[Rev. 6/29/2024 3:47:10 PM--2023]
CHAPTER 363D - TAX ON GROSS REVENUE OF GOLD AND SILVER MINING BUSINESSES
GENERAL PROVISIONS
NRS 363D.010 Definitions.
NRS 363D.015 “Business” defined.
NRS 363D.020 “Business entity” defined.
NRS 363D.025 “Commission” defined.
NRS 363D.030 “Credit sales” defined.
NRS 363D.035 “Engaging in a business” defined.
NRS 363D.040 “Gold” and “silver” defined.
NRS 363D.045 “Governmental entity” defined.
NRS 363D.050 “Gross revenue” defined.
NRS 363D.055 “Loan” defined.
NRS 363D.060 “Nevada gross revenue” defined.
NRS 363D.065 “Pass-through entity” defined.
NRS 363D.070 “Pass-through revenue” defined.
NRS 363D.075 “Sale of gold or silver” defined.
NRS 363D.080 “Securities” defined.
NRS 363D.085 “Taxable year” defined.
NRS 363D.090 “Taxpayer” defined.
NRS 363D.100 “Wages” defined.
NRS 363D.110 References to Internal Revenue Code.
NRS 363D.120 Businesses constituting passive entities.
ADMINISTRATION
NRS 363D.130 Duties of Department.
NRS 363D.140 Maintenance and availability of records of taxpayer; regulations; penalty.
NRS 363D.150 Examination of records by Department; payment of expenses of Department for examination of records outside this State.
IMPOSITION AND COLLECTION
NRS 363D.160 Imposition; payment of tax; filing of return; extension of time for payment; payment of interest during period of extension.
NRS 363D.170 Deductions from gross revenue.
NRS 363D.180 Situsing.
OVERPAYMENTS AND REFUNDS
NRS 363D.190 Certification of excess amount collected; credit and refund.
NRS 363D.200 Limitations on claims for refund or credit; form and contents of claim; failure to file claim constitutes waiver; service of notice of rejection of claim.
NRS 363D.210 Interest on overpayments; disallowance of interest.
NRS 363D.220 Injunction or other process to prevent collection of tax prohibited; filing of claim is condition precedent to maintaining action for refund.
NRS 363D.230 Action for refund: Period for commencement; venue; waiver.
NRS 363D.240 Rights of claimant upon failure of Department to mail notice of action on claim; allocation of judgment for claimant.
NRS 363D.250 Allowance of interest in judgment for amount illegally collected.
NRS 363D.260 Standing to recover.
NRS 363D.270 Action for recovery of erroneous refund: Jurisdiction; venue; prosecution.
NRS 363D.280 Cancellation of illegal determination.
MISCELLANEOUS PROVISIONS
NRS 363D.290 Remittance of tax; deposit for credit to State Education Fund.
NRS 363D.300 Prohibited acts; penalty.
NRS 363D.310 Remedies of State are cumulative.
_________
GENERAL PROVISIONS
NRS 363D.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 363D.015 to 363D.100, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2021, 1269)
NRS 363D.015 “Business” defined. “Business” means any activity engaged in or caused to be engaged in with the object of gain, benefit or advantage, either direct or indirect, to any person or governmental entity.
(Added to NRS by 2021, 1269)
NRS 363D.020 “Business entity” defined.
1. Except as otherwise provided in subsection 2, “business entity” means a corporation, partnership, proprietorship, limited-liability company, business association, joint venture, limited-liability partnership, business trust, professional association, joint stock company, holding company and any other person engaged in the business of extracting gold or silver, or both, in this State.
2. The term does not include:
(a) Any person or other entity which this State is prohibited from taxing pursuant to the Constitution or laws of the United States or the Nevada Constitution.
(b) A natural person, unless that person is engaging in a business and is required to file with the Internal Revenue Service a Schedule C (Form 1040), Profit or Loss From Business, or its equivalent or successor form, a Schedule E (Form 1040), Supplemental Income and Loss, or its equivalent or successor form, or a Schedule F (Form 1040), Profit or Loss From Farming, or its equivalent or successor form, for that business.
(c) A governmental entity.
(d) A nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c).
(e) A business entity organized pursuant to chapter 82 or 84 of NRS.
(f) A credit union organized under the provisions of chapter 672 of NRS or the Federal Credit Union Act.
