NAC: CHAPTER 366 - TAX ON SPECIAL FUEL

[Rev. 2/15/2010 10:43:19 AM]

This chapter of NAC has changes which have been adopted but have not been codified; you can see those changes by viewing the following regulation(s) on the Nevada Register of Administrative Regulations: R150-08

CHAPTER 366 - TAX ON SPECIAL FUEL

GENERAL PROVISIONS

366.005 Definitions.

366.0065 Special mobile equipment: “Incidentally operated or moved upon a highway” interpreted; vehicles not specified in statutory definition.

366.0066 When special fuel is considered to be exported fuel.

LICENSING

366.0067 Application for license: Federal identification number required.

366.0068 Special fuel exporter: Application for and issuance of license; exportation to additional jurisdictions.

366.0069 Special fuel transporter: Application for and issuance of license.

366.007 Grounds for refusal to issue or revocation of license.

366.009 Sale of special fuel to certain suppliers or dealers prohibited.

SECURITY FOR PAYMENT

366.010 Amount required for initial 2 years of operation.

366.020 Amount required for years following initial 2 years of operation.

366.030 Request for reduction in amount required.

366.040 Amount required for habitually delinquent supplier or dealer.

366.050 Amount required after cancellation of surety bond.

COLLECTION AND PAYMENT

366.090 Electronic submission of tax return: General requirements; receipt.

366.093 Electronic submission of tax return: Submission and approval of application.

366.096 Special fuel users: Filing of quarterly or annual tax return directly with Department.

366.100 Date when payment is deemed received.

366.102 Problems with mail service considered when determining timeliness of payment.

366.106 Deficiency in tax return deemed failure to file.

366.108 Retention of fee for collecting tax prohibited under certain circumstances.

366.110 Deduction of amount due but not paid by purchaser authorized to defer payment.

366.120 Permit to defer payment: Issuance; application; bond; estimate of fuel to be purchased each month.

366.130 Permit to defer payment: Grounds for denial.

366.140 Permit to defer payment: Revocation.

366.150 Failure of purchaser to pay deferred payment: Notice; hearing; action to recover on bond.

366.155 Supplier to require certain proof from purchaser before selling fuel without collecting taxes.

366.160 Liability of supplier who sells fuel to purchaser whose permit has been revoked.

EXEMPT SPECIAL FUEL

366.190 Use of dyed fuel: “Federal law” interpreted.

REFUND OF TAX PAID ON SPECIAL FUEL USED FOR EXEMPT PURPOSE

366.200 Submission of spreadsheet or copies of receipts.

366.210 Fuel consumed off public highways of this State.

366.220 Fuel consumed by vehicle with auxiliary equipment.

366.230 Undyed fuel used to operate certain vehicles with refrigeration units or air-conditioning units.

366.240 Fuel used to operate vehicle in idle not exempt.

RECORDS

366.300 Records of shipment: Contents.

366.310 Records of shipment: Compliance with requirement concerning color and concentration of dye.

366.315 Records of exporter: Form and contents.

366.320 Records of transporter: Form.

INDIAN TRIBES

366.350 Agreement with governing body of tribe for collection of taxes.

366.355 Taxable sales on reservation: Collection of tax by supplier; refund of tax to tribe.

PENALTIES AND ENFORCEMENT

366.400 Violation of statute: Imposition, amount and payment of administrative fine.

366.410 Misuse or alteration of dyed special fuel: Imposition, amount, reduction and payment of administrative fine; suspension or revocation of license.

366.420 Failure of seller or distributor to control access to dyed special fuel: Imposition, amount and payment of administrative fine.

GENERAL PROVISIONS

NAC 366.005 Definitions. (NRS 366.110) As used in this chapter, unless the context otherwise requires:

1. “Apportioned” means that a commercial vehicle:

(a) Is registered in a manner that authorizes the vehicle to travel in more than one jurisdiction, as indicated by the list of jurisdictions on the certificate of registration; and

(b) Pays registration fees based on the percentage of operation in each jurisdiction.

2. “Base-plated” means that a vehicle is registered in the State of Nevada and displays a Nevada license plate.

3. “Department” means the Department of Motor Vehicles.

4. “Export” means to sell or distribute outside this State special fuel or other petroleum products that are received in this State. The term does not include selling or distributing special fuel or other petroleum products within a reservation.

5. “Governing body” means the governmental entity that has the authority to make decisions on behalf of a tribe.

6. “Habitually delinquent” means the commission by a special fuel user, special fuel supplier or special fuel dealer of any of the following violations at least twice within 1 year or any two of the following violations at least once within 1 year:

(a) The failure to file a monthly tax return during the period prescribed in NRS 366.380, 366.383 or 366.386, unless the Department finds that:

(1) The failure was caused by circumstances beyond the control of the special fuel user, special fuel supplier or special fuel dealer and occurred notwithstanding the exercise of ordinary care; and

(2) The special fuel user, special fuel supplier or special fuel dealer has paid all penalties and interest imposed by the Department because of his failure to file the tax return during the prescribed period.

(b) The failure to submit to the Department payment of the tax on special fuel collected pursuant to NRS 366.540 during the period prescribed in that section.

(c) The failure to submit to the Department the payment of any additional or estimated assessments imposed by the Department pursuant to NRS 360A.060, 360A.100, 360A.120 or 360A.130 during the period prescribed in the relevant section.

