[Rev. 3/27/2014 6:43:54 PM]

 

This chapter of NAC has changes which have been adopted but have not been codified; you can see those changes by viewing the following regulation(s) on the Nevada Register of Administrative Regulations: R150-10, R110-12, R120-13

[NAC-360 Revised Date: 4-12]

CHAPTER 360 - REVENUE AND TAXATION: GENERALLY

GENERAL PROVISIONS

360.010              Definitions.

360.015              “Board” defined.

360.020              “Commission” defined.

360.025              “Department” defined.

360.030              “Director” defined.

360.035              “Hearing officer” defined.

360.040              “Staff” defined.

360.042              Taxpayers’ Bill of Rights: Publication and distribution of informational pamphlet; written instructions concerning rights and responsibilities of taxpayers; periodical newsletter with information on common errors; timely response to request of taxpayer; agreements for payment of tax in installments.

PRACTICE BEFORE THE NEVADA TAX COMMISSION

General Provisions

360.043              Scope; construction; deviation.

360.045              Communications.

360.050              Fees and remittances.

360.055              Hearing calendar; notice of meetings of Commission.

360.056              Testimony must be under oath.

360.057              Certificate of service.

360.058              Transcripts.

360.060              Meetings and hearings: Conduct required; smoking prohibited.

Parties; Legal Representation

360.065              Classification of parties.

360.070              Interveners.

360.080              Rights of petitioner and staff at evidentiary hearing.

360.085              Representation of parties; qualifications of attorneys.

360.090              Representation of parties and appearance as expert witness by former employee of Department or Attorney General’s Office limited.

Hearings on Petitions for Redetermination

360.095              Notice; location.

360.096              Petition for redetermination in contested case; issues.

360.100              Prehearing conferences.

360.120              Continuances; recesses.

360.125              Failure of party to appear.

360.130              Burden of proof; presentation of evidence.

360.135              Subpoenas.

360.145              Admission of evidence; depositions; affidavits.

360.150              Official notice.

360.155              Briefs.

360.170              Duties of hearing officer after hearing.

Appeals

360.172              Notice of appeal: Contents.

360.173              Notice of appeal: Timely filing; extension of time for filing.

360.174              Determination of effect of appeal on local governmental revenue; provision of notice of appeal to certain persons; intervention by certain local governments.

360.175              Appeal of decision of hearing officer.

360.176              Presentation of arguments in appellate hearing.

360.177              Refund or credit following unsuccessful appeal by Department.

360.181              Appeal of taxpayer concerning liability for tax: “Trade secret” interpreted.

360.182              Appeal of taxpayer concerning liability for tax: Request for and conduct of closed hearing.

360.185              Rehearing or reconsideration of decisions of Commission.

Other Hearings and Decisions

360.186              Appeal of valuation of centrally assessed property.

360.187              Notice of hearing before order to seal and padlock business.

360.188              Decisions of Commission in contested cases not receiving evidentiary hearing: Form; delivery.

Advisory Opinions

360.190              Petitions: Authority; form; contents.

360.195              Jurisdiction.

360.200              Opinions: Issuance; appeals.

ESTIMATION OF POPULATION

360.300              Definitions.

360.305              “Average household size” defined.

360.311              “Census” defined.

360.315              “City-county ratio” defined.

360.317              “Decennial census ratio” defined.

360.320              “Group quarters” defined.

360.325              “Household” defined.

360.330              “Housing unit” defined.

360.335              “Housing unit model” defined.

360.340              “Nevada regression model” defined.

360.345              “On-site count” defined.

360.350              “Separate living quarters” defined.

360.352              “Town-county ratio” defined.

360.355              “Vacancy rate” defined.

360.360              Use of table of residence rules issued by Bureau of the Census.

360.365              Determination of estimates for State and counties.

360.367              Determination of estimates for townships.

360.368              Determination of estimates for unincorporated towns.

360.370              Determination of estimates for incorporated cities.

360.373              Use of population count from decennial census.

360.375              Use of on-site count.

360.377              Use of population count from special census.

360.380              Accommodations included in inventory of housing units.

360.385              Classification of housing units as occupied or vacant.

360.390              Appeal of estimate for county, incorporated city or unincorporated town.

PAYMENT AND COLLECTION OF TAXES AND FEES

360.395              Amount of penalty for late payment.

360.396              Waiver or reduction of penalty or interest for late payment.

360.397              Request for waiver or reduction of penalty or interest: Generally.

360.398              Request for waiver or reduction of penalty or interest in conjunction with petition for redetermination.

360.401              Acceptance of late return filed after deficiency determination is proposed.

360.405              Conditions for relief from penalties and interest on certain taxes or fees due before July 1, 2002.

360.407              Conditions for relief from penalties and interest on certain taxes or fees due before January 1, 2006.

360.410              Dishonored checks; returned checks.

360.420              Lien upon real property as security for payment.

360.425              Application by minor for business license or seller’s permit: Documentation of responsibility.

360.430              Liability of successor or purchaser of business or stock of goods.

360.432              Contract with private debt collector: Authorization by Commission; prior notification of debtor by Department.

360.435              Sales and use taxes: Failure to file return or filing of incorrect, false or fraudulent return.

COMPROMISE OF LIABILITY OF TAXPAYER

360.437              Interpretation of certain statutory terms.

360.438              Submission and withdrawal of offer to compromise; action by Department and Commission; effect of compromise.

VOLUNTARY DISCLOSURE OF FAILURE TO FILE RETURN

360.440              Application for voluntary disclosure.

360.442              Duties of taxpayer after approval of application.

360.444              Circumstances under which Commission will not consider tax liability as being voluntarily disclosed.

360.446              Assessment of penalty and interest on tax liability; appeal of assessment.

360.448              Rights retained by Department.

AGREEMENT FOR PAYMENT OF TAXES IN INSTALLMENTS

360.450              Agreement for payment over period of 12 months or less.

360.452              Requirements for agreement; personal guaranty.

360.454              Determination of maximum amount of tax liability.

360.456              Agreement for payment over period of more than 12 months.

360.458              Review by Commission.

360.460              Request when tax liability or period of payment excessive; decision by Commission.

360.462              Termination, alteration or modification of agreement.

360.464              Applicability.

PARTIAL ABATEMENT OF CERTAIN TAXES

Abatements for New or Expanded Business

360.466              Definitions.

360.468              “Commission” defined.

360.469              “Eligible machinery or equipment” defined.

360.470              “Partial abatement” defined.

360.472              Application: Date of submittal; consideration by Commission; certificate of eligibility upon approval.

360.474              Factors considered by Commission.

360.4743            Property tax: Percentage, duration and commencement of abatement; certificate of eligibility.

360.4745            Business tax: Applicability of partial abatement.

360.475              Business tax: Date of eligibility; determination of amount of capital investment required; filing of form of compliance with proof of capital investment.

360.4755            Local school support tax: Determination of eligibility of machinery or equipment.

360.476              Local school support tax: Date of eligibility of machinery or equipment.

360.4765            Minimum period of employment of required number of employees.

360.477              Refund upon approval of application.

360.4775            Determination of tax owed upon failure to continue to meet requirements; appeal.

Miscellaneous Abatements

360.478              Abatements for new grocery store within Southern Nevada Enterprise Community.

360.4785            Abatements for expansion of grocery store within Southern Nevada Enterprise Community.

360.479              Abatements for certain energy-efficient structures: Interpretation of certain statutory terms.

OVERPAYMENTS, CREDITS AND REFUNDS

General Provisions

360.480              Documentation required with claim for refund; time for filing claim for refund of interest or penalty.

Sales and Use Taxes

360.490              Claim for credit or refund: Authorization and requirements for filing; action upon approval.

360.492              Provision of credit or refund to customer; resale of returned property.

360.494              Extension of period for filing formal claim.

360.496              Appeal of denial of claim.

Business Tax

360.502              “Business tax” defined.

360.504              Filing of claim for refund of overpayment.

360.506              Certification of excess amount collected; provision of credit and refund.

360.508              Limitations on claims for refund or credit; form and contents of claim; failure to file claim; rejection of claim.

360.510              Overpayment due to error or omission in previously filed return; authority to request credit or refund; action on approval of claim.

360.512              Extension of period for filing formal claim.

360.514              Claims filed on or before September 30, 2003: Disallowance and appeal; judicial enforcement.

360.516              Claims filed on or after October 1, 2003: Disallowance and appeal; judicial enforcement.

ELECTRONIC SUBMISSION OF RETURNS AND REMISSION OF PAYMENTS

360.550              Definitions.

360.552              “Authorized user” defined.

360.554              “Automated clearinghouse” and “ACH” defined.

360.556              “Automated clearinghouse credit” defined.

360.558              “Automated clearinghouse debit” defined.

360.560              “Electronic return” defined.

360.562              “Electronic signature” defined.

360.564              “Electronic transfer of money” defined.

360.566              “Financial institution” defined.

360.568              “NevadaTax access code” defined.

360.570              “Permit” defined.

360.572              “Security access” defined.

360.574              “Signature” defined.

360.576              “Sole proprietor” defined.

360.578              “Taxpayer account security administrator” defined.

360.580              “Transaction fee” defined.

360.582              “Website user” defined.

360.584              Applicability of provisions.

360.586              Taxpayer service center website.

360.588              Online registration with Department.

360.590              Taxpayer account security administrator: Responsibility for authorized user.

360.592              Electronic filing of documents: Signature.

360.594              Electronic returns; zero returns.

360.596              Electronic transfers of money.

360.598              Maintenance of records by taxpayers.

CLAIMS OF OWNERSHIP INTEREST IN PROPERTY TRANSMITTED TO OR SEIZED BY DEPARTMENT

360.610              Written claim: Executed under oath; contents; action of Department on filing.

360.612              Administrative hearing: Date of hearing; notice; procedure; notice of findings of fact, conclusions of law and decision; appeal.

DISTRIBUTION OF PROCEEDS OF CERTAIN TAXES TO LOCAL GOVERNMENT

360.650              Determination of need for adjustment: Requirements for review; notification of local government or special district; annual report of findings.

AUDITS

Audits of Taxpayers

360.700              Contact to schedule appointment; contents of auditor’s letter; period covered by audit; written request for extension of commencement date or estimated completion date; consequences of failure to provide necessary records.

360.702              Taxpayer’s reliance on written advice; review of documentation by Director and recommendation to Commission regarding waiver of tax, interest or penalty.

360.704              Letter to taxpayer addressing audit issues upon completion of audit.

360.706              Notice of deficiency determination; petition for redetermination; extension for filing petition; Department review; use of hearing officer; prehearing statement; extension for filing prehearing statement; notice of hearing; withdrawal of petition.

Performance Audits of Certain County Officers

360.720              Definitions.

360.722              “Auditee” defined.

360.724              “Performance audit” defined.

360.726              “Responsible county officer” defined.

360.728              Periodic conduct of audits by Department; qualifications of employees conducting audits.

360.730              Duties of responsible county officers and their staff; maintenance of confidentiality by Department.

360.732              Preliminary report of Department; statement of explanation or rebuttal by auditee; presentation and dissemination of final written report.

360.734              Plan for corrective action: Notification by Commission; submission by auditee; duties of Department.

360.736              Report following submission of plan for corrective action: Duties of auditee and Department; review by Commission.

STATE BUSINESS LICENSES

360.750              Definitions.

360.752              “Average annual wage” defined.

360.754              “Business” defined.

360.756              “Federal tax year” defined.

360.758              “State business license” defined.

360.760              “Person who operates a business from his or her home” interpreted.

360.766              Home-based businesses: Applicability of exemption from licensing; requirement to obtain license.

360.768              Home-based businesses: Liability for annual fee.

360.772              Exemption of certain persons from requirement to obtain license for activity conducted in furtherance of business.

 

GENERAL PROVISIONS

      NAC 360.010  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 360.015 to 360.040, inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification)

      NAC 360.015  “Board” defined. (NRS 360.090)  “Board” means the State Board of Equalization.

     [Tax Comm’n, Practice Rule No. 7, eff. 11-15-77]

      NAC 360.020  “Commission” defined. (NRS 360.090)  “Commission” means the Nevada Tax Commission.

     [Tax Comm’n, Practice Rule No. 8, eff. 11-15-77]

      NAC 360.025  “Department” defined. (NRS 360.090)  “Department” means the Department of Taxation.

     [Tax Comm’n, Practice Rule No. 9, eff. 11-15-77]

      NAC 360.030  “Director” defined. (NRS 360.090)  “Director” means the Executive Director of the Department.

     [Tax Comm’n, Practice Rule No. 10, eff. 11-15-77]

      NAC 360.035  “Hearing officer” defined. (NRS 360.090)  “Hearing officer” means the Director or any other person the Commission may designate.

     [Tax Comm’n, Practice Rule No. 11, eff. 11-15-77]

      NAC 360.040  “Staff” defined. (NRS 360.090)  “Staff” means the staff of the Department.

     [Tax Comm’n, Practice Rule No. 16, eff. 11-15-77]

      NAC 360.042  Taxpayers’ Bill of Rights: Publication and distribution of informational pamphlet; written instructions concerning rights and responsibilities of taxpayers; periodical newsletter with information on common errors; timely response to request of taxpayer; agreements for payment of tax in installments. (NRS 360.090, 360.2915, 360.292, 360.2925, 360.293)

     1.  NRS 360.291, the Taxpayers’ Bill of Rights, specifies the rights of the taxpayers of Nevada. These rights, summarized in pamphlet form, will be furnished to all taxpayers and any other person upon request and will be updated as needed. The Department shall support not only the letter, but also the spirit, of the provisions of the Taxpayers’ Bill of Rights.

     2.  The Department shall provide:

     (a) Written instructions advising taxpayers of their rights and responsibilities;

     (b) Information concerning the most common errors made by taxpayers which will be published periodically in the newsletter of the Department entitled, Nevada Tax Notes; and

     (c) A written response to each written request submitted by a taxpayer, within 30 days after receiving the request, unless other arrangements have been made in advance.

     3.  The Department may accept installment payments over a period exceeding 12 months upon the execution of a written instrument between the taxpayer and the Department. The Director’s approval is required before any such agreement becomes effective.

     (Added to NAC by Tax Comm’n, eff. 1-16-92)—(Substituted in revision for NAC 360.500)

PRACTICE BEFORE THE NEVADA TAX COMMISSION

General Provisions

      NAC 360.043  Scope; construction; deviation. (NRS 360.090)

     1.  The provisions of NAC 360.043 to 360.200, inclusive:

     (a) Govern the practice and procedure in contested cases before the Commission and Department.

     (b) Govern all practice and procedure before the Commission or Department under titles 31 and 32 of NRS.

     (c) Will be liberally construed to secure the just, speedy and economical determination of all issues presented to the Commission or Department.

     2.  In special cases, where good cause appears, not contrary to statute, deviation from these rules, if stipulated to by all parties of record, will be permitted.

     [Tax Comm’n, Practice Rule No. 1, eff. 11-15-77; A 12-20-79; No. 2, part No. 3 & No. 5, eff. 11-15-77]—(NAC A by R112-07, 12-4-2007; R140-07, 1-30-2008; R175-08, 10-15-2010)

      NAC 360.045  Communications. (NRS 360.090)

     1.  All pleadings, including, but not limited to, complaints, petitions, answers, briefs, motions, affidavits and applications, should be addressed to the Director and not to individual members of the Commission or its staff. All pleadings are deemed to be officially received by the Department when a true copy of the paper or document, properly addressed and stamped, is deposited in the United States mail.

     2.  Informal communications may be made with individual members of the staff and these communications and documents are deemed to be officially received by the Department when they are properly addressed and stamped and deposited in the United States mail.

     3.  Informal communications from the Department or Commission must be signed by the responsible staff member or Commissioner.

     4.  Each communication must be limited to one subject, contain the name and address of the person originating the communication and the appropriate permit or account number, if any, pertaining to the subject of the communication.

     [Tax Comm’n, Practice Rule No. 17, eff. 11-15-77; A 12-20-79; No. 19, eff. 11-15-77]

      NAC 360.050  Fees and remittances. (NRS 360.090)

     1.  Fees and remittances to the Department must be by money order, bank draft or check payable to the Department.

     2.  Remittances in currency or coin are wholly at the risk of the remitter and the Department assumes no responsibility for loss thereof.

     3.  Postage stamps will not be accepted as remittances.

     [Tax Comm’n, Practice Rule No. 20, eff. 11-15-77]

      NAC 360.055  Hearing calendar; notice of meetings of Commission. (NRS 360.090)

     1.  A hearing calendar will be maintained by the Director and current assignments for hearings will be made from the calendar. A current copy of the hearing calendar will be posted at all of the offices of the Department.

     2.  Notice of the meetings of the Commission will be given to the public by posting a notice and an agenda at the Carson City, Reno, Las Vegas and Elko offices of the Department at least 3 working days before the meeting.

     [Tax Comm’n, Practice Rule No. 21, eff. 11-15-77]

      NAC 360.056  Testimony must be under oath. (NRS 360.090)  Oral evidence will be taken only upon oath or affirmation administered by the hearing officer, Director or a Commissioner. Before taking the witness stand, each person must swear, or affirm, that the testimony he or she is about to give will be the truth, the whole truth and nothing but the truth.

     [Tax Comm’n, Practice Rule No. 30, eff. 11-15-77]—(Substituted in revision for NAC 360.140)

      NAC 360.057  Certificate of service. (NRS 360.090)  With all documents required to be served, an acknowledgment of service or a certificate in substantially the following form must be included:

 

     I hereby certify that I have this day served the foregoing document upon all parties of record in this proceeding (by delivering a copy thereof in person to ................) (by mailing a copy thereof, properly addressed, with postage prepaid, to .................)

Dated at ..................., this .........(day) of .................(month) of .........(year)

 

                                                                                                                        ...................................

                                                                                                                                    Signature

 

     [Tax Comm’n, Practice Rule No. 18, eff. 11-15-77]—(Substituted in revision for NAC 360.160)

      NAC 360.058  Transcripts. (NRS 360.090)

     1.  If a transcript of any hearing held before the Commission or the hearing officer is desired by the petitioner or appellant, he or she must furnish the reporter, pay for the transcript and deliver a copy of the transcript to the Director within 20 days after requesting a rehearing or filing an appeal of the matter.

     2.  If a transcript is prepared by the petitioner or appellant from a tape recording provided by the Department, the petitioner or appellant must, if he or she wishes to use the transcript in any subsequent hearing or appeal of the matter, deliver a copy of the transcript to the Department within the time required by subsection 1.

     [Tax Comm’n, Practice Rule part No. 17, eff. 11-15-77; A 12-20-79]—(NAC A 6-20-90; 8-2-90)—(Substituted in revision for NAC 360.165)

      NAC 360.060  Meetings and hearings: Conduct required; smoking prohibited. (NRS 360.090)

     1.  A person appearing in a proceeding shall conform to the recognized standards of ethical and courteous conduct.

     2.  Smoking is prohibited during all meetings of the Commission and hearings before the hearing officer.

     [Tax Comm’n, Practice Rule No. 33, eff. 11-15-77]

Parties; Legal Representation

      NAC 360.065  Classification of parties. (NRS 360.090)

     1.  “Appellant” means any party appealing to the Commission from a decision of the hearing officer.

     2.  “Intervener” means a person or local government other than the original party to the proceeding who is directly and substantially affected by the proceeding and who is allowed pursuant to NAC 360.070 to appear and present testimony or otherwise participate at the hearing.

     3.  “Petitioner” means any person who requests or seeks a redetermination, refund or adjustment of any tax, tax liability or the amount of any tax paid by the person, an assessment for tax purposes or determination of value for any purpose, or who petitions the Department or Commission for an advisory opinion or to adopt, amend or repeal a regulation.

     4.  “Respondent” means any person who is required to respond to an appeal of an administrative decision of the Commission.

     [Tax Comm’n, Practice Rule Nos. 6, 12, 13 & 14, eff. 11-15-77]—(NAC A 1-12-96; R175-08, 10-15-2010)

      NAC 360.070  Interveners. (NRS 360.090, 360.245)

     1.  A person or local government other than the original party to any proceeding who is directly and substantially affected by the proceeding must secure an order from the Commission or the hearing officer granting leave to intervene before being allowed to participate. For the purpose of granting leave to intervene, it is presumed that a county or other local government that receives a copy of a notice of appeal pursuant to subsection 2 of NAC 360.174 and timely files a petition for leave to intervene is directly and substantially affected by the proceeding. The granting of leave to intervene in any matter or proceeding is not a finding or determination of the Commission or the hearing officer that the party will or may be a party aggrieved by any ruling, order or decision of the Commission or the hearing officer for purposes of court review or appeal.