(g) A grantor trust as defined by sections 671 and 7701(a)(30)(E) of the Internal Revenue Code, 26 U.S.C. §§ 671 and 7701(a)(30)(E), all of the grantors and beneficiaries of which are natural persons or charitable entities as described in section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), excluding a trust taxable as a business entity pursuant to 26 C.F.R. § 301.7701-4(b).
(h) An estate of a natural person as defined by section 7701(a)(30)(D) of the Internal Revenue Code, 26 U.S.C. § 7701(a)(30)(D), excluding an estate taxable as a business entity pursuant to 26 C.F.R. § 301.7701-4(b).
(i) A real estate investment trust, as defined by section 856 of the Internal Revenue Code, 26 U.S.C. § 856, and its qualified real estate investment trust subsidiaries, as defined by section 856(i)(2) of the Internal Revenue Code, 26 U.S.C. § 856(i)(2), except that:
(1) A real estate investment trust with any amount of its assets in direct holdings of real estate, other than real estate it occupies for business purposes, as opposed to holding interests in limited partnerships or other entities that directly hold the real estate, is a business entity pursuant to this section; and
(2) A limited partnership or other entity that directly holds the real estate as described in subparagraph (1) is a business entity pursuant to this section, without regard to whether a real estate investment trust holds an interest in it.
(j) A real estate mortgage investment conduit, as defined by section 860D of the Internal Revenue Code, 26 U.S.C. § 860D.
(k) A trust qualified under section 401(a) of the Internal Revenue Code, 26 U.S.C. § 401(a).
(l) A passive entity.
(m) A person whose activities within this State are confined to the owning, maintenance and management of the person’s intangible investments or of the intangible investments of persons or statutory trusts or business trusts registered as investment companies under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended, and the collection and distribution of the income from such investments or from tangible property physically located outside this State. For the purposes of this paragraph, “intangible investments” includes, without limitation, investments in stocks, bonds, notes and other debt obligations, including, without limitation, debt obligations of affiliated corporations, real estate investment trusts, patents, patent applications, trademarks, trade names and similar types of intangible assets or an entity that is registered as an investment company under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq.
(n) A person who takes part in an exhibition held in this State for a purpose related to the conduct of a business and is not required to obtain a state business license specifically for that event pursuant to NRS 360.780.
(Added to NRS by 2021, 1269)
NRS 363D.025 “Commission” defined. “Commission” means the Nevada Tax Commission.
(Added to NRS by 2021, 1270)
NRS 363D.030 “Credit sales” defined. “Credit sales” means a sale of goods by a seller who accepts payments for the goods at a later time.
(Added to NRS by 2021, 1270)
NRS 363D.035 “Engaging in a business” defined. “Engaging in a business” means commencing, conducting or continuing a business, the exercise of corporate or franchise powers regarding a business, and the liquidation of a business which is or was engaging in a business when the liquidator holds itself out to the public as conducting that business.
(Added to NRS by 2021, 1270)
NRS 363D.040 “Gold” and “silver” defined. “Gold” and “silver” include, respectively, without limitation:
1. Gold-bearing and silver-bearing ores, quartz or minerals from which gold and silver are extracted;
2. Gold and silver bullion; and
3. The products or derivatives of gold and silver.
(Added to NRS by 2021, 1270)
NRS 363D.045 “Governmental entity” defined. “Governmental entity” means:
1. The United States and any of its unincorporated agencies and instrumentalities.
2. Any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.
3. The State of Nevada and any of its unincorporated agencies and instrumentalities.
4. Any county, city, district or other political subdivision of this State.
(Added to NRS by 2021, 1270)
NRS 363D.050 “Gross revenue” defined.
1. Except as otherwise provided in subsection 3, “gross revenue” means the total amount realized by a business entity from engaging in a business in this State, without deduction for the cost of goods sold or other expenses incurred, that contributes to the production of gross income, including, without limitation, the fair market value of any property and any services received, and any debt transferred or forgiven as consideration.
2. Except as otherwise provided in subsection 3, the term includes, without limitation:
(a) Amounts realized from the sale, exchange or other disposition of a business entity’s property;
(b) Amounts realized from the performance of services by a business entity;
(c) Amounts realized from another person’s possession of the property or capital of a business entity; and
(d) Any combination of these amounts.