7. “Motor vehicle fuel” has the meaning ascribed to it in NRS 365.060.

8. “Other petroleum products” includes any petroleum-based substance, other than motor vehicle fuel or special fuel, that is used in the propulsion of motor vehicles, motor boats or aircraft, including, without limitation, fuel for jet or turbine-powered aircraft.

9. “Reservation” means any land that:

(a) Is located within the boundaries of this State; and

(b) Is set aside for use by a tribe, including, without limitation:

(1) An Indian reservation;

(2) An Indian colony;

(3) Any land which is owned in fee by or held in trust for a tribe; and

(4) Any other land which is under the jurisdiction of a tribe.

10. “Special fuel” has the meaning ascribed to it in NRS 366.060.

11. “Special fuel dealer” has the meaning ascribed to it in NRS 366.062.

12. “Special fuel exporter” has the meaning ascribed to it in NRS 366.065.

13. “Special fuel supplier” has the meaning ascribed to it in NRS 366.070.

14. “Special fuel transporter” has the meaning ascribed to it in NRS 366.075.

15. “Special fuel user” has the meaning ascribed to it in NRS 366.080.

16. “Tribal member” includes an enrolled member of a tribe.

17. “Tribe” means any tribe, band, nation or group of Indians that is recognized by the Federal Government as having a government-to-government relationship with the United States.

(Supplied in codification; A by Dep’t of Motor Veh. & Pub. Safety, 3-28-96; R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R106-01, 12-17-2001; R144-03, 1-16-2004)

NAC 366.0065 Special mobile equipment: “Incidentally operated or moved upon a highway” interpreted; vehicles not specified in statutory definition. (NRS 366.085, 366.110)

1. As used in NRS 366.085, the Department will interpret the term “incidentally operated or moved upon a highway” to mean the operation of:

(a) A motor vehicle in an emergency situation, as determined by emergency personnel, including, without limitation, a law enforcement agency or other appropriate authority;

(b) Construction equipment to patch a roadway that is operated subject to the terms of a contract for a specific project;

(d) Special mobile equipment on a public highway that is not a controlled-access highway as defined in NRS 484.041, if the special mobile equipment travels not more than 5 miles from the point at which the special mobile equipment initially entered the public highway.

2. As used in NRS 366.085, the term “special mobile equipment” does not include:

(a) Any truck that:

(1) Is used as a water truck on any portion of a public highway; or

(2) Was originally designed and manufactured as a vehicle to carry cargo;

(b) Any vehicle:

(1) That is used to sweep any portion of a public highway;

(2) That was originally designed and manufactured to transport persons or property;

(3) To which machinery for sweeping is mounted or attached; or

(4) That has the capability of traveling long distances over a controlled access highway;

(d) Any farm machinery or implements of husbandry.

(Added to NAC by Dep’t of Motor Veh. by R139-01, eff. 6-25-2002; A by R008-06, 5-4-2006; R079-07, 1-30-2008)

NAC 366.0066 When special fuel is considered to be exported fuel. (NRS 366.110) For the purposes of this chapter and chapter 366 of NRS, special fuel must be off-loaded in another state or jurisdiction to be considered exported fuel.

(Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

LICENSING

NAC 366.0067 Application for license: Federal identification number required. (NRS 366.110, 366.220, 366.240)

1. An application for a license to operate as a special fuel dealer, special fuel supplier, special fuel user, special fuel exporter or special fuel transporter must include the federal identification number of the applicant’s business.

2. As used in this section, “federal identification number” means:

(a) Federal taxpayer identification number;

(b) Federal employer identification number;

(d) Any other identification number issued by the Internal Revenue Service.

(Added to NAC by Dep’t of Motor Veh. by R133-06, eff. 9-18-2006)

NAC 366.0068 Special fuel exporter: Application for and issuance of license; exportation to additional jurisdictions. (NRS 366.110, 366.220, 366.240)

1. An applicant for a special fuel exporter’s license issued pursuant to the provisions of NRS 366.240 must submit to the Department an application on a form provided by the Department.

2. An application submitted pursuant to this section must be accompanied by a list of the states or other jurisdictions to which the applicant wishes to export and proof satisfactory to the Department that the applicant is licensed or registered to import special fuel or other petroleum products into each state or other jurisdiction to which he wishes to export such fuel or products.

3. Except as otherwise provided in subsection 2 of NRS 366.240, the Department will issue a special fuel exporter’s license upon receipt and approval of:

(a) A completed application; and

(b) Any proof required by the Department pursuant to subsection 2.

4. If a special fuel exporter wishes to export to a state or other jurisdiction in which he was not licensed or registered to import special fuel or other petroleum products when he submitted his original application pursuant to this section, he must file an addendum to his original application providing proof satisfactory to the Department of his licensure or registration to import special fuel or other petroleum products into each state or other jurisdiction to which he wishes to export such fuel or products and the date on which such licensure or registration became effective. The Department will notify the special fuel exporter of the date on which he may begin exporting to that state or other jurisdiction upon receipt and approval of any proof required by the Department pursuant to this subsection.

(Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

NAC 366.0069 Special fuel transporter: Application for and issuance of license. (NRS 366.110, 366.220, 366.240)

1. An applicant for a special fuel transporter’s license issued pursuant to the provisions of NRS 366.240 must submit to the Department an application on a form provided by the Department.

