[Rev. 11/21/2013 4:16:22 PM--2013]

[NAC-368A Revised Date: 10-06]

CHAPTER 368A - TAX ON LIVE ENTERTAINMENT

ADMINISTRATION OF TAX BY DEPARTMENT OF TAXATION

368A.010         Definitions.

368A.030         “Commission” defined.

368A.040         “Department” defined.

368A.060         “Live entertainment status” defined.

368A.070         “Nonprofit organization” defined.

368A.080         “Patron” defined.

368A.090         “Taxpayer” defined.

368A.100         Interpretation of certain statutory terms.

368A.110         Taxpayers: General requirements.

368A.120         Applicability of tax: Live entertainment status; sale of food, refreshments or merchandise.

368A.130         Determination of tax rate when maximum occupancy has not been designated.

368A.140         Computation of tax; inclusion of tax in sales price of food, refreshments or merchandise.

368A.150         Scope of exemption for nonprofit organizations; assessment and computation of tax by Department.

368A.160         Documentation required for exemption of nonprofit organization.

368A.170         Over-collection of tax: Duties of taxpayer and Department.

ADMINISTRATION OF TAX BY STATE GAMING CONTROL BOARD

368A.300         Definitions.

368A.310         “Board” defined.

368A.320         “Chairman” defined.

368A.330         “Live entertainment status” defined.

368A.340         “Nonprofit organization” defined.

368A.350         “Nonrestricted license” defined.

368A.360         “Package” defined.

368A.370         “Patron” defined.

368A.380         “Restricted license” defined.

368A.390         “Taxpayer” defined.

368A.400         Interpretation of certain statutory terms.

368A.410         Applicability of tax: Live entertainment status; dinner show.

368A.420         Applicability of tax: Particular circumstances.

368A.430         Applicability of tax: When merchandise is deemed to be sold inside facility.

368A.440         Determination of tax rate when maximum occupancy has not been designated.

368A.450         Computation of amount of tax due.

368A.460         Inclusion of tax in price of ticket: Form of required statement.

368A.470         Scope of exemption for nonprofit organizations; assessment and computation of tax by Board.

368A.480         Documentation required for exemption of nonprofit organization.

368A.490         Responsibilities of persons licensed to conduct gaming: Payment of tax; records; reports.

368A.500         Maintenance and availability of records of taxpayers.

368A.510         Procedures for internal control.

368A.520         Refund of overpayment of taxes.

368A.530         Penalty for evasion or nonpayment of tax.

368A.540         Violation constitutes unsuitable method of operation.

 

 

 

ADMINISTRATION OF TAX BY DEPARTMENT OF TAXATION

      NAC 368A.010  Definitions. (NRS 360.090, 368A.140)  As used in NAC 368A.010 to 368A.170, inclusive, unless the context otherwise requires, the words and terms defined in NAC 368A.030 to 368A.090, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003; A by R196-05, 2-23-2006)

      NAC 368A.030  “Commission” defined. (NRS 360.090, 368A.140)  “Commission” means the Nevada Tax Commission.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.040  “Department” defined. (NRS 360.090, 368A.140)  “Department” means the Department of Taxation.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.060  “Live entertainment status” defined. (NRS 360.090, 368A.140)  “Live entertainment status” means that condition which renders the admission to a facility or the selling of food, refreshments or merchandise subject to the tax imposed by chapter 368A of NRS.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.070  “Nonprofit organization” defined. (NRS 360.090, 368A.140)  “Nonprofit organization” means any organization described in paragraph (a) of subsection 2 of NRS 368A.200 or paragraph (b) of subsection 5 of that section.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003; A by R196-05, 2-23-2006)

      NAC 368A.080  “Patron” defined. (NRS 360.090, 368A.140)  “Patron” means a person who gains access to a facility where live entertainment is provided and who neither solicits nor receives, from any source, any payment, reimbursement, remuneration or other form of consideration for providing live entertainment at the facility.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.090  “Taxpayer” defined. (NRS 360.090, 368A.140)  “Taxpayer” means any person described in NRS 368A.110.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.100  Interpretation of certain statutory terms. (NRS 360.090, 368A.140)  For the purposes of chapter 368A of NRS, the Commission will interpret the term:

     1.  “Boxing contest or exhibition” to have the meaning ascribed in NRS 467.0107 to the term “unarmed combat.”