     2.  Petitions for leave to intervene must be in writing and must clearly identify the proceeding in which intervention is sought. The petition must set forth the name and address of the petitioner and contain a clear and concise statement of the direct and substantial interest of the petitioner in the proceeding, stating the manner in which the petitioner will be affected by the proceeding and outlining the matters relied upon by the petitioner as a basis for his or her request to intervene. If affirmative relief is sought, the petition must contain a clear and concise statement of the relief sought and the basis thereof, together with a statement as to the nature and quantity of evidence the petitioner will present if his or her petition is granted.

     3.  Except as otherwise provided in this subsection, petitions for leave to intervene and proof of service of copies thereof on all other parties of record must be filed not less than 21 working days before the commencement of the hearing. The Commission may consider a petition for leave to intervene which is filed less than 21 working days before the commencement of the hearing if:

     (a) The petition and proof of service of copies thereof on all other parties of record are filed not less than 3 working days before the commencement of the hearing; and

     (b) The petition states a substantial reason for the delay.

     4.  If a petition for leave to intervene shows a direct and substantial interest in the subject matter of the proceeding or any part thereof and does not unduly broaden the issues, the Commission or the hearing officer may grant leave to intervene or otherwise appear in the proceeding with respect to the matters set out in the intervening petition, subject to such reasonable conditions as may be prescribed.

     5.  If it appears during the course of a proceeding that an intervener has no direct or substantial interest in the proceeding and that the public interest does not require his or her participation therein, the Commission may dismiss the intervener from the proceeding.

     [Tax Comm’n, Practice Rule Nos. 48-51, eff. 11-15-77]—(NAC A by R175-08, 10-15-2010)

      NAC 360.080  Rights of petitioner and staff at evidentiary hearing. (NRS 360.090)  At any evidentiary hearing, the petitioner and staff may:

     1.  Call and examine witnesses.

     2.  Introduce exhibits relevant to the issues of the case.

     3.  Cross-examine opposing witnesses on any matter relevant to the issues of the case, even though that matter was not covered in the direct examination.

     4.  Impeach any witness regardless of which party first called the witness to testify.

     5.  Offer rebuttal evidence.

     6.  Call any person who, because of his or her relationship to any other party, may be an adverse witness, and examine him or her as an adverse witness.

     [Tax Comm’n, Practice Rule No. 31, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.085  Representation of parties; qualifications of attorneys. (NRS 360.090)  Appearances and representation of parties must be made as follows:

     1.  A party may appear in person, as provided in subsection 2, or may be represented by an attorney, an accountant or an authorized representative.

     2.  A party, if other than a natural person, may appear:

     (a) If a partnership, by a partner.

     (b) If a corporation, by an officer or other authorized representative or regular employee.

     (c) If a municipal corporation, by an authorized officer, agent or employee.

     (d) If an unincorporated association, by an authorized representative, officer or employee.

     3.  If a party chooses to be represented by an attorney, the attorney must be one who is admitted to practice and in good standing before the highest court of any state of the United States. If the attorney is not admitted to practice and in good standing before the Supreme Court of Nevada, an attorney so admitted and in good standing must be associated with the attorney appearing before the Commission or Department.

     [Tax Comm’n, Practice Rule No. 32, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.090  Representation of parties and appearance as expert witness by former employee of Department or Attorney General’s Office limited. (NRS 360.090)

     1.  No former employee of the Department or member of the Attorney General’s staff may, at any time after severing his or her employment with the Department or the Attorney General, appear, except with the written permission of the Commission, in a representative capacity on behalf of other parties in a proceeding in which he or she previously took an active part as a representative of the Commission or Department.

     2.  No former employee of the Department may at any time after severing his or her employment with the Department, appear, except, with the written permission of the Commission, as an expert witness on behalf of other parties in a proceeding in which he or she previously took an active part in the investigation or preparation as a representative of the Department.

     [Tax Comm’n, Practice Rule Nos. 34 & 35, eff. 11-15-77]

Hearings on Petitions for Redetermination

      NAC 360.095  Notice; location. (NRS 360.090, 360.370)

     1.  Hearings will be held before the Director or other designated hearing officer. Except as provided in subsection 3, notice of the place, date and hour of the hearing will be served at least 10 days before the date set for the hearing.

     2.  Hearings will be held at the offices of the Department in Carson City, Nevada, or at such other place in the State as may be designated in the notice of hearing.

     3.  In all hearings ordered to be held by the hearing officer, the hearing date may be set with less than 10 days’ notice if the petitioner, or the petitioner’s counsel, and staff agree in writing.

     [Tax Comm’n, Practice Rule Nos. 23 & 36, eff. 11-15-77]—(NAC A 9-13-85; 1-12-96)

      NAC 360.096  Petition for redetermination in contested case; issues. (NRS 360.090, 360.360, 360.370)  If a person files a petition for a redetermination in a contested case, all contested issues involved in the case shall be deemed to have been raised in the petition.

     (Added to NAC by Tax Comm’n, eff. 1-12-96)

      NAC 360.100  Prehearing conferences. (NRS 360.090, 360.370)

     1.  The hearing officer may, upon his or her own motion or the motion of a party, hold a prehearing conference for the purpose of formulating or simplifying the issues, obtaining admissions of fact or documents which will avoid unnecessary proof, arranging for the exchange of proposed exhibits or prepared expert testimony, limiting the number of witnesses, any procedure for the hearing and any other matters which may expedite orderly conduct and the disposition of the proceedings or settlements thereof.

     2.  The action taken at a prehearing conference and the agreements, admissions or stipulations made by the parties concerned must be made a part of the record and must be approved by the parties. When approved, the action will control the course of subsequent proceedings, unless otherwise stipulated to by all the parties of record with the consent of the hearing officer.

     3.  In any proceeding the hearing officer may, in his or her discretion, call all of the parties together for a conference before the taking of testimony. The hearing officer shall state on the record the results of the conference.

     [Tax Comm’n, Practice Rule Nos. 23-25, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.120  Continuances; recesses. (NRS 360.090, 360.370)  The hearing officer may, in his or her discretion, either before or during a hearing, grant continuances or recesses.

     [Tax Comm’n, Practice Rule No. 41, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.125  Failure of party to appear. (NRS 360.090, 360.370)  At the time and place set for the hearing, if a party fails to appear, the hearing officer may, in his or her discretion, dismiss the proceeding with or without prejudice or may recess the hearing for a period of time to be set by the hearing officer to enable the party to attend.

     [Tax Comm’n, Practice Rule No. 37, eff. 11-15-77]

      NAC 360.130  Burden of proof; presentation of evidence. (NRS 360.090, 360.370)

     1.  Any person seeking a redetermination or adjustment of any tax, tax liability or the amount of any tax paid, or of an assessment for tax purposes has the burden of proof in any evidentiary hearing ordered or noticed for that purpose.

     2.  Evidence may be received in any manner ordered by the hearing officer, but will ordinarily be received from the parties in the following order:

     (a) Brief orientation by the staff;

     (b) The petitioner;

     (c) The staff;

     (d) Interveners; and

     (e) Rebuttal by the petitioner.

     [Tax Comm’n, Practice Rule No. 39, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.135  Subpoenas. (NRS 360.090, 360.370)

     1.  Subject to the restrictions imposed by NRS 360.240, a subpoena requiring the attendance of a witness from any place in the State to any designated place of a hearing for the purpose of taking testimony may be issued by the hearing officer.

     2.  A party desiring to subpoena a witness must submit an application in writing to the hearing officer stating the reasons why a subpoena is requested.

     3.  The hearing officer may require that a subpoena requested by a party for the production of books, waybills, papers, accounts or other documents be issued only after the submission of an application in writing, which specifies as clearly as may be, the books, waybills, papers, accounts or other documents desired.

     4.  The hearing officer, upon receipt of an application for a subpoena, shall:

     (a) Grant the application and issue the subpoena;

     (b) Deny the application; or

     (c) Schedule a hearing to decide whether to grant or deny the application.

     5.  All costs incident to the subpoenas issued at the request of the petitioner must be paid by the petitioner, and the hearing officer may demand payment of the costs before the issuance of a subpoena.

     [Tax Comm’n, Practice Rule No. 28, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.145  Admission of evidence; depositions; affidavits. (NRS 360.090, 360.370)

     1.  The hearing will not be conducted according to the technical rules of evidence. Any relevant evidence may be admitted, except where precluded by law, if it is of a type commonly relied upon by reasonable and prudent persons in the conduct of their affairs, even though the evidence might be subject to objection in civil actions.

     2.  Hearsay evidence, as that term is used in civil actions, may be admitted for the purpose of supplementing or explaining other evidence, but it is not sufficient to support findings of fact unless it would be admissible over objection in civil actions.

     3.  The rules of privilege will be applied as they are applied in civil actions.

     4.  Irrelevant, cumulative and unduly repetitious evidence is not admissible, nor is incompetent evidence, as that term is used in civil trials, with the exception of hearsay evidence as above provided.

     5.  The parties or their counsel may, by written stipulation, agree that certain specified evidence may be admitted, even though the evidence would otherwise be subject to objection.

     6.  The hearing officer or any party to any proceeding may cause the depositions of witnesses to be taken in the manner prescribed by law and the rules of the court for depositions in civil actions.

     7.  The affidavit of any person may be admitted in evidence if all the parties stipulate and consent to its admission.

     [Tax Comm’n, Practice Rule Nos. 38 & 43, eff. 11-15-77]

      NAC 360.150  Official notice. (NRS 360.090, 360.370)  The hearing officer may take official notice of the following matters:

     1.  Rules, regulations, official reports, decisions and orders of the Commission and any regulatory agency of the State.

     2.  Contents of decisions, orders, certificates and permits issued by the Commission.

     3.  Matters of common knowledge and technical or scientific facts of established character.

     4.  Official documents, if pertinent, when properly introduced into the record of formal proceedings by reference if proper and definite reference to the document is made by the party offering it and it is published and generally circulated so that all of the parties of interest at the hearing have an opportunity to examine it and present rebuttal evidence.

     5.  Matters which may be judicially noticed by the courts of the State.

     [Tax Comm’n, Practice Rule No. 42, eff. 11-15-77]

      NAC 360.155  Briefs. (NRS 360.090, 360.370)

     1.  In any hearing, the hearing officer may order briefs filed within such time as he or she allows.

     2.  Briefs must be filed with the hearing officer and be accompanied by an acknowledgment of or an affidavit showing service on all other parties of record.

     [Tax Comm’n, Practice Rule No. 44, eff. 11-15-77]—(NAC A 1-12-96)

      NAC 360.170  Duties of hearing officer after hearing. (NRS 360.090, 360.370)

     1.  After the hearing of a contested case, the hearing officer shall prepare findings of fact, conclusions of law and his or her final decision on the issues presented in the hearing.

     2.  The hearing officer shall serve a copy of his or her findings of fact, conclusions of law and decision upon all the parties of record and members of the Commission within 60 days after the date of the hearing.

     [Tax Comm’n, Practice Rule Nos. 45-47, eff. 11-15-77]—(NAC A 6-20-90; 1-12-96)

Appeals

      NAC 360.172  Notice of appeal: Contents. (NRS 360.090, 360.245)  A notice of appeal filed pursuant to paragraph (b) of subsection 1 of NRS 360.245 must:

     1.  Identify the decision being appealed, the date on which the decision was rendered and the basis for the appeal; and

     2.  Include an estimate of the amount of money at issue on the appeal. The estimate is not binding on the Commission, the Department, any party to the appeal or any other person or governmental entity.

     (Added to NAC by Tax Comm’n by R175-08, eff. 10-15-2010)

      NAC 360.173  Notice of appeal: Timely filing; extension of time for filing. (NRS 360.090, 360.245)

     1.  Except as otherwise provided in this section or required to carry out a specific statute, regulation or court order, the Commission will not consider any notice of appeal filed more than 30 calendar days after service upon the taxpayer of the decision that is the subject of the notice of appeal.

     2.  The Director may, within 45 calendar days after a notice of appeal is otherwise due, grant an extension of time for the filing of the notice of appeal if:

     (a) A request for the extension, accompanied by any supporting documentation, is made in writing to the Department; and

     (b) The Director finds that the failure to file the notice of appeal in a timely manner:

          (1) Occurred despite the exercise of ordinary care and without the intent of the taxpayer; and

          (2) Is the result of circumstances beyond the control of the taxpayer. Such circumstances may include, without limitation, a natural disaster or other disaster beyond the control of the taxpayer, or the death or hospitalization of the person responsible for filing the notice of appeal.

     3.  A notice of appeal filed with the Department in accordance with an extension of time granted by the Director pursuant to this section shall be deemed to be timely filed.

     4.  A taxpayer may appeal a decision of the Director denying a request for an extension of time for the filing of a notice of appeal by filing an appeal of that decision with the Commission within 30 calendar days after service of the decision on the taxpayer.

     5.  As used in this section, “notice of appeal” means notice of an appeal by a taxpayer of a decision of the Director or of any other officer or employee of the Department.

     (Added to NAC by Tax Comm’n by R112-07, eff. 12-4-2007)

      NAC 360.174  Determination of effect of appeal on local governmental revenue; provision of notice of appeal to certain persons; intervention by certain local governments. (NRS 360.090, 360.245)

     1.  As soon as practicable after a taxpayer or the authorized representative of a taxpayer files a notice of appeal pursuant to paragraph (b) of subsection 1 of NRS 360.245, the Department shall determine whether the appeal is likely to affect the revenue of a county or other local government. The Department shall make that determination based upon:

     (a) The estimate provided pursuant to NAC 360.172 of the amount of money at issue on the appeal or, if the Department determines that the estimate is inaccurate, based upon the particular facts and circumstances of the appeal; and

     (b) The applicable criteria established by the Commission pursuant to subsection 5.

     2.  If the Department determines pursuant to subsection 1 that an appeal is likely to affect the revenue of a county or other local government, the Department shall:

     (a) As soon as practicable after making that determination, provide a copy of the notice of appeal to:

          (1) The district attorney and the governing body of the county regarding which the determination is made; and

          (2) The governing body of each other local government regarding which the determination is made.

     (b) At least 30 calendar days before the date of the first meeting at which the Commission may hear the appeal, notify each person to whom a copy of the notice of appeal was provided pursuant to paragraph (a) of the date of that meeting.

Ê A county or other local government that receives a copy of a notice of appeal pursuant to this subsection may intervene in the appeal in the manner provided in NAC 360.070.

     3.  If a taxpayer or the authorized representative of a taxpayer files a notice of appeal pursuant to paragraph (b) of subsection 1 of NRS 360.245 and the Director determines that the appeal involves a legal issue of broad applicability to:

     (a) A county regarding which a copy of the notice of appeal has not been provided to the district attorney and the governing body of the county pursuant to subsection 2, the Director may provide a copy of the notice of appeal to that district attorney and governing body.

     (b) A local government regarding which a copy of the notice of appeal has not been provided to the governing body of the local government pursuant to subsection 2, the Director may provide a copy of the notice of appeal to that governing body.

     4.  Each person and local government that receives a copy of a notice of appeal pursuant to this section shall hold and protect the information contained in the notice of appeal and any accompanying materials in accordance with any applicable laws pertaining to the confidentiality of that information, including, without limitation, any applicable provisions of NRS 360.247, 372.750 and 374.755.

     5.  For the purposes of this section and subsection 6 of NRS 360.245, the Commission will, at least once every 5 years, establish for each county criteria for determining whether an appeal is likely to affect the revenue of the county or another local government within the county, including, without limitation, criteria pertaining to:

     (a) The population and distribution of taxes in the county or other local government; and

     (b) The ability of the county or other local government to meet its financial obligations.

Ê The Department shall provide the Commission with recommendations for those criteria.

     (Added to NAC by Tax Comm’n by R175-08, eff. 10-15-2010)

      NAC 360.175  Appeal of decision of hearing officer. (NRS 360.090, 360.245)

     1.  The staff, petitioner or a designated representative may, within 30 days after service of the copy of the findings of fact, conclusions of law and decision of the hearing officer, file a notice of appeal with the Commission.

     2.  Within 30 days after filing a notice of appeal, the appellant shall file with the Commission a:

     (a) Brief setting forth the points relied upon in his or her appeal and authorities in support thereof; and

     (b) Designation of the parts of the record before the hearing officer that he or she deems relevant to his or her appeal.

     3.  An appeal from the decision of the hearing officer to the Commission must be based upon one or more of the grounds set forth in subsection 3 of NRS 233B.135.

     4.  The filing of a notice of appeal does not excuse compliance with the decision of the hearing officer nor suspend the effectiveness of a decision unless otherwise ordered by the hearing officer.

     5.  After receipt of a notice of appeal, filed in compliance with subsection 1, and the documentation required by subsection 2, the Department will schedule a time for oral argument before the Commission at its next meeting. The oral argument will be limited to a period of time not to exceed 20 minutes unless extended by the Commission. The Commission will not review evidence which was not submitted to the hearing officer unless it determines that good cause exists for a failure to submit the evidence to the hearing officer.

     6.  The Commission will modify, reverse or affirm the decision of the hearing officer or remand the case to the hearing officer. The Director shall issue a final written decision on behalf of the Commission.

     [Tax Comm’n, Practice Rule Nos. 56-59, eff. 11-15-77]—(NAC A 11-20-87; 1-12-96; R078-97, 11-14-97)

      NAC 360.176  Presentation of arguments in appellate hearing. (NRS 360.090)  In an appellate hearing before the Commission on a contested case, the order in which argument will ordinarily be received from the parties is:

     1.  The staff will provide a brief orientation;

     2.  The appellant;

     3.  Interveners;

     4.  The respondent; and

     5.  Rebuttal by the appellant.

     (Added to NAC by Tax Comm’n, eff. 1-12-96)

      NAC 360.177  Refund or credit following unsuccessful appeal by Department. (NRS 360.090, 360.2935, 360.395)  If a person prevails after any final appeal by the Department to the Commission or a court, the Department will issue a refund or credit.

     (Added to NAC by Tax Comm’n, eff. 1-12-96)

      NAC 360.181  Appeal of taxpayer concerning liability for tax: “Trade secret” interpreted. (NRS 360.090, 360.247)  For the purposes of NRS 360.247 and NAC 360.182, the Commission interprets the term “trade secret” to have the meaning ascribed to it in NRS 600A.030.

     (Added to NAC by Tax Comm’n by R140-07, eff. 1-30-2008)

      NAC 360.182  Appeal of taxpayer concerning liability for tax: Request for and conduct of closed hearing. (NRS 360.090, 360.247)

     1.  A taxpayer may request a closed hearing by submitting the request in writing to the Commission:

     (a) Not later than 14 calendar days before the date of the hearing; or

     (b) If authorized by the Director for good cause shown, not later than 5 calendar days before the date of the hearing.

     2.  A request for a closed hearing must include:

     (a) A list or summary of the information the taxpayer alleges to be proprietary or confidential information, which may include bank records, financial statements, customer lists, vendor lists, trade secrets and unique business practices of the taxpayer, and any other information the taxpayer considers to be proprietary or confidential information; and

     (b) A short statement explaining how the information alleged by the taxpayer to be proprietary or confidential information qualifies as such pursuant to NRS 360.247.

     3.  If the Commission receives a request for a closed hearing in accordance with the provisions of this section, the Commission will:

     (a) Indicate on its written agenda that the taxpayer has requested a closed hearing; and

     (b) Hold and protect the information included in the request and any information included in any briefs filed in the pertinent appeal, including any supporting materials and exhibits, in accordance with any applicable laws pertaining to the confidentiality of that information.

     4.  If a taxpayer submits a request for a closed hearing pursuant to:

     (a) Paragraph (a) of subsection 1, the Department may, not later than 5 calendar days before the date of the hearing; or

     (b) Paragraph (b) of subsection 1, the Department may, not later than 3 calendar days before the date of the hearing,

Ê file a written objection to the request with the Commission and serve a copy of the objection upon the taxpayer or the authorized representative of the taxpayer.