2. An application submitted pursuant to this section must be accompanied by a list of the states or other jurisdictions to which the applicant wishes to transport and proof satisfactory to the Department of the valid registration of each vehicle which the applicant will use in the transportation of special fuel, whether the vehicle is apportioned or base-plated.

3. Except as otherwise provided in subsection 2 of NRS 366.240, the Department will issue a special fuel transporter’s license upon receipt and approval of:

(a) A completed application; and

(b) Any proof required by the Department pursuant to subsection 2.

(Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

NAC 366.007 Grounds for refusal to issue or revocation of license. (NRS 366.110, 366.220, 366.240, 366.350) In addition to the persons described in NRS 366.240, the Department may refuse to issue a special fuel user’s license, special fuel supplier’s license or special fuel dealer’s license to a person, or may revoke a license issued to the special fuel user, special fuel supplier or special fuel dealer, who:

1. Fails to provide the information requested on his application for the license or to indicate that the information requested is not applicable to his business;

2. Submits an application or tax return which contains inaccurate information;

3. Fails to provide the information requested on a tax return or to indicate that the information requested is not applicable to his business; or

4. Owes the Department fees or taxes imposed against the person under chapter 371, 482 or 706 of NRS.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001)

NAC 366.009 Sale of special fuel to certain suppliers or dealers prohibited. (NRS 366.110) A special fuel supplier or special fuel dealer who has been informed by the Department that another special fuel supplier or special fuel dealer is not licensed pursuant to chapter 366 of NRS shall not sell special fuel to that unlicensed special fuel supplier or special fuel dealer without collecting the tax imposed by NRS 366.190.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001)

SECURITY FOR PAYMENT

NAC 366.010 Amount required for initial 2 years of operation. (NRS 366.110, 366.235)

1. Except as otherwise provided in NAC 366.030 and 366.040, the Department will fix the amount of security required pursuant to NRS 366.235 for an applicant for, or the holder of:

(a) A special fuel supplier’s license at three times the estimated maximum monthly tax, but not less than $1,000.

(b) A special fuel dealer’s license at three times the estimated maximum monthly tax, but not less than $100.

2. During the initial 2 years that a special fuel supplier or special fuel dealer operates his business, the Department will review his monthly tax returns filed pursuant to NRS 366.383 or 366.386 every 6 months to determine whether the estimated maximum monthly tax is accurate. If the Department determines that the estimated maximum monthly tax is not accurate, the Department will revise the amount of security required in accordance with its review. If the Department increases the amount of security required, the special fuel supplier or special fuel dealer shall increase his security as required by the Department within 60 days after notification of the increase.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, 12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

NAC 366.020 Amount required for years following initial 2 years of operation. (NRS 366.110, 366.235) The Department will review annually the estimated maximum monthly tax for each special fuel supplier or special fuel dealer who has operated his business for at least 2 years before the review is conducted. The Department will review the monthly tax returns of the special fuel supplier or special fuel dealer for the 24 months immediately preceding the review to determine whether the estimated monthly tax is sufficient. If the Department determines that the estimated monthly tax is not sufficient, the Department will increase the amount of security required for that special fuel supplier or special fuel dealer in accordance with its review. Except as otherwise provided in NAC 366.030 and 366.040, the increased amount of security must equal at least three times the increased estimated maximum monthly tax, but not less than $1,000 for a special fuel supplier or $100 for a special fuel dealer, as appropriate.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, 12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

NAC 366.030 Request for reduction in amount required. (NRS 366.110, 366.235)

1. A special fuel supplier or special fuel dealer who complies with the requirements set forth in subsection 2 or 3 may submit a written request to the Department for a reduction in the amount of security required from him if the required amount would otherwise be more than $5,000. Upon receipt of such a request, the Department may reduce the required amount to an amount which is:

(a) Not less than the amount of the maximum monthly tax the supplier or dealer reported to the Department during the 2 years immediately preceding his request for a reduction; or

(b) Equal to $5,000,

Ê whichever is greater.

2. To qualify to submit a request pursuant to subsection 1, a special fuel supplier or special fuel dealer who has filed tax returns with the Department pursuant to chapter 366 of NRS for less than 3 calendar years must submit to the Department a letter from the Department of Taxation which verifies that the special fuel supplier or special fuel dealer has, in his capacity as a dealer licensed pursuant to chapter 365 of NRS, paid punctually the taxes required pursuant to chapters 365 and 373 of NRS during the 3 calendar years preceding his request.

3. A special fuel supplier or special fuel dealer who has filed tax returns with the Department pursuant to chapter 366 of NRS for 3 or more calendar years may submit a request pursuant to subsection 1 if he:

(a) Has filed punctually the tax returns required by NRS 366.383 or 366.386 for the 3 preceding calendar years;

(b) Has paid punctually all taxes and assessments due the State of Nevada for the 3 preceding calendar years;

(d) Has been audited by the Department within the 2 preceding calendar years.

4. For the purposes of subsection 3, a special fuel supplier or special fuel dealer who:

(a) Through clerical error, underpaid taxes by not more than 5 percent; and

(b) Within 30 days after being notified by the Department of the underpayment, paid the taxes owed and any penalty and interest imposed by the Department,

Ê shall be deemed to have paid those taxes punctually.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, 12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

NAC 366.040 Amount required for habitually delinquent supplier or dealer. (NRS 366.110, 366.235)

1. If the Department determines that a special fuel supplier or special fuel dealer is habitually delinquent, the Department will increase the amount of security required from that special fuel supplier or special fuel dealer to five times the estimated maximum monthly tax.