     2.  “Facility” to encompass any area or premises where live entertainment is provided and for which consideration is collected, from one or more patrons, for the right or privilege of entering that area or those premises, even if additional consideration is collected for the right or privilege of entering a smaller venue within that area or those premises.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003; A by R196-05, 2-23-2006)

      NAC 368A.110  Taxpayers: General requirements. (NRS 360.090, 368A.140)

     1.  If a taxpayer intends to provide live entertainment at a facility that is not a licensed gaming establishment, the taxpayer shall register with the Department to collect the tax. The taxpayer shall thereafter collect and remit the tax to the Department in accordance with the provisions of this chapter and chapter 368A of NRS.

     2.  If a taxpayer intends to provide live entertainment at a facility that is a licensed gaming establishment, the taxpayer shall act in accordance with such regulations as may be prescribed by the Nevada Gaming Commission.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003; A by R196-05, 2-23-2006)

      NAC 368A.120  Applicability of tax: Live entertainment status; sale of food, refreshments or merchandise. (NRS 360.090, 368A.140)

     1.  Live entertainment status commences when any patron is required to pay an admission charge before he is allowed to enter a facility, regardless of when the live entertainment actually commences.

     2.  Live entertainment status ceases at the later of:

     (a) The conclusion of the live entertainment; or

     (b) The time when a facility for which an admission charge was required is completely vacated by admitted patrons or is opened to the general public free of any admission charge.

     3.  The tax applies to the sale of food, refreshments or merchandise at a facility with a seating capacity of less than 7,500, even if patrons are unable to see, hear or enjoy live entertainment from the location within the facility where the food, refreshments or merchandise is sold.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.130  Determination of tax rate when maximum occupancy has not been designated. (NRS 360.090, 368A.140)  For the purposes of paragraph (c) of subsection 7 of NRS 368A.200, if there is no governmental permit designating the maximum occupancy of a facility where live entertainment is provided, the Department shall compute the tax rate on the presumption that the actual seating capacity of the facility is at least 200 persons and less than 7,500 persons. To rebut this presumption, the taxpayer must establish, to the reasonable satisfaction of the Department, that the actual seating capacity of the facility is less than 200 persons or at least 7,500 persons. In determining whether the taxpayer has successfully rebutted the presumption, the Department shall consider all evidence provided by the taxpayer, including, without limitation, evidence of actual attendance, the number of tickets sold or offered for sale, the square footage of the facility, the physical needs or requirements of the patrons in relation to the nature of the live entertainment provided and any other evidence tending to establish the actual seating capacity of the facility.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003; A by R196-05, 2-23-2006)

      NAC 368A.140  Computation of tax; inclusion of tax in sales price of food, refreshments or merchandise. (NRS 360.090, 368A.140)

     1.  Pursuant to the provisions of subsection 4 of NRS 368A.200, the Department shall apply the tax rate to the total admission charge less the sum of any tax imposed by the United States upon or with respect to an admission charge to live entertainment, whether imposed upon the taxpayer or the patron.

     2.  The Department shall apply the tax rate to the gross receipts from the sale of food, refreshments or merchandise at a facility where live entertainment is provided. As used in this section, “gross receipts” has the meaning ascribed to it in NRS 372.025, except that “gross receipts” will not be construed to include the amount of any tax imposed by this State or a political subdivision upon or with respect to retail sales of tangible personal property.

     3.  If applicable, a taxpayer may include the excise tax in the sales price of food, refreshments or merchandise sold at a facility where live entertainment is provided, but if he does so, he shall notify the patrons of the facility by posting a sign which is visible to all purchasers of food, refreshments or merchandise which states that the excise tax is included in the sales price. In the absence of such a notification, the total amount charged to the patron shall be deemed to be the price of the item.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.150  Scope of exemption for nonprofit organizations; assessment and computation of tax by Department. (NRS 360.090, 368A.140)

     1.  For the purposes of paragraph (b) of subsection 5 of NRS 368A.200, live entertainment is provided by or entirely for the benefit of a nonprofit organization if the proceeds of the admission charges to the facility where the live entertainment is provided become the property of the nonprofit organization. The proceeds of the admission charges do not become the property of a person other than a nonprofit organization as long as the person retains not more of the proceeds than is necessary to cover the direct, supportable costs of hosting, promoting or sponsoring the event at which the live entertainment is provided.

     2.  Subject to the provisions of subsection 1, a nonprofit organization providing live entertainment, or a person providing live entertainment entirely for the benefit of a nonprofit organization, incurs no liability for the excise tax on entertainment if the nonprofit organization or person contracts for goods or services with a person other than a nonprofit organization, even if the proceeds from the sale of food, refreshments or merchandise do not become the property of the nonprofit organization.

     3.  If live entertainment is provided by or entirely for the benefit of a nonprofit organization, there will be no tax on amounts paid for food, refreshments or merchandise sold within the facility where the live entertainment is provided, even if the proceeds from the sale of food, refreshments or merchandise do not become the property of the nonprofit organization.

     4.  Unless live entertainment is provided by or entirely for the benefit of a nonprofit organization, and except as otherwise provided in this chapter or chapter 368A of NRS, the Department shall assess and compute the excise tax in accordance with NAC 368A.140.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

      NAC 368A.160  Documentation required for exemption of nonprofit organization. (NRS 360.090, 368A.140)  Any person who claims to be a nonprofit organization exempt from the provisions of NRS 368A.200, or any person who claims to provide live entertainment entirely for the benefit of such a nonprofit organization, shall, upon the request of the Department, provide to the Department such records as the Department deems necessary to demonstrate that the person who claims to be a nonprofit organization or the organization for whose benefit the person provided live entertainment:

     1.  Meets the criteria to qualify as a religious organization pursuant to 26 U.S.C. § 501(c) and any federal regulations relating thereto;

     2.  Has qualified as a tax-exempt organization pursuant to 26 U.S.C. § 501(c); or

     3.  Is organized or existing under the provisions of chapter 82 of NRS.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003; A by R196-05, 2-23-2006)

      NAC 368A.170  Over-collection of tax: Duties of taxpayer and Department. (NRS 360.090, 368A.140)

     1.  As used in this section, “over-collection” means any amount collected as a tax on live entertainment that is exempt from taxation pursuant to subsection 5 of NRS 368A.200, or any amount in excess of the amount of the applicable tax as computed in accordance with subsections 1 to 4, inclusive, of NRS 368A.200.

     2.  Any over-collection must, if possible, be refunded by the taxpayer to the patron from whom it was collected.

     3.  A taxpayer shall:

     (a) Use all practical methods to determine any amount to be refunded pursuant to subsection 2 and the name and address of the person to whom the refund is to be made.

     (b) Within 60 days after reporting to the Department that a refund must be made, make an accounting to the Department of all refunds paid. The accounting must be accompanied by any supporting documents required by the Department.

     4.  If a taxpayer is unable for any reason to refund an over-collection, the taxpayer shall pay the over-collection to the Department.

     5.  If an audit of a taxpayer reveals the existence of an over-collection, the Department shall:

     (a) Credit the over-collection toward any deficiency that results from the audit, if the taxpayer furnishes the Department with satisfactory evidence that the taxpayer has refunded the over-collection as required by subsection 2.

     (b) Within 60 days after receiving notice from the Department that a refund must be made, seek an accounting of all refunds paid. The accounting must be accompanied by any supporting documents required by the Department.

     (Added to NAC by Tax Comm’n by R212-03, eff. 12-4-2003)

ADMINISTRATION OF TAX BY STATE GAMING CONTROL BOARD

      NAC 368A.300  Definitions. (NRS 368A.140)  As used in NAC 368A.300 to 368A.540, inclusive, unless the context otherwise requires, the words and terms defined in NAC 368A.310 to 368A.390, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.310  “Board” defined. (NRS 368A.140)  “Board” means the State Gaming Control Board.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.320  “Chairman” defined. (NRS 368A.140)  “Chairman” means the Chairman of the Board or a person designated by him.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.330  “Live entertainment status” defined. (NRS 368A.140)  “Live entertainment status” means that condition which renders the selling of food, refreshments or merchandise subject to the tax imposed by chapter 368A of NRS.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.340  “Nonprofit organization” defined. (NRS 368A.140)  “Nonprofit organization” means any organization described in paragraph (b) of subsection 5 of NRS 368A.200.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.350  “Nonrestricted license” defined. (NRS 368A.140)  “Nonrestricted license” has the meaning ascribed to it in NRS 463.0177.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.360  “Package” defined. (NRS 368A.140)  “Package” means any aggregation of rights to rooms, food, refreshments, merchandise, entertainment, services or other items which is advertised to the public as a single unit and sold for a single price.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.370  “Patron” defined. (NRS 368A.140)  “Patron” means a person who gains access to a facility where live entertainment is provided and who neither solicits nor receives, from any source, any payment, reimbursement, remuneration or other form of consideration for providing live entertainment at the facility.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.380  “Restricted license” defined. (NRS 368A.140)  “Restricted license” has the meaning ascribed to it in NRS 463.0189.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.390  “Taxpayer” defined. (NRS 368A.140)  “Taxpayer” means any person described in subsection 1 of NRS 368A.110.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.400  Interpretation of certain statutory terms. (NRS 368A.140)  For the purposes of chapter 368A of NRS, the Board will interpret the term:

     1.  “Admission charge” to include, without limitation, an entertainment fee, a cover charge, a table reservation fee, or a required minimum purchase of food, refreshments or merchandise.

     2.  “Boxing contest or exhibition” to have the meaning ascribed in NRS 467.0107 to the term “unarmed combat.”

     3.  “Casual assemblage” to include, without limitation:

     (a) Participants in conventions, business meetings or tournaments governed by chapter 463 of NRS, and their guests; or

     (b) Persons celebrating a friend’s or family member’s wedding, birthday, anniversary, graduation, religious ceremony or similar occasion that is generally recognized as customary for celebration.

     4.  “Facility” to encompass, if live entertainment is provided at a licensed gaming establishment that is licensed for:

     (a) Less than 51 slot machines, less than 6 games, or any combination of slot machines and games within those respective limits, any area or premises where the live entertainment is provided and for which consideration is collected, from one or more patrons, for the right or privilege of entering that area or those premises, even if additional consideration is collected for the right or privilege of entering a smaller venue within that area or those premises; or

     (b) At least 51 slot machines or at least 6 games, any designated area on the premises of the licensed gaming establishment within which the live entertainment is provided.

     5.  “Live entertainment” in the same manner as that term is interpreted pursuant to subsection 5 of NAC 368A.100. For the purposes of that subsection, the Board will interpret the term “recorded music” to include, without limitation, music on a cassette tape, compact disc, phonograph album, or video tape or disc, or on live television.

     6.  “Shopping mall” to include any area or premises where multiple vendors assemble for the primary purpose of selling goods or services, regardless of whether consideration is collected for the right or privilege of entering that area or those premises.

     7.  “Trade show” to mean an event of limited duration primarily attended by members of a particular trade or industry for the purpose of exhibiting their merchandise or services or discussing matters of interest to members of that trade or industry.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.410  Applicability of tax: Live entertainment status; dinner show. (NRS 368A.140)

     1.  Live entertainment status:

     (a) Commences at the earlier of:

          (1) The time when taxable live entertainment commences; or

          (2) The time when any patron is required to pay an admission charge before the patron is allowed to enter a facility; and

     (b) Ceases at the later of:

          (1) The conclusion of the last performance of the taxable live entertainment; or

          (2) The time when a facility for which an admission charge was required is completely vacated by admitted patrons or is opened to the general public free of any admission charge.

     2.  For the purposes of this section, there is no distinction between any period of dining and any period of entertainment at a restaurant of a licensed gaming establishment which is not open on a continual time schedule and where live entertainment is provided and advertised as a dinner show.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.420  Applicability of tax: Particular circumstances. (NRS 368A.140)

     1.  Except as otherwise provided in NRS 368A.200, the tax imposed by that section:

     (a) Applies to an admission charge for a patron regardless of whether the patron is present for any portion of the live entertainment.

     (b) Applies to each sale of a ticket that affords a patron the right to be present for any taxable live entertainment, unless the taxpayer establishes that the patron has received a full refund of the amount paid for the ticket.

     (c) Except as otherwise provided in paragraph (d), applies to the sale of food, refreshments and merchandise at a facility that operates under a continual time schedule with no admission charge, if the food, refreshments or merchandise are ordered while the facility is in live entertainment status.

     (d) Applies to the sale of food, refreshments and merchandise at a facility which are ordered or purchased during an interval between performances of live entertainment at the facility, unless the taxpayer accounts separately for the volume of sales to persons who enter the facility during such an interval and leave the facility before the commencement of the next performance of live entertainment.

     (e) Applies to the sale of food and refreshments at a facility which are ordered before the facility enters into live entertainment status if the sale is completed after the facility enters into live entertainment status, unless the taxpayer identifies through its recordkeeping system the amount paid for food and refreshments ordered before the facility enters into live entertainment status.

     (f) Applies to the sale of food and refreshments at a location in close proximity to a facility if the primary purpose of the location is to provide food or refreshments to the patrons of that facility who view the live entertainment provided at that facility.

     (g) Applies, if an admission charge:

          (1) Is collected for access to a facility and payment of the admission charge entitles a patron to enter an area of the facility where live entertainment is provided, to the sale of food, refreshments and merchandise at any location within the facility to which the patron has access as a result of the payment of the admission charge, regardless of whether the patron can clearly hear or see the live entertainment from the location within the facility where the food, refreshments or merchandise is sold.

          (2) Is not collected for access to a facility, to the sale of food, refreshments and merchandise at any location within the facility, unless the taxpayer identifies through its recordkeeping system the sales to patrons who are unable to see or hear the live entertainment from the location within the facility where the food, refreshments or merchandise is sold.

     2.  As used in this section, “facility” means a facility where live entertainment is provided which has a maximum seating capacity of less than 7,500.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.430  Applicability of tax: When merchandise is deemed to be sold inside facility. (NRS 368A.140)  For the purposes of NRS 368A.200, merchandise shall be deemed to be sold inside a facility where live entertainment is provided if:

     1.  The purchase of a ticket or the payment of an admission fee, a cover charge, a minimum fee, or a similar charge or fee is required for a patron to gain access to the merchandise being sold; or

     2.  The merchandise is located in the area where the live entertainment is provided.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.440  Determination of tax rate when maximum occupancy has not been designated. (NRS 368A.140)  For the purposes of paragraph (c) of subsection 7 of NRS 368A.200, if there is no governmental permit designating the maximum occupancy of a facility where live entertainment is provided, the Board will compute the tax rate on the presumption that the actual seating capacity of the facility is at least 300 and less than 7,500. To rebut this presumption, the taxpayer must establish, to the reasonable satisfaction of the Board, that the actual seating capacity of the facility is less than 300 or 7,500 or more. In determining whether the taxpayer has successfully rebutted the presumption, the Board will consider all evidence provided by the taxpayer, including, without limitation, evidence of actual attendance, the number of tickets sold or offered for sale, the square footage of the facility, the physical needs or requirements of the patrons in relation to the nature of the live entertainment provided and any other evidence tending to establish the actual seating capacity of the facility.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.450  Computation of amount of tax due. (NRS 368A.140)  For purposes of computing the amount of the tax due pursuant to chapter 368A of NRS:

     1.  The tax rate must be applied to the total amounts paid for taxable admission charges and taxable sales of food, refreshments and merchandise, excluding the amount of any federal, state or local taxes included in those payments.

     2.  The tax must be paid on all taxable sales of food, refreshments and merchandise while a facility is in live entertainment status and on all taxable admission charges, regardless of whether the taxable amounts are paid in cash or through an extension of credit. Any required minimum purchases of food, refreshments or merchandise must be accounted for solely:

     (a) As part of the total amount paid for taxable admission charges; or

     (b) As part of the total amount paid for taxable sales of food, refreshments and merchandise.

     3.  The amount of any service charges imposed in connection with the use of credit cards or debit cards which is excluded from taxation pursuant to subsection 2 of NRS 368A.200, must be determined from the actual amount collected and retained by persons other than the taxpayer and not from an estimate of that amount.

     4.  If any taxable tickets for live entertainment are sold by a person who:

     (a) Is not an affiliate of:

          (1) The person licensed to conduct gaming at the facility where the live entertainment is provided; or

          (2) The operator of the facility where the live entertainment is provided,

Ê the tax must be paid on the portion of the proceeds of those sales which are remitted to the person licensed to conduct gaming at, or the operator of, the facility where the live entertainment is provided.

     (b) Is an affiliate of:

          (1) The person licensed to conduct gaming at the facility where the live entertainment is provided; or

          (2) The operator of the facility where the live entertainment is provided,

Ê the tax must be paid on all the proceeds of those sales.

     5.  Subject to the provisions of subsection 4 of NRS 368A.200, the tax on any taxable ticket for live entertainment or ticket redeemable for taxable food or refreshments sold as a component of a package must be computed in accordance with the following provisions:

     (a) Except as otherwise provided in paragraphs (b) and (c):

          (1) The average retail value of the ticket must be prorated against the average retail value of all the components of the package, and the tax must be paid on the sum obtained by multiplying the resulting prorated fraction by the actual price paid for the package.

          (2) Any value advertised to the public as the retail value of a component of a package is rebuttably presumed to constitute the actual retail value of that component.

          (3) If no average retail value can be established for a component of a package, the cost of the component to the taxpayer must be used to carry out subparagraph (1).

     (b) The tax on any ticket redeemable for taxable food or refreshments with an average retail value of less than $5 must be computed on the full retail value of the ticket and not as a component of a package.

     (c) This subsection does not prohibit a taxpayer from paying, at the option of the taxpayer, the tax on the full retail value of the taxable components of a package.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.460  Inclusion of tax in price of ticket: Form of required statement. (NRS 368A.140)  The statement required by subsection 4 of NRS 368A.200 must be substantially in one of the following forms:

     1.  Includes Entertainment Tax;

     2.  Inc. Ent. Tax;

     3.  Includes Live Ent. Tax; or

     4.  L.E.T. included.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.470  Scope of exemption for nonprofit organizations; assessment and computation of tax by Board. (NRS 368A.140)

     1.  For the purposes of paragraph (b) of subsection 5 of NRS 368A.200, live entertainment is provided by or entirely for the benefit of a nonprofit organization if the proceeds of the admission charges to the facility where the live entertainment is provided become the property of the nonprofit organization. The proceeds of the admission charges do not become the property of a person other than a nonprofit organization as long as the person retains not more of the proceeds than is necessary to cover the direct, supportable costs of hosting, promoting or sponsoring the event at which the live entertainment is provided.

     2.  Subject to the provisions of subsection 1, a nonprofit organization providing live entertainment, or a person providing live entertainment entirely for the benefit of a nonprofit organization, incurs no liability for the excise tax on live entertainment if the nonprofit organization or person contracts for goods or services with a person other than a nonprofit organization, even if the proceeds from the sale of food, refreshments or merchandise do not become the property of the nonprofit organization.

     3.  If live entertainment is provided by or entirely for the benefit of a nonprofit organization, there will be no tax on amounts paid for food, refreshments or merchandise sold within the facility where the live entertainment is provided, even if the proceeds from the sale of food, refreshments or merchandise do not become the property of the nonprofit organization.

     4.  Unless live entertainment is provided by or entirely for the benefit of a nonprofit organization, and except as otherwise provided in this chapter or chapter 368A of NRS, the Board will assess and compute the excise tax in accordance with NAC 368A.450.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.480  Documentation required for exemption of nonprofit organization. (NRS 368A.140)  Any person who claims to be a nonprofit organization exempt from the provisions of NRS 368A.200, or any person who claims to provide live entertainment entirely for the benefit of such a nonprofit organization, shall, upon the request of the Board:

     1.  If the person does not claim to be an exempt religious organization, provide to the Board documentation from the Internal Revenue Service deemed appropriate by the Board indicating that the person has qualified as a tax-exempt organization pursuant to 26 U.S.C. § 501(c); or

     2.  If the person claims to be an exempt religious organization, or claims to have provided live entertainment entirely for the benefit of an exempt religious organization, provide to the Board such records as the Board deems necessary to demonstrate that the person or the organization for whose benefit the person provided live entertainment meets the criteria to qualify as a religious organization pursuant to 26 U.S.C. § 501(c) and any federal regulations relating thereto.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.490  Responsibilities of persons licensed to conduct gaming: Payment of tax; records; reports. (NRS 368A.140, 368A.160)

     1.  If live entertainment that is taxable under chapter 368A of NRS is provided at a licensed gaming establishment, the person licensed to conduct gaming at that establishment is responsible for the payment of the tax, even if another person is affording that entertainment. In such a case, the person licensed to conduct gaming at that establishment is responsible for collecting the tax from the person affording that entertainment and for remitting the tax based upon the records of the person affording that entertainment.

     2.  If live entertainment that is taxable under chapter 368A of NRS is provided at a facility within a licensed gaming establishment in connection with any sale of food, refreshments or merchandise that is taxable under chapter 368A of NRS, and the facility is not operated by the person licensed to conduct gaming at that establishment, that person shall:

     (a) Keep all pertinent records required by NRS 368A.160, chapter 463 of NRS and Regulation 6 of the Nevada Gaming Commission and State Gaming Control Board; and

     (b) Obtain and keep, or require the person that operates that facility to obtain and keep, any other pertinent records required by NAC 368A.300 to 368A.540, inclusive.

     3.  If live entertainment that is taxable under chapter 368A of NRS is provided at a facility within a shopping mall on the premises of a licensed gaming establishment and the shopping mall is owned by the person licensed to conduct gaming at that establishment, or by an affiliate of that person, the person licensed to conduct gaming at that establishment is responsible for the payment of the tax and shall include all taxable amounts in the reports required by NRS 368A.220.

     4.  Each person that holds:

     (a) A nonrestricted license shall file with the Board, on or before the 24th day of each month, a report pursuant to NRS 368A.220, showing the amount of all receipts for the preceding month which are taxable pursuant to chapter 368A of NRS.

     (b) A restricted license shall file with the Board, on or before the 10th day of the month following each calendar quarter, a report pursuant to NRS 368A.220, showing the amount of all receipts for the preceding calendar quarter which are taxable pursuant to chapter 368A of NRS.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.500  Maintenance and availability of records of taxpayers. (NRS 368A.140, 368A.160)  A taxpayer shall:

     1.  Record all sales which are taxable pursuant to chapter 368A of NRS in a manner that reflects the amount of each taxable sale, unless the taxpayer uses an alternative accounting procedure approved by the Chairman.

     2.  Keep records evidencing any exemption from the tax imposed by chapter 368A of NRS of live entertainment provided at the licensed gaming establishment of the taxpayer.

