SUMMARY--Transfers responsibility for collection of certain fees and taxes from department of motor vehicles and public safety to department of taxation. (BDR 32-301)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to taxation; transferring the responsibility for the collection of the taxes imposed on the sale or use of special fuel and the fees imposed on leases of passenger cars by short-term lessors from the department of motor vehicles and public safety to the department of taxation; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 360.001 is hereby amended to read as follows:
360.001 As used in this Title, except as otherwise provided in chapters 364 [, 366] and 371 of NRS and unless the context requires otherwise:
1. "Department" means the department of taxation.
2. "Executive director" means the executive director of the department . [of taxation.]
Sec. 2 NRS 360.300 is hereby amended to read as follows:
360.300 1. If a person fails to file a return or the department is not satisfied with the return or returns of any tax, contribution or premium or amount of tax, contribution or premium required to be paid to the state by any person, in accordance with the applicable provisions of NRS 482.313, this chapter or chapter 362, 364A, 365, 366, 369, 370, 372, 372A, 373, 374, 377, 377A, 444A, 585, 590 or 680B of NRS as administered or audited by the department, it may compute and determine the amount required to be paid upon the basis of:
(a) The facts contained in the return;
(b) Any information within its possession or that may come into its possession; or
(c) Reasonable estimates of the amount.
2. One or more deficiency determinations may be made of the amount due for one or for more than one period.
3. When a business is discontinued, a determination may be made at any time thereafter within the time prescribed in NRS 360.355 as to liability arising out of that business, irrespective of whether the determination is issued before the due date of the liability.
Sec. 3 NRS 360.410 is hereby amended to read as follows:
360.4101. If the department finds that a person's failure to make a timely return or payment of a tax imposed [by] pursuant to NRS 482.313 or this Title, except for chapters 364 [, 366] and 371, is due to circumstances beyond his control and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, the department may relieve [such] that person of all or part of any penalty imposed.
2. Any person seeking relief from such a penalty shall file with the department a statement under oath setting forth the facts upon which he bases his claim for relief.
Sec. 4 NRS 360.412 is hereby amended to read as follows:
360.412If the department believes that the collection of any amount of sales or use tax, business tax [,] or other excise due [under] pursuant to this Title [or] , NRS 482.313 or chapter 585 of NRS will be jeopardized by delay, it shall make a determination of the amount required to be collected and serve notice of the determination upon the person against whom it is made.
Sec. 5 NRS 360.417 is hereby amended to read as follows:
360.417Unless a different penalty or rate of interest is specifically provided, any person who fails to pay any tax provided for in chapter 362, 364A, 365, 366, 369, 370, 372, 373 or 374 of NRS, or fee provided for in NRS 482.313 or 590.700 to 590.920, inclusive, to the state or a county within the time required, shall pay a penalty of not more than 10 percent of the amount of the tax or fee which is owed, as determined by the department, in addition to the tax or fee, plus interest at the rate of 1.5 percent per month, or fraction of a month, from the last day of the month following the period for which the amount or any portion of the amount should have been reported until the date of payment.
Sec. 6 NRS 360.419 is hereby amended to read as follows:
360.4191. The department may, for good cause shown, waive or reduce the payment of the interest or penalty, or both, on any tax which is owed to the state or to a county by any person. The department shall, upon the request of any person, disclose the:
(a) Name of the person whose interest or penalty was waived or reduced; and
(b) Amount so waived or the amount of the reduction.
2. This section applies to all taxes imposed [under] pursuant to this Title except for those imposed pursuant to chapter 364, [366,] 371 or 375 of NRS.
Sec. 7 NRS 360.510 is hereby amended to read as follows:
360.5101. If any person is delinquent in the payment of any tax or fee administered by the department or if a determination has been made against him which remains unpaid, the department may:
(a) Not later than 3 years after the payment became delinquent or the determination became final; or
(b) Not later than 5 years after the last recording of an abstract of judgment or of a certificate constituting a lien for tax owed,
give a notice of the delinquency and a demand to transmit personally or by registered or certified mail to any person, including, without limitation, any officer or department of the state or any political subdivision or agency of the state, who has in his possession or under his control any credits or other personal property belonging to the delinquent, or owing any debts to the delinquent or person against whom a determination has been made which remains unpaid, or owing any debts to the delinquent or that person. In the case of any state officer, department or agency, the notice must be given to the officer, department or agency before it presents the claim of the delinquent taxpayer to the state controller.