2. If the Department increases the amount of security required, the special fuel supplier or special fuel dealer shall increase his security as required by the Department within 60 days after notification of the increase.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, 12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

NAC 366.050 Amount required after cancellation of surety bond. (NRS 366.110, 366.235, 366.350)

1. If the Department is notified that a surety bond of a special fuel supplier or special fuel dealer has been or may be cancelled, the Department will review the monthly tax returns of that special fuel supplier or special fuel dealer:

(a) For the 24 months immediately preceding the review; or

(b) If he has been in business less than 24 months, for the period he has operated his business,

Ê to determine the amount of security he will be required to provide.

2. Within 15 days after the Department receives notice that the bond has been or may be cancelled, the Department will notify the special fuel supplier or special fuel dealer of the amount of security required to retain his license. If the special fuel supplier or special fuel dealer does not provide the security required by the Department within 15 days after he receives notice of the amount of security required, the Department will revoke the license of the special fuel supplier or special fuel dealer.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, 12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

COLLECTION AND PAYMENT

NAC 366.090 Electronic submission of tax return: General requirements; receipt. (NRS 366.110, 366.383)

1. Except as otherwise provided in NAC 366.093, a special fuel supplier shall electronically submit the tax return required pursuant to the provisions of NRS 366.383:

(a) On or before July 1, 2006, if the special fuel supplier:

(1) Receives 1,000,000 gallons or more of special fuel for which taxes must be paid pursuant to subsection 2 of NRS 366.383 during a monthly period; or

(2) Receives 5,000,000 gallons or more of any type of special fuel during a monthly period.

(b) On or before January 1, 2007, if the special fuel supplier has not electronically submitted the form pursuant to paragraph (a) and the supplier:

(1) Receives 100,000 gallons or more but less than 1,000,000 gallons of special fuel for which taxes must be paid pursuant to subsection 2 of NRS 366.383 during a monthly period; or

(2) Receives 1,000,000 gallons or more but less than 5,000,000 gallons of any type of special fuel during a monthly period.

(c) On or before January 1, 2008, if the special fuel supplier has not electronically submitted the form pursuant to paragraph (a) or (b).

2. The return required pursuant to subsection 1 must be:

(a) Submitted in a format prescribed by the Department; and

(b) Accompanied by the payment of any tax that the special fuel supplier is required to remit with the return.

3. The payment of any tax that the special fuel supplier is required to remit with the return must be made using an electronic transfer of money.

4. A return filed pursuant to subsection 1 shall be deemed received by the Department after:

(a) The return is accessible to the Department; and

(b) The Department has received the payment of any tax that the special fuel supplier was required to remit with the return.

(Added to NAC by Dep’t of Motor Veh. by R142-04, eff. 10-4-2004; A by R008-06, 5-4-2006)

NAC 366.093 Electronic submission of tax return: Submission and approval of application. (NRS 366.110, 366.383)

1. Before a special fuel supplier may submit a tax return pursuant to the provisions of NAC 366.090, the special fuel supplier shall submit to the Department an application for the electronic submission of the return required pursuant to the provisions of NRS 366.383 on a form prescribed by the Department.

2. If the application submitted by a special fuel supplier pursuant to subsection 1 is accurate and complete, the Department will approve the application of the special fuel supplier for the electronic submission of the return required pursuant to the provisions of NRS 366.383.

3. A special fuel supplier shall not file a return pursuant to the provisions of NAC 366.090 until the Department has approved the application submitted by the supplier pursuant to subsection 2.

(Added to NAC by Dep’t of Motor Veh. by R142-04, eff. 10-4-2004)

NAC 366.096 Special fuel users: Filing of quarterly or annual tax return directly with Department. (NRS 366.110, 366.380) A special fuel user who is the holder of a special fuel user’s license issued by the Department and who operates solely in this State shall file the quarterly or annual tax return required pursuant to NRS 366.380 directly with the Department.

(Added to NAC by Dep’t of Motor Veh. by R008-06, eff. 5-4-2006)

NAC 366.100 Date when payment is deemed received. (NRS 366.110, 366.370) Except as otherwise provided in NAC 366.090, a payment by a special fuel user, special fuel supplier or special fuel dealer of the tax imposed by NRS 366.190 shall be deemed received:

1. If delivered by mail, on the date shown by the cancellation mark stamped by the United States Postal Service or the postal service of any other country upon an envelope containing payment properly addressed to the Department; or

2. If delivered by a private postal service, on the business day preceding the date of actual delivery.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001; R142-04, 10-4-2004)

NAC 366.102 Problems with mail service considered when determining timeliness of payment. (NRS 366.110, 366.370) In determining whether payment of a tax is timely received, if it is known that the postal service was inoperative at a certain time due to strikes, riots, warfare, acts of God or other reasons, the Department will consider the circumstances, and if there is any evidence of timely mailing, the Department will accept that evidence and consider the mailing to have been made timely.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety by R096-00, eff. 3-1-2001)

