imposed

7-20  by this chapter.

7-21      2.  Any person who violates the provisions of subsection 1 is

7-22  guilty of a gross misdemeanor.

7-23      Sec. 24.10. Title 32 of NRS is hereby amended by adding

7-24  thereto a new chapter to consist of the provisions set forth as

7-25  sections 24.12 to 24.74, inclusive, of this act.

7-26      Sec. 24.12.  As used in this chapter, unless the context

7-27  otherwise requires, the words and terms defined in sections 24.14

7-28  to 24.26, inclusive, of this act have the meanings ascribed to them

7-29  in those sections.

7-30      Sec. 24.14.  “Commission” means the Nevada Tax

7-31  Commission.

7-32      Sec. 24.16.  “Federal taxable income” means the taxable

7-33  income of a financial institution for a taxable year, as set forth in

7-34  the federal income tax return filed by the financial institution for

7-35  that year with the Internal Revenue Service, and any other taxable

7-36  income of a financial institution for a taxable year under federal

7-37  law, regardless of whether it is actually reported.

7-38      Sec. 24.18.  1.  Except as otherwise provided in subsection 2,

7-39  “financial institution” means:

7-40      (a) An institution licensed, registered or otherwise authorized

7-41  to do business in this state pursuant to the provisions of chapter

7-42  604, 645B, 645E or 649 of NRS or title 55 or 56 of NRS, or a

7-43  similar institution chartered or licensed pursuant to federal law

7-44  and doing business in this state;

8-1  (b) Any other person conducting loan or credit card processing

8-2  activities in this state; and

8-3  (c) Any other bank, bank holding company, national bank,

8-4  savings association, federal savings bank, trust company, credit

8-5  union, building and loan association, investment company,

8-6  registered broker or dealer in securities or commodities, finance

8-7  company, dealer in commercial paper or other business entity

8-8  engaged in the business of lending money, providing credit,

8-9  securitizing receivables or fleet leasing, or any related business

8-10  entity, doing business in this state.

8-11      2.  The term does not include:

8-12      (a) A nonprofit organization that is recognized as exempt from

8-13  taxation pursuant to 26 U.S.C. § 501(c).

8-14      (b) A credit union organized under the provisions of chapter

8-15  678 of NRS or the Federal Credit Union Act.

8-16      Sec. 24.20. “Gross revenue” means the total amount of the

8-17  money and the value of any other consideration received or

8-18  receivable by a financial institution which the financial institution

8-19  is required to report for the purposes of federal income taxation.

8-20      Sec. 24.22.  “Nevada taxable income” means the amount of

8-21  the federal taxable income of a financial institution, as adjusted

8-22  pursuant to section 24.44 of this act.

8-23      Sec. 24.24.  “Taxable year” means the taxable year used by

8-24  the financial institution for the purposes of federal income

8-25  taxation.

8-26      Sec. 24.26.  “Taxpayer” means any person liable for a tax

8-27  imposed pursuant to this chapter.

8-28      Sec. 24.28.  The Department shall:

8-29      1.  Administer and enforce the provisions of this chapter, and

8-30  may adopt such regulations as it deems appropriate for that

8-31  purpose.

8-32      2.  Deposit all taxes, interest and penalties it receives pursuant

8-33  to this chapter in the State Treasury for credit to the State General

8-34  Fund.

8-35      Sec. 24.30.  1.  Each person responsible for maintaining the

8-36  records of a financial institution shall:

8-37      (a) Keep such records as may be necessary to determine the

8-38  amount of its liability pursuant to the provisions of this chapter;

8-39      (b) Preserve those records for 4 years or until any litigation or

8-40  prosecution pursuant to this chapter is finally determined,

8-41  whichever is longer; and

8-42      (c) Make the records available for inspection by the

8-43  Department upon demand at reasonable times during regular

8-44  business hours.

9-1  2.  For the purposes of this section, “record” includes any

9-2  federal income tax return filed by a financial institution with the

9-3  Internal Revenue Service.

9-4  3.  Any person who violates the provisions of subsection 1 is

9-5  guilty of a misdemeanor.

9-6  Sec. 24.32.  1.  To verify the accuracy of any return filed or,

9-7  if no return is filed by a financial institution, to determine the

9-8  amount required to be paid, the Department, or any person

9-9  authorized in writing by the Department, may examine the books,

9-10  papers and records of any person or financial institution that may

9-11  be liable for the tax imposed by this chapter.

9-12      2.  Any person or financial institution which may be liable for

9-13  the tax imposed by this chapter and which keeps outside of this

9-14  state its books, papers and records relating thereto shall pay to the

9-15  Department an amount equal to the allowance provided for state

9-16  officers and employees generally while traveling outside of the

9-17  State for each day or fraction thereof during which an employee

9-18  of the Department is engaged in examining those documents, plus

9-19  any other actual expenses incurred by the employee while he is

9-20  absent from his regular place of employment to examine those

9-21  documents.

9-22      Sec. 24.34.  The Executive Director may request from any

9-23  other governmental agency or officer such information as he

9-24  deems necessary to carry out the provisions of this chapter. If the

9-25  Executive Director obtains any confidential information pursuant

9-26  to such a request, he shall maintain the confidentiality of that

9-27  information in the same manner and to the same extent as

9-28  provided by law for the agency or officer from whom the

9-29  information was obtained.

9-30      Sec. 24.36.  1.  Except as otherwise provided in this section

9-31  and NRS 360.250, the records and files of the Department

9-32  concerning the administration of this chapter are confidential and

9-33  privileged. The Department, and any employee engaged in the

9-34  administration of this chapter or charged with the custody of any

9-35  such records or files, shall not disclose any information obtained

9-36  from the Department’s records or files or from any examination,

9-37  investigation or hearing authorized by the provisions of this

9-38  chapter. Neither the Department nor any employee of the

9-39  Department may be required to produce any of the records, files

9-40  and information for the inspection of any person or for use in any

9-41  action or proceeding.

9-42      2.  The records and files of the Department concerning the

9-43  administration of this chapter are not confidential and privileged

9-44  in the following cases:

10-1      (a) Testimony by a member or employee of the Department

10-2  and production of records, files and information on behalf of the

10-3  Department or a taxpayer in any action or proceeding pursuant to

10-4  the provisions of this chapter if that testimony or the records, files

10-5  or information, or the facts shown thereby, are directly involved in

10-6  the action or proceeding.

10-7      (b) Delivery to a taxpayer or his authorized representative of a

10-8  copy of any return or other document filed by the taxpayer

10-9  pursuant to this chapter.

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

10-11  identification of a particular financial institution or document.

10-12     (d) Exchanges of information with the Internal Revenue

10-13  Service in accordance with compacts made and provided for in

10-14  such cases.

10-15     (e) Disclosure in confidence to the Governor or his agent in

10-16  the exercise of the Governor’s general supervisory powers, or to

10-17  any person authorized to audit the accounts of the Department in

10-18  pursuance of an audit, or to the Attorney General or other legal

10-19  representative of the State in connection with an action or

10-20  proceeding pursuant to this chapter, or to any agency of this or

10-21  any other state charged with the administration or enforcement of

10-22  laws relating to taxation.

10-23     (f) Exchanges of information pursuant to subsection 3.

10-24     3.  The Commission may agree with any county fair and

10-25  recreation board or the governing body of any county, city or town

10-26  for the continuing exchange of information concerning taxpayers.

10-27     Sec. 24.38.  1.  A franchise tax is hereby imposed upon each

10-28  financial institution for the privilege of engaging in a business in

10-29  this state at the rate of 4 percent of the Nevada taxable income of

10-30  the financial institution each taxable year. The tax for each

10-31  taxable year is due on the last day of that taxable year.

10-32     2.  Each financial institution engaging in a business in this

10-33  state during a taxable year shall file with the Department a return

10-34  on a form prescribed by the Department, together with the

10-35  remittance of any tax due pursuant to this chapter for that taxable

10-36  year, not later than the date the financial institution is required to

10-37  file its federal income tax return for that taxable year with the

10-38  Internal Revenue Service. The return required by this subsection

10-39  must include:

10-40     (a) A statement that the return is made under penalty of

10-41  perjury; and

10-42     (b) Such information as is required by the Department.

10-43     Sec. 24.40.  1.  In addition to the returns required by section

10-44  24.38 of this act, a financial institution that is a member of an

10-45  affiliated group and is engaged in a unitary business in this state

11-1  with one or more other members of the affiliated group shall file

11-2  with the Department such reports regarding the unitary business

11-3  as the Department determines is appropriate for the

11-4  administration and enforcement of the provisions of this chapter.

11-5      2.  The Department may allow two or more financial

11-6  institutions that are members of an affiliated group to file a

11-7  consolidated return for the purposes of this chapter if the financial

11-8  institutions are allowed to file a consolidated return for the

11-9  purposes of federal income taxation.

11-10     3.  As used in this section:

11-11     (a) “Affiliated group” means a group of two or more financial

11-12  institutions, each of which is controlled by a common owner or by

11-13  one or more of the members of the group.

11-14     (b) “Controlled by” means the possession, directly or

11-15  indirectly, of the power to direct or cause the direction of the

11-16  management and policies of a financial institution, whether

11-17  through the ownership of voting securities, by contract or

11-18  otherwise.

11-19     (c) “Unitary business” means a business characterized by

11-20  unity of ownership, functional integration, centralization of

11-21  management and economy of scale.

11-22     Sec. 24.42.  1.  If a financial institution files an amended

11-23  federal income tax return that reflects a change in income

11-24  required to be reported pursuant to this chapter, the financial

11-25  institution shall file an amended return with the Department not

11-26  later than the date it files the amended federal return.

11-27     2.  If a final determination of federal taxable income is made

11-28  under federal law and, pursuant to that determination, the federal

11-29  taxable income of a financial institution is found to differ from

11-30  that initially reported to the Internal Revenue Service, the

11-31  financial institution shall, within 30 days after the date of that

11-32  determination, report the determination to the Department in

11-33  writing, together with such information as the Department deems

11-34  appropriate.

11-35     3.  If, based upon an amended return or report filed pursuant

11-36  to this section, it appears that the tax imposed by this chapter has

11-37  not been fully assessed, the Department shall assess the deficiency,

11-38  with interest calculated at the rate and in the manner set forth in

11-39  NRS 360.417. Any assessment required by this subsection must be

11-40  made within 1 year after the Department receives the amended

11-41  return or report.

11-42     Sec. 24.44.  1.  In computing the Nevada taxable income of

11-43  a financial institution, its federal taxable income must be:

11-44     (a) Increased by:

12-1          (1) The amount of any deduction for the tax imposed by

12-2  section 24.38 of this act or the equivalent taxing statute of another

12-3  state;

12-4          (2) The amount of any net operating loss in the taxable

12-5  year that is carried back to previous taxable years pursuant to 26

12-6  U.S.C. § 172;

12-7          (3) The amount of any deduction claimed for the taxable

12-8  year pursuant to 26 U.S.C. § 172 which was previously used to

12-9  offset any increase required by this subsection; and

12-10         (4) Any interest or dividends on the obligations or securities

12-11  of any state or political subdivision of a state, other than this state

12-12  or a political subdivision of this state; and

12-13     (b) Decreased by:

12-14         (1) Any income that is exempt from taxation by this state

12-15  under the Constitution, laws or treaties of the United States or the

12-16  Nevada Constitution;

12-17         (2) Any interest income received on obligations of the

12-18  United States; and

12-19         (3) The amount of any refund of income tax received from

12-20  another state which has been included as income in computing

12-21  federal taxable income.

12-22     2.  After making the calculations required by subsection 1, the

12-23  resulting amount must be allocated or apportioned to this state in

12-24  accordance with the regulations adopted pursuant to section 24.46

12-25  of this act to determine the amount of the tax liability of the

12-26  financial institution. The Nevada taxable income of the financial

12-27  institution consists of the amount of the tax liability of the

12-28  financial institution determined pursuant to this subsection.

12-29     3.  The Department shall adopt regulations for the

12-30  administration of this section.

12-31      Sec. 24.46.  The Department shall adopt regulations providing

12-32  for the allocation or apportionment to this state of the tax liability

12-33  of a financial institution pursuant to this chapter. If the federal

12-34  taxable income of a financial institution is derived from business

12-35  conducted both within and outside this state, whether or not the

12-36  financial institution is physically present in another state or is

12-37  subject to another state’s jurisdiction to impose a tax on the

12-38  financial institution, the apportionment factor for determining the

12-39  tax liability of the financial institution derived from business

12-40  conducted by it in this state must consist of a fraction, the

12-41  numerator of which is the gross revenue of the financial

12-42  institution from customers whose address is within this state, and

12-43  the denominator of which is the gross revenue of the financial

12-44  institution from its entire operation as a financial institution.

13-1      Sec. 24.48.  1.  For the purposes of this chapter, the method

13-2  of accounting and the taxable year used by a financial institution

13-3  must be the same as those used by the financial institution for the

13-4  purposes of federal income taxation. If the financial institution

13-5  does not regularly use a single method of accounting, the taxable

13-6  income of the financial institution must be computed under such a

13-7  method as the Department determines will fairly reflect that

13-8  income.

13-9      2.  If there is any change in the method of accounting or the

13-10  taxable year used by a financial institution for the purposes of

13-11  federal income taxation, the same change must be implemented

13-12  for the purposes of this chapter.

13-13     Sec. 24.50.  Upon written application made before the date on

13-14  which a financial institution is otherwise required to file a return

13-15  and to pay the tax imposed by this chapter, the Department may:

13-16     1.  If the financial institution is granted an extension of time

13-17  by the Federal Government for the filing of its federal income tax

13-18  return, extend the time for filing the return required by this

13-19  chapter until not later than the date the financial institution is

13-20  required to file its federal income tax return pursuant to the

13-21  extension of time granted by the Federal Government. The

13-22  Department shall require, as a condition to the granting of any

13-23  extension pursuant to this subsection, the payment of the tax

13-24  estimated to be due pursuant to this chapter.

13-25     2.  For good cause, extend by 30 days the time within which

13-26  the financial institution is required to pay the tax. If the tax is paid

13-27  during a period of extension granted pursuant to this subsection,

13-28  no penalty or late charge may be imposed for failure to pay at the

13-29  time required, but the financial institution shall pay interest at the

13-30  rate of 1 percent per month from the date on which the amount

13-31  would have been due without the extension until the date of

13-32  payment, unless otherwise provided in NRS 360.232 or 360.320.

13-33     Sec. 24.52.  The remedies of the State provided for in this

13-34  chapter are cumulative, and no action taken by the Department or

13-35  the Attorney General constitutes an election by the State to pursue

13-36  any remedy to the exclusion of any other remedy for which

13-37  provision is made in this chapter.

13-38     Sec. 24.54.  If the Department determines that any tax,

13-39  penalty or interest has been paid more than once or has been

13-40  erroneously or illegally collected or computed, the Department

13-41  shall set forth that fact in the records of the Department and shall

13-42  certify to the State Board of Examiners the amount collected in

13-43  excess of the amount legally due and the financial institution or

13-44  person from which it was collected or by whom it was paid. If

13-45  approved by the State Board of Examiners, the excess amount

14-1  collected or paid must be credited on any amounts then due from

14-2  the person or financial institution under this chapter, and the

14-3  balance refunded to the person or financial institution, or its

14-4  successors, administrators or executors.

14-5      Sec. 24.56.  1.  Except as otherwise provided in NRS 360.235

14-6  and 360.395:

14-7      (a) No refund may be allowed unless a claim for it is filed with

14-8  the Department within 3 years after the last day of the month

14-9  immediately following the close of the taxable year for which the

14-10  overpayment was made.

14-11     (b) No credit may be allowed after the expiration of the period

14-12  specified for filing claims for refund unless a claim for credit is

14-13  filed with the Department within that period.

14-14     2.  Each claim must be in writing and must state the specific

14-15  grounds upon which the claim is founded.

14-16     3.  Failure to file a claim within the time prescribed in this

14-17  chapter constitutes a waiver of any demand against the State on

14-18  account of overpayment.

14-19     4.  Within 30 days after rejecting any claim in whole or in

14-20  part, the Department shall serve notice of its action on the

14-21  claimant in the manner prescribed for service of notice of a

14-22  deficiency determination.

14-23     Sec. 24.58.  1.  Except as otherwise provided in this section

14-24  and NRS 360.320, interest must be paid upon any overpayment of

14-25  any amount of the tax imposed by this chapter at the rate of 0.5

14-26  percent per month, or fraction thereof, from the last day of the

14-27  calendar month immediately following the calendar month in

14-28  which the overpayment was made. No refund or credit may be

14-29  made of any interest imposed upon the person or financial

14-30  institution making the overpayment with respect to the amount

14-31  being refunded or credited.

14-32     2.  The interest must be paid:

14-33     (a) In the case of a refund, to the last day of the calendar

14-34  month following the date upon which the person making the

14-35  overpayment, if he has not already filed a claim, is notified by

14-36  the Department that a claim may be filed or the date upon which

14-37  the claim is certified to the State Board of Examiners, whichever is

14-38  earlier.

14-39     (b) In the case of a credit, to the same date as that to which

14-40  interest is computed on the tax or the amount against which the

14-41  credit is applied.

14-42     3.  If the Department determines that any overpayment has

14-43  been made intentionally or by reason of carelessness, it shall not

14-44  allow any interest on the overpayment.

15-1      Sec. 24.60.  1.  No injunction, writ of mandate or other legal

15-2  or equitable process may issue in any suit, action or proceeding in

15-3  any court against this state or against any officer of the State to

15-4  prevent or enjoin the collection under this chapter of the tax

15-5  imposed by this chapter or any amount of tax, penalty or interest

15-6  required to be collected.

15-7      2.  No suit or proceeding may be maintained in any court for

15-8  the recovery of any amount alleged to have been erroneously or

15-9  illegally determined or collected unless a claim for refund or credit

15-10  has been filed.

15-11     Sec. 24.62.  1.  Within 90 days after a final decision upon a

15-12  claim filed pursuant to this chapter is rendered by the

15-13  Commission, the claimant may bring an action against the

15-14  Department on the grounds set forth in the claim in a court of

15-15  competent jurisdiction in Carson City, the county of this state

15-16  where the claimant resides or maintains his principal place of

15-17  business or a county in which any relevant proceedings were

15-18  conducted by the Department, for the recovery of the whole or any

15-19  part of the amount with respect to which the claim has been

15-20  disallowed.

15-21     2.  Failure to bring an action within the time specified

15-22  constitutes a waiver of any demand against the State on account of

15-23  alleged overpayments.

15-24     Sec. 24.64.  1.  If the Department fails to mail notice of

15-25  action on a claim within 6 months after the claim is filed, the

15-26  claimant may consider the claim disallowed and may file an

15-27  appeal with the Commission within 30 days after the last day of

15-28  the 6-month period. If the claimant is aggrieved by the decision of

15-29  the Commission rendered on appeal, the claimant may, within 90

15-30  days after the decision is rendered, bring an action against the

15-31  Department on the grounds set forth in the claim for the recovery

15-32  of the whole or any part of the amount claimed as an

15-33  overpayment.

15-34     2.  If judgment is rendered for the plaintiff, the amount of the

15-35  judgment must first be credited towards any tax due from the

15-36  plaintiff.

15-37     3.  The balance of the judgment must be refunded to the

15-38  plaintiff.

15-39     Sec. 24.66.  In any judgment, interest must be allowed at the

15-40  rate of 6 percent per annum upon the amount found to have been

15-41  illegally collected from the date of payment of the amount to the

15-42  date of allowance of credit on account of the judgment, or to a

15-43  date preceding the date of the refund warrant by not more than 30

15-44  days. The date must be determined by the Department.

16-1      Sec. 24.68.  A judgment may not be rendered in favor of the

16-2  plaintiff in any action brought against the Department to recover

16-3  any amount paid when the action is brought by or in the name of

16-4  an assignee of the financial institution paying the amount or by

16-5  any person other than the person or financial institution which

16-6  paid the amount.

16-7      Sec. 24.70.  1.  The Department may recover a refund or any

16-8  part thereof which is erroneously made and any credit or part

16-9  thereof which is erroneously allowed in an action brought in a

16-10  court of competent jurisdiction in Carson City or Clark County in

16-11  the name of the State of Nevada.

16-12     2.  The action must be tried in Carson City or Clark County

16-13  unless the court, with the consent of the Attorney General, orders

16-14  a change of place of trial.

16-15     3.  The Attorney General shall prosecute the action, and the

16-16  provisions of NRS, the Nevada Rules of Civil Procedure and the

16-17  Nevada Rules of Appellate Procedure relating to service of

16-18  summons, pleadings, proofs, trials and appeals are applicable to

16-19  the proceedings.

16-20     Sec. 24.72.  1.  If any amount in excess of $25 has been

16-21  illegally determined, either by the Department or by the person

16-22  filing the return, the Department shall certify this fact to the State

16-23  Board of Examiners, and the latter shall authorize the

16-24  cancellation of the amount upon the records of the Department.

16-25     2.  If an amount not exceeding $25 has been illegally

16-26  determined, either by the Department or by the person or financial

16-27  institution filing the return, the Department, without certifying

16-28  this fact to the State Board of Examiners, shall authorize the

16-29  cancellation of the amount upon the records of the Department.

16-30     Sec. 24.74.  1.  A person shall not:

16-31     (a) Make, cause to be made or permit to be made any false or

16-32  fraudulent return or declaration or false statement in any return

16-33  or declaration with intent to defraud the State or to evade payment

16-34  of the tax or any part of the tax imposed by this chapter.

16-35     (b) Make, cause to be made or permit to be made any false

16-36  entry in books, records or accounts with intent to defraud the State

16-37  or to evade the payment of the tax or any part of the tax imposed

16-38  by this chapter.

16-39     (c) Keep, cause to be kept or permit to be kept more than one

16-40  set of books, records or accounts with intent to defraud the State

16-41  or to evade the payment of the tax or any part of the tax imposed

16-42  by this chapter.

16-43     2.  Any person who violates the provisions of subsection 1 is

16-44  guilty of a gross misdemeanor.

17-1      Sec. 25.  Title 32 of NRS is hereby amended by adding thereto

17-2  a new chapter to consist of the provisions set forth as sections 26 to

17-3  58, inclusive, of this act.

17-4      Sec. 26.  As used in this chapter, unless the context otherwise

17-5  requires, the words and terms defined in sections 27 to 33,

17-6  inclusive, of this act have the meanings ascribed to them in those

17-7  sections.

17-8      Sec. 27.  “Admission charge” means the total amount,

17-9  expressed in terms of money, of consideration paid for the right or

17-10  privilege to have access to a facility where live entertainment is

17-11  provided.

17-12     Sec. 28.  “Board” means the State Gaming Control Board.

17-13     Sec. 29.  “Business” means any activity engaged in or

17-14  caused to be engaged in by a business entity with the object of

17-15  gain, benefit or advantage, either direct or indirect, to any person

17-16  or governmental entity.

17-17     Sec. 30.  1.  “Business entity” includes:

17-18     (a) A corporation, partnership, proprietorship, limited-liability

17-19  company, business association, joint venture, limited-liability

17-20  partnership, business trust and their equivalents organized under

17-21  the laws of this state or another jurisdiction and any other type of

17-22  entity that engages in business.

17-23     (b) A natural person engaging in a business if he is deemed to

17-24  be a business entity pursuant to section 34 of this act.

17-25     (c) A brothel authorized to conduct business in this state.

17-26     2.  The term does not include a governmental entity.

17-27     Sec. 31.  “Licensed gaming establishment” has the meaning

17-28  ascribed to it in NRS 463.0169. The term does not include a

17-29  licensed gaming establishment that is licensed for less than 51 slot

17-30  machines, less than six games, or any combination of slot

17-31  machines and games within those respective limits.

17-32     Sec. 32.  “Live entertainment” means any activity provided

17-33  for pleasure, enjoyment, recreation, relaxation, diversion or other

17-34  similar purpose by a person or persons who are physically present

17-35  when providing that activity to a patron or group of patrons who

17-36  are physically present.

17-37     Sec. 33.  “Taxpayer” means any person liable for the tax

17-38  imposed pursuant to this chapter.

17-39     Sec. 34.  A natural person engaging in a business shall be

17-40  deemed to be a business entity that is subject to the provisions of

17-41  this chapter if the person is required to file with the Internal

17-42  Revenue Service a Schedule C (Form 1040), Profit or Loss From

17-43  Business Form, or its equivalent or successor form, or a Schedule

17-44  E (Form 1040), Supplemental Income and Loss Form, or its

17-45  equivalent or successor form, for the business.

18-1      Sec. 35.  The Department shall provide by regulation for a

18-2  more detailed definition of live entertainment consistent with the

18-3  general definition set forth in section 32 of this act for use by the

18-4  Board and the Department in determining whether an activity is a

18-5  taxable activity under the provisions of this chapter.

18-6      Sec. 36.  1.  Except as otherwise provided in this section,

18-7  there is hereby imposed an excise tax on admission to any facility

18-8  in this state where live entertainment is provided. If the live

18-9  entertainment is provided at a facility with a maximum seating

18-10  capacity that is:

18-11     (a) Less than 7,500, the rate of the tax is 10 percent of the

18-12  admission charge to the facility plus 10 percent of any amounts

18-13  paid for food, refreshments and merchandise purchased at the

18-14  facility.

18-15     (b) At least 7,500, the rate of the tax is 5 percent of the

18-16  admission charge to the facility.

18-17     2.  Amounts paid for gratuities directly or indirectly remitted

18-18  to persons employed at a facility where live entertainment is

18-19  provided or for service charges, including those imposed in

18-20  connection with the use of credit cards or debit cards, which are

18-21  collected and retained by persons other than the taxpayer are not

18-22  taxable pursuant to this section.

18-23     3.  A business entity that collects any amount that is taxable

18-24  pursuant to subsection 1 is liable for the tax imposed, but is

18-25  entitled to collect reimbursement from any person paying that

18-26  amount.

18-27     4.  Any ticket for live entertainment must state whether the tax

18-28  imposed by this section is included in the price of the ticket. If the

18-29  ticket does not include such a statement, the taxpayer shall pay the

18-30  tax based on the face amount of the ticket.

18-31     5.  The tax imposed by subsection 1 does not apply to:

18-32     (a) Live entertainment that this state is prohibited from taxing

18-33  under the Constitution, laws or treaties of the United States or the

18-34  Nevada Constitution.

18-35     (b) Live entertainment that is provided by or entirely for the

18-36  benefit of a nonprofit religious, charitable, fraternal or other

18-37  organization that qualifies as a tax-exempt organization pursuant

18-38  to 26 U.S.C. § 501(c).

18-39     (c) Any boxing contest or exhibition governed by the

18-40  provisions of chapter 467 of NRS.

18-41     (d) Live entertainment that is not provided at a licensed

18-42  gaming establishment if the facility in which the live

18-43  entertainment is provided has a maximum seating capacity that is

18-44  less than 300.

19-1      (e) Merchandise sold outside the facility in which the live

19-2  entertainment is provided, unless the purchase of the merchandise

19-3  entitles the purchaser to admission to the entertainment.

19-4      (f) Live entertainment that is provided at a trade show.

19-5      (g) Music performed by musicians who move constantly

19-6  through the audience if no other form of live entertainment is

19-7  afforded to the patrons.

19-8      (h) Live entertainment that is provided at a licensed gaming

19-9  establishment at private meetings or dinners attended by members

19-10  of a particular organization or by a casual assemblage if the

19-11  purpose of the event is not primarily for entertainment.

19-12     (i) Live entertainment provided in the common area of a

19-13  shopping mall.

19-14     6.  As used in this section:

19-15     (a) “Facility” means any area or premises where live

19-16  entertainment is provided and for which consideration is collected

19-17  for the right or privilege of entering that area or premises.

19-18     (b) “Maximum seating capacity” means, in the following order

19-19  of priority:

19-20         (1) The maximum occupancy of the facility in which live

19-21  entertainment is provided, as determined by the State Fire

19-22  Marshal or the local governmental agency that has the authority

19-23  to determine the maximum occupancy of the facility;

19-24         (2) If such a maximum occupancy has not been

19-25  determined, the maximum occupancy of the facility designated in

19-26  any permit required to be obtained in order to provide the live

19-27  entertainment; or

19-28         (3) If such a permit does not designate the maximum

19-29  occupancy of the facility, the actual seating capacity of the facility

19-30  in which the live entertainment is provided.

19-31     Sec. 37.  A taxpayer shall hold the amount of all taxes for

19-32  which he is liable pursuant to this chapter in a separate account in

19-33  trust for the State.

19-34     Sec. 38.  1.  The Board shall:

19-35     (a) Collect the tax imposed by this chapter from taxpayers who

19-36  are licensed gaming establishments; and

19-37     (b) Adopt such regulations as are necessary to carry out the

19-38  provisions of paragraph (a). The regulations must be adopted in

19-39  accordance with the provisions of chapter 233B of NRS and must

19-40  be codified in the Nevada Administrative Code.

19-41     2.  The Department shall:

19-42     (a) Collect the tax imposed by this chapter from all other

19-43  taxpayers; and

19-44     (b) Adopt such regulations as are necessary to carry out the

19-45  provisions of paragraph (a).

20-1      3.  For the purposes of:

20-2      (a) Subsection 1, the provisions of chapter 463 of NRS relating

20-3  to the payment, collection, administration and enforcement of

20-4  gaming license fees and taxes, including, without limitation, any

20-5  provisions relating to the imposition of penalties and interest, shall

20-6  be deemed to apply to the payment, collection, administration and

20-7  enforcement of the taxes imposed by this chapter to the extent that

20-8  those provisions do not conflict with the provisions of this chapter.

20-9      (b) Subsection 2, the provisions of chapter 360 of NRS relating

20-10  to the payment, collection, administration and enforcement of

20-11  taxes, including, without limitation, any provisions relating to the

20-12  imposition of penalties and interest, shall be deemed to apply to

20-13  the payment, collection, administration and enforcement of the

20-14  taxes imposed by this chapter to the extent that those provisions do

20-15  not conflict with the provisions of this chapter.

20-16     4.  To ensure that the tax imposed by section 36 of this act is

20-17  collected fairly and equitably, the Board and the Department

20-18  shall:

20-19     (a) Jointly, coordinate the administration and collection of

20-20  that tax and the regulation of taxpayers who are liable for the

20-21  payment of the tax.

20-22     (b) Upon request, assist the other agency in the collection of

20-23  that tax.

20-24     Sec. 39.  1.  Except as otherwise provided in this section:

20-25     (a) Each taxpayer who is a licensed gaming establishment

20-26  shall file with the Board, on or before the 24th day of each month,

20-27  a report showing the amount of all taxable receipts for the

20-28  preceding month. The report must be in a form prescribed by the

20-29  Board.

20-30     (b) All other taxpayers shall file with the Department, on or

20-31  before the 24th day of each month, a report showing the amount

20-32  of all taxable receipts for the preceding month. The report must be

20-33  in a form prescribed by the Department.

20-34     2.  The Board or the Department, if it deems it necessary to

20-35  ensure payment to or facilitate the collection by the State of the tax

20-36  imposed by section 36 of this act, may require reports to be filed

20-37  not later than 10 days after the end of each calendar quarter.

20-38     3.  Each report required to be filed by this section must be

20-39  accompanied by the amount of the tax that is due for the period

20-40  covered by the report.

20-41     4.  The Board and the Department shall deposit all taxes,

20-42  interest and penalties it receives pursuant to this chapter in the

20-43  State Treasury for credit to the State General Fund.

20-44     Sec. 40.  Upon written application made before the date on

20-45  which payment must be made, the Board or the Department may,

21-1  for good cause, extend by 30 days the time within which a

21-2  taxpayer is required to pay the tax imposed by this chapter. If the

21-3  tax is paid during the period of extension, no penalty or late

21-4  charge may be imposed for failure to pay at the time required, but

21-5  the taxpayer shall pay interest at the rate of 1 percent per month

21-6  from the date on which the amount would have been due without

21-7  the extension until the date of payment, unless otherwise provided

21-8  in NRS 360.232 or 360.320.

21-9      Sec. 41.  1.  Each person responsible for maintaining the

21-10  records of a taxpayer shall:

21-11     (a) Keep such records as may be necessary to determine the

21-12  amount of the liability of the taxpayer pursuant to the provisions

21-13  of this chapter;

21-14     (b) Preserve those records for:

21-15         (1) At least 5 years if the taxpayer is a licensed gaming

21-16  establishment or until any litigation or prosecution pursuant to

21-17  this chapter is finally determined, whichever is longer; or

21-18         (2) At least 4 years if the taxpayer is not a licensed gaming

21-19  establishment or until any litigation or prosecution pursuant to

21-20  this chapter is finally determined, whichever is longer; and

21-21     (c) Make the records available for inspection by the Board or

21-22  the Department upon demand at reasonable times during regular

21-23  business hours.

21-24     2.  The Board and the Department may by regulation specify

21-25  the types of records which must be kept to determine the amount

21-26  of the liability of a taxpayer from whom they are required to

21-27  collect the tax imposed by this chapter.

21-28     3.  Any agreement that is entered into, modified or extended

21-29  after January 1, 2004, for the lease, assignment or transfer of any

21-30  premises upon which any activity subject to the tax imposed by this

21-31  chapter is, or thereafter may be, conducted shall be deemed to

21-32  include a provision that the taxpayer required to pay the tax must

21-33  be allowed access to, upon demand, all books, records and

21-34  financial papers held by the lessee, assignee or transferee which

21-35  must be kept pursuant to this section. Any person conducting

21-36  activities subject to the tax imposed by section 36 of this act who

21-37  fails to maintain or disclose his records pursuant to this subsection

21-38  is liable to the taxpayer for any penalty paid by the taxpayer for

21-39  the late payment or nonpayment of the tax caused by the failure to

21-40  maintain or disclose records.

21-41     4.  A person who violates any provision of this section is guilty

21-42  of a misdemeanor.

21-43     Sec. 42.  1.  To verify the accuracy of any report filed or, if

21-44  no report is filed by a taxpayer, to determine the amount of tax

21-45  required to be paid:

22-1      (a) The Board, or any person authorized in writing by the

22-2  Board, may examine the books, papers and records of any licensed

22-3  gaming establishment that may be liable for the tax imposed by

22-4  this chapter.

22-5      (b) The Department, or any person authorized in writing by

22-6  the Department, may examine the books, papers and records of

22-7  any other person who may be liable for the tax imposed by this

22-8  chapter.

22-9      2.  Any person who may be liable for the tax imposed by this

22-10  chapter and who keeps outside of this state any books, papers and

22-11  records relating thereto shall pay to the Board or the Department

22-12  an amount equal to the allowance provided for state officers and

22-13  employees generally while traveling outside of the State for each

22-14  day or fraction thereof during which an employee of the Board or

22-15  the Department is engaged in examining those documents, plus

22-16  any other actual expenses incurred by the employee while he is

22-17  absent from his regular place of employment to examine those

22-18  documents.

22-19     Sec. 43.  1.  Except as otherwise provided in this section and

22-20  NRS 360.250, the records and files of the Board and the

22-21  Department concerning the administration of this chapter are

22-22  confidential and privileged. The Board, the Department and any

22-23  employee of the Board or the Department engaged in the

22-24  administration of this chapter or charged with the custody of any

22-25  such records or files shall not disclose any information obtained

22-26  from the records or files of the Board or the Department or from

22-27  any examination, investigation or hearing authorized by the

22-28  provisions of this chapter. The Board, the Department and any

22-29  employee of the Board or the Department may not be required to

22-30  produce any of the records, files and information for the

22-31  inspection of any person or for use in any action or proceeding.

22-32     2.  The records and files of the Board and the Department

22-33  concerning the administration of this chapter are not confidential

22-34  and privileged in the following cases:

22-35     (a) Testimony by a member or employee of the Board or the

22-36  Department and production of records, files and information on

22-37  behalf of the Board or the Department or a taxpayer in any action

22-38  or proceeding pursuant to the provisions of this chapter, if that

22-39  testimony or the records, files or information, or the facts shown

22-40  thereby, are directly involved in the action or proceeding.

22-41     (b) Delivery to a taxpayer or his authorized representative of a

22-42  copy of any report or other document filed by the taxpayer

22-43  pursuant to this chapter.

22-44     (c) Publication of statistics so classified as to prevent the

22-45  identification of a particular person or document.

23-1      (d) Exchanges of information with the Internal Revenue

23-2  Service in accordance with compacts made and provided for in

23-3  such cases.

23-4      (e) Disclosure in confidence to the Governor or his agent in

23-5  the exercise of the Governor’s general supervisory powers, or to

23-6  any person authorized to audit the accounts of the Board or the

23-7  Department in pursuance of an audit, or to the Attorney General

23-8  or other legal representative of the State in connection with an

23-9  action or proceeding pursuant to this chapter, or to any agency of

23-10  this or any other state charged with the administration or

23-11  enforcement of laws relating to taxation.

23-12     Sec. 44.  1.  If:

23-13     (a) The Board determines that a licensed gaming

23-14  establishment is taking any action with the intent to defraud the

23-15  State or to evade the payment of the tax or any part of the tax

23-16  imposed by this chapter, the Board shall establish an amount upon

23-17  which the tax imposed by this chapter must be based.

23-18     (b) The Department determines that a taxpayer who is not a

23-19  licensed gaming establishment is taking any action with the intent

23-20  to defraud the State or to evade the payment of the tax or any part

23-21  of the tax imposed by this chapter, the Department shall establish

23-22  an amount upon which the tax imposed by this chapter must be

23-23  based.

23-24     2.  The amount established by the Board or the Department

23-25  pursuant to subsection 1 must be based upon the taxable liability

23-26  of business entities that are deemed comparable by the Board or

23-27  the Department to that of the taxpayer.

23-28     Sec. 45.  1. If a taxpayer:

23-29     (a) Is unable to collect all or any part of an admission charge

23-30  which was included in the taxable receipts reported for a previous

23-31  reporting period; and

23-32     (b) Has taken a deduction on his federal income tax return

23-33  pursuant to 26 U.S.C. § 166(a) for the amount which he is unable

23-34  to collect,

23-35  he is entitled to receive a credit for the amount of tax paid on

23-36  account of that uncollected amount. The credit may be used

23-37  against the amount of tax that the taxpayer is subsequently

23-38  required to pay pursuant to this chapter.

23-39     2.  If the Internal Revenue Service disallows a deduction

23-40  described in paragraph (b) of subsection 1 and the taxpayer

23-41  claimed a credit on a return for a previous reporting period

23-42  pursuant to subsection 1, the taxpayer shall include the amount of

23-43  that credit in the amount of taxes reported pursuant to this chapter

23-44  in the first return filed with the Board or the Department after the

23-45  deduction is disallowed.

24-1      3.  If a taxpayer collects all or any part of an admission

24-2  charge for which he claimed a credit on a return for a previous

24-3  reporting period pursuant to subsection 2, he shall include:

24-4      (a) The amount collected in the admission charges reported

24-5  pursuant to paragraph (a) of subsection 1; and

24-6      (b) The tax payable on the amount collected in the amount of

24-7  taxes reported,

24-8  in the first return filed with the Board or the Department after that

24-9  collection.

24-10     4.  Except as otherwise provided in subsection 5, upon

24-11  determining that a taxpayer has filed a return which contains one

24-12  or more violations of the provisions of this section, the Board or

24-13  the Department shall:

24-14     (a) For the first return of any taxpayer that contains one or

24-15  more violations, issue a letter of warning to the taxpayer which

24-16  provides an explanation of the violation or violations contained in

24-17  the return.

24-18     (b) For the first or second return, other than a return

24-19  described in paragraph (a), in any calendar year which contains

24-20  one or more violations, assess a penalty equal to the amount of the

24-21  tax which was not reported.

24-22     (c) For the third and each subsequent return in any calendar

24-23  year which contains one or more violations, assess a penalty of

24-24  three times the amount of the tax which was not reported.

24-25     5.  For the purposes of subsection 4, if the first violation of

24-26  this section by any taxpayer was determined by the Board or the

24-27  Department through an audit which covered more than one return

24-28  of the taxpayer, the Board or the Department shall treat all returns

24-29  which were determined through the same audit to contain a

24-30  violation or violations in the manner provided in paragraph (a) of

24-31  subsection 4.

24-32     Sec. 46.  The remedies of the State provided for in this

24-33  chapter are cumulative, and no action taken by the Board, the

24-34  Department or the Attorney General constitutes an election by the

24-35  State to pursue any remedy to the exclusion of any other remedy

24-36  for which provision is made in this chapter.

24-37     Sec. 47.  If the Board or the Department determines that any

24-38  tax, penalty or interest has been paid more than once or has been

24-39  erroneously or illegally collected or computed, the Board or the

24-40  Department shall set forth that fact in its records and shall certify

24-41  to the State Board of Examiners the amount collected in excess of

24-42  the amount legally due and the person from which it was collected

24-43  or by whom it was paid. If approved by the State Board of

24-44  Examiners, the excess amount collected or paid must be credited

25-1  on any amounts then due from the person under this chapter, and

25-2  the balance refunded to the person or his successors in interest.

25-3      Sec. 48.  1.  Except as otherwise provided in NRS 360.235

25-4  and 360.395:

25-5      (a) No refund may be allowed unless a claim for it is filed

25-6  with:

25-7          (1) The Board, if the taxpayer is a licensed gaming

25-8  establishment; or

25-9          (2) The Department, if the taxpayer is not a licensed

25-10  gaming establishment.

25-11  A claim must be filed within 3 years after the last day of the month

25-12  following the reporting period for which the overpayment was

25-13  made.

25-14     (b) No credit may be allowed after the expiration of the period

25-15  specified for filing claims for refund unless a claim for credit is

25-16  filed with the Board or the Department within that period.

25-17     2.  Each claim must be in writing and must state the specific

25-18  grounds upon which the claim is founded.

25-19     3.  Failure to file a claim within the time prescribed in this

25-20  chapter constitutes a waiver of any demand against the State on

25-21  account of overpayment.

25-22     4.  Within 30 days after rejecting any claim in whole or in

25-23  part, the Board or the Department shall serve notice of its action

25-24  on the claimant in the manner prescribed for service of notice of a

25-25  deficiency determination.

25-26     Sec. 49.  1.  Except as otherwise provided in this section and

25-27  NRS 360.320, interest must be paid upon any overpayment of any

25-28  amount of the tax imposed by this chapter at the rate of 0.5

25-29  percent per month, or fraction thereof, from the last day of the

25-30  calendar month following the reporting period for which the

25-31  overpayment was made. No refund or credit may be made of any

25-32  interest imposed upon the person making the overpayment with

25-33  respect to the amount being refunded or credited.

25-34     2.  The interest must be paid:

25-35     (a) In the case of a refund, to the last day of the calendar

25-36  month following the date upon which the person making the

25-37  overpayment, if he has not already filed a claim, is notified by

25-38  the Board or the Department that a claim may be filed or the date

25-39  upon which the claim is certified to the State Board of Examiners,

25-40  whichever is earlier.

25-41     (b) In the case of a credit, to the same date as that to which

25-42  interest is computed on the tax or amount against which the credit

25-43  is applied.

25-44     3.  If the Board or the Department determines that any

25-45  overpayment has been made intentionally or by reason of

26-1  carelessness, the Board or the Department shall not allow any

26-2  interest on the overpayment.

26-3      Sec. 50.  1.  No injunction, writ of mandate or other legal or

26-4  equitable process may issue in any suit, action or proceeding in

26-5  any court against this state or against any officer of the State to

26-6  prevent or enjoin the collection under this chapter of the tax

26-7  imposed by this chapter or any amount of tax, penalty or interest

26-8  required to be collected.

26-9      2.  No suit or proceeding may be maintained in any court for

26-10  the recovery of any amount alleged to have been erroneously or

26-11  illegally determined or collected unless a claim for refund or credit

26-12  has been filed.

26-13     Sec. 51.  1.  Within 90 days after a final decision upon a

26-14  claim filed pursuant to this chapter is rendered by:

26-15     (a) The Nevada Gaming Commission, the claimant may bring

26-16  an action against the Board on the grounds set forth in the claim.

26-17     (b) The Nevada Tax Commission, the claimant may bring an

26-18  action against the Department on the grounds set forth in the

26-19  claim.

26-20     2.  An action brought pursuant to subsection 1 must be

26-21  brought in a court of competent jurisdiction in Carson City, the

26-22  county of this state where the claimant resides or maintains his

26-23  principal place of business or a county in which any relevant

26-24  proceedings were conducted by the Board or the Department, for

26-25  the recovery of the whole or any part of the amount with respect to

26-26  which the claim has been disallowed.

26-27     3.  Failure to bring an action within the time specified

26-28  constitutes a waiver of any demand against the State on account of

26-29  alleged overpayments.

26-30     Sec. 52.  1.  If the Board fails to mail notice of action on a

26-31  claim within 6 months after the claim is filed, the claimant may

26-32  consider the claim disallowed and file an appeal with the Nevada

26-33  Gaming Commission within 30 days after the last day of the

26-34  6-month period.

26-35     2.  If the Department fails to mail notice of action on a claim

26-36  within 6 months after the claim is filed, the claimant may consider

26-37  the claim disallowed and file an appeal with the Nevada Tax

26-38  Commission within 30 days after the last day of the 6-month

26-39  period.

26-40     3.  If the claimant is aggrieved by the decision of:

26-41     (a) The Nevada Gaming Commission rendered on appeal, the

26-42  claimant may, within 90 days after the decision is rendered, bring

26-43  an action against the Board on the grounds set forth in the claim

26-44  for the recovery of the whole or any part of the amount claimed as

26-45  an overpayment.

27-1      (b) The Nevada Tax Commission rendered on appeal, the

27-2  claimant may, within 90 days after the decision is rendered, bring

27-3  an action against the Department on the grounds set forth in the

27-4  claim for the recovery of the whole or any part of the amount

27-5  claimed as an overpayment.

27-6      4.  If judgment is rendered for the plaintiff, the amount of the

27-7  judgment must first be credited towards any tax due from the

27-8  plaintiff.

27-9      5.  The balance of the judgment must be refunded to the

27-10  plaintiff.

27-11     Sec. 53.  In any judgment, interest must be allowed at the rate

27-12  of 6 percent per annum upon the amount found to have been

27-13  illegally collected from the date of payment of the amount to the

27-14  date of allowance of credit on account of the judgment, or to a

27-15  date preceding the date of the refund warrant by not more than 30

27-16  days. The date must be determined by the Board or the

27-17  Department.

27-18     Sec. 54.  A judgment may not be rendered in favor of the

27-19  plaintiff in any action brought against the Board or the

27-20  Department to recover any amount paid when the action is

27-21  brought by or in the name of an assignee of the person paying the

27-22  amount or by any person other than the person who paid the

27-23  amount.

27-24     Sec. 55.  1.  The Board or the Department may recover a

27-25  refund or any part thereof which is erroneously made and any

27-26  credit or part thereof which is erroneously allowed in an action

27-27  brought in a court of competent jurisdiction in Carson City or

27-28  Clark County in the name of the State of Nevada.

27-29     2.  The action must be tried in Carson City or Clark County

27-30  unless the court, with the consent of the Attorney General, orders

27-31  a change of place of trial.

27-32     3.  The Attorney General shall prosecute the action, and the

27-33  provisions of NRS, the Nevada Rules of Civil Procedure and the

27-34  Nevada Rules of Appellate Procedure relating to service of

27-35  summons, pleadings, proofs, trials and appeals are applicable to

27-36  the proceedings.

27-37     Sec. 56.  1.  If any amount in excess of $25 has been

27-38  illegally determined, either by the person filing the return or by the

27-39  Board or the Department, the Board or the Department shall

27-40  certify this fact to the State Board of Examiners, and the latter

27-41  shall authorize the cancellation of the amount upon the records of

27-42  the Board or the Department.

27-43     2.  If an amount not exceeding $25 has been illegally

27-44  determined, either by the person filing a return or by the Board or

27-45  the Department, the Board or the Department, without certifying

28-1  this fact to the State Board of Examiners, shall authorize the

28-2  cancellation of the amount upon the records of the Board or the

28-3  Department.

28-4      Sec. 57.  1.  Any licensed gaming establishment liable for

28-5  the payment of the tax imposed by section 36 of this act who

28-6  willfully fails to report, pay or truthfully account for the tax is

28-7  subject to the revocation of his gaming license by the Nevada

28-8  Gaming Commission.

28-9      2.  As used in this section, “licensed gaming establishment”

28-10  includes a licensed gaming establishment that is licensed for less

28-11  than 51 slot machines, less than six games, or any combination of

28-12  slot machines and games within those respective limits.

28-13     Sec. 58.  1.  A person shall not:

28-14     (a) Make, cause to be made or permit to be made any false or

28-15  fraudulent return or declaration or false statement in any report

28-16  or declaration, with intent to defraud the State or to evade

28-17  payment of the tax or any part of the tax imposed by this chapter.

28-18     (b) Make, cause to be made or permit to be made any false

28-19  entry in books, records or accounts with intent to defraud the State

28-20  or to evade the payment of the tax or any part of the tax imposed

28-21  by this chapter.

28-22     (c) Keep, cause to be kept or permit to be kept more than one

28-23  set of books, records or accounts with intent to defraud the State

28-24  or to evade the payment of the tax or any part of the tax imposed

28-25  by this chapter.

28-26     2.  Any person who violates the provisions of subsection 1 is

28-27  guilty of a gross misdemeanor.

28-28     Sec. 58.10.  Title 32 of NRS is hereby amended by adding

28-29  thereto a new chapter to consist of the provisions set forth as

28-30  sections 58.12 to 58.80, inclusive, of this act.

28-31     Sec. 58.12.  As used in this chapter, unless the context

28-32  otherwise requires, the words and terms defined in sections 58.14

28-33  to 58.28, inclusive, of this act have the meanings ascribed to them

28-34  in those sections.

28-35     Sec. 58.14.  “Business” means any activity engaged in or

28-36  caused to be engaged in with the object of gain, benefit or

28-37  advantage, either direct or indirect, to any person or governmental

28-38  entity.

28-39     Sec. 58.16.  1.  “Business entity” includes:

28-40     (a) A corporation, partnership, proprietorship, limited-liability

28-41  company, business association, joint venture, limited-liability

28-42  partnership, business trust and their equivalents organized under

28-43  the laws of this state or another jurisdiction and any other type of

28-44  entity that engages in business; and

29-1      (b) A natural person engaging in business if he is deemed to be

29-2  a business entity pursuant to section 58.42 of this act.

29-3      2.  The term does not include:

29-4      (a) A governmental entity;

29-5      (b) A nonprofit religious, charitable, fraternal or other

29-6  organization that qualifies as a tax-exempt organization pursuant

29-7  to 26 U.S.C. § 501(c); or

29-8      (c) A person who operates a business from his home and earns

29-9  from that business not more than 66 2/3 percent of the average

29-10  annual wage, as computed for the preceding calendar year

29-11  pursuant to chapter 612 of NRS and rounded to the nearest

29-12  hundred dollars.

29-13     Sec. 58.18.  “Commission” means the Nevada Tax

29-14  Commission.

29-15     Sec. 58.20.  “Engaging in business” means commencing,

29-16  conducting or continuing a business, the exercise of corporate or

29-17  franchise powers regarding a business, and the liquidation of a

29-18  business entity which is or was engaging in a business when the

29-19  liquidator holds itself out to the public as conducting that

29-20  business.

29-21     Sec. 58.22.  “Gross revenue” means the total amount received

29-22  or receivable on the use, sale or exchange of property or capital or

29-23  for the performance of services, from any transaction involving a

29-24  business entity, without any reduction for the basis of property

29-25  sold, the cost of goods or services sold, or any other expense of the

29-26  business entity.

29-27     Sec. 58.24.  1.  “Pass-through revenue” means revenue

29-28  received by a business entity solely on behalf of another in a

29-29  disclosed agency capacity, including revenue received as a broker,

29-30  bailee, consignee or auctioneer, notwithstanding that the business

29-31  entity may incur liability, primarily or secondarily, in a

29-32  transaction in its capacity as an agent.

29-33     2.  “Pass-through revenue” includes:

29-34     (a) Revenue that a real estate broker receives pursuant to NRS

29-35  645.280 and is required by contract to pay to a licensed real estate

29-36  broker, broker-salesman or salesman who performed services for

29-37  that revenue.

29-38     (b) Reimbursement for advances made by a business entity on

29-39  behalf of a customer or client, other than with respect to services

29-40  rendered or with respect to purchases of goods by the business

29-41  entity in carrying out the business in which it engages.

29-42     Sec. 58.26.  “Total amount received or receivable” means the

29-43  total sum of any money and the fair market value of any other

29-44  property or services received or receivable, including, without

29-45  limitation, rents, royalties, interest and dividends, and aggregate

30-1  net gains realized from the sale or exchange of stocks, bonds,

30-2  asset-backed securities, investment and trading assets and other

30-3  evidence of indebtedness.

30-4      Sec. 58.28.  “Total revenue” means gross revenue minus:

30-5      1.  Any revenue which this state is prohibited from taxing

30-6  pursuant to the Constitution, laws or treaties of the United States

30-7  or the Nevada Constitution.

30-8      2.  Any revenue received by a natural person from the rental

30-9  of not more than four residential units.

30-10     3.  Any revenue from the sale of agricultural products at

30-11  wholesale.

30-12     4.  If a business entity pays a tax on premiums pursuant to

30-13  title 57 of NRS, the gross revenue of the business entity derived

30-14  from direct premiums written.

30-15     5.  If a business entity pays a license fee pursuant to NRS

30-16  463.370, the total sum of all amounts specifically included by

30-17  statute in and all amounts specifically excluded by statute from the

30-18  calculation of that fee for the business entity.

30-19     6.  If a business entity pays a tax on the net proceeds of

30-20  minerals pursuant to chapter 362 of NRS, the gross yield of the

30-21  business entity from which those net proceeds are determined.

30-22     7.  Any operating revenue of a public utility for the provision

30-23  of electric, gas, water or sewer service which is operated or

30-24  regulated by a governmental entity.

30-25     8.  Any revenue from the operation of a vending stand

30-26  pursuant to NRS 426.640.

30-27     9.  Any revenue received by a certified disadvantaged business

30-28  enterprise.

30-29     Sec. 58.30.  The Legislature hereby finds and declares that

30-30  the fee imposed by this chapter on a business entity must not be

30-31  construed as a fee or tax upon the customers of the business

30-32  entity, but as a fee which is imposed upon and collectible from the

30-33  business entity and which constitutes part of the operating

30-34  overhead of the business entity.

30-35     Sec. 58.32.  The Department shall:

30-36     1.  Administer and enforce the provisions of this chapter, and

30-37  may adopt such regulations as it deems appropriate for that

30-38  purpose.

30-39     2.  Deposit all fees, interest and penalties it receives pursuant

30-40  to this chapter in the State Treasury for credit to the State General

30-41  Fund.

30-42     Sec. 58.34.  1.  Each person responsible for maintaining the

30-43  records of a business entity shall:

30-44     (a) Keep such records as may be necessary to determine the

30-45  amount of its liability pursuant to the provisions of this chapter;

31-1      (b) Preserve those records for 4 years or until any litigation or

31-2  prosecution pursuant to this chapter is finally determined,

31-3  whichever is longer; and

31-4      (c) Make the records available for inspection by the

31-5  Department upon demand at reasonable times during regular

31-6  business hours.

31-7      2.  For the purposes of this section, “record” includes any

31-8  federal income tax return filed by a business entity with the

31-9  Internal Revenue Service.

31-10     3.  Any person who violates the provisions of subsection 1 is

31-11  guilty of a misdemeanor.

31-12     Sec. 58.36.  1.  To verify the accuracy of any return filed or,

31-13  if no return is filed by a business entity, to determine the amount

31-14  required to be paid, the Department, or any person authorized in

31-15  writing by the Department, may examine the books, papers and

31-16  records of any person or business entity that may be liable for the

31-17  fee imposed by this chapter.

31-18     2.  Any person or business entity which may be liable for the

31-19  fee imposed by this chapter and which keeps outside of this state

31-20  its books, papers and records relating thereto shall pay to the

31-21  Department an amount equal to the allowance provided for state

31-22  officers and employees generally while traveling outside of the

31-23  State for each day or fraction thereof during which an employee

31-24  of the Department is engaged in examining those documents, plus

31-25  any other actual expenses incurred by the employee while he is

31-26  absent from his regular place of employment to examine those

31-27  documents.

31-28      Sec. 58.38.  The Executive Director may request from any

31-29  other governmental agency or officer such information as he

31-30  deems necessary to carry out the provisions of this chapter. If the

31-31  Executive Director obtains any confidential information pursuant

31-32  to such a request, he shall maintain the confidentiality of that

31-33  information in the same manner and to the same extent as

31-34  provided by law for the agency or officer from whom the

31-35  information was obtained.

31-36     Sec. 58.40.  1.  Except as otherwise provided in this section

31-37  and NRS 360.250, the records and files of the Department

31-38  concerning the administration of this chapter are confidential and

31-39  privileged. The Department, and any employee engaged in the

31-40  administration of this chapter or charged with the custody of any

31-41  such records or files, shall not disclose any information obtained

31-42  from the Department’s records or files or from any examination,

31-43  investigation or hearing authorized by the provisions of this

31-44  chapter. Neither the Department nor any employee of the

31-45  Department may be required to produce any of the records, files

32-1  and information for the inspection of any person or for use in any

32-2  action or proceeding.

32-3      2.  The records and files of the Department concerning the

32-4  administration of this chapter are not confidential and privileged

32-5  in the following cases:

32-6      (a) Testimony by a member or employee of the Department

32-7  and production of records, files and information on behalf of the

32-8  Department or the business entity that paid the fee in any action or

32-9  proceeding pursuant to the provisions of this chapter if that

32-10  testimony or the records, files or information, or the facts shown

32-11  thereby, are directly involved in the action or proceeding.

32-12     (b) Delivery to the person who paid the fee or his authorized

32-13  representative of a copy of any return or other document filed by

32-14  him pursuant to this chapter.

32-15     (c) Publication of statistics so classified as to prevent the

32-16  identification of a particular business entity or document.

32-17     (d) Exchanges of information with the Internal Revenue

32-18  Service in accordance with compacts made and provided for in

32-19  such cases.

32-20     (e) Disclosure in confidence to the Governor or his agent in

32-21  the exercise of the Governor’s general supervisory powers, or to

32-22  any person authorized to audit the accounts of the Department in

32-23  pursuance of an audit, or to the Attorney General or other legal

32-24  representative of the State in connection with an action or

32-25  proceeding pursuant to this chapter, or to any agency of this or

32-26  any other state charged with the administration or enforcement of

32-27  laws relating to taxation.

32-28     (f) Exchanges of information pursuant to subsection 3.

32-29     3.  The Commission may agree with any county fair and

32-30  recreation board or the governing body of any county, city or town

32-31  for the continuing exchange of information concerning taxpayers.

32-32     Sec. 58.42.  A natural person engaging in business shall be

32-33  deemed to be a business entity that is subject to the provisions of

32-34  this chapter if the person files with the Internal Revenue Service a

32-35  Schedule C (Form 1040), Profit or Loss From Business Form, or

32-36  its equivalent or successor form, a Schedule E (Form 1040),

32-37  Supplemental Income and Loss Form, or its equivalent or

32-38  successor form, or a Schedule F (Form 1040), Profit or Loss

32-39  From Farming Form, or its equivalent or successor form, for the

32-40  business.

32-41     Sec. 58.44.  1.  A quarterly franchise fee is hereby imposed

32-42  upon each business entity for the privilege of engaging in business

32-43  in this state at the rate of:

 

 

33-1    Annual Total RevenueFranchise Fee per

33-2      of Business EntityCalendar Quarter

33-3  More than $0 but less than $500,000$0

33-4  $500,000 or more but less than $750,000    $175

33-5  $750,000 or more but less than $1,000,000    $240

33-6  $1,000,000 or more but less than $1,500,000    $350

33-7  $1,500,000 or more but less than $2,000,000    $480

33-8  $2,000,000 or more but less than $2,500,000    $620

33-9  $2,500,000 or more but less than $3,000,000    $750

33-10  $3,000,000 or more but less than $4,000,000    $950

33-11  $4,000,000 or more but less than $5,000,000    $1,200

33-12  $5,000,000 or more but less than $7,500,000    $1,700

33-13  $7,500,000 or more but less than $10,000,000    $2,400

33-14  $10,000,000 or more but less than $20,000,000    $3,500

33-15  $20,000,000 or more    $7,000

33-16      plus $3,500 for each additional $10,000,000

 

33-17     2.  The fee for each calendar quarter is due on the last day of

33-18  the quarter and must be paid on or before the last day of the

33-19  month immediately following the quarter. The business entity

33-20  shall estimate its annual total revenue for the fiscal year in which

33-21  the franchise fee is being paid for the purposes of determining the

33-22  amount of the franchise fee that is due.

33-23     3.  Upon determination of the actual annual total revenue of

33-24  the business entity for that fiscal year, the business entity shall

33-25  reconcile the amount due from franchise fees for the year. If the

33-26  amount of franchise fees paid exceeds the amount actually due

33-27  from the business entity, the excess fees must be credited against

33-28  future franchise fees payable by the business entity. If the amount

33-29  of franchise fees paid was less than the amount due, the amount

33-30  due remaining unpaid shall be deemed, for the purposes of NRS

33-31  360.417, to constitute a failure to pay the fee within the time

33-32  required pursuant to this section.

33-33     4.  Each business entity engaging in business in this state

33-34  shall file with the Department a return on a form prescribed by the

33-35  Department, together with the remittance of any fee due pursuant

33-36  to this chapter, on or before the last day of the month immediately

33-37  following the calendar quarter for which the payment is being

33-38  made. The form must provide each business entity with an

33-39  opportunity for account reconciliation.

33-40     Sec. 58.46.  1.  Except as otherwise provided in this section,

33-41  the total revenue of a business entity in this state must be

33-42  computed for each fiscal year based upon the accounting method

33-43  used by the business entity to compute its income for the purposes

33-44  of federal income taxation. If a business entity does not regularly

34-1  use a single accounting method, or if the Department determines

34-2  that the accounting method used by the business entity does not

34-3  clearly reflect the total revenue of the business entity in this state,

34-4  the calculation of that revenue must be made on the basis of such

34-5  an accounting method as, in the opinion of the Department,

34-6  clearly reflects the total revenue of the business entity in this state.

34-7      2.  If a business entity is engaged in more than one type of

34-8  business, the business entity:

34-9      (a) May, in computing its total revenue in this state, use a

34-10  different accounting method for each of those types of business;

34-11  and

34-12     (b) Shall compute its total revenue in this state for each of

34-13  those types of business based upon the accounting method used by

34-14  the business entity to compute its income for that type of business

34-15  for the purposes of federal income taxation.

34-16     3.  If a business entity changes the accounting method upon

34-17  which it computes its income for the purposes of federal income

34-18  taxation, the business entity shall, before using that method to

34-19  compute its total revenue in this state, provide the Department

34-20  with written notification of the change in its accounting method.

34-21  If:

34-22     (a) The business entity or any of its owners, officers,

34-23  employees, agents or representatives are required, on behalf of the

34-24  business entity, to obtain the consent of the Internal Revenue

34-25  Service to the change in its accounting method, the business entity

34-26  shall include a notarized copy of that consent in its written

34-27  notification to the Department; or

34-28     (b) The business entity is not required to obtain the consent of

34-29  the Internal Revenue Service to the change in its accounting

34-30  method, the business entity shall obtain the consent of the

34-31  Department to the change in its accounting method before using

34-32  that method to compute its total revenue in this state.

34-33     4.  If a business entity fails to comply with the provisions of

34-34  subsections 1 and 2, any required change in the accounting

34-35  method does not affect the imposition and calculation of any

34-36  penalty, or the calculation of any additional amount of franchise

34-37  fees due, pursuant to this chapter.

34-38     Sec. 58.48.  In calculating the franchise fee of a business

34-39  entity pursuant to this chapter, the business entity is entitled to

34-40  deduct from its total revenue:

34-41     1.  Any revenue upon which this state is prohibited from

34-42  imposing a franchise fee pursuant to the Constitution or laws of

34-43  the United States or the Nevada Constitution.

34-44     2.  The amount of any federal, state or local governmental

34-45  fuel taxes collected by the business entity.

35-1      3.  Any revenue of the business entity attributable to interest

35-2  upon any bonds or securities of the Federal Government, the State

35-3  of Nevada or a political subdivision of this state.

35-4      4.  Any pass-through revenue of the business entity.

35-5      5.  Any revenue received:

35-6      (a) As dividends or distributions by a parent organization from

35-7  the capital account of a subsidiary entity of the parent

35-8  organization; or

35-9      (b) As payments between:

35-10         (1) A parent organization and a wholly owned subsidiary

35-11  entity of the parent organization; or

35-12         (2) The wholly owned subsidiary entities of a parent

35-13  organization.

35-14     6.  Any revenue received by a hospital or provider of health

35-15  care from a governmental entity.

35-16     7.  Any cash discounts the business entity allows a purchaser

35-17  of property, rights or services.

35-18     8.  Any indebtedness to the business entity that is impossible

35-19  or impracticable to collect and which is written off by the business

35-20  entity as a bad debt for purposes of federal income taxation.

35-21     9.  Any counterfeit currency received by the business entity for

35-22  which the business entity is not reimbursed.

35-23     10.  The amount of any payments received by the business

35-24  entity upon claims for health, casualty or life insurance.

35-25     11.  The cost of all payments made to contractors and

35-26  subcontractors for the portion of any materials or services

35-27  provided in the development of improved real property, made by a

35-28  business entity who is:

35-29     (a) A contractor or subcontractor; or

35-30     (b) In the business of developing improved real property.

35-31  The amount of the deduction must not exceed the gross revenue of

35-32  the business entity from the transaction.

35-33     12.  Any promotional allowances by the business entity.

35-34     13.  The gross revenue attributable to damaged or returned

35-35  merchandise.

35-36     14.  Any revenue of the business entity upon which the

35-37  business entity paid the tax imposed pursuant to section 95 of this

35-38  act.

35-39     15.  Any revenue of the business entity from the sale or

35-40  distribution of gasoline or any other motor vehicle fuel.

35-41     Sec. 58.50.  The Department shall adopt regulations

35-42  providing for the allocation or apportionment of the liability for

35-43  franchise fees pursuant to this chapter of business entities

35-44  engaging in a business both within and outside of this state. The

35-45  regulations must be consistent with the methods of dividing

36-1  income contained in the provisions of the Uniform Division of

36-2  Income for Tax Purposes Act approved by the National

36-3  Conference of Commissioners on Uniform State Laws, as those

36-4  provisions existed on July 1, 2003.

36-5      Sec. 58.52.  The Department shall, upon application by a

36-6  business entity engaging in a business both within and outside of

36-7  this state, reduce the liability of the business entity for franchise

36-8  fees pursuant to this chapter to the extent required by the

36-9  Constitution or laws of the United States or the Nevada

36-10  Constitution, as a result of the tax liability of the business entity to

36-11  other states and their political subdivisions.

36-12     Sec. 58.54.  1.  If the Department determines, after notice

36-13  and hearing, that:

36-14     (a) A business entity and one or more of its affiliated business

36-15  entities are engaged in the same or a similar type of business; and

36-16     (b) The primary or a substantial purpose for engaging in that

36-17  type of business through affiliated business entities is to avoid or

36-18  to reduce liability for the franchise fees imposed by this

36-19  chapter,

36-20  the Department shall require the business entity and one or more

36-21  of its affiliated business entities to file a consolidated return for

36-22  the purposes of this chapter.

36-23     2.  For the purposes of this section:

36-24     (a) “Affiliated business entity” means a business entity that

36-25  directly, or indirectly through one or more intermediaries,

36-26  controls, is controlled by or is under common control with,

36-27  another specified business entity.

36-28     (b) “Control,” as used in the terms “controls,” “controlled by”

36-29  and “under common control with,” means the possession, directly

36-30  or indirectly, of the power to direct or cause the direction of the

36-31  management and policies of a business entity, whether through

36-32  the ownership of voting securities, by contract or otherwise.

36-33     Sec. 58.56.  Upon written application made before the date on

36-34  which payment must be made, the Department may for good cause

36-35  extend by 30 days the time within which a business entity is

36-36  required to pay the franchise fee imposed by this chapter. If the

36-37  franchise fee is paid during the period of extension, no penalty or

36-38  late charge may be imposed for failure to pay at the time required,

36-39  but the business entity shall pay interest at the rate of 1 percent

36-40  per month from the date on which the amount would have been

36-41  due without the extension until the date of payment, unless

36-42  otherwise provided in NRS 360.232 or 360.320.

36-43     Sec. 58.58.  The remedies of the State provided for in this

36-44  chapter are cumulative, and no action taken by the Department or

36-45  the Attorney General constitutes an election by the State to pursue

37-1  any remedy to the exclusion of any other remedy for which

37-2  provision is made in this chapter.

37-3      Sec. 58.60.  If the Department determines that any franchise

37-4  fee, penalty or interest has been paid more than once or has been

37-5  erroneously or illegally collected or computed, the Department

37-6  shall set forth that fact in the records of the Department and

37-7  certify to the State Board of Examiners the amount collected in

37-8  excess of the amount legally due and the business entity or person

37-9  from which it was collected or by whom it was paid. If approved by

37-10  the State Board of Examiners, the excess amount collected or paid

37-11  must be credited on any amounts then due from the person or

37-12  business entity under this chapter, and the balance refunded to the

37-13  person or business entity, or its successors, administrators or

37-14  executors.

37-15     Sec. 58.62.  1.  Except as otherwise provided in NRS 360.235

37-16  and 360.395:

37-17     (a) No refund may be allowed unless a claim for it is filed with

37-18  the Department within 3 years after the last day of the month

37-19  immediately following the calendar quarter for which the

37-20  overpayment was made.

37-21     (b) No credit may be allowed after the expiration of the period

37-22  specified for filing claims for refund unless a claim for credit is

37-23  filed with the Department within that period.

37-24     2.  Each claim must be in writing and must state the specific

37-25  grounds upon which the claim is founded.

37-26     3.  Failure to file a claim within the time prescribed in this

37-27  chapter constitutes a waiver of any demand against the State on

37-28  account of overpayment.

37-29     4.  Within 30 days after rejecting any claim in whole or in

37-30  part, the Department shall serve notice of its action on the

37-31  claimant in the manner prescribed for service of notice of a

37-32  deficiency determination.

37-33     Sec. 58.64.  1.  Except as otherwise provided in this section

37-34  and NRS 360.320, interest must be paid upon any overpayment of

37-35  any amount of the franchise fee imposed by this chapter at the rate

37-36  of 0.5 percent per month, or fraction thereof, from the last day of

37-37  the month immediately following the calendar quarter for which

37-38  the overpayment was made. No refund or credit may be made of

37-39  any interest imposed upon the person or business entity making

37-40  the overpayment with respect to the amount being refunded or

37-41  credited.

37-42     2.  The interest must be paid:

37-43     (a) In the case of a refund, to the last day of the calendar

37-44  month following the date upon which the person making the

37-45  overpayment, if he has not already filed a claim, is notified by

 

38-1  the Department that a claim may be filed or the date upon which

38-2  the claim is certified to the State Board of Examiners, whichever is

38-3  earlier.

38-4      (b) In the case of a credit, to the same date as that to which

38-5  interest is computed on the franchise fee or the amount against

38-6  which the credit is applied.

38-7      3.  If the Department determines that any overpayment has

38-8  been made intentionally or by reason of carelessness, it shall not

38-9  allow any interest on the overpayment.

38-10     Sec. 58.66.  1.  No injunction, writ of mandate or other legal

38-11  or equitable process may issue in any suit, action or proceeding in

38-12  any court against this state or against any officer of the State to

38-13  prevent or enjoin the collection under this chapter of the franchise

38-14  fee imposed by this chapter or any amount of the franchise fee,

38-15  penalty or interest required to be collected.

38-16     2.  No suit or proceeding may be maintained in any court for

38-17  the recovery of any amount alleged to have been erroneously or

38-18  illegally determined or collected unless a claim for refund or credit

38-19  has been filed.

38-20     Sec. 58.68.  1.  Within 90 days after a final decision upon a

38-21  claim filed pursuant to this chapter is rendered by the

38-22  Commission, the claimant may bring an action against the

38-23  Department on the grounds set forth in the claim in a court of

38-24  competent jurisdiction in Carson City, the county of this state

38-25  where the claimant resides or maintains his principal place of

38-26  business or a county in which any relevant proceedings were

38-27  conducted by the Department, for the recovery of the whole or any

38-28  part of the amount with respect to which the claim has been

38-29  disallowed.

38-30     2.  Failure to bring an action within the time specified

38-31  constitutes a waiver of any demand against the State on account of

38-32  alleged overpayments.

38-33     Sec. 58.70.  1.  If the Department fails to mail notice of

38-34  action on a claim within 6 months after the claim is filed, the

38-35  claimant may consider the claim disallowed and file an appeal

38-36  with the Commission within 30 days after the last day of the

38-37  6-month period. If the claimant is aggrieved by the decision of the

38-38  Commission rendered on appeal, the claimant may, within 90 days

38-39  after the decision is rendered, bring an action against the

38-40  Department on the grounds set forth in the claim for the recovery

38-41  of the whole or any part of the amount claimed as an

38-42  overpayment.

38-43     2.  If judgment is rendered for the plaintiff, the amount of the

38-44  judgment must first be credited towards any franchise fees due

38-45  from the plaintiff.

39-1      3.  The balance of the judgment must be refunded to the

39-2  plaintiff.

39-3      Sec. 58.72.  In any judgment, interest must be allowed at the

39-4  rate of 6 percent per annum upon the amount found to have been

39-5  illegally collected from the date of payment of the amount to the

39-6  date of allowance of credit on account of the judgment, or to a

39-7  date preceding the date of the refund warrant by not more than 30

39-8  days. The date must be determined by the Department.

39-9      Sec. 58.74.  A judgment may not be rendered in favor of the

39-10  plaintiff in any action brought against the Department to recover

39-11  any amount paid when the action is brought by or in the name of

39-12  an assignee of the business entity paying the amount or by any

39-13  person other than the person or business entity which paid the

39-14  amount.

39-15     Sec. 58.76.  1.  The Department may recover a refund or any

39-16  part thereof which is erroneously made and any credit or part

39-17  thereof which is erroneously allowed in an action brought in a

39-18  court of competent jurisdiction in Carson City or Clark County in

39-19  the name of the State of Nevada.

39-20     2.  The action must be tried in Carson City or Clark County

39-21  unless the court, with the consent of the Attorney General, orders

39-22  a change of place of trial.

39-23     3.  The Attorney General shall prosecute the action, and the

39-24  provisions of NRS, the Nevada Rules of Civil Procedure and the

39-25  Nevada Rules of Appellate Procedure relating to service of

39-26  summons, pleadings, proofs, trials and appeals are applicable to

39-27  the proceedings.

39-28     Sec. 58.78.  1.  If any amount in excess of $25 has been

39-29  illegally determined, either by the Department or by the person

39-30  filing the return, the Department shall certify this fact to the State

39-31  Board of Examiners, and the latter shall authorize the

39-32  cancellation of the amount upon the records of the Department.

39-33     2.  If an amount not exceeding $25 has been illegally

39-34  determined, either by the Department or by the person or business

39-35  entity filing the return, the Department, without certifying this fact

39-36  to the State Board of Examiners, shall authorize the cancellation

39-37  of the amount upon the records of the Department.

39-38     Sec. 58.80.  1.  A person shall not:

39-39     (a) Make, cause to be made or permit to be made any false or

39-40  fraudulent return or declaration or false statement in any return

39-41  or declaration with intent to defraud the State or to evade payment

39-42  of the franchise fee or any part of the franchise fee imposed by

39-43  this chapter.

39-44     (b) Make, cause to be made or permit to be made any false

39-45  entry in books, records or accounts with intent to defraud the State

40-1  or to evade the payment of the franchise fee or any part of the

40-2  franchise fee imposed by this chapter.

40-3      (c) Keep, cause to be kept or permit to be kept more than one

40-4  set of books, records or accounts with intent to defraud the State

40-5  or to evade the payment of the franchise fee or any part of the

40-6  franchise fee imposed by this chapter.

40-7      2.  Any person who violates the provisions of subsection 1 is

40-8  guilty of a gross misdemeanor.

40-9      Sec. 59.  Chapter 360 of NRS is hereby amended by adding

40-10  thereto the provisions set forth as sections 60 to 66, inclusive, of this

40-11  act.

40-12     Sec. 60.  The Nevada Tax Commission shall adopt

40-13  regulations providing for:

40-14     1.  The electronic submission of returns to the Department;

40-15  and

40-16     2.  The payment of taxes, fees, interest and penalties to the

40-17  Department through the use of credit cards, debit cards and

40-18  electronic transfers of money.

40-19     Sec. 61.  As used in sections 61 to 66, inclusive, of this act,

40-20  unless the context otherwise requires, the words and terms defined

40-21  in sections 62, 63 and 64 of this act have the meanings ascribed to

40-22  them in those sections.

40-23     Sec. 62.  1.  “Business” includes:

40-24     (a) A corporation, partnership, proprietorship, limited-liability

40-25  company, business association, joint venture, limited-liability

40-26  partnership, business trust and their equivalents organized under

40-27  the laws of this state or another jurisdiction and any other person

40-28  that conducts an activity for profit; and

40-29     (b) The activities of a natural person which are deemed to be a

40-30  business pursuant to section 65 of this act.

40-31     2.  The term does not include:

40-32     (a) A governmental entity.

40-33     (b) A nonprofit religious, charitable, fraternal or other

40-34  organization that qualifies as a tax-exempt organization pursuant

40-35  to 26 U.S.C. § 501(c).

40-36     (c) A person who operates a business from his home and earns

40-37  from that business not more than 66 2/3 percent of the average

40-38  annual wage, as computed for the preceding calendar year

40-39  pursuant to chapter 612 of NRS and rounded to the nearest

40-40  hundred dollars.

40-41     (d) A business whose primary purpose is to create or produce

40-42  motion pictures. As used in this paragraph, “motion pictures” has

40-43  the meaning ascribed to it in NRS 231.020.

40-44     Sec. 63.  1.  “Employee” includes:

41-1      (a) A natural person who receives wages or other

41-2  remuneration from a business for personal services, including

41-3  commissions and bonuses and remuneration payable in a medium

41-4  other than cash; and

41-5      (b) A natural person engaged in the operation of a business.

41-6      2.  The term includes:

41-7      (a) A partner or other co-owner of a business; and

41-8      (b) Except as otherwise provided in subsection 3, a natural

41-9  person reported as an employee to the:

41-10         (1) Employment Security Division of the Department of

41-11  Employment, Training and Rehabilitation;

41-12         (2) Administrator of the Division of Industrial Relations of

41-13  the Department of Business and Industry; or

41-14         (3) Internal Revenue Service on an Employer’s Quarterly

41-15  Federal Tax Return (Form 941), Employer’s Monthly Federal

41-16  Tax Return (Form 941-M), Employer’s Annual Tax Return for

41-17  Agricultural Employees (Form 943) or any equivalent or

41-18  successor form.

41-19     3.  The term does not include:

41-20     (a) A business or an independent contractor that performs

41-21  services on behalf of another business.

41-22     (b) A natural person who is retired or otherwise receiving

41-23  remuneration solely because of past service to the business.

41-24     (c) A newspaper carrier or the immediate supervisor of a

41-25  newspaper carrier who is an independent contractor of the

41-26  newspaper.

41-27     (d) A natural person who performs all of his duties for the

41-28  business outside of this state.

41-29     4.  An independent contractor is not an employee of a

41-30  business with which he contracts.

41-31     Sec. 64.  “Wages” means any remuneration paid for personal

41-32  services, including commissions, and bonuses and remuneration

41-33  payable in any medium other than cash.

41-34     Sec. 64.5. The Department shall deposit all money it receives

41-35  pursuant to sections 61 to 66, inclusive, of this act in the State

41-36  Treasury for credit to the State General Fund.

41-37     Sec. 65.  The activity or activities conducted by a natural

41-38  person shall be deemed to be a business that is subject to the

41-39  provisions of sections 61 to 66, inclusive, of this act if the person is

41-40  required to file with the Internal Revenue Service a Schedule C

41-41  (Form 1040), Profit or Loss From Business Form, or its

41-42  equivalent or successor form, a Schedule E (Form 1040),

41-43  Supplemental Income and Loss Form, or its equivalent or

41-44  successor form, or a Schedule F (Form 1040), Profit or Loss

42-1  From Farming Form, or its equivalent or successor form, for the

42-2  business.

42-3      Sec. 66.  1.  Except as otherwise provided in subsection 8, a

42-4  person shall not conduct a business in this state unless he has a

42-5  business license issued by the Department.

42-6      2.  An application for a business license must:

42-7      (a) Be made upon a form prescribed by the Department;

42-8      (b) Set forth the name under which the applicant transacts or

42-9  intends to transact business and the location of his place or places

42-10  of business;

42-11     (c) Declare the estimated number of employees for the

42-12  previous calendar quarter;

42-13     (d) Be accompanied by a fee of $75; and

42-14     (e) Include any other information that the Department deems

42-15  necessary.

42-16     3.  The application must be signed by:

42-17     (a) The owner, if the business is owned by a natural person;

42-18     (b) A member or partner, if the business is owned by an

42-19  association or partnership; or

42-20     (c) An officer or some other person specifically authorized to

42-21  sign the application, if the business is owned by a corporation.

42-22     4.  If the application is signed pursuant to paragraph (c) of

42-23  subsection 3, written evidence of the signer’s authority must be

42-24  attached to the application.

42-25     5.  A person who has been issued a business license by the

42-26  Department shall submit a fee of $75 to the Department on or

42-27  before the last day of the month in which the anniversary date of

42-28  issuance of the business license occurs in each year, unless the

42-29  person submits a written statement to the Department, at least 10

42-30  days before the anniversary date, indicating that the person will

42-31  not be conducting business in this state after the anniversary date.

42-32     6.  The business license required to be obtained pursuant to

42-33  this section is in addition to any license to conduct business that

42-34  must be obtained from the local jurisdiction in which the business

42-35  is being conducted.

42-36     7.  For the purposes of sections 61 to 66, inclusive, of this act,

42-37  a person shall be deemed to conduct a business in this state if a

42-38  business for which the person is responsible:

42-39     (a) Is organized pursuant to title 7 of NRS, other than a

42-40  business organized pursuant to chapter 82 or 84 of NRS;

42-41     (b) Has an office or other base of operations in this state; or

42-42     (c) Pays wages or other remuneration to a natural person who

42-43  performs in this state any of the duties for which he is paid.

42-44     8.  A person who takes part in a trade show or convention

42-45  held in this state for a purpose related to the conduct of a business

43-1  is not required to obtain a business license specifically for that

43-2  event.

43-3      Sec. 67.  NRS 360.095 is hereby amended to read as follows:

43-4      360.095  In the adoption of regulations, policies of

43-5  enforcement, and policies for auditing of taxpayers, with respect to

43-6  all taxes and fees for whose administration the Department is

43-7  responsible, the Nevada Tax Commission shall apply the following

43-8  principles:

43-9      1.  Forms, instructions and regulations governing the

43-10  computation of the amount of tax due must be brief and easily

43-11  understood.

43-12     2.  In cases where another authority, such as the United States

43-13  or a local government, also imposes a tax upon the same property or

43-14  revenue, the mechanism for collecting the tax imposed by the State

43-15  must be as nearly compatible with the collection of the other taxes

43-16  as is feasible.

43-17     3.  Unless a change is made necessary by statute or to preserve

43-18  compatibility with a tax imposed by another authority, the forms,

43-19  instructions and regulations must remain the same from year to year,

43-20  to make the taxpayer’s liability as predictable as is feasible.

43-21     4.  Exemptions or waivers, where permitted by statute, must be

43-22  granted:

43-23     (a) Equitably among eligible taxpayers; and

43-24     (b) As sparingly as is consistent with the legislative intent, to

43-25  retain the broadest feasible base for the tax affected.

43-26     5.  Audits and other procedures for enforcement must be

43-27  applied as uniformly as is feasible, not only as among persons

43-28  subject to a particular tax but also as among different taxes[.] , but

43-29  must consider a weighting of indicators of noncompliance.

43-30     6.  Collection of taxes due must be pursued in an equitable

43-31  manner, so that every taxpayer pays the full amount imposed by

43-32  law.

43-33     Sec. 68.  NRS 360.225 is hereby amended to read as follows:

43-34      360.225  1.  During the course of an investigation undertaken

43-35  pursuant to NRS 360.130 of a person claiming:

43-36     (a) A partial abatement of property taxes pursuant to NRS

43-37  361.0687;

43-38     (b) [An exemption from taxes upon the privilege of doing

43-39  business in this state pursuant to NRS 364A.170;

43-40     (c)] A deferral of the payment of taxes on the sale of capital

43-41  goods pursuant to NRS 372.397 or 374.402; or

43-42     [(d)] (c) An abatement of taxes on the gross receipts from the

43-43  sale, storage, use or other consumption of eligible machinery or

43-44  equipment pursuant to NRS 374.357,

44-1  the Department shall investigate whether the person meets the

44-2  eligibility requirements for the abatement, partial abatement[,

44-3  exemption] or deferral that the person is claiming.

44-4      2.  If the Department finds that the person does not meet the

44-5  eligibility requirements for the abatement[, exemption] or deferral

44-6  which the person is claiming, the Department shall report its

44-7  findings to the Commission on Economic Development and take

44-8  any other necessary actions.

44-9      Sec. 69.  NRS 360.2935 is hereby amended to read as follows:

44-10      360.2935  Except as otherwise provided in [NRS 361.485,] this

44-11  title, a taxpayer is entitled to receive on any overpayment of taxes,

44-12  after the offset required by NRS 360.320 has been made, a refund

44-13  together with interest at a rate determined pursuant to NRS 17.130.

44-14  No interest is allowed on a refund of any penalties or interest paid

44-15  by a taxpayer.

44-16     Sec. 70.  NRS 360.300 is hereby amended to read as follows:

44-17      360.300  1.  If a person fails to file a return or the Department

44-18  is not satisfied with the return or returns of any tax, franchise fee,

44-19  contribution or premium or amount of tax, franchise fee,

44-20  contribution or premium required to be paid to the State by any

44-21  person, in accordance with the applicable provisions of this chapter,

44-22  chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of

44-23  NRS, NRS 482.313, or chapter 585 or 680B of NRS , or sections 2

44-24  to 24, inclusive, 24.12 to 24.74, inclusive, or 58.12 to 58.80,

44-25  inclusive, of this act, as administered or audited by the Department,

44-26  it may compute and determine the amount required to be paid upon

44-27  the basis of:

44-28     (a) The facts contained in the return;

44-29     (b) Any information within its possession or that may come into

44-30  its possession; or

44-31     (c) Reasonable estimates of the amount.

44-32     2.  One or more deficiency determinations may be made with

44-33  respect to the amount due for one or for more than one period.

44-34     3.  In making its determination of the amount required to be

44-35  paid, the Department shall impose interest on the amount of tax

44-36  determined to be due, calculated at the rate and in the manner set

44-37  forth in NRS 360.417, unless a different rate of interest is

44-38  specifically provided by statute.

44-39     4.  The Department shall impose a penalty of 10 percent in

44-40  addition to the amount of a determination that is made in the case of

44-41  the failure of a person to file a return with the Department.

44-42     5.  When a business is discontinued, a determination may be

44-43  made at any time thereafter within the time prescribed in NRS

44-44  360.355 as to liability arising out of that business, irrespective of

45-1  whether the determination is issued before the due date of the

45-2  liability.

45-3      Sec. 70.5.  NRS 360.300 is hereby amended to read as follows:

45-4      360.300  1.  If a person fails to file a return or the Department

45-5  is not satisfied with the return or returns of any tax, franchise fee,

45-6  contribution or premium or amount of tax, franchise fee,

45-7  contribution or premium required to be paid to the State by any

45-8  person, in accordance with the applicable provisions of this chapter,

45-9  chapter 362, [364A,] 369, 370, 372, 372A, 374, 377, 377A or 444A

45-10  of NRS, NRS 482.313, or chapter 585 or 680B of NRS, or sections

45-11  2 to 24, inclusive, 24.12 to 24.74, inclusive, or 58.12 to 58.80,

45-12  inclusive, of this act, as administered or audited by the Department,

45-13  it may compute and determine the amount required to be paid upon

45-14  the basis of:

45-15     (a) The facts contained in the return;

45-16     (b) Any information within its possession or that may come into

45-17  its possession; or

45-18     (c) Reasonable estimates of the amount.

45-19     2.  One or more deficiency determinations may be made with

45-20  respect to the amount due for one or for more than one period.

45-21     3.  In making its determination of the amount required to be

45-22  paid, the Department shall impose interest on the amount of tax

45-23  determined to be due, calculated at the rate and in the manner set

45-24  forth in NRS 360.417, unless a different rate of interest is

45-25  specifically provided by statute.

45-26     4.  The Department shall impose a penalty of 10 percent in

45-27  addition to the amount of a determination that is made in the case of

45-28  the failure of a person to file a return with the Department.

45-29     5.  When a business is discontinued, a determination may be

45-30  made at any time thereafter within the time prescribed in NRS

45-31  360.355 as to liability arising out of that business, irrespective of

45-32  whether the determination is issued before the due date of the

45-33  liability.

45-34     Sec. 71.  NRS 360.417 is hereby amended to read as follows:

45-35      360.417  Except as otherwise provided in NRS 360.232 and

45-36  360.320, and unless a different penalty or rate of interest is

45-37  specifically provided by statute, any person who fails to pay any tax

45-38  or franchise fee provided for in chapter 362, 364A, 369, 370, 372,

45-39  374, 377, 377A, 444A or 585 of NRS, or sections 2 to 24, inclusive,

45-40  24.12 to 24.74, inclusive, or 58.12 to 58.80, inclusive, of this act,

45-41  or the fee provided for in NRS 482.313, to the State or a county

45-42  within the time required, shall pay a penalty of not more than 10

45-43  percent of the amount of the tax or fee which is owed, as determined

45-44  by the Department, in addition to the tax or fee, plus interest at the

45-45  rate of 1 percent per month, or fraction of a month, from the last day

46-1  of the month following the period for which the amount or any

46-2  portion of the amount should have been reported until the date of

46-3  payment. The amount of any penalty imposed must be based on a

46-4  graduated schedule adopted by the Nevada Tax Commission which

46-5  takes into consideration the length of time the tax or fee remained

46-6  unpaid.

46-7      Sec. 71.5.  NRS 360.417 is hereby amended to read as follows:

46-8      360.417  Except as otherwise provided in NRS 360.232 and

46-9  360.320, and unless a different penalty or rate of interest is

46-10  specifically provided by statute, any person who fails to pay any tax

46-11  or franchise fee provided for in chapter 362, [364A,] 369, 370, 372,

46-12  374, 377, 377A, 444A or 585 of NRS, or sections 2 to 24, inclusive,

46-13  24.12 to 24.74, inclusive, or 58.12 to 58.80, inclusive, of this act,

46-14  or the fee provided for in NRS 482.313, to the State or a county

46-15  within the time required, shall pay a penalty of not more than 10

46-16  percent of the amount of the tax or fee which is owed, as determined

46-17  by the Department, in addition to the tax or fee, plus interest at the

46-18  rate of 1 percent per month, or fraction of a month, from the last day

46-19  of the month following the period for which the amount or any

46-20  portion of the amount should have been reported until the date of

46-21  payment. The amount of any penalty imposed must be based on a

46-22  graduated schedule adopted by the Nevada Tax Commission which

46-23  takes into consideration the length of time the tax or fee remained

46-24  unpaid.

46-25     Sec. 72.  NRS 360.419 is hereby amended to read as follows:

46-26      360.419  1.  If the Executive Director or a designated hearing

46-27  officer finds that the failure of a person to make a timely return or

46-28  payment of a tax or franchise fee imposed pursuant to NRS 361.320

46-29  or [chapter 361A, 376A, 377 or 377A of NRS, or by] chapter 361A,

46-30  362, 364A, 369, 370, 372, 372A, 374, 375A , [or] 375B , 376A, 377

46-31  or 377A of NRS, or sections 2 to 24, inclusive, 24.12 to 24.74,

46-32  inclusive, or 58.12 to 58.80, inclusive, of this act, is the result of

46-33  circumstances beyond his control and occurred despite the exercise

46-34  of ordinary care and without intent, the Department may relieve him

46-35  of all or part of any interest or penalty , or both.

46-36     2.  A person seeking this relief must file with the Department a

46-37  statement under oath setting forth the facts upon which he bases his

46-38  claim.

46-39     3.  The Department shall disclose, upon the request of any

46-40  person:

46-41     (a) The name of the person to whom relief was granted; and

46-42     (b) The amount of the relief.

46-43     4.  The Executive Director or a designated hearing officer shall

46-44  act upon the request of a taxpayer seeking relief pursuant to NRS

46-45  361.4835 which is deferred by a county treasurer or county assessor.

47-1      Sec. 72.5.  NRS 360.419 is hereby amended to read as follows:

47-2      360.419  1.  If the Executive Director or a designated hearing

47-3  officer finds that the failure of a person to make a timely return or

47-4  payment of a tax or franchise fee imposed pursuant to NRS 361.320

47-5  or chapter 361A, 362, [364A,] 369, 370, 372, 372A, 374, 375A,

47-6  375B, 376A, 377 or 377A of NRS, or sections 2 to 24, inclusive,

47-7  24.12 to 24.74, inclusive, or 58.12 to 58.80, inclusive, of this act is

47-8  the result of circumstances beyond his control and occurred despite

47-9  the exercise of ordinary care and without intent, the Department

47-10  may relieve him of all or part of any interest or penalty , or both.

47-11     2.  A person seeking this relief must file with the Department a

47-12  statement under oath setting forth the facts upon which he bases his

47-13  claim.

47-14     3.  The Department shall disclose, upon the request of any

47-15  person:

47-16     (a) The name of the person to whom relief was granted; and

47-17     (b) The amount of the relief.

47-18     4.  The Executive Director or a designated hearing officer shall

47-19  act upon the request of a taxpayer seeking relief pursuant to NRS

47-20  361.4835 which is deferred by a county treasurer or county assessor.

47-21     Sec. 73.  NRS 360.510 is hereby amended to read as follows:

47-22      360.510  1.  If any person is delinquent in the payment of any

47-23  tax or fee administered by the Department or if a determination has

47-24  been made against him which remains unpaid, the Department may:

47-25     (a) Not later than 3 years after the payment became delinquent

47-26  or the determination became final; or

47-27     (b) Not later than 6 years after the last recording of an abstract

47-28  of judgment or of a certificate constituting a lien for tax owed,

47-29  give a notice of the delinquency and a demand to transmit

47-30  personally or by registered or certified mail to any person,

47-31  including, without limitation, any officer or department of this state

47-32  or any political subdivision or agency of this state, who has in his

47-33  possession or under his control any credits or other personal

47-34  property belonging to the delinquent, or owing any debts to the

47-35  delinquent or person against whom a determination has been made

47-36  which remains unpaid, or owing any debts to the delinquent or that

47-37  person. In the case of any state officer, department or agency, the

47-38  notice must be given to the officer, department or agency before

47-39  the Department presents the claim of the delinquent taxpayer to the

47-40  State Controller.

47-41     2.  A state officer, department or agency which receives such a

47-42  notice may satisfy any debt owed to it by that person before it

47-43  honors the notice of the Department.

47-44     3.  After receiving the demand to transmit, the person notified

47-45  by the demand may not transfer or otherwise dispose of the credits,

48-1  other personal property, or debts in his possession or under his

48-2  control at the time he received the notice until the Department

48-3  consents to a transfer or other disposition.

48-4      4.  Every person notified by a demand to transmit shall, within

48-5  10 days after receipt of the demand to transmit, inform the

48-6  Department of[,] and transmit to the Department all such credits,

48-7  other personal property[,] or debts in his possession, under his

48-8  control or owing by him within the time and in the manner

48-9  requested by the Department. Except as otherwise provided in

48-10  subsection 5, no further notice is required to be served to that

48-11  person.

48-12     5.  If the property of the delinquent taxpayer consists of a series

48-13  of payments owed to him, the person who owes or controls the

48-14  payments shall transmit the payments to the Department until

48-15  otherwise notified by the Department. If the debt of the delinquent

48-16  taxpayer is not paid within 1 year after the Department issued the

48-17  original demand to transmit, the Department shall issue another

48-18  demand to transmit to the person responsible for making the

48-19  payments informing him to continue to transmit payments to

48-20  the Department or that his duty to transmit the payments to the

48-21  Department has ceased.

48-22     6.  If the notice of the delinquency seeks to prevent the transfer

48-23  or other disposition of a deposit in a bank or credit union or other

48-24  credits or personal property in the possession or under the control of

48-25  a bank, credit union or other depository institution, the notice must

48-26  be delivered or mailed to any branch or office of the bank, credit

48-27  union or other depository institution at which the deposit is carried

48-28  or at which the credits or personal property is held.

48-29     7.  If any person notified by the notice of the delinquency

48-30  makes any transfer or other disposition of the property or debts

48-31  required to be withheld or transmitted, to the extent of the value of

48-32  the property or the amount of the debts thus transferred or paid, he is

48-33  liable to the State for any indebtedness due pursuant to this chapter,

48-34  or chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A

48-35  of NRS, NRS 482.313, or chapter 585 or 680B of NRS , or sections

48-36  2 to 24, inclusive, 24.12 to 24.74, inclusive, or 58.12 to 58.80,

48-37  inclusive, of this act from the person with respect to whose

48-38  obligation the notice was given if solely by reason of the transfer or

48-39  other disposition the State is unable to recover the indebtedness of

48-40  the person with respect to whose obligation the notice was given.

48-41     Sec. 73.5.  NRS 360.510 is hereby amended to read as follows:

48-42      360.510  1.  If any person is delinquent in the payment of any

48-43  tax or fee administered by the Department or if a determination has

48-44  been made against him which remains unpaid, the Department may:

49-1      (a) Not later than 3 years after the payment became delinquent

49-2  or the determination became final; or

49-3      (b) Not later than 6 years after the last recording of an abstract

49-4  of judgment or of a certificate constituting a lien for tax owed,

49-5  give a notice of the delinquency and a demand to transmit

49-6  personally or by registered or certified mail to any person,

49-7  including, without limitation, any officer or department of this state

49-8  or any political subdivision or agency of this state, who has in his

49-9  possession or under his control any credits or other personal

49-10  property belonging to the delinquent, or owing any debts to the

49-11  delinquent or person against whom a determination has been made

49-12  which remains unpaid, or owing any debts to the delinquent or that

49-13  person. In the case of any state officer, department or agency, the

49-14  notice must be given to the officer, department or agency before

49-15  the Department presents the claim of the delinquent taxpayer to the

49-16  State Controller.

49-17     2.  A state officer, department or agency which receives such a

49-18  notice may satisfy any debt owed to it by that person before it

49-19  honors the notice of the Department.

49-20     3.  After receiving the demand to transmit, the person notified

49-21  by the demand may not transfer or otherwise dispose of the credits,

49-22  other personal property, or debts in his possession or under his

49-23  control at the time he received the notice until the Department

49-24  consents to a transfer or other disposition.

49-25     4.  Every person notified by a demand to transmit shall, within

49-26  10 days after receipt of the demand to transmit, inform the

49-27  Department of and transmit to the Department all such credits, other

49-28  personal property or debts in his possession, under his control or

49-29  owing by him within the time and in the manner requested by the

49-30  Department. Except as otherwise provided in subsection 5, no

49-31  further notice is required to be served to that person.

49-32     5.  If the property of the delinquent taxpayer consists of a series

49-33  of payments owed to him, the person who owes or controls the

49-34  payments shall transmit the payments to the Department until

49-35  otherwise notified by the Department. If the debt of the delinquent

49-36  taxpayer is not paid within 1 year after the Department issued the

49-37  original demand to transmit, the Department shall issue another

49-38  demand to transmit to the person responsible for making the

49-39  payments informing him to continue to transmit payments to

49-40  the Department or that his duty to transmit the payments to the

49-41  Department has ceased.

49-42     6.  If the notice of the delinquency seeks to prevent the transfer

49-43  or other disposition of a deposit in a bank or credit union or other

49-44  credits or personal property in the possession or under the control of

49-45  a bank, credit union or other depository institution, the notice must

50-1  be delivered or mailed to any branch or office of the bank, credit

50-2  union or other depository institution at which the deposit is carried

50-3  or at which the credits or personal property is held.

50-4      7.  If any person notified by the notice of the delinquency

50-5  makes any transfer or other disposition of the property or debts

50-6  required to be withheld or transmitted, to the extent of the value of

50-7  the property or the amount of the debts thus transferred or paid, he is

50-8  liable to the State for any indebtedness due pursuant to this chapter,

50-9  or chapter 362, [364A,] 369, 370, 372, 372A, 374, 377, 377A or

50-10  444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS, or

50-11  sections 2 to 24, inclusive, 24.12 to 24.74, inclusive, or 58.12 to

50-12  58.80, inclusive, of this act from the person with respect to whose

50-13  obligation the notice was given if solely by reason of the transfer or

50-14  other disposition the State is unable to recover the indebtedness of

50-15  the person with respect to whose obligation the notice was given.

50-16     Sec. 74.  NRS 360.750 is hereby amended to read as follows:

50-17      360.750  1.  A person who intends to locate or expand a

50-18  business in this state may apply to the Commission on Economic

50-19  Development for a partial abatement of one or more of the taxes

50-20  imposed on the new or expanded business pursuant to chapter 361[,

50-21  364A] or 374 of NRS.

50-22     2.  The Commission on Economic Development shall approve

50-23  an application for a partial abatement if the Commission makes the

50-24  following determinations:

50-25     (a) The business is consistent with:

50-26         (1) The State Plan for Industrial Development and

50-27  Diversification that is developed by the Commission pursuant to

50-28  NRS 231.067; and

50-29         (2) Any guidelines adopted pursuant to the State Plan.

50-30     (b) The applicant has executed an agreement with the

50-31  Commission which states that the business will, after the date on

50-32  which a certificate of eligibility for the abatement is issued pursuant

50-33  to subsection 5, continue in operation in this state for a period

50-34  specified by the Commission, which must be at least 5 years, and

50-35  will continue to meet the eligibility requirements set forth in this

50-36  subsection. The agreement must bind the successors in interest of

50-37  the business for the specified period.

50-38     (c) The business is registered pursuant to the laws of this state or

50-39  the applicant commits to obtain a valid business license and all other

50-40  permits required by the county, city or town in which the business

50-41  operates.

50-42     (d) Except as otherwise provided in NRS 361.0687, if the

50-43  business is a new business in a county whose population is 100,000

50-44  or more or a city whose population is 60,000 or more, the business

50-45  meets at least two of the following requirements:

51-1          (1) The business will have 75 or more full-time employees

51-2  on the payroll of the business by the fourth quarter that it is in

51-3  operation.

51-4          (2) Establishing the business will require the business to

51-5  make a capital investment of at least $1,000,000 in this state.

51-6          (3) The average hourly wage that will be paid by the new

51-7  business to its employees in this state is at least 100 percent of the

51-8  average statewide hourly wage as established by the Employment

51-9  Security Division of the Department of Employment, Training and

51-10  Rehabilitation on July 1 of each fiscal year and:

51-11             (I) The business will provide a health insurance plan for

51-12  all employees that includes an option for health insurance coverage

51-13  for dependents of the employees; and

51-14             (II) The cost to the business for the benefits the business

51-15  provides to its employees in this state will meet the minimum

51-16  requirements for benefits established by the Commission by

51-17  regulation pursuant to subsection 9.