2. A state officer, department or agency which receives such a notice may satisfy any debt owed to it by that person before it honors the department's notice.
3. After receiving the demand to transmit, the persons so notified may not transfer or otherwise dispose of the credits, other personal property, or debts in their possession or under their control at the time they received the notice until the department consents to a transfer or other disposition.
4. All persons so notified shall, within 10 days after receipt of the demand to transmit, inform the department of, and transmit to the department all such credits, other personal property, or debts in their possession, under their control or owing by them within the time and in the manner requested by the department. Except as otherwise provided in subsection 5, no further notice is required to be served to [such] those persons.
5. If the property of the delinquent taxpayer consists of a series of payments owed to him, the person who owes or controls the payments shall transmit the payments to the department until otherwise notified by the department. If the debt of the delinquent taxpayer is not paid within 1 year after the department issued the original demand to transmit, it shall issue another demand to transmit to the person responsible for making the payments informing him to continue to transmit payments to the department or that his duty to transmit the payments to the department has ceased.
6. If the notice of the delinquency seeks to prevent the transfer or other disposition of a deposit in a bank or other credits or personal property in the possession or under the control of a bank or other depository institution, the notice must be delivered or mailed to the branch or office of the bank or other depository institution at which the deposit is carried or at which the credits or personal property is held.
7. If any person so notified makes any transfer or other disposition of the property or debts required to be withheld or transmitted, to the extent of the value of the property or the amount of the debts thus transferred or paid, he is liable to the state for any indebtedness due [under] pursuant to NRS 482.313, this chapter or chapter 362, 364A, 365, 366, 369, 370, 372, 372A, 373, 374, 377, 377A, 444A, 585, 590 or 680B of NRS from the person with respect to whose obligation the notice was given if solely by reason of the transfer or other disposition the state is unable to recover the indebtedness of the person with respect to whose obligation the notice was given.
Sec. 8 NRS 360.530 is hereby amended to read as follows:
360.5301. At any time within 3 years after any person has become delinquent in the payment of any amount of sales or use tax or other excise due [under] pursuant to this Title , NRS 482.313 or chapter 585 of NRS, the department may seize any property, real or personal, of the person and sell the property, or a sufficient part of it, at public auction to pay the amount due, together with any interest or penalties imposed for the delinquency and any costs incurred on account of the seizure and sale.
2. Any seizure made to collect a tax due may be only of the property of the person not exempt from execution under the provisions of law.
Sec. 9 NRS 366.020 is hereby amended to read as follows:
366.020As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS [366.025] 366.030 to 366.100, inclusive, have the meanings ascribed to them in those sections.
Sec. 10 NRS 366.175 is hereby amended to read as follows:
366.1751. To the extent permitted by federal law, the department may enter into cooperative agreements with other states and countries for the exchange of information regarding, and the auditing of, persons who use special fuel in motor vehicles operated or intended to operate interstate. Any agreement, arrangement or declaration, or any amendment thereto, is not effective until reduced to writing and signed by the parties thereto or their authorized representatives.
2. An agreement may include, with respect to persons who use special fuel, provisions:
(a) For determining the domicile of those persons;
(b) Specifying the records which are required to be kept by those persons;
(c) Relating to audit procedures, the exchange of information and persons eligible for licensing;
(d) Defining various words and terms;
(e) Setting forth the procedure for collecting special fuel taxes owing to another jurisdiction and forwarding those taxes to that jurisdiction; and
(f) Designed to facilitate the administration of the agreement.
3. The department may, pursuant to the terms of an agreement, forward to the designated representatives of another jurisdiction any information in its possession relating to the manufacture, transportation, shipment, sale or use of special fuel by any person, and the location within this state of any motor vehicles owned by a person who has been identified by another jurisdiction as a user of special fuel.
4. An agreement may provide that each jurisdiction shall audit the records of persons residing or doing business within that jurisdiction to determine if the special fuel taxes owing to each jurisdiction have been properly reported and paid, and requiring each jurisdiction to forward the findings of its audits to every other jurisdiction in which the person who is the subject of an audit has incurred tax liability as a result of his use of special fuel. The audit findings received from another jurisdiction may be used by the department as the basis for [an estimated assessment] a determination of the amount of the tax due from a person pursuant to the provisions of NRS [366.405.] 360.300.