NAC 366.106 Deficiency in tax return deemed failure to file. (NRS 366.110, 366.390) If the tax return filed by a special fuel supplier pursuant to NRS 366.383 does not include all applicable reports and statements, the Department will consider the special fuel supplier to have failed to file the tax return as required by NRS 366.383 and the special fuel supplier is not entitled to the fee authorized by subsection 1 of NRS 366.390 for that month.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety by R096-00, eff. 3-1-2001)

NAC 366.108 Retention of fee for collecting tax prohibited under certain circumstances. (NRS 366.110, 366.390) If a special fuel supplier fails to submit a tax return pursuant to NRS 366.383, the special fuel supplier is not entitled to retain any fee for collecting the tax pursuant to NRS 366.390 if:

1. The tax return:

(a) Became accessible to the Department pursuant to the provisions of NAC 366.090; or

(b) Was mailed,

Ê after the last day of the month in which the return was required to be submitted to the Department; or

2. The tax for which the tax return was prepared was not included in the tax return or was filed after the last day of the month specified in subsection 1.

(Added to NAC by Dep’t of Motor Veh. by R106-01, eff. 12-17-2001; A by R142-04, 10-24-2004)

NAC 366.110 Deduction of amount due but not paid by purchaser authorized to defer payment. (NRS 366.110, 366.540)

1. Except as otherwise provided in subsection 2, if a special fuel supplier who is authorized to claim a deduction pursuant to subsection 2 of NRS 366.540 is unable to claim the deduction on his tax return for the month in which the special fuel was purchased, he may claim the deduction when he submits a subsequent tax return if, on the subsequent tax return, he states:

(a) That he is claiming a deduction for special fuel which was not sold during the month for which the return is filed; and

(b) The reason for his failure to claim the deduction on the tax return for the month during which the special fuel was sold.

2. A special fuel supplier may not claim a deduction pursuant to subsection 2 of NRS 366.540 more than 90 days after delivery to the purchaser of the special fuel for which the deduction is claimed.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.120 Permit to defer payment: Issuance; application; bond; estimate of fuel to be purchased each month. (NRS 366.110, 366.397)

1. An applicant for a permit issued pursuant to NRS 366.397 to defer payment of the tax on special fuel must file with the Department:

(a) An application on a form prescribed by the Department; and

(b) A bond which satisfies the requirements of subsection 2 of NRS 366.397.

2. The applicant must include in his application an estimate of the number of gallons of special fuel he will purchase each month. The Department will use this information to determine the purchaser’s estimated maximum monthly tax.

3. The Department will fix the amount of the bond required pursuant to this section for an applicant for, or the holder of, a permit to defer payment of the special fuel tax at three times the purchaser’s estimated maximum monthly tax, but not less than $1,000.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.130 Permit to defer payment: Grounds for denial. (NRS 366.110, 366.397) The Department may refuse to issue a permit pursuant to NRS 366.397 to a person:

1. Who fails to answer each question on the application for the permit or to indicate that the questions he does not answer are not applicable to his business;

2. Who submits an application which contains inaccurate information;

3. Who formerly held a license as a special fuel supplier, dealer, wholesale distributor, exporter or importer in this or any other state, the District of Columbia, the United States, its territories or possessions, or any foreign country which, before the time of filing the application, has been cancelled, suspended or revoked for cause;

4. Who applies as a subterfuge for the real party in interest whose license described in subsection 3 has been cancelled, suspended or revoked for cause;

5. Who fails to file a bond pursuant to NAC 366.120;

6. Who is in default in the payment of a tax on special fuel in this or any other state, the District of Columbia, the United States, its territories or possessions, or any foreign country; or

7. Upon other sufficient cause being shown.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.140 Permit to defer payment: Revocation. (NRS 366.110, 366.397)

1. The Department may revoke a permit issued pursuant to NRS 366.397 to a purchaser of special fuel if:

(a) The Department takes action to recover on the purchaser’s bond pursuant to NAC 366.150; or

(b) The Department is notified more than once during an 18-month period that the purchaser has failed to pay the tax on special fuel within the time prescribed in NRS 366.397.

2. Before revoking a permit issued pursuant to NRS 366.397, the Department will send a notice by registered or certified mail to the purchaser at his last known address ordering him to appear before the Department at a time not less than 10 days after the mailing of the notice and show cause why the permit should not be revoked.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.150 Failure of purchaser to pay deferred payment: Notice; hearing; action to recover on bond. (NRS 366.110, 366.397)

1. Upon notification from a special fuel supplier that a purchaser who has been issued a permit pursuant to NRS 366.397 has failed to pay the tax on special fuel within the time prescribed in that section, the Department will send a notice by registered or certified mail to the purchaser at his last known address ordering him to appear at a hearing conducted by the Department not less than 10 days after the mailing of the notice and show cause why the Department should not take action to recover on the purchaser’s bond. The Department will notify the special fuel supplier of the time and place of the hearing conducted pursuant to this subsection.

2. If a purchaser who has been determined to be delinquent in the payment of the tax on special fuel at a hearing conducted pursuant to subsection 1 does not pay the tax and any penalty or interest imposed by the Department within 10 days after the hearing, the Department may take action to recover on the purchaser’s bond.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.155 Supplier to require certain proof from purchaser before selling fuel without collecting taxes. (NRS 366.110, 366.207) For the purposes of NRS 366.207, every special fuel supplier shall require proof that a purchaser is either eligible to defer the payment of or exempt from the payment of taxes imposed pursuant to the provisions of NRS 366.190 before selling to that purchaser any special fuel without collecting the taxes.

(Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

NAC 366.160 Liability of supplier who sells fuel to purchaser whose permit has been revoked. (NRS 366.110, 366.397) If, after receiving a notice from the Department pursuant to subsection 5 of NRS 366.397, a special fuel supplier sells special fuel to a purchaser whose permit to defer payment of the tax on special fuel has been revoked, the special fuel supplier is liable to the Department for the tax on the special fuel sold to the purchaser.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

EXEMPT SPECIAL FUEL

NAC 366.190 Use of dyed fuel: “Federal law” interpreted. (NRS 366.110, 366.203) The Department interprets the term “federal law” as used in NRS 366.203 to mean:

1. 26 U.S.C. § 4041(a)(1);

2. Treas. Reg. § 48.4041-8(b)(2)(i); and

3. Treas. Reg. § 48.4041-8(b)(2)(ii).

(Added to NAC by Dep’t of Motor Veh. by R101-05, eff. 10-31-2005)

REFUND OF TAX PAID ON SPECIAL FUEL USED FOR EXEMPT PURPOSE

NAC 366.200 Submission of spreadsheet or copies of receipts. (NRS 366.110, 366.207, 366.650) A person who wishes to obtain, pursuant to subsection 5 of NRS 366.207, a refund of the tax paid on special fuel which was used for an exempt purpose must submit with his application a spreadsheet or copies of receipts from the person from whom the special fuel was purchased. The spreadsheet or copies or receipts must include:

1. The date on which the special fuel was purchased;

2. The number of gallons of special fuel purchased for an exempt purpose;

3. A statement that the tax imposed by NRS 366.190 was paid to the person from whom the special fuel was purchased; and

4. An explanation as to why clear fuel and not dyed fuel was purchased and used.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001)

NAC 366.210 Fuel consumed off public highways of this State. (NRS 366.110, 366.200, 366.650)

1. A special fuel user who consumes special fuel in the propulsion of a motor vehicle off the public highways of this State may obtain a refund of the tax paid pursuant to NRS 366.190 for that portion of the special fuel purchased which is consumed off the public highways of this State.

2. A special fuel user who requests a refund pursuant to subsection 1 must:

(a) If the motor vehicle is equipped with a computer or other device capable of computing the number of gallons of special fuel consumed off the public highways of this State, submit to the Department the information provided by the computer or other device as evidence of the amount of special fuel consumed off the public highways of this State; or

(b) If the motor vehicle is not equipped with a computer or other device capable of computing the number of gallons of special fuel consumed off the public highways of this State:

(1) Compute the amount of special fuel consumed off the public highways of this State by dividing the number of miles the vehicle was operated off the public highways of this State by the average number of miles traveled per gallon of special fuel consumed by the vehicle; and

(2) Submit to the Department the information necessary to establish to the satisfaction of the Department that the information used to make the computation required by subparagraph (1) is accurate.

3. A special fuel user who wishes to obtain a refund pursuant to this section must submit a request to the Department within 12 months after the date of the payment of the tax.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by Dep’t of Motor Veh. by R101-05, 10-31-2005)

NAC 366.220 Fuel consumed by vehicle with auxiliary equipment. (NRS 366.110, 366.200, 366.207, 366.650)

1. A special fuel user who is the operator of a motor vehicle with auxiliary equipment set forth in this subsection may obtain a refund of the tax paid on the refundable fuel that is used by the motor vehicle on the public highways of this State in the following amounts:

(a) Boom truck with a block boom..........................................................	10 percent
(b) Car carrier with a hydraulic winch.....................................................	10 percent
(c) Dump truck.........................................................................................	23 percent
(d) Garbage truck with a compactor........................................................	20 percent
(e) Line truck with a digger or derrick....................................................	20 percent
(f) Mobile crane.......................................................................................	42 percent
(g) Refrigeration truck.............................................................................	15 percent
(h) Sanitation truck..................................................................................	15 percent
(i) Semi-wrecker truck.............................................................................	35 percent
(j) Service truck with a jackhammer or pneumatic drill.........................	15 percent
(k) Snow plow..........................................................................................	10 percent
(l) Sweeper truck......................................................................................	20 percent
(m) Tank truck other than a truck with a milk or pneumatic tank..........	24 percent
(n) Truck for distributing hot asphalt......................................................	10 percent
(o) Truck with a cement mixer................................................................	30 percent
(p) Truck with a dump trailer...................................................................	15 percent
(q) Truck with a milk tank.......................................................................	30 percent
(r) Truck with a pneumatic tank..............................................................	15 percent
(s) Truck with a pump for cleaning a sewer or cesspool.........................	90 percent
(t) Truck with an aerial lift......................................................................	20 percent
(u) Truck with equipment to move a dumpster or cargo container.........	23 percent

2. To obtain a refund pursuant to this section, a special fuel user must establish to the satisfaction of the Department that:

(a) The tax has been paid on the special fuel for which the special fuel user wishes to obtain a refund; and

(b) The special fuel was used in this State to operate auxiliary equipment that is mounted on the motor vehicle.

3. Except as otherwise provided in NAC 366.230, a vehicle with an air-conditioning unit is not entitled to a refund pursuant to this section.

4. Notwithstanding any provision of this section to the contrary, the amount of a refund allowed for a special fuel user pursuant to this section may not exceed the total amount of taxes paid by the special fuel user for special fuel.

5. As used in this section, “refundable fuel”:

(a) Means the total amount of special fuel purchased by a person during the period specified in subsection 5 of NRS 366.207 for which taxes have been paid pursuant to chapter 366 of NRS, less any amount of that special fuel:

(1) That is claimed by the person for another exempt use;

(2) For which any taxes are remitted to another jurisdiction on behalf of the person; and

(3) That is used during that period for any other taxable use.

(b) Does not include special fuel for which a special fuel user has previously received a refund for credit.

6. A special fuel user who wishes to obtain a refund pursuant to this section must submit a request to the Department within 12 months after the date of the payment of the tax.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R106-01, 12-17-2001; R101-05, 10-31-2005)

NAC 366.230 Undyed fuel used to operate certain vehicles with refrigeration units or air-conditioning units. (NRS 366.110, 366.200, 366.650) A special fuel user who uses undyed special fuel to operate a vehicle with a refrigeration unit or an air-conditioning unit which is equipped with an auxiliary motor and separate fuel tank may obtain a refund of the tax paid pursuant to NRS 366.190 for the special fuel used to operate the refrigeration unit or air-conditioning unit only if the special fuel user provides to the Department a copy of the receipt obtained from the person from whom the special fuel was purchased which states that the fuel was placed in the fuel supply tank for the auxiliary motor and which indicates that the tax was paid.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001)

NAC 366.240 Fuel used to operate vehicle in idle not exempt. (NRS 366.110, 366.200) The use of special fuel to operate a motor vehicle in idle on the public highways of this State is not a use which is exempt from the tax imposed by NRS 366.190.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

RECORDS

NAC 366.300 Records of shipment: Contents. (NRS 366.110, 366.685, 366.692)

1. In addition to the information required by NRS 366.692, a record of shipment provided by a special fuel supplier must include:

(a) The name and address of the carrier of the special fuel;

(b) The date the special fuel was delivered into the motor vehicle, rail car, vessel or pipeline of the carrier of the special fuel;

(c) The type of special fuel delivered into the motor vehicle, rail car, vessel or pipeline of the carrier of the special fuel; and

(d) The name, address and employer identification number of the purchaser of the special fuel.

2. In addition to the information required by subsection 1 and NRS 366.692, if a special fuel supplier delivers special fuel to another special fuel supplier or a purchaser F.O.B. the place of destination, as that term is described in NRS 104.2319, the record of shipment must include:

(a) The address of each location to which the special fuel will be delivered;

(b) The date on which the special fuel will be delivered to each location;

(d) If the special fuel is to be delivered to a person other than the purchaser, the name of that person.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.310 Records of shipment: Compliance with requirement concerning color and concentration of dye. (NRS 366.110, 366.692) A special fuel supplier may comply with the requirement set forth in paragraph (d) of subsection 1 of NRS 366.692 concerning the color and concentration of the dye added to special fuel by attaching to the record of shipment a copy of the notice required by 26 C.F.R. Part 48.4082-2T.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96)

NAC 366.315 Records of exporter: Form and contents. (NRS 366.110, 366.685)

1. The records required to be kept pursuant to NRS 366.685 by a special fuel exporter include, without limitation, records in the form of:

(a) Delivery tickets;

(b) Invoices;

(c) Reports of other states and other jurisdictions regarding the exports of the special fuel exporter to that state or jurisdiction; and

(d) Bills of lading or highway transportation receipts.

2. Any report described in paragraph (c) of subsection 1 must agree with the monthly statement submitted to the Department pursuant to NRS 366.387.

(Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

NAC 366.320 Records of transporter: Form. (NRS 366.110, 366.685) The records required to be kept pursuant to NRS 366.685 by a special fuel transporter include, without limitation, records in the form of:

1. Delivery tickets;

2. Invoices; and

3. Bills of lading or highway transportation receipts.

(Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

INDIAN TRIBES

NAC 366.350 Agreement with governing body of tribe for collection of taxes. (NRS 366.110)

1. The Department may enter into an agreement with the governing body of a tribe to provide for the collection of taxes on taxable sales of special fuel that occur on the reservation of the tribe.

2. An agreement entered into pursuant to subsection 1:

(a) Is valid for the period set forth in the agreement, beginning on the date the agreement is executed; and

(b) Will set forth:

(1) The names and signatures of the parties to the agreement;

(2) The manner in which the taxes must be calculated, including the method to be used to determine the percentage of taxable sales to total sales of special fuel or any other method for allocating the taxes that is agreed upon by the parties;

(3) The method for reevaluating the manner in which the taxes are calculated pursuant to subparagraph (2); and

(4) The manner in which the parties may:

(I) Verify the terms and conditions of the agreement; and

(II) Rescind the agreement.

3. As used in this section, “taxable sale” means a sale of special fuel for which a tax is imposed pursuant to chapter 366 of NRS, other than a sale of special fuel to a governing body or tribal member for exclusive use by the governing body or tribal member.

(Added to NAC by Dep’t of Motor Veh. by R106-01, eff. 12-17-2001)

NAC 366.355 Taxable sales on reservation: Collection of tax by supplier; refund of tax to tribe. (NRS 366.110)

1. If the governing body of a tribe does not enter into an agreement pursuant to NAC 366.350, each special fuel supplier who sells special fuel on the reservation of the tribe shall collect the tax imposed on that sale pursuant to chapter 366 of NRS.

