Senate Bill No. 509–Committee on Finance

 

June 2, 2003

____________

 

Referred to Committee on Finance

 

SUMMARY—Provides revenue in support of state budget. (BDR 32‑1382)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to state financial administration; providing for the imposition and administration of state taxes on business entities and financial institutions for the privilege of doing business in this state; imposing a tax on the admission charge to a place where live entertainment is provided; revising the taxes on liquor and cigarettes; imposing a state tax on the transfer of real property; revising the fees charged for certain gaming licenses; establishing the Legislative Committee on Taxation, Public Revenue and Tax Policy; requiring the Department of Education to prescribe a minimum amount of money that each school district must expend each year for textbooks, instructional supplies and instructional hardware; apportioning the State Distributive School Account in the State General Fund for the 2003-2005 biennium; authorizing certain expenditures; making an appropriation; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

2-1  Section 1. Title 32 of NRS is hereby amended by adding

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

2-3  sections 2 to 38, inclusive, of this act.

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

2-5  requires, the words and terms defined in sections 3 to 11,

2-6  inclusive, of this act have the meanings ascribed to them in those

2-7  sections.

2-8  Sec. 3.  “Business” means any activity engaged in or caused

2-9  to be engaged in with the object of gain, benefit or advantage,

2-10  either direct or indirect, to any person or governmental entity.

2-11      Sec. 4.  1.  “Business entity” includes:

2-12      (a) A corporation, partnership, proprietorship, limited-liability

2-13  company, business association, joint venture, limited-liability

2-14  partnership, business trust and their equivalents organized under

2-15  the laws of another jurisdiction and any other person engaging in

2-16  a business; and

2-17      (b) A natural person engaging in a business if he is deemed to

2-18  be a business entity pursuant to section 17 of this act.

2-19      2.  The term includes an independent contractor.

2-20      3.  The term does not include a governmental entity.

2-21      Sec. 5.  “Commission” means the Nevada Tax Commission.

2-22      Sec. 6.  “Engaging in a business” means commencing,

2-23  conducting or continuing a business, the exercise of corporate or

2-24  franchise powers regarding a business, and the liquidation of a

2-25  business entity which is or was engaging in a business when the

2-26  liquidator holds itself out to the public as conducting that

2-27  business.

2-28      Sec. 7. 1.  “Gross profit” means:

2-29      (a) Except as otherwise provided in paragraph (b), the total

2-30  revenue of a business entity in this state minus the cost of the

2-31  goods sold by the business entity, the proceeds of which are

2-32  included in the total revenue of the business entity in this state; or

2-33      (b) If a business consists of the production of tangible personal

2-34  property, the value of the products of the business entity, as

2-35  determined pursuant to section 18 of this act, minus the cost of

2-36  any goods produced by the business entity, the value of which are

2-37  included in that determination.

2-38      2.  For the purposes of this section, the cost of the goods:

2-39      (a) Includes:

2-40          (1) The cost of materials used in the production of goods by

2-41  the business entity; and

2-42          (2) The cost of goods purchased for resale; and

2-43      (b) Excludes, without limitation, the cost of direct labor,

2-44  indirect labor, overhead expenses, rent, utilities, supplies,

3-1  maintenance, repairs, shipping, storage, benefits paid, financing

3-2  and interest.

3-3  Sec. 8.  1.  “Pass-through revenue” means revenue received

3-4  by a business entity solely on behalf of another in a disclosed

3-5  agency capacity, including revenue received as a broker, bailee,

3-6  consignee or auctioneer, notwithstanding that the business entity

3-7  may incur liability, primarily or secondarily, in a transaction in its

3-8  capacity as an agent.

3-9  2.  “Pass-through revenue” includes reimbursement for

3-10  advances made by a business entity on behalf of a customer or

3-11  client, other than with respect to services rendered or with respect

3-12  to purchases of goods by the business entity in carrying out the

3-13  business in which it engages.

3-14      Sec. 9.  “Production” means the process of making,

3-15  manufacturing, fabricating, constructing, forming or assembling

3-16  tangible personal property from raw, unfinished or semifinished

3-17  materials.

3-18      Sec. 10.  “Total amount received or receivable” means the

3-19  total sum of any money and the fair market value of any other

3-20  property or services received or receivable, including, without

3-21  limitation, rents, royalties, interest and dividends, and gains

3-22  realized from the sale or exchange of stocks, bonds and other

3-23  evidence of indebtedness.

3-24      Sec. 11.  1.  Except as otherwise provided in this section,

3-25  “total revenue” means the total gross amount received or

3-26  receivable on the use, sale or exchange of property or capital or

3-27  for the performance of services, from any transaction involving a

3-28  business, without any reduction for the basis of real or tangible

3-29  personal property sold, the cost of goods or services sold, or any

3-30  other expense of the business.

3-31      2.  “Total revenue” does not include:

3-32      (a) Any revenue received by a nonprofit organization that

3-33  qualifies as a tax-exempt organization pursuant to 26 U.S.C. §

3-34  501(c).

3-35      (b) Any operating revenue of a public utility for the provision

3-36  of electric, gas, water or sewer service which is operated or

3-37  regulated by a governmental entity.

3-38      (c) Any revenue received by a natural person from the rental

3-39  of not more than four residential units.

3-40      (d) Any revenue from the sale of agricultural products at

3-41  wholesale.

3-42      (e) If a business entity pays a license fee pursuant to NRS

3-43  463.370, the total sum of all amounts specifically included by

3-44  statute in and all amounts specifically excluded by statute from the

3-45  calculation of that fee for the business entity.

4-1  (f) If a business entity pays a tax on its net income pursuant to

4-2  section 51 of this act, the gross income of the business entity from

4-3  which that net income is determined.

4-4  (g) Any revenue from the operation of a vending stand

4-5  pursuant to NRS 426.640.

4-6  (h) Any revenue received by a certified disadvantaged business

4-7  enterprise.

4-8  Sec. 12.  The Legislature hereby finds and declares that the

4-9  tax imposed by this chapter on a business entity must not be

4-10  construed as a tax upon the customers of the business entity, but

4-11  as a tax which is imposed upon and collectible from the business

4-12  entity and which constitutes part of the operating overhead of the

4-13  business entity.

4-14      Sec. 13.  The Department shall:

4-15      1.  Administer and enforce the provisions of this chapter, and

4-16  may adopt such regulations as it deems appropriate for that

4-17  purpose.

4-18      2.  Deposit all taxes, interest and penalties it receives pursuant

4-19  to this chapter in the State Treasury for credit to the State General

4-20  Fund.

4-21      Sec. 14.  1.  Each person responsible for maintaining the

4-22  records of a business entity shall:

4-23      (a) Keep such records as may be necessary to determine the

4-24  amount of its liability pursuant to the provisions of this chapter;

4-25      (b) Preserve those records for 4 years or until any litigation or

4-26  prosecution pursuant to this chapter is finally determined,

4-27  whichever is longer; and

4-28      (c) Make the records available for inspection by the

4-29  Department upon demand at reasonable times during regular

4-30  business hours.

4-31      2.  Any person who violates the provisions of subsection 1 is

4-32  guilty of a misdemeanor.

4-33      Sec. 15.  1.  To verify the accuracy of any return filed or, if

4-34  no return is filed by a business entity, to determine the amount

4-35  required to be paid, the Department, or any person authorized in

4-36  writing by the Department, may examine the books, papers and

4-37  records of any person or business entity that may be liable for the

4-38  tax imposed by this chapter.

4-39      2.  Any person or business entity which may be liable for the

4-40  tax imposed by this chapter and which keeps outside of this state

4-41  its books, papers and records relating thereto shall pay to the

4-42  Department an amount equal to the allowance provided for state

4-43  officers and employees generally while traveling outside of the

4-44  State for each day or fraction thereof during which an employee

4-45  of the Department is engaged in examining those documents, plus

5-1  any other actual expenses incurred by the employee while he is

5-2  absent from his regular place of employment to examine those

5-3  documents.

5-4  Sec. 16.  1.  Except as otherwise provided in this section and

5-5  NRS 360.250, the records and files of the Department concerning

5-6  the administration of this chapter are confidential and privileged.

5-7  The Department, and any employee engaged in the administration

5-8  of this chapter or charged with the custody of any such records or

5-9  files, shall not disclose any information obtained from the

5-10  Department’s records or files or from any examination,

5-11  investigation or hearing authorized by the provisions of this

5-12  chapter. Neither the Department nor any employee of the

5-13  Department may be required to produce any of the records, files

5-14  and information for the inspection of any person or for use in any

5-15  action or proceeding.

5-16      2.  The records and files of the Department concerning the

5-17  administration of this chapter are not confidential and privileged

5-18  in the following cases:

5-19      (a) Testimony by a member or employee of the Department

5-20  and production of records, files and information on behalf of the

5-21  Department or a taxpayer in any action or proceeding pursuant to

5-22  the provisions of this chapter if that testimony or the records, files

5-23  or information, or the facts shown thereby are directly involved in

5-24  the action or proceeding.

5-25      (b) Delivery to a taxpayer or his authorized representative of a

5-26  copy of any return or other document filed by the taxpayer

5-27  pursuant to this chapter.

5-28      (c) Publication of statistics so classified as to prevent the

5-29  identification of a particular business entity or document.

5-30      (d) Exchanges of information with the Internal Revenue

5-31  Service in accordance with compacts made and provided for in

5-32  such cases.

5-33      (e) Disclosure in confidence to the Governor or his agent in

5-34  the exercise of the Governor’s general supervisory powers, or to

5-35  any person authorized to audit the accounts of the Department in

5-36  pursuance of an audit, or to the Attorney General or other legal

5-37  representative of the State in connection with an action or

5-38  proceeding pursuant to this chapter, or to any agency of this or

5-39  any other state charged with the administration or enforcement of

5-40  laws relating to taxation.

5-41      (f) Exchanges of information pursuant to subsection 3.

5-42      3.  The Commission may agree with any county fair and

5-43  recreation board or the governing body of any county, city or town

5-44  for the continuing exchange of information concerning taxpayers.

6-1  Sec. 17.  A natural person engaging in a business shall be

6-2  deemed to be a business entity that is subject to the provisions of

6-3  this chapter if the person is required to file with the Internal

6-4  Revenue Service a Schedule C (Form 1040), Profit or Loss From

6-5  Business, or its equivalent or successor form, or a Schedule F

6-6  (Form 1040), Profit or Loss From Farming, or its equivalent or

6-7  successor form, for the business.

6-8  Sec. 18.  1.  Except as otherwise provided in subsection 2, an

6-9  excise tax is hereby imposed upon each business entity for the

6-10  privilege of engaging in a business in this state at the rate of:

6-11      (a) Except as otherwise provided in paragraph (b), 0.25

6-12  percent of the amount of the total revenue of the business entity in

6-13  this state per calendar quarter in excess of the quarterly exclusion,

6-14  not to exceed 1 percent of the gross profit of the business entity in

6-15  this state per calendar quarter; or

6-16      (b) If the business consists of the production of tangible

6-17  personal property in this state, 0.25 percent of the value of the

6-18  products of the business entity per calendar quarter in excess of

6-19  the quarterly exclusion, not to exceed 1 percent of the gross profit

6-20  of the business entity in this state per calendar quarter. For the

6-21  purpose of this paragraph:

6-22          (1) Except as otherwise provided in subparagraph (2), the

6-23  value of the products shall be deemed equal to the total revenue

6-24  derived from the sale of the products, irrespective of the location

6-25  of the sale; or

6-26          (2) If the Department determines that the total revenue

6-27  derived from the sale of the products are not indicative of the true

6-28  value of the subject matter of the sale, the Department may

6-29  determine the value of the products based upon the total revenue

6-30  from sales within this state of similar products of like character

6-31  and quality, in similar quantities by or to other business entities.

6-32      2.  A business entity is exempt from the tax imposed by this

6-33  section for a calendar quarter if:

6-34      (a) Except as otherwise provided in paragraph (b), the total

6-35  revenue of the business entity in this state for the calendar quarter

6-36  does not exceed $750,000; or

6-37      (b) If the business consists of the production of tangible

6-38  personal property in this state, the value of the products of the

6-39  business entity for the calendar quarter, as determined pursuant to

6-40  subsection 1, does not exceed $750,000.

6-41      3.  Each business entity engaging in a business in this state

6-42  during a calendar quarter shall file with the Department a return

6-43  on a form prescribed by the Department, together with the

6-44  remittance of any tax due pursuant to this chapter for that

7-1  calendar quarter, on or before the last day of the month

7-2  immediately following that calendar quarter.

7-3  4.  If the amount of the total revenue of a business entity for a

7-4  calendar quarter is less than $112,500, including the value of the

7-5  products of the business entity if the business consists of the

7-6  production of tangible personal property in this state, the business

7-7  entity may add the sum obtained by subtracting that amount from

7-8  $112,500, to the amount excluded pursuant to this section from

7-9  the taxable amount of the total revenue of the business entity for

7-10  any other calendar quarter of the same fiscal year.

7-11      5.  For the purposes of this section, “quarterly exclusion”

7-12  means the sum of $112,500 and any additional amount authorized

7-13  for a calendar quarter pursuant to subsection 4.

7-14      Sec. 19.  1.  Except as otherwise provided in this section, the

7-15  total revenue of a business entity in this state must be computed

7-16  based upon the accounting method used by the business entity to

7-17  compute its income for the purposes of federal income taxation. If

7-18  a business entity does not regularly use a single accounting

7-19  method, or if the Department determines that the accounting

7-20  method used by the business entity does not clearly reflect the total

7-21  revenue of the business entity in this state, the calculation of that

7-22  revenue must be made on the basis of such an accounting method

7-23  as, in the opinion of the Department, clearly reflects the total

7-24  revenue of the business entity in this state.

7-25      2.  If a business entity is engaged in more than one type of

7-26  business, the business entity:

7-27      (a) May, in computing its total revenue in this state, use a

7-28  different accounting method for each of those types of business;

7-29  and

7-30      (b) Shall compute its total revenue in this state for each of

7-31  those types of business based upon the accounting method used by

7-32  the business entity to compute its income for that type of business

7-33  for the purposes of federal income taxation.

7-34      3.  If a business entity changes the accounting method upon

7-35  which it computes its income for the purposes of federal income

7-36  taxation, the business entity shall, before using that method to

7-37  compute its total revenue in this state, provide the Department

7-38  with written notification of the change in accounting method. If:

7-39      (a) The business entity or any of its owners, officers,

7-40  employees, agents or representatives are required, on behalf of the

7-41  business entity, to obtain the consent of the Internal Revenue

7-42  Service to the change in accounting method, the business entity

7-43  shall include a notarized copy of that consent in its written

7-44  notification to the Department; or

8-1  (b) The business entity is not required to obtain the consent of

8-2  the Internal Revenue Service to the change in its accounting

8-3  method, the business entity shall obtain the consent of the

8-4  Department to the change in accounting method before using that

8-5  method to compute its total revenue in this state.

8-6  4.  If a business entity fails to comply with the provisions of

8-7  subsections 1 and 2, any required change in the accounting

8-8  method does not affect the imposition and calculation of any

8-9  penalty, or the calculation of any additional amount of tax due,

8-10  pursuant to this chapter.

8-11      Sec. 20. 1.  The Department shall provide each business

8-12  entity engaging in business in this state with an annual

8-13  opportunity for the reconciliation of its accounts. If, as a result of

8-14  such a reconciliation, it is determined that the tax liability of a

8-15  business entity for its fiscal year, as determined pursuant to

8-16  section 18 of this act, exceeds:

8-17      (a) Except as otherwise provided in paragraph (b), 0.25

8-18  percent of the amount of the total revenue of the business entity in

8-19  this state for that fiscal year in excess of $450,000, or 1 percent of

8-20  the gross profit of the business entity in this state for that fiscal

8-21  year, whichever is less; or

8-22      (b) If the business consists of the production of tangible

8-23  personal property in this state, 0.25 percent of the value of the

8-24  products of the business entity, as determined pursuant to section

8-25  18 of this act, for that fiscal year in excess of $450,000, or 1

8-26  percent of the gross profit of the business entity in this state for

8-27  that fiscal year, whichever is less,

8-28  the business entity is entitled to a refund or credit in the amount of

8-29  that excess.

8-30      2.  The Department shall adopt such regulations as it deems

8-31  appropriate for the administration of this section.

8-32      Sec. 21. 1.  Except as otherwise provided in subsection 2:

8-33      (a) If a business consists of the production of tangible personal

8-34  property in this state and the business entity is liable for a gross

8-35  revenue tax imposed in another state for the sale of that property

8-36  in that state, the business entity is entitled to a credit against the

8-37  tax imposed pursuant to this chapter in the amount of the gross

8-38  revenue tax paid in that other state for the sale of that property in

8-39  that state, except that the amount of the credit must not exceed the

8-40  amount of the tax imposed pursuant to this chapter for the

8-41  production of that property which is sold in that state.

8-42      (b) If a business consists of the production of tangible personal

8-43  property in another state and the sale of that property in this state,

8-44  and the business entity is liable for a gross revenue tax imposed in

8-45  that other state for the production of that property in that state, the

9-1  business entity is entitled to a credit against the tax imposed

9-2  pursuant to this chapter in the amount of the gross revenue tax

9-3  paid in that other state for the production of that property which is

9-4  sold in this state, except that the amount of the credit must not

9-5  exceed the amount of the tax imposed pursuant to this chapter for

9-6  the sale of that property in this state.

9-7  2.  If the total amount of the credits calculated pursuant to

9-8  subsection 1 for a calendar quarter exceeds the amount of the tax

9-9  for which the business entity would otherwise be liable pursuant to

9-10  this chapter for that calendar quarter, the business entity may

9-11  apply the amount of those credits for that calendar quarter which

9-12  exceeds the amount of the tax for that calendar quarter to reduce

9-13  the amount of the tax due from the business entity pursuant to this

9-14  chapter for any other calendar quarter of the same fiscal year.

9-15      3.  The Department shall adopt such regulations as it deems

9-16  appropriate for the administration of this section.

9-17      4.  As used in this section:

9-18      (a) “Gross revenue tax” means a tax which:

9-19          (1) Is imposed upon or measured by the total volume of

9-20  business, in terms of gross revenue or other terms;

9-21          (2) Does not, as a result of any deductions allowed in the

9-22  calculation of the tax, constitute an income tax or a value-added

9-23  tax; and

9-24          (3) Is not, either by law or custom, stated to a purchaser

9-25  separately from the sales price.

9-26      (b) “State” includes:

9-27          (1) A state of the United States, the District of Columbia,

9-28  Puerto Rico, the United States Virgin Islands and any territory or

9-29  insular possession subject to the jurisdiction of the United States,

9-30  and any agency or political subdivision thereof; and

9-31          (2) A foreign country and any agency or political

9-32  subdivision thereof.

9-33      Sec. 22.  In calculating the tax liability of a business entity

9-34  pursuant to this chapter, the business entity is entitled to deduct

9-35  from its total revenue:

9-36      1.  Any revenue which this state is prohibited from taxing

9-37  pursuant to the Constitution or laws of the United States or the

9-38  Nevada Constitution.

9-39      2.  The amount of any federal, state or local governmental

9-40  fuel taxes collected by the business entity.

9-41      3.  Any revenue of the business entity attributable to interest

9-42  upon any bonds or securities of the Federal Government, the State

9-43  of Nevada or a political subdivision of this state.

9-44      4.  Any pass-through revenue of the business entity.

10-1      5.  Any revenue received as dividends or distributions by a

10-2  parent organization from the capital account of a subsidiary entity

10-3  of the parent organization.

10-4      6.  Any revenue received by a hospital or provider of health

10-5  care from a governmental entity.

10-6      7.  Any cash discounts the business entity allows a purchaser

10-7  of property, rights or services.

10-8      8.  Any indebtedness to the business entity which is impossible

10-9  or impracticable to collect and which is written off by the business

10-10  entity as a bad debt for purposes of federal taxation.

10-11     9.  Any counterfeit currency received by the business entity for

10-12  which the business entity is not reimbursed.

10-13     10.  The amount of any payments received by the business

10-14  entity upon claims for health, casualty or life insurance.

10-15     11.  Any revenue received by the business entity from any sale

10-16  of food for human consumption which is exempt from taxation

10-17  under the Sales and Use Tax Act.

10-18     12.  The cost of all payments made to contractors and

10-19  subcontractors by a business entity that is in the business of

10-20  developing improved real property and who sells that improved

10-21  real property to a person who is not in the business of developing

10-22  real property. The amount of the deduction must not exceed the

10-23  gross receipts for the transaction.

10-24     13.  Any promotional allowances by the business entity.

10-25     14.  The gross revenue attributable to damaged or returned

10-26  merchandise.

10-27     Sec. 23.  1.  The Department shall adopt regulations

10-28  providing for the allocation or apportionment of the tax liability

10-29  pursuant to this chapter of business entities engaging in a

10-30  business both within and outside of this state. The regulations

10-31  must:

10-32     (a) Except as otherwise provided in this section, be consistent

10-33  with the methods of dividing income contained in the Uniform

10-34  Division of Income for Tax Purposes Act.

10-35     (b) If the business consists of a financial activity, as defined in

10-36  the Uniform Division of Income for Tax Purposes Act, be

10-37  consistent with the Recommended Formula for the Apportionment

10-38  and Allocation of Net Income of Financial Institutions.

10-39     (c) If the business consists of the production or sale of tangible

10-40  personal property, provide methods and conditions for allocating

10-41  total revenue to this state.

10-42     2.  As used in this section:

10-43     (a) “Recommended Formula for the Apportionment and

10-44  Allocation of Net Income of Financial Institutions” means the

10-45  provisions of the Recommended Formula for the Apportionment

11-1  and Allocation of Net Income of Financial Institutions adopted by

11-2  the Multistate Tax Commission, as those provisions existed on

11-3  July 1, 2003.

11-4      (b) “Uniform Division of Income for Tax Purposes Act”

11-5  means the provisions of the Uniform Division of Income for Tax

11-6  Purposes Act approved by the National Conference of

11-7  Commissioners on Uniform State Laws, as those provisions

11-8  existed on July 1, 2003.

11-9      Sec. 24.  The Department shall, upon application by a

11-10  business entity engaging in a business both within and outside of

11-11  this state, reduce the tax liability of the business entity pursuant to

11-12  this chapter to the extent required by the Constitution or laws of

11-13  the United States or the Nevada Constitution, as a result of the tax

11-14  liability of the business entity to other states and their political

11-15  subdivisions.

11-16     Sec. 25.  1.  If the Department determines, after notice and

11-17  hearing, that:

11-18     (a) A business entity and one or more of its affiliated business

11-19  entities are engaged in the same or a similar type of business; and

11-20     (b) The primary or a substantial purpose for engaging in that

11-21  type of business through affiliated business entities is to avoid or

11-22  to reduce liability for the tax imposed by this chapter by increasing

11-23  the amount excluded from taxable total revenue  pursuant to

11-24  section 18 of this act,

11-25  the Department shall, notwithstanding the provisions of section 18

11-26  of this act, disallow the use of that exclusion by more than one of

11-27  those business entities.

11-28     2.  For the purposes of this section:

11-29     (a) “Affiliated business entity” means a business entity that

11-30  directly, or indirectly through one or more intermediaries,

11-31  controls, is controlled by or is under common control with,

11-32  another specified business entity.

11-33     (b) “Control,” as used in the terms “controls,” “controlled by”

11-34  and “under common control with,” means the possession, directly

11-35  or indirectly, of the power to direct or cause the direction of the

11-36  management and policies of a business entity, whether through

11-37  the ownership of voting securities, by contract or otherwise.

11-38     Sec. 26.  Upon written application made before the date on

11-39  which payment must be made, the Department may for good cause

11-40  extend by 30 days the time within which a business entity is

11-41  required to pay the tax imposed by this chapter. If the tax is paid

11-42  during the period of extension, no penalty or late charge may be

11-43  imposed for failure to pay at the time required, but the business

11-44  entity shall pay interest at the rate of 1 percent per month from the

11-45  date on which the amount would have been due without the

12-1  extension until the date of payment, unless otherwise provided in

12-2  NRS 360.232 or 360.320.

12-3      Sec. 27.  The remedies of the State provided for in this

12-4  chapter are cumulative, and no action taken by the Department or

12-5  the Attorney General constitutes an election by the State to pursue

12-6  any remedy to the exclusion of any other remedy for which

12-7  provision is made in this chapter.

12-8      Sec. 28.  If the Department determines that any tax, penalty

12-9  or interest has been paid more than once or has been erroneously

12-10  or illegally collected or computed, the Department shall set forth

12-11  that fact in the records of the Department and certify to the State

12-12  Board of Examiners the amount collected in excess of the amount

12-13  legally due and the business entity or person from which it was

12-14  collected or by whom paid. If approved by the State Board of

12-15  Examiners, the excess amount collected or paid must be credited

12-16  on any amounts then due from the person or business entity under

12-17  this chapter, and the balance refunded to the person or business

12-18  entity, or its successors, administrators or executors.

12-19     Sec. 29.  1.  Except as otherwise provided in NRS 360.235

12-20  and 360.395:

12-21     (a) No refund may be allowed unless a claim for it is filed with

12-22  the Department within 3 years after the last day of July

12-23  immediately following the close of the fiscal year for which the

12-24  overpayment was made.

12-25     (b) No credit may be allowed after the expiration of the period

12-26  specified for filing claims for refund unless a claim for credit is

12-27  filed with the Department within that period.

12-28     2.  Each claim must be in writing and must state the specific

12-29  grounds upon which the claim is founded.

12-30     3.  Failure to file a claim within the time prescribed in this

12-31  chapter constitutes a waiver of any demand against the State on

12-32  account of overpayment.

12-33     4.  Within 30 days after rejecting any claim in whole or in

12-34  part, the Department shall serve notice of its action on the

12-35  claimant in the manner prescribed for service of notice of a

12-36  deficiency determination.

12-37     Sec. 30.  1.  Except as otherwise provided in this section and

12-38  NRS 360.320, interest must be paid upon any overpayment of any

12-39  amount of the tax imposed by this chapter at the rate of 0.5

12-40  percent per month, or fraction thereof, from the last day of July

12-41  immediately following the fiscal year for which the overpayment

12-42  was made. No refund or credit may be made of any interest

12-43  imposed upon the person or business entity making the

12-44  overpayment with respect to the amount being refunded or

12-45  credited.

13-1      2.  The interest must be paid:

13-2      (a) In the case of a refund, to the last day of the calendar

13-3  month following the date upon which the person making the

13-4  overpayment, if he has not already filed a claim, is notified by the

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

13-6  the claim is certified to the State Board of Examiners, whichever is

13-7  earlier.

13-8      (b) In the case of a credit, to the same date as that to which

13-9  interest is computed on the tax or the amount against which the

13-10  credit is applied.

13-11     3.  If the Department determines that any overpayment has

13-12  been made intentionally or by reason of carelessness, it shall not

13-13  allow any interest on the overpayment.

13-14     Sec. 31.  1.  No injunction, writ of mandate or other legal or

13-15  equitable process may issue in any suit, action or proceeding in

13-16  any court against this state or against any officer of the State to

13-17  prevent or enjoin the collection under this chapter of the tax

13-18  imposed by this chapter or any amount of tax, penalty or interest

13-19  required to be collected.

13-20     2.  No suit or proceeding may be maintained in any court for

13-21  the recovery of any amount alleged to have been erroneously or

13-22  illegally determined or collected unless a claim for refund or credit

13-23  has been filed.

13-24     Sec. 32.  1.  Within 90 days after a final decision upon a

13-25  claim filed pursuant to this chapter is rendered by the

13-26  Commission, the claimant may bring an action against the

13-27  Department on the grounds set forth in the claim in a court of

13-28  competent jurisdiction in Carson City, the county of this state

13-29  where the claimant resides or maintains his principal place of

13-30  business or a county in which any relevant proceedings were

13-31  conducted by the Department, for the recovery of the whole or any

13-32  part of the amount with respect to which the claim has been

13-33  disallowed.

13-34     2.  Failure to bring an action within the time specified

13-35  constitutes a waiver of any demand against the State on account of

13-36  alleged overpayments.

13-37     Sec. 33.  1.  If the Department fails to mail notice of action

13-38  on a claim within 6 months after the claim is filed, the claimant

13-39  may consider the claim disallowed and file an appeal with the

13-40  Commission within 30 days after the last day of the 6-month

13-41  period. If the claimant is aggrieved by the decision of the

13-42  Commission rendered on appeal, the claimant may, within 90 days

13-43  after the decision is rendered, bring an action against the

13-44  Department on the grounds set forth in the claim for the recovery

14-1  of the whole or any part of the amount claimed as an

14-2  overpayment.

14-3      2.  If judgment is rendered for the plaintiff, the amount of the

14-4  judgment must first be credited towards any tax due from the

14-5  plaintiff.

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

14-7  plaintiff.

14-8      Sec. 34.  In any judgment, interest must be allowed at the rate

14-9  of 6 percent per annum upon the amount found to have been

14-10  illegally collected from the date of payment of the amount to the

14-11  date of allowance of credit on account of the judgment, or to a

14-12  date preceding the date of the refund warrant by not more than 30

14-13  days. The date must be determined by the Department.

14-14     Sec. 35.  A judgment may not be rendered in favor of the

14-15  plaintiff in any action brought against the Department to recover

14-16  any amount paid when the action is brought by or in the name of

14-17  an assignee of the business entity paying the amount or by any

14-18  person other than the person or business entity which paid the

14-19  amount.

14-20     Sec. 36.  1.  The Department may recover a refund or any

14-21  part thereof which is erroneously made and any credit or part

14-22  thereof which is erroneously allowed in an action brought in a

14-23  court of competent jurisdiction in Carson City or Clark County in

14-24  the name of the State of Nevada.

14-25     2.  The action must be tried in Carson City or Clark County

14-26  unless the court, with the consent of the Attorney General, orders

14-27  a change of place of trial.

14-28     3.  The Attorney General shall prosecute the action, and the

14-29  provisions of NRS, the Nevada Rules of Civil Procedure and the

14-30  Nevada Rules of Appellate Procedure relating to service of

14-31  summons, pleadings, proofs, trials and appeals are applicable to

14-32  the proceedings.

14-33     Sec. 37.  1.  If any amount in excess of $25 has been

14-34  illegally determined, either by the Department or by the person

14-35  filing the return, the Department shall certify this fact to the State

14-36  Board of Examiners, and the latter shall authorize the

14-37  cancellation of the amount upon the records of the Department.

14-38     2.  If an amount not exceeding $25 has been illegally

14-39  determined, either by the Department or by the person or business

14-40  entity filing the return, the Department, without certifying this fact

14-41  to the State Board of Examiners, shall authorize the cancellation

14-42  of the amount upon the records of the Department.

14-43     Sec. 38.  1.  A person shall not:

14-44     (a) Make, cause to be made or permit to be made any false or

14-45  fraudulent return or declaration or false statement in any return

15-1  or declaration with intent to defraud the State or to evade payment

15-2  of the tax or any part of the tax imposed by this chapter.

15-3      (b) Make, cause to be made or permit to be made any false

15-4  entry in books, records or accounts with intent to defraud the State

15-5  or to evade the payment of the tax or any part of the tax imposed

15-6  by this chapter.

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

15-8  set of books, records or accounts with intent to defraud the State

15-9  or to evade the payment of the tax or any part of the tax imposed

15-10  by this chapter.

15-11     2.  Any person who violates the provisions of subsection 1 is

15-12  guilty of a gross misdemeanor.

15-13     Sec. 39.  Title 32 of NRS is hereby amended by adding thereto

15-14  a new chapter to consist of the provisions set forth as sections 40 to

15-15  64, inclusive, of this act.

15-16     Sec. 40.  As used in this chapter, unless the context otherwise

15-17  requires, the words and terms defined in sections 41 to 45,

15-18  inclusive, of this act have the meanings ascribed to them in those

15-19  sections.

15-20     Sec. 41.  “Commission” means the Nevada Tax Commission.

15-21     Sec. 42.  “Financial institution” means an institution

15-22  licensed, registered or otherwise authorized to do business in this

15-23  state pursuant to the provisions of chapter 604, 645B, 645E or 649

15-24  of NRS or title 55 or 56 of NRS, or a similar institution chartered

15-25  or licensed pursuant to federal law. The term does not include:

15-26     1.  A nonprofit organization that is recognized as exempt from

15-27  taxation pursuant to 26 U.S.C. §501(c).

15-28     2.  A credit union organized under the provisions of chapter

15-29  678 of NRS or the Federal Credit Union Act.

15-30     Sec. 43.  1.  “Gross income” means all gains, profits and

15-31  other income earned by a financial institution from its operation

15-32  as a financial institution, including, without limitation:

15-33     (a) All rents, compensation for services, commissions and

15-34  brokerage and other fees;

15-35     (b) All gains or profits from the sale or other disposition of any

15-36  real or personal property; and

15-37     (c) All recoveries on losses sustained in the ordinary course of

15-38  business.

15-39     2.  The term does not include any income which this state is

15-40  prohibited from taxing pursuant to the Constitution or laws of the

15-41  United States or the Nevada Constitution.

15-42     Sec. 44.  “Net income” means gross income minus all

15-43  ordinary and necessary expenses paid or incurred by a financial

15-44  institution to carry on its business, including, without limitation:

16-1      1.  Salaries and other compensation for personal services

16-2  actually rendered;

16-3      2.  Bad debts;

16-4      3.  All interest paid or accrued on the indebtedness of the

16-5  financial institution;

16-6      4.  The cost of insurance and advertising;

16-7      5.  Losses sustained and not compensated for by insurance or

16-8  otherwise;

16-9      6.  All taxes on real or personal property paid to the United

16-10  States, this state or any political subdivision of this state, except

16-11  the tax imposed by this chapter;

16-12     7.  All payments or contributions to or under any pension or

16-13  retirement fund or plan for the officers and employees of the

16-14  financial institution;

16-15     8.  Reasonable allowances for depreciation and depletion; and

16-16     9.  Amortization of premiums on bonds, debentures, notes or

16-17  other securities or evidences of indebtedness.

16-18     Sec. 45.  “Taxpayer” means any person liable for a tax

16-19  imposed pursuant to this chapter.

16-20     Sec. 46.  The Legislature hereby finds and declares that the

16-21  tax imposed pursuant to this chapter on a financial institution

16-22  must not be construed as a tax upon the customers of the financial

16-23  institution, but as a tax which is imposed upon and collectible

16-24  from the financial institution and which constitutes part of the

16-25  operating overhead of the financial institution.

16-26     Sec. 47.  The Department shall:

16-27     1.  Administer and enforce the provisions of this chapter, and

16-28  may adopt such regulations as it deems appropriate for that

16-29  purpose.

16-30     2.  Deposit all taxes, interest and penalties it receives pursuant

16-31  to this chapter in the State Treasury for credit to the State General

16-32  Fund.

16-33     Sec. 48.  1.  Each person responsible for maintaining the

16-34  records of a financial institution shall:

16-35     (a) Keep such records as may be necessary to determine the

16-36  amount of its liability pursuant to the provisions of this chapter;

16-37     (b) Preserve those records for 4 years or until any litigation or

16-38  prosecution pursuant to this chapter is finally determined,

16-39  whichever is longer; and

16-40     (c) Make the records available for inspection by the

16-41  Department upon demand at reasonable times during regular

16-42  business hours.

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

16-44  guilty of a misdemeanor.

17-1      Sec. 49.  1.  To verify the accuracy of any return filed or, if

17-2  no return is filed by a financial institution, to determine the

17-3  amount required to be paid, the Department, or any person

17-4  authorized in writing by the Department, may examine the books,

17-5  papers and records of any person or financial institution that may

17-6  be liable for the tax imposed by this chapter.

17-7      2.  Any person or financial institution which may be liable for

17-8  the tax imposed by this chapter and which keeps outside of this

17-9  state its books, papers and records relating thereto, shall pay to the

17-10  Department an amount equal to the allowance provided for state

17-11  officers and employees generally while traveling outside of the

17-12  State for each day or fraction thereof during which an employee

17-13  of the Department is engaged in examining those documents, plus

17-14  any other actual expenses incurred by the employee while he is

17-15  absent from his regular place of employment to examine those

17-16  documents.

17-17     Sec. 50.  1.  Except as otherwise provided in this section and

17-18  NRS 360.250, the records and files of the Department concerning

17-19  the administration of this chapter are confidential and privileged.

17-20  The Department, and any employee engaged in the administration

17-21  of this chapter or charged with the custody of any such records or

17-22  files, shall not disclose any information obtained from the records

17-23  or files of the Department or from any examination, investigation

17-24  or hearing authorized by the provisions of this chapter. Neither

17-25  the Department nor any employee of the Department may be

17-26  required to produce any of the records, files and information for

17-27  the inspection of any person or for use in any action or

17-28  proceeding.

17-29     2.  The records and files of the Department concerning the

17-30  administration of this chapter are not confidential and privileged

17-31  in the following cases:

17-32     (a) Testimony by a member or employee of the Department

17-33  and production of records, files and information on behalf of the

17-34  Department or a taxpayer in any action or proceeding pursuant to

17-35  the provisions of this chapter if that testimony or the records, files

17-36  or information, or the facts shown thereby, are directly involved in

17-37  the action or proceeding.

17-38     (b) Delivery to a taxpayer or his authorized representative of a

17-39  copy of any return or other document filed by the taxpayer

17-40  pursuant to this chapter.

17-41     (c) Publication of statistics so classified as to prevent the

17-42  identification of a particular financial institution or document.

17-43     (d) Exchanges of information with the Internal Revenue

17-44  Service in accordance with compacts made and provided for in

17-45  such cases.

18-1      (e) Disclosure in confidence to the Governor or his agent in

18-2  the exercise of the Governor’s general supervisory powers, or to

18-3  any person authorized to audit the accounts of the Department in

18-4  pursuance of an audit, or to the Attorney General or other legal

18-5  representative of the State in connection with an action or

18-6  proceeding pursuant to this chapter, or to any agency of this or

18-7  any other state charged with the administration or enforcement of

18-8  laws relating to taxation.

18-9      (f) Exchanges of information pursuant to subsection 3.

18-10     3.  The Commission may agree with the Commissioner of

18-11  Financial Institutions for the continuing exchange of information

18-12  concerning taxpayers. The Commissioner shall, at the request of

18-13  the Commission, provide such information as is necessary to carry

18-14  out the provisions of this chapter.

18-15     Sec. 51.  1.  An excise tax is hereby imposed upon each

18-16  financial institution for the privilege of doing business in this state

18-17  at the rate of 5 percent of the amount of the net income of the

18-18  financial institution derived from business conducted by it within

18-19  this state for the preceding calendar quarter.

18-20     2.  Each financial institution shall file with the Department a

18-21  return on a form prescribed by the Department, together with the

18-22  remittance of any tax due pursuant to this chapter for that

18-23  calendar quarter, on or before the last day of the month

18-24  immediately following that calendar quarter. With the prior

18-25  approval of the Department, a financial institution that operates

18-26  more than one office or branch office in this state may file one

18-27  return.

18-28     3.  If the net income of a financial institution is derived from

18-29  business conducted within and outside this state, the

18-30  apportionment factor for determining the net income of the

18-31  financial institution derived from business conducted by it in this

18-32  state must consist of a fraction of the net income of the financial

18-33  institution, the numerator of which is the gross income of the

18-34  financial institution from customers whose address is within this

18-35  state, and the denominator of which is the gross income of the

18-36  financial institution from its entire operation as a financial

18-37  institution. The Commission shall adopt regulations to carry out

18-38  the provisions of this subsection.

18-39     Sec. 52.  Upon written application made before the date on

18-40  which payment must be made, the Department may for good cause

18-41  extend by 30 days the time within which a financial institution is

18-42  required to pay the tax imposed by this chapter. If the tax is paid

18-43  during the period of extension, no penalty or late charge may be

18-44  imposed for failure to pay at the time required, but the financial

18-45  institution shall pay interest at the rate most recently established

19-1  pursuant to NRS 99.040 for each month, or fraction of a month,

19-2  from the last day of the month following the date on which the

19-3  amount would have been due without the extension until the date

19-4  of payment, unless otherwise provided in NRS 360.232 or 360.320.

19-5      Sec. 53.  The remedies of the State provided for in this

19-6  chapter are cumulative, and no action taken by the Department or

19-7  the Attorney General constitutes an election by the State to pursue

19-8  any remedy to the exclusion of any other remedy for which

19-9  provision is made in this chapter.

19-10     Sec. 54.  If the Department determines that any tax, penalty

19-11  or interest has been paid more than once or has been erroneously

19-12  or illegally collected or computed, the Department shall set forth

19-13  that fact in the records of the Department and certify to the State

19-14  Board of Examiners the amount collected in excess of the amount

19-15  legally due and the financial institution or person from whom it

19-16  was collected or by whom it was paid. If approved by the State

19-17  Board of Examiners, the excess amount collected or paid must be

19-18  credited on any amounts then due from the person or financial

19-19  institution under this chapter, and the balance refunded to the

19-20  person or financial institution, or its successors, administrators or

19-21  executors.

19-22     Sec. 55.  1.  Except as otherwise provided in NRS 360.235

19-23  and 360.395:

19-24     (a) No refund may be allowed unless a claim for refund is filed

19-25  with the Department within 3 years after the last day of the month

19-26  following the close of the calendar quarter for which the

19-27  overpayment was made.

19-28     (b) No credit may be allowed after the expiration of the period

19-29  specified for filing claims for refund unless a claim for credit is

19-30  filed with the Department within that period.

19-31     2.  Each claim must be in writing and must state the specific

19-32  grounds upon which the claim is founded.

19-33     3.  Failure to file a claim within the time prescribed in this

19-34  chapter constitutes a waiver of any demand against the State on

19-35  account of overpayment.

19-36     4.  Within 30 days after rejecting any claim in whole or in

19-37  part, the Department shall serve notice of its action on the

19-38  claimant in the manner prescribed for service of notice of a

19-39  deficiency determination.

19-40     Sec. 56.  1.  Except as otherwise provided in this section and

19-41  NRS 360.320, interest must be paid upon any overpayment of any

19-42  amount of the tax imposed by this chapter at the rate of 0.5

19-43  percent per month, or fraction thereof, from the last day of the

19-44  calendar month following the calendar quarter for which the

19-45  overpayment was made. No refund or credit may be made of any

20-1  interest imposed upon the person or financial institution making

20-2  the overpayment with respect to the amount being refunded or

20-3  credited.

20-4      2.  The interest must be paid:

20-5      (a) In the case of a refund, to the last day of the calendar

20-6  month following the date upon which the person making the

20-7  overpayment, if he has not already filed a claim, is notified by the

20-8  Department that a claim may be filed or the date upon which

20-9  the claim is certified to the State Board of Examiners, whichever is

20-10  earlier.

20-11     (b) In the case of a credit, to the same date as that to which

20-12  interest is computed on the tax or amount against which the credit

20-13  is applied.

20-14     3.  If the Department determines that any overpayment has

20-15  been made intentionally or by reason of carelessness, it shall not

20-16  allow any interest on the overpayment.

20-17     Sec. 57.  1.  No injunction, writ of mandate or other legal or

20-18  equitable process may issue in any suit, action or proceeding in

20-19  any court against this state or against any officer of the State to

20-20  prevent or enjoin the collection under this chapter of the tax

20-21  imposed by this chapter or any amount of tax, penalty or interest

20-22  required to be collected.

20-23     2.  No suit or proceeding may be maintained in any court for

20-24  the recovery of any amount alleged to have been erroneously or

20-25  illegally determined or collected unless a claim for refund or credit

20-26  has been filed.

20-27     Sec. 58.  1.  Within 90 days after a final decision upon a

20-28  claim filed pursuant to this chapter is rendered by the

20-29  Commission, the claimant may bring an action against the

20-30  Department on the grounds set forth in the claim in a court of

20-31  competent jurisdiction in Carson City, the county of this state

20-32  where the claimant resides or maintains his principal place of

20-33  business or a county in which any relevant proceedings were

20-34  conducted by the Department, for the recovery of the whole or any

20-35  part of the amount with respect to which the claim has been

20-36  disallowed.

20-37     2.  Failure to bring an action within the time specified

20-38  constitutes a waiver of any demand against the State on account of

20-39  alleged overpayments.

20-40     Sec. 59.  1.  If the Department fails to mail notice of action

20-41  on a claim within 6 months after the claim is filed, the claimant

20-42  may consider the claim disallowed and file an appeal with the

20-43  Commission within 30 days after the last day of the 6-month

20-44  period. If the claimant is aggrieved by the decision of the

20-45  Commission rendered on appeal, he may, within 90 days after the

21-1  decision is rendered, bring an action against the Department on

21-2  the grounds set forth in the claim for the recovery of the whole or

21-3  any part of the amount claimed as an overpayment.

21-4      2.  If judgment is rendered for the plaintiff, the amount of the

21-5  judgment must first be credited towards any tax due from the

21-6  plaintiff.

21-7      3.  The balance of the judgment must be refunded to the

21-8  plaintiff.

21-9      Sec. 60.  In any judgment, interest must be allowed at the rate

21-10  of 6 percent per annum upon the amount found to have been

21-11  illegally collected from the date of payment of the amount to the

21-12  date of allowance of credit on account of the judgment, or to a

21-13  date preceding the date of the refund warrant by not more than 30

21-14  days. The date must be determined by the Department.

21-15     Sec. 61.  A judgment may not be rendered in favor of the

21-16  plaintiff in any action brought against the Department to recover

21-17  any amount paid when the action is brought by or in the name of

21-18  an assignee of the financial institution paying the amount or by

21-19  any person other than the person or financial institution which

21-20  paid the amount.

21-21     Sec. 62.  1.  The Department may recover a refund or any

21-22  part thereof which is erroneously made and any credit or part

21-23  thereof which is erroneously allowed in an action brought in a

21-24  court of competent jurisdiction in Carson City or Clark County in

21-25  the name of the State of Nevada.

21-26     2.  The action must be tried in Carson City or Clark County

21-27  unless the court, with the consent of the Attorney General, orders

21-28  a change of place of trial.

21-29     3.  The Attorney General shall prosecute the action, and the

21-30  provisions of NRS, the Nevada Rules of Civil Procedure and the

21-31  Nevada Rules of Appellate Procedure relating to service of

21-32  summons, pleadings, proofs, trials and appeals are applicable to

21-33  the proceedings.

21-34     Sec. 63.  1.  If any amount in excess of $25 has been

21-35  illegally determined, either by the person or financial institution

21-36  filing the return or by the Department, the Department shall

21-37  certify this fact to the State Board of Examiners, and the latter

21-38  shall authorize the cancellation of the amount upon the records of

21-39  the Department.

21-40     2.  If an amount not exceeding $25 has been illegally

21-41  determined, either by the person or financial institution filing a

21-42  return or by the Department, the Department, without certifying

21-43  this fact to the State Board of Examiners, shall authorize the

21-44  cancellation of the amount upon the records of the Department.

 

22-1      Sec. 64.  1.  A person shall not:

22-2      (a) Make, cause to be made or permit to be made any false or

22-3  fraudulent return or declaration or false statement in any return

22-4  or declaration, with intent to defraud the State or to evade

22-5  payment of the tax or any part of the tax imposed by this chapter.

22-6      (b) Make, cause to be made or permit to be made any false

22-7  entry in books, records or accounts with intent to defraud the State

22-8  or to evade the payment of the tax or any part of the tax imposed

22-9  by this chapter.

22-10     (c) Keep, cause to be kept or permit to be kept more than one

22-11  set of books, records or accounts with intent to defraud the State

22-12  or to evade the payment of the tax or any part of the tax imposed

22-13  by this chapter.

22-14     2.  Any person who violates the provisions of subsection 1 is

22-15  guilty of a gross misdemeanor.

22-16     Sec. 65.  Title 32 of NRS is hereby amended by adding thereto

22-17  a new chapter to consist of the provisions set forth as sections 66 to

22-18  97, inclusive, of this act.

22-19     Sec. 66.  As used in this chapter, unless the context otherwise

22-20  requires, the words and terms defined in sections 67 to 73,

22-21  inclusive, of this act have the meanings ascribed to them in those

22-22  sections.

22-23     Sec. 67.  “Admission charge” means the total amount,

22-24  expressed in terms of money, of consideration provided for the

22-25  right or privilege to have access to the premises of a business

22-26  entity where live entertainment is provided. The term includes all

22-27  amounts paid for food, refreshments and merchandise purchased

22-28  at the premises where the live entertainment is provided.

22-29     Sec. 68.  “Board” means the State Gaming Control Board.

22-30     Sec. 69.  “Business” means any activity engaged in or

22-31  caused to be engaged in by a business entity with the object of

22-32  gain, benefit or advantage, either direct or indirect, to any person

22-33  or governmental entity.

22-34     Sec. 70.  1.  “Business entity” includes:

22-35     (a) A corporation, partnership, proprietorship, business

22-36  association and any other person engaging in business.

22-37     (b) A natural person engaging in a business if he is deemed to

22-38  be a business entity pursuant to section 74 of this act.

22-39     (c) A house of prostitution.

22-40     2.  The term does not include a governmental entity.

22-41     Sec. 71.  “Licensed gaming establishment” has the meaning

22-42  ascribed to it in NRS 463.0169.

22-43     Sec. 72.  “Live entertainment” means any activity provided

22-44  for pleasure, enjoyment, recreation, relaxation, diversion or other

22-45  similar purpose by a person or persons who are physically present

23-1  when providing that activity to a patron or group of patrons who

23-2  are physically present.

23-3      Sec. 73.  “Taxpayer” means any person liable for the tax

23-4  imposed pursuant to this chapter.

23-5      Sec. 74.  A natural person engaging in a business shall be

23-6  deemed to be a business entity that is subject to the provisions of

23-7  this chapter if the person is required to file with the Internal

23-8  Revenue Service a Schedule C (Form 1040), Profit or Loss From

23-9  Business, or its equivalent or successor form, or a Schedule F

23-10  (Form 1040), Profit or Loss From Farming, or its equivalent or

23-11  successor form, for the business.

23-12     Sec. 75.  The Department shall provide by regulation for a

23-13  more detailed definition of live entertainment consistent with the

23-14  general definition set forth in section 72 of this act for use by the

23-15  Board and the Department in determining whether an activity is a

23-16  taxable activity under the provisions of this chapter.

23-17     Sec. 76.  1.  There is hereby imposed an excise tax of 10

23-18  percent of the admission charge to any business in this state where

23-19  live entertainment is provided. Amounts paid for gratuities directly

23-20  or indirectly remitted to employees of the business or for service

23-21  charges, including those imposed in connection with the use of

23-22  credit cards or debit cards, which are collected and retained by

23-23  persons other than the taxpayer, are not taxable pursuant to this

23-24  section.

23-25     2.  The business entity that is paid an admission charge is

23-26  liable for the tax imposed by this section, but is entitled to collect

23-27  reimbursement from the person paying the admission charge.

23-28     3.  Any ticket for admission to a business where live

23-29  entertainment is provided must state whether the tax imposed by

23-30  this section is included in the price of the ticket. If the ticket does

23-31  not include such a statement, the taxpayer shall pay the tax based

23-32  on the face amount of the ticket.

23-33     4.  The tax imposed by this section does not apply to:

23-34     (a) An admission charge to any live entertainment that this

23-35  state is prohibited from taxing under the Constitution or laws of

23-36  the United States or the Nevada Constitution.

23-37     (b) Any merchandise sold outside the premises where live

23-38  entertainment is presented, unless the purchase of the

23-39  merchandise entitles the purchaser to admission to the

23-40  entertainment.

23-41     (c) Any boxing contest or exhibition governed by the

23-42  provisions of chapter 467 of NRS.

23-43     Sec. 77.  A taxpayer shall hold the amount of all taxes for

23-44  which he is liable pursuant to this chapter in a separate account in

23-45  trust for the State.

24-1      Sec. 78.  1.  The Board shall:

24-2      (a) Collect the tax imposed by this chapter from taxpayers who

24-3  are licensed gaming establishments; and

24-4      (b) Adopt such regulations as are necessary to carry out the

24-5  provisions of paragraph (a). The regulations must be adopted in

24-6  accordance with the provisions of chapter 233B of NRS and

24-7  codified in the Nevada Administrative Code.

24-8      2.  The Department shall:

24-9      (a) Collect the tax imposed by this chapter from all other

24-10  taxpayers; and

24-11     (b) Adopt such regulations as are necessary to carry out the

24-12  provisions of paragraph (a).

24-13     3.  For the purposes of:

24-14     (a) Subsection 1, the provisions of chapter 463 of NRS relating

24-15  to the payment, collection, administration and enforcement of

24-16  gaming license fees and taxes, including, without limitation, any

24-17  provisions relating to the imposition of penalties and interest, shall

24-18  be deemed to apply to the payment, collection, administration and

24-19  enforcement of the taxes imposed by this chapter to the extent that

24-20  those provisions do not conflict with the provisions of this chapter.

24-21     (b) Subsection 2, the provisions of chapter 360 of NRS relating

24-22  to the payment, collection, administration and enforcement of

24-23  taxes, including, without limitation, any provisions relating to the

24-24  imposition of penalties and interest, shall be deemed to apply to

24-25  the payment, collection, administration and enforcement of the

24-26  taxes imposed by this chapter to the extent that those provisions do

24-27  not conflict with the provisions of this chapter.

24-28     Sec. 79.  1.  Each taxpayer who is a licensed gaming

24-29  establishment shall file with the Board, on or before the 24th day

24-30  of each month, a report showing the amount of all taxable receipts

24-31  for the preceding month. The report must be in a form prescribed

24-32  by the Board.

24-33     2.  All other taxpayers shall file with the Department, on or

24-34  before the 24th day of each month, a report showing the amount

24-35  of all taxable receipts for the preceding month. The report must be

24-36  in a form prescribed by the Department.

24-37     3.  Each report required to be filed by this section must be

24-38  accompanied by the amount of the tax that is due for the month

24-39  covered by the report.

24-40     4.  The Board and the Department shall deposit all taxes,

24-41  interest and penalties it receives pursuant to this chapter in the

24-42  State Treasury for credit to the State General Fund.

24-43     Sec. 80.  Upon written application made before the date on

24-44  which payment must be made, the Board or the Department may

24-45  for good cause extend by 30 days the time within which a taxpayer

25-1  is required to pay the tax imposed by this chapter. If the tax is paid

25-2  during the period of extension, no penalty or late charge may be

25-3  imposed for failure to pay at the time required, but the taxpayer

25-4  shall pay interest at the rate of 1 percent per month from the date

25-5  on which the amount would have been due without the extension

25-6  until the date of payment, unless otherwise provided in NRS

25-7  360.232 or 360.320.

25-8      Sec. 81.  1.  Each person responsible for maintaining the

25-9  records of a taxpayer shall:

25-10     (a) Keep such records as may be necessary to determine the

25-11  amount of the liability of the taxpayer pursuant to the provisions

25-12  of this chapter;

25-13     (b) Preserve those records for at least 4 years or until any

25-14  litigation or prosecution pursuant to this chapter is finally

25-15  determined, whichever is longer; and

25-16     (c) Make the records available for inspection by the Board or

25-17  the Department upon demand at reasonable times during regular

25-18  business hours.

25-19     2.  The Board and the Department may by regulation specify

25-20  the types of records which must be kept to determine the amount

25-21  of the liability of a taxpayer from whom they are required to

25-22  collect the tax imposed by this chapter.

25-23     3.  Any agreement that is entered into, modified or extended

25-24  after January 1, 2004, for the lease, assignment or transfer of any

25-25  premises upon which any activity subject to the tax imposed by this

25-26  chapter is, or thereafter may be, conducted shall be deemed to

25-27  include a provision that the taxpayer required to pay the tax must

25-28  be allowed access to, upon demand, all books, records and

25-29  financial papers held by the lessee, assignee or transferee which

25-30  must be kept pursuant to this section. Any person conducting

25-31  activities subject to the tax imposed by section 76 of this act who

25-32  fails to maintain or disclose his records pursuant to this subsection

25-33  is liable to the taxpayer for any penalty paid by the taxpayer for

25-34  the late payment or nonpayment of the tax caused by the failure to

25-35  maintain or disclose records.

25-36     4.  A person who violates any provision of this section is guilty

25-37  of a misdemeanor.

25-38     Sec. 82.  1.  To verify the accuracy of any report filed or, if

25-39  no report is filed by a taxpayer, to determine the amount of tax

25-40  required to be paid:

25-41     (a) The Board, or any person authorized in writing by the

25-42  Board, may examine the books, papers and records of any licensed

25-43  gaming establishment that may be liable for the tax imposed by

25-44  this chapter.

26-1      (b) The Department, or any person authorized in writing by

26-2  the Department, may examine the books, papers and records of

26-3  any other person who may be liable for the tax imposed by this

26-4  chapter.

26-5      2.  Any person who may be liable for the tax imposed by this

26-6  chapter and who keeps outside of this state any books, papers and

26-7  records relating thereto shall pay to the Board or the Department

26-8  an amount equal to the allowance provided for state officers and

26-9  employees generally while traveling outside of the State for each

26-10  day or fraction thereof during which an employee of the Board or

26-11  the Department is engaged in examining those documents, plus

26-12  any other actual expenses incurred by the employee while he is

26-13  absent from his regular place of employment to examine those

26-14  documents.

26-15     Sec. 83.  1.  Except as otherwise provided in this section and

26-16  NRS 360.250, the records and files of the Board and the

26-17  Department concerning the administration of this chapter are

26-18  confidential and privileged. The Board, the Department and any

26-19  employee of the Board or the Department engaged in the

26-20  administration of this chapter or charged with the custody of any

26-21  such records or files shall not disclose any information obtained

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

26-23  any examination, investigation or hearing authorized by the

26-24  provisions of this chapter. The Board, the Department and any

26-25  employee of the Board or the Department may not be required to

26-26  produce any of the records, files and information for the

26-27  inspection of any person or for use in any action or proceeding.

26-28     2.  The records and files of the Board and the Department

26-29  concerning the administration of this chapter are not confidential

26-30  and privileged in the following cases:

26-31     (a) Testimony by a member or employee of the Board or the

26-32  Department and production of records, files and information on

26-33  behalf of the Board or the Department or a taxpayer in any action

26-34  or proceeding pursuant to the provisions of this chapter, if that

26-35  testimony or the records, files or information, or the facts shown

26-36  thereby are directly involved in the action or proceeding.

26-37     (b) Delivery to a taxpayer or his authorized representative of a

26-38  copy of any report or other document filed by the taxpayer

26-39  pursuant to this chapter.

26-40     (c) Publication of statistics so classified as to prevent the

26-41  identification of a particular person or document.

26-42     (d) Exchanges of information with the Internal Revenue

26-43  Service in accordance with compacts made and provided for in

26-44  such cases.

27-1      (e) Disclosure in confidence to the Governor or his agent in

27-2  the exercise of the Governor’s general supervisory powers, or to

27-3  any person authorized to audit the accounts of the Board or the

27-4  Department in pursuance of an audit, or to the Attorney General

27-5  or other legal representative of the State in connection with an

27-6  action or proceeding pursuant to this chapter, or to any agency of

27-7  this or any other state charged with the administration or

27-8  enforcement of laws relating to taxation.

27-9      Sec. 84.  1.  If:

27-10     (a) The Board determines that a licensed gaming

27-11  establishment is collecting an admission charge with the intent to

27-12  defraud the State or to evade the payment of the tax or any part of

27-13  the tax imposed by this chapter, the Board shall establish an

27-14  admission charge upon which the tax imposed by this chapter

27-15  must be based.

27-16     (b) The Department determines that a taxpayer who is not a

27-17  licensed gaming establishment

27-18  is collecting an admission charge with the intent to defraud the

27-19  State or to evade the payment of the tax or any part of the tax

27-20  imposed by this chapter, the Department shall establish an

27-21  admission charge upon which the tax imposed by this chapter

27-22  must be based.

27-23     2.  The admission charge established by the Board or the

27-24  Department pursuant to subsection 1 must be based upon the

27-25  admission charges of business entities that are deemed

27-26  comparable by the Board or the Department to that of the

27-27  taxpayer.

27-28     Sec.  85.  The remedies of the State provided for in this

27-29  chapter are cumulative, and no action taken by the Board, the

27-30  Department or the Attorney General constitutes an election by the

27-31  State to pursue any remedy to the exclusion of any other remedy

27-32  for which provision is made in this chapter.

27-33     Sec. 86.  If the Board or the Department determines that any

27-34  tax, penalty or interest has been paid more than once or has been

27-35  erroneously or illegally collected or computed, the Board or the

27-36  Department shall set forth that fact in its records and certify to the

27-37  State Board of Examiners the amount collected in excess of the

27-38  amount legally due and the person from which it was collected or

27-39  by whom paid. If approved by the State Board of Examiners, the

27-40  excess amount collected or paid must be credited on any amounts

27-41  then due from the person under this chapter, and the balance

27-42  refunded to the person or his successors in interest.

27-43     Sec. 87.  1.  Except as otherwise provided in NRS 360.235

27-44  and 360.395:

28-1      (a) No refund may be allowed unless a claim for it is filed

28-2  with:

28-3          (1) The Board, if the taxpayer is a licensed gaming

28-4  establishment; or

28-5          (2) The Department, if the taxpayer is not a licensed

28-6  gaming establishment.

28-7  A claim must be filed within 3 years after the last day of the month

28-8  following the month for which the overpayment was made.

28-9      (b) No credit may be allowed after the expiration of the period

28-10  specified for filing claims for refund unless a claim for credit is

28-11  filed with the Board or the Department within that period.

28-12     2.  Each claim must be in writing and must state the specific

28-13  grounds upon which the claim is founded.

28-14     3.  Failure to file a claim within the time prescribed in this

28-15  chapter constitutes a waiver of any demand against the State on

28-16  account of overpayment.

28-17     4.  Within 30 days after rejecting any claim in whole or in

28-18  part, the Board or the Department shall serve notice of its action

28-19  on the claimant in the manner prescribed for service of notice of a

28-20  deficiency determination.

28-21     Sec. 88.  1.  Except as otherwise provided in this section and

28-22  NRS 360.320, interest must be paid upon any overpayment of any

28-23  amount of the tax imposed by this chapter at the rate of 0.5

28-24  percent per month, or fraction thereof, from the last day of the

28-25  calendar month following the month for which the overpayment

28-26  was made. No refund or credit may be made of any interest

28-27  imposed upon the person making the overpayment with respect to

28-28  the amount being refunded or credited.

28-29     2.  The interest must be paid:

28-30     (a) In the case of a refund, to the last day of the calendar

28-31  month following the date upon which the person making the

28-32  overpayment, if he has not already filed a claim, is notified by the

28-33  Board or the Department that a claim may be filed or the date

28-34  upon which the claim is certified to the State Board of Examiners,

28-35  whichever is earlier.

28-36     (b) In the case of a credit, to the same date as that to which

28-37  interest is computed on the tax or amount against which the credit

28-38  is applied.

28-39     3.  If the Board or the Department determines that any

28-40  overpayment has been made intentionally or by reason of

28-41  carelessness, the Board or the Department shall not allow any

28-42  interest on the overpayment.

28-43     Sec. 89.  1.  No injunction, writ of mandate or other legal or

28-44  equitable process may issue in any suit, action or proceeding in

28-45  any court against this state or against any officer of the State to

29-1  prevent or enjoin the collection under this chapter of the tax

29-2  imposed by this chapter or any amount of tax, penalty or interest

29-3  required to be collected.

29-4      2.  No suit or proceeding may be maintained in any court for

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

29-6  illegally determined or collected unless a claim for refund or credit

29-7  has been filed.

29-8      Sec. 90.  1.  Within 90 days after a final decision upon a

29-9  claim filed pursuant to this chapter is rendered by:

29-10     (a) The Nevada Gaming Commission, the claimant may bring

29-11  an action against the Board on the grounds set forth in the claim.

29-12     (b) The Nevada Tax Commission, the claimant may bring an

29-13  action against the Department on the grounds set forth in the

29-14  claim.

29-15     2.  An action brought pursuant to subsection 1 must be

29-16  brought in a court of competent jurisdiction in Carson City, the

29-17  county of this state where the claimant resides or maintains his

29-18  principal place of business or a county in which any relevant

29-19  proceedings were conducted by the Board or the Department, for

29-20  the recovery of the whole or any part of the amount with respect to

29-21  which the claim has been disallowed.

29-22     3.  Failure to bring an action within the time specified

29-23  constitutes a waiver of any demand against the State on account of

29-24  alleged overpayments.

29-25     Sec. 91.  1.  If the Board fails to mail notice of action on a

29-26  claim within 6 months after the claim is filed, the claimant may

29-27  consider the claim disallowed and file an appeal with the Nevada

29-28  Gaming Commission within 30 days after the last day of the 6-

29-29  month period.

29-30     2.  If the Department fails to mail notice of action on a claim

29-31  within 6 months after the claim is filed, the claimant may consider

29-32  the claim disallowed and file an appeal with the Nevada Tax

29-33  Commission within 30 days after the last day of the 6-month

29-34  period.

29-35     3.  If the claimant is aggrieved by the decision of:

29-36     (a) The Nevada Gaming Commission rendered on appeal, the

29-37  claimant may, within 90 days after the decision is rendered, bring

29-38  an action against the Board on the grounds set forth in the claim

29-39  for the recovery of the whole or any part of the amount claimed as

29-40  an overpayment.

29-41     (b) The Nevada Tax Commission rendered on appeal, the

29-42  claimant may, within 90 days after the decision is rendered, bring

29-43  an action against the Department on the grounds set forth in the

29-44  claim for the recovery of the whole or any part of the amount

29-45  claimed as an overpayment.

30-1      4.  If judgment is rendered for the plaintiff, the amount of the

30-2  judgment must first be credited towards any tax due from the

30-3  plaintiff.

30-4      5.  The balance of the judgment must be refunded to the

30-5  plaintiff.

30-6      Sec. 92.  In any judgment, interest must be allowed at the rate

30-7  of 6 percent per annum upon the amount found to have been

30-8  illegally collected from the date of payment of the amount to the

30-9  date of allowance of credit on account of the judgment, or to a

30-10  date preceding the date of the refund warrant by not more than 30

30-11  days. The date must be determined by the Board or the

30-12  Department.

30-13     Sec. 93.  A judgment may not be rendered in favor of the

30-14  plaintiff in any action brought against the Board or the

30-15  Department to recover any amount paid when the action is

30-16  brought by or in the name of an assignee of the person paying the

30-17  amount or by any person other than the person who paid the

30-18  amount.

30-19     Sec. 94.  1.  The Board or the Department may recover a

30-20  refund or any part thereof which is erroneously made and any

30-21  credit or part thereof which is erroneously allowed in an action

30-22  brought in a court of competent jurisdiction in Carson City or

30-23  Clark County in the name of the State of Nevada.

30-24     2.  The action must be tried in Carson City or Clark County

30-25  unless the court, with the consent of the Attorney General, orders

30-26  a change of place of trial.

30-27     3.  The Attorney General shall prosecute the action, and the

30-28  provisions of NRS, the Nevada Rules of Civil Procedure and the

30-29  Nevada Rules of Appellate Procedure relating to service of

30-30  summons, pleadings, proofs, trials and appeals are applicable to

30-31  the proceedings.

30-32     Sec. 95.  1.  If any amount in excess of $25 has been

30-33  illegally determined, either by the person filing the return or by the

30-34  Board or the Department, the Board or the Department shall

30-35  certify this fact to the State Board of Examiners, and the latter

30-36  shall authorize the cancellation of the amount upon the records of

30-37  the Board or the Department.

30-38     2.  If an amount not exceeding $25 has been illegally

30-39  determined, either by the person filing a return or by the Board or

30-40  the Department, the Board or the Department, without certifying

30-41  this fact to the State Board of Examiners, shall authorize the

30-42  cancellation of the amount upon the records of the Board or the

30-43  Department.

30-44     Sec. 96.  Any licensed gaming establishment liable for the

30-45  payment of the tax imposed by section 76 of this act who willfully

31-1  fails to report, pay or truthfully account for the tax is subject to the

31-2  revocation of his gaming license by the Nevada Gaming

31-3  Commission.

31-4      Sec. 97.  1.  A person shall not:

31-5      (a) Make, cause to be made or permit to be made any false or

31-6  fraudulent return or declaration or false statement in any report

31-7  or declaration, with intent to defraud the State or to evade

31-8  payment of the tax or any part of the tax imposed by this chapter.

31-9      (b) Make, cause to be made or permit to be made any false

31-10  entry in books, records or accounts with intent to defraud the State

31-11  or to evade the payment of the tax or any part of the tax imposed

31-12  by this chapter.

31-13     (c) Keep, cause to be kept or permit to be kept more than one

31-14  set of books, records or accounts with intent to defraud the State

31-15  or to evade the payment of the tax or any part of the tax imposed

31-16  by this chapter.

31-17     2.  Any person who violates the provisions of subsection 1 is

31-18  guilty of a gross misdemeanor.

31-19     Sec. 98.  NRS 360.095 is hereby amended to read as follows:

31-20     360.095  In the adoption of regulations, policies of

31-21  enforcement, and policies for auditing of taxpayers, with respect to

31-22  all taxes and fees for whose administration the Department is

31-23  responsible, the Nevada Tax Commission shall apply the following

31-24  principles:

31-25     1.  Forms, instructions and regulations governing the

31-26  computation of the amount of tax due must be brief and easily

31-27  understood.

31-28     2.  In cases where another authority, such as the United States

31-29  or a local government, also imposes a tax upon the same property or

31-30  revenue, the mechanism for collecting the tax imposed by the State

31-31  must be as nearly compatible with the collection of the other taxes

31-32  as is feasible.

31-33     3.  Unless a change is made necessary by statute or to preserve

31-34  compatibility with a tax imposed by another authority, the forms,

31-35  instructions and regulations must remain the same from year to year,

31-36  to make the taxpayer’s liability as predictable as is feasible.

31-37     4.  Exemptions or waivers, where permitted by statute, must be

31-38  granted:

31-39     (a) Equitably among eligible taxpayers; and

31-40     (b) As sparingly as is consistent with the legislative intent, to

31-41  retain the broadest feasible base for the tax affected.

31-42     5.  Audits and other procedures for enforcement must be

31-43  applied as uniformly as is feasible, not only as among persons

31-44  subject to a particular tax but also as among different taxes[.] , but

31-45  must consider a weighting of indicators of noncompliance.

32-1      6.  Collection of taxes due must be pursued in an equitable

32-2  manner, so that every taxpayer pays the full amount imposed by

32-3  law.

32-4      Sec. 99.  NRS 360.2935 is hereby amended to read as follows:

32-5      360.2935  Except as otherwise provided in [NRS 361.485,] this

32-6  title, a taxpayer is entitled to receive on any overpayment of taxes,

32-7  after the offset required by NRS 360.320 has been made, a refund

32-8  together with interest at a rate determined pursuant to NRS 17.130.

32-9  No interest is allowed on a refund of any penalties or interest paid

32-10  by a taxpayer.

32-11     Sec. 100.  NRS 360.300 is hereby amended to read as follows:

32-12     360.300  1.  If a person fails to file a return or the Department

32-13  is not satisfied with the return or returns of any tax, contribution or

32-14  premium or amount of tax, contribution or premium required to be

32-15  paid to the State by any person, in accordance with the applicable

32-16  provisions of this chapter, chapter 362, 364A, 369, 370, 372, 372A,

32-17  374, 377, 377A or 444A of NRS, NRS 482.313, [or] chapter 585 or

32-18  680B of NRS , or sections 40 to 64, inclusive, of this act, as

32-19  administered or audited by the Department, it may compute and

32-20  determine the amount required to be paid upon the basis of:

32-21     (a) The facts contained in the return;

32-22     (b) Any information within its possession or that may come into

32-23  its possession; or

32-24     (c) Reasonable estimates of the amount.

32-25     2.  One or more deficiency determinations may be made with

32-26  respect to the amount due for one or for more than one period.

32-27     3.  In making its determination of the amount required to be

32-28  paid, the Department shall impose interest on the amount of tax

32-29  determined to be due, calculated at the rate and in the manner set

32-30  forth in NRS 360.417, unless a different rate of interest is

32-31  specifically provided by statute.

32-32     4.  The Department shall impose a penalty of 10 percent in

32-33  addition to the amount of a determination that is made in the case of

32-34  the failure of a person to file a return with the Department.

32-35     5.  When a business is discontinued, a determination may be

32-36  made at any time thereafter within the time prescribed in NRS

32-37  360.355 as to liability arising out of that business, irrespective of

32-38  whether the determination is issued before the due date of the

32-39  liability.

32-40     Sec. 100.5.  NRS 360.300 is hereby amended to read as

32-41  follows:

32-42     360.300  1.  If a person fails to file a return or the Department

32-43  is not satisfied with the return or returns of any tax, contribution or

32-44  premium or amount of tax, contribution or premium required to be

32-45  paid to the State by any person, in accordance with the applicable

33-1  provisions of this chapter, chapter 362, 364A, 369, 370, 372, 372A,

33-2  374, 377, 377A or 444A of NRS, NRS 482.313, chapter 585 or

33-3  680B of NRS, or sections 2 to 38, inclusive, or sections 40 to 64,

33-4  inclusive, of this act, as administered or audited by the Department,

33-5  it may compute and determine the amount required to be paid upon

33-6  the basis of:

33-7      (a) The facts contained in the return;

33-8      (b) Any information within its possession or that may come into

33-9  its possession; or

33-10     (c) Reasonable estimates of the amount.

33-11     2.  One or more deficiency determinations may be made with

33-12  respect to the amount due for one or for more than one period.

33-13     3.  In making its determination of the amount required to be

33-14  paid, the Department shall impose interest on the amount of tax

33-15  determined to be due, calculated at the rate and in the manner set

33-16  forth in NRS 360.417, unless a different rate of interest is

33-17  specifically provided by statute.

33-18     4.  The Department shall impose a penalty of 10 percent in

33-19  addition to the amount of a determination that is made in the case of

33-20  the failure of a person to file a return with the Department.

33-21     5.  When a business is discontinued, a determination may be

33-22  made at any time thereafter within the time prescribed in NRS

33-23  360.355 as to liability arising out of that business, irrespective of

33-24  whether the determination is issued before the due date of the

33-25  liability.

33-26     Sec. 101.  NRS 360.417 is hereby amended to read as follows:

33-27     360.417  Except as otherwise provided in NRS 360.232 and

33-28  360.320, and unless a different penalty or rate of interest is

33-29  specifically provided by statute, any person who fails to pay any tax

33-30  provided for in chapter 362, 364A, 369, 370, 372, 374, 377, 377A,

33-31  444A or 585 of NRS, or sections 40 to 64, inclusive, of this act, or

33-32  the fee provided for in NRS 482.313, to the State or a county within

33-33  the time required, shall pay a penalty of not more than 10 percent of

33-34  the amount of the tax or fee which is owed, as determined by the

33-35  Department, in addition to the tax or fee, plus interest at the rate of 1

33-36  percent per month, or fraction of a month, from the last day of the

33-37  month following the period for which the amount or any portion of

33-38  the amount should have been reported until the date of payment.

33-39  The amount of any penalty imposed must be based on a graduated

33-40  schedule adopted by the Nevada Tax Commission which takes into

33-41  consideration the length of time the tax or fee remained unpaid.

33-42     Sec. 101.5.  NRS 360.417 is hereby amended to read as

33-43  follows:

33-44     360.417  Except as otherwise provided in NRS 360.232 and

33-45  360.320, and unless a different penalty or rate of interest is

34-1  specifically provided by statute, any person who fails to pay any tax

34-2  provided for in chapter 362, 364A, 369, 370, 372, 374, 377, 377A,

34-3  444A or 585 of NRS, or sections 2 to 38, inclusive, or sections 40

34-4  to 64, inclusive, of this act, or the fee provided for in NRS 482.313,

34-5  to the State or a county within the time required, shall pay a penalty

34-6  of not more than 10 percent of the amount of the tax or fee which is

34-7  owed, as determined by the Department, in addition to the tax or fee,

34-8  plus interest at the rate of 1 percent per month, or fraction of a

34-9  month, from the last day of the month following the period for

34-10  which the amount or any portion of the amount should have been

34-11  reported until the date of payment. The amount of any penalty

34-12  imposed must be based on a graduated schedule adopted by the

34-13  Nevada Tax Commission which takes into consideration the length

34-14  of time the tax or fee remained unpaid.

34-15     Sec. 102.  NRS 360.419 is hereby amended to read as follows:

34-16     360.419  1.  If the Executive Director or a designated hearing

34-17  officer finds that the failure of a person to make a timely return or

34-18  payment of a tax imposed pursuant to NRS 361.320 or chapter

34-19  361A, 376A, 377 or 377A of NRS, or by chapter 362, 364A, 369,

34-20  370, 372, 372A, 374, 375A or 375B of NRS, or sections 40 to 64,

34-21  inclusive, of this act is the result of circumstances beyond his

34-22  control and occurred despite the exercise of ordinary care and

34-23  without intent, the Department may relieve him of all or part of any

34-24  interest or penalty , or both.

34-25     2.  A person seeking this relief must file with the Department a

34-26  statement under oath setting forth the facts upon which he bases his

34-27  claim.

34-28     3.  The Department shall disclose, upon the request of any

34-29  person:

34-30     (a) The name of the person to whom relief was granted; and

34-31     (b) The amount of the relief.

34-32     4.  The Executive Director or a designated hearing officer shall

34-33  act upon the request of a taxpayer seeking relief pursuant to NRS

34-34  361.4835 which is deferred by a county treasurer or county assessor.

34-35     Sec. 102.5.  NRS 360.419 is hereby amended to read as

34-36  follows:

34-37     360.419  1.  If the Executive Director or a designated hearing

34-38  officer finds that the failure of a person to make a timely return or

34-39  payment of a tax imposed pursuant to NRS 361.320 or chapter

34-40  361A, 376A, 377 or 377A of NRS, or by chapter 362, 364A, 369,

34-41  370, 372, 372A, 374, 375A or 375B of NRS, or sections 2 to 38,

34-42  inclusive, or sections 40 to 64, inclusive, of this act is the result of

34-43  circumstances beyond his control and occurred despite the exercise

34-44  of ordinary care and without intent, the Department may relieve him

34-45  of all or part of any interest or penalty , or both.

35-1      2.  A person seeking this relief must file with the Department a

35-2  statement under oath setting forth the facts upon which he bases his

35-3  claim.

35-4      3.  The Department shall disclose, upon the request of any

35-5  person:

35-6      (a) The name of the person to whom relief was granted; and

35-7      (b) The amount of the relief.

35-8      4.  The Executive Director or a designated hearing officer shall

35-9  act upon the request of a taxpayer seeking relief pursuant to NRS

35-10  361.4835 which is deferred by a county treasurer or county assessor.

35-11     Sec. 103.  NRS 360.510 is hereby amended to read as follows:

35-12     360.510  1.  If any person is delinquent in the payment of any

35-13  tax or fee administered by the Department or if a determination has

35-14  been made against him which remains unpaid, the Department may:

35-15     (a) Not later than 3 years after the payment became delinquent

35-16  or the determination became final; or

35-17     (b) Not later than 6 years after the last recording of an abstract

35-18  of judgment or of a certificate constituting a lien for tax owed,

35-19  give a notice of the delinquency and a demand to transmit

35-20  personally or by registered or certified mail to any person,

35-21  including, without limitation, any officer or department of this state

35-22  or any political subdivision or agency of this state, who has in his

35-23  possession or under his control any credits or other personal

35-24  property belonging to the delinquent, or owing any debts to the

35-25  delinquent or person against whom a determination has been made

35-26  which remains unpaid, or owing any debts to the delinquent or that

35-27  person. In the case of any state officer, department or agency, the

35-28  notice must be given to the officer, department or agency before

35-29  the Department presents the claim of the delinquent taxpayer to the

35-30  State Controller.

35-31     2.  A state officer, department or agency which receives such a

35-32  notice may satisfy any debt owed to it by that person before it

35-33  honors the notice of the Department.

35-34     3.  After receiving the demand to transmit, the person notified

35-35  by the demand may not transfer or otherwise dispose of the credits,

35-36  other personal property, or debts in his possession or under his

35-37  control at the time he received the notice until the Department

35-38  consents to a transfer or other disposition.

35-39     4.  Every person notified by a demand to transmit shall, within

35-40  10 days after receipt of the demand to transmit, inform the

35-41  Department of[,] and transmit to the Department all such credits,

35-42  other personal property[,] or debts in his possession, under his

35-43  control or owing by him within the time and in the manner

35-44  requested by the Department. Except as otherwise provided in

36-1  subsection 5, no further notice is required to be served to that

36-2  person.

36-3      5.  If the property of the delinquent taxpayer consists of a series

36-4  of payments owed to him, the person who owes or controls the

36-5  payments shall transmit the payments to the Department until

36-6  otherwise notified by the Department. If the debt of the delinquent

36-7  taxpayer is not paid within 1 year after the Department issued the

36-8  original demand to transmit, the Department shall issue another

36-9  demand to transmit to the person responsible for making the

36-10  payments informing him to continue to transmit payments to the

36-11  Department or that his duty to transmit the payments to

36-12  the Department has ceased.

36-13     6.  If the notice of the delinquency seeks to prevent the transfer

36-14  or other disposition of a deposit in a bank or credit union or other

36-15  credits or personal property in the possession or under the control of

36-16  a bank, credit union or other depository institution, the notice must

36-17  be delivered or mailed to any branch or office of the bank, credit

36-18  union or other depository institution at which the deposit is carried

36-19  or at which the credits or personal property is held.

36-20     7.  If any person notified by the notice of the delinquency

36-21  makes any transfer or other disposition of the property or debts

36-22  required to be withheld or transmitted, to the extent of the value of

36-23  the property or the amount of the debts thus transferred or paid, he is

36-24  liable to the State for any indebtedness due pursuant to this chapter,

36-25  [or] chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or

36-26  444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS , or

36-27  sections 40 to 64, inclusive, of this act from the person with respect

36-28  to whose obligation the notice was given if solely by reason of the

36-29  transfer or other disposition the State is unable to recover the

36-30  indebtedness of the person with respect to whose obligation the

36-31  notice was given.

36-32     Sec. 103.5.  NRS 360.510 is hereby amended to read as

36-33  follows:

36-34     360.510  1.  If any person is delinquent in the payment of any

36-35  tax or fee administered by the Department or if a determination has

36-36  been made against him which remains unpaid, the Department may:

36-37     (a) Not later than 3 years after the payment became delinquent

36-38  or the determination became final; or

36-39     (b) Not later than 6 years after the last recording of an abstract

36-40  of judgment or of a certificate constituting a lien for tax owed,

36-41  give a notice of the delinquency and a demand to transmit

36-42  personally or by registered or certified mail to any person,

36-43  including, without limitation, any officer or department of this state

36-44  or any political subdivision or agency of this state, who has in his

36-45  possession or under his control any credits or other personal

37-1  property belonging to the delinquent, or owing any debts to the

37-2  delinquent or person against whom a determination has been made

37-3  which remains unpaid, or owing any debts to the delinquent or that

37-4  person. In the case of any state officer, department or agency, the

37-5  notice must be given to the officer, department or agency before

37-6  the Department presents the claim of the delinquent taxpayer to the

37-7  State Controller.

37-8      2.  A state officer, department or agency which receives such a

37-9  notice may satisfy any debt owed to it by that person before it

37-10  honors the notice of the Department.

37-11     3.  After receiving the demand to transmit, the person notified

37-12  by the demand may not transfer or otherwise dispose of the credits,

37-13  other personal property, or debts in his possession or under his

37-14  control at the time he received the notice until the Department

37-15  consents to a transfer or other disposition.

37-16     4.  Every person notified by a demand to transmit shall, within

37-17  10 days after receipt of the demand to transmit, inform the

37-18  Department of and transmit to the Department all such credits, other

37-19  personal property or debts in his possession, under his control or

37-20  owing by him within the time and in the manner requested by the

37-21  Department. Except as otherwise provided in subsection 5, no

37-22  further notice is required to be served to that person.

37-23     5.  If the property of the delinquent taxpayer consists of a series

37-24  of payments owed to him, the person who owes or controls the

37-25  payments shall transmit the payments to the Department until

37-26  otherwise notified by the Department. If the debt of the delinquent

37-27  taxpayer is not paid within 1 year after the Department issued the

37-28  original demand to transmit, the Department shall issue another

37-29  demand to transmit to the person responsible for making the

37-30  payments informing him to continue to transmit payments to

37-31  the Department or that his duty to transmit the payments to the

37-32  Department has ceased.

37-33     6.  If the notice of the delinquency seeks to prevent the transfer

37-34  or other disposition of a deposit in a bank or credit union or other

37-35  credits or personal property in the possession or under the control of

37-36  a bank, credit union or other depository institution, the notice must

37-37  be delivered or mailed to any branch or office of the bank, credit

37-38  union or other depository institution at which the deposit is carried

37-39  or at which the credits or personal property is held.

37-40     7.  If any person notified by the notice of the delinquency

37-41  makes any transfer or other disposition of the property or debts

37-42  required to be withheld or transmitted, to the extent of the value of

37-43  the property or the amount of the debts thus transferred or paid, he is

37-44  liable to the State for any indebtedness due pursuant to this chapter,

37-45  chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of

38-1  NRS, NRS 482.313, or chapter 585 or 680B of NRS, or sections 2

38-2  to 38, inclusive, or sections 40 to 64, inclusive, of this act from the

38-3  person with respect to whose obligation the notice was given if

38-4  solely by reason of the transfer or other disposition the State is

38-5  unable to recover the indebtedness of the person with respect to

38-6  whose obligation the notice was given.

38-7      Sec. 103.7.  Chapter 364A of NRS is hereby amended to read

38-8  as follows:

38-9      A person described in NRS 612.144 is exempt from the

38-10  provisions of this chapter.

38-11     Sec. 104. NRS 364A.130 is hereby amended to read as

38-12  follows:

38-13     364A.130  1.  Except as otherwise provided in subsection [6,]

38-14  8, a person shall not conduct a business in this state unless he has a

38-15  business license issued by the Department.

38-16     2.  The application for a business license must:

38-17     (a) Be made upon a form prescribed by the Department;

38-18     (b) Set forth the name under which the applicant transacts or

38-19  intends to transact business and the location of his place or places of

38-20  business;

38-21     (c) Declare the estimated number of employees for the previous

38-22  calendar quarter;

38-23     (d) Be accompanied by a fee of [$25;] $100; and

38-24     (e) Include any other information that the Department deems

38-25  necessary.

38-26     3.  The application must be signed by:

38-27     (a) The owner, if the business is owned by a natural person;

38-28     (b) A member or partner, if the business is owned by an

38-29  association or partnership; or

38-30     (c) An officer or some other person specifically authorized to

38-31  sign the application, if the business is owned by a corporation.

38-32     4.  If the application is signed pursuant to paragraph (c) of

38-33  subsection 3, written evidence of the signer’s authority must be

38-34  attached to the application.

38-35     5.  A person who has been issued a business license by the

38-36  Department shall submit a fee of $100 to the Department on or

38-37  before the last day of the month in which the anniversary date of

38-38  issuance of the business license occurs in each year, unless the

38-39  person submits a written statement to the Department, at least 10

38-40  days before the anniversary date, indicating that the person will

38-41  not be conducting business in this state after the anniversary date.

38-42     6.  The business license required to be obtained pursuant to

38-43  this section is in addition to any license to conduct business that

38-44  must be obtained from the local jurisdiction in which the business

38-45  is being conducted.

39-1      7.  For the purposes of this chapter, a person shall be deemed to

39-2  conduct a business in this state if a business for which the person is

39-3  responsible:

39-4      (a) Is incorporated pursuant to chapter 78 or 78A of NRS;

39-5      (b) Has an office or other base of operations in this state; or

39-6      (c) Pays wages or other remuneration to a natural person who

39-7  performs in this state any of the duties for which he is paid.

39-8      [6.] 8. A person who takes part in a trade show or convention

39-9  held in this state for a purpose related to the conduct of a business is

39-10  not required to obtain a business license specifically for that event.

39-11     Sec. 105. NRS 364A.130 is hereby amended to read as

39-12  follows:

39-13     364A.130  1.  Except as otherwise provided in subsection 8, a

39-14  person shall not conduct a business in this state unless he has a

39-15  business license issued by the Department.

39-16     2.  The application for a business license must:

39-17     (a) Be made upon a form prescribed by the Department;

39-18     (b) Set forth the name under which the applicant transacts or

39-19  intends to transact business and the location of his place or places of

39-20  business;

39-21     (c) Declare the estimated number of employees for the previous

39-22  calendar quarter;

39-23     (d) Be accompanied by a fee of $100; and

39-24     (e) Include any other information that the Department deems

39-25  necessary.

39-26     3.  The application must be signed by:

39-27     (a) The owner, if the business is owned by a natural person;

39-28     (b) A member or partner, if the business is owned by an

39-29  association or partnership; or

39-30     (c) An officer or some other person specifically authorized to

39-31  sign the application, if the business is owned by a corporation.

39-32     4.  If the application is signed pursuant to paragraph (c) of

39-33  subsection 3, written evidence of the signer’s authority must be

39-34  attached to the application.

39-35     5.  A person who has been issued a business license by the

39-36  Department shall submit a fee of $100 to the Department on or

39-37  before the last day of the month in which the anniversary date of

39-38  issuance of the business license occurs in each year, unless the

39-39  person submits a written statement to the Department, at least 10

39-40  days before the anniversary date, indicating that the person will not

39-41  be conducting business in this state after the anniversary date. A

39-42  person who fails to submit the annual fee required pursuant to

39-43  this subsection in a timely manner shall pay a penalty in the

39-44  amount of $75 in addition to the annual fee.

40-1      6.  The business license required to be obtained pursuant to this

40-2  section is in addition to any license to conduct business that must be

40-3  obtained from the local jurisdiction in which the business is being

40-4  conducted.

40-5      7.  For the purposes of this chapter, a person shall be deemed to

40-6  conduct a business in this state if a business for which the person is

40-7  responsible:

40-8      (a) Is incorporated pursuant to chapter 78 or 78A of NRS;

40-9      (b) Has an office or other base of operations in this state; or

40-10     (c) Pays wages or other remuneration to a natural person who

40-11  performs in this state any of the duties for which he is paid.

40-12     8.  A person who takes part in a trade show or convention held

40-13  in this state for a purpose related to the conduct of a business is not

40-14  required to obtain a business license specifically for that event.

40-15     Sec. 106. NRS 364A.140 is hereby amended to read as

40-16  follows:

40-17     364A.140  1.  A tax is hereby imposed upon the privilege of

40-18  conducting business in this state. Except as otherwise provided in

40-19  this section, the tax for each calendar quarter is due on the last day

40-20  of the quarter and must be paid on or before the last day of the

40-21  month immediately following the quarter on the basis of the total

40-22  number of equivalent full-time employees employed by the business

40-23  in the quarter.

40-24     2.  If the tax required to be paid by a business for a calendar

40-25  quarter pursuant to subsection 1 is less than $25, the business may

40-26  submit a written request to the Department to pay the tax annually

40-27  for each calendar quarter of a fiscal year ending June 30. Upon

40-28  approval of the request, the tax becomes due on the last day of the

40-29  fiscal year and must be paid on or before the last day of July

40-30  immediately following the fiscal year. If a business ceases operation

40-31  before the end of the fiscal year, the tax becomes due on the date on

40-32  which the business ceases its operation and must be paid on or

40-33  before the last day of the month immediately following the calendar

40-34  quarter in which the business ceases its operation. A business may

40-35  continue to pay the tax annually until the Department withdraws its

40-36  approval for the annual payment. The Department may withdraw its

40-37  approval at any time if it determines that the tax due for any

40-38  calendar quarter is at least $25.

40-39     3.  The total number of equivalent full-time employees

40-40  employed by a business in a quarter must be calculated pursuant to

40-41  NRS 364A.150.

40-42     4.  Except as otherwise provided in NRS 364A.152 and

40-43  364A.170, the amount of tax due for a business for each calendar

40-44  quarter is [$25] $31.25 for each equivalent full-time employee

40-45  employed by the business in the quarter.

41-1      5.  Each business shall file a return on a form prescribed by the

41-2  Department with each remittance of the tax. If the payment due is

41-3  greater than $1,000, the payment must be made by direct deposit at

41-4  a bank or credit union in which the State has an account, unless the

41-5  Department waives this requirement pursuant to regulations adopted

41-6  by the Commission. The return must include:

41-7      (a) If the tax is paid quarterly, a statement of the number of

41-8  equivalent full-time employees employed by the business in the

41-9  preceding quarter and any other information the Department

41-10  determines is necessary.

41-11     (b) If the tax is paid annually, a statement of the number of

41-12  equivalent full-time employees employed by the business for each

41-13  calendar quarter of the preceding fiscal year and any other

41-14  information the Department determines is necessary.

41-15     6.  The Commission shall adopt regulations concerning the

41-16  payment of the tax imposed pursuant to this section by direct

41-17  deposit.

41-18     Sec. 107. NRS 364A.140 is hereby amended to read as

41-19  follows:

41-20     364A.140  1.  A tax is hereby imposed upon the privilege of

41-21  conducting business in this state. Except as otherwise provided in

41-22  this section, the tax for each calendar quarter is due on the last day

41-23  of the quarter and must be paid on or before the last day of the

41-24  month immediately following the quarter on the basis of the total

41-25  number of equivalent full-time employees employed by the business

41-26  in the quarter.

41-27     2.  If the tax required to be paid by a business for a calendar

41-28  quarter pursuant to subsection 1 is less than $25, the business may

41-29  submit a written request to the Department to pay the tax annually

41-30  for each calendar quarter of a fiscal year ending June 30. Upon

41-31  approval of the request, the tax becomes due on the last day of the

41-32  fiscal year and must be paid on or before the last day of July

41-33  immediately following the fiscal year. If a business ceases operation

41-34  before the end of the fiscal year, the tax becomes due on the date on

41-35  which the business ceases its operation and must be paid on or

41-36  before the last day of the month immediately following the calendar

41-37  quarter in which the business ceases its operation. A business may

41-38  continue to pay the tax annually until the Department withdraws its

41-39  approval for the annual payment. The Department may withdraw its

41-40  approval at any time if it determines that the tax due for any

41-41  calendar quarter is at least $25.

41-42     3.  The total number of equivalent full-time employees

41-43  employed by a business in a quarter must be calculated pursuant to

41-44  NRS 364A.150.

42-1      4.  Except as otherwise provided in NRS 364A.152 and

42-2  364A.170, the amount of tax due for a business for each calendar

42-3  quarter is [$31.25] $21.25 for each equivalent full-time employee

42-4  employed by the business in the quarter.

42-5      5.  Each business shall file a return on a form prescribed by the

42-6  Department with each remittance of the tax. If the payment due is

42-7  greater than $1,000, the payment must be made by direct deposit at

42-8  a bank or credit union in which the State has an account, unless the

42-9  Department waives this requirement pursuant to regulations adopted

42-10  by the Commission. The return must include:

42-11     (a) If the tax is paid quarterly, a statement of the number of

42-12  equivalent full-time employees employed by the business in the

42-13  preceding quarter and any other information the Department

42-14  determines is necessary.

42-15     (b) If the tax is paid annually, a statement of the number of

42-16  equivalent full-time employees employed by the business for each

42-17  calendar quarter of the preceding fiscal year and any other

42-18  information the Department determines is necessary.

42-19     6.  The Commission shall adopt regulations concerning the

42-20  payment of the tax imposed pursuant to this section by direct

42-21  deposit.

42-22     Sec. 108. NRS 364A.140 is hereby amended to read as

42-23  follows:

42-24     364A.140  1.  A tax is hereby imposed upon the privilege of

42-25  conducting business in this state. Except as otherwise provided in

42-26  this section, the tax for each calendar quarter is due on the last day

42-27  of the quarter and must be paid on or before the last day of the

42-28  month immediately following the quarter on the basis of the total

42-29  number of equivalent full-time employees employed by the business

42-30  in the quarter.

42-31     2.  If the tax required to be paid by a business for a calendar

42-32  quarter pursuant to subsection 1 is less than $25, the business may

42-33  submit a written request to the Department to pay the tax annually

42-34  for each calendar quarter of a fiscal year ending June 30. Upon

42-35  approval of the request, the tax becomes due on the last day of the

42-36  fiscal year and must be paid on or before the last day of July

42-37  immediately following the fiscal year. If a business ceases operation

42-38  before the end of the fiscal year, the tax becomes due on the date on

42-39  which the business ceases its operation and must be paid on or

42-40  before the last day of the month immediately following the calendar

42-41  quarter in which the business ceases its operation. A business may

42-42  continue to pay the tax annually until the Department withdraws its

42-43  approval for the annual payment. The Department may withdraw its

42-44  approval at any time if it determines that the tax due for any

42-45  calendar quarter is at least $25.

43-1      3.  The total number of equivalent full-time employees

43-2  employed by a business in a quarter must be calculated pursuant to

43-3  NRS 364A.150.

43-4      4.  Except as otherwise provided in NRS 364A.152 and

43-5  364A.170, the amount of tax due for a business for each calendar

43-6  quarter is [$21.25] $12.50 for each equivalent full-time employee

43-7  employed by the business in the quarter.

43-8      5.  Each business shall file a return on a form prescribed by the

43-9  Department with each remittance of the tax. If the payment due is

43-10  greater than $1,000, the payment must be made by direct deposit at

43-11  a bank or credit union in which the State has an account, unless the

43-12  Department waives this requirement pursuant to regulations adopted

43-13  by the Commission. The return must include:

43-14     (a) If the tax is paid quarterly, a statement of the number of

43-15  equivalent full-time employees employed by the business in the

43-16  preceding quarter and any other information the Department

43-17  determines is necessary.

43-18     (b) If the tax is paid annually, a statement of the number of

43-19  equivalent full-time employees employed by the business for each

43-20  calendar quarter of the preceding fiscal year and any other

43-21  information the Department determines is necessary.

43-22     6.  The Commission shall adopt regulations concerning the

43-23  payment of the tax imposed pursuant to this section by direct

43-24  deposit.

43-25     Sec. 109.  NRS 369.174 is hereby amended to read as follows:

43-26     369.174  Each month, the State Controller shall transfer to the

43-27  Tax on Liquor Program Account in the State General Fund, from the

43-28  tax on liquor containing more than 22 percent of alcohol by volume,

43-29  the portion of the tax which exceeds [$1.90] $2.93 per wine gallon.

43-30     Sec. 110.  NRS 369.330 is hereby amended to read as follows:

43-31     369.330  Except as otherwise provided in this chapter, an excise

43-32  tax is hereby levied and must be collected respecting all liquor and

43-33  upon the privilege of importing, possessing, storing or selling liquor,

43-34  according to the following rates and classifications:

43-35     1.  On liquor containing more than 22 percent of alcohol by

43-36  volume, [$2.05] $3.08 per wine gallon or proportionate part thereof.

43-37     2.  On liquor containing more than 14 percent up to and

43-38  including 22 percent of alcohol by volume, [75 cents] $1.12 per

43-39  wine gallon or proportionate part thereof.

43-40     3.  On liquor containing from one-half of 1 percent up to and

43-41  including 14 percent of alcohol by volume, [40] 60 cents per wine

43-42  gallon or proportionate part thereof.

43-43     4.  On all malt beverage liquor brewed or fermented and bottled

43-44  in or outside this state, [9] 14 cents per gallon.

 

44-1      Sec. 111. NRS 369.370 is hereby amended to read as follows:

44-2      369.370  1.  For the privilege of importing, possessing, storing

44-3  or selling liquors, all licensed importers and manufacturers of liquor

44-4  in this state shall pay the excise tax imposed and established by this

44-5  chapter.

44-6      2.  If, after the tax is paid on any such liquor, satisfactory

44-7  evidence is presented to the Department that the imports have been

44-8  actually exported and sold outside this state in a manner not in

44-9  conflict with the law of the place of sale, the Department shall direct

44-10  that a refund or credit of the tax so paid be made to the taxpayer.

44-11  The taxpayer shall report all such exports and imports, and pay the

44-12  tax on the imports monthly, on forms and subject to regulations

44-13  prescribed by the Department.

44-14     3.  The excise tax imposed by this chapter is due on or before

44-15  the 20th day of the following month. [If all such taxes are paid on or

44-16  before the 15th day of the following month, a discount in the

44-17  amount of 3 percent of the tax must be allowed to the taxpayer.] The

44-18  Department may, for good cause, extend for not more than 15 days

44-19  after the date the tax is due the time for paying the tax if a request

44-20  for such an extension of time is received by the Department on or

44-21  before the date the tax was due. If such an extension is granted,

44-22  interest accrues from the original date the tax was due.

44-23     4.  The Department shall allow refunds or credits on any

44-24  shipments lost, stolen or damaged in transit, or damaged or spoiled

44-25  on the premises, may require all claims in connection therewith to

44-26  be sworn to and may make ratable tax adjustments, credits or

44-27  refunds to effectuate the purposes of this chapter.

44-28     Sec. 112. NRS 369.415 is hereby amended to read as follows:

44-29     369.415  1.  Any person who imports liquor into the State for

44-30  the purpose of rectification is an importer and shall be licensed

44-31  pursuant to NRS 369.180.

44-32     2.  A licensed importer of liquor shall import neutral or distilled

44-33  spirits in bulk only for the express purpose of rectification. Rectified

44-34  alcoholic beverages shall be sold in this state only after bottling in

44-35  original packages.

44-36     3.  Bulk imports of neutral or distilled spirits shall be taxable

44-37  only when rectified and bottled in original packages for sale within

44-38  the State.

44-39     4.  Refunds [, credits and discounts shall] and credits must be

44-40  allowed pursuant to NRS 369.370.

44-41     Sec. 113.  NRS 370.165 is hereby amended to read as follows:

44-42     370.165  There is hereby levied a tax upon the purchase or

44-43  possession of cigarettes by a consumer in the State of Nevada at the

44-44  rate of [17.5] 50 mills per cigarette. The tax may be represented and

44-45  precollected by the affixing of a revenue stamp or other approved

45-1  evidence of payment to each package, packet or container in which

45-2  cigarettes are sold. The tax must be precollected by the wholesale or

45-3  retail dealer, and must be recovered from the consumer by adding

45-4  the amount of the tax to the selling price. Each person who sells

45-5  cigarettes at retail shall prominently display on his premises a notice

45-6  that the tax is included in the selling price and is payable under the

45-7  provisions of this chapter.

45-8      Sec. 114. NRS 370.220 is hereby amended to read as follows:

45-9      370.220  In the sale of any cigarette revenue stamps or any

45-10  metered machine settings to a licensed cigarette dealer, the

45-11  Department and its agents shall allow the purchaser a discount of [3]

45-12  0.5 percent against the amount of excise tax otherwise due for the

45-13  services rendered in affixing cigarette revenue stamps or metered

45-14  machine impressions to the cigarette packages.

45-15     Sec. 115.  NRS 370.260 is hereby amended to read as follows:

45-16     370.260  1.  All taxes and license fees imposed by the

45-17  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

45-18  granted as provided by law, must be paid to the Department in the

45-19  form of remittances payable to the Department.

45-20     2.  The Department shall:

45-21     (a) As compensation to the State for the costs of collecting the

45-22  taxes and license fees, transmit each month the sum the Legislature

45-23  specifies from the remittances made to it pursuant to subsection 1

45-24  during the preceding month to the State Treasurer for deposit to the

45-25  credit of the Department. The deposited money must be expended

45-26  by the Department in accordance with its work program.

45-27     (b) From the remittances made to it pursuant to subsection 1

45-28  during the preceding month, less the amount transmitted pursuant to

45-29  paragraph (a), transmit each month the portion of the tax which is

45-30  equivalent to [12.5] 45 mills per cigarette to the State Treasurer for

45-31  deposit to the credit of the Account for the Tax on Cigarettes in the

45-32  State General Fund.

45-33     (c) Transmit the balance of the payments each month to the

45-34  State Treasurer for deposit in the Local Government Tax

45-35  Distribution Account created by NRS 360.660.

45-36     (d) Report to the State Controller monthly the amount of

45-37  collections.

45-38     3.  The money deposited pursuant to paragraph (c) of

45-39  subsection 2 in the Local Government Tax Distribution Account is

45-40  hereby appropriated to Carson City andto each of the counties in

45-41  proportion to their respective populations and must be credited to

45-42  the respective accounts of Carson City and each county.

 

 

 

46-1      Sec. 116.  NRS 370.350 is hereby amended to read as follows:

46-2      370.350  1.  Except as otherwise provided in subsection 3, a

46-3  tax is hereby levied and imposed upon the use of cigarettes in this

46-4  state.

46-5      2.  The amount of the use tax is [17.5] 50 mills per cigarette.

46-6      3.  The use tax does not apply where:

46-7      (a) Nevada cigarette revenue stamps have been affixed to

46-8  cigarette packages as required by law.

46-9      (b) Tax exemption is provided for in this chapter.

46-10     Sec. 117. NRS 370.450 is hereby amended to read as follows:

46-11     370.450  1.  Except as otherwise provided in subsection 2,

46-12  there is hereby imposed upon the purchase or possession of products

46-13  made from tobacco, other than cigarettes, by a customer in this state

46-14  a tax of 30 percent of the wholesale price of those products.

46-15     2.  The provisions of subsection 1 do not apply to those

46-16  products which are:

46-17     (a) Shipped out of the State for sale and use outside the State; or

46-18     (b) Displayed or exhibited at a trade show, convention or other

46-19  exhibition in this state by a manufacturer or wholesale dealer who is

46-20  not licensed in this state.

46-21     3.  This tax must be collected and paid by the wholesale dealer

46-22  to the Department, in accordance with the provisions of NRS

46-23  370.465, after the sale or distribution of those products by the

46-24  wholesale dealer. [The wholesale dealer is entitled to retain 2

46-25  percent of the taxes collected to cover the costs of collecting and

46-26  administering the taxes.]

46-27     4.  Any wholesale dealer who sells or distributes any of those

46-28  products without paying the tax provided for by this section is guilty

46-29  of a misdemeanor.

46-30     Sec. 118. NRS 370.490 is hereby amended to read as follows:

46-31     370.490  1.  The Department shall allow a credit of 30 percent

46-32  of the wholesale price[, less a discount of 2 percent for the services

46-33  rendered in collecting the tax,] for products made from tobacco,

46-34  other than cigarettes, upon which the tax has been paid pursuant to

46-35  NRS 370.450 and that may no longer be sold. If the products have

46-36  been purchased and delivered, a credit memo of the manufacturer is

46-37  required for proof of returned merchandise.

46-38     2.  A credit must also be granted for any products made from

46-39  tobacco, other than cigarettes, shipped from this state and destined

46-40  for retail sale and consumption outside the State on which the tax

46-41  has previously been paid. A duplicate or copy of the invoice is

46-42  required for proof of the sale outside the State.

46-43     3.  A wholesale dealer may claim a credit by filing with the

46-44  Department the proof required by this section. The claim must be

46-45  made on a form prescribed by the Department.

47-1      Sec. 119.   Chapter 375 of NRS is hereby amended by adding

47-2  thereto the provisions set forth as sections 120 and 121 of this act.

47-3      Sec. 120. 1.  In addition to all other taxes imposed on

47-4  transfers of real property, a tax, at the rate of $1.88 for each $500

47-5  of value or fraction thereof that exceeds $100,000 is hereby

47-6  imposed on each deed by which any lands, tenements or other

47-7  realty is granted, assigned, transferred or otherwise conveyed to,

47-8  or vested in, another person.

47-9      2.  The amount of the tax must be computed on the basis of

47-10  the value of the transferred property as declared pursuant to

47-11  NRS 375.060.

47-12     3.  The county recorder of each county shall collect the tax in

47-13  the manner provided in NRS 375.030, except that the amount

47-14  collected must be transmitted to the State Controller for deposit in

47-15  the State General Fund.

47-16     4.  The county recorder of a county:

47-17     (a) Whose population is 100,000 or more may deduct and

47-18  withhold from the taxes collected 0.2 percent of those taxes to

47-19  reimburse the county for the cost of collecting the tax.

47-20     (b) Whose population is less than 100,000 may deduct and

47-21  withhold from the taxes collected 1 percent of those taxes to

47-22  reimburse the county for the cost of collecting the tax.

47-23     Sec. 121.  1.  When requested, the Department shall render

47-24  assistance to the county recorder of a county whose population is

47-25  less than 30,000 relating to the imposition and collection of the tax

47-26  imposed by section 120 of this act.

47-27     2.  The Department is not entitled to receive any fee for

47-28  rendering any assistance pursuant to subsection 1.

47-29     Sec. 122. NRS 375.018 is hereby amended to read as follows:

47-30     375.018  With regard to the administration of [the real property

47-31  transfer tax,] any tax imposed by this chapter, the county recorder

47-32  shall apply the following principles:

47-33     1.  Forms, instructions and regulations governing the

47-34  computation of the amount of tax due must be brief and easily

47-35  understood.

47-36     2.  In cases where another authority, such as the United States

47-37  or this state, also imposes a tax upon the same property or revenue,

47-38  the mechanism for collecting the tax imposed by the county must be

47-39  as nearly compatible with the collection of the other taxes as is

47-40  feasible.

47-41     3.  Unless a change is made necessary by statute or to preserve

47-42  compatibility with a tax imposed by another authority, the forms,

47-43  instructions and regulations must remain the same from year to year,

47-44  to make the taxpayer’s liability as predictable as is feasible.

48-1      4.  Exemptions or waivers, where permitted by statute, must be

48-2  granted:

48-3      (a) Equitably among eligible taxpayers; and

48-4      (b) As sparingly as is consistent with the legislative intent, to

48-5  retain the broadest feasible base for the tax.

48-6      Sec. 123. NRS 375.030 is hereby amended to read as follows:

48-7      375.030  1.  If any deed evidencing a transfer of title subject to

48-8  the tax imposed by NRS 375.020 and section 120 of this act and, if

48-9  applicable, NRS 375.025,is offered for recordation, the county

48-10  recorder shall compute the amount of the tax due and shall collect

48-11  that amount before acceptance of the deed for recordation.

48-12     2.  The buyer and seller are jointly and severally liable for the

48-13  payment of the taxes imposed by NRS 375.020 and 375.025 and

48-14  section 120 of this act and any penalties and interest imposed

48-15  pursuant to subsection 3. The escrow holder is not liable for the

48-16  payment of the taxes imposed by NRS 375.020 and 375.025 and

48-17  section 120 of this act or any penalties or interest imposed pursuant

48-18  to subsection 3.

48-19     3.  If after recordation of the deed, the county recorder

48-20  disallows an exemption that was claimed at the time the deed was

48-21  recorded or through audit or otherwise determines that an additional

48-22  amount of tax is due, the county recorder shall promptly notify the

48-23  person who requested the recording of the deed and the buyer and

48-24  seller of the additional amount of tax due. If the additional amount

48-25  of tax is not paid within 30 days after the date the buyer and seller

48-26  are notified, the county recorder shall impose a penalty of 10

48-27  percent of the additional amount due in addition to interest at the

48-28  rate of 1 percent per month, or portion thereof, of the additional

48-29  amount due calculated from the date of the original recordation of

48-30  the deed on which the additional amount is due through the date on

48-31  which the additional amount due, penalty and interest are paid to the

48-32  county recorder.

48-33     4.  This section does not prohibit a buyer and seller from

48-34  agreeing by contract or otherwise that one party or the other will be

48-35  responsible for the payment of the tax due pursuant to this chapter,

48-36  but such an agreement does not affect the ability of the county

48-37  recorder to collect the tax and any penalties and interest from either

48-38  the buyer or the seller.

48-39     Sec. 124. NRS 375.070 is hereby amended to read as follows:

48-40     375.070  1.  The county recorder shall transmit the proceeds of

48-41  the [real property transfer] tax imposed by NRS 375.020 at the end

48-42  of each quarter in the following manner:

48-43     (a) An amount equal to that portion of the proceeds which is

48-44  equivalent to 10 cents for each $500 of value or fraction thereof

48-45  must be transmitted to the State Controller who shall deposit that

49-1  amount in the Account for Low-Income Housing created pursuant to

49-2  NRS 319.500.

49-3      (b) In a county whose population is more than 400,000, an

49-4  amount equal to that portion of the proceeds which is equivalent to

49-5  60 cents for each $500 of value or fraction thereof must be

49-6  transmitted to the county treasurer for deposit in the county school

49-7  district’s fund for capital projects established pursuant to NRS

49-8  387.328, to be held and expended in the same manner as other

49-9  money deposited in that fund.

49-10     (c) The remaining proceeds must be transmitted to the State

49-11  Controller for deposit in the Local Government Tax Distribution

49-12  Account created by NRS 360.660 for credit to the respective

49-13  accounts of Carson City and each county.

49-14     2.  In addition to any other authorized use of the proceeds it

49-15  receives pursuant to subsection 1, a county or city may use the

49-16  proceeds to pay expenses related to or incurred for the development

49-17  of affordable housing for families whose income does not exceed 80

49-18  percent of the median income for families residing in the same

49-19  county, as that percentage is defined by the United States

49-20  Department of Housing and Urban Development. A county or city

49-21  that uses the proceeds in that manner must give priority to the

49-22  development of affordable housing for persons who are disabled or

49-23  elderly.

49-24     3.  The expenses authorized by subsection 2 include, but are not

49-25  limited to:

49-26     (a) The costs to acquire land and developmental rights;

49-27     (b) Related predevelopment expenses;

49-28     (c) The costs to develop the land, including the payment of

49-29  related rebates;

49-30     (d) Contributions toward down payments made for the purchase

49-31  of affordable housing; and

49-32     (e) The creation of related trust funds.

49-33     Sec. 125. NRS 375.090 is hereby amended to read as follows:

49-34     375.090  The [tax] taxes imposed by NRS 375.020 and 375.025

49-35  [does] and section 120 of this act do not apply to:

49-36     1.  [A mere change in identity, form or place of organization,

49-37  such as a transfer between a corporation and its parent corporation, a

49-38  subsidiary or an affiliated corporation if the affiliated corporation

49-39  has identical common ownership.

49-40     2.] A transfer of title to the United States, any territory or state

49-41  or any agency, department, instrumentality or political subdivision

49-42  thereof.

49-43     [3.] 2.  A transfer of title recognizing the true status of

49-44  ownership of the real property.

50-1      [4.] 3.  A transfer of title without consideration from one joint

50-2  tenant or tenant in common to one or more remaining joint tenants

50-3  or tenants in common.

50-4      [5.  A transfer of title to community property without

50-5  consideration when held in the name of one spouse to both spouses

50-6  as joint tenants or tenants in common, or as community property.

50-7      6.] 4.  A transfer of title between spouses, including gifts [.

50-8      7.  A transfer of title between spouses] , or to effect a property

50-9  settlement agreement or between former spouses in compliance with

50-10  a decree of divorce.

50-11     [8.] 5.  A transfer of title to or from a trust [, if the transfer is

50-12  made] without consideration [, and is made to or from:

50-13     (a) The trustor of the trust;

50-14     (b) The trustor’s legal representative; or

50-15     (c) A person related to the trustor in the first degree of

50-16  consanguinity.

50-17  As used in this subsection, “legal representative” has the meaning

50-18  ascribed to it in NRS 167.020.

50-19     9.] if a certificate of trust is presented at the time of transfer.

50-20     6.  Transfers, assignments or conveyances of unpatented mines

50-21  or mining claims.

50-22     [10.  A transfer, assignment or other conveyance of real

50-23  property to a corporation or other business organization if the person

50-24  conveying the property owns 100 percent of the corporation or

50-25  organization to which the conveyance is made.

50-26     11.] 7.  A transfer, assignment or other conveyance of real

50-27  property if the owner of the property is related to the person to

50-28  whom it is conveyed within the first degree of consanguinity.

50-29     [12.] 8.  The making, delivery or filing of conveyances of real

50-30  property to make effective any plan of reorganization or adjustment:

50-31     (a) Confirmed under the Bankruptcy Act, as amended, 11 U.S.C.

50-32  §§ 101 et seq.;

50-33     (b) Approved in an equity receivership proceeding involving a

50-34  railroad, as defined in the Bankruptcy Act; or

50-35     (c) Approved in an equity receivership proceeding involving a

50-36  corporation, as defined in the Bankruptcy Act,

50-37  if the making, delivery or filing of instruments of transfer or

50-38  conveyance occurs within 5 years after the date of the confirmation,

50-39  approval or change.

50-40     [13.] 9.  The making or delivery of conveyances of real

50-41  property to make effective any order of the Securities and Exchange

50-42  Commission if:

50-43     (a) The order of the Securities and Exchange Commission in

50-44  obedience to which the transfer or conveyance is made recites that

50-45  the transfer or conveyance is necessary or appropriate to effectuate

51-1  the provisions of section 11 of the Public Utility Holding Company

51-2  Act of 1935, 15 U.S.C. § 79k;

51-3      (b) The order specifies and itemizes the property which is

51-4  ordered to be transferred or conveyed; and

51-5      (c) The transfer or conveyance is made in obedience to the

51-6  order.

51-7      [14.  A transfer to an educational foundation. As used in this

51-8  subsection, “educational foundation” has the meaning ascribed to it

51-9  in subsection 3 of NRS 388.750.

51-10     15.  A transfer to a university foundation. As used in this

51-11  subsection, “university foundation” has the meaning ascribed to it in

51-12  subsection 3 of NRS 396.405.

51-13     16.  A transfer, assignment or other conveyance of real property

51-14  to a corporation sole from another corporation sole. As used in this

51-15  subsection, “corporation sole” means a corporation which is

51-16  organized pursuant to the provisions of chapter 84 of NRS.]

51-17     Sec. 126. NRS 375.120 is hereby amended to read as follows:

51-18     375.120  The county recorder shall:

51-19     1.  Conduct and apply audits and other procedures for

51-20  enforcement as uniformly as is feasible.

51-21     2.  Collect [real property transfer] any tax that is due pursuant

51-22  to the provisions of this chapter in an equitable manner, so that

51-23  every taxpayer pays the full amount imposed by law.

51-24     Sec. 127. NRS 375.130 is hereby amended to read as follows:

51-25     375.130  1.  The county recorder may audit all records relating

51-26  to the collection and calculation of [the real property transfer tax.]

51-27  any tax imposed by this chapter. If the county recorder deems it

51-28  necessary to conduct an audit, the audit must be completed within 3

51-29  years after the date of the original recording of the document that

51-30  evidences the transfer of property for which the tax was imposed.

51-31     2.  The county recorder may issue subpoenas to require the

51-32  production of documents necessary for him to determine the amount

51-33  of [real property transfer] the tax due pursuant to this chapter or to

51-34  determine whether a person qualifies for an exemption from taxes

51-35  pursuant to this chapter. The county recorder may have the

51-36  subpoenas served, and upon application of the district attorney, to

51-37  any court of competent jurisdiction, enforced in the manner

51-38  provided by law for the service and enforcement of subpoenas in a

51-39  civil action.

51-40     Sec. 128. NRS 375.160 is hereby amended to read as follows:

51-41     375.160  1.  If any [real property transfer] tax imposed

51-42  pursuant to this chapter is not paid when due, the county may,

51-43  within 3 years after the date that the tax was due, record a certificate

51-44  in the office of the county recorder which states:

52-1      (a) The amount of the [real property transfer] tax and any

52-2  interest or penalties due;

52-3      (b) The name and address of the person who is liable for the

52-4  amount due as they appear on the records of the county; and

52-5      (c) That the county recorder has complied with all procedures

52-6  required by law for determining the amount due.

52-7      2.  From the time of the recording of the certificate, the amount

52-8  due, including interest and penalties, constitutes:

52-9      (a) A lien upon the real property for which the tax was due if the

52-10  person who owes the tax still owns the property; or

52-11     (b) A demand for payment if the property has been sold or

52-12  otherwise transferred to another person.

52-13     3.  The lien has the effect and priority of a judgment lien and

52-14  continues for 5 years after the time of the recording of the certificate

52-15  unless sooner released or otherwise discharged.

52-16     4.  Within 5 years after the date of recording the certificate or

52-17  within 5 years after the date of the last extension of the lien pursuant

52-18  to this subsection, the lien may be extended by recording a new

52-19  certificate in the office of the county recorder. From the time of

52-20  recording the new certificate, the lien is extended for 5 years, unless

52-21  sooner released or otherwise discharged.

52-22     Sec. 129. NRS 375.170 is hereby amended to read as follows:

52-23     375.170  1.  If a person is delinquent in the payment of [the

52-24  real property transfer] any tax imposed by this chapter or has not

52-25  paid the amount of a deficiency determination, the county may bring

52-26  an action in a court of this state, a court of any other state or a court

52-27  of the United States that has competent jurisdiction to collect the

52-28  delinquent or deficient amount, penalties and interest. The action:

52-29     (a) May not be brought if the decision that the payment is

52-30  delinquent or that there is a deficiency determination is on appeal to

52-31  a hearing officer pursuant to NRS 375.320.

52-32     (b) Must be brought not later than 3 years after the payment

52-33  became delinquent or the determination became final.

52-34     2.  The district attorney shall prosecute the action. The

52-35  provisions of the Nevada Revised Statutes, Nevada Rules of Civil

52-36  Procedure and Nevada Rules of Appellate Procedure relating to

52-37  service of summons, pleadings, proofs, trials and appeals are

52-38  applicable to the proceedings. In the action, a writ of attachment

52-39  may issue. A bond or affidavit is not required before an attachment

52-40  may be issued.

52-41     3.  In an action, a certificate by the county recorder showing the

52-42  delinquency is prima facie evidence of:

52-43     (a) The determination of the tax or the amount of the tax;

52-44     (b) The delinquency of the amounts; and

53-1      (c) The compliance by the county recorder with all the

53-2  procedures required by law relating to the computation and

53-3  determination of the amounts.

53-4      Sec. 130. NRS 375.250 is hereby amended to read as follows:

53-5      375.250  1.  The Legislature hereby declares that each

53-6  taxpayer has the right:

53-7      (a) To be treated by officers and employees of the county

53-8  recorder with courtesy, fairness, uniformity, consistency and

53-9  common sense.

53-10     (b) To a prompt response from the county recorder to each

53-11  communication from the taxpayer.

53-12     (c) To provide the minimum documentation and other

53-13  information as may reasonably be required by the county recorder to

53-14  carry out his duties.

53-15     (d) To be notified, in writing, by the county recorder whenever

53-16  an officer or employee of the county recorder determines that the

53-17  taxpayer is entitled to an exemption or has been taxed more than is

53-18  required pursuant to this chapter.

53-19     (e) To written instructions indicating how the taxpayer may

53-20  petition for a refund for overpayment of [real property transfer] any

53-21  tax, interest or penalties.

53-22     (f) To recover an overpayment of [real property transfer] any tax

53-23  promptly upon the final determination of such an overpayment.

53-24     (g) To obtain specific advice from the county recorder

53-25  concerning [real property transfer] any tax.

53-26     (h) In any meeting with the county recorder, including an audit,

53-27  conference, interview or hearing:

53-28         (1) To an explanation by an officer, agent or employee of the

53-29  county recorder that describes the procedures to be followed and the

53-30  rights of the taxpayer thereunder;

53-31         (2) To be represented by himself or anyone who is otherwise

53-32  authorized by law to represent him before the county recorder;

53-33         (3) To make an audio recording using the taxpayer’s

53-34  equipment and at the taxpayer’s expense; and

53-35         (4) To receive a copy of any document or audio recording

53-36  made by or in the possession of the county recorder relating to the

53-37  determination or collection of any tax for which the taxpayer is

53-38  assessed pursuant to this chapter, upon payment of the actual cost to

53-39  the county recorder of making the copy.

53-40     (i) To a full explanation of the authority of the county recorder

53-41  to collect the [real property transfer] tax or to collect a delinquent

53-42  [real property transfer] tax, including, without limitation, the

53-43  procedures and notices for review and appeal that are required for

53-44  the protection of the taxpayer. An explanation which meets the

54-1  requirements of this section must also be included with each notice

54-2  to a taxpayer that an audit will be conducted by the county.

54-3      (j) To the immediate release of any lien which the county

54-4  recorder has placed on real property for the nonpayment of [the real

54-5  property transfer] a tax when:

54-6          (1) The tax is paid;

54-7          (2) The period of limitation for collecting the tax expires;

54-8          (3) The lien is the result of an error by the county recorder;

54-9          (4) The county recorder determines that the taxes, interest

54-10  and penalties are secured sufficiently by a lien on other real

54-11  property;

54-12         (5) The release or subordination of the lien will not

54-13  jeopardize the collection of the taxes, interest and penalties; or

54-14         (6) The release of the lien will facilitate the collection of the

54-15  taxes, interest and penalties.

54-16     (k) To be free from harassment and intimidation by an officer or

54-17  employee of the county recorder for any reason.

54-18     2.  The provisions of this chapter governing the administration

54-19  and collection of taxes by the county recorder must not be construed

54-20  in such a manner as to interfere or conflict with the provisions of

54-21  this section or any applicable regulations.

54-22     3.  The provisions of this section apply to the administration

54-23  and collection of taxes pursuant to this chapter.

54-24     Sec. 131. NRS 375.270 is hereby amended to read as follows:

54-25     375.270  The county recorder shall provide each taxpayer who

54-26  it determines may be liable for taxes pursuant to this chapter with

54-27  simplified written instructions concerning the rights and

54-28  responsibilities of the taxpayer, including the:

54-29     1.  Keeping of records sufficient for audit purposes;

54-30     2.  Procedures for paying [the real property transfer tax;] any

54-31  taxes that are due; and

54-32     3.  Procedures for challenging any liability for [real property

54-33  transfer] any tax, penalties or interest and for requesting refunds of

54-34  any erroneously paid [real property transfer] tax, including the steps

54-35  for appealing a denial thereof.

54-36     Sec. 132. NRS 375.290 is hereby amended to read as follows:

54-37     375.290  A taxpayer is entitled to receive on any overpayment

54-38  of [the real property transfer] any tax imposed by this chapter a

54-39  refund together with interest at a rate determined pursuant to NRS

54-40  17.130. No interest is allowed on a refund of any penalties or

54-41  interest on the [real property transfer] tax that is paid by a taxpayer.

54-42     Sec. 133. NRS 375.300 is hereby amended to read as follows:

54-43     375.300  The county recorder shall provide a taxpayer with a

54-44  response to any written request submitted by the taxpayer that

55-1  relates to a [real property transfer] tax imposed by this chapter

55-2  within 30 days after the county treasurer receives the request.

55-3      Sec. 134.  NRS 375.330 is hereby amended to read as follows:

55-4      375.330  1.  The county recorder may waive any [real property

55-5  transfer] tax, penalty and interest owed by the taxpayer pursuant to

55-6  this chapter, other than the tax imposed by section 120 of this act,

55-7  if the taxpayer meets the criteria adopted by regulation. If a waiver

55-8  is granted pursuant to this subsection, the county shall prepare and

55-9  maintain on file a statement that contains:

55-10     (a) The reason for the waiver;

55-11     (b) The amount of the tax, penalty and interest owed by the

55-12  taxpayer; and

55-13     (c) The amount of the tax, penalty and interest waived by the

55-14  county.

55-15     2.  If the county recorder or a designated hearing officer finds

55-16  that the failure of a person to make a timely payment of [the real

55-17  property transfer] any tax imposed is the result of circumstances

55-18  beyond his control and occurred despite the exercise of ordinary

55-19  care and without intent to avoid such payment, the county recorder

55-20  may relieve him of all or part of any interest or penalty or both.

55-21     3.  If a person proves to the satisfaction of the county recorder

55-22  that he has in good faith remitted the [real property transfer] tax in

55-23  reliance upon written advice provided by an officer or employee of

55-24  the county recorder, an opinion of the district attorney or Attorney

55-25  General, or the written results of an audit of his records conducted

55-26  by the county recorder, the county recorder may not require the

55-27  taxpayer to pay delinquent taxes, penalties or interest if the county

55-28  recorder determines after the completion of a subsequent audit that

55-29  the taxes the taxpayer remitted were deficient.

55-30     Sec. 134.1.  Chapter 218 of NRS is hereby amended by adding

55-31  thereto the provisions set forth as sections 2 to 7, inclusive, of this

55-32  act.

55-33     Sec. 134.2.  As used in sections 2 to 7, inclusive, of this act,

55-34  “Committee” means the Legislative Committee on Taxation,

55-35  Public Revenue and Tax Policy.

55-36     Sec. 134.3.  1.  There is hereby established a Legislative

55-37  Committee on Taxation, Public Revenue and Tax Policy

55-38  consisting of:

55-39     (a) The Speaker of the Assembly, or a member of the Assembly

55-40  designated by the Speaker of the Assembly;

55-41     (b) The Minority Leader of the Assembly, or a member of the

55-42  Assembly designated by the Minority Leader of the Assembly;

55-43     (c) The Majority Leader of the Senate, or a member of the

55-44  Senate designated by the Majority Leader of the Senate;

56-1      (d) The Minority Leader of the Senate, or a member of the

56-2  Senate designated by the Minority Leader of the Senate;

56-3      (e) Two members appointed by the Speaker of the Assembly

56-4  who were members of the Assembly Committee on Taxation

56-5  during the immediately preceding legislative session; and

56-6      (f) Two members appointed by the Majority Leader of the

56-7  Senate who were members of the Senate Committee on Taxation

56-8  during the immediately preceding legislative session.

56-9      2.  The members of the Committee shall elect a Chairman and

56-10  Vice Chairman from among their members. The Chairman must

56-11  be elected from one house of the Legislature and the Vice

56-12  Chairman from the other house. After the initial election of a

56-13  Chairman and Vice Chairman, each of those officers holds office

56-14  for a term of 2 years commencing on July 1 of each odd-numbered

56-15  year. If a vacancy occurs in the Chairmanship or Vice

56-16  Chairmanship, the members of the Committee shall elect a

56-17  replacement for the remainder of the unexpired term.

56-18     3.  Any member of the Committee who is not a candidate for

56-19  reelection or who is defeated for reelection continues to serve until

56-20  the convening of the next session of the Legislature.

56-21     4.  Vacancies on the Committee must be filled in the same

56-22  manner as the original appointments.

56-23     Sec. 134.4.  1.  The members of the Committee shall meet

56-24  throughout each year at the times and places specified by a call of

56-25  the Chairman or a majority of the Committee.

56-26     2.  The Director of the Legislative Counsel Bureau or his

56-27  designee shall act as the nonvoting recording Secretary.

56-28     3.  The Committee shall prescribe regulations for its own

56-29  management and government.

56-30     4.  Except as otherwise provided in subsection 5, five voting

56-31  members of the Committee constitute a quorum.

56-32     5.  Any recommended legislation proposed by the Committee

56-33  must be approved by a majority of the members of the Senate and

56-34  by a majority of the members of the Assembly serving on the

56-35  Committee.

56-36     6.  Except during a regular or special session of the

56-37  Legislature, the members of the Committee are entitled to receive

56-38  the compensation provided for a majority of the members of the

56-39  Legislature during the first 60 days of the preceding regular

56-40  session, the per diem allowance provided for state officers and

56-41  employees generally and the travel expenses provided pursuant to

56-42  NRS 218.2207 for each day or portion of a day of attendance at a

56-43  meeting of the Committee and while engaged in the business of

56-44  the Committee. The salaries and expenses paid pursuant to this

57-1  subsection and the expenses of the Committee must be paid from

57-2  the Legislative Fund.

57-3      Sec. 134.5.  The Committee may:

57-4      1.  Review and study:

57-5      (a) The specific taxes collected in this state, including, without

57-6  limitation, taxes on gross receipts, mining, property, sales or

57-7  services, business profits, employees of business, slot route

57-8  operators and car rental companies;

57-9      (b) The implementation of any taxes, fees and other methods

57-10  for generating public revenue in this state;

57-11     (c) The impact of any changes to taxes, fees and other methods

57-12  for generating public revenue that result from legislation enacted

57-13  by the Legislature on the residents of this state and on the

57-14  businesses located in this state, doing business in this state or

57-15  considering locating in this state;

57-16     (d) The fiscal effects of any taxes, fees and other methods for

57-17  generating public revenue;

57-18     (e) Broad issues of tax policy and fiscal policy relevant to the

57-19  future of the State of Nevada; and

57-20     (f) Any other issues related to taxation, the generation of

57-21  public revenue, tax policy or fiscal policy which affect this state.

57-22     2.  Conduct investigations and hold hearings in connection

57-23  with its powers pursuant to this section.

57-24     3.  Contract with one or more consultants to obtain technical

57-25  advice concerning its review and study.

57-26     4.  Apply for any available grants and accept any gifts, grants

57-27  or donations and use any such gifts, grants or donations to aid the

57-28  Committee in exercising its powers pursuant to this section.

57-29     5.  Request that the Legislative Counsel Bureau assist in the

57-30  research, investigations, hearings, studies and reviews of the

57-31  Committee.

57-32     6.  Recommend to the Legislature, as a result of its review and

57-33  study, any appropriate legislation.

57-34     Sec. 134.6.  1.  If the Committee conducts investigations or

57-35  holds hearings pursuant to subsection 2 of section 5 of this act:

57-36     (a) The Secretary of the Committee or, in his absence, a

57-37  member designated by the Committee may administer oaths;

57-38     (b) The Secretary or Chairman of the Committee may cause

57-39  the deposition of witnesses, residing either within or outside of this

57-40  state, to be taken in the manner prescribed by rule of court for

57-41  taking depositions in civil actions in the district courts; and

57-42     (c) The Chairman of the Committee may issue subpoenas to

57-43  compel the attendance of witnesses and the production of books

57-44  and papers.

58-1      2.  If a witness refuses to attend or testify or produce books or

58-2  papers as required by the subpoena, the Chairman of the

58-3  Committee may report to the district court by a petition which sets

58-4  forth that:

58-5      (a) Due notice has been given of the time and place of

58-6  attendance of the witness or the production of the books or papers;

58-7      (b) The witness has been subpoenaed by the Committee

58-8  pursuant to this section; and

58-9      (c) The witness has failed or refused to attend or produce the

58-10  books or papers required by the subpoena before the Committee

58-11  that is named in the subpoena, or has refused to answer questions

58-12  propounded to him.

58-13  The petition may request an order of the court compelling the

58-14  witness to attend and testify or produce the books and papers

58-15  before the Committee.

58-16     3.  Upon such a petition, the court shall enter an order

58-17  directing the witness to appear before the court at a time and place

58-18  to be fixed by the court in its order, the time to be not more than

58-19  10 days after the date of the order, and to show cause why he has

58-20  not attended or testified or produced the books or papers before

58-21  the Committee. A certified copy of the order must be served upon

58-22  the witness.

58-23     4.  If it appears to the court that the subpoena was regularly

58-24  issued by the Committee, the court shall enter an order that the

58-25  witness appear before the Committee at the time and place fixed in

58-26  the order and testify or produce the required books or papers.

58-27  Failure to obey the order constitutes contempt of court.

58-28     Sec. 134.7.  Each witness who appears before the Committee

58-29  by its order, except a state officer or employee, is entitled to receive

58-30  for his attendance the fees and mileage provided for witnesses in

58-31  civil cases in the courts of record of this state. The fees and

58-32  mileage must be audited and paid upon the presentation of proper

58-33  claims sworn to by the witness and approved by the Secretary and

58-34  Chairman of the Committee.

58-35     Sec. 135.  NRS 233B.039 is hereby amended to read as

58-36  follows:

58-37     233B.039  1.  The following agencies are entirely exempted

58-38  from the requirements of this chapter:

58-39     (a) The Governor.

58-40     (b) The Department of Corrections.

58-41     (c) The University and Community College System of Nevada.

58-42     (d) The Office of the Military.

58-43     (e) [The] Except as otherwise provided in section 78 of this act,

58-44  the State Gaming Control Board.

58-45     (f) The Nevada Gaming Commission.

59-1      (g) The Welfare Division of the Department of Human

59-2  Resources.

59-3      (h) The Division of Health Care Financing and Policy of the

59-4  Department of Human Resources.

59-5      (i) The State Board of Examiners acting pursuant to chapter 217

59-6  of NRS.

59-7      (j) Except as otherwise provided in NRS 533.365, the Office of

59-8  the State Engineer.

59-9      (k) The Division of Industrial Relations of the Department of

59-10  Business and Industry acting to enforce the provisions of

59-11  NRS 618.375.

59-12     (l) The Administrator of the Division of Industrial Relations of

59-13  the Department of Business and Industry in establishing and

59-14  adjusting the schedule of fees and charges for accident benefits

59-15  pursuant to subsection 2 of NRS 616C.260.

59-16     (m) The Board to Review Claims in adopting resolutions to

59-17  carry out its duties pursuant to NRS 590.830.

59-18     2.  Except as otherwise provided in subsection 5 and NRS

59-19  391.323, the Department of Education, the Board of the Public

59-20  Employees’ Benefits Program and the Commission on Professional

59-21  Standards in Education are subject to the provisions of this chapter

59-22  for the purpose of adopting regulations but not with respect to any

59-23  contested case.

59-24     3.  The special provisions of:

59-25     (a) Chapter 612 of NRS for the distribution of regulations by

59-26  and the judicial review of decisions of the Employment Security

59-27  Division of the Department of Employment, Training and

59-28  Rehabilitation;

59-29     (b) Chapters 616A to 617, inclusive, of NRS for the

59-30  determination of contested claims;

59-31     (c) Chapter 703 of NRS for the judicial review of decisions of

59-32  the Public Utilities Commission of Nevada;

59-33     (d) Chapter 91 of NRS for the judicial review of decisions of the

59-34  Administrator of the Securities Division of the Office of the

59-35  Secretary of State; and

59-36     (e) NRS 90.800 for the use of summary orders in contested

59-37  cases,

59-38  prevail over the general provisions of this chapter.

59-39     4.  The provisions of NRS 233B.122, 233B.124, 233B.125 and

59-40  233B.126 do not apply to the Department of Human Resources in

59-41  the adjudication of contested cases involving the issuance of letters

59-42  of approval for health facilities and agencies.

59-43     5.  The provisions of this chapter do not apply to:

59-44     (a) Any order for immediate action, including, but not limited

59-45  to, quarantine and the treatment or cleansing of infected or infested

60-1  animals, objects or premises, made under the authority of the State

60-2  Board of Agriculture, the State Board of Health or any other agency

60-3  of this state in the discharge of a responsibility for the preservation

60-4  of human or animal health or for insect or pest control;

60-5      (b) An extraordinary regulation of the State Board of Pharmacy

60-6  adopted pursuant to NRS 453.2184; or

60-7      (c) A regulation adopted by the State Board of Education

60-8  pursuant to NRS 392.644 or 394.1694.

60-9      6.  The State Board of Parole Commissioners is subject to the

60-10  provisions of this chapter for the purpose of adopting regulations but

60-11  not with respect to any contested case.

60-12     Sec. 136.  Chapter 387 of NRS is hereby amended by adding

60-13  thereto a new section to read as follows:

60-14     1.  On or before July 1 of each year, the Department, in

60-15  consultation with the Budget Division of the Department of

60-16  Administration and the Fiscal Analysis Division of the Legislative

60-17  Counsel Bureau, shall develop or revise, as applicable, a formula

60-18  for determining the minimum amount of money that each school

60-19  district is required to expend each fiscal year for textbooks,

60-20  instructional supplies and instructional hardware. The formula

60-21  must be used only to develop expenditure requirements and must

60-22  not be used to alter the distribution of money for basic support to

60-23  school districts.

60-24     2.  Upon approval of the formula pursuant to subsection 1, the

60-25  Department shall provide written notice to each school district

60-26  within the first 30 days of each fiscal year that sets forth the

60-27  required minimum combined amount of money that the school

60-28  district must expend for textbooks, instructional supplies and

60-29  instructional hardware for that fiscal year.

60-30     3.  On or before January 1 of each year, the Department shall

60-31  determine whether each school district has expended, during the

60-32  immediately preceding fiscal year, the required minimum amount

60-33  of money set forth in the notice provided pursuant to subsection 2.

60-34  In making this determination, the Department shall use the report

60-35  submitted by the school district pursuant to NRS 387.303.

60-36     4.  Except as otherwise provided in subsection 5, if the

60-37  Department determines that a school district has not expended the

60-38  required minimum amount of money set forth in the notice

60-39  provided pursuant to subsection 2, a reduction must be made from

60-40  the basic support allocation otherwise payable to that school

60-41  district in an amount that is equal to the difference between the

60-42  actual combined expenditure for textbooks, instructional supplies

60-43  and instructional hardware and the minimum required combined

60-44  expenditure set forth in the notice provided pursuant to subsection

61-1  2. A reduction in the amount of the basic support allocation

61-2  pursuant to this subsection:

61-3      (a) Does not reduce the amount that the school district is

61-4  required to expend on textbooks, instructional supplies and

61-5  instructional hardware in the current fiscal year; and

61-6      (b) Must not exceed the amount of basic support that was

61-7  provided to the school district for the fiscal year in which the

61-8  minimum expenditure amount was not satisfied.

61-9      5.  If the actual enrollment of pupils in a school district is less

61-10  than the enrollment included in the projections used in the school

61-11  district’s biennial budget submitted pursuant to NRS 387.303, the

61-12  required expenditure for textbooks, instructional supplies and

61-13  instructional hardware pursuant to this section must be reduced

61-14  proportionately.

61-15     Sec. 137.  NRS 387.205 is hereby amended to read as follows:

61-16     387.205  1.  Subject to the limitations set forth in NRS

61-17  387.207 [,] and section 136 of this act,money on deposit in the

61-18  county school district fund or in a separate account, if the board of

61-19  trustees of a school district has elected to establish such an account

61-20  pursuant to the provisions of NRS 354.603, must be used for:

61-21     (a) Maintenance and operation of the public schools controlled

61-22  by the county school district.

61-23     (b) Payment of premiums for Nevada industrial insurance.

61-24     (c) Rent of schoolhouses.

61-25     (d) Construction, furnishing or rental of teacherages, when

61-26  approved by the Superintendent of Public Instruction.

61-27     (e) Transportation of pupils, including the purchase of new

61-28  buses.

61-29     (f) Programs of nutrition, if such expenditures do not curtail the

61-30  established school program or make it necessary to shorten the

61-31  school term, and each pupil furnished lunch whose parent or

61-32  guardian is financially able so to do pays at least the actual cost of

61-33  the lunch.

61-34     (g) Membership fees, dues and contributions to an

61-35  interscholastic activities association.

61-36     (h) Repayment of a loan made from the State Permanent School

61-37  Fund pursuant to NRS 387.526.

61-38     2.  Subject to the limitations set forth in NRS 387.207[,] and

61-39  section 136 of this act, money on deposit in the county school

61-40  district fund, or in a separate account, if the board of trustees of a

61-41  school district has elected to establish such an account pursuant to

61-42  the provisions of NRS 354.603, when available, may be used for:

61-43     (a) Purchase of sites for school facilities.

61-44     (b) Purchase of buildings for school use.

61-45     (c) Repair and construction of buildings for school use.

62-1      Sec. 138.  NRS 387.207 is hereby amended to read as follows:

62-2      387.207  1.  Except as otherwise provided in this section, in

62-3  each school year a school district shall spend for [textbooks,] library

62-4  books and [supplies and materials relating to instruction, including,

62-5  without limitation,] software for computers[,] an amount of money,

62-6  expressed as an amount per pupil, that is at least equal to the

62-7  average of the total amount of money that was expended per year by

62-8  the school district for those items in the immediately preceding 3

62-9  years.

62-10     2.  Except as otherwise provided in this section, in each school

62-11  year a school district shall spend for the purchase of equipment

62-12  relating to instruction, including, without limitation, equipment for

62-13  telecommunications and for the purchase of equipment relating to

62-14  the transportation of pupils, an amount of money, expressed as an

62-15  amount per pupil, that is at least equal to the average of the total

62-16  amount of money that was expended per year by the school district

62-17  for those items in the immediately preceding 3 years.

62-18     3.  Except as otherwise provided in this section, in each school

62-19  year a school district shall spend for the maintenance and repair of

62-20  equipment, vehicles, and buildings and facilities an amount of

62-21  money, expressed as an amount per pupil, that is at least equal to the

62-22  average of the total amount of money that was expended per year by

62-23  the school district for those items in the immediately preceding 3

62-24  years, excluding any amount of money derived from the proceeds of

62-25  bonds.

62-26     4.  A school district may satisfy the expenditures required by

62-27  subsections 1, 2 and 3 if the school district spends an aggregate

62-28  amount of money for all the items identified in those subsections

62-29  that is at least equal to the average of the total amount of money

62-30  expended by the school district per year for all those items in the

62-31  immediately preceding 3 years.

62-32     5.  A school district is not required to satisfy the expenditures

62-33  required by this section for a school year in which:

62-34     (a) The total number of pupils who are enrolled in public

62-35  schools within the school district has declined from the immediately

62-36  preceding school year; or

62-37     (b) The total revenue available in the general fund of the school

62-38  district has declined from the immediately preceding school year.

62-39     Sec. 139. NRS 388.750 is hereby amended to read as follows:

62-40     388.750  1.  An educational foundation:

62-41     (a) Shall comply with the provisions of chapter 241 of NRS;

62-42  and

62-43     (b) Except as otherwise provided in subsection 2, shall make its

62-44  records public and open to inspection pursuant to NRS 239.010 . [;

62-45  and

63-1      (c) Is exempt from the tax on transfers of real property pursuant

63-2  to subsection 14 of NRS 375.090.]

63-3      2.  An educational foundation is not required to disclose the

63-4  names of the contributors to the foundation or the amount of their

63-5  contributions. The educational foundation shall, upon request, allow

63-6  a contributor to examine, during regular business hours, any record,

63-7  document or other information of the foundation relating to that

63-8  contributor.

63-9      3.  As used in this section, “educational foundation” means a

63-10  nonprofit corporation, association or institution or a charitable

63-11  organization that is:

63-12     (a) Organized and operated exclusively for the purpose of

63-13  supporting one or more kindergartens, elementary schools, junior

63-14  high or middle schools or high schools, or any combination thereof;

63-15     (b) Formed pursuant to the laws of this state; and

63-16     (c) Exempt from taxation pursuant to 26 U.S.C. § 501(c)(3).

63-17     Sec. 140.  NRS 391.165 is hereby amended to read as follows:

63-18     391.165  1.  Except as otherwise provided in subsection 3 [of

63-19  this section] and except as otherwise required as a result of NRS

63-20  286.537, the board of trustees of a school district shall pay the cost

63-21  for a licensed teacher to purchase one‑fifth of a year of service

63-22  pursuant to subsection 2 of NRS 286.300 if:

63-23     (a) The teacher is a member of the Public Employees’

63-24  Retirement System and has at least 5 years of service;

63-25     (b) The teacher has been employed as a licensed teacher in this

63-26  state for at least 5 consecutive school years, regardless of whether

63-27  the employment was with one or more school districts in this state;

63-28     (c) Each evaluation of the teacher conducted pursuant to NRS

63-29  391.3125 is at least satisfactory for the years of employment

63-30  required by paragraph (b); and

63-31     (d) In addition to the years of employment required by

63-32  paragraph (b), the teacher has been employed as a licensed teacher

63-33  for [1 school year] 2 school yearsat a school within the school

63-34  district which, [for that school year, carries] during his employment

63-35  at the school:

63-36         (1) Carried the designation of demonstrating need for

63-37  improvement [pursuant to NRS 385.367.] ; or

63-38         (2) At least 65 percent of the pupils who are enrolled in the

63-39  school are children who are at-risk.

63-40  The provisions of this paragraph do not require consecutive years

63-41  of employment or employment at the same school within the

63-42  school district.

63-43     2.  Except as otherwise provided in subsection 3, the board of

63-44  trustees of a school district shall pay the cost for a licensed teacher

63-45  to purchase one‑fifth of a year of service for each year that a teacher

64-1  [is employed as a teacher at a school within the school district that is

64-2  described in paragraph (d)] satisfies the requirements of

64-3  subsection 1.

64-4      3.  In no event may the years of service purchased by a licensed

64-5  teacher as a result of subsection 2 of NRS 286.300 exceed 5 years.

64-6      4.  The board of trustees of a school district shall not:

64-7      (a) Assign or reassign a licensed teacher to circumvent the

64-8  requirements of this section.

64-9      (b) Include[,] as part of a teacher’s salary[,] the costs of paying

64-10  the teacher to purchase service pursuant to this section.

64-11     5.  As used in this section[, “service”] :

64-12     (a) A child is “at-risk” if he is eligible for free or reduced-price

64-13  lunches pursuant to 42 U.S.C. §§ 1751 et. seq.

64-14     (b) “Service” has the meaning ascribed to it in NRS 286.078.

64-15     Sec. 141.  NRS 391.165 is hereby amended to read as follows:

64-16     391.165  1.  Except as otherwise provided in subsection 3 and

64-17  except as otherwise required as a result of NRS 286.537, the board

64-18  of trustees of a school district shall pay the cost for a licensed

64-19  teacher or licensed school psychologistto purchase one‑fifth of a

64-20  year of service pursuant to subsection 2 of NRS 286.300 if:

64-21     (a) The teacher or school psychologist is a member of the Public

64-22  Employees’ Retirement System and has at least 5 years of service;

64-23     (b) The teacher or school psychologisthas been employed as a

64-24  licensed teacher or licensed school psychologist in this state for at

64-25  least 5 consecutive school years, regardless of whether the

64-26  employment was with one or more school districts in this state;

64-27     (c) Each evaluation of the teacher or school psychologist

64-28  conducted pursuant to NRS 391.3125 is at least satisfactory for the

64-29  years of employment required by paragraph (b); and

64-30     (d) In addition to the years of employment required by

64-31  paragraph (b) [, the] :

64-32         (1) The teacher has been employed as a licensed teacher for

64-33  2 school years at a school within the school district which, during

64-34  his employment at the school:

64-35         [(1)] (I) Carried the designation of demonstrating need for

64-36  improvement; or

64-37         [(2)] (II) At least 65 percent of the pupils who are enrolled

64-38  in the school are children who are at-risk[.] ;

64-39         (2) The teacher holds an endorsement in the field of

64-40  mathematics, science, special education or English as a second

64-41  language and has been employed for at least 1 school year to teach

64-42  in the subject area for which he holds an endorsement; or

64-43         (3) The school psychologist has been employed as a

64-44  licensed school psychologist for at least 1 school year.

65-1  The provisions of this paragraph do not require consecutive years of

65-2  employment or employment at the same school within the school

65-3  district.

65-4      2.  Except as otherwise provided in subsection 3, the board of

65-5  trustees of a school district shall pay the cost for a licensed teacher

65-6  or school psychologistto purchase one‑fifth of a year of service for

65-7  each year that a teacher or school psychologist satisfies the

65-8  requirements of subsection 1. If, in 1 school year, a teacher

65-9  satisfies the criteria set forth in both subparagraphs (1) and (2) of

65-10  paragraph (d) of subsection 1, the school district in which the

65-11  teacher is employed is not required to pay for more than one-fifth

65-12  of a year of service pursuant to subsection 2 of NRS 286.300 for

65-13  that school year.

65-14     3.  In no event may the years of service purchased by a licensed

65-15  teacher or school psychologist as a result of subsection 2 of NRS

65-16  286.300 exceed 5 years.

65-17     4.  The board of trustees of a school district shall not:

65-18     (a) Assign or reassign a licensed teacher or school psychologist

65-19  to circumvent the requirements of this section.

65-20     (b) Include[,] as part of a teacher’s or school psychologist’s

65-21  salary[,] the costs of paying the teacher or school psychologistto

65-22  purchase service pursuant to this section.

65-23     5.  As used in this section:

65-24     (a) A child is “at-risk” if he is eligible for free or reduced-price

65-25  lunches pursuant to 42 U.S.C. §§ 1751 et. seq.

65-26     (b) “Service has the meaning ascribed to it in NRS 286.078.

65-27     Sec. 142. NRS 396.405 is hereby amended to read as follows:

65-28     396.405  1.  A university foundation:

65-29     (a) Shall comply with the provisions of chapter 241 of NRS;

65-30     (b) Except as otherwise provided in subsection 2, shall make its

65-31  records public and open to inspection pursuant to NRS 239.010; and

65-32     (c) [Is exempt from the tax on transfers of real property 

65-33  pursuant to subsection 14  of NRS 375.090; and

65-34     (d)] May allow a president or an administrator of the university

65-35  or community college which it supports to serve as a member of its

65-36  governing body.

65-37     2.  A university foundation is not required to disclose the name

65-38  of any contributor or potential contributor to the university

65-39  foundation, the amount of his contribution or any information which

65-40  may reveal or lead to the discovery of his identity. The university

65-41  foundation shall, upon request, allow a contributor to examine,

65-42  during regular business hours, any record, document or other

65-43  information of the foundation relating to that contributor.

66-1      3.  As used in this section, “university foundation” means a

66-2  nonprofit corporation, association or institution or a charitable

66-3  organization that is:

66-4      (a) Organized and operated exclusively for the purpose of

66-5  supporting a university or a community college;

66-6      (b) Formed pursuant to the laws of this state; and

66-7      (c) Exempt from taxation pursuant to 26 U.S.C. § 501(c)(3).

66-8      Sec. 143.  NRS 463.0136 is hereby amended to read as

66-9  follows:

66-10     463.0136  “Associated equipment” means:

66-11     1.  Any equipment or mechanical, electromechanical or

66-12  electronic contrivance, component or machine used remotely or

66-13  directly in connection with gaming, any game, race book or sports

66-14  pool that would not otherwise be classified as a gaming device,

66-15  including dice, playing cards, links which connect to progressive

66-16  slot machines, equipment which affects the proper reporting of gross

66-17  revenue, computerized systems of betting at a race book or sports

66-18  pool, computerized systems for monitoring slot machines and

66-19  devices for weighing or counting money; or

66-20     2.  A computerized system for recordation of sales for use in an

66-21  area subject to the [casino entertainment] tax imposed pursuant to

66-22  [NRS 463.401.] section 76 of this act.

66-23     Sec. 144.  NRS 463.270 is hereby amended to read as follows:

66-24     463.270  1.  Subject to the power of the Board to deny, revoke,

66-25  suspend, condition or limit licenses, any state license in force may

66-26  be renewed by the Board for the next succeeding license period

66-27  upon proper application for renewal and payment of state license

66-28  fees and taxes as required by law and the regulations of the Board.

66-29     2.  All state gaming licenses are subject to renewal on the 1st

66-30  day of each January and all quarterly state gaming licenses on the

66-31  1st day of each calendar quarter thereafter.

66-32     3.  Application for renewal must be filed with the Board and all

66-33  state license fees and taxes required by law, including without

66-34  limitation NRS 463.370, 463.373 to 463.3855, inclusive, [463.401,]

66-35  463.660, 464.015 and 464.040, and section 76 of this act, must be

66-36  paid to the Board on or before the dates respectively provided by

66-37  law for each fee or tax.

66-38     4.  Application for renewal of licenses for slot machines only

66-39  must be made by the operators of the locations where such machines

66-40  are situated.

66-41     5.  Any person failing to pay any state license fees or taxes due

66-42  at the times respectively provided shall pay in addition to such

66-43  license fees or taxes a penalty of not less than $50 or 25 percent of

66-44  the amount due, whichever is the greater, but not more than $1,000

66-45  if the fees or taxes are less than 10 days late and in no case in excess

67-1  of $5,000. The penalty must be collected as are other charges,

67-2  license fees and penalties under this chapter.

67-3      6.  Any person who operates, carries on or exposes for play any

67-4  gambling game, gaming device or slot machine or who

67-5  manufactures, sells or distributes any gaming device, equipment,

67-6  material or machine used in gaming, after his license becomes

67-7  subject to renewal, and thereafter fails to apply for renewal as

67-8  provided in this section, is guilty of a misdemeanor and, in addition

67-9  to the penalties provided by law, is liable to the State of Nevada for

67-10  all license fees, taxes and penalties which would have been due

67-11  upon application for renewal.

67-12     7.  If any licensee or other person fails to renew his license as

67-13  provided in this section the Board may order the immediate closure

67-14  of all his gaming activity until the license is renewed by the

67-15  payment of the necessary fees, taxes, interest and any penalties.

67-16  Except for a license for which fees are based on the gross revenue of

67-17  the licensee, failure to renew a license within 30 days after the date

67-18  required by this chapter shall be deemed a surrender of the license.

67-19     8.  The voluntary surrender of a license by a licensee does not

67-20  become effective until accepted in the manner provided in the

67-21  regulations of the Board. The surrender of a license does not relieve

67-22  the former licensee of any penalties, fines, fees, taxes or interest

67-23  due.

67-24     Sec. 145.  NRS 463.370 is hereby amended to read as follows:

67-25     463.370  1.  Except as otherwise provided in NRS 463.373,

67-26  the Commission shall charge and collect from each licensee a

67-27  license fee based upon all the gross revenue of the licensee as

67-28  follows:

67-29     (a) Three and one-quarter percent of all the gross revenue of

67-30  the licensee which does not exceed $50,000 per calendar month;

67-31     (b) Four and one-quarter percent of all the gross revenue of the

67-32  licensee which exceeds $50,000 per calendar month and does not

67-33  exceed $134,000 per calendar month; and

67-34     (c) Six and [one-quarter] one-half percent of all the gross

67-35  revenue of the licensee which exceeds $134,000 per calendar month.

67-36     2.  Unless the licensee has been operating for less than a full

67-37  calendar month, the Commission shall charge and collect the fee

67-38  prescribed in subsection 1, based upon the gross revenue for the

67-39  preceding calendar month, on or before the 24th day of the

67-40  following month. Except for the fee based on the first full month of

67-41  operation, the fee is an estimated payment of the license fee for the

67-42  third month following the month whose gross revenue is used as its

67-43  basis.

67-44     3.  When a licensee has been operating for less than a full

67-45  calendar month, the Commission shall charge and collect the fee

68-1  prescribed in subsection 1, based on the gross revenue received

68-2  during that month, on or before the 24th day of the following

68-3  calendar month of operation. After the first full calendar month of

68-4  operation, the Commission shall charge and collect the fee based on

68-5  the gross revenue received during that month, on or before the 24th

68-6  day of the following calendar month. The payment of the fee due for

68-7  the first full calendar month of operation must be accompanied by

68-8  the payment of a fee equal to three times the fee for the first full

68-9  calendar month. This additional amount is an estimated payment of

68-10  the license fees for the next 3 calendar months. Thereafter, each

68-11  license fee must be paid in the manner described in subsection 2.

68-12  Any deposit held by the Commission on July 1, 1969, must be

68-13  treated as an advance estimated payment.

68-14     4.  All revenue received from any game or gaming device

68-15  which is operated on the premises of a licensee, regardless of

68-16  whether any portion of the revenue is shared with any other person,

68-17  must be attributed to the licensee for the purposes of this section and

68-18  counted as part of the gross revenue of the licensee. Any other

68-19  person, including, without limitation, an operator of an inter-casino

68-20  linked system, who is authorized to receive a share of the revenue

68-21  from any game, gaming device or inter-casino linked system that is

68-22  operated on the premises of a licensee is liable to the licensee for

68-23  that person’s proportionate share of the license fees paid by the

68-24  licensee pursuant to this section and shall remit or credit the full

68-25  proportionate share to the licensee on or before the 24th day of each

68-26  calendar month. The proportionate share of an operator of an inter-

68-27  casino linked system must be based on all compensation and other

68-28  consideration received by the operator of the inter-casino linked

68-29  system, including, without limitation, amounts that accrue to the

68-30  meter of the primary progressive jackpot of the inter-casino linked

68-31  system and amounts that fund the reserves of such a jackpot, subject

68-32  to all appropriate adjustments for deductions, credits, offsets and

68-33  exclusions that the licensee is entitled to take or receive pursuant to

68-34  the provisions of this chapter. A licensee is not liable to any other

68-35  person authorized to receive a share of the licensee’s revenue from

68-36  any game, gaming device or inter-casino linked system that is

68-37  operated on the premises of the licensee for that person’s

68-38  proportionate share of the license fees to be remitted or credited to

68-39  the licensee by that person pursuant to this section.

68-40     5.  An operator of an inter-casino linked system shall not enter

68-41  into any agreement or arrangement with a licensee that provides for

68-42  the operator of the inter-casino linked system to be liable to the

68-43  licensee for less than its full proportionate share of the license fees

68-44  paid by the licensee pursuant to this section, whether accomplished

68-45  through a rebate, refund, charge-back or otherwise.

69-1      6.  Any person required to pay a fee pursuant to this section

69-2  shall file with the Commission, on or before the 24th day of each

69-3  calendar month, a report showing the amount of all gross revenue

69-4  received during the preceding calendar month. Each report must be

69-5  accompanied by:

69-6      (a) The fee due based on the revenue of the month covered by

69-7  the report; and

69-8      (b) An adjustment for the difference between the estimated fee

69-9  previously paid for the month covered by the report, if any, and

69-10  the fee due for the actual gross revenue earned in that month. If the

69-11  adjustment is less than zero, a credit must be applied to the

69-12  estimated fee due with that report.

69-13     7.  If the amount of license fees required to be reported and paid

69-14  pursuant to this section is later determined to be greater or less than

69-15  the amount actually reported and paid, the Commission shall:

69-16     (a) Charge and collect the additional license fees determined to

69-17  be due, with interest thereon until paid; or

69-18     (b) Refund any overpayment to the person entitled thereto

69-19  pursuant to this chapter, with interest thereon.

69-20  Interest pursuant to paragraph (a) must be computed at the rate

69-21  prescribed in NRS 17.130 from the first day of the first month

69-22  following the due date of the additional license fees until paid.

69-23  Interest pursuant to paragraph (b) must be computed at one-half the

69-24  rate prescribed in NRS 17.130 from the first day of the first month

69-25  following the date of overpayment until paid.

69-26     8.  Failure to pay the fees provided for in this section shall be

69-27  deemed a surrender of the license at the expiration of the period for

69-28  which the estimated payment of fees has been made, as established

69-29  in subsection 2.

69-30     9.  Except as otherwise provided in NRS 463.386, the amount

69-31  of the fee prescribed in subsection 1 must not be prorated.

69-32     10.  Except as otherwise provided in NRS 463.386, if a licensee

69-33  ceases operation, the Commission shall:

69-34     (a) Charge and collect the additional license fees determined to

69-35  be due with interest computed pursuant to paragraph (a) of

69-36  subsection 7; or

69-37     (b) Refund any overpayment to the licensee with interest

69-38  computed pursuant to paragraph (b) of subsection 7,

69-39  based upon the gross revenue of the licensee during the last 3

69-40  months immediately preceding the cessation of operation, or

69-41  portions of those last 3 months.

69-42     11.  If in any month[,] the amount of gross revenue is less than

69-43  zero, the licensee may offset the loss against gross revenue in

69-44  succeeding months until the loss has been fully offset.

70-1      12.  If in any month[,] the amount of the license fee due is less

70-2  than zero, the licensee is entitled to receive a credit against any

70-3  license fees due in succeeding months until the credit has been fully

70-4  offset.

70-5      Sec. 146.  NRS 463.370 is hereby amended to read as follows:

70-6      463.370  1.  Except as otherwise provided in NRS 463.373,

70-7  the Commission shall charge and collect from each licensee a

70-8  license fee based upon all the gross revenue of the licensee as

70-9  follows:

70-10     (a) Three and [one-quarter] one-half percent of all the gross

70-11  revenue of the licensee which does not exceed $50,000 per calendar

70-12  month;

70-13     (b) Four and [one-quarter] one-half percent of all the gross

70-14  revenue of the licensee which exceeds $50,000 per calendar month

70-15  and does not exceed $134,000 per calendar month; and

70-16     (c) Six and [one-half] three-quarters percent of all the gross

70-17  revenue of the licensee which exceeds $134,000 per calendar month.

70-18     2.  Unless the licensee has been operating for less than a full

70-19  calendar month, the Commission shall charge and collect the fee

70-20  prescribed in subsection 1, based upon the gross revenue for the

70-21  preceding calendar month, on or before the 24th day of the

70-22  following month. Except for the fee based on the first full month of

70-23  operation, the fee is an estimated payment of the license fee for the

70-24  third month following the month whose gross revenue is used as its

70-25  basis.

70-26     3.  When a licensee has been operating for less than a full

70-27  calendar month, the Commission shall charge and collect the fee

70-28  prescribed in subsection 1, based on the gross revenue received

70-29  during that month, on or before the 24th day of the following

70-30  calendar month of operation. After the first full calendar month of

70-31  operation, the Commission shall charge and collect the fee based on

70-32  the gross revenue received during that month, on or before the 24th

70-33  day of the following calendar month. The payment of the fee due for

70-34  the first full calendar month of operation must be accompanied by

70-35  the payment of a fee equal to three times the fee for the first full

70-36  calendar month. This additional amount is an estimated payment of

70-37  the license fees for the next 3 calendar months. Thereafter, each

70-38  license fee must be paid in the manner described in subsection 2.

70-39  Any deposit held by the Commission on July 1, 1969, must be

70-40  treated as an advance estimated payment.

70-41     4.  All revenue received from any game or gaming device

70-42  which is operated on the premises of a licensee, regardless of

70-43  whether any portion of the revenue is shared with any other person,

70-44  must be attributed to the licensee for the purposes of this section and

70-45  counted as part of the gross revenue of the licensee. Any other

71-1  person, including, without limitation, an operator of an inter-casino

71-2  linked system, who is authorized to receive a share of the revenue

71-3  from any game, gaming device or inter-casino linked system that is

71-4  operated on the premises of a licensee is liable to the licensee for

71-5  that person’s proportionate share of the license fees paid by the

71-6  licensee pursuant to this section and shall remit or credit the full

71-7  proportionate share to the licensee on or before the 24th day of each

71-8  calendar month. The proportionate share of an operator of an inter-

71-9  casino linked system must be based on all compensation and other

71-10  consideration received by the operator of the inter-casino linked

71-11  system, including, without limitation, amounts that accrue to the

71-12  meter of the primary progressive jackpot of the inter-casino linked

71-13  system and amounts that fund the reserves of such a jackpot, subject

71-14  to all appropriate adjustments for deductions, credits, offsets and

71-15  exclusions that the licensee is entitled to take or receive pursuant to

71-16  the provisions of this chapter. A licensee is not liable to any other

71-17  person authorized to receive a share of the licensee’s revenue from

71-18  any game, gaming device or inter-casino linked system that is

71-19  operated on the premises of the licensee for that person’s

71-20  proportionate share of the license fees to be remitted or credited to

71-21  the licensee by that person pursuant to this section.

71-22     5.  An operator of an inter-casino linked system shall not enter

71-23  into any agreement or arrangement with a licensee that provides for

71-24  the operator of the inter-casino linked system to be liable to the

71-25  licensee for less than its full proportionate share of the license fees

71-26  paid by the licensee pursuant to this section, whether accomplished

71-27  through a rebate, refund, charge-back or otherwise.

71-28     6.  Any person required to pay a fee pursuant to this section

71-29  shall file with the Commission, on or before the 24th day of each

71-30  calendar month, a report showing the amount of all gross revenue

71-31  received during the preceding calendar month. Each report must be

71-32  accompanied by:

71-33     (a) The fee due based on the revenue of the month covered by

71-34  the report; and

71-35     (b) An adjustment for the difference between the estimated fee

71-36  previously paid for the month covered by the report, if any, and

71-37  the fee due for the actual gross revenue earned in that month. If the

71-38  adjustment is less than zero, a credit must be applied to the

71-39  estimated fee due with that report.

71-40     7.  If the amount of license fees required to be reported and paid

71-41  pursuant to this section is later determined to be greater or less than

71-42  the amount actually reported and paid, the Commission shall:

71-43     (a) Charge and collect the additional license fees determined to

71-44  be due, with interest thereon until paid; or

72-1      (b) Refund any overpayment to the person entitled thereto

72-2  pursuant to this chapter, with interest thereon.

72-3  Interest pursuant to paragraph (a) must be computed at the rate

72-4  prescribed in NRS 17.130 from the first day of the first month

72-5  following the due date of the additional license fees until paid.

72-6  Interest pursuant to paragraph (b) must be computed at one-half the

72-7  rate prescribed in NRS 17.130 from the first day of the first month

72-8  following the date of overpayment until paid.

72-9      8.  Failure to pay the fees provided for in this section shall be

72-10  deemed a surrender of the license at the expiration of the period for

72-11  which the estimated payment of fees has been made, as established

72-12  in subsection 2.

72-13     9.  Except as otherwise provided in NRS 463.386, the amount

72-14  of the fee prescribed in subsection 1 must not be prorated.

72-15     10.  Except as otherwise provided in NRS 463.386, if a licensee

72-16  ceases operation, the Commission shall:

72-17     (a) Charge and collect the additional license fees determined to

72-18  be due with interest computed pursuant to paragraph (a) of

72-19  subsection 7; or

72-20     (b) Refund any overpayment to the licensee with interest

72-21  computed pursuant to paragraph (b) of subsection 7,

72-22  based upon the gross revenue of the licensee during the last 3

72-23  months immediately preceding the cessation of operation, or

72-24  portions of those last 3 months.

72-25     11.  If in any month the amount of gross revenue is less than

72-26  zero, the licensee may offset the loss against gross revenue in

72-27  succeeding months until the loss has been fully offset.

72-28     12.  If in any month the amount of the license fee due is less

72-29  than zero, the licensee is entitled to receive a credit against any

72-30  license fees due in succeeding months until the credit has been fully

72-31  offset.

72-32     Sec. 147.  NRS 463.373 is hereby amended to read as follows:

72-33     463.373  1.  Before issuing a state gaming license to an

72-34  applicant for a restricted operation, the Commission shall charge

72-35  and collect from him for each slot machine for each quarter year:

72-36     (a) A license fee of [$61] $81 for each slot machine if he will

72-37  have at least one but not more than five slot machines.

72-38     (b) A license fee of [$305 plus $106] $405 plus $141 for each

72-39  slot machine in excess of five if he will have at least six but not

72-40  more than 15 slot machines.

72-41     2.  The Commission shall charge and collect the fee prescribed

72-42  in subsection 1:

72-43     (a) On or before the last day of the last month in a calendar

72-44  quarter, for the ensuing calendar quarter, from a licensee whose

72-45  operation is continuing.

73-1      (b) In advance from a licensee who begins operation or puts

73-2  additional slot machines into play during a calendar quarter.

73-3      3.  Except as otherwise provided in NRS 463.386, no proration

73-4  of the fee prescribed in subsection 1 may be allowed for any reason.

73-5      4.  The operator of the location where slot machines are situated

73-6  shall pay the fee prescribed in subsection 1 upon the total number of

73-7  slot machines situated in that location, whether or not the machines

73-8  are owned by one or more licensee-owners.

73-9      Sec. 148.  NRS 463.373 is hereby amended to read as follows:

73-10     463.373  1.  Before issuing a state gaming license to an

73-11  applicant for a restricted operation, the Commission shall charge

73-12  and collect from him for each slot machine for each quarter year:

73-13     (a) A license fee of [$81] $92 for each slot machine if he will

73-14  have at least one but not more than five slot machines.

73-15     (b) A license fee of [$405 plus $141] $460 plus $159 for each

73-16  slot machine in excess of five if he will have at least six but not

73-17  more than 15 slot machines.

73-18     2.  The Commission shall charge and collect the fee prescribed

73-19  in subsection 1:

73-20     (a) On or before the last day of the last month in a calendar

73-21  quarter, for the ensuing calendar quarter, from a licensee whose

73-22  operation is continuing.

73-23     (b) In advance from a licensee who begins operation or puts

73-24  additional slot machines into play during a calendar quarter.

73-25     3.  Except as otherwise provided in NRS 463.386, no proration

73-26  of the fee prescribed in subsection 1 may be allowed for any reason.

73-27     4.  The operator of the location where slot machines are situated

73-28  shall pay the fee prescribed in subsection 1 upon the total number of

73-29  slot machines situated in that location, whether or not the machines

73-30  are owned by one or more licensee-owners.

73-31     Sec. 149.  NRS 463.401 is hereby amended to read as follows:

73-32     463.401  1.  In addition to any other license fees and taxes

73-33  imposed by this chapter, a casino entertainment tax equivalent to 10

73-34  percent of all amounts paid for admission, food, refreshments and

73-35  merchandise is hereby levied [, except as provided in subsection 2,]

73-36  upon each licensed gaming establishment in this state where music

73-37  and dancing privileges or any other entertainment is provided to the

73-38  patrons in a cabaret, nightclub, cocktail lounge or casino showroom

73-39  in connection with the serving or selling of food or refreshments or

73-40  the selling of any merchandise. Amounts paid for gratuities directly

73-41  or indirectly remitted to employees of the licensee or for service

73-42  charges, including those imposed in connection with use of credit

73-43  cards or debit cards, that are collected and retained by persons other

73-44  than the licensee are not taxable pursuant to this section.

74-1      2.  [A licensed gaming establishment is not subject to tax

74-2  pursuant to this section if:

74-3      (a) The establishment is licensed for less than 51 slot machines,

74-4  less than six games, or any combination of slot machines and games

74-5  within those respective limits;

74-6      (b) The entertainment is presented in a facility that would not

74-7  have been subject to taxation pursuant to 26 U.S.C. § 4231(6) as that

74-8  provision existed in 1965;

74-9      (c) The entertainment is presented in a facility that would have

74-10  been subject to taxation pursuant to 26 U.S.C. § 4231(1), (2), (3),

74-11  (4) or (5) as those provisions existed in 1965; or

74-12     (d) In other cases, if:

74-13         (1) No distilled spirits, wine or beer is served or permitted to

74-14  be consumed;

74-15         (2) Only light refreshments are served;

74-16         (3) Where space is provided for dancing, no charge is made

74-17  for dancing; and

74-18         (4) Where music is provided or permitted, the music is

74-19  provided without any charge to the owner, lessee or operator of the

74-20  establishment or to any concessionaire.

74-21     3.] The tax imposed by this section does not apply to

74-22  merchandise sold outside the facility in which the entertainment is

74-23  presented, unless the purchase of the merchandise entitles the

74-24  purchaser to admission to the entertainment.

74-25     [4.] 3.  The tax imposed by this section must be paid by the

74-26  licensee of the establishment.

74-27     Sec. 150.  NRS 463.408 is hereby amended to read as follows:

74-28     463.408  1.  As used in this section, “holidays or special

74-29  events” refers to periods during which the influx of tourist activity

74-30  in this state or any area thereof may require additional or alternative

74-31  industry accommodation as determined by the Board.

74-32     2.  Any licensee holding a valid license under this chapter may

74-33  apply to the Board, on application forms prescribed by the Board,

74-34  for a holiday or special event permit to:

74-35     (a) Increase the licensee’s game operations during holidays or

74-36  special events; or

74-37     (b) Provide persons who are attending a special event with

74-38  gaming in an area of the licensee’s establishment to which access by

74-39  the general public may be restricted.

74-40     3.  The application must be filed with the Board at least 15 days

74-41  before the date of the holiday or special event.

74-42     4.  If the Board approves the application, it shall issue to the

74-43  licensee a permit to operate presently existing games or any

74-44  additional games in designated areas of the licensee’s establishment.

74-45  The number of additional games must not exceed 50 percent of the

75-1  number of games operated by the licensee at the time the application

75-2  is filed. The permit must state the period for which it is issued and

75-3  the number, if any, of additional games allowed. For purposes of

75-4  computation, any fractional game must be counted as one full game.

75-5  The licensee shall present any such permit on the demand of any

75-6  inspecting agent of the Board or Board.

75-7      5.  Before issuing any permit, the Board shall charge and collect

75-8  from the licensee a fee of $14 per game per day for each day the

75-9  permit is effective. The fees are in lieu of the fees required under

75-10  NRS 463.380, 463.383 and 463.390.

75-11     6.  The additional games allowed under a permit must not be

75-12  counted in computing the [casino entertainment tax under NRS

75-13  463.401.] tax imposed by section 76 of this act.

75-14     7.  If any such additional games are not removed at the time the

75-15  permit expires, the licensee is immediately subject to the fees

75-16  provided for in this chapter.

75-17     Sec. 151.  NRS 463.770 is hereby amended to read as follows:

75-18     463.770  1.  All gross revenue from operating interactive

75-19  gaming received by an establishment licensed to operate interactive

75-20  gaming, regardless of whether any portion of the revenue is shared

75-21  with another person, must be attributed to the licensee and counted

75-22  as part of the gross revenue of the licensee for the purpose of

75-23  computing the license fee required by NRS 463.370.

75-24     2.  A manufacturer of interactive gaming systems who is

75-25  authorized by an agreement to receive a share of the revenue from

75-26  an interactive gaming system from an establishment licensed to

75-27  operate interactive gaming is liable to the establishment for a

75-28  portion of the license fee paid pursuant to subsection 1. The portion

75-29  for which the manufacturer of interactive gaming systems is liable is

75-30  [6.25] 6.5 percent of the amount of revenue to which the

75-31  manufacturer of interactive gaming systems is entitled pursuant to

75-32  the agreement.

75-33     3.  For the purposes of subsection 2, the amount of revenue to

75-34  which the manufacturer of interactive gaming systems is entitled

75-35  pursuant to an agreement to share the revenue from an interactive

75-36  gaming system:

75-37     (a) Includes all revenue of the manufacturer of interactive

75-38  gaming systems that is his share of the revenue from the interactive

75-39  gaming system pursuant to the agreement; and

75-40     (b) Does not include revenue that is the fixed purchase price for

75-41  the sale of a component of the interactive gaming system.

75-42     Sec. 152.  NRS 463.770 is hereby amended to read as follows:

75-43     463.770  1.  All gross revenue from operating interactive

75-44  gaming received by an establishment licensed to operate interactive

75-45  gaming, regardless of whether any portion of the revenue is shared

76-1  with another person, must be attributed to the licensee and counted

76-2  as part of the gross revenue of the licensee for the purpose of

76-3  computing the license fee required by NRS 463.370.

76-4      2.  A manufacturer of interactive gaming systems who is

76-5  authorized by an agreement to receive a share of the revenue from

76-6  an interactive gaming system from an establishment licensed to

76-7  operate interactive gaming is liable to the establishment for a

76-8  portion of the license fee paid pursuant to subsection 1. The portion

76-9  for which the manufacturer of interactive gaming systems is liable is

76-10  [6.5] 6.75 percent of the amount of revenue to which the

76-11  manufacturer of interactive gaming systems is entitled pursuant to

76-12  the agreement.

76-13     3.  For the purposes of subsection 2, the amount of revenue to

76-14  which the manufacturer of interactive gaming systems is entitled

76-15  pursuant to an agreement to share the revenue from an interactive

76-16  gaming system:

76-17     (a) Includes all revenue of the manufacturer of interactive

76-18  gaming systems that is his share of the revenue from the interactive

76-19  gaming system pursuant to the agreement; and

76-20     (b) Does not include revenue that is the fixed purchase price for

76-21  the sale of a component of the interactive gaming system.

76-22     Sec. 153.  NRS 645B.060 is hereby amended to read as

76-23  follows:

76-24     645B.060  1.  Subject to the administrative control of the

76-25  Director of the Department of Business and Industry, the

76-26  Commissioner shall exercise general supervision and control over

76-27  mortgage brokers doing business in this state.

76-28     2.  In addition to the other duties imposed upon him by law, the

76-29  Commissioner shall:

76-30     (a) Adopt any regulations that are necessary to carry out the

76-31  provisions of this chapter, except as to loan brokerage fees.

76-32     (b) Conduct such investigations as may be necessary to

76-33  determine whether any person has violated any provision of this

76-34  chapter, a regulation adopted pursuant to this chapter or an order of

76-35  the Commissioner.

76-36     (c) Conduct an annual examination of each mortgage broker

76-37  doing business in this state. The annual examination must include,

76-38  without limitation, a formal exit review with the mortgage broker.

76-39  The Commissioner shall adopt regulations prescribing:

76-40         (1) Standards for determining the rating of each mortgage

76-41  broker based upon the results of the annual examination; and

76-42         (2) Procedures for resolving any objections made by the

76-43  mortgage broker to the results of the annual examination. The

76-44  results of the annual examination may not be opened to public

77-1  inspection pursuant to NRS 645B.090 until any objections made by

77-2  the mortgage broker have been decided by the Commissioner.

77-3      (d) Conduct such other examinations, periodic or special audits,

77-4  investigations and hearings as may be necessary and proper for the

77-5  efficient administration of the laws of this state regarding mortgage

77-6  brokers and mortgage agents. The Commissioner shall adopt

77-7  regulations specifying the general guidelines that will be followed

77-8  when a periodic or special audit of a mortgage broker is conducted

77-9  pursuant to this chapter.

77-10     (e) Classify as confidential certain records and information

77-11  obtained by the Division when those matters are obtained from a

77-12  governmental agency upon the express condition that they remain

77-13  confidential. This paragraph does not limit examination by [the] :

77-14         (1) The Legislative Auditor[.] ; or

77-15         (2) The Department of Taxation if necessary to carry out

77-16  the provisions of sections 40 to 64, inclusive, of this act.

77-17     (f) Conduct such examinations and investigations as are

77-18  necessary to ensure that mortgage brokers meet the requirements of

77-19  this chapter for obtaining a license, both at the time of the

77-20  application for a license and thereafter on a continuing basis.

77-21     3.  For each special audit, investigation or examination, a

77-22  mortgage broker shall pay a fee based on the rate established

77-23  pursuant to NRS 658.101.

77-24     Sec. 154.  NRS 645B.670 is hereby amended to read as

77-25  follows:

77-26     645B.670  Except as otherwise provided in NRS 645B.690:

77-27     1.  For each violation committed by an applicant, whether or

77-28  not he is issued a license, the Commissioner may impose upon the

77-29  applicant an administrative fine of not more than $10,000, if the

77-30  applicant:

77-31     (a) Has knowingly made or caused to be made to the

77-32  Commissioner any false representation of material fact;

77-33     (b) Has suppressed or withheld from the Commissioner any

77-34  information which the applicant possesses and which, if submitted

77-35  by him, would have rendered the applicant ineligible to be licensed

77-36  pursuant to the provisions of this chapter; or

77-37     (c) Has violated any provision of this chapter, a regulation

77-38  adopted pursuant to this chapter or an order of the Commissioner in

77-39  completing and filing his application for a license or during the

77-40  course of the investigation of his application for a license.

77-41     2.  For each violation committed by a licensee, the

77-42  Commissioner may impose upon the licensee an administrative fine

77-43  of not more than $10,000, may suspend, revoke or place conditions

77-44  upon his license, or may do both, if the licensee, whether or not

77-45  acting as such:

78-1      (a) Is insolvent;

78-2      (b) Is grossly negligent or incompetent in performing any act for

78-3  which he is required to be licensed pursuant to the provisions of this

78-4  chapter;

78-5      (c) Does not conduct his business in accordance with law or has

78-6  violated any provision of this chapter, a regulation adopted pursuant

78-7  to this chapter or an order of the Commissioner;

78-8      (d) Is in such financial condition that he cannot continue in

78-9  business with safety to his customers;

78-10     (e) Has made a material misrepresentation in connection with

78-11  any transaction governed by this chapter;

78-12     (f) Has suppressed or withheld from a client any material facts,

78-13  data or other information relating to any transaction governed by the

78-14  provisions of this chapter which the licensee knew or, by the

78-15  exercise of reasonable diligence, should have known;

78-16     (g) Has knowingly made or caused to be made to the

78-17  Commissioner any false representation of material fact or has

78-18  suppressed or withheld from the Commissioner any information

78-19  which the licensee possesses and which, if submitted by him, would

78-20  have rendered the licensee ineligible to be licensed pursuant to the

78-21  provisions of this chapter;

78-22     (h) Has failed to account to persons interested for all money

78-23  received for a trust account;

78-24     (i) Has refused to permit an examination by the Commissioner

78-25  of his books and affairs or has refused or failed, within a reasonable

78-26  time, to furnish any information or make any report that may be

78-27  required by the Commissioner pursuant to the provisions of this

78-28  chapter or a regulation adopted pursuant to this chapter;

78-29     (j) Has been convicted of, or entered a plea of nolo contendere

78-30  to, a felony or any crime involving fraud, misrepresentation or

78-31  moral turpitude;

78-32     (k) Has refused or failed to pay, within a reasonable time, any

78-33  fees, assessments, costs or expenses that the licensee is required to

78-34  pay pursuant to this chapter or a regulation adopted pursuant to this

78-35  chapter;

78-36     (l) Has failed to satisfy a claim made by a client which has been

78-37  reduced to judgment;

78-38     (m) Has failed to account for or to remit any money of a client

78-39  within a reasonable time after a request for an accounting or

78-40  remittal;

78-41     (n) Has commingled the money or other property of a client

78-42  with his own or has converted the money or property of others to his

78-43  own use;

78-44     (o) Has engaged in any other conduct constituting a deceitful,

78-45  fraudulent or dishonest business practice;

79-1      (p) Has repeatedly violated the policies and procedures of the

79-2  mortgage broker;

79-3      (q) Has failed to exercise reasonable supervision over the

79-4  activities of a mortgage agent as required by NRS 645B.460;

79-5      (r) Has instructed a mortgage agent to commit an act that would

79-6  be cause for the revocation of the license of the mortgage broker,

79-7  whether or not the mortgage agent commits the act;

79-8      (s) Has employed a person as a mortgage agent or authorized a

79-9  person to be associated with the licensee as a mortgage agent at a

79-10  time when the licensee knew or, in light of all the surrounding facts

79-11  and circumstances, reasonably should have known that the person:

79-12         (1) Had been convicted of, or entered a plea of nolo

79-13  contendere to, a felony or any crime involving fraud,

79-14  misrepresentation or moral turpitude; or

79-15         (2) Had a financial services license or registration suspended

79-16  or revoked within the immediately preceding 10 years; [or]

79-17     (t) Has failed to pay the tax imposed pursuant to the provisions

79-18  of sections 40 to 64, inclusive, of this act; or

79-19     (u) Has not conducted verifiable business as a mortgage broker

79-20  for 12 consecutive months, except in the case of a new applicant.

79-21  The Commissioner shall determine whether a mortgage broker is

79-22  conducting business by examining the monthly reports of activity

79-23  submitted by the licensee or by conducting an examination of the

79-24  licensee.

79-25     Sec. 155.  NRS 645E.300 is hereby amended to read as

79-26  follows:

79-27     645E.300  1.  Subject to the administrative control of the

79-28  Director of the Department of Business and Industry, the

79-29  Commissioner shall exercise general supervision and control over

79-30  mortgage companies doing business in this state.

79-31     2.  In addition to the other duties imposed upon him by law, the

79-32  Commissioner shall:

79-33     (a) Adopt any regulations that are necessary to carry out the

79-34  provisions of this chapter, except as to loan fees.

79-35     (b) Conduct such investigations as may be necessary to

79-36  determine whether any person has violated any provision of this

79