     3.  Make its records available for audit by the Board at any reasonable time.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.510  Procedures for internal control. (NRS 368A.140)

     1.  Each:

     (a) Group I licensee that provides live entertainment shall:

          (1) Include in its system of internal control, submitted pursuant to Regulation 6.090 of the Nevada Gaming Commission and State Gaming Control Board, a description of the procedures adopted by the licensee to comply with NAC 368A.300 to 368A.540, inclusive; and

          (2) Comply with that system of internal control and any minimum standards for internal control for entertainment adopted by the Chairman pursuant to Regulation 6.090 of the Nevada Gaming Commission and State Gaming Control Board.

     (b)  Group II licensee that provides live entertainment and each taxpayer that holds a restricted license shall comply with any procedures for internal control for entertainment adopted by the Chairman pursuant to Regulation 6.100 of the Nevada Gaming Commission and State Gaming Control Board.

Ê Except as otherwise approved in writing by the Chairman, a taxpayer shall not carry out any procedures for internal control that deviate from any standards or procedures for internal control for entertainment adopted and published by the Chairman.

     2.  Each group I licensee that provides live entertainment shall direct its independent accountant to perform observations, examinations of documents and inquiries of employees, using any applicable guidelines, checklists and other criteria established by the Chairman, to determine compliance with the requirements for entertainment. The independent accountant shall report his findings as part of the report required by subsection 9 of Regulation 6.090 of the Nevada Gaming Commission and State Gaming Control Board.

     3.  The internal auditor of each group I licensee that provides live entertainment shall:

     (a) Using any applicable guidelines, checklists and other criteria established by the Chairman, perform observations, examinations of documents and inquiries of employees to determine compliance with the requirements for entertainment.

     (b) Submit to the Board within 120 days after the last day of the first 6 months of the business year of the licensee two copies of a report by the internal auditor summarizing all instances of noncompliance with the requirements for entertainment during the first 6 months of the business year of the licensee and any applicable responses by the management of the licensee, including any work required to be performed during the reporting period and any additional procedures that were performed.

     (c) Unless the instances of noncompliance are to be disclosed in the report submitted by the independent accountant for the licensee pursuant to subsection 9 of Regulation 6.090 of the Nevada Gaming Commission and State Gaming Control Board, submit to the Board within 120 days after the last day of the final 6 months of the business year of the licensee two copies of a report by the internal auditor summarizing all instances of noncompliance with the requirements for entertainment during the final 6 months of the business year of the licensee and any applicable responses by the management of the licensee, including any work required to be performed during the reporting period and any additional procedures that were performed.

     4.  As used in this section:

     (a) “Group I licensee” and “group II licensee” have the meanings ascribed to those terms in Regulation 6.010 of the Nevada Gaming Commission and State Gaming Control Board.

     (b) “Requirements for entertainment” means the provisions of NAC 368A.300 to 368A.540, inclusive, chapter 368A of NRS and any minimum standards for internal control for entertainment adopted by the Chairman.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.520  Refund of overpayment of taxes. (NRS 368A.140)  The provisions of NRS 463.387 shall be deemed to apply to a claim pursuant to NRS 368A.260 by a taxpayer for the refund of any overpayment of taxes, except that:

     1.  The claim must be filed within 3 years after the last day of the month following the reporting period for which the overpayment was made; and

     2.  No interest will be allowed on the overpayment if the Board determines that the overpayment was made intentionally or by reason of carelessness.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.530  Penalty for evasion or nonpayment of tax. (NRS 368A.140)  Any taxpayer liable for the payment of the tax imposed by chapter 368A of NRS who willfully fails to report, pay or truthfully account for the tax is liable for a penalty in the amount of the tax evaded or not paid, to be assessed and collected in the same manner as charges, taxes, licenses and penalties are assessed and collected pursuant to chapter 463 of NRS.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)

      NAC 368A.540  Violation constitutes unsuitable method of operation. (NRS 368A.140)  A violation of any of the provisions of NAC 368A.300 to 368A.540, inclusive, or chapter 368A of NRS constitutes an unsuitable method of operation subjecting a licensed gaming establishment to the suspension or revocation of its gaming license.

     (Added to NAC by Gaming Control Bd. by R223-03, 2-25-2004, eff. 1-1-2004)