3. The term does not include:
(a) Amounts realized from the sale, exchange, disposition or other grant of the right to use trademarks, trade names, patents, copyrights and similar intellectual property;
(b) The value of cash discounts allowed by the business entity and taken by a customer;
(c) The value of goods or services provided to a customer on a complimentary basis;
(d) Amounts realized from a transaction subject to, described in, or equivalent to, section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031 or 1033 of the Internal Revenue Code, 26 U.S.C. § 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031 or 1033, regardless of the federal tax classification of the business entity under 26 C.F.R. § 301.7701-3;
(e) Amounts indirectly realized from a reduction of an expense or deduction;
(f) The value of property or services donated to a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), if the donation is tax deductible pursuant to the provisions of section 170(c) of the Internal Revenue Code, 26 U.S.C. § 170(c); and
(g) Amounts that are not considered revenue under generally accepted accounting principles.
(Added to NRS by 2021, 1271)
NRS 363D.055 “Loan” defined. “Loan” means any extension of credit or the purchase in whole or in part of an extension of credit from another person, including, without limitation, participations and syndications.
(Added to NRS by 2021, 1271)
NRS 363D.060 “Nevada gross revenue” defined. “Nevada gross revenue” means the gross revenue of a business entity from engaging in a business in this State, as adjusted pursuant to NRS 363D.170 and sitused to this State pursuant to NRS 363D.180.
(Added to NRS by 2021, 1271)
NRS 363D.065 “Pass-through entity” defined. “Pass-through entity” means an entity that is disregarded as an entity for the purposes of federal income taxation or is treated as a partnership for the purposes of federal income taxation.
(Added to NRS by 2021, 1271)
NRS 363D.070 “Pass-through revenue” defined.
1. “Pass-through revenue” means:
(a) Revenue received by a business entity that is required by law or fiduciary duty to be distributed to another person or governmental entity;
(b) Taxes collected from a third party by a business entity and remitted by the business entity to a taxing authority;
(c) Reimbursement for advances made by a business entity on behalf of a customer or client, other than with respect to services rendered or with respect to purchases of goods by the business entity in carrying out the business in which it engages;
(d) Revenue received by a business entity that is mandated by contract or subcontract to be distributed to another person or entity if the revenue constitutes:
(1) Sales commissions that are paid to a person who is not an employee of the business entity, including, without limitation, a split-fee real estate commission;
(2) The tax basis of securities underwritten by the business entity, as determined for the purposes of federal income taxation; or
(3) Subcontracting payments under a contract or subcontract entered into by a business entity to provide services, labor or materials in connection with the actual or proposed design, construction, remodeling, remediation or repair of improvements on real property or the location of the boundaries of real property; or
(e) Revenue received by a business entity that is part of an affiliated group from another member of the affiliated group.
2. As used in this section:
(a) “Affiliated group” means a group of two or more business entities, including, without limitation, an entity described in subsection 2 of NRS 363D.020, each of which is controlled by one or more common owners or by one or more members of the group.
(b) “Controlled by” means the direct or indirect ownership, control or possession of 50 percent or more of a business entity.
(c) “Sales commission” means:
(1) Any form of compensation paid to a person for engaging in an act for which a license is required pursuant to chapter 645 of NRS; or
(2) Compensation paid to a sales representative by a principal in an amount that is based on the amount or level of orders for or sales on behalf of the principal and that the principal is required to report on Internal Revenue Service Form 1099-MISC, Miscellaneous Income.
(Added to NRS by 2021, 1271)
NRS 363D.075 “Sale of gold or silver” defined. “Sale of gold or silver” means a sale or transfer of gold or silver in exchange for consideration by the business entity that extracted the gold, silver or gold-bearing or silver-bearing ore, quartz or mineral from which gold or silver is extracted.
(Added to NRS by 2021, 1272)
NRS 363D.080 “Securities” defined. “Securities” means United States Treasury securities, obligations of United States governmental agencies and corporations, obligations of a state or political subdivision, corporate stock, bonds, participations in securities backed by mortgages held by the United States or state governmental agencies, loan-backed securities, money market instruments, federal funds, securities purchased and sold under agreements to resell or repurchase, commercial paper, banker’s acceptances, purchased certificates of deposit, options, futures contracts, forward contracts, notional principal contracts, including, without limitation, swaps, and other similar securities and instruments.
(Added to NRS by 2021, 1272)
NRS 363D.085 “Taxable year” defined. “Taxable year” means the 12-month period beginning on January 1 and ending on December 31 of a calendar year.
(Added to NRS by 2021, 1272)
NRS 363D.090 “Taxpayer” defined. “Taxpayer” means any person liable for the tax imposed by this chapter.
(Added to NRS by 2021, 1273)
NRS 363D.100 “Wages” defined. “Wages” means any remuneration paid for personal services, including, without limitation, commissions and bonuses, and remuneration payable in any medium other than cash.
(Added to NRS by 2021, 1273)
NRS 363D.110 References to Internal Revenue Code. For the purposes of this chapter, unless otherwise indicated, section references are to the Internal Revenue Code of 1986, as amended, and include future amendments to such sections and corresponding provisions of future federal internal revenue laws.
(Added to NRS by 2021, 1273)
NRS 363D.120 Businesses constituting passive entities.
1. For the purposes of this chapter, a business is a “passive entity” only if:
(a) The business is a limited-liability company, general partnership, limited-liability partnership, limited partnership or limited-liability limited partnership, or a trust, other than a business trust;
(b) During the period for which the gross revenue of the business entity is reported pursuant to NRS 363D.160, at least 90 percent of the business entity’s federal gross income consists of the following income:
(1) Dividends, interest, foreign currency exchange gains, periodic and nonperiodic payments with respect to notional principal contracts, option premiums, cash settlements or termination payments with respect to a financial instrument, and income from a limited-liability company;
(2) Capital gains from the sale of real property, gains from the sale of commodities traded on a commodities exchange and gains from the sale of securities; and
(3) Royalties, bonuses or delay rental income from mineral properties and income from other nonoperating mineral interests; and
(c) The business entity does not receive more than 10 percent of its federal gross income from conducting an active trade or business.
2. As used in paragraph (b) of subsection 1, the term “income” does not include any:
(a) Rent; or
(b) Income received by a nonoperator from mineral properties under a joint operating agreement if the nonoperator is a member of an affiliated group and another member of that group is the operator under that joint operating agreement.
3. For the purposes of paragraph (c) of subsection 1:
(a) Except as otherwise provided in this subsection, a business entity is “conducting an active trade or business” if:
(1) The activities being carried on by the business entity include one or more active operations that form a part of the process of earning income or profit, and the business entity performs active management and operating functions; or
(2) Any assets, including, without limitation, royalties, patents, trademarks and other intangible assets, held by the business entity are used in the active trade or business of one or more related business entities.
(b) The ownership of a royalty interest or a nonoperating working interest in mineral rights does not constitute the conduct of an active trade or business.
(c) The payment of compensation to employees or independent contractors for financial or legal services reasonably necessary for the operation of a business does not constitute the conduct of an active trade or business.
(d) Holding a seat on the board of directors of a business entity does not by itself constitute the conduct of an active trade or business.
(e) Activities performed by a business entity include activities performed by persons outside the business entity, including independent contractors, to the extent that those persons perform services on behalf of the business entity and those services constitute all or any part of the business entity’s trade or business.
(Added to NRS by 2021, 1273)
ADMINISTRATION
NRS 363D.130 Duties of Department. The Department shall administer and enforce the provisions of this chapter and may adopt such regulations as it deems appropriate for those purposes.
(Added to NRS by 2021, 1274)
NRS 363D.140 Maintenance and availability of records of taxpayer; regulations; penalty.
1. Each person responsible for maintaining the records of a taxpayer shall:
(a) Keep such records as may be necessary to determine the amount of the liability of the taxpayer pursuant to the provisions of this chapter;
(b) Preserve those records for 4 years or until any litigation or prosecution pursuant to this chapter is finally determined, whichever is longer; and
(c) Make the records available for inspection by the Department upon demand at reasonable times during regular business hours.
2. The Department may by regulation specify the types of records which must be kept to determine the amount of the liability of a taxpayer pursuant to the provisions of this chapter.
3. Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.
(Added to NRS by 2021, 1274)
NRS 363D.150 Examination of records by Department; payment of expenses of Department for examination of records outside this State.
1. To verify the accuracy of any return filed or, if no return is filed by a taxpayer, to determine the amount of the tax required to be paid pursuant to this chapter, the Department, or any person authorized in writing by the Department, may examine the books, papers and records of any person who may be liable for the tax imposed by this chapter.
2. Any person who may be liable for the tax imposed by this chapter and who keeps outside of this State any books, papers and records relating thereto shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the State for each day or fraction thereof during which an employee of the Department is engaged in examining those documents, plus any other actual expenses incurred by the employee while he or she is absent from his or her regular place of employment to examine those documents.
(Added to NRS by 2021, 1274)
IMPOSITION AND COLLECTION
NRS 363D.160 Imposition; payment of tax; filing of return; extension of time for payment; payment of interest during period of extension.
1. For the privilege of engaging in a business in this State, an excise tax is hereby imposed upon the Nevada gross revenue of each business entity whose Nevada gross revenue in a taxable year exceeds $20,000,000, which shall be at the following rates:
(a) For all Nevada gross revenue in a taxable year in excess of $20,000,000 but not more than $150,000,000, a rate of 0.75 percent.
(b) For all Nevada gross revenue in excess of $150,000,000, a rate of 1.10 percent.
2. Each business entity whose Nevada gross revenue in a taxable year exceeds $20,000,000 shall, on or before April 1 immediately following the end of that taxable year, file with the Department a return on a form prescribed by the Department. The Department shall not require a business entity whose Nevada gross revenue for a taxable year is $20,000,000 or less to file a return for that taxable year. The return required by this subsection must include such information as is required by the Department.
3. A business entity shall remit with the return the amount of tax due pursuant to subsection 1. Upon written application made before the date on which payment must be made, the Department may for good cause extend by not more than 30 days the time within which a taxpayer is required to pay the tax imposed by this chapter. If the tax is paid during the period of extension, no penalty or late charge may be imposed for failure to pay at the time required, but the taxpayer shall pay interest at the rate of 1 percent per month from the date on which the amount would have been due without the extension until the date of payment, unless otherwise provided in NRS 360.232 or 360.320.
(Added to NRS by 2021, 1274)
NRS 363D.170 Deductions from gross revenue. In computing the tax owed by a business entity pursuant to this chapter, the business entity is entitled to deduct from its gross revenue the following amounts, to the extent such amounts are included in the gross revenue of the business entity:
1. Any gross revenue which this State is prohibited from taxing pursuant to the Constitution or laws of the United States or the Nevada Constitution.
2. Any gross revenue of the business entity attributable to dividends and interest upon any bonds or securities of the Federal Government, the State of Nevada or a political subdivision of this State.
3. Any gross revenue realized from the sale or transfer of a mineral other than gold or silver.
4. The amount of any pass-through revenue of the business entity.
5. The tax basis of securities and loans sold by the business entity, as determined for the purposes of federal income taxation.
6. The amount of revenue received by the business entity that is directly derived from the operation of a facility that is:
(a) Located on property owned or leased by the Federal Government; and
(b) Managed or operated primarily to house members of the Armed Forces of the United States.
7. Interest income other than interest on credit sales.
8. Dividends and distributions from corporations, and distributive or proportionate shares of receipts and income from a pass-through entity.
9. Receipts from the sale, exchange or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code, 26 U.S.C. § 1221 or 1231, without regard to the length of time the business entity held the asset.
10. Receipts from a hedging transaction, as defined in section 1221 of the Internal Revenue Code, 26 U.S.C. § 1221, or a transaction accorded hedge accounting treatment under Statement No. 133 of the Financial Accounting Standards Board, Accounting for Derivative Instruments and Hedging Activities, to the extent the transaction is entered into primarily to protect a financial position, including, without limitation, managing the risk of exposure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity or investments in foreign operations, to interest rate fluctuations or to commodity price fluctuations. For the purposes of this subsection, receipts from the actual transfer of title of real or tangible personal property to another business entity are not receipts from a hedging transaction or a transaction accorded hedge accounting treatment.
11. Proceeds received by a business entity that are attributable to the repayment, maturity or redemption of the principal of a loan, bond, mutual fund, certificate of deposit or marketable instrument.
12. The principal amount received under a repurchase agreement or on account of any transaction properly characterized as a loan.
13. Proceeds received from the issuance of the business entity’s own stock, options, warrants, puts or calls, from the sale of the business entity’s treasury stock or as contributions to the capital of the business entity.
14. Proceeds received on account of payments from insurance policies, except those proceeds received for the loss of business revenue.
15. Damages received as a result of litigation in excess of amounts that, if received without litigation, would not have been included in the gross receipts of the business entity pursuant to this section.
16. Bad debts expensed for the purposes of federal income taxation.
17. Returns and refunds to customers.
18. Amounts realized from the sale of an account receivable to the extent the receipts from the underlying transaction were included in the gross receipts of the business entity.
19. If the business entity owns an interest in a passive entity, the business entity’s share of the net income of the passive entity, but only to the extent the net income of the passive entity was generated by the gross revenue of another business entity.
(Added to NRS by 2021, 1275)
1. In computing the tax owed by a business entity pursuant to this chapter, the gross revenue of the business entity, as adjusted pursuant to NRS 363D.170, must be sitused to this State in accordance with the following rules:
(a) Gross rents and royalties from real property are sitused to this State if the real property is located in this State.
(b) Gross revenue from the sale of real property is sitused to this State if the real property is located in this State.
(c) Gross rents and royalties from tangible personal property are sitused to this State to the extent that the tangible personal property is located or used in this State.
(d) Gross revenue from the sale of gold or silver is sitused to this State if the gold or silver is extracted in this State.
(e) Gross revenue from the sale of tangible personal property is sitused to this State if the property is delivered or shipped to a buyer in this State, regardless of the F.O.B. point or any other condition of sale.
(f) Gross revenue from the sale of transportation services is sitused to this State if both the origin and the destination point of the transportation are located in this State.
(g) Gross revenue from the sale of any services not otherwise described in this section is sitused to this State in the proportion that the purchaser’s benefit in this State, with respect to what was purchased, bears to the purchaser’s benefit everywhere with respect to what was purchased. For the purposes of this paragraph, the physical location at which the purchaser of a service ultimately uses or receives the benefit of the service that was purchased is paramount in determining the proportion of the benefit in this State to the benefit everywhere. If the records of a business entity do not allow the taxpayer to determine that location, the business entity may use an alternative method to situs gross revenue pursuant to this section if the alternative method is reasonable, is consistently and uniformly applied and is supported by the taxpayer’s records as those records exist when the service is provided or within a reasonable period of time thereafter.
(h) Gross revenue not otherwise described in this section is sitused to this State if the gross receipts are from business conducted in this State. For the purposes of this paragraph, the physical location of the purchaser is paramount in determining if business is done in this State. If the records of a business entity do not allow the business entity to determine the location of the purchaser, the gross revenue must not be considered to be from business conducted in this State.
2. If the application of the provisions of subsection 1 does not fairly represent the extent of the business conducted in this State by a business entity, the Department may authorize the business entity to use an alternative method of situsing gross revenue to this State.
(Added to NRS by 2021, 1276)
OVERPAYMENTS AND REFUNDS
NRS 363D.190 Certification of excess amount collected; credit and refund. If the Department determines that any tax, penalty or interest 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 person from whom it was collected or by whom it was paid. If approved by the State Board of Examiners, the excess amount collected or paid must, after being credited against any amount then due from the person in accordance with NRS 360.236, be refunded to the person or his or her successors in interest.
(Added to NRS by 2021, 1277)
NRS 363D.200 Limitations on claims for refund or credit; form and contents of claim; failure to file claim constitutes waiver; service of notice of rejection of claim.
1. Except as otherwise provided in NRS 360.235 and 360.395:
(a) No refund may be allowed unless a claim for it is filed with the Department within 3 years after the last day of the month following the calendar quarter for which the overpayment was made.
(b) No credit may be allowed 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 must be in writing and must state the specific grounds upon which the claim is founded.
3. Failure to file a claim within the time prescribed in this chapter 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.
(Added to NRS by 2021, 1277)
NRS 363D.210 Interest on overpayments; disallowance of interest.
1. Except as otherwise provided in this section, NRS 360.320 or any other specific statute, interest must be paid upon any overpayment of any amount of the tax imposed by this chapter at the rate set forth in, and in accordance with the provisions of, NRS 360.2937.
2. If the Department determines that any overpayment has been made intentionally or by reason of carelessness, the Department shall not allow any interest on the overpayment.
(Added to NRS by 2021, 1277)
NRS 363D.220 Injunction or other process to prevent collection of tax prohibited; filing of claim is condition precedent to maintaining action for refund.
1. No injunction, writ of mandate or other legal or equitable process may issue in any suit, action or proceeding in any court against this State or against any officer of the State to prevent or enjoin the collection under this chapter of the tax imposed by this chapter or any amount of tax, penalty or interest required to be collected.
2. No suit or proceeding may be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been filed.
(Added to NRS by 2021, 1277)
NRS 363D.230 Action for refund: Period for commencement; venue; waiver.
1. Within 90 days after a final decision upon a claim filed pursuant to this chapter is rendered by the Commission, the claimant may bring an action against the Department on the grounds set forth in the claim in a court of competent jurisdiction in Carson City, the county of this State where the claimant resides or maintains his or her principal place of business or a county in which any relevant proceedings were conducted by the Department, for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.
2. Failure to bring an action within the time specified constitutes a waiver of any demand against the State on account of alleged overpayments.
(Added to NRS by 2021, 1278)
NRS 363D.240 Rights of claimant upon failure of Department to mail notice of action on claim; allocation of judgment for claimant.
1. If the Department fails to mail notice of action on a claim within 6 months after the claim is filed, the claimant may consider the claim disallowed and file an appeal with the 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.
2. If judgment is rendered for the plaintiff, the amount of the judgment must first be credited towards any tax due from the plaintiff.
3. The balance of the judgment must be refunded to the plaintiff.
(Added to NRS by 2021, 1278)
NRS 363D.250 Allowance of interest in judgment for amount illegally collected. In any judgment, interest must be allowed at the rate of 3 percent per annum upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment, or to a date preceding the date of the refund warrant by not more than 30 days. The date must be determined by the Department.
(Added to NRS by 2021, 1278)
NRS 363D.260 Standing to recover. A judgment may not be rendered in favor of the plaintiff in any action brought against the Department to recover any amount paid when the action is brought by or in the name of an assignee of the person paying the amount or by any person other than the person who paid the amount.
(Added to NRS by 2021, 1278)
NRS 363D.270 Action for recovery of erroneous refund: Jurisdiction; venue; prosecution.
1. The Department may recover a refund or any part thereof which is erroneously made and any credit or part thereof which is erroneously allowed in an action brought in a court of competent jurisdiction in Carson City or Clark County in the name of the State of Nevada.
2. The action must be tried in Carson City or Clark County unless the court, with the consent of the Attorney General, orders a change of place of trial.
3. The Attorney General shall prosecute the action, and the provisions of NRS, the Nevada Rules of Civil Procedure and the Nevada Rules of Appellate Procedure relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceedings.
(Added to NRS by 2021, 1278)
NRS 363D.280 Cancellation of illegal determination.
1. If any amount in excess of $25 has been illegally determined, either by the Department or by the person filing the return, the Department shall certify that fact to the State Board of Examiners, and the latter shall authorize the cancellation of the amount upon the records of the Department.
2. If an amount not exceeding $25 has been illegally determined, either by the Department or by the person filing the return, the Department, without certifying that fact to the State Board of Examiners, shall authorize the cancellation of the amount upon the records of the Department.
(Added to NRS by 2021, 1278)
MISCELLANEOUS PROVISIONS
NRS 363D.290 Remittance of tax; deposit for credit to State Education Fund.
1. All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the State under this chapter must be paid to the Department in the form of remittances payable to the Department.
2. The Department shall deposit the payments in the State Treasury for credit to the State Education Fund.
(Added to NRS by 2021, 1279; A 2021, 1295)
NRS 363D.300 Prohibited acts; penalty.
1. A person shall not:
(a) Make, cause to be made or permit to be made any false or fraudulent return or declaration or false statement in any return or declaration with intent to defraud the State or to evade payment of the tax or any part of the tax imposed by this chapter.
(b) Make, cause to be made or permit to be made any false entry in books, records or accounts with intent to defraud the State or to evade the payment of the tax or any part of the tax imposed by this chapter.
(c) Keep, cause to be kept or permit to be kept more than one set of books, records or accounts with intent to defraud the State or to evade the payment of the tax or any part of the tax imposed by this chapter.
2. Any person who violates the provisions of subsection 1 is guilty of a gross misdemeanor.
(Added to NRS by 2021, 1279)
NRS 363D.310 Remedies of State are cumulative. The remedies of the State provided for in this chapter are cumulative, and no action taken by the Department or the Attorney General constitutes an election by the State to pursue any remedy to the exclusion of any other remedy for which provision is made in this chapter.
(Added to NRS by 2021, 1279)