     5.  In a closed hearing, the Commission:

     (a) May receive testimony from the taxpayer and other witnesses regarding the information the taxpayer alleges to be proprietary or confidential information; and

     (b) Must determine by a majority vote of a quorum of its members whether that information qualifies as proprietary or confidential information pursuant to NRS 360.247. If the Commission determines that any of that information qualifies as proprietary or confidential information pursuant to NRS 360.247, the Commission may continue to hold a closed hearing regarding that proprietary or confidential information until the Commission determines that the proprietary or confidential information has been adequately discussed within the context of the appeal.

     6.  A taxpayer who fails to submit a request for a closed hearing in accordance with the provisions of this section shall be deemed to have waived his or her right to request a closed hearing. The provisions of this section do not affect the right of a taxpayer or the agent of the taxpayer to request a continuance of any hearing on an appeal by the taxpayer.

     7.  As used in this section, “closed hearing” means a hearing before the Commission which is closed to the public pursuant to NRS 360.247.

     (Added to NAC by Tax Comm’n by R140-07, eff. 1-30-2008)

      NAC 360.185  Rehearing or reconsideration of decisions of Commission. (NRS 360.090)

     1.  The Commission may issue an order granting a rehearing or reconsideration of all or part of any matter on its own motion or on a petition by an aggrieved party. A motion or petition for rehearing or reconsideration will not be granted if the motion is made or the petition is filed more than 15 days after service of the Commission’s final decision on the matter or if a petition on the matter has been filed in the district court. The Commission will serve an order granting or denying a rehearing or reconsideration on all parties of record at least 5 days before the expiration of the time for filing a petition for judicial review pursuant to NRS 233B.130. The right of a person to file a petition in the district court is not affected by the person’s failure to have petitioned for the Commission’s rehearing or reconsideration.

     2.  No oral argument concerning a motion or petition for rehearing or reconsideration will be permitted.

     3.  Except as otherwise provided in subsection 4, if the Commission has not taken action on a motion or petition for rehearing or reconsideration within the 15-day period allowed for making such a motion or filing such a petition, the motion or petition shall be deemed denied.

     4.  If a motion or petition for rehearing or reconsideration is made or filed within the 15-day period but the Commission is not scheduled to meet within that period, the Director may, upon a showing of good cause, stay enforcement of the Commission’s original decision until the Commission can grant or deny the motion or petition.

     5.  A stay of enforcement may be ordered upon the condition that the petitioner comply with specific terms which are reasonably related to the original findings and decision.

     6.  If the Commission issues an order granting a rehearing or reconsideration, the subsequent decision by the Commission:

     (a) Will be based on all pertinent parts of the record and such additional evidence and argument as it may permit.

     (b) Is the final decision of the Commission for the purposes of judicial review.

     [Tax Comm’n, Practice Rule No. 61, eff. 10-16-80]—(NAC A by R179-99, eff. 5-16-2000)

Other Hearings and Decisions

      NAC 360.186  Appeal of valuation of centrally assessed property. (NRS 360.090, 361.315)  Any person, corporation, partnership or association whose property valuation is required to be determined by the Commission pursuant to NRS 361.315, 361.320 or 361.325 may appear before the Commission during its annual meeting on the first Monday of October, if he or she has first delivered to the Director no later than 7 working days in advance of the meeting a written petition to appear specifying which portions of the staff’s valuation formulae are to be questioned and the specific basis for the questions.

     [Tax Comm’n, Practice Rule No. 52, eff. 11-15-77]—(NAC A 1-12-96)—(Substituted in revision for NAC 360.110)

      NAC 360.187  Notice of hearing before order to seal and padlock business. (NRS 360.090, 360.490)  Any person who engages in business without having the appropriate permit or license required by title 32 of NRS or chapter 585 of NRS will be given 10 days’ notice in writing which specifies the time and place of a hearing and requires the person to show cause why his or her place of business should not be sealed and padlocked. The notice will be served personally or by mail in the manner prescribed in NRS 360.350.

     [Tax Comm’n, Practice Rule No. 52A, eff. 7-8-80]—(NAC A 9-16-92)—(Substituted in revision for NAC 360.115)

      NAC 360.188  Decisions of Commission in contested cases not receiving evidentiary hearing: Form; delivery. (NRS 360.090)

     1.  All final decisions in contested cases issued by or on behalf of the Commission upon which the petitioner has not received an evidentiary hearing before a hearing officer will be written and include separate findings of fact and conclusions of law based upon substantial evidence or matters officially noticed.

     2.  Decisions will be delivered to each party and to his or her attorney of record either in person or by certified mail.

     [Tax Comm’n, Practice Rule part No. 55, eff. 11-15-77]—(NAC A 1-12-96)—(Substituted in revision for NAC 360.180)

Advisory Opinions

      NAC 360.190  Petitions: Authority; form; contents. (NRS 360.090)

     1.  Any person may petition for an advisory opinion concerning matters within the jurisdiction of the Department or Commission.

     2.  The Board may petition for an advisory opinion concerning compliance with any of the provisions of chapters 361, 361A and 362 of NAC adopted by the Commission.

     3.  All petitions must be in writing, be addressed to the Director and set forth at least the following:

     (a) A statement that an advisory opinion is requested;

     (b) A succinct statement of all the facts and circumstances necessary to dispose of the petition;

     (c) A clear, simple statement of the issue or question to be resolved;

     (d) A statement of all statutes, rules, agency decisions or other authorities which the petitioner believes may be relevant in disposing of the petition; and

     (e) A statement with supporting arguments and authorities of the petitioner’s opinion of a proper disposition of the petition.

     [Tax Comm’n, Practice Rule No. 53, eff. 11-15-77]—(NAC A by R039-10, 8-13-2010)

      NAC 360.195  Jurisdiction. (NRS 360.090)  Since the Commission’s jurisdiction does not extend to equalization matters, the Director may respond to any request for an advisory opinion as being directed to the Board.

     [Tax Comm’n, Practice Rule part No. 54, eff. 11-15-77]

      NAC 360.200  Opinions: Issuance; appeals. (NRS 360.090)

     1.  Advisory opinions must:

     (a) Be written;

     (b) Include a statement of facts, question, analysis and opinion;

     (c) Be issued by the Director within 45 days after the filing of the petition unless the Director in writing orders an extension of time up to a maximum of 60 days after filing; and

     (d) Be delivered to the petitioner in person or by certified mail.

     2.  Advisory opinions of the Director are appealable to the Commission in the same manner as any other appealable decision.

     [Tax Comm’n, Practice Rule part No. 54 & part No. 55, eff. 11-15-77]

ESTIMATION OF POPULATION

      NAC 360.300  Definitions. (NRS 360.090, 360.283)  As used in NAC 360.300 to 360.390, inclusive, unless the context otherwise requires, the words and terms defined in NAC 360.305 to 360.355, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89; A by Tax Comm’n, 8-7-90; R102-98, 11-20-98)

      NAC 360.305  “Average household size” defined. (NRS 360.283)  “Average household size” means the average number of persons in households located in a specified area, calculated by dividing the number of persons living in housing units within the area by the number of occupied housing units, excluding group quarters. In determining average household size, all occupants must be counted, including any lodgers, roomers, boarders, wards, foster children and resident employees who share living quarters.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.311  “Census” defined. (NRS 360.283)  “Census” means a survey in which information is collected from 100 percent of the sample population.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.315  “City-county ratio” defined. (NRS 360.283)  “City-county ratio” means the fraction or percentage of the total population of a county which is located within a certain city within the county.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.317  “Decennial census ratio” defined. (NRS 360.090, 360.283)  “Decennial census ratio” means the fraction or percentage of the total population of a county that is located within a certain incorporated city or unincorporated town within the county which is based on the most recent decennial census.

     (Added to NAC by Tax Comm’n by R102-98, eff. 11-20-98)

      NAC 360.320  “Group quarters” defined. (NRS 360.283)  “Group quarters” means any living quarters which are not classified as a housing unit. The term includes institutional group quarters such as mental hospitals, homes for the aged and correctional institutions, and noninstitutional group quarters such as military barracks, college dormitories and rooming houses.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.325  “Household” defined. (NRS 360.283)  “Household” means the person or persons occupying a housing unit.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.330  “Housing unit” defined. (NRS 360.283)  “Housing unit” means a house, duplex, townhouse, condominium, apartment, mobile home, trailer, group of rooms or a single room occupied as a separate living quarter or, if vacant, intended for occupancy as a separate living quarter.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.335  “Housing unit model” defined. (NRS 360.283)  “Housing unit model” means a method by which the population of an area is estimated by multiplying the number of occupied housing units in the area by the average household size and adding the product to the total population of group quarters in that area.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.340  “Nevada regression model” defined. (NRS 360.090, 360.283)  “Nevada regression model” means a method, as determined by the Department and the demographer employed by the Department, by which the population of an area is estimated using population as a dependent variable and employment, labor force, school enrollment and any other relevant data as independent variables.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89; A by Tax Comm’n by R102-98, 11-20-98)

      NAC 360.345  “On-site count” defined. (NRS 360.283)  “On-site count” means a census conducted door to door in a specified area to count the total number of dwelling units, by type, the number of occupied dwelling units and the total population, including the population of group quarters.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.350  “Separate living quarters” defined. (NRS 360.283)  “Separate living quarters” means an accommodation in which a single family, one person, two or more families or any other group of persons live and eat separately from any other persons in the building in which the living quarters are located, and for which there is direct access from the outside of the building or through a common hall.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.352  “Town-county ratio” defined. (NRS 360.090, 360.283)  “Town-county ratio” means the fraction or percentage of the total population of a county that is located within a certain unincorporated town within the county.

     (Added to NAC by Tax Comm’n by R102-98, eff. 11-20-98)

      NAC 360.355  “Vacancy rate” defined. (NRS 360.283)  “Vacancy rate” means the average percentage of unoccupied housing units over a given period in a specified area.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.360  Use of table of residence rules issued by Bureau of the Census. (NRS 360.283)  When appropriate, the Department and the demographer employed by the Department will use the table of residence rules issued by the Bureau of the Census to determine residence.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.365  Determination of estimates for State and counties. (NRS 360.090, 360.283)

     1.  Except as otherwise provided in this section or NAC 360.373, 360.375 or 360.377, estimates of the population of this State and its counties must be determined by averaging on an equal basis the results of the Nevada regression model and the relevant housing unit model.

     2.  The housing unit model must include housing units listed on the county assessors’ records as of July 1 of each year. Only units included on the county assessors’ records may be used unless the appropriate local governmental official certifies to the Department that the unit has been approved for occupancy on or before July 1. Documentation certified by the appropriate local governmental official, subject to the approval of the Department and the demographer employed by the Department, may be submitted to the Department to verify that a housing unit should be included in the calculations.

     3.  The number of persons per household must be calculated using the last decennial census unless a more recent source is available and has been approved by the Department and the demographer employed by the Department. The number of persons per household may be adjusted using historical rates of change in persons per household. To the extent possible, the vacancy rate must be determined for all incorporated cities and unincorporated towns within a county on a consistent basis by using a postal survey, data from utilities providing services within those cities and towns or information from other sources acceptable to the Department and the demographer employed by the Department.

     4.  A county and the incorporated cities and unincorporated towns within that county shall coordinate and agree upon the data to be included in the housing unit models for the county and each incorporated city and unincorporated town. If the county, incorporated cities and unincorporated towns cannot agree by August 30, the question of what data may be included must be submitted to the Department and the demographer employed by the Department for resolution.

     5.  If the Department and the demographer employed by the Department determine that data is unavailable to produce a workable housing unit model, the Nevada regression model must be used to determine the population of the county.

     6.  If the Department and the demographer employed by the Department determine that data is unavailable to produce a workable Nevada regression model, the housing unit model must be used to determine the population of the county.

     7.  If the Department and the demographer employed by the Department determine that data is unavailable to produce a workable housing unit model and a workable Nevada regression model, the latest estimates prepared by the Bureau of the Census must be used to determine the population of the county.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89; A by Tax Comm’n, 8-7-90; 9-13-91; 5-27-92; R102-98, 11-20-98)

      NAC 360.367  Determination of estimates for townships. (NRS 360.090, 360.283)  Estimates of the population of townships must be determined by using any one or more of the following:

     1.  Population counts prepared by the Bureau of the Census;

     2.  Estimates of the population of incorporated cities, unincorporated towns and counties; or

     3.  Any other available demographic information,

Ê subject to the approval of the Department and the demographer employed by the Department.

     (Added to NAC by Tax Comm’n, eff. 9-13-91; A by R102-98, 11-20-98)

      NAC 360.368  Determination of estimates for unincorporated towns. (NRS 360.090, 360.283)

     1.  Except as otherwise provided in this section or NAC 360.373, 360.375 or 360.377, the estimate of the population of an unincorporated town must be determined by using the town-county ratio for the unincorporated town obtained from the relevant housing unit model. The ratio may be adjusted by the Department and the demographer employed by the Department:

     (a) For annexations not previously included in the ratio.

     (b) To increase the estimates by using the number of housing units added since the date of the most recent estimates of population. The number of housing units must be certified by the appropriate local governmental official.

     (c) For any error or omission which comes to the attention of the Department.

Ê The resulting town-county ratio must be multiplied by the total population of the county calculated pursuant to NAC 360.365 or 360.375.

     2.  If the Department and the demographer employed by the Department determine that the data necessary to produce a workable housing unit model is not available, the estimate of the population of the unincorporated town may be determined by using:

     (a) A decennial census ratio;

     (b) A ratio obtained from the most relevant available information; or

     (c) An average on an equal basis of the ratios set forth in paragraphs (a) and (b),

Ê as determined by the Department and the demographer employed by the Department.

     (Added to NAC by Tax Comm’n by R102-98, eff. 11-20-98)

      NAC 360.370  Determination of estimates for incorporated cities. (NRS 360.090, 360.283)

     1.  Except as otherwise provided in this section or NAC 360.373, 360.375 or 360.377, the estimate of the population of an incorporated city must be determined by using the city-county ratio for the incorporated city obtained from the relevant housing unit model. The ratio may be adjusted by the Department and the demographer employed by the Department:

     (a) For annexations not previously included in the ratio.

     (b) To increase the estimates by using the number of housing units added since the date of the most recent estimates of population. The number of housing units must be certified by the appropriate local governmental official.

     (c) For any error or omission which comes to the attention of the Department.

Ê The resulting city-county ratio must be multiplied by the total population of the county calculated pursuant to NAC 360.365 or 360.375.

     2.  If the Department and the demographer employed by the Department determine that the data necessary to produce a workable housing unit model is not available, the adjusted Bureau of the Census ratio must be used to determine the estimate of the population of the incorporated city.

     3.  If the Department and the demographer employed by the Department determine that the data necessary to produce a workable housing unit model and a workable adjusted Bureau of the Census ratio is not available, the estimate of the population of the incorporated city may be determined by using:

     (a) A decennial census ratio;

     (b) A ratio obtained from the most relevant available information; or

     (c) An average on an equal basis of the ratios set forth in paragraphs (a) and (b),

Ê as determined by the Department and the demographer employed by the Department.

     4.  As used in this section, “adjusted Bureau of the Census ratio” means the fraction or percentage of the total population of a county that is located within a certain incorporated city or unincorporated town within the county which is based upon the most recent estimates prepared by the Bureau of the Census and is adjusted by the Department and the demographer employed by the Department for annexations, changes in housing units, any errors or omissions, and any other relevant information that comes to the attention of the Department and the demographer employed by the Department.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89; A by Tax Comm’n, 8-7-90; 9-13-91; R102-98, 11-20-98)

      NAC 360.373  Use of population count from decennial census. (NRS 360.090, 360.283)

     1.  When the Bureau of the Census conducts a decennial census in this State, the population count from the decennial census may replace the estimates of populations calculated pursuant to NAC 360.365, 360.368 and 360.370.

     2.  An appropriate local government official may apply to the Department for approval to use the population count from the decennial census. The Department shall approve the request if the Department and the demographer employed by the Department determine that the population count is reasonable and the county and all of the incorporated cities and unincorporated towns within the county agree to use the population count.

     3.  If the county, incorporated cities and unincorporated towns cannot agree on a method to estimate population on or before December 1, the estimates of the populations of the county and all of the incorporated cities and unincorporated towns in that county must be determined pursuant to NAC 360.365, 360.368 and 360.370.

     4.  If the population count from the decennial census is used to estimate the population of a county, incorporated city or unincorporated town, the population count must be adjusted, if necessary, by the Department and the demographer employed by the Department for the change in housing units between the effective date of the population count and July 1.

     (Added to NAC by Tax Comm’n, eff. 8-7-90; A by R102-98, 11-20-98)

      NAC 360.375  Use of on-site count. (NRS 360.090, 360.283)

     1.  An on-site count of persons in an incorporated city, unincorporated town or county may replace estimates of populations calculated pursuant to NAC 360.365, 360.368 and 360.370 if the count is conducted in the manner specified by the Department and the demographer employed by the Department and is approved by the Department and the demographer employed by the Department before it is conducted.

     2.  The Department will, within 5 state working days, notify all counties, incorporated cities and unincorporated towns of any entity electing to conduct an on-site count of its population.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89; A by Tax Comm’n by R102-98, 11-20-98)

      NAC 360.377  Use of population count from special census. (NRS 360.090, 360.283)

     1.  If the Bureau of the Census conducts a special census in this State, the population count from the special census may replace the estimates of populations calculated pursuant to NAC 360.365, 360.368 and 360.370.

     2.  If the population count from a special census is used to estimate the population of a county, incorporated city or unincorporated town, the population count must be adjusted, if necessary, by the Department and the demographer employed by the Department for the change in housing units between the effective date of the population count and July 1.

     (Added to NAC by Tax Comm’n, eff. 8-7-90; A by R102-98, 11-20-98)

      NAC 360.380  Accommodations included in inventory of housing units. (NRS 360.283)

     1.  Occupied and vacant housing units must be included in the inventory of housing units. A boat, tent, van, cave or other similar accommodation must be included only if it is occupied by a person as his or her usual place of residence.

     2.  An occupied room or suite of rooms in a hotel, motel or similar accommodation must be classified as a housing unit only when occupied by persons who consider it their usual place of residence or who do not have usual places of residence elsewhere.

     3.  Vacant rooms or suites of rooms in a hotel, motel or similar accommodation must be classified as housing units if at least 75 percent of the hotel, motel or similar accommodation is occupied by permanent residents.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.385  Classification of housing units as occupied or vacant. (NRS 360.283)

     1.  All housing units must be classified as occupied or vacant.

     2.  A housing unit must be classified as occupied if a person or persons are living in it as their usual place of residence or are only temporarily absent. If the person or persons occupying the unit have their usual place of residence elsewhere, the unit must be classified as vacant.

     3.  A housing unit must be classified as vacant if no one is living in it at the time calculations are being made, unless its occupants are only temporarily absent. If, at the time calculations are being made, the unit is temporarily occupied by a person or persons who have their usual place of residence elsewhere, the unit must be classified as vacant.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89)

      NAC 360.390  Appeal of estimate for county, incorporated city or unincorporated town. (NRS 360.090, 360.283)

     1.  A petition to appeal the estimates of the population of a county, incorporated city or unincorporated town must be submitted in writing to the Department as soon as possible after the distribution of the estimates. Upon review of the petition, revised estimates may be issued.

     2.  Upon filing a petition to appeal, the petitioner shall give notice of the appeal to the county and all incorporated cities and unincorporated towns within the county.

     3.  The Department shall, within 5 state working days after receiving a petition to appeal, notify all counties, incorporated cities and unincorporated towns in the State of the receipt of the petition.

     4.  An appeal must be filed on or before December 14 and will be heard and ruled upon by a hearing officer of the Department. The appeal is subject to the applicable provisions of this chapter and chapter 360 of NRS relating to practice and procedures before the Commission.

     5.  An appeal must be based on at least one of the following grounds:

     (a) An error was made in the application of the methodology used to determine the estimates.

     (b) An incorrect assumption was made in developing the proposed estimates.

     (c) Additional information has become available which was not available or not used when the proposed estimates were being developed and the application of the additional information, if accepted by the Department and the demographer employed by the Department, would cause the proposed estimates to change materially.