5. Any agreement entered into pursuant to the provisions of this section does not preclude the department from auditing the records of any person subject to the provisions of this chapter.
Sec. 11 NRS 366.620 is hereby amended to read as follows:
366.620 1. If the ownership of a motor vehicle subject to the lien provided for by NRS [366.590] 360.473 is transferred, whether by operation of law or otherwise, no certificate of registration or certificate of ownership with respect to the motor vehicle may be issued by the department of motor vehicles and public safety to the transferee or person otherwise entitled thereto until the department of taxation has issued a certificate that the lien has been removed.
2. No license issued [under] pursuant to chapter 706 of NRS with respect to a motor vehicle which becomes subject to the lien provided for by NRS [366.590] 360.473 may be transferred until the department of taxation has issued a certificate that the lien has been removed.
Sec. 12 NRS 481.023 is hereby amended to read as follows:
481.023Except as otherwise provided therein, the department shall execute, administer and enforce, and perform the functions and duties provided in:
1. Title 43 of NRS relating to vehicles.
2. Chapter 706 of NRS relating to licensing of motor vehicle carriers and the use of public highways by those carriers.
3. [Chapter 366 of NRS relating to imposition and collection of taxes on special fuels used for motor vehicles.
4.] Chapter 453 of NRS relating to controlled substances and chapter 454 of NRS relating to dangerous drugs.
[5.] 4. Chapter 459 of NRS relating to the transportation of hazardous materials.
[6.] 5. Chapter 414 of NRS relating to emergency management.
[7.] 6. Chapter 477 of NRS relating to the state fire marshal.
[8.] 7. Chapters 176 and 213 of NRS relating to parole and probation.
Sec. 13 NRS 481.071 is hereby amended to read as follows:
481.0711. Any change in the organization of the department may include the divisions, functions and responsibilities described in subsection 2 but must not include those described in paragraph (e), (h) or (i) of that subsection.
2. Unless the organization of the department is changed by the director, the primary functions and responsibilities of the specified divisions of the department are as follows:
(a) The registration division shall:
(1) Execute, administer and enforce the provisions of chapter 482 of NRS and perform such duties and exercise such powers as may be conferred upon it pursuant to chapter 482 of NRS and the provisions of any other laws;
(2) Execute and administer the laws relative to the licensing of motor vehicle carriers and the use of public highways by those carriers as contained in chapter 706 of NRS;
(3) Perform such duties and exercise such powers as may be conferred upon it pursuant to chapter 706 of NRS and the provisions of any other laws;
(4) [Execute and administer the provisions of chapter 366 of NRS, relating to the imposition and collection of taxes on special fuels used for motor vehicles; and
(5)] Perform such duties and exercise such powers as may be conferred upon it pursuant to chapter 366 of NRS and the provisions of any other laws.
(b) The drivers' license division shall execute, administer and enforce the provisions of chapter 483 of NRS and perform such duties and exercise such powers as may be conferred upon it pursuant to chapter 483 of NRS and the provisions of any other laws.
(c) The administrative services division shall furnish fiscal and accounting services to the director and the various divisions and advise and assist the director and the various divisions in carrying out their functions and responsibilities.
(d) The investigation division shall:
(1) Execute, administer and enforce the provisions of chapter 453 of NRS relating to controlled substances and chapter 454 of NRS relating to dangerous drugs;
(2) Assist the secretary of state in carrying out an investigation pursuant to NRS 293.124; and
(3) Perform such duties and exercise such powers as may be conferred upon it pursuant to this chapter and any other laws.
(e) The Nevada highway patrol division shall execute, administer and enforce the provisions of chapter 484 of NRS and perform such duties and exercise such powers as may be conferred upon it pursuant to NRS 481.180 and the provisions of any other laws.
(f) The division of emergency management shall execute, administer and enforce the provisions of chapter 414 of NRS and perform such duties and exercise such powers as may be conferred upon it pursuant to chapter 414 of NRS and the provisions of any other laws.
(g) The state fire marshal division shall execute, administer and enