Senate Bill No. 105–Senator Neal
February 12, 2001
Referred to Committee on Taxation
– Matter in bolded italics is new; matter
[ omitted material] is material to be omitted.
AN ACT relating to gaming; increasing the state license fee based upon the highest tier of the gross revenue of gaming licensees; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-2 463.370 1. Except as otherwise provided in NRS 463.373, the
1-3 commission shall charge and collect from each licensee a license fee based
1-4 upon all the gross revenue of the licensee as follows:
1-5 Three percent of all the gross revenue of the licensee which does not
1-6 exceed $50,000 per calendar month;
1-7 Four percent of all the gross revenue of the licensee which exceeds
1-8 $50,000 per calendar month and does not exceed $134,000 per calendar
1-9 month; and
1-10 [Six] Ten and one-quarter percent of all the gross revenue of the licensee
1-11 which exceeds $134,000 per calendar month.
1-12 2. Unless the licensee has been operating for less than a full calendar
1-13 month, the commission shall charge and collect the fee prescribed in
1-14 subsection 1, based upon the gross revenue for the preceding calendar
1-15 month, on or before the 24th day of the following month. Except for the fee
1-16 based on the first full month of operation, the fee is an estimated payment
1-17 of the license fee for the third month following the month whose gross
1-18 revenue is used as its basis.
1-19 3. When a licensee has been operating for less than a full calendar
1-20 month, the commission shall charge and collect the fee prescribed in
1-21 subsection 1, based on the gross revenue received during that month, on or
1-22 before the 24th day of the following calendar month of operation. After the
1-23 first full calendar month of operation, the commission shall charge and
2-1 collect the fee based on the gross revenue received during that month, on or
2-2 before the 24th day of the following calendar month. The payment of the
2-3 fee due for the first full calendar month of operation must be accompanied
2-4 by the payment of a fee equal to three times the fee for the first full
2-5 calendar month. This additional amount is an estimated payment of the
2-6 license fees for the next 3 calendar months. Thereafter, each license fee
2-7 must be paid in the manner described in subsection 2. Any deposit held by
2-8 the commission on July 1, 1969, must be treated as an advance estimated
2-10 4. All revenue received from any game or gaming device which is
2-11 operated on the premises of a licensee, regardless of whether any portion of
2-12 the revenue is shared with any other person, must be attributed to the
2-13 licensee for the purposes of this section and counted as part of the gross
2-14 revenue of the licensee. Any other person, including, without limitation, an
2-15 operator of an inter-casino linked system, who is authorized to receive a
2-16 share of the revenue from any game, gaming device or inter-casino linked
2-17 system that is operated on the premises of a licensee is liable to the licensee
2-18 for that person’s proportionate share of the license fees paid by the licensee
2-19 pursuant to this section and shall remit or credit the full proportionate share
2-20 to the licensee on or before the 24th day of each calendar month. The
2-21 proportionate share of an operator of an inter-casino linked system must be
2-22 based on all compensation and other consideration received by the operator
2-23 of the inter-casino linked system, including, without limitation, amounts
2-24 that accrue to the meter of the primary progressive jackpot of the inter-
2-25 casino linked system and amounts that fund the reserves of such a jackpot,
2-26 subject to all appropriate adjustments for deductions, credits, offsets and
2-27 exclusions that the licensee is entitled to take or receive pursuant to the
2-28 provisions of this chapter. A licensee is not liable to any other person
2-29 authorized to receive a share of the licensee’s revenue from any game,
2-30 gaming device or inter-casino linked system that is operated on the
2-31 premises of the licensee for that person’s proportionate share of the license
2-32 fees to be remitted or credited to the licensee by that person pursuant to this
2-34 5. An operator of an inter-casino linked system shall not enter into any
2-35 agreement or arrangement with a licensee that provides for the operator of
2-36 the inter-casino linked system to be liable to the licensee for less than its
2-37 full proportionate share of the license fees paid by the licensee pursuant to
2-38 this section, whether accomplished through a rebate, refund, charge-back
2-39 or otherwise.
2-40 6. Any person required to pay a fee pursuant to this section shall file
2-41 with the commission, on or before the 24th day of each calendar month, a
2-42 report showing the amount of all gross revenue received during the
2-43 preceding calendar month. Each report must be accompanied by:
2-44 (a) The fee due based on the revenue of the month covered by the
2-45 report; and
2-46 (b) An adjustment for the difference between the estimated fee
2-47 previously paid for the month covered by the report, if any, and the fee due
2-48 for the actual gross revenue earned in that month. If the adjustment is less
2-49 than zero, a credit must be applied to the estimated fee due with that report.
3-1 7. If the amount of license fees required to be reported and paid
3-2 pursuant to this section is later determined to be greater or less than the
3-3 amount actually reported and paid, the commission shall:
3-4 (a) Charge and collect the additional license fees determined to be due,
3-5 with interest thereon until paid; or
3-6 (b) Refund any overpayment to the person entitled thereto pursuant to
3-7 this chapter, with interest thereon.
3-8 Interest must be computed at the rate prescribed in NRS 17.130 from the
3-9 first day of the first month following either the due date of the additional
3-10 license fees or the date of overpayment until paid.
3-11 8. Failure to pay the fees provided for in this section shall be deemed a
3-12 surrender of the license at the expiration of the period for which the
3-13 estimated payment of fees has been made, as established in subsection 2.
3-14 9. Except as otherwise provided in NRS 463.386, the amount of the
3-15 fee prescribed in subsection 1 must not be prorated.
3-16 10. Except as otherwise provided in NRS 463.386, if a licensee ceases
3-17 operation, the commission shall:
3-18 (a) Charge and collect the additional license fees determined to be due
3-19 with interest; or
3-20 (b) Refund any overpayment, with interest thereon, to the licensee,
3-21 based upon the gross revenue of the licensee during the last 3 months
3-22 immediately preceding the cessation of operation, or portions of those last
3-23 3 months.
3-24 11. If in any month [,] the amount of gross revenue is less than zero,
3-25 the licensee may offset the loss against gross revenue in succeeding months
3-26 until the loss has been fully offset.
3-27 12. If in any month [,] the amount of the license fee due is less than
3-28 zero, the licensee is entitled to receive a credit against any license fees due
3-29 in succeeding months until the credit has been fully offset.
3-30 Sec. 2. This act becomes effective on July 1, 2001.