     6.  The Department shall mail or transmit by facsimile machine to the petitioner and all counties, incorporated cities and unincorporated towns a notice of the date for the hearing during which oral arguments will be heard. The notice must be mailed or transmitted by facsimile machine not later than 5 state working days before the date of the hearing. Unless extended by the Department, an oral argument will be limited to 20 minutes.

     7.  A decision of the hearing officer may be appealed to the Commission. A decision of the Commission is a final decision for the purposes of judicial review.

     (Added to NAC by Dep’t of Taxation, eff. 9-1-89; A by Tax Comm’n by R102-98, 11-20-98)

PAYMENT AND COLLECTION OF TAXES AND FEES

      NAC 360.395  Amount of penalty for late payment. (NRS 360.090, 360.093, 360.417)  The penalty imposed pursuant to NRS 360.417 for the late payment of tax provided for in chapter 362, 363A, 363B, 369, 370, 372, 372A, 377, 377A, 444A or 585 of NRS or any fee provided for in NRS 482.313 must be in the amount of:

     1.  If the payment is not more than 10 days late, 2 percent of the amount of the tax or fee due.

     2.  If the payment is more than 10 days late but not more than 15 days late, 4 percent of the amount of the tax or fee due.

     3.  If the payment is more than 15 days late but not more than 20 days late, 6 percent of the amount of the tax or fee due.

     4.  If the payment is more than 20 days late but not more than 30 days late, 8 percent of the amount of the tax or fee due.

     5.  If the payment is more than 30 days late, 10 percent of the amount of the tax or fee due.

     (Added to NAC by Tax Comm’n by R018-05, eff. 10-31-2005)

      NAC 360.396  Waiver or reduction of penalty or interest for late payment. (NRS 360.090, 360.093, 360.417, 360.419)

     1.  The Department shall waive or reduce a penalty or interest, or both, for a late payment if the total penalty and interest for the late payment is $15 or less.

     2.  The Department may waive or reduce a penalty or interest, or both, for a late payment if the late payment is determined by the Department to have been caused by circumstances beyond the control of the taxpayer or the taxpayer’s agent and occurred despite the exercise of ordinary care and without intent.

     3.  In determining whether to waive or reduce the penalty or interest, or both, for a late payment pursuant to subsection 2, the Department may consider:

     (a) The history of compliance and timely payment of the taxpayer;

     (b) The weight and sufficiency of the evidence supporting the request of the taxpayer to waive or reduce the penalty or interest, or both, for the late payment;

     (c) Any evidence which shows that the late payment was caused by circumstances that were not directly related to the actions of the taxpayer or the taxpayer’s agent, including, without limitation:

          (1) Fire, earthquake, flood or other acts of God, theft, or the death or serious illness of the taxpayer or the taxpayer’s agent or a member of the immediate family of the taxpayer;

          (2) An error or the misconduct of an employee of the taxpayer, including, without limitation, embezzlement;

          (3) Erroneous written information provided to the taxpayer or the taxpayer’s agent by the Department; and

          (4) The misaddressed but timely mailing of the return or payment; and

     (d) Any other factor deemed by the Department to be relevant.

     (Added to NAC by Tax Comm’n by R018-05, eff. 10-31-2005; A by R206-07, 4-17-2008)

      NAC 360.397  Request for waiver or reduction of penalty or interest: Generally. (NRS 360.090, 360.419)

     1.  Except as otherwise provided in NAC 360.398, a taxpayer or the taxpayer’s agent may request the waiver or reduction of the penalty or interest, or both, by submitting to the Department a written statement signed under oath by the taxpayer or the taxpayer’s agent which sets forth the facts and circumstances surrounding the failure of the taxpayer to make the payment in a timely manner.

     2.  The Department shall not consider a request made pursuant to subsection 1 until the taxpayer has paid in full the tax or fee upon which the interest or penalty is assessed.

     (Added to NAC by Tax Comm’n by R018-05, eff. 10-31-2005; A by R206-07, 4-17-2008)

      NAC 360.398  Request for waiver or reduction of penalty or interest in conjunction with petition for redetermination. (NRS 360.090, 360.419)

     1.  If a notice of a deficiency determination has been issued by the Department pursuant to NRS 360.350, a taxpayer who files a petition for redetermination pursuant to NRS 360.360 may:

     (a) Submit, with the petition for redetermination, a written request for the waiver or reduction of the penalty or interest, or both; or

     (b) Request before the conclusion of the hearing on the petition for redetermination conducted pursuant to NRS 360.370 that the hearing officer waive or reduce the penalty or interest, or both.

     2.  If a taxpayer requests, pursuant to paragraph (a) of subsection 1, the waiver or reduction of the penalty or interest, or both, and does not challenge the correctness of the tax or fee that is the subject of the deficiency determination, the Director or the Director’s designee shall make a determination on the request in the manner prescribed in NAC 360.396.

     3.  If a taxpayer requests the waiver or reduction of the penalty or interest, or both, pursuant to:

     (a) Paragraph (a) of subsection 1 and challenges the correctness of the tax or fee that is the subject of the deficiency determination; or

     (b) Paragraph (b) of subsection 1,

Ê the hearing officer shall make a determination on the request as part of the adjudication of the petition for redetermination. If the hearing officer grants the request to waive or reduce the penalty or interest, or both, the hearing officer may order that the waiver or reduction is contingent upon the requirement that the taxpayer pay the tax or fee for which the penalty or interest was assessed not more than 30 days after the issuance of the decision of the hearing officer.

     4.  A taxpayer aggrieved by a determination of the Director or the Director’s designee or a hearing officer regarding a request to waive or reduce the penalty or interest, or both, may appeal that determination to the Commission in the manner provided pursuant to NRS 360.245 to 360.390, inclusive.

     (Added to NAC by Tax Comm’n by R018-05, eff. 10-31-2005; A by R206-07, 4-17-2008)

      NAC 360.401  Acceptance of late return filed after deficiency determination is proposed. (NRS 360.090)  The acceptance by the Department of a late filed return may not be construed as a settlement or other resolution of the proposed deficiency determination pursuant to NRS 360.360 so as to permit the taxpayer to raise the issue of res judicata or collateral estoppel during any subsequent examination or audit of the records of the taxpayer. If the late filed return is filed after the 45-day due date, the Department shall not accept the return without verification of the amounts on the return, unless the differences between the proposed deficiency and the subsequent late filed return are de minimis.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.405  Conditions for relief from penalties and interest on certain taxes or fees due before July 1, 2002. (NRS 360.090, 360.419)

     1.  Except as otherwise provided in subsection 2, the Department may relieve a person who has not paid a tax or fee imposed pursuant to NRS 370.440 to 370.503, inclusive, chapter 372 or 374 of NRS or NRS 444A.090 or 482.313 of all or part of the penalties and interest imposed pursuant to NRS 360.300, 360.330 or 360.417 with regard to the unpaid tax or fee if:

     (a) The person failed to pay the unpaid tax or fee for a reason other than fraud or intentional evasion of the payment of the unpaid tax or fee;

     (b) Not earlier than February 1, 2002, and not later than June 30, 2002, the person files with the Department a request for relief pursuant to this section;

     (c) The person registers pursuant to NRS 372.220 or NAC 444A.041, if required;

     (d) The person obtains a license pursuant to NRS 370.445, if required;

     (e) The person pays in full the fee for any permit or license required for any business in which he or she engages that is related to the unpaid tax or fee;

     (f) The person pays in full the unpaid tax or fee; and

     (g) The Commission authorizes the Department to relieve the person of the penalties and interest.

     2.  The Department may not, pursuant to subsection 1, relieve the person of any interest that accrues or penalties that are imposed on or after July 1, 2002, on any portion of the unpaid tax or fee that remains unpaid on or after July 1, 2002.

     3.  A person who requests or receives relief pursuant to this section may be selected for an audit and audited by the Department in the same manner as a person who does not request or receive relief pursuant to this section.

     4.  The limitations set forth in NRS 360.355 apply to taxes and fees paid pursuant to this section.

     (Added to NAC by Tax Comm’n by R167-01, eff. 12-17-2001; A by R138-04, 8-11-2004)

      NAC 360.407  Conditions for relief from penalties and interest on certain taxes or fees due before January 1, 2006. (NRS 360.090, 360.419)

     1.  Except as otherwise provided in this section and for the purposes of NRS 360.419:

     (a) A person’s failure to make a timely return or payment of a tax imposed pursuant to NRS 363A.130, 363B.110 or 368A.200 shall be deemed to be the result of circumstances beyond the person’s control and occurring despite the exercise of ordinary care and without intent if the person files any required return and remits the tax on or before December 31, 2005.

     (b) A person’s failure to make a timely return or payment of a tax imposed pursuant to NRS 372.185 shall be deemed to be the result of circumstances beyond the person’s control and occurring despite the exercise of ordinary care and without intent if:

          (1) Pursuant to subsection 2 of NRS 372.220, the person is required for the first time to register with the Department; and

          (2) The person files any required return and remits the tax on or before December 31, 2005.

     2.  Except as otherwise provided in this section and for the purposes of NRS 360.784, a person shall be deemed to have submitted the annual fee required to be paid pursuant to that section in a timely manner if the person files any required return and remits the fee on or before December 31, 2005.

     3.  The provisions of this section:

     (a) Apply only to taxes and fees that are due and payable before January 1, 2006.

     (b) Do not apply:

          (1) If the Department determines that the failure to make a timely return or payment of a tax or fee imposed pursuant to the provisions of NRS 360.784, 363A.130, 363B.110, 368A.200 or 372.185 is due to negligence, an intentional disregard of any of those provisions, fraud or an intent to evade the payment of the tax or fee.

          (2) To a taxpayer who has entered into a settlement agreement with the Department that has been approved by the Commission.

     (Added to NAC by Tax Comm’n by R138-04, eff. 8-11-2004; A by R099-05, 10-31-2005)

      NAC 360.410  Dishonored checks; returned checks. (NRS 360.090, 360.238)

     1.  Except as otherwise provided in subsection 3, a check which was tendered within the due date prescribed by law but subsequently dishonored after the due date does not constitute timely payment.

     2.  Checks returned by a bank for any reason are subject to a charge of $25.

     3.  If the check was not honored through the fault or error of the banking institution and the taxpayer can provide evidence to this effect, the payment will be considered made on the date tendered.

     4.  The Director may waive the charge imposed by subsection 2 upon determining that a waiver is warranted by the circumstances.

     (Added to NAC by Tax Comm’n, eff. 9-16-91)

      NAC 360.420  Lien upon real property as security for payment. (NRS 360.090)  If a lien upon real property is given as security for the payment of the tax imposed by chapter 369, 370 or 372 of NRS:

     1.  Upon the discontinuance of the business for which the security was required and the payment of all amounts due, including taxes, penalties and interest, the Department will prepare and provide to the taxpayer a notice which the taxpayer may record. The notice must be suitable for recording to remove the lien on the property.

     2.  If any amount due is not paid to the State, the Department may exercise any one or more remedies permitted by law, including, without limitation, requesting that judgment be entered against the person who pledged the property.

     3.  The taxpayer may furnish other security for the tax as prescribed by the Department. If such other security is furnished, the Department will prepare and provide to the taxpayer a notice which the taxpayer may record. The notice must be suitable for recording to remove the lien on the property.

     (Added to NAC by Tax Comm’n by R076-97, eff. 11-14-97)

      NAC 360.425  Application by minor for business license or seller’s permit: Documentation of responsibility. (NRS 360.090, 364A.130, 372.125, 374.130)  Unless the applicant provides to the Department a decree of emancipation issued to the applicant pursuant to NRS 129.080 to 129.140, inclusive, the application of a person who is under the age of 18 years for a license or permit issued pursuant to NRS 364A.130, 372.125 or 374.130 must include a statement signed by the parent or legal guardian of the applicant in substantially the following language:

 

     I, the undersigned, hereby acknowledge responsibility until the applicant reaches 18 years of age for reporting or remitting to the Department any taxes imposed pursuant to .................... (chapter 364A, 372 or 374 of NRS, as applicable) that the applicant fails to report or remit to the Department.

                        .................................................................................

                        Signature of applicant’s parent or legal guardian

 

     (Added to NAC by Tax Comm’n by R046-02, eff. 8-6-2002)

      NAC 360.430  Liability of successor or purchaser of business or stock of goods. (NRS 360.090, 360.525)

     1.  The requirement in NRS 360.525 that a successor or purchaser of a business or stock of goods withhold a sufficient amount of the purchase price to cover the tax liability of the seller arises only in the case of the purchase and sale of a business or stock of goods under a contract which provides for the payment to the seller or person designated by him or her of a purchase price:

     (a) In money;

     (b) In property; or

     (c) Which provides for the assumption of liabilities.

     2.  The requirement may not arise in connection with other transfers of a business such as assignments for the benefit of creditors, foreclosures of mortgages and sales by trustees in bankruptcy.

     3.  The liability of the successor or purchaser of a stock of goods extends to all taxes, interest and penalties incurred during the operation of the business by the predecessor or any former owner, including:

     (a) Taxes on the sale of the business, even though the liability for the taxes was not then determined against the successor or purchaser;

     (b) Interest to the date of payment of the taxes;

     (c) Penalties for nonpayment of taxes;

     (d) Penalties for negligence or intentional disregard of the statutes or regulations which govern the sales and use tax and the business tax; and

     (e) Penalties for fraud or an intent to evade the tax determined and unpaid at the time of sale.

     4.  The purchaser of a business or stock of goods is entitled to be released from further obligation to withhold the purchase price if he or she:

     (a) Obtains a certificate from the Department which states that no taxes, interest or penalties are due from a predecessor; or

     (b) Makes a written request to the Department for a certificate and the Department does not issue the certificate or mail to the purchaser a notice of the amount of the taxes, interest and penalties that must be paid as a condition of issuing the certificate within 60 days after:

          (1) The Department received the request; or

          (2) The records of the former owner were made available for audit,

Ê whichever period expires later, except that no period may exceed 90 days after the date on which the request was received.

     (Added to NAC by Tax Comm’n by R077-97, eff. 11-14-97)

      NAC 360.432  Contract with private debt collector: Authorization by Commission; prior notification of debtor by Department. (NRS 353C.200, 360.090)

     1.  Subject to the conditions set forth in NRS 353C.200, the Department may enter into a contract with a private debt collector or any other person for the assignment of the collection of a debt if the Commission authorizes the Department to enter into a contract with regard to the debt.

     2.  Upon the authorization of the Commission pursuant to subsection 1 and before entering into a contract pursuant to subsection 1, the Department shall notify the debtor that the debt may be assigned to a private debt collector if the debt is not paid in full. Notice provided to the debtor pursuant to this subsection must be served personally upon the debtor or by mail at his or her last address of record filed with the Department.

     3.  As used in this section, “debt” has the meaning ascribed to it in NRS 353C.040.

     (Added to NAC by Tax Comm’n by R166-01, eff. 12-17-2001)

      NAC 360.435  Sales and use taxes: Failure to file return or filing of incorrect, false or fraudulent return. (NRS 360.090, 372.725, 374.725)  Any person who is required to file a return pursuant to chapter 372 or 374 of NRS and fails to do so within the time prescribed by specific statute, regulation or rule, or who files an incorrect, false or fraudulent return, must, upon written demand of the Director or the Director’s designee, file the return required or the corrected return, as appropriate, within 10 days after the written demand for the return or corrected return has been mailed to the person. The person shall pay any tax due on the basis of such a return when filing the return.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

COMPROMISE OF LIABILITY OF TAXPAYER

      NAC 360.437  Interpretation of certain statutory terms. (NRS 360.090, 360.263)  As used in NRS 360.263, the Commission will interpret:

     1.  The phrase “It is unlikely that the Department will be able to collect the entire amount of the liability of the taxpayer” to include any case in which:

     (a) The assets and income of the taxpayer are less than the full amount of the liability of the taxpayer either paid in a single installment or pursuant to a reasonable installment payment plan; and

     (b) The taxpayer will not have, in the foreseeable future, the money, assets or means to pay the liability of the taxpayer, either paid in a single installment or pursuant to a reasonable installment payment plan, after the taxpayer has paid for the basic living expenses of the taxpayer based on an evaluation of the circumstances and facts relevant to the taxpayer and considering the guidelines adopted by the Internal Revenue Service relating to national and local standards for living expenses.

     2.  The phrase “The amount of the liability of the taxpayer is unclear” to include any case in which:

     (a) The amount or existence of the liability of the taxpayer is dependent upon the outcome of a good faith dispute over the relevant facts or applicable law; and

     (b) The amount of the liability of the taxpayer:

          (1) Has become due to the State, as determined by the date upon which the taxpayer is required to pay a tax, contribution, premium, fee, interest or penalty to the State pursuant to any provision of NRS; and

          (2) Has not been reviewed by the Commission, if applicable.

     3.  The phrase “Such a compromise is appropriate based upon considerations of equity and fairness” to include, without limitation, any case in which:

     (a) The medical condition of the taxpayer or the medical condition of the spouse, parent, sibling or child of the taxpayer to whom the taxpayer provides full-time medical care or living assistance was such that the taxpayer was unable to manage the financial affairs of the taxpayer during the period in which the liability of the taxpayer was incurred;

     (b) The taxpayer incurred the liability, in whole or in part, as a result of the misconduct of an employee of the taxpayer of which the taxpayer was unaware;

     (c) Notwithstanding the conduct which gives rise to the liability of the taxpayer for which a compromise is sought, the taxpayer and any business entities managed, operated or controlled by the taxpayer have a history of compliance with all applicable filing and payment requirements; or

     (d) The taxpayer was the victim of a crime, natural disaster or other unforeseeable occurrence that significantly impacted the ability of the taxpayer to:

          (1) Pay the financial obligations of the taxpayer as such obligations came due in the ordinary course of business; or

          (2) Challenge or petition for review in a timely manner the determination of the liability of the taxpayer when the liability was initially assessed by the Department.

     (Added to NAC by Tax Comm’n by R019-05, eff. 10-31-2005)

      NAC 360.438  Submission and withdrawal of offer to compromise; action by Department and Commission; effect of compromise. (NRS 360.090, 360.263)

     1.  A person may request that the Commission compromise the liability of the person for a tax, contribution, premium, fee, interest or penalty assessed pursuant to the provisions of chapter 360, 360B, 362, 363A, 363B, 364A, 368A, 369, 370, 372, 372A, 374, 377, 377A or 444A of NRS, NRS 482.313 or chapter 585 or 680B of NRS as administered or audited by the Department by submitting to the Department, on a form prescribed by the Department, an offer to compromise the liability of the person.

     2.  An offer to compromise the liability of a person submitted pursuant to subsection 1 must include:

     (a) A statement of the grounds upon which the compromise is sought and any other information to support the offer;

     (b) Copies of such financial information and documentation as may be required by the Department, including, without limitation, financial statements, bank records, accounting ledgers and a statement or explanation of any assets that may be acquired by the person pursuant to the resolution of a pending claim, cause of action, settlement or insurance disbursement, inheritance or an unsatisfied judgment or court order;

     (c) An affirmation, signed under penalty of perjury, attesting to the truthfulness and accuracy of all information and documentation submitted with the offer to compromise; and

     (d) A written statement signed by the person consenting to suspend any and all statutory periods of limitation relevant to the collection of the liability of the taxpayer or the seizure, attachment, garnishment or execution upon property or assets of the taxpayer to satisfy the liability of the taxpayer during the period in which the Commission considers whether to accept or reject the offer of compromise.

     3.  The Department shall review, analyze and verify an offer of compromise and any accompanying information and documentation submitted pursuant to subsection 1.

     4.  If, after reviewing, analyzing and verifying the offer pursuant to subsection 3, the Department determines that:

     (a) The offer does not comply with subsection 1 or does not include adequate supporting information and documentation, the Department shall return the offer to the person who submitted the offer with a written explanation of the deficiencies.

     (b) Except as otherwise provided in paragraph (c), the offer complies with subsection 1, the Department shall forward to the Commission the offer and the recommendation of the Department as to whether the Commission should accept or reject the offer.

     (c) The offer complies with subsection 1 and the Department will recommend that the Commission reject the offer, the Department shall advise the person submitting the offer in writing that the Department will recommend that the Commission reject the offer before forwarding the offer and the recommendation of the Department to the Commission pursuant to paragraph (b). A person so advised may withdraw the offer.