51-18     (e) Except as otherwise provided in NRS 361.0687, if the

51-19  business is a new business in a county whose population is less than

51-20  100,000 or a city whose population is less than 60,000, the business

51-21  meets at least two of the following requirements:

51-22         (1) The business will have 25 or more full-time employees

51-23  on the payroll of the business by the fourth quarter that it is in

51-24  operation.

51-25         (2) Establishing the business will require the business to

51-26  make a capital investment of at least $250,000 in this state.

51-27         (3) The average hourly wage that will be paid by the new

51-28  business to its employees in this state is at least 100 percent of the

51-29  average statewide hourly wage as established by the Employment

51-30  Security Division of the Department of Employment, Training and

51-31  Rehabilitation on July 1 of each fiscal year and:

51-32             (I) The business will provide a health insurance plan for

51-33  all employees that includes an option for health insurance coverage

51-34  for dependents of the employees; and

51-35             (II) The cost to the business for the benefits the business

51-36  provides to its employees in this state will meet the minimum

51-37  requirements for benefits established by the Commission by

51-38  regulation pursuant to subsection 9.

51-39     (f) If the business is an existing business, the business meets at

51-40  least two of the following requirements:

51-41         (1) The business will increase the number of employees on

51-42  its payroll by 10 percent more than it employed in the immediately

51-43  preceding fiscal year or by six employees, whichever is greater.

51-44         (2) The business will expand by making a capital investment

51-45  in this state in an amount equal to at least 20 percent of the value of

52-1  the tangible property possessed by the business in the immediately

52-2  preceding fiscal year. The determination of the value of the tangible

52-3  property possessed by the business in the immediately preceding

52-4  fiscal year must be made by the:

52-5             (I) County assessor of the county in which the business

52-6  will expand, if the business is locally assessed; or

52-7              (II) Department, if the business is centrally assessed.

52-8          (3) The average hourly wage that will be paid by the existing

52-9  business to its new employees in this state is at least 100 percent of

52-10  the average statewide hourly wage as established by the

52-11  Employment Security Division of the Department of Employment,

52-12  Training and Rehabilitation on July 1 of each fiscal year and:

52-13             (I) The business will provide a health insurance plan for

52-14  all new employees that includes an option for health insurance

52-15  coverage for dependents of the employees; and

52-16             (II) The cost to the business for the benefits the business

52-17  provides to its new employees in this state will meet the minimum

52-18  requirements for benefits established by the Commission by

52-19  regulation pursuant to subsection 9.

52-20     3.  Notwithstanding the provisions of subsection 2, the

52-21  Commission on Economic Development may:

52-22     (a) Approve an application for a partial abatement by a business

52-23  that does not meet the requirements set forth in paragraph (d), (e) or

52-24  (f) of subsection 2;

52-25     (b) Make the requirements set forth in paragraph (d), (e) or (f) of

52-26  subsection 2 more stringent; or

52-27     (c) Add additional requirements that a business must meet to

52-28  qualify for a partial abatement,

52-29  if the Commission determines that such action is necessary.

52-30     4.  If a person submits an application to the Commission on

52-31  Economic Development pursuant to subsection 1, the Commission

52-32  shall provide notice to the governing body of the county and the city

52-33  or town, if any, in which the person intends to locate or expand a

52-34  business. The notice required pursuant to this subsection must set

52-35  forth the date, time and location of the hearing at which the

52-36  Commission will consider the application.

52-37     5.  If the Commission on Economic Development approves an

52-38  application for a partial abatement, the Commission shall

52-39  immediately forward a certificate of eligibility for the abatement to:

52-40     (a) The Department;

52-41     (b) The Nevada Tax Commission; and

52-42     (c) If the partial abatement is from the property tax imposed

52-43  pursuant to chapter 361 of NRS, the county treasurer.

52-44     6.  An applicant for a partial abatement pursuant to this section

52-45  or an existing business whose partial abatement is in effect shall,

53-1  upon the request of the Executive Director of the Commission on

53-2  Economic Development, furnish the Executive Director with copies

53-3  of all records necessary to verify that the applicant meets the

53-4  requirements of subsection 2.

53-5      7.  If a business whose partial abatement has been approved

53-6  pursuant to this section and is in effect ceases:

53-7      (a) To meet the requirements set forth in subsection 2; or

53-8      (b) Operation before the time specified in the agreement

53-9  described in paragraph (b) of subsection 2,

53-10  the business shall repay to the Department or, if the partial

53-11  abatement was from the property tax imposed pursuant to chapter

53-12  361 of NRS, to the county treasurer, the amount of the exemption

53-13  that was allowed pursuant to this section before the failure of the

53-14  business to comply unless the Nevada Tax Commission determines

53-15  that the business has substantially complied with the requirements of

53-16  this section. Except as otherwise provided in NRS 360.232 and

53-17  360.320, the business shall, in addition to the amount of the

53-18  exemption required to be paid pursuant to this subsection, pay

53-19  interest on the amount due at the rate most recently established

53-20  pursuant to NRS 99.040 for each month, or portion thereof, from the

53-21  last day of the month following the period for which the payment

53-22  would have been made had the partial abatement not been approved

53-23  until the date of payment of the tax.

53-24     8.  A county treasurer:

53-25     (a) Shall deposit any money that he receives pursuant to

53-26  subsection 7 in one or more of the funds established by a local

53-27  government of the county pursuant to NRS 354.6113 or 354.6115;

53-28  and

53-29     (b) May use the money deposited pursuant to paragraph (a) only

53-30  for the purposes authorized by NRS 354.6113 and 354.6115.

53-31     9.  The Commission on Economic Development:

53-32     (a) Shall adopt regulations relating to:

53-33         (1) The minimum level of benefits that a business must

53-34  provide to its employees if the business is going to use benefits paid

53-35  to employees as a basis to qualify for a partial abatement; and

53-36         (2) The notice that must be provided pursuant to

53-37  subsection 4.

53-38     (b) May adopt such other regulations as the Commission on

53-39  Economic Development determines to be necessary to carry out the

53-40  provisions of this section.

53-41     10.  The Nevada Tax Commission:

53-42     (a) Shall adopt regulations regarding:

53-43         (1) The capital investment that a new business must make to

53-44  meet the requirement set forth in paragraph (d) or (e) of subsection

53-45  2; and

54-1          (2) Any security that a business is required to post to qualify

54-2  for a partial abatement pursuant to this section.

54-3      (b) May adopt such other regulations as the Nevada Tax

54-4  Commission determines to be necessary to carry out the provisions

54-5  of this section.

54-6      11.  An applicant for an abatement who is aggrieved by a final

54-7  decision of the Commission on Economic Development may

54-8  petition for judicial review in the manner provided in chapter 233B

54-9  of NRS.

54-10     Sec. 75.  NRS 360A.020 is hereby amended to read as follows:

54-11      360A.020  The Department shall adopt [such] :

54-12     1.  Such regulations as are necessary to carry out the provisions

54-13  of this chapter.

54-14     2.  Regulations providing for:

54-15     (a) The electronic submission of returns to the Department;

54-16  and

54-17     (b) The payment to the Department of any amount required to

54-18  be paid pursuant to this chapter or chapter 365, 366 or 373 of

54-19  NRS, or NRS 590.120 or 590.840 through the use of credit cards,

54-20  debit cards and electronic transfers of money.

54-21     Sec. 75.3. NRS 364A.020 is hereby amended to read as

54-22  follows:

54-23      364A.020  1.  “Business” includes:

54-24     (a) A corporation, partnership, proprietorship, limited-liability

54-25  company, business association , joint venture, limited-liability

54-26  partnership, business trust and their equivalents organized under

54-27  the laws of this state or another jurisdiction and any other [similar]

54-28  organization that conducts an activity for profit;

54-29     (b) The activities of a natural person which are deemed to be a

54-30  business pursuant to NRS 364A.120; and

54-31     (c) A trade show or convention held in this state in which a

54-32  business described in paragraph (a) or (b) takes part, or which a

54-33  person who conducts such a business attends, for a purpose related

54-34  to the conduct of the business.

54-35     2.  [The term includes an independent contractor.

54-36     3. ] The term does not include:

54-37     (a) A nonprofit religious, charitable, fraternal or other

54-38  organization that qualifies as a tax-exempt organization pursuant to

54-39  26 U.S.C. § 501(c);

54-40     (b) A governmental entity; [or]

54-41     (c) A person who operates a business from his home and earns

54-42  from that business not more than 66 2/3 percent of the average

54-43  annual wage, as computed for the preceding calendar year

54-44  pursuant to chapter 612 of NRS and rounded to the nearest

54-45  hundred dollars; or

55-1      (d) A business that creates or produces motion pictures. As used

55-2  in this paragraph, “motion pictures” has the meaning ascribed to it

55-3  in NRS 231.020.

55-4      Sec. 75.7. NRS 364A.120 is hereby amended to read as

55-5  follows:

55-6      364A.120  The activity or activities conducted by a natural

55-7  person shall be deemed to be a business that is subject to the

55-8  provisions of this chapter if the person files with the Internal

55-9  Revenue Service a Schedule C (Form 1040), Profit or Loss from

55-10  Business Form, or its equivalent or successor form, a Schedule E

55-11  (Form 1040), Supplemental Income and Loss Form, or its

55-12  equivalent or successor form, or a Schedule F (Form 1040), Farm

55-13  Income and Expenses Form, or its equivalent or successor form, for

55-14  the activity or activities.

55-15     Sec. 76. NRS 364A.130 is hereby amended to read as follows:

55-16      364A.130  1.  Except as otherwise provided in subsection [6,]

55-17  8, a person shall not conduct a business in this state unless he has a

55-18  business license issued by the Department.

55-19     2.  [The] An application for a business license must:

55-20     (a) Be made upon a form prescribed by the Department;

55-21     (b) Set forth the name under which the applicant transacts or

55-22  intends to transact business and the location of his place or places of

55-23  business;

55-24     (c) Declare the estimated number of employees for the previous

55-25  calendar quarter;

55-26     (d) Be accompanied by a fee of [$25;] $75; and

55-27     (e) Include any other information that the Department deems

55-28  necessary.

55-29     3.  The application must be signed by:

55-30     (a) The owner, if the business is owned by a natural person;

55-31     (b) A member or partner, if the business is owned by an

55-32  association or partnership; or

55-33     (c) An officer or some other person specifically authorized to

55-34  sign the application, if the business is owned by a corporation.

55-35     4.  If the application is signed pursuant to paragraph (c) of

55-36  subsection 3, written evidence of the signer’s authority must be

55-37  attached to the application.

55-38     5.  A person who has been issued a business license by the

55-39  Department shall submit a fee of $75 to the Department on or

55-40  before the last day of the month in which the anniversary date of

55-41  issuance of the business license occurs in each year, unless the

55-42  person submits a written statement to the Department, at least 10

55-43  days before the anniversary date, indicating that the person will

55-44  not be conducting business in this state after the anniversary date.

56-1      6.  The business license required to be obtained pursuant to

56-2  this section is in addition to any license to conduct business that

56-3  must be obtained from the local jurisdiction in which the business

56-4  is being conducted.

56-5      7.  For the purposes of this chapter, a person shall be deemed to

56-6  conduct a business in this state if a business for which the person is

56-7  responsible:

56-8      (a) Is [incorporated] organized pursuant to [chapter 78 or 78A]

56-9  title 7 of NRS[;] , other than a business organized pursuant to

56-10  chapter 82 or 84 of NRS;

56-11     (b) Has an office or other base of operations in this state; or

56-12     (c) Pays wages or other remuneration to a natural person who

56-13  performs in this state any of the duties for which he is paid.

56-14     [6.] 8. A person who takes part in a trade show or convention

56-15  held in this state for a purpose related to the conduct of a business is

56-16  not required to obtain a business license specifically for that event.

56-17     Sec. 77.  NRS 369.174 is hereby amended to read as follows:

56-18      369.174  Each month, the State Controller shall transfer to the

56-19  Tax on Liquor Program Account in the State General Fund, from the

56-20  tax on liquor containing more than 22 percent of alcohol by volume,

56-21  the portion of the tax which exceeds [$1.90] $2.93 per wine gallon.

56-22     Sec. 78.  NRS 369.330 is hereby amended to read as follows:

56-23      369.330  Except as otherwise provided in this chapter, an excise

56-24  tax is hereby levied and must be collected respecting all liquor and

56-25  upon the privilege of importing, possessing, storing or selling liquor,

56-26  according to the following rates and classifications:

56-27     1.  On liquor containing more than 22 percent of alcohol by

56-28  volume, [$2.05] $3.08 per wine gallon or proportionate part thereof.

56-29     2.  On liquor containing more than 14 percent up to and

56-30  including 22 percent of alcohol by volume, [75 cents] $1.12 per

56-31  wine gallon or proportionate part thereof.

56-32     3.  On liquor containing from one-half of 1 percent up to and

56-33  including 14 percent of alcohol by volume, [40] 60 cents per wine

56-34  gallon or proportionate part thereof.

56-35     4.  On all malt beverage liquor brewed or fermented and bottled

56-36  in or outside this state, [9] 14 cents per gallon.

56-37     Sec. 79. NRS 369.370 is hereby amended to read as follows:

56-38      369.370  1.  For the privilege of importing, possessing, storing

56-39  or selling liquors, all licensed importers and manufacturers of liquor

56-40  in this state shall pay the excise tax imposed and established by this

56-41  chapter.

56-42     2.  If, after the tax is paid on any such liquor, satisfactory

56-43  evidence is presented to the Department that the imports have been

56-44  actually exported and sold outside this state in a manner not in

56-45  conflict with the law of the place of sale, the Department shall direct

57-1  that a refund or credit of the tax so paid be made to the taxpayer.

57-2  The taxpayer shall report all such exports and imports, and pay the

57-3  tax on the imports monthly, on forms and subject to regulations

57-4  prescribed by the Department.

57-5      3.  The excise tax imposed by this chapter is due on or before

57-6  the 20th day of the following month. If all such taxes are paid on or

57-7  before the 15th day of the following month, a discount in the

57-8  amount of [3] 0.5 percent of the tax must be allowed to the taxpayer.

57-9  The Department may, for good cause, extend for not more than 15

57-10  days after the date the tax is due the time for paying the tax if a

57-11  request for such an extension of time is received by the Department

57-12  on or before the date the tax was due. If such an extension is

57-13  granted, interest accrues from the original date the tax was due.

57-14     4.  The Department shall allow refunds or credits on any

57-15  shipments lost, stolen or damaged in transit, or damaged or spoiled

57-16  on the premises, may require all claims in connection therewith to

57-17  be sworn to and may make ratable tax adjustments, credits or

57-18  refunds to effectuate the purposes of this chapter.

57-19     Sec. 80.  NRS 370.165 is hereby amended to read as follows:

57-20      370.165  There is hereby levied a tax upon the purchase or

57-21  possession of cigarettes by a consumer in the State of Nevada at the

57-22  rate of [17.5] 40 mills per cigarette. The tax may be represented and

57-23  precollected by the affixing of a revenue stamp or other approved

57-24  evidence of payment to each package, packet or container in which

57-25  cigarettes are sold. The tax must be precollected by the wholesale or

57-26  retail dealer, and must be recovered from the consumer by adding

57-27  the amount of the tax to the selling price. Each person who sells

57-28  cigarettes at retail shall prominently display on his premises a notice

57-29  that the tax is included in the selling price and is payable under the

57-30  provisions of this chapter.

57-31     Sec. 80.5. (Deleted by amendment.)

57-32     Sec. 81. NRS 370.220 is hereby amended to read as follows:

57-33      370.220  In the sale of any cigarette revenue stamps or any

57-34  metered machine settings to a licensed cigarette dealer, the

57-35  Department and its agents shall allow the purchaser a discount of [3]

57-36  0.5 percent against the amount of excise tax otherwise due for the

57-37  services rendered in affixing cigarette revenue stamps or metered

57-38  machine impressions to the cigarette packages.

57-39     Sec. 82.  NRS 370.260 is hereby amended to read as follows:

57-40      370.260  1.  All taxes and license fees imposed by the

57-41  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

57-42  granted as provided by law, must be paid to the Department in the

57-43  form of remittances payable to the Department.

57-44     2.  The Department shall:

58-1      (a) As compensation to the State for the costs of collecting the

58-2  taxes and license fees, transmit each month the sum the Legislature

58-3  specifies from the remittances made to it pursuant to subsection 1

58-4  during the preceding month to the State Treasurer for deposit to the

58-5  credit of the Department. The deposited money must be expended

58-6  by the Department in accordance with its work program.

58-7      (b) From the remittances made to it pursuant to subsection 1

58-8  during the preceding month, less the amount transmitted pursuant to

58-9  paragraph (a), transmit each month the portion of the tax which is

58-10  equivalent to [12.5] 35 mills per cigarette to the State Treasurer for

58-11  deposit to the credit of the Account for the Tax on Cigarettes in the

58-12  State General Fund.

58-13     (c) Transmit the balance of the payments each month to the

58-14  State Treasurer for deposit in the Local Government Tax

58-15  Distribution Account created by NRS 360.660.

58-16     (d) Report to the State Controller monthly the amount of

58-17  collections.

58-18     3.  The money deposited pursuant to paragraph (c) of

58-19  subsection 2 in the Local Government Tax Distribution Account is

58-20  hereby appropriated to Carson City andto each of the counties in

58-21  proportion to their respective populations and must be credited to

58-22  the respective accounts of Carson City and each county.

58-23     Sec. 82.5. (Deleted by amendment.)

58-24     Sec. 83.  NRS 370.350 is hereby amended to read as follows:

58-25      370.350  1.  Except as otherwise provided in subsection 3, a

58-26  tax is hereby levied and imposed upon the use of cigarettes in this

58-27  state.

58-28     2.  The amount of the use tax is [17.5] 40 mills per cigarette.

58-29     3.  The use tax does not apply where:

58-30     (a) Nevada cigarette revenue stamps have been affixed to

58-31  cigarette packages as required by law.

58-32     (b) Tax exemption is provided for in this chapter.

58-33     Sec. 83.5. (Deleted by amendment.)

58-34     Sec. 84. NRS 370.450 is hereby amended to read as follows:

58-35      370.450  1.  Except as otherwise provided in subsection 2,

58-36  there is hereby imposed upon the purchase or possession of products

58-37  made from tobacco, other than cigarettes, by a customer in this state

58-38  a tax of 30 percent of the wholesale price of those products.

58-39     2.  The provisions of subsection 1 do not apply to those

58-40  products which are:

58-41     (a) Shipped out of the State for sale and use outside the State; or

58-42     (b) Displayed or exhibited at a trade show, convention or other

58-43  exhibition in this state by a manufacturer or wholesale dealer who is

58-44  not licensed in this state.

59-1      3.  This tax must be collected and paid by the wholesale dealer

59-2  to the Department, in accordance with the provisions of NRS

59-3  370.465, after the sale or distribution of those products by the

59-4  wholesale dealer. The wholesale dealer is entitled to retain [2] 0.5

59-5  percent of the taxes collected to cover the costs of collecting and

59-6  administering the taxes[.] if the taxes are paid in accordance with

59-7  the provisions of NRS 370.465.

59-8      4.  Any wholesale dealer who sells or distributes any of those

59-9  products without paying the tax provided for by this section is guilty

59-10  of a misdemeanor.

59-11     Sec. 85. NRS 370.490 is hereby amended to read as follows:

59-12      370.490  1.  The Department shall allow a credit of 30 percent

59-13  of the wholesale price, less a discount of [2] 0.5 percent for the

59-14  services rendered in collecting the tax, for products made from

59-15  tobacco, other than cigarettes, upon which the tax has been paid

59-16  pursuant to NRS 370.450 and that may no longer be sold. If the

59-17  products have been purchased and delivered, a credit memo of the

59-18  manufacturer is required for proof of returned merchandise.

59-19     2.  A credit must also be granted for any products made from

59-20  tobacco, other than cigarettes, shipped from this state and destined

59-21  for retail sale and consumption outside the State on which the tax

59-22  has previously been paid. A duplicate or copy of the invoice is

59-23  required for proof of the sale outside the State.

59-24     3.  A wholesale dealer may claim a credit by filing with the

59-25  Department the proof required by this section. The claim must be

59-26  made on a form prescribed by the Department.

59-27     Sec. 86.  NRS 372.130 is hereby amended to read as follows:

59-28      372.130  At the time of making an application, the applicant

59-29  must pay to the Department a permit fee of [$1] $5 for each permit.

59-30     Sec. 87.  NRS 372.140 is hereby amended to read as follows:

59-31      372.140  A seller whose permit has been previously suspended

59-32  or revoked must pay the Department a fee of [$1] $5 for the renewal

59-33  or issuance of a permit.

59-34     Sec. 88.  NRS 372.220 is hereby amended to read as follows:

59-35      372.220  1.  Every retailer who sells tangible personal

59-36  property for storage, use or other consumption in this state shall

59-37  register with the Department and give:

59-38     [1.] (a) The name and address of all agents operating in this

59-39  state.