2. If a tribe specified in subsection 1 pays the tax on the sale of special fuel pursuant to chapter 366 of NRS, the tribe may, in the manner prescribed by the Department, apply to the Department for a refund of the tax.

3. In determining the amount of a refund pursuant to subsection 2, the Department will use a method of calculation that is:

(a) Prescribed by the Department; or

(b) Set forth in an agreement entered into pursuant to NAC 366.350.

(Added to NAC by Dep’t of Motor Veh. by R106-01, eff. 12-17-2001)

PENALTIES AND ENFORCEMENT

NAC 366.400 Violation of statute: Imposition, amount and payment of administrative fine. (NRS 366.110, 366.740)

1. Except as otherwise provided in this section, if the Department imposes an administrative fine pursuant to NRS 366.740, the Department will impose that fine for violations occurring within the 3 years immediately preceding the most recent violation according to the following schedule:

(a) For the first offense, an administrative fine of not more than $500.

(b) For the second offense, an administrative fine of not less than $500 or more than $1,000.

(d) For a fourth or subsequent offense, an administrative fine of not less than $1,500 or more than $2,500.

Ê For the purposes of paragraphs (b), (c) and (d), a notice of violation and directive to cease from further violation issued by the Department shall be deemed to be a first offense.

2. If the Department imposes an administrative fine pursuant to NRS 366.740 for a violation of NRS 366.223 or 366.265, the Department will, if the violation is:

(a) A first offense, impose an administrative fine of $500;

(b) A second offense, impose an administrative fine of $1,500;

(d) A fourth or subsequent offense, impose an administrative fine of $2,500.

3. The Department may impose an administrative fine of not less than $1,500 or more than $2,500 for any violation of NRS 366.207 or 366.220, subsection 2 of NRS 366.395 or subsection 3 of NRS 366.685.

4. Unless a person who has been fined pursuant to the provisions of NRS 366.740 requests a hearing pursuant to subsection 2 of that section, the person shall pay the fine to the Department not later than the date specified in the notice of violation.

5. Upon the failure of a person to pay an administrative fine imposed pursuant to this section when the fine becomes due, the Department may suspend, revoke or refuse to issue a license to that person pursuant to the provisions of this chapter.

(Added to NAC by Dep’t of Motor Veh. & Pub. Safety, eff. 3-28-96; A by R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R008-06, 5-4-2006)

NAC 366.410 Misuse or alteration of dyed special fuel: Imposition, amount, reduction and payment of administrative fine; suspension or revocation of license. (NRS 366.110, 366.735)

1. Except as otherwise provided in this section, if the Department imposes an administrative fine pursuant to NRS 366.735, the Department will impose that fine for violations occurring within the 4 years immediately preceding the most recent violation according to the following schedule:

(a) For a first offense, an administrative fine of $2,500 and may suspend any license issued to the person pursuant to chapter 366 of NRS for not more than 30 days;

(b) For a second offense, an administrative fine of $5,000 and may suspend any license issued to the person pursuant to chapter 366 of NRS for not more than 60 days; or

(c) For a third or subsequent offense, an administrative fine of $10,000 and may revoke any license issued to the person pursuant to chapter 366 of NRS for not more than 1 year.

2. If the Department imposes an administrative fine specified in subsection 1 and the person against whom the fine is imposed submits evidence satisfactory to the Department establishing just cause for reducing the amount of the administrative fine, the Department may reduce the administrative fine to an amount that is equal to, if the violation is:

(a) A first offense, $1,000 or more but less than $2,500;

(b) A second offense, $2,500 or more but less than $5,000; or

3. A person who has been fined pursuant to NRS 366.735 shall pay the fine to the Department not later than the date specified in the notice of violation, unless he requests a hearing pursuant to subsection 2 of NRS 366.740.

4. In addition to any action taken pursuant to subsection 1, upon the failure of a person to pay an administrative fine imposed pursuant to this section when it becomes due, the Department may revoke or refuse to issue a license to that person pursuant to chapter 366 of NRS.

(Added to NAC by Dep’t of Motor Veh. by R008-06, eff. 5-4-2006)

NAC 366.420 Failure of seller or distributor to control access to dyed special fuel: Imposition, amount and payment of administrative fine. (NRS 366.110, 366.733)

1. Except as otherwise provided in this section, if the Department imposes an administrative fine pursuant to NRS 366.733, the Department will impose that fine for violations occurring within the 3 years immediately preceding the most recent violation according to the following schedule:

(a) For a first offense, an administrative fine of not less than $2,500 and not more than $10,000.

(b) For a second or subsequent offense, an administrative fine of $10,000.

2. A person who has been fined pursuant to NRS 366.733 shall pay the fine to the Department not later than the date specified in the notice of violation, unless he requests a hearing pursuant to subsection 2 of NRS 366.740.

3. Upon the failure of a person to pay an administrative fine imposed pursuant to this section or to pay any tax imposed pursuant to chapter 366 of NRS when the administrative fine or tax becomes due, the Department may:

(a) Lock and seal the business of the person pursuant to NRS 360A.365; or

(b) Revoke or refuse to issue a license to that person pursuant to chapter 366 of NRS.

(Added to NAC by Dep’t of Motor Veh. by R008-06, eff. 5-4-2006)