     5.  Except as otherwise provided in this subsection, if a person submits an offer pursuant to subsection 1, the Department shall cease, and shall not commence, any action related to the collection of the liability of the taxpayer or the seizure, attachment, garnishment or execution upon property or assets in satisfaction of the liability until the Commission accepts or rejects the offer. If the Department determines that the offer submitted pursuant to subsection 1 was offered for the purpose of delaying or avoiding the collection of the liability of the person, the Department may continue or commence any action related to the collection of the liability of the taxpayer or the seizure, attachment, garnishment or execution upon property or assets in satisfaction of the liability.

     6.  The Commission will review an offer received from the Department pursuant to subsection 4 and issue a written decision as to whether the Commission accepts or rejects the offer of compromise.

     7.  If the written decision of the Commission issued pursuant to subsection 6 is the acceptance of the offer of compromise, the Commission may:

     (a) Make the acceptance of the offer contingent upon the satisfaction of conditions as the Commission deems appropriate, including, without limitation, that all or part of the amount of the compromise be paid within a specific time frame.

     (b) Allow the person submitting the offer to pay the amount of the compromise in reasonable installments. If the Commission allows the person submitting the offer to pay the amount of the compromise in reasonable installments, the Commission may make the acceptance of the offer contingent upon the person complying with the schedule of installment payments.

     8.  If the Commission makes the acceptance of an offer of compromise contingent upon the satisfaction of a condition pursuant to subsection 7, the Commission will hold a hearing before finally accepting or rejecting the offer to determine whether the conditions upon the acceptance of the offer were satisfied. If the Commission determines that the conditions upon the acceptance of the offer were satisfied, the Commission will issue a written decision to accept the offer of compromise. If the Commission determines that the conditions upon the acceptance of the offer were not satisfied, the Commission will issue a written decision specifying the manner in which such conditions failed to be satisfied.

     9.  Except as otherwise provided in subsection 10, after the Commission has accepted an offer of compromise and the person has tendered the full amount of money offered in the compromise, the compromise will be deemed to be an accord and satisfaction of the liability of the person for that liability which is the subject of the compromise.

     10.  If, after a hearing, the Commission determines that the acceptance by the Commission of an offer of compromise was procured through fraud, misrepresentation or concealment or resulted from a mutual mistake of fact, the Commission may issue a written decision to reinstate the liability of the taxpayer in the amount originally assessed by the Department. The written decision of the Commission is a final decision for the purposes of judicial review.

     11.  The acceptance of an offer of compromise by the Commission pursuant to this section shall not be deemed to be a limitation on the rights and remedies of the Department with respect to any person not named or identified in the offer of compromise.

     (Added to NAC by Tax Comm’n by R019-05, eff. 10-31-2005)

VOLUNTARY DISCLOSURE OF FAILURE TO FILE RETURN

      NAC 360.440  Application for voluntary disclosure. (NRS 360.090)

     1.  If a taxpayer fails to file a return as required by the applicable provisions of chapter 360, 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS and he or she wishes to disclose that fact voluntarily to the Commission, the taxpayer or the taxpayer’s representative must file with the Department an application for voluntary disclosure on a form prescribed by the Commission before the Department has initiated an audit or investigation of the taxpayer.

     2.  The Commission will not accept an application filed pursuant to subsection 1 until the application has been approved and signed by the Director. The Director shall not approve and sign the application until he or she has verified that the Department did not initiate an audit or investigation of the taxpayer before the date that the taxpayer filed an application with the Department pursuant to subsection 1. An application is deemed to be filed with the Department on the date the application is received by the Department.

     3.  After the Director has signed and approved the application, the Commission will provide the taxpayer with a copy of the approved application.

     4.  For the purposes of subsection 2, the Department has initiated an audit or investigation of a taxpayer if the Department has:

     (a) Contacted the taxpayer by telephone, in person or in writing regarding a possible tax liability; or

     (b) Given the taxpayer written notice that an audit will be conducted by the Department concerning liability for the type of tax that the taxpayer wishes to disclose voluntarily pursuant to this section.

     (Added to NAC by Tax Comm’n by R079-01, eff. 9-20-2002)

      NAC 360.442  Duties of taxpayer after approval of application. (NRS 360.090)  Within 90 days after a taxpayer has received a copy of an application approved pursuant to NAC 360.440, the taxpayer must:

     1.  File with the Department the delinquent tax returns for the tax owed for the period being disclosed or, if the period being disclosed exceeds 8 years, for the 8 years immediately preceding the date the application was filed pursuant to NAC 360.440;

     2.  Pay any tax owed for the period described in subsection 1; and

     3.  Submit documentation to the Department of the methodology the taxpayer used to determine his or her tax liability.

     (Added to NAC by Tax Comm’n by R079-01, eff. 9-20-2002)

      NAC 360.444  Circumstances under which Commission will not consider tax liability as being voluntarily disclosed. (NRS 360.090)  The Commission will not consider the tax liability of a taxpayer as being voluntarily disclosed if, after filing an application for voluntary disclosure pursuant to NAC 360.440, the taxpayer:

     1.  Within 90 days after the taxpayer has received a copy of the approved application, fails to file with the Department the delinquent tax returns for the tax owed for the period being disclosed or, if the period being disclosed exceeds 8 years, for the 8 years immediately preceding the date the application was filed pursuant to NAC 360.440;

     2.  Within 90 days after the taxpayer has received a copy of the approved application, fails to pay any tax owed for the period described in subsection 1;

     3.  Fails to make a good faith effort to comply with the applicable provisions of chapter 360, 362, 364A, 369, 370, 372, 372A, 374, 377, 377A, or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS, including, without limitation, registering with the Department, filing tax returns, paying any tax liability and remitting any taxes collected; or

     4.  Fails to provide an accurate estimate of his or her tax liability in the application for voluntary disclosure filed pursuant to NAC 360.440. The taxpayer shall be deemed to have provided an inaccurate estimate of his or her tax liability if:

     (a) The tax liability provided in the application for voluntary disclosure is less than the taxpayer’s actual tax liability by 10 percent or more; and

     (b) The taxpayer is unable to demonstrate to the Department that he or she made a good faith effort to report accurately his or her tax liability in the application for voluntary disclosure.

     (Added to NAC by Tax Comm’n by R079-01, eff. 9-20-2002)

      NAC 360.446  Assessment of penalty and interest on tax liability; appeal of assessment. (NRS 360.090, 360.300)

     1.  If the Commission determines that the taxpayer has made a good faith effort in complying with the requirements set forth in NAC 360.444, the Department shall not assess the penalty and interest set forth in NRS 360.300 on the entire amount of the tax liability.

     2.  If the Commission does not consider the tax liability of a taxpayer to be voluntarily disclosed pursuant to NAC 360.444, the Department shall assess the penalty and interest set forth in NRS 360.300 on the entire amount of the tax liability.

     3.  A taxpayer who wishes to dispute the amount of any penalty or interest assessed by the Department pursuant to subsection 1 or 2 must file a written petition with the Director within 45 days after the taxpayer receives a bill from the Department for that amount. The petition must set forth any information that supports the dispute.

     4.  The Commission will review any petition filed with the Director pursuant to subsection 3 and determine the amount of any tax, penalty or interest owed by the taxpayer. The Commission will notify the taxpayer of its decision by registered or certified mail, return receipt requested.

     5.  The taxpayer must file any additional returns and pay the amount of any tax, penalty or interest that the Commission determines is owed by the taxpayer pursuant to subsection 4 within 60 days after he or she receives the notification from the Commission pursuant to subsection 4.

     (Added to NAC by Tax Comm’n by R079-01, eff. 9-20-2002)

      NAC 360.448  Rights retained by Department. (NRS 360.090)  The Department retains the right to:

     1.  Audit a taxpayer for the period being disclosed or, if the period being disclosed exceeds 8 years, for the 8 years immediately preceding the date the application was filed pursuant to NAC 360.440; and

     2.  Assess any tax, penalty and interest that is owed by the taxpayer.

     (Added to NAC by Tax Comm’n by R079-01, eff. 9-20-2002)

AGREEMENT FOR PAYMENT OF TAXES IN INSTALLMENTS

      NAC 360.450  Agreement for payment over period of 12 months or less. (NRS 360.090, 360.2915)

     1.  Except as otherwise provided in NAC 360.456 and 360.460 and subject to the approval of the Director or the Director’s designee, the Department may enter into an agreement with a taxpayer, upon the request of the taxpayer, that allows the taxpayer to pay taxes, interest and penalties in installments over a period of 12 months or less if:

     (a) The taxpayer submits accurate and complete information that the Department requires to determine whether to enter into the agreement;

     (b) The taxpayer agrees in writing that he or she will comply with all applicable laws and regulations of the Commission during the period in which the agreement is in effect, including, without limitation, reporting and payment requirements;

     (c) The taxpayer agrees in writing that the agreement may be terminated immediately if the taxpayer fails timely to make any payment required by the agreement or defaults in any other reporting or payment requirement;

     (d) The Department determines that as of the date on which the taxpayer requested to enter into the agreement, the taxpayer is unable to pay the entire amount of taxes, interest and penalties due for financial reasons; and

     (e) The amount owed by the taxpayer on the date on which he or she requested to enter into the agreement does not exceed the amount set by the Commission pursuant to NAC 360.454.

     2.  The Department may deny a request to enter into an agreement pursuant to subsection 1 if the taxpayer has not complied with a previous agreement with the Department to pay taxes, interest and penalties in installments.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001; A by R202-08, 10-15-2010)

      NAC 360.452  Requirements for agreement; personal guaranty. (NRS 360.090, 360.2915)

     1.  An agreement to pay taxes, interest and penalties in installments pursuant to NAC 360.450 or 360.456 must:

     (a) Be in writing.

     (b) Except as otherwise provided in this paragraph, contain a personal guaranty by two responsible persons in their individual capacities. If there is only one responsible person, the agreement must contain the personal guaranty of that person in his or her individual capacity. In lieu of or in addition to any personal guaranty required by this paragraph, the Department may require a personal guaranty of any other person agreed upon by the taxpayer and the Department.

     (c) Be accompanied by the initial payment required by the terms of the agreement.

     2.  As used in this section, “responsible person” has the meaning ascribed to it in subsection 2 of NRS 360.297.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001; A by R202-08, 10-15-2010)

      NAC 360.454  Determination of maximum amount of tax liability. (NRS 360.090, 360.2915)  The Commission will determine the maximum amount of tax liability that a taxpayer may have to enter into an agreement with the Department to pay taxes, interest and penalties in installments pursuant to NAC 360.450 or 360.456.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001)

      NAC 360.456  Agreement for payment over period of more than 12 months. (NRS 360.090, 360.2915)

     1.  Except as otherwise provided in NAC 360.460, the Director may, for good cause shown, upon the request of a taxpayer who satisfies the requirements set forth in NAC 360.450, authorize the Department to enter into an agreement with the taxpayer that allows the taxpayer to pay taxes, interest and penalties in installments over a period of more than 12 months.

     2.  As used in this section, “good cause” includes, without limitation, circumstances that would prevent a taxpayer from paying the taxes, interest and penalties in a period of 12 months or less.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001; A by R202-08, 10-15-2010)

      NAC 360.458  Review by Commission. (NRS 360.090, 360.2915)  The Commission may review and deny or approve any agreement entered into by the Department pursuant to NAC 360.450 or 360.456.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001)

      NAC 360.460  Request when tax liability or period of payment excessive; decision by Commission. (NRS 360.090, 360.2915)  If the Department receives a request for an agreement pursuant to NAC 360.450 or 360.456 from a taxpayer whose tax liability exceeds the amount set by the Commission pursuant to NAC 360.454 or whose proposed period of installment payments exceeds 24 months, the Department shall review the request and transmit the request and the recommendation of the Department regarding the request to the Commission. The Commission may authorize the Department to enter into an agreement with such a taxpayer pursuant to NAC 360.450 or 360.456.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001; A by R202-08, 10-15-2010)

      NAC 360.462  Termination, alteration or modification of agreement. (NRS 360.090, 360.2915)

     1.  The Department may terminate an agreement entered into pursuant to NAC 360.450 or 360.456 if the Department determines:

     (a) The taxpayer has not complied with the terms of the agreement;

     (b) The taxpayer provided to the Department incomplete or inaccurate information on which the Department based its determination to enter the agreement; or

     (c) The financial conditions of the taxpayer have changed such that the taxpayer has the ability to pay the full amount of taxes, interest and penalties owed.

     2.  If the Department determines to terminate an agreement pursuant to paragraph (b) or (c) of subsection 1, the Department shall provide the taxpayer with written notice of its intention to terminate the agreement at least 10 days before the date on which the Department intends to terminate the agreement. The notice must contain an explanation of the decision of the Department to terminate the agreement.

     3.  The Department may terminate, alter or modify an agreement entered into pursuant to NAC 360.450 if mutual consent to terminate, alter or modify the agreement exists between the Department and the taxpayer.

     4.  If an agreement is terminated pursuant to this section, the total amount covered by the agreement, including, without limitation, taxes, interest and penalties, is due on the date on which the agreement terminates.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001; A by R202-08, 10-15-2010)

      NAC 360.464  Applicability. (NRS 360.090, 360.2915)  The provisions of NAC 360.450 to 360.464, inclusive, do not:

     1.  Apply to a bankruptcy plan that has been confirmed pursuant to the provisions of 11 U.S.C. §§ 1121 to 1146, inclusive; or

     2.  Limit the ability of a taxpayer to make installment payments pursuant to NRS 361.483.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001)

PARTIAL ABATEMENT OF CERTAIN TAXES

Abatements for New or Expanded Business

      NAC 360.466  Definitions. (NRS 360.750)  As used in NAC 360.466 to 360.4775, inclusive, unless the context otherwise requires, the words and terms defined in NAC 360.468, 360.469 and 360.470 have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Econ. Development by R050-01, eff. 11-9-2001; A by Tax Comm’n by R109-01, 5-13-2002; A by Comm’n on Econ. Development by R078-02, 7-18-2002)

      NAC 360.468  “Commission” defined. (NRS 360.750)  “Commission” means the Commission on Economic Development.

     (Added to NAC by Comm’n on Econ. Development by R050-01, eff. 11-9-2001)

      NAC 360.469  “Eligible machinery or equipment” defined. (NRS 360.750)  “Eligible machinery or equipment” has the meaning ascribed to it in NRS 374.357.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.470  “Partial abatement” defined. (NRS 360.750)  “Partial abatement” means the reduction of a portion of the taxes imposed pursuant to chapter 361, 364A or 374 of NRS, or any combination thereof, which is authorized by NRS 360.750.

     (Added to NAC by Comm’n on Econ. Development by R050-01, eff. 11-9-2001)

      NAC 360.472  Application: Date of submittal; consideration by Commission; certificate of eligibility upon approval. (NRS 360.750, 361.0687, 364A.170, 374.357, 701A.210)

     1.  To apply for a partial abatement, a person must submit an application to the Commission on a form prescribed by the Commission within the period prescribed in subsection 2.

     2.  If the application is for a partial abatement of the taxes imposed pursuant to chapter 361 or 364A of NRS, the application must be submitted not earlier than 18 months before the business is located or expanded in this State. If the application is for a partial abatement of the taxes imposed pursuant to chapter 374 of NRS, the application must be submitted not later than 60 days after the date of acquisition of the eligible machinery or equipment.

     3.  Except as otherwise provided in subsection 4, the Commission will consider an application submitted pursuant to subsection 1 if the application is received:

     (a) At least 15 working days before a regularly scheduled meeting of the Commission, at that meeting; or

     (b) Less than 15 working days before a regularly scheduled meeting of the Commission, at the next regularly scheduled meeting immediately following that meeting.

     4.  If the Commission determines that an application submitted pursuant to subsection 1 requires special or additional review and consideration by the Commission, the Commission may postpone consideration of the application until the next regularly scheduled meeting of the Commission.

     5.  If the Commission approves an application for a partial abatement, the Commission will forward to the Department, with the certificate of eligibility required pursuant to subsection 5 of NRS 360.750, any materials submitted to the Commission in support of the application submitted pursuant to subsection 1.

     (Added to NAC by Comm’n on Econ. Development by R050-01, eff. 11-9-2001; A by Tax Comm’n by R109-01, 5-13-2002)

      NAC 360.474  Factors considered by Commission. (NRS 360.750, 361.0687, 364A.170, 374.357, 701A.210)

     1.  The Commission will consider an application for a partial abatement if the goals of the applicant are consistent with the goals of the Commission concerning industrial development and diversification. The goals of the Commission include, without limitation:

     (a) Diversification from the industries of gaming and hospitality;

     (b) The attraction of basic industries to this State, including, without limitation, manufacturing, warehousing and distribution;

     (c) The attraction to this State of business facilities and services, including, without limitation, corporate headquarters, facilities for research and development, and facilities for services such as technical assistance with products of the business or credit services; and

     (d) The expansion of existing businesses and industries that are consistent with the goals described in paragraphs (a), (b) and (c).

     2.  Before the Commission approves an application for a partial abatement, the Commission will consider whether the applicant:

     (a) Complies with the requirements set forth in NRS 360.750;

     (b) Commits to continue in operation in this State for:

          (1) At least 5 years; or

          (2) The period specified in the agreement executed by the applicant with the Commission pursuant to paragraph (b) of subsection 2 of NRS 360.750,

Ê whichever is later, after the date on which the applicant initially pays taxes to the Department or the county treasurer, as applicable, after the partial abatement has been approved by the Commission;

     (c) Offers primary jobs; and

     (d) If the application concerns a partial abatement of the taxes imposed pursuant to chapter 364A or 374 of NRS, registers with the Department on a form provided by the Department.

     3.  As used in this section, “primary job” means a position of employment offered by an applicant for a partial abatement, the compensation for which is obtained from revenue that is generated outside the economic region in which the business is located.

     (Added to NAC by Comm’n on Econ. Development by R050-01, eff. 11-9-2001)

      NAC 360.4743  Property tax: Percentage, duration and commencement of abatement; certificate of eligibility. (NRS 360.750, 361.0685, 361.0687)

     1.  Except as otherwise provided in NRS 361.0685 or 361.0687, the Commission may not approve a partial abatement pursuant to NRS 361.0685 or 361.0687:

     (a) Of greater percentage of the taxes on real and personal property payable by the business each year pursuant to chapter 361 of NRS than the lesser of:

          (1) Fifty percent; or

          (2) A percentage agreed upon in writing by the business receiving the partial abatement and the governing body of the local government whose tax revenue will be affected by the partial abatement; or

     (b) Of longer duration than the shorter of:

          (1) Ten years; or

          (2) A duration agreed upon in writing by the business receiving the partial abatement and the governing body of the local government whose tax revenue will be affected by the partial abatement.

     2.  If the Commission grants a partial abatement pursuant to NRS 361.0685 or 361.0687 during the period beginning on:

     (a) January 1 and ending on June 30 of the same year, the partial abatement begins to apply on the later of:

          (1) July 1 of the same year; or

          (2) A date agreed upon in writing by the business receiving the partial abatement and the governing body of the local government whose tax revenue will be affected by the partial abatement; or

     (b) July 1 and ending on December 31 of the same year, the partial abatement begins to apply on the later of:

          (1) The date on which the Commission grants the partial abatement; or

          (2) A date agreed upon in writing by the business receiving the partial abatement and the governing body of the local government whose tax revenue will be affected by the partial abatement.

     3.  If the Commission grants a partial abatement pursuant to NRS 361.0685 or 361.0687, the Commission will immediately forward a certificate of eligibility for the partial abatement that states the percentage and duration of the partial abatement to the county assessor of each county in which real or personal property used in connection with the business will be located.

     (Added to NAC by Comm’n on Econ. Development by R078-02, eff. 7-18-2002)

      NAC 360.4745  Business tax: Applicability of partial abatement. (NRS 360.750, 364A.170)  A partial abatement of the taxes imposed pursuant to chapter 364A of NRS that is approved by the Commission for an expanded business:

     1.  Applies only to the taxes due for the additional employees employed by the business as a result of the expansion of the business.