59-40     [2.] (b) The location of all distribution or sales houses or offices

59-41  or other places of business in this state.

59-42     [3.] (c) Such other information as the Department may require.

59-43     2.  Every business that purchases tangible personal property

59-44  for storage, use or other consumption in this state shall, at the

59-45  time the business obtains a business license pursuant to NRS

60-1  364A.130, register with the Department on a form prescribed by

60-2  the Department. As used in this section, “business” has the

60-3  meaning ascribed to it in NRS 364A.020.

60-4      Sec. 89.  NRS 372.220 is hereby amended to read as follows:

60-5      372.220  1.  Every retailer who sells tangible personal

60-6  property for storage, use or other consumption in this state shall

60-7  register with the Department and give:

60-8      (a) The name and address of all agents operating in this state.

60-9      (b) The location of all distribution or sales houses or offices or

60-10  other places of business in this state.

60-11     (c) Such other information as the Department may require.

60-12     2.  Every business that purchases tangible personal property for

60-13  storage, use or other consumption in this state shall, at the time the

60-14  business obtains a business license pursuant to [NRS 364A.130,]

60-15  section 66 of this act, register with the Department on a form

60-16  prescribed by the Department. As used in this section, “business”

60-17  has the meaning ascribed to it in [NRS 364A.020.] section 62 of this

60-18  act.

60-19     Sec. 90.  NRS 372.370 is hereby amended to read as follows:

60-20      372.370  [The taxpayer shall] If the taxes imposed by this

60-21  chapter are paid in accordance with NRS 372.355, the taxpayer

60-22  may deduct and withhold from the taxes otherwise due from him

60-23  [1.25] 0.5 percent of [it] those taxes to reimburse himself for the

60-24  cost of collecting the tax.

60-25     Sec. 91.  NRS 374.135 is hereby amended to read as follows:

60-26      374.135  At the time of making an application, the applicant

60-27  shall pay to the Department a permit fee of [$1] $5 for each permit.

60-28     Sec. 92.  NRS 374.145 is hereby amended to read as follows:

60-29      374.145  A seller whose permit has been previously suspended

60-30  or revoked shall pay the Department a fee of [$1] $5 for the renewal

60-31  or issuance of a permit.

60-32     Sec. 93.  NRS 374.375 is hereby amended to read as follows:

60-33      374.375  [The taxpayer shall] If the taxes imposed by this

60-34  chapter are paid in accordance with NRS 374.360, the taxpayer

60-35  may deduct and withhold from the taxes otherwise due from him

60-36  [1.25] 0.5 percent thereof to reimburse himself for the cost of

60-37  collecting the tax.

60-38     Sec. 94.   Chapter 375 of NRS is hereby amended by adding

60-39  thereto the provisions set forth as sections 95 and 96 of this act.

60-40     Sec. 95. 1.  In addition to all other taxes imposed on

60-41  transfers of real property, a tax, at the rate of $1.30 on each $500

60-42  of value or fraction thereof, is hereby imposed on each deed by

60-43  which any lands, tenements or other realty is granted, assigned,

60-44  transferred or otherwise conveyed to, or vested in, another person,

61-1  if the consideration or value of the interest or property conveyed

61-2  exceeds $100.

61-3      2.  The amount of the tax must be computed on the basis of

61-4  the value of the transferred property as declared pursuant to NRS

61-5  375.060.

61-6      3.  The county recorder of each county shall collect the tax in

61-7  the manner provided in NRS 375.030, except that the amount

61-8  collected must be transmitted to the State Controller for deposit in

61-9  the State General Fund within 30 days after the end of the

61-10  calendar quarter during which the tax was collected.

61-11     4.  The county recorder of a county:

61-12     (a) Whose population is 100,000 or more may deduct and

61-13  withhold from the taxes collected 0.2 percent of those taxes to

61-14  reimburse the county for the cost of collecting the tax.

61-15     (b) Whose population is less than 100,000 may deduct and

61-16  withhold from the taxes collected 1 percent of those taxes to

61-17  reimburse the county for the cost of collecting the tax.

61-18     Sec. 96.  1.  The Department shall, to ensure that the tax

61-19  imposed by section 95 of this act is collected fairly and equitably in

61-20  all counties, coordinate the collection and administration of that

61-21  tax. For this purpose, the Department may conduct such audits of

61-22  the records of the various counties as are necessary to carry out

61-23  the provisions of section 95 of this act.

61-24     2.  When requested, the Department shall render assistance to

61-25  the county recorder of a county whose population is less than

61-26  30,000 relating to the imposition and collection of the tax imposed

61-27  by section 95 of this act.

61-28     3.  The Department is not entitled to receive any fee for

61-29  rendering any assistance pursuant to subsection 2.

61-30     Sec. 97. NRS 375.018 is hereby amended to read as follows:

61-31      375.018  With regard to the administration of [the real property

61-32  transfer tax,] any tax imposed by this chapter, the county recorder

61-33  shall apply the following principles:

61-34     1.  Forms, instructions and regulations governing the

61-35  computation of the amount of tax due must be brief and easily

61-36  understood.

61-37     2.  In cases where another authority, such as the United States

61-38  or this state, also imposes a tax upon the same property or revenue,

61-39  the mechanism for collecting the tax imposed by the county must be

61-40  as nearly compatible with the collection of the other taxes as is

61-41  feasible.

61-42     3.  Unless a change is made necessary by statute or to preserve

61-43  compatibility with a tax imposed by another authority, the forms,

61-44  instructions and regulations must remain the same from year to year,

61-45  to make the taxpayer’s liability as predictable as is feasible.

62-1      4.  Exemptions or waivers, where permitted by statute, must be

62-2  granted:

62-3      (a) Equitably among eligible taxpayers; and

62-4      (b) As sparingly as is consistent with the legislative intent, to

62-5  retain the broadest feasible base for the tax.

62-6      Sec. 98.  NRS 375.030 is hereby amended to read as follows:

62-7      375.030  1.  If any deed evidencing a transfer of title subject to

62-8  the tax imposed by NRS 375.020 [and, if applicable, NRS 375.025,]

62-9  is offered for recordation, the county recorder shall compute the

62-10  amount of the tax due and shall collect that amount before

62-11  acceptance of the deed for recordation.

62-12     2.  The buyer and seller are jointly and severally liable for the

62-13  payment of the taxes imposed by NRS 375.020 [and 375.025] and

62-14  any penalties and interest imposed pursuant to subsection 3. The

62-15  escrow holder is not liable for the payment of the taxes imposed by

62-16  NRS 375.020 [and 375.025] or any penalties or interest imposed

62-17  pursuant to subsection 3.

62-18     3.  If after recordation of the deed, the county recorder

62-19  disallows an exemption that was claimed at the time the deed was

62-20  recorded or through audit or otherwise determines that an additional

62-21  amount of tax is due, the county recorder shall promptly notify the

62-22  person who requested the recording of the deed and the buyer and

62-23  seller of the additional amount of tax due. If the additional amount

62-24  of tax is not paid within 30 days after the date the buyer and seller

62-25  are notified, the county recorder shall impose a penalty of 10

62-26  percent of the additional amount due in addition to interest at the

62-27  rate of 1 percent per month, or portion thereof, of the additional

62-28  amount due calculated from the date of the original recordation of

62-29  the deed on which the additional amount is due through the date on

62-30  which the additional amount due, penalty and interest are paid to the

62-31  county recorder.

62-32     4.  This section does not prohibit a buyer and seller from

62-33  agreeing by contract or otherwise that one party or the other will be

62-34  responsible for the payment of the tax due pursuant to this chapter,

62-35  but such an agreement does not affect the ability of the county

62-36  recorder to collect the tax and any penalties and interest from either

62-37  the buyer or the seller.

62-38     Sec. 99. NRS 375.030 is hereby amended to read as follows:

62-39      375.030  1.  If any deed evidencing a transfer of title subject to

62-40  the tax imposed by NRS 375.020 and section 95 of this act is

62-41  offered for recordation, the county recorder shall compute the

62-42  amount of the tax due and shall collect that amount before

62-43  acceptance of the deed for recordation.

62-44     2.  The buyer and seller are jointly and severally liable for the

62-45  payment of the taxes imposed by NRS 375.020 and section 95 of

63-1  this act and any penalties and interest imposed pursuant to

63-2  subsection 3. The escrow holder is not liable for the payment of the

63-3  taxes imposed by NRS 375.020 and section 95 of this act or any

63-4  penalties or interest imposed pursuant to subsection 3.

63-5      3.  If after recordation of the deed, the county recorder

63-6  disallows an exemption that was claimed at the time the deed was

63-7  recorded or through audit or otherwise determines that an additional

63-8  amount of tax is due, the county recorder shall promptly notify the

63-9  person who requested the recording of the deed and the buyer and

63-10  seller of the additional amount of tax due. If the additional amount

63-11  of tax is not paid within 30 days after the date the buyer and seller

63-12  are notified, the county recorder shall impose a penalty of 10

63-13  percent of the additional amount due in addition to interest at the

63-14  rate of 1 percent per month, or portion thereof, of the additional

63-15  amount due calculated from the date of the original recordation of

63-16  the deed on which the additional amount is due through the date on

63-17  which the additional amount due, penalty and interest are paid to the

63-18  county recorder.

63-19     4.  This section does not prohibit a buyer and seller from

63-20  agreeing by contract or otherwise that one party or the other will be

63-21  responsible for the payment of the tax due pursuant to this chapter,

63-22  but such an agreement does not affect the ability of the county

63-23  recorder to collect the tax and any penalties and interest from either

63-24  the buyer or the seller.

63-25     Sec. 100. NRS 375.070 is hereby amended to read as follows:

63-26      375.070  1.  The county recorder shall transmit the proceeds of

63-27  the [real property transfer] tax imposed by NRS 375.020 at the end

63-28  of each quarter in the following manner:

63-29     (a) An amount equal to that portion of the proceeds which is

63-30  equivalent to 10 cents for each $500 of value or fraction thereof

63-31  must be transmitted to the State Controller who shall deposit that

63-32  amount in the Account for Low-Income Housing created pursuant to

63-33  NRS 319.500.

63-34     (b) In a county whose population is more than 400,000, an

63-35  amount equal to that portion of the proceeds which is equivalent to

63-36  60 cents for each $500 of value or fraction thereof must be

63-37  transmitted to the county treasurer for deposit in the county school

63-38  district’s fund for capital projects established pursuant to NRS

63-39  387.328, to be held and expended in the same manner as other

63-40  money deposited in that fund.

63-41     (c) The remaining proceeds must be transmitted to the State

63-42  Controller for deposit in the Local Government Tax Distribution

63-43  Account created by NRS 360.660 for credit to the respective

63-44  accounts of Carson City and each county.

64-1      2.  In addition to any other authorized use of the proceeds it

64-2  receives pursuant to subsection 1, a county or city may use the

64-3  proceeds to pay expenses related to or incurred for the development

64-4  of affordable housing for families whose income does not exceed 80

64-5  percent of the median income for families residing in the same

64-6  county, as that percentage is defined by the United States

64-7  Department of Housing and Urban Development. A county or city

64-8  that uses the proceeds in that manner must give priority to the

64-9  development of affordable housing for persons who are disabled or

64-10  elderly.

64-11     3.  The expenses authorized by subsection 2 include, but are not

64-12  limited to:

64-13     (a) The costs to acquire land and developmental rights;

64-14     (b) Related predevelopment expenses;

64-15     (c) The costs to develop the land, including the payment of

64-16  related rebates;

64-17     (d) Contributions toward down payments made for the purchase

64-18  of affordable housing; and

64-19     (e) The creation of related trust funds.

64-20     Sec. 101.  NRS 375.090 is hereby amended to read as follows:

64-21      375.090  The tax imposed by NRS 375.020 [and 375.025] does

64-22  not apply to:

64-23     1.  A mere change in identity, form or place of organization,

64-24  such as a transfer between a corporation and its parent corporation, a

64-25  subsidiary or an affiliated corporation if the affiliated corporation

64-26  has identical common ownership.

64-27     2.  A transfer of title to the United States, any territory or state

64-28  or any agency, department, instrumentality or political subdivision

64-29  thereof.

64-30     3.  A transfer of title recognizing the true status of ownership of

64-31  the real property.

64-32     4.  A transfer of title without consideration from one joint

64-33  tenant or tenant in common to one or more remaining joint tenants

64-34  or tenants in common.

64-35     5.  A transfer of title to community property without

64-36  consideration when held in the name of one spouse to both spouses

64-37  as joint tenants or tenants in common, or as community property.

64-38     6.  A transfer of title between spouses, including gifts.

64-39     7.  A transfer of title between spouses to effect a property

64-40  settlement agreement or between former spouses in compliance with

64-41  a decree of divorce.

64-42     8.  A transfer of title to or from a trust, if the transfer is made

64-43  without consideration, and is made to or from:

64-44     (a) The trustor of the trust;

64-45     (b) The trustor’s legal representative; or

65-1      (c) A person related to the trustor in the first degree of

65-2  consanguinity.

65-3  As used in this subsection, “legal representative” has the meaning

65-4  ascribed to it in NRS 167.020.

65-5      9.  Transfers, assignments or conveyances of unpatented mines

65-6  or mining claims.

65-7      10.  A transfer, assignment or other conveyance of real property

65-8  to a corporation or other business organization if the person

65-9  conveying the property owns 100 percent of the corporation or

65-10  organization to which the conveyance is made.

65-11     11.  A transfer, assignment or other conveyance of real property

65-12  if the owner of the property is related to the person to whom it is

65-13  conveyed within the first degree of consanguinity.

65-14     12.  The making, delivery or filing of conveyances of real

65-15  property to make effective any plan of reorganization or adjustment:

65-16     (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C.

65-17  §§ 101 et seq.;

65-18     (b) Approved in an equity receivership proceeding involving a

65-19  railroad, as defined in the Bankruptcy Act; or

65-20     (c) Approved in an equity receivership proceeding involving a

65-21  corporation, as defined in the Bankruptcy Act,

65-22  if the making, delivery or filing of instruments of transfer or

65-23  conveyance occurs within 5 years after the date of the confirmation,

65-24  approval or change.

65-25     13.  The making or delivery of conveyances of real property to

65-26  make effective any order of the Securities and Exchange

65-27  Commission if:

65-28     (a) The order of the Securities and Exchange Commission in

65-29  obedience to which the transfer or conveyance is made recites that

65-30  the transfer or conveyance is necessary or appropriate to effectuate

65-31  the provisions of section 11 of the Public Utility Holding Company

65-32  Act of 1935, 15 U.S.C. § 79k;

65-33     (b) The order specifies and itemizes the property which is

65-34  ordered to be transferred or conveyed; and

65-35     (c) The transfer or conveyance is made in obedience to the

65-36  order.

65-37     14.  A transfer to an educational foundation. As used in this

65-38  subsection, “educational foundation” has the meaning ascribed to it

65-39  in subsection 3 of NRS 388.750.

65-40     15.  A transfer to a university foundation. As used in this

65-41  subsection, “university foundation” has the meaning ascribed to it in

65-42  subsection 3 of NRS 396.405.

65-43     16.  A transfer, assignment or other conveyance of real property

65-44  to a corporation sole from another corporation sole. As used in this

66-1  subsection, “corporation sole” means a corporation which is

66-2  organized pursuant to the provisions of chapter 84 of NRS.

66-3      Sec. 102. NRS 375.090 is hereby amended to read as follows:

66-4      375.090  The [tax] taxes imposed by NRS 375.020 [does] and

66-5  section 95 this act do not apply to:

66-6      1.  A mere change in [identity, form or place of organization,

66-7  such as a transfer between a corporation and its parent corporation, a

66-8  subsidiary or an affiliated corporation if the affiliated corporation

66-9  has identical common ownership.] the name of the owner of the

66-10  property without a change in the ownership interest of the

66-11  property.

66-12     2.  A transfer of title to the United States, any territory or state

66-13  or any agency, department, instrumentality or political subdivision

66-14  thereof.

66-15     3.  A transfer of title recognizing the true status of ownership of

66-16  the real property.

66-17     4.  A transfer of title without consideration from one joint

66-18  tenant or tenant in common to one or more remaining joint tenants

66-19  or tenants in common.

66-20     5.  [A transfer of title to community property without

66-21  consideration when held in the name of one spouse to both spouses

66-22  as joint tenants or tenants in common, or as community property.

66-23     6.] A transfer of title between spouses, including gifts [.

66-24     7.  A transfer of title between spouses] , or to effect a property

66-25  settlement agreement or between former spouses in compliance with

66-26  a decree of divorce.

66-27     [8.] 6.  A transfer of title to or from a trust [, if the transfer is

66-28  made] without consideration [, and is made to or from:

66-29     (a) The trustor of the trust;

66-30     (b) The trustor’s legal representative; or

66-31     (c) A person related to the trustor in the first degree of

66-32  consanguinity.

66-33  As used in this subsection, “legal representative” has the meaning

66-34  ascribed to it in NRS 167.020.

66-35     9.] if a certificate of trust is presented at the time of transfer.

66-36     7.  Transfers, assignments or conveyances of unpatented mines

66-37  or mining claims.

66-38     [10.  A transfer, assignment or other conveyance of real

66-39  property to a corporation or other business organization if the person

66-40  conveying the property owns 100 percent of the corporation or

66-41  organization to which the conveyance is made.

66-42     11.] 8.  A transfer, assignment or other conveyance of real

66-43  property if the owner of the property is related to the person to

66-44  whom it is conveyed within the first degree of consanguinity.

67-1      [12.] 9.  The making, delivery or filing of conveyances of real

67-2  property to make effective any plan of reorganization or adjustment:

67-3      (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C.

67-4  §§ 101 et seq.;

67-5      (b) Approved in an equity receivership proceeding involving a

67-6  railroad, as defined in the Bankruptcy Act; or

67-7      (c) Approved in an equity receivership proceeding involving a

67-8  corporation, as defined in the Bankruptcy Act,

67-9  if the making, delivery or filing of instruments of transfer or

67-10  conveyance occurs within 5 years after the date of the confirmation,

67-11  approval or change.

67-12     [13.] 10.  The making or delivery of conveyances of real

67-13  property to make effective any order of the Securities and Exchange

67-14  Commission if:

67-15     (a) The order of the Securities and Exchange Commission in

67-16  obedience to which the transfer or conveyance is made recites that

67-17  the transfer or conveyance is necessary or appropriate to effectuate

67-18  the provisions of section 11 of the Public Utility Holding Company

67-19  Act of 1935, 15 U.S.C. § 79k;

67-20     (b) The order specifies and itemizes the property which is

67-21  ordered to be transferred or conveyed; and

67-22     (c) The transfer or conveyance is made in obedience to the

67-23  order.

67-24     [14.] 11.  A transfer to an educational foundation. As used in

67-25  this subsection, “educational foundation” has the meaning ascribed

67-26  to it in subsection 3 of NRS 388.750.

67-27     [15.] 12.  A transfer to a university foundation. As used in this

67-28  subsection, “university foundation” has the meaning ascribed to it in

67-29  subsection 3 of NRS 396.405.

67-30     [16.  A transfer, assignment or other conveyance of real

67-31  property to a corporation sole from another corporation sole. As

67-32  used in this subsection, “corporation sole” means a corporation

67-33  which is organized pursuant to the provisions of chapter 84 of

67-34  NRS.]

67-35     Sec. 103. NRS 375.120 is hereby amended to read as follows:

67-36      375.120  The county recorder shall:

67-37     1.  Conduct and apply audits and other procedures for

67-38  enforcement as uniformly as is feasible.

67-39     2.  Collect [real property transfer] any tax that is due pursuant

67-40  to the provisions of this chapter in an equitable manner, so that

67-41  every taxpayer pays the full amount imposed by law.

67-42     Sec. 104. NRS 375.130 is hereby amended to read as follows:

67-43      375.130  1.  The county recorder may audit all records relating

67-44  to the collection and calculation of [the real property transfer tax.]

67-45  any tax imposed by this chapter. If the county recorder deems it

68-1  necessary to conduct an audit, the audit must be completed within 3

68-2  years after the date of the original recording of the document that

68-3  evidences the transfer of property for which the tax was imposed.

68-4      2.  The county recorder may issue subpoenas to require the

68-5  production of documents necessary for him to determine the amount

68-6  of [real property transfer] the tax due pursuant to this chapter or to

68-7  determine whether a person qualifies for an exemption from taxes

68-8  pursuant to this chapter. The county recorder may have the

68-9  subpoenas served, and upon application of the district attorney, to

68-10  any court of competent jurisdiction, enforced in the manner

68-11  provided by law for the service and enforcement of subpoenas in a

68-12  civil action.