     2.  Does not apply to the taxes due for the employees that were employed by the business before the expansion.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.475  Business tax: Date of eligibility; determination of amount of capital investment required; filing of form of compliance with proof of capital investment. (NRS 360.750, 364A.170)

     1.  For the purposes of NRS 360.225, to determine eligibility for a partial abatement of the taxes imposed pursuant to chapter 364A of NRS, a proposed or expanded business which qualifies as an employer pursuant to NRS 612.055 shall be deemed by the Department to have begun operations in this State:

     (a) If the business is a proposed business, on the date on which the business first pays wages to an employee of the business who performs services for the business in this State.

     (b) If the business is an expanded business, on the date on which the business first pays wages to an employee of the business who was not employed by the business before the expansion.

     2.  To determine the amount of capital investment required pursuant to paragraph (d), (e) or (f) of subsection 2 of NRS 360.750 for a partial abatement of the taxes imposed pursuant to chapter 364A of NRS:

     (a) A capital investment shall be deemed to be any expenditure for an asset that qualifies as “section 1245 property,” as defined in 26 U.S.C. § 1245, if the asset will be used by the proposed business to establish its operations in this State or by the expanded business to expand its operations in this State; and

     (b) The amount paid for such an asset, including any capitalized interest, shall be deemed to be the amount of the capital investment for that asset. Any finance charge, tax or interest paid for the asset must not be included in the determination of the amount of the capital investment for that asset.

     3.  A business for which the Commission has approved a partial abatement of the taxes imposed pursuant to chapter 364A of NRS shall, not later than 30 days after the end of the first fourth quarter in which the business has been in operation after the approval of the partial abatement, file with the Department on a form prescribed by the Department, a statement that the business has complied with the requirements of NRS 360.750. The form must be accompanied by proof that the business has made the capital investment required by the Commission pursuant to NRS 360.750.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.4755  Local school support tax: Determination of eligibility of machinery or equipment. (NRS 360.750, 374.357)

     1.  The Department shall, pursuant to NRS 360.225, determine if machinery or equipment for which a business claims a partial abatement of the taxes imposed pursuant to chapter 374 of NRS qualifies as eligible machinery or equipment pursuant to NRS 374.357.

     2.  The Department shall not determine that machinery or equipment which is leased by a business qualifies for a partial abatement of the taxes imposed pursuant to chapter 374 of NRS.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.476  Local school support tax: Date of eligibility of machinery or equipment. (NRS 360.750, 374.357)  If an application is approved by the Commission for a partial abatement of the taxes imposed pursuant to chapter 374 of NRS, the period of abatement begins on the date on which the applicant takes possession of the first delivery of eligible machinery or equipment at the location designated in the certificate of eligibility issued by the Commission. Upon taking possession of such eligible machinery or equipment, the applicant shall immediately notify the Commission and the Nevada Tax Commission.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.4765  Minimum period of employment of required number of employees. (NRS 360.750, 364A.170, 374.357)  If the Commission approves an application for a partial abatement of the taxes imposed pursuant to chapter 364A or 374 of NRS, the applicant must employ the number of employees required by the Commission for approval of the application by the last day of the first fourth quarter that the applicant has been in operation after the partial abatement has been approved by the Commission and must continue to employ at least that number of employees for:

     1.  At least 5 years; or

     2.  The period specified in the agreement executed by the applicant with the Commission pursuant to paragraph (b) of subsection 2 of NRS 360.750,

Ê whichever is later, after the last day of that fourth quarter.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.477  Refund upon approval of application. (NRS 360.750, 364A.170, 374.357)

     1.  If the Commission approves an application for a partial abatement of the taxes imposed pursuant to chapter 364A of NRS, the applicant is eligible for a refund of any taxes imposed pursuant to chapter 364A of NRS which were paid previously by the applicant and which are subject to the abatement.

     2.  If the Commission approves an application for a partial abatement of the taxes imposed pursuant to chapter 374 of NRS, the applicant is eligible for a refund of any taxes imposed pursuant to chapter 374 of NRS which were paid previously by the applicant and which are subject to the abatement, if the Department determines pursuant to NAC 360.4755 that the machinery or equipment qualifies as eligible machinery or equipment and:

     (a) If the machinery or equipment was acquired outside this State from a retailer that is not registered with the Nevada Tax Commission, the application for the partial abatement was made:

          (1) Before the acquisition of the machinery or equipment; or

          (2) After the acquisition of the machinery or equipment and within 60 days after the date on which the taxes on the acquisition imposed pursuant to chapter 374 of NRS were due; or

     (b) If the machinery or equipment was acquired from a retailer that is registered with the Nevada Tax Commission, the application for the partial abatement was made within 60 days after the payment of the taxes on the acquisition imposed pursuant to chapter 374 of NRS.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

      NAC 360.4775  Determination of tax owed upon failure to continue to meet requirements; appeal. (NRS 360.750, 364A.170, 374.357)

     1.  If the Department finds that a business for which the Commission has approved an application for a partial abatement of the taxes imposed pursuant to chapter 364A or 374 of NRS has failed to continue to meet the requirements for the partial abatement imposed by the Commission pursuant to NRS 360.750, the Department shall determine the amount of tax owed to the Department in the manner prescribed in NRS 360.300 to 360.400, inclusive.

     2.  A business against whom the Department has made such a determination may, in the manner prescribed in NRS 360.300 to 360.400, inclusive, file an appeal with the Nevada Tax Commission for a determination whether the business has substantially complied with the requirements for the partial abatement approved by the Commission pursuant to NRS 360.750.

     (Added to NAC by Tax Comm’n by R109-01, eff. 5-13-2002)

Miscellaneous Abatements

      NAC 360.478  Abatements for new grocery store within Southern Nevada Enterprise Community. (§ 6 of ch. 198, Stats. 2005, as amended by § 16 of ch. 407, Stats. 2007)

     1.  A person who qualifies pursuant to section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784, may apply to the Commission for a partial abatement of any personal property tax imposed pursuant to chapter 361 of NRS and any tax on the gross receipts from the sale, storage, use or other consumption of eligible machinery or equipment imposed pursuant to chapter 374 of NRS for a new grocery store which the person intends to locate within the Southern Nevada Enterprise Community established pursuant to 24 C.F.R. Part 597.

     2.  The application must be submitted on a form prescribed by the Executive Director of the Commission within the applicable period prescribed in subsection 3. The application must include, without limitation:

     (a) A certificate of endorsement from the governing body of the county, city or town in which the new grocery store will be located, which must:

          (1) Be issued by the governing body of the county, city or town in a manner consistent with the procedures adopted by the governing body for evaluating the benefits of tax abatements for the economic development of the county, city or town; and

          (2) Describe the partial abatement of taxes determined by the governing body of the county, city or town to be beneficial for the economic development of the county, city or town;

     (b) Evidence satisfactory to the Commission that the governing body of the county, city or town provided notice of the hearing at which the governing body considered whether to endorse the application to the board of trustees of the school district in which the grocery store will be located;

     (c) Evidence satisfactory to the Commission that the new grocery store for which the partial abatement of taxes is sought will be located within the Southern Nevada Enterprise Community; and

     (d) Evidence satisfactory to the Commission that the total amount of partial abatements of taxes applied for pursuant to this section, together with the total amount of partial abatements of taxes to which the applicant is entitled pursuant to NRS 361.4722, 361.4723 and 361.4724, does not exceed 82 percent of the total amount of personal property taxes otherwise due on all property for which the applicant is seeking a partial abatement pursuant to this section.

     3.  If the application is for a partial abatement of any personal property tax imposed pursuant to chapter 361 of NRS, the application must be submitted not earlier than 18 months before the new grocery store is located within the Southern Nevada Enterprise Community. If the application is for a partial abatement of the taxes imposed pursuant to chapter 374 of NRS, the application must be submitted not later than 60 days after the date of acquisition of the eligible machinery or equipment.

     4.  Except as otherwise provided in subsection 5:

     (a) If an application submitted to the Commission pursuant to this section is received at least 15 business days before a regularly scheduled meeting of the Commission, the Commission will consider the application at that meeting; or

     (b) If an application submitted to the Commission pursuant to this section is received less than 15 business days before a regularly scheduled meeting of the Commission, the Commission will consider the application at the next regularly scheduled meeting immediately following that meeting.

     5.  If the Commission determines that an application submitted pursuant to this section requires special or additional review and consideration by the Commission, the Commission may postpone consideration of the application until the next regularly scheduled meeting of the Commission.

     6.  The Commission will approve an application for a partial abatement if the applicant satisfies all requirements of this section and subsection 3 of section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784.

     7.  If the Commission approves an application for a partial abatement, the Commission will forward to the Department, with the certificate of eligibility required pursuant to subsection 4 of section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784, any materials submitted to the Commission in support of the application submitted pursuant to this section.

     8.  If the Commission approves an application for a partial abatement from the tax imposed pursuant to chapter 374 of NRS, the taxpayer is eligible for an abatement from the tax for not more than 2 years for eligible machinery or equipment which is leased or purchased. In the case of machinery or equipment that is leased, the lessee is the taxpayer who is eligible for an abatement.

     9.  If a person whose partial abatement has been approved pursuant to this section and is in effect:

     (a) Ceases to meet the requirements set forth in this section or section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784; or

     (b) Ceases operation of the grocery store before the expiration of the period specified in the agreement the applicant executed with the Commission pursuant to subsection 3 of section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784,

Ê the person shall pay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, an amount equal to the amount of the tax abatement that was allowed pursuant to this section before the failure of the person to comply with the agreement fully, unless the Nevada Tax Commission determines that the person has substantially complied with the requirements of the agreement and section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784. Except as otherwise provided in NRS 360.232 and 360.320, the person shall, in addition to the amount required to be paid pursuant to this subsection, pay interest on that amount at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment of the tax would have been due had the partial abatement not been approved until the date of payment of the tax.

     10.  As used in this section, unless the context otherwise requires:

     (a) “Commission” means the Commission on Economic Development.

     (b) “Eligible machinery or equipment” has the meaning ascribed to it in subsection 3 of NRS 374.357.

     (c) “Grocery store” has the meaning ascribed to it in subsection 7 of section 6 of chapter 198, Statutes of Nevada 2005, at page 643, as amended by section 16 of chapter 407, Statutes of Nevada 2007, at page 1784.

     (Added to NAC by Comm’n on Econ. Development by R168-07, eff. 4-17-2008)

      NAC 360.4785  Abatements for expansion of grocery store within Southern Nevada Enterprise Community. (§ 7 of ch. 198, Stats. 2005, as amended by § 17 of ch. 407, Stats. 2007)

     1.  A person who qualifies pursuant to section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785, may apply to the Commission for a partial abatement of any tax on the gross receipts from the sale, storage, use or other consumption of eligible machinery or equipment imposed pursuant to chapter 374 of NRS for the expansion of a grocery store which is located within the Southern Nevada Enterprise Community established pursuant to 24 C.F.R. Part 597.

     2.  The application must be submitted on a form prescribed by the Executive Director of the Commission within the applicable period prescribed in subsection 3. The application must include, without limitation:

     (a) A certificate of endorsement from the governing body of the county, city or town in which the grocery store is located, which must:

          (1) Be issued by the governing body of the county, city or town in a manner consistent with the procedures adopted by the governing body for evaluating the benefits of tax abatements for the economic development of the county, city or town; and

          (2) Describe the partial abatement of taxes determined by the governing body of the county, city or town to be beneficial for the economic development of the county, city or town;

     (b) Evidence satisfactory to the Commission that the governing body of the county, city or town provided notice of the hearing at which the governing body considered whether to endorse the application to the board of trustees of the school district in which the grocery store is located;

     (c) Evidence satisfactory to the Commission that the grocery store for which the partial abatement of taxes is sought is located within the Southern Nevada Enterprise Community; and

     (d) Evidence satisfactory to the Commission that the total amount of any partial abatement of taxes applied for pursuant to this section, together with the total amount of partial abatements of taxes to which the applicant is entitled pursuant to NRS 361.4722, 361.4723 and 361.4724, does not exceed 82 percent of the total amount of personal property tax otherwise due on all property for which the applicant is seeking a partial abatement pursuant to this section.

     3.  The application must be submitted not later than 60 days after the date of acquisition of the eligible machinery or equipment.

     4.  Except as otherwise provided in subsection 5:

     (a) If an application submitted to the Commission pursuant to this section is received at least 15 business days before a regularly scheduled meeting of the Commission, the Commission will consider the application at that meeting; or

     (b) If an application submitted to the Commission pursuant to this section is received less than 15 business days before a regularly scheduled meeting of the Commission, the Commission will consider the application at the next regularly scheduled meeting immediately following that meeting.

     5.  If the Commission determines that an application submitted pursuant to this section requires special or additional review and consideration by the Commission, the Commission may postpone consideration of the application until the next regularly scheduled meeting of the Commission.

     6.  The Commission will approve an application for a partial abatement if the applicant satisfies all requirements of this section and subsection 3 of section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785.

     7.  If the Commission approves an application for a partial abatement, the Commission will forward to the Department, with the certificate of eligibility required pursuant to subsection 4 of section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785, any materials submitted to the Commission in support of the application submitted pursuant to this section.

     8.  If the Commission approves an application for a partial abatement, the taxpayer is eligible for an abatement from the tax for not more than 2 years for eligible machinery or equipment which is leased or purchased. In the case of machinery or equipment that is leased, the lessee is the taxpayer who is eligible for an abatement.

     9.  If a person whose partial abatement has been approved pursuant to this section and is in effect:

     (a) Ceases to meet the requirements set forth in this section or section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785; or

     (b) Ceases operation of the grocery store before the expiration of the period specified in the agreement the applicant executed with the Commission pursuant to subsection 3 of section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785,

Ê the person shall pay to the Department an amount equal to the amount of the tax abatement that was allowed pursuant to this section before the failure of the person to comply with the agreement fully, unless the Nevada Tax Commission determines that the person has substantially complied with the requirements of the agreement and section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785. Except as otherwise provided in NRS 360.232 and 360.320, the person shall, in addition to the amount required to be paid pursuant to this subsection, pay interest on that amount at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment of the tax would have been due had the partial abatement not been approved until the date of payment of the tax.

     10.  As used in this section, unless the context otherwise requires:

     (a) “Commission” means the Commission on Economic Development.

     (b) “Eligible machinery or equipment” has the meaning ascribed to it in subsection 3 of NRS 374.357.

     (c) “Grocery store” has the meaning ascribed to it in subsection 7 of section 7 of chapter 198, Statutes of Nevada 2005, at page 644, as amended by section 17 of chapter 407, Statutes of Nevada 2007, at page 1785.

     (Added to NAC by Comm’n on Econ. Development by R168-07, eff. 4-17-2008)

      NAC 360.479  Abatements for certain energy-efficient structures: Interpretation of certain statutory terms. (NRS 360.090, 360.200, §§ 15 and 15.5 of ch. 539, Stats. 2007)  For the purposes of:

     1.  Subsection 5 of section 15 of chapter 539, Statutes of Nevada 2007, the Department shall interpret the term:

     (a) “Building” to mean a building or other structure that:

          (1) Meets the requirements of paragraphs (a), (b) and (c) of that subsection; and

          (2) Is described in the application for registration of the construction project with the Office of Energy for the purpose of obtaining the tax exemption provided pursuant to paragraph (d) of subsection 1 of NRS 374.307, as amended by chapter 2, Statutes of Nevada 2005, 22nd Special Session, at page 71,

Ê other than any building or other structure for which the principal use is as a residential dwelling for not more than four families.

     (b) “Construction contract” to mean a contract between an owner of real property or an affiliate or subsidiary of the owner, and a contractor or construction manager which:

          (1) Defines their respective roles and responsibilities for the construction of a project on the property;

          (2) Establishes the scope of work, the amount of money to be paid to the contractor or construction manager and the allowable time for the duration of the contract; and

          (3) Describes the terms and conditions of a construction project.

     (c) “Preconstruction contract” to mean a written and executed agreement that:

          (1) Precedes the construction of or the execution of a construction contract for a project for which a partial tax abatement is sought;

          (2) Clearly indicates a commitment to construct the project; and

          (3) Is entered into to provide at least one of the following services relating to the construction project:

               (I) Project financing;

               (II) Engineering;

               (III) Design;

               (IV) Architecture;

               (V) Labor; or

               (VI) Subcontracting.

     (d) “Used in the construction of a building” to mean attached to or incorporated into a building by a contractor in the performance of a construction contract in such a manner as to:

          (1) Become an integral or inseparable part of the building; or

          (2) Become a fixture to the building.

     2.  Section 15.5 of chapter 539, Statutes of Nevada 2007, the Department shall interpret the term “building or other structure” to mean a building or other structure that:

     (a) Meets the requirements of paragraphs (a), (b) and (c) of subsection 1 of that section; and

     (b) Is described in the application for registration of the construction project with the Office of Energy for the purpose of obtaining the partial abatement of taxes provided pursuant to the former provisions of NRS 361.0775,

Ê other than any building or other structure for which the principal use is as a residential dwelling for not more than four families.

     (Added to NAC by Tax Comm’n by R084-07, eff. 12-5-2007)

OVERPAYMENTS, CREDITS AND REFUNDS

General Provisions

      NAC 360.480  Documentation required with claim for refund; time for filing claim for refund of interest or penalty. (NRS 360.090)

     1.  Except as otherwise provided in NAC 360.490 to 360.496, inclusive, and 360.502 to 360.516, inclusive, a claim for a refund must be accompanied by:

     (a) A statement setting forth the amount of the claim;

     (b) A statement setting forth all grounds upon which the claim is based;

     (c) All evidence the claimant relied upon in determining the claim, including affidavits of any witnesses; and

     (d) Any other information and documentation requested by the Department.

     2.  A claim for a refund of interest or a penalty that was paid by the taxpayer related to a tax administered by the Department must be filed within 3 years after the date of payment of the interest or penalty.

     [Tax Comm’n, Practice Rule No. 22, eff. 11-15-77]—(NAC A 1-12-96; R044-01, 1-7-2002, eff. 11-1-2001; R032-03, 10-30-2003)

Sales and Use Taxes

      NAC 360.490  Claim for credit or refund: Authorization and requirements for filing; action upon approval. (NRS 360.090, 372.725, 374.725)

     1.  If a taxpayer has overpaid any tax pursuant to chapter 372 or 374 of NRS, or any interest or penalty relating thereto, the taxpayer may file a claim for a credit or refund with the Department. The Department shall not consider such a claim unless the claim is filed within the statutory period provided in NRS 372.635 or 374.640, as appropriate.

     2.  A claim for a credit or refund must include documentation supporting the claim.

     3.  If the overpayment is due to an error or omission in a previously filed return, the claim should be in the form of an amended return, as prescribed by the Department, for each period in which the tax was originally reported. The amended return must specify the original amounts reported, the correct amounts and the differences.

     4.  The person requesting the credit or refund must be the person who was legally obligated to remit the tax to the Department or the person’s legal successor or authorized representative.

     5.  Upon a determination by the Department that an overpayment was made by the taxpayer and upon the approval of the State Board of Examiners or board of county commissioners, as appropriate, the Department shall issue a statement to the taxpayer allowing a credit in the amount of the overpayment unless the taxpayer specifically requests a refund on the claim. The credit may be applied to any future tax liability of the taxpayer. If the taxpayer requests a refund, the Department shall issue a refund to the taxpayer in an amount which is equal to the amount of the credit owed to the taxpayer at the time the request for a refund is made. When applicable, the Department shall deduct from the credit or refund an amount equal to the amount deducted and withheld by the taxpayer for reimbursement pursuant to NRS 372.370 or 374.375, as appropriate, for the cost of collecting the tax being credited or refunded in accordance with this section.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.492  Provision of credit or refund to customer; resale of returned property. (NRS 360.090, 372.725, 374.725)

     1.  The retailer shall keep adequate records that document any refund or credit made to a customer.

     2.  If a retailer credits or refunds to a customer the full sales price of returned goods:

     (a) Before the retailer remits the tax to the Department, the amount of the sales price so credited or refunded must not be included in the gross receipts of the retailer in the return filed by the retailer for that period. A retailer shall file a return as required in NRS 372.360 or 374.365, as appropriate, even if, as a result of providing a credit or refund to a customer, there is no tax due from the retailer.

     (b) After the retailer has remitted the tax to the Department, the retailer may deduct the amount of the sales price so credited or refunded from gross receipts on the return filed by the retailer for the period in which the credit was given or refund was made if the tax rates in the two periods are the same. If the tax rates are not the same, the retailer must submit to the Department an amended return for the period in which the original sale was made. If a retailer has insufficient gross receipts during the period in which a credit or refund has been made to a customer to offset the credit or refund so made, the retailer may take that amount as a credit against gross receipts and report a negative amount. Unless the retailer has requested a refund, the Department shall issue a statement to the retailer allowing a credit that may be applied against future tax liability of the retailer. If the retailer requests a refund, the Department shall issue a refund to the retailer in an amount that is equal to the amount of the credit owed to the retailer at the time the request is made.

     3.  If a customer has erroneously paid sales tax to a retailer, the customer must first seek a credit or refund of the tax from the retailer. If the customer attempts, but is unable, to receive the credit or refund from the retailer, the customer may apply for the credit or refund directly from the Department. When applicable, the Department shall deduct from the credit or refund to be paid to the customer an amount equal to the amount deducted and withheld by the retailer for reimbursement pursuant to NRS 372.370 or 374.375, as appropriate, for the cost of collecting the tax being credited or refunded.

     4.  When any returned tangible personal property is resold, the sale is subject to the tax pursuant to chapter 372 or 374 of NRS.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.494  Extension of period for filing formal claim. (NRS 360.090, 372.725, 374.725)  The taxpayer may submit a formal claim, and any information relating thereto, after the statutory period for filing a claim has elapsed if, before the end of the statutory period, the taxpayer notifies the Department in writing of his or her intent to submit the claim. If the Department agrees to extend the period allowed for filing such a claim, the date on which the taxpayer filed the claim shall be deemed to be the date on which the taxpayer notified the Department in writing of his or her intent to submit the claim.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.496  Appeal of denial of claim. (NRS 360.090, 372.725, 374.725)  Except as otherwise provided by specific statute, if the Department denies any claim, the claimant may appeal the decision in the manner provided in NRS 360.245.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

Business Tax

      NAC 360.502  “Business tax” defined. (NRS 360.090)  As used in NAC 360.502 to 360.516, inclusive, unless the context otherwise requires, “business tax” means the tax imposed before October 1, 2003, for the privilege of conducting business in this State.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.504  Filing of claim for refund of overpayment. (NRS 360.090, 360.2935)  Any taxpayer who has a claim that the taxpayer overpaid the business tax may file a claim seeking a refund of the overpayment in accordance with NAC 360.502 to 360.516, inclusive.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.506  Certification of excess amount collected; provision of credit and refund. (NRS 360.090, 360.2935)  If the Department determines that any business tax, or any penalty or interest relating thereto, has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and certify to the State Board of Examiners the amount collected in excess of the amount legally due and the business or person from which it was collected or by whom paid. If approved by the State Board of Examiners, the excess amount collected or paid must be credited on any amounts then due from the person or business under this chapter, and the balance refunded to the person or business, or its successors, administrators or executors.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.508  Limitations on claims for refund or credit; form and contents of claim; failure to file claim; rejection of claim. (NRS 360.090, 360.2935)

     1.  Except as otherwise provided in NRS 360.235 and 360.395:

     (a) No refund may be allowed on a business tax unless a claim for it is filed with the Department within 3 years after the last day of the month following the close of the period for which the overpayment was made.

     (b) No credit may be allowed for a business tax after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the Department within that period.

     2.  Each claim for a credit or refund of the business tax must:

     (a) Be in writing;

     (b) State the specific grounds upon which the claim is founded; and

     (c) Include documentation supporting the claim.

     3.  Failure to file a claim for a credit or refund of the business tax within the time prescribed by this section constitutes a waiver of any demand against the State on account of overpayment.

     4.  Within 30 days after rejecting any claim in whole or in part, the Department shall serve notice of its action on the claimant in the manner prescribed for service of notice of a deficiency determination.

     5.  Except as otherwise provided by specific statute, the claimant may appeal the decision in the manner provided in NRS 360.245.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.510  Overpayment due to error or omission in previously filed return; authority to request credit or refund; action on approval of claim. (NRS 360.090, 360.2935)

     1.  If the overpayment of the business tax is due to an error or omission in a previously filed return, the claim should be in the form of an amended return, as prescribed by the Department, for each period in which the business tax was originally reported. The amended return must specify the original amounts reported, the correct amounts and the differences.

     2.  The person requesting the credit or refund of the business tax must be the person who was legally obligated to remit the business tax to the Department or the person’s legal successor or authorized representative.

     3.  Upon a determination that an overpayment was made by the taxpayer and upon approval of the State Board of Examiners, the Department shall issue a statement to the taxpayer allowing a credit in the amount of the overpayment unless the taxpayer has specifically requested a refund on the claim. The credit may be applied to any future tax liability of the taxpayer. If the taxpayer requests a refund, the Department shall issue a refund to the taxpayer in an amount which is equal to the amount of the credit owed to the taxpayer at the time the request for a refund is made.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.512  Extension of period for filing formal claim. (NRS 360.090, 360.2935)  The taxpayer may submit a formal claim for a credit or refund of the business tax, and any information relating thereto, after the 3-year period if, before the end of that period, the taxpayer notifies the Department in writing of his or her intent to submit the claim. If the Department agrees to extend the period allowed for filing such a claim, the date on which the taxpayer filed the claim shall be deemed to be the date on which the taxpayer notified the Department in writing of his or her intent to submit the claim.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.514  Claims filed on or before September 30, 2003: Disallowance and appeal; judicial enforcement. (NRS 360.090, 360.2935)

     1.  The provisions of this section apply to claims for a credit or refund of the business tax that were filed with the Department of Taxation on or before September 30, 2003.

     2.  If the Department fails to mail notice of action on a claim for a credit or refund of the business tax within 6 months after the claim is filed, the claimant may consider the claim disallowed and file an appeal with the Nevada Tax Commission within 30 days after the last day of the 6-month period. If the claimant is aggrieved by the decision of the Commission rendered on appeal, the claimant may, within 90 days after the decision is rendered, bring an action against the Department on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

     3.  If judgment is rendered for the plaintiff, the amount of the judgment must first be credited toward any fee or tax due from the plaintiff.

     4.  The balance of the judgment must be refunded to the plaintiff.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

      NAC 360.516  Claims filed on or after October 1, 2003: Disallowance and appeal; judicial enforcement. (NRS 360.090, 360.2935)

     1.  The provisions of this section apply to claims for a credit or refund of the business tax that are filed with the Department of Taxation on or after October 1, 2003.

     2.  If the Department fails to mail notice of action on a claim for a credit or refund of the business tax within 6 months after the claim is filed, the claimant may consider the claim disallowed and file an appeal for an oral hearing within 45 days after the last day of the 6-month period. If the claimant is aggrieved by the decision of the hearing officer rendered on appeal, the claimant may, within 30 days after the decision is rendered, file an appeal with the Commission. If the claimant is aggrieved by the decision of the Commission rendered on appeal, the claimant may, within 90 days after the decision is rendered, bring an action against the Department on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

     3.  If judgment is rendered for the plaintiff, the amount of the judgment must first be credited toward any fee or tax due from the plaintiff.

     4.  The balance of the judgment must be refunded to the plaintiff.

     (Added to NAC by Tax Comm’n by R032-03, eff. 10-30-2003)

ELECTRONIC SUBMISSION OF RETURNS AND REMISSION OF PAYMENTS

      NAC 360.550  Definitions. (NRS 360.090, 360.092)  As used in NAC 360.550 to 360.598, inclusive, the words and terms defined in NAC 360.552 to 360.582, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.552  “Authorized user” defined. (NRS 360.090, 360.092)  “Authorized user” means a person who is granted authority by the taxpayer account security administrator to access taxpayer information available on the website of the Department, located at https://www.nevadatax.nv.gov/web/ on the World Wide Web.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.554  “Automated clearinghouse” and “ACH” defined. (NRS 360.090, 360.092)  “Automated clearinghouse” or “ACH” means any federal reserve bank, or an organization established in agreement with the National Automated Clearing House Association, that operates as a clearinghouse for transmitting or receiving entries between banks or bank accounts and authorizes an electronic transfer of money between banks or bank accounts.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.556  “Automated clearinghouse credit” defined. (NRS 360.090, 360.092)  “Automated clearinghouse credit” means an electronic transfer of money cleared through the ACH system that is generated by a person instructing the person’s bank to charge his or her bank account and deposit the money in the bank account of the State.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.558  “Automated clearinghouse debit” defined. (NRS 360.090, 360.092)  “Automated clearinghouse debit” means a transaction in which the Department, through its designated vendor, originates an automated clearinghouse transaction debiting a person’s bank account and crediting the bank account of the State for an amount due.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.560  “Electronic return” defined. (NRS 360.090, 360.092)  “Electronic return” means a tax return that is prepared using computer software and transmitted electronically to the Department and includes all the data entered into a return, statement or other document.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.562  “Electronic signature” defined. (NRS 360.090, 360.092)  “Electronic signature” means a user name attached to or logically associated with a record and executed or adopted by a taxpayer with the intent to sign an electronic return, statement or other document.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.564  “Electronic transfer of money” defined. (NRS 360.090, 360.092)  “Electronic transfer of money” means any transfer of money, other than a transaction initiated by a check, draft or other similar paper instrument, that is initiated through an electronic terminal, computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution or a person holding an account on behalf of another to debit or credit an account.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.566  “Financial institution” defined. (NRS 360.090, 360.092)  “Financial institution” has the meaning ascribed to it in 31 U.S.C. § 5312(a)(2)(A) to (F), inclusive.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.568  “NevadaTax access code” defined. (NRS 360.090, 360.092)  “NevadaTax access code” means a personal identification number issued to a person by the Department that allows the person to become a website user and to access and file tax information online at https://www.nevadatax.nv.gov/web/ on the World Wide Web.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.570  “Permit” defined. (NRS 360.090, 360.092)  “Permit” means one or more tax licenses or registrations obtained from the Department by completing and submitting a Nevada Business Registration by mailing or delivering it to the Department or by completing the Nevada Business Registration online at https://www.nevadatax.nv.gov/web/ on the World Wide Web.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.572  “Security access” defined. (NRS 360.090, 360.092)  “Security access” means the ability of a taxpayer or a taxpayer account security administrator to access the taxpayer’s online account, conduct online transactions, designate authorized users, specify the level of access granted to an authorized user and modify or terminate the access of any authorized user.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.574  “Signature” defined. (NRS 360.090, 360.092)  “Signature” includes an electronic signature.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.576  “Sole proprietor” defined. (NRS 360.090, 360.092)  “Sole proprietor” includes a business that is treated as a sole proprietor under the Internal Revenue Code.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.578  “Taxpayer account security administrator” defined. (NRS 360.090, 360.092)  “Taxpayer account security administrator” means a person appointed and authorized by a taxpayer to administer security access on the Department’s website, located at https://www.nevadatax.nv.gov/web/ on the World Wide Web.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.580  “Transaction fee” defined. (NRS 360.090, 360.092)  “Transaction fee” means a per item fee that is set forth in the State’s contract with a third-party electronic services provider for each online transaction that is conducted with the Department.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.582  “Website user” defined. (NRS 360.090, 360.092)  “Website user” means a taxpayer who, by way of providing specific information requested by the Department through its website registration process, has obtained a username and password enabling the taxpayer to conduct transactions and access his or her account information online at https://www.nevadatax.nv.gov/web/ on the World Wide Web.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.584  Applicability of provisions. (NRS 360.090, 360.092)  NAC 360.550 to 360.598, inclusive, apply to online registration, filing and payment by electronic transfer of money for taxes, fees, interest, penalties or other charges provided for in chapters 360, 361, 362, 363A, 363B, 368A, 369, 370, 372, 372A, 374, 377, 377A and 444A of NRS and to any fee provided for in NRS 482.313 or chapter 680B of NRS.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.586  Taxpayer service center website. (NRS 360.090, 360.092)  The Department’s taxpayer service center website, located at https://www.nevadatax.nv.gov/web/ on the World Wide Web, provides taxpayers with the ability to conduct transactions and review tax account information on the Internet.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.588  Online registration with Department. (NRS 360.090, 360.092)

     1.  To register online with the Department, a person must submit a completed Nevada Business Registration and confirm the registration by clicking on the certification button on the Department’s website. By clicking on the certification button, a person represents that:

     (a) The information contained in the online Nevada Business Registration is true and accurate; and

     (b) The signatory is duly authorized to act on behalf of the business.

     2.  To become a website user of the Department’s website, a taxpayer who has not obtained a permit from the Department must:

     (a) Provide, during the website registration process:

          (1) The legal name and the federal employer identification number of the registrant; or

          (2) If the registrant is a sole proprietor, the legal name and the social security number of the registrant;

     (b) Submit the legal name and electronic mail address of the taxpayer account security administrator;

     (c) Submit a completed online Nevada Business Registration; and

     (d) Confirm, by clicking on the certification button on the website upon completion of the registration process, that:

          (1) The information contained in the online Nevada Business Registration is true and accurate;

          (2) The signatory is duly authorized to act on behalf of the business; and

          (3) Security access is granted to the taxpayer account security administrator.

     3.  To become a website user of the Department’s website, a taxpayer who has a permit issued by the Department must:

     (a) Provide, during the website registration process, the legal name of the registrant and any one of the following:

          (1) The registrant’s federal employer identification number;

          (2) If the registrant is a sole proprietor, the registrant’s social security number; or

          (3) The permit number assigned to the registrant by the Department;

     (b) Provide selected information from a return that was previously filed by the registrant;

     (c) Provide the legal name and electronic mail address of the taxpayer account security administrator; and

     (d) Confirm, by clicking on the certification button on the website upon completion of the registration process, that:

          (1) The information contained in the website registration is true and accurate;

          (2) The website user is duly authorized to act on behalf of the business and to receive confidential information; and

          (3) Security access is granted to the taxpayer account security administrator.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.590  Taxpayer account security administrator: Responsibility for authorized user. (NRS 360.090, 360.092)  A taxpayer account security administrator shall be deemed to have authorized and assumed responsibility for an authorized user accessing the account of the taxpayer and filing an electronic return on behalf of the taxpayer on the Department’s website.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.592  Electronic filing of documents: Signature. (NRS 360.090, 360.092)

     1.  To file an electronic return online, a taxpayer, a taxpayer account security administrator or an authorized user must affix the taxpayer’s electronic signature to the taxpayer’s electronic return. Use of the taxpayer’s electronic signature is the taxpayer’s declaration that, to the best of the taxpayer’s knowledge, information and belief, the electronic return is true, accurate and complete.

     2.  A person shall be deemed to have affixed his or her signature to a tax return or other document filed electronically with the Department by using his or her NevadaTax access code and checking the checkbox on the NevadaTax online registration.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.594  Electronic returns; zero returns. (NRS 360.090, 360.092)

     1.  For each electronic return of taxes, fees, interest, penalties or other charges, a return must be completed and submitted with payment made no later than midnight Pacific Time on the return due date. Online payment may be submitted only by automated clearinghouse credit or automated clearinghouse debit.

     2.  If a person submits an electronic return but sends payment through the United States mail, a copy of the printout of the electronic return confirmation page must be submitted with the payment and must be postmarked by the return due date.

     3.  A zero-return must be submitted in the event that no taxes are due for the reporting period in accordance with statute.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.596  Electronic transfers of money. (NRS 360.090, 360.092)

     1.  An electronic transfer of money must be made by an automated clearinghouse credit or automated clearinghouse debit.

     2.  A taxpayer is responsible for paying any fees assessed against the taxpayer by the taxpayer’s bank in connection with an electronic transfer of money.

     3.  The Department is responsible for paying transaction fees assessed by the State’s bank in connection with an electronic transfer of money.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

      NAC 360.598  Maintenance of records by taxpayers. (NRS 360.090, 360.092)  Unless a different period of time is prescribed by statute, for each electronic return of taxes, fees, interest, penalties or other charges, the taxpayer shall keep records, receipts, invoices and other pertinent papers to substantiate the electronic return for 4 years following the later of the due date of the return or the date the electronic return was filed with the Department.

     (Added to NAC by Tax Comm’n by R062-05, eff. 10-31-2005)

CLAIMS OF OWNERSHIP INTEREST IN PROPERTY TRANSMITTED TO OR SEIZED BY DEPARTMENT

      NAC 360.610  Written claim: Executed under oath; contents; action of Department on filing. (NRS 360.090, 360.535)

     1.  To claim an ownership interest in property transmitted to or seized by the Department pursuant to NRS 360.530, a person who does not owe any tax to the Department must file a written claim with the Department at least 3 days before the date set for the sale of the property.

     2.  A written claim filed pursuant to subsection 1 must be executed under oath by the person claiming the ownership interest and must contain:

     (a) The name of the person filing the claim;

     (b) An address in this State where the person may be served by mail;

     (c) A description of the property in which the person claims an interest;

     (d) A description of the interest claimed; and

     (e) A statement that sets forth the facts upon which the person bases his or her claim.

Ê The person may attach to the written claim any documents that support the claim.

     3.  If a claim is filed pursuant to this section, the Department shall not conduct a sale of the property to which the claim pertains until a final decision has been issued pursuant to NAC 360.612.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001)—(Substituted in revision for NAC 360.484)

      NAC 360.612  Administrative hearing: Date of hearing; notice; procedure; notice of findings of fact, conclusions of law and decision; appeal. (NRS 360.090, 360.535)

     1.  A hearing officer shall conduct an administrative hearing after the Department receives a claim filed pursuant to NAC 360.610 to determine ownership of the property to which the claim pertains.

     2.  Except as otherwise provided in subsection 3, the hearing officer shall conduct an administrative hearing pursuant to this section within 15 days after the Department receives a claim filed pursuant to NAC 360.610. The hearing officer may continue such a hearing for good cause shown.

     3.  An administrative hearing may be conducted pursuant to this section on the date on which the property to which the claim pertains is seized or transmitted to the Department if, on that date:

     (a) The ownership of the property can be established to the satisfaction of the hearing officer with information obtained by the Department; or

     (b) The person who is claiming the ownership interest can provide the information and documentation required by subsection 2 of NAC 360.610.

     4.  Except for a hearing held pursuant to subsection 3, notice of an administrative hearing conducted pursuant to this section must be served by mail at least 10 days before the date of the hearing to any person claiming an interest in the property, including, without limitation, the person who transmitted the property to the Department or from whom the property was seized.

     5.  Notice of a hearing served pursuant to subsection 4 must specify:

     (a) The purpose of the hearing; and

     (b) The date, time and location of the hearing.

     6.  Except as otherwise provided in subsections 4, 7 and 8, a hearing held pursuant to this section must be conducted in accordance with the procedures for a hearing on a petition for redetermination set forth in NAC 360.095 to 360.170, inclusive.

     7.  A person who files a claim pursuant to NAC 360.610 has the burden of proof at the hearing held pursuant to this section. The hearing officer shall determine the manner in which evidence will be received.

     8.  After a hearing held pursuant to this section, the hearing officer shall prepare written findings of fact, conclusions of law and his or her decision on the issues presented at the hearing. The hearing officer shall serve a copy of his or her findings of fact, conclusions of law and decision upon any person who claims an ownership interest in the property, including, without limitation, the person who transmitted the property to the Department or from whom the property was seized, within 20 days after the date of the hearing.

     9.  Within 30 days after service of the copy of the findings of fact, conclusions of law and decision of the hearing officer pursuant to subsection 8, any person to whom the findings of fact, conclusions of law and decision were served may file a notice of appeal with the Commission. An appeal of the decision of a hearing officer must be made in writing and a hearing on the appeal will be conducted in accordance with the applicable rules set forth in NAC 360.175, 360.176 and 360.185.

     (Added to NAC by Tax Comm’n by R046-01, eff. 11-1-2001)—(Substituted in revision for NAC 360.486)

DISTRIBUTION OF PROCEEDS OF CERTAIN TAXES TO LOCAL GOVERNMENT

      NAC 360.650  Determination of need for adjustment: Requirements for review; notification of local government or special district; annual report of findings. (NRS 360.090, 360.695)

     1.  To determine whether an adjustment to the amount allocated to a local government or special district from the Local Government Tax Distribution Account is necessary pursuant to NRS 360.695, the Director shall:

     (a) On or before March 31 of each year, review the population, as determined pursuant to NRS 360.285 or subsection 9 of NRS 360.690, and assessed valuation of the taxable property, as determined pursuant to NRS 361.390, of each local government and special district; and

     (b) Review all information that is available concerning the amount allocated to the local government or special district, including, without limitation:

          (1) Whether the local government or special district has been determined to be in severe financial emergency pursuant to NRS 354.685; and

          (2) A comparison of the total per capita revenue of the local government or special district and the total per capita revenue of each other local government or special district of similar size and type.

     2.  If, after conducting the review required pursuant to paragraph (a) of subsection 1, the Director determines that an adjustment to the allocation of the local government or special district may be necessary, the Director shall notify that local government or special district of his or her determination within 3 days after the Director makes the determination.

     3.  The Director shall report any findings he or she makes pursuant to this section to the Committee on Local Government Finance on or before December 1 of each year.

     (Added to NAC by Tax Comm’n by R042-00, eff. 3-2-2001)

AUDITS

Audits of Taxpayers

      NAC 360.700  Contact to schedule appointment; contents of auditor’s letter; period covered by audit; written request for extension of commencement date or estimated completion date; consequences of failure to provide necessary records. (NRS 360.090, 360.232, 360.2915)

     1.  As soon as practicable after selection of an account for audit, the auditor assigned to the audit shall attempt to contact the taxpayer by telephone to schedule an appointment that is convenient for the taxpayer and the auditor for the purpose of performing the audit. If the auditor is unable to contact the taxpayer by telephone, the auditor shall send a letter to the taxpayer requesting the taxpayer to contact the auditor to schedule an appointment for the purpose of performing the audit.

     2.  In scheduling an audit, the auditor and the taxpayer must discuss:

     (a) A date on which to commence the audit;

     (b) An estimate of the date by which the audit will be completed;

     (c) The first and last months of the audit period;

     (d) The nature of the business being audited and the availability of records;

     (e) The hours during which the records will be available for review by the auditor;

     (f) The contact person with whom the auditor is to work in conducting the audit and reviewing the results of the audit; and

     (g) The criteria set forth in subsection 4 for changing the period that the audit will cover and extending the commencement date or estimated completion date, or both, of the audit.

     3.  After contacting the taxpayer pursuant to subsection 1, the auditor shall send a letter to the taxpayer which includes:

     (a) The date, time and location of the first appointment for the audit;

     (b) The first and last months of the audit period;

     (c) The records that the taxpayer must make available for the audit;

     (d) The estimated completion date of the audit;

     (e) A copy of the Taxpayers’ Bill of Rights;

     (f) A copy of each statute that authorizes the Department to perform an audit and issue a deficiency determination, if necessary, and the process for appealing such a determination; and

     (g) The name and telephone number of the auditor and the supervisor of the auditor.

     4.  The criteria to be used by the Department in determining whether to change the period that the audit will cover and to extend the commencement date or estimated completion date, or both, of the audit include, without limitation:

     (a) The time required by the taxpayer to gather records necessary for the audit; and

     (b) Circumstances determined by the Department to be beyond the control of the taxpayer or the Department.

     5.  A taxpayer may request an extension of the commencement date or estimated completion date, or both, of the audit. Such a request must be submitted in writing to the auditor and must set forth the reason for the request. The auditor shall, on good cause shown, grant a reasonable extension and shall notify the taxpayer in writing of the revised commencement date or the revised estimated completion date, or both, of the audit. If an extension is granted, the statute of limitations for the finding of a deficiency will not be tolled during the period of the extension and a waiver of the statute of limitations must be obtained from the taxpayer or the audit period must be adjusted to account for the extension.

     6.  If a taxpayer fails to provide the records necessary to complete an audit by the estimated completion date or revised estimated completion date, the auditor may:

     (a) Determine an amount of delinquent taxes due from the records provided;

     (b) If the taxpayer has not provided any records, estimate an amount of delinquent taxes due based on information regarding the taxpayer that the Department has in its possession, including, without limitation, any returns filed by the taxpayer; or

     (c) Request the Department to issue a subpoena for the production of records by the taxpayer.

     (Added to NAC by Tax Comm’n by R045-01, eff. 11-1-2001)

      NAC 360.702  Taxpayer’s reliance on written advice; review of documentation by Director and recommendation to Commission regarding waiver of tax, interest or penalty. (NRS 360.090, 360.093, 360.294)

     1.  If a taxpayer provides written documentation during an audit that indicates that the taxpayer relied to his or her detriment on written advice provided by an officer, agent or employee of the Department, an opinion of the Attorney General or the Commission, or the written results of an audit of his or her records conducted by the Department, the auditor shall document the facts and circumstances relating to the issue for the audit file and shall continue the audit. Such documentation may include, without limitation:

     (a) An advisory opinion issued by the Department pursuant to NAC 360.190, 360.195 and 360.200 in response to the request of the taxpayer for advice on an issue, if the facts contained in the request are similar to the facts of the transactions under review in the current audit;

     (b) A letter issued by the Department to the taxpayer regarding the manner in which to account for the specific types of transactions under review in the current audit;

     (c) Written documentation which establishes that the taxpayer has been audited previously by the Department and that the results of that audit conflict with the results of the current audit;

     (d) An opinion or decision of the Attorney General or the Commission that addresses an issue or circumstances that are similar to the specific types of transactions under review in the current audit; and

     (e) A letter issued by the Department to the taxpayer that defines the items, scope and issues reviewed in a prior audit which are similar to the specific types of transactions under review in the current audit. The occurrence of a prior audit is not conclusive evidence that relieves the taxpayer of liability in the current audit.

     2.  The Director shall review the documents submitted by the taxpayer pursuant to subsection 1 and decide whether to recommend a waiver of the tax, interest or penalty, pursuant to NRS 360.294, to the Commission based on the information provided by the taxpayer pursuant to subsection 1.

     (Added to NAC by Tax Comm’n by R045-01, eff. 11-1-2001)

      NAC 360.704  Letter to taxpayer addressing audit issues upon completion of audit. (NRS 360.090)  Upon completion of the audit, the Department shall issue a letter to the taxpayer setting forth:

     1.  The issues reviewed in the audit;

     2.  The period of time under review for each section of the audit, including, without limitation, sample months, if applicable;

     3.  The results of the audit; and

     4.  If the taxpayer was using an incorrect method of collecting or accruing tax on a specific transaction reviewed in the audit, the proper method of collecting or accruing tax on the transaction.

     (Added to NAC by Tax Comm’n by R045-01, eff. 11-1-2001)

      NAC 360.706  Notice of deficiency determination; petition for redetermination; extension for filing petition; Department review; use of hearing officer; prehearing statement; extension for filing prehearing statement; notice of hearing; withdrawal of petition. (NRS 360.090, 360.350, 360.360, 360.365, 360.370)

     1.  If, after an audit, the Department determines that delinquent taxes are due, the Department shall issue to the taxpayer a notice of the deficiency determination. The notice must be issued on or before the estimated completion date or revised estimated completion date of the audit. The Department shall include with the notice a form prescribed by the Department for filing a petition for redetermination.

     2.  If the taxpayer wishes to dispute the findings of the audit, the taxpayer must petition the Department for a redetermination within 45 days after he or she is served with the notice of the deficiency determination. A petition for redetermination must be submitted:

     (a) On a form prescribed by the Department for filing a petition for redetermination; or

     (b) In the form of a letter which contains sufficient information to give notice to the Department that the taxpayer is disputing the deficiency determination. The letter must include, without limitation, the name of the taxpayer, the account number assigned to the taxpayer by the Department and the amount of the tax, interest or penalty in dispute.

     3.  The Director may grant an extension for the filing of a petition for redetermination if the request for an extension is made in writing to the Department and the Director finds that the petition for redetermination was not filed or was filed late despite the exercise of ordinary care by and without the intent of the taxpayer and that the cause of the failure to file or late filing of the petition was circumstances beyond the control of the taxpayer. Such circumstances include, without limitation, a natural disaster or other disaster beyond the control of the taxpayer and the death or hospitalization of the person responsible for filing the petition for redetermination.

     4.  A petition for redetermination will be sent to a hearing officer after:

     (a) The Department has reviewed any additional documentation that the taxpayer has submitted with his or her petition; and

     (b) The taxpayer and the Department have not agreed to a settlement based upon such documentation provided by the taxpayer.

     5.  The hearing officer may request that the parties file prehearing statements. The parties may file a joint prehearing statement. If the parties cannot agree on a joint prehearing statement, each party must file its statement by the date set by the hearing officer. The prehearing statement must be limited to a brief explanation of the issues from the audit for consideration by the hearing officer and must include, without limitation:

     (a) A statement of the unresolved issues that will be presented to the hearing officer, the nature of the specific transaction at issue, the amount in dispute and the legal issues involved in the matter.

     (b) A statement of the issues that have been resolved by the parties, including, without limitation, the uncontested facts.

     (c) A list of exhibits that each party expects to introduce at the hearing and any objections to those exhibits. The exhibits must be marked in advance of the hearing.

     (d) A list of the witnesses that each party expects to testify at the hearing.

     (e) An estimate of the time required for the hearing.

     (f) A statement regarding whether the party will submit a posthearing brief.

     6.  A prehearing statement must be filed by the date set by the hearing officer. The hearing officer may grant an extension for filing the prehearing statement if the motion or stipulation requesting the extension is filed with the hearing officer before the date set for filing the statement. The hearing officer shall issue a written decision on the motion or stipulation requesting the extension.

     7.  Failure of a party to file a prehearing statement will not delay the scheduling of the hearing. The hearing officer shall provide notice of the hearing to the parties at least 10 days before the date of the hearing.

     8.  If a party wishes to raise an issue that was not included in its prehearing statement before or during the hearing, the hearing officer shall grant a continuance to allow the opposing party to prepare a response to the issue.

     9.  The taxpayer may, at any time, withdraw his or her petition for redetermination by submitting a written request, in the form of a letter, to the Department.

     (Added to NAC by Tax Comm’n by R045-01, eff. 11-1-2001)

Performance Audits of Certain County Officers

      NAC 360.720  Definitions. (NRS 360.090, 360.250)  As used in NAC 360.720 to 360.736, inclusive, unless the context otherwise requires, the words and terms defined in NAC 360.722, 360.724 and 360.726 have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R039, eff. 8-13-2010)

      NAC 360.722  “Auditee” defined. (NRS 360.090, 360.250)  “Auditee” means the responsible county officer who is the subject of a performance audit.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.724  “Performance audit” defined. (NRS 360.090, 360.250)  “Performance audit” means a systematic and objective examination of evidence to provide an independent assessment of the performance of a responsible county officer in carrying out his or her responsibilities relating to the preparation of the assessment roll and the collection of property taxes.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.726  “Responsible county officer” defined. (NRS 360.090, 360.250)  “Responsible county officer” means any county assessor, auditor, comptroller, recorder or treasurer or other county officer having any responsibilities relating to the preparation of the assessment roll or the collection of property taxes.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.728  Periodic conduct of audits by Department; qualifications of employees conducting audits. (NRS 360.090, 360.250)

     1.  The Department shall periodically conduct performance audits of selected books, accounts and other records of responsible county officers in each county to determine any one or combination of the following:

     (a) Whether the appraisals of the county assessor comply with all applicable laws and regulations governing the assessment of property taxes.

     (b) Whether any county procedures relating to the preparation of the assessment roll or the collection of property taxes, including, without limitation, any procedures for the assessment of property, claiming or determining tax exemptions, billing for taxes, enforcing the payment of taxes, the redemption or sale of property, or the apportionment of tax proceeds, comply with all applicable laws and regulations governing such procedures.

     (c) The honesty and integrity of fiscal affairs, the accuracy and reliability of information and reports, and the effectiveness of the system of management controls of the auditee relating to the preparation of the assessment roll and the collection of property taxes.

     (d) Whether control by management and the system of information provide an adequate system of records and accounting relating to the preparation of the assessment roll and the collection of property taxes.

     2.  Each employee of the Department who conducts a performance audit to determine whether the appraisals of a county assessor comply with all applicable laws and regulations governing the assessment of property taxes must be knowledgeable about the principles and concepts of the appraisal of property.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.730  Duties of responsible county officers and their staff; maintenance of confidentiality by Department. (NRS 360.090, 360.250)

     1.  Every responsible county officer and member of the staff of a responsible county officer shall:

     (a) Aid and assist the Department at such times as the Department requires in the inspection, examination and audit of any books, accounts and other records in their possession relating to the preparation of the assessment roll or the collection of property taxes.

     (b) Upon the request of the Department, make available to the Department all their books, accounts, claims, reports and other records of information, whether confidential or otherwise and irrespective of their form or location, as may be necessary to conduct a performance audit.

     2.  The Department shall maintain the confidentiality of any information provided to the Department pursuant to this section under such terms and conditions as may be required by law.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.732  Preliminary report of Department; statement of explanation or rebuttal by auditee; presentation and dissemination of final written report. (NRS 360.090, 360.250)

     1.  The Department shall furnish a copy of the preliminary report of a performance audit to the auditee and discuss the report with the auditee. The auditee shall submit to the Department, within 10 days after the discussion, a written statement of explanation or rebuttal concerning any of the findings of the Department, and the Department shall include in the final report of the performance audit the auditee’s explanation of or rebuttal to any of the findings contained in the final report.

     2.  The Department shall present a final written report of each performance audit to the Commission and the Board, and provide copies to each member of the Commission, each member of the Board, other appropriate state officers, the pertinent board of county commissioners and the auditee.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.734  Plan for corrective action: Notification by Commission; submission by auditee; duties of Department. (NRS 360.090, 360.250)

     1.  The Commission shall notify an auditee of its acceptance of a final written report of a performance audit by the Department that concerns the auditee and contains any recommendations for corrective action. Within 60 working days after the receipt of such notification, the auditee shall submit a plan for corrective action to the Department.

     2.  The Department shall:

     (a) Notify the Commission, the Board and the pertinent board of county commissioners of any failure to submit a plan pursuant to subsection 1.

     (b) Provide a copy of each plan received pursuant to subsection 1 to the Commission, the Board and the pertinent board of county commissioners.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

      NAC 360.736  Report following submission of plan for corrective action: Duties of auditee and Department; review by Commission. (NRS 360.090, 360.250)

     1.  Each auditee who submits a plan pursuant to NAC 360.734 shall, within 6 months after the submission of the plan, submit to the Department a report specifying the extent to which the recommendations of the Department have been carried out, the extent to which the recommendations have not been carried out and the reasons for any failure to carry out the recommendations.

     2.  The Department shall:

     (a) Notify the Commission, the Board and the pertinent board of county commissioners of any failure to submit a report pursuant to subsection 1.

     (b) Provide a copy of each report received pursuant to subsection 1 to the Commission, the Board and the pertinent board of county commissioners.

     3.  The Commission may review the reports submitted pursuant to subsection 1 and conduct hearings to examine any justification for a failure to carry out the recommendations of the Department.

     (Added to NAC by Tax Comm’n by R039-10, eff. 8-13-2010)

STATE BUSINESS LICENSES

      NAC 360.750  Definitions. (NRS 360.090)  As used in NAC 360.750 to 360.772, inclusive, unless the context otherwise requires, the words and terms defined in NAC 360.752 to 360.758, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004; A by R193-05, 2-23-2006)

      NAC 360.752  “Average annual wage” defined. (NRS 360.090)  “Average annual wage” means the average annual wage for a calendar year as computed pursuant to chapter 612 of NRS and rounded to the nearest hundred dollars.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004)

      NAC 360.754  “Business” defined. (NRS 360.090)  “Business” has the meaning ascribed to it in NRS 360.765.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004)

      NAC 360.756  “Federal tax year” defined. (NRS 360.090)  “Federal tax year” means any period of 12 months for which a person is required to report income, tax deductions and tax credits pursuant to the provisions of the Internal Revenue Code and any regulations adopted pursuant thereto.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004)

      NAC 360.758  “State business license” defined. (NRS 360.090)  “State business license” means the business license required by NRS 360.780.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004)

      NAC 360.760  “Person who operates a business from his or her home” interpreted. (NRS 360.090, 360.765, 360.780)  For the purposes of NRS 360.760 to 360.798, inclusive, and NAC 360.750 to 360.772, inclusive, the Commission interprets the term “person who operates a business from his or her home” to mean a natural person who individually operates or a married couple who jointly operate a business from a personal residence if:

     1.  No part of the personal residence is held open to the general public for use in furtherance of that business; and

     2.  No real property is owned, leased, rented or licensed by the natural person or the married couple for use in furtherance of that business, other than the personal residence and any real property owned, leased, rented or licensed for the sole purpose of:

     (a) Maintaining a post office box;

     (b) Posting a business license in accordance with the requirements of a municipal or county ordinance; or

     (c) Periodically exhibiting or selling goods or services at a temporary fair, market, show or exhibition.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004; A by R161-04, 12-15-2004; R193-05, 2-23-2006)

      NAC 360.766  Home-based businesses: Applicability of exemption from licensing; requirement to obtain license. (NRS 360.090, 360.765, 360.780)

     1.  The exemption for a home-based business does not apply to a person who operates a business from his or her home during a federal tax year in which:

     (a) The person at any time failed to qualify as a person who operates a business from his or her home, as that term is interpreted pursuant to NAC 360.760; or

     (b) The person’s net earnings from that business were greater than 66 2/3 percent of the average annual wage for the most recent calendar year ending before the last day of that federal tax year.

     2.  Except as otherwise provided in NRS 360.782, a person described in subsection 1 shall obtain a state business license for that business not later than 180 days after the last day of a federal tax year in which the exemption for a home-based business does not apply to him or her.

     3.  As used in this section:

     (a) “Exemption for a home-based business” means the provisions of paragraph (c) of subsection 2 of NRS 360.765.

     (b) “Federal tax year” means a federal tax year ending on or after December 31, 2003.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004; A by R193-05, 2-23-2006)

      NAC 360.768  Home-based businesses: Liability for annual fee. (NRS 360.090, 360.765, 360.784)

     1.  If a person who operates a business from his or her home is required to obtain a state business license as a result of his or her net earnings from that business, the person’s liability for each annual fee required by NRS 360.784 depends upon the net earnings of the person from that business for the most recent federal tax year ending before the date on which that fee would otherwise become due. The person is not liable for that fee if he or she establishes to the reasonable satisfaction of the Department that those net earnings were less than 66 2/3 percent of the average annual wage for the most recent calendar year ending before the date on which that fee would otherwise become due.

     2.  For the purposes of this section, the Department will accept a copy of a federal income tax return filed with the Internal Revenue Service for a business which a person operates from his or her home as satisfactory evidence of the net earnings of the person from the business for the period covered by the return.

     (Added to NAC by Tax Comm’n by R174-03, eff. 2-18-2004; A by R193-05, 2-23-2006)

      NAC 360.772  Exemption of certain persons from requirement to obtain license for activity conducted in furtherance of business. (NRS 360.090, 360.765, 360.780)

     1.  If a person, other than a natural person, has a state business license for the conduct of a business by that person, no natural person is required to obtain a state business license for any activity conducted in furtherance of that business solely because any income, tax deductions or tax credits attributable to that activity may be reported to the Internal Revenue Service as income or loss from a partnership, S corporation, estate, trust or real estate mortgage investment conduit on a Schedule E (Form 1040), Supplemental Income and Loss Form, or its equivalent or successor form.

     2.  If a partnership or limited-liability company has a state business license for the conduct of a business by that person, no partner or member thereof is required to obtain a state business license for any activity conducted in furtherance of that business solely because any income, tax deductions or tax credits attributable to that activity may be reported to the Internal Revenue Service as income or loss from:

     (a) A sole proprietorship on a Schedule C (Form 1040), Profit or Loss From Business Form, or its equivalent or successor form; or

     (b) A farm on a Schedule F (Form 1040), Profit or Loss From Farming Form, or its equivalent or successor form.

     3.  For the purposes of this section:

     (a) “Limited-liability company” means a person organized pursuant to chapter 86 of NRS or the equivalent laws of another jurisdiction.

     (b) “Partnership” means any association of two or more persons described in NRS 87.060, regardless of whether that association reports to the Internal Revenue Service partnership income, tax deductions or tax credits on Form 1065, U.S. Return of Partnership Income, or its equivalent or successor form.

     (Added to NAC by Tax Comm’n by R193-05, eff. 2-23-2006)