68-13     Sec. 105. NRS 375.160 is hereby amended to read as follows:

68-14      375.160  1.  If any [real property transfer] tax imposed

68-15  pursuant to this chapter is not paid when due, the county may,

68-16  within 3 years after the date that the tax was due, record a certificate

68-17  in the office of the county recorder which states:

68-18     (a) The amount of the [real property transfer] tax and any

68-19  interest or penalties due;

68-20     (b) The name and address of the person who is liable for the

68-21  amount due as they appear on the records of the county; and

68-22     (c) That the county recorder has complied with all procedures

68-23  required by law for determining the amount due.

68-24     2.  From the time of the recording of the certificate, the amount

68-25  due, including interest and penalties, constitutes:

68-26     (a) A lien upon the real property for which the tax was due if the

68-27  person who owes the tax still owns the property; or

68-28     (b) A demand for payment if the property has been sold or

68-29  otherwise transferred to another person.

68-30     3.  The lien has the effect and priority of a judgment lien and

68-31  continues for 5 years after the time of the recording of the certificate

68-32  unless sooner released or otherwise discharged.

68-33     4.  Within 5 years after the date of recording the certificate or

68-34  within 5 years after the date of the last extension of the lien pursuant

68-35  to this subsection, the lien may be extended by recording a new

68-36  certificate in the office of the county recorder. From the time of

68-37  recording the new certificate, the lien is extended for 5 years, unless

68-38  sooner released or otherwise discharged.

68-39     Sec. 106. NRS 375.170 is hereby amended to read as follows:

68-40      375.170  1.  If a person is delinquent in the payment of [the

68-41  real property transfer] any tax imposed by this chapter or has not

68-42  paid the amount of a deficiency determination, the county may bring

68-43  an action in a court of this state, a court of any other state or a court

68-44  of the United States that has competent jurisdiction to collect the

68-45  delinquent or deficient amount, penalties and interest. The action:

69-1      (a) May not be brought if the decision that the payment is

69-2  delinquent or that there is a deficiency determination is on appeal to

69-3  a hearing officer pursuant to NRS 375.320.

69-4      (b) Must be brought not later than 3 years after the payment

69-5  became delinquent or the determination became final.

69-6      2.  The district attorney shall prosecute the action. The

69-7  provisions of the Nevada Revised Statutes, Nevada Rules of Civil

69-8  Procedure and Nevada Rules of Appellate Procedure relating to

69-9  service of summons, pleadings, proofs, trials and appeals are

69-10  applicable to the proceedings. In the action, a writ of attachment

69-11  may issue. A bond or affidavit is not required before an attachment

69-12  may be issued.

69-13     3.  In an action, a certificate by the county recorder showing the

69-14  delinquency is prima facie evidence of:

69-15     (a) The determination of the tax or the amount of the tax;

69-16     (b) The delinquency of the amounts; and

69-17     (c) The compliance by the county recorder with all the

69-18  procedures required by law relating to the computation and

69-19  determination of the amounts.

69-20     Sec. 107. NRS 375.250 is hereby amended to read as follows:

69-21      375.250  1.  The Legislature hereby declares that each

69-22  taxpayer has the right:

69-23     (a) To be treated by officers and employees of the county

69-24  recorder with courtesy, fairness, uniformity, consistency and

69-25  common sense.

69-26     (b) To a prompt response from the county recorder to each

69-27  communication from the taxpayer.

69-28     (c) To provide the minimum documentation and other

69-29  information as may reasonably be required by the county recorder to

69-30  carry out his duties.

69-31     (d) To be notified, in writing, by the county recorder whenever

69-32  an officer or employee of the county recorder determines that the

69-33  taxpayer is entitled to an exemption or has been taxed more than is

69-34  required pursuant to this chapter.

69-35     (e) To written instructions indicating how the taxpayer may

69-36  petition for a refund for overpayment of [real property transfer] any

69-37  tax, interest or penalties.

69-38     (f) To recover an overpayment of [real property transfer] any tax

69-39  promptly upon the final determination of such an overpayment.

69-40     (g) To obtain specific advice from the county recorder

69-41  concerning [real property transfer] any tax.

69-42     (h) In any meeting with the county recorder, including an audit,

69-43  conference, interview or hearing:

70-1          (1) To an explanation by an officer, agent or employee of the

70-2  county recorder that describes the procedures to be followed and the

70-3  rights of the taxpayer thereunder;

70-4          (2) To be represented by himself or anyone who is otherwise

70-5  authorized by law to represent him before the county recorder;

70-6          (3) To make an audio recording using the taxpayer’s

70-7  equipment and at the taxpayer’s expense; and

70-8          (4) To receive a copy of any document or audio recording

70-9  made by or in the possession of the county recorder relating to the

70-10  determination or collection of any tax for which the taxpayer is

70-11  assessed pursuant to this chapter, upon payment of the actual cost to

70-12  the county recorder of making the copy.

70-13     (i) To a full explanation of the authority of the county recorder

70-14  to collect the [real property transfer] tax or to collect a delinquent

70-15  [real property transfer] tax, including, without limitation, the

70-16  procedures and notices for review and appeal that are required for

70-17  the protection of the taxpayer. An explanation which meets the

70-18  requirements of this section must also be included with each notice

70-19  to a taxpayer that an audit will be conducted by the county.

70-20     (j) To the immediate release of any lien which the county

70-21  recorder has placed on real property for the nonpayment of [the real

70-22  property transfer] a tax when:

70-23         (1) The tax is paid;

70-24         (2) The period of limitation for collecting the tax expires;

70-25         (3) The lien is the result of an error by the county recorder;

70-26         (4) The county recorder determines that the taxes, interest

70-27  and penalties are secured sufficiently by a lien on other real

70-28  property;

70-29         (5) The release or subordination of the lien will not

70-30  jeopardize the collection of the taxes, interest and penalties; or

70-31         (6) The release of the lien will facilitate the collection of the

70-32  taxes, interest and penalties.

70-33     (k) To be free from harassment and intimidation by an officer or

70-34  employee of the county recorder for any reason.

70-35     2.  The provisions of this chapter governing the administration

70-36  and collection of taxes by the county recorder must not be construed

70-37  in such a manner as to interfere or conflict with the provisions of

70-38  this section or any applicable regulations.

70-39     3.  The provisions of this section apply to the administration

70-40  and collection of taxes pursuant to this chapter.

70-41     Sec. 108. NRS 375.270 is hereby amended to read as follows:

70-42      375.270  The county recorder shall provide each taxpayer who

70-43  it determines may be liable for taxes pursuant to this chapter with

70-44  simplified written instructions concerning the rights and

70-45  responsibilities of the taxpayer, including the:

71-1      1.  Keeping of records sufficient for audit purposes;

71-2      2.  Procedures for paying [the real property transfer tax;] any

71-3  taxes that are due; and

71-4      3.  Procedures for challenging any liability for [real property

71-5  transfer] any tax, penalties or interest and for requesting refunds of

71-6  any erroneously paid [real property transfer] tax, including the steps

71-7  for appealing a denial thereof.

71-8      Sec. 109. NRS 375.290 is hereby amended to read as follows:

71-9      375.290  A taxpayer is entitled to receive on any overpayment

71-10  of [the real property transfer] any tax imposed by this chapter a

71-11  refund together with interest at a rate determined pursuant to NRS

71-12  17.130. No interest is allowed on a refund of any penalties or

71-13  interest on the [real property transfer] tax that is paid by a taxpayer.

71-14     Sec. 110. NRS 375.300 is hereby amended to read as follows:

71-15      375.300  The county recorder shall provide a taxpayer with a

71-16  response to any written request submitted by the taxpayer that

71-17  relates to a [real property transfer] tax imposed by this chapter

71-18  within 30 days after the county treasurer receives the request.

71-19     Sec. 111.  NRS 375.330 is hereby amended to read as follows:

71-20      375.330  1.  The county recorder may waive any [real property

71-21  transfer] tax, penalty and interest owed by the taxpayer pursuant to

71-22  this chapter, other than the tax imposed by section 95 of this act, if

71-23  the taxpayer meets the criteria adopted by regulation. If a waiver is

71-24  granted pursuant to this subsection, the county shall prepare and

71-25  maintain on file a statement that contains:

71-26     (a) The reason for the waiver;

71-27     (b) The amount of the tax, penalty and interest owed by the

71-28  taxpayer; and

71-29     (c) The amount of the tax, penalty and interest waived by the

71-30  county.

71-31     2.  If the county recorder or a designated hearing officer finds

71-32  that the failure of a person to make a timely payment of [the real

71-33  property transfer] any tax imposed is the result of circumstances

71-34  beyond his control and occurred despite the exercise of ordinary

71-35  care and without intent to avoid such payment, the county recorder

71-36  may relieve him of all or part of any interest or penalty , or both.

71-37     3.  If a person proves to the satisfaction of the county recorder

71-38  that he has in good faith remitted the [real property transfer] tax in

71-39  reliance upon written advice provided by an officer or employee of

71-40  the county recorder, an opinion of the district attorney or Attorney

71-41  General, or the written results of an audit of his records conducted

71-42  by the county recorder, the county recorder may not require the

71-43  taxpayer to pay delinquent taxes, penalties or interest if the county

71-44  recorder determines after the completion of a subsequent audit that

71-45  the taxes the taxpayer remitted were deficient.

72-1      Sec. 112.  NRS 376A.040 is hereby amended to read as

72-2  follows:

72-3      376A.040  1.  In addition to all other taxes imposed on the

72-4  revenues from retail sales, a board of county commissioners of a

72-5  county whose population is less than 400,000 may by ordinance, but

72-6  not as in a case of emergency, impose a tax at the rate of up to 1/4 of

72-7  1 percent of the gross receipts of any retailer from the sale of all

72-8  tangible personal property sold at retail, or stored, used or otherwise

72-9  consumed in the county, after receiving the approval of a majority

72-10  of the registered voters of the county voting on the question at a

72-11  primary, general or special election. The question may be combined

72-12  with questions submitted pursuant to NRS [375.025, 376A.050 and

72-13  376A.070 or any combination thereof.] 376A.050 or 376A.070, or

72-14  both.

72-15     2.  If a county imposes a sales tax pursuant to this section and

72-16  NRS 376A.050, the combined additional sales tax must not exceed

72-17  1/4 of 1 percent. A tax imposed pursuant to this section applies

72-18  throughout the county, including incorporated cities in the county.

72-19     3.  Before the election may occur, an open-space plan must be

72-20  adopted by the board of county commissioners pursuant to NRS

72-21  376A.020 and the adopted open-space plan must be endorsed by

72-22  resolution by the city council of each incorporated city within the

72-23  county.

72-24     4.  All fees, taxes, interest and penalties imposed and all

72-25  amounts of tax required to be paid pursuant to this section must be

72-26  paid to the Department of Taxation in the form of remittances

72-27  payable to the Department of Taxation. The Department of Taxation

72-28  shall deposit the payments with the State Treasurer for credit to the

72-29  Sales and Use Tax Account in the State General Fund. The State

72-30  Controller, acting upon the collection data furnished by the

72-31  Department of Taxation, shall transfer monthly all fees, taxes,

72-32  interest and penalties collected during the preceding month to the

72-33  Intergovernmental Fund and remit the money to the county

72-34  treasurer.

72-35     5.  The money received from the tax imposed pursuant to

72-36  subsection 4 must be retained by the county, or remitted to a city or

72-37  general improvement district in the county. The money received by

72-38  a county, city or general improvement district pursuant to this

72-39  section must only be used to pay the cost of:

72-40     (a) The acquisition of land in fee simple for development and

72-41  use as open-space land;

72-42     (b) The acquisition of the development rights of land identified

72-43  as open-space land;

72-44     (c) The creation of a trust fund for the acquisition of land or

72-45  development rights of land pursuant to paragraphs (a) and (b);

73-1      (d) The principal and interest on notes, bonds or other

73-2  obligations issued by the county, city or general improvement

73-3  district for the acquisition of land or development rights of land

73-4  pursuant to paragraphs (a) and (b); or

73-5      (e) Any combination of the uses set forth in paragraphs (a) to

73-6  (d), inclusive.

73-7      6.  The money received from the tax imposed pursuant to this

73-8  section and any applicable penalty or interest must not be used for

73-9  any neighborhood or community park or facility.

73-10     7.  Any money used for the purposes described in this section

73-11  must be used in a manner:

73-12     (a) That is consistent with the provisions of the open-space plan

73-13  adopted pursuant to NRS 376A.020; and

73-14     (b) That provides an equitable allocation of the money among

73-15  the county and the incorporated cities within the county.

73-16     Sec. 113.  NRS 376A.040 is hereby amended to read as

73-17  follows:

73-18      376A.040  1.  In addition to all other taxes imposed on the

73-19  revenues from retail sales, a board of county commissioners of a

73-20  county whose population is 100,000 or more but less than 400,000,

73-21  may by ordinance, but not as in a case of emergency, impose a tax at

73-22  the rate of up to 1/4 of 1 percent of the gross receipts of any retailer

73-23  from the sale of all tangible personal property sold at retail, or

73-24  stored, used or otherwise consumed in the county, after receiving

73-25  the approval of a majority of the registered voters of the county

73-26  voting on the question at a primary, general or special election. The

73-27  question may be combined with questions submitted pursuant to

73-28  NRS [375.025, 376A.050 and 376A.070 or any combination

73-29  thereof.] 376A.050 or 376A.070, or both.

73-30     2.  If a county imposes a sales tax pursuant to this section and

73-31  NRS 376A.050, the combined additional sales tax must not exceed

73-32  1/4 of 1 percent. A tax imposed pursuant to this section applies

73-33  throughout the county, including incorporated cities in the county.

73-34     3.  Before the election may occur, an open-space plan must be

73-35  adopted by the board of county commissioners pursuant to NRS

73-36  376A.020 and the adopted open-space plan must be endorsed by

73-37  resolution by the city council of each incorporated city within the

73-38  county.

73-39     4.  All fees, taxes, interest and penalties imposed and all

73-40  amounts of tax required to be paid pursuant to this section must be

73-41  paid to the Department of Taxation in the form of remittances

73-42  payable to the Department of Taxation. The Department of Taxation

73-43  shall deposit the payments with the State Treasurer for credit to the

73-44  Sales and Use Tax Account in the State General Fund. The State

73-45  Controller, acting upon the collection data furnished by the

74-1  Department of Taxation, shall transfer monthly all fees, taxes,

74-2  interest and penalties collected during the preceding month to the

74-3  Intergovernmental Fund and remit the money to the county

74-4  treasurer.

74-5      5.  The money received from the tax imposed pursuant to

74-6  subsection 4 must be retained by the county, or remitted to a city or

74-7  general improvement district in the county. The money received by

74-8  a county, city or general improvement district pursuant to this

74-9  section must only be used to pay the cost of:

74-10     (a) The acquisition of land in fee simple for development and

74-11  use as open-space land;

74-12     (b) The acquisition of the development rights of land identified

74-13  as open-space land;

74-14     (c) The creation of a trust fund for the acquisition of land or

74-15  development rights of land pursuant to paragraphs (a) and (b);

74-16     (d) The principal and interest on notes, bonds or other

74-17  obligations issued by the county, city or general improvement

74-18  district for the acquisition of land or development rights of land

74-19  pursuant to paragraphs (a) and (b); or

74-20     (e) Any combination of the uses set forth in paragraphs (a) to

74-21  (d), inclusive.

74-22     6.  The money received from the tax imposed pursuant to this

74-23  section and any applicable penalty or interest must not be used for

74-24  any neighborhood or community park or facility.

74-25     7.  Any money used for the purposes described in this section

74-26  must be used in a manner:

74-27     (a) That is consistent with the provisions of the open-space plan

74-28  adopted pursuant to NRS 376A.020; and

74-29     (b) That provides an equitable allocation of the money among

74-30  the county and the incorporated cities within the county.

74-31     Sec. 114.  NRS 376A.050 is hereby amended to read as

74-32  follows:

74-33      376A.050  1.  Except as otherwise provided in subsection 2, in

74-34  addition to all other taxes imposed on the revenues from retail sales,

74-35  a board of county commissioners in each county whose population

74-36  is less than 400,000 may by ordinance, but not as in a case of

74-37  emergency, impose a tax at the rate of up to 1/4 of 1 percent of the

74-38  gross receipts of any retailer from the sale of all tangible personal

74-39  property sold at retail, or stored, used or otherwise consumed in the

74-40  county, after receiving the approval of a majority of the registered

74-41  voters of the county voting on the question at a primary, general or

74-42  special election. The question may be combined with questions

74-43  submitted pursuant to NRS [375.025, 376A.040 and 376A.070 or

74-44  any combination thereof.] 376A.040 or 376A.070, or both.

75-1      2.  If a county imposes a sales tax pursuant to this section and

75-2  NRS 376A.040, the combined additional sales tax must not exceed

75-3  1/4 of 1 percent. A tax imposed pursuant to this section applies

75-4  throughout the county, including incorporated cities in the county.

75-5      3.  Before the election occurs, an open-space plan must be

75-6  adopted by the board of county commissioners pursuant to NRS

75-7  376A.020 and the adopted open-space plan must be endorsed by

75-8  resolution by the city council of each incorporated city in the

75-9  county.

75-10     4.  All fees, taxes, interest and penalties imposed and all

75-11  amounts of tax required to be paid pursuant to this section must be

75-12  paid to the Department of Taxation in the form of remittances

75-13  payable to the Department of Taxation. The Department of Taxation

75-14  shall deposit the payments with the State Treasurer for credit to the

75-15  Sales and Use Tax Account in the State General Fund. The State

75-16  Controller, acting upon the collection data furnished by the

75-17  Department of Taxation, shall transfer monthly all fees, taxes,

75-18  interest and penalties collected during the preceding month to the

75-19  Intergovernmental Fund and remit the money to the county

75-20  treasurer.

75-21     Sec. 115.  NRS 376A.050 is hereby amended to read as

75-22  follows:

75-23      376A.050  1.  Except as otherwise provided in subsection 2, in

75-24  addition to all other taxes imposed on the revenues from retail sales,

75-25  a board of county commissioners in each county whose population

75-26  is 100,000 or more but less than 400,000, may by ordinance, but not

75-27  as in a case of emergency, impose a tax at the rate of up to 1/4 of 1

75-28  percent of the gross receipts of any retailer from the sale of all

75-29  tangible personal property sold at retail, or stored, used or otherwise

75-30  consumed in the county, after receiving the approval of a majority

75-31  of the registered voters of the county voting on the question at a

75-32  primary, general or special election. The question may be combined

75-33  with questions submitted pursuant to NRS [375.025, 376A.040 and

75-34  376A.070 or any combination thereof.] 376A.040 or 376A.070, or

75-35  both.

75-36     2.  If a county imposes a sales tax pursuant to this section and

75-37  NRS 376A.040, the combined additional sales tax must not exceed

75-38  1/4 of 1 percent. A tax imposed pursuant to this section applies

75-39  throughout the county, including incorporated cities in the county.

75-40     3.  Before the election occurs, an open-space plan must be

75-41  adopted by the board of county commissioners pursuant to NRS

75-42  376A.020 and the adopted open-space plan must be endorsed by

75-43  resolution by the city council of each incorporated city in the

75-44  county.

76-1      4.  All fees, taxes, interest and penalties imposed and all

76-2  amounts of tax required to be paid pursuant to this section must be

76-3  paid to the Department of Taxation in the form of remittances

76-4  payable to the Department of Taxation. The Department of Taxation

76-5  shall deposit the payments with the State Treasurer for credit to the

76-6  Sales and Use Tax Account in the State General Fund. The State

76-7  Controller, acting upon the collection data furnished by the

76-8  Department of Taxation, shall transfer monthly all fees, taxes,

76-9  interest and penalties collected during the preceding month to the

76-10  Intergovernmental Fund and remit the money to the county

76-11  treasurer.

76-12     Sec. 116.  NRS 376A.070 is hereby amended to read as

76-13  follows:

76-14      376A.070  1.  The board of county commissioners in a county

76-15  whose population is less than 400,000 may levy an ad valorem tax at

76-16  the rate of up to 1 cent on each $100 of assessed valuation upon all

76-17  taxable property in the county after receiving the approval of a

76-18  majority of the registered voters of the county voting on the question

76-19  at a primary, general or special election. The question may be

76-20  combined with questions submitted pursuant to NRS [375.025,

76-21  376A.040 and 376A.050 or any combination thereof.] 376A.040 or

76-22  376A.050, or both. A tax imposed pursuant to this section applies

76-23  throughout the county, including incorporated cities in the county.

76-24     2.  The Department of Taxation shall add an amount equal to

76-25  the rate of any tax imposed pursuant to this section multiplied by the

76-26  total assessed valuation of the county to the allowed revenue from

76-27  taxes ad valorem of the county.

76-28     3.  Before the tax is imposed, an open-space plan must be

76-29  adopted by the board of county commissioners pursuant to NRS

76-30  376A.020 and the adopted open-space plan must be endorsed by

76-31  resolution by the city council of each incorporated city within the

76-32  county.

76-33     Sec. 117.  NRS 376A.070 is hereby amended to read as

76-34  follows:

76-35      376A.070  1.  The board of county commissioners in a county

76-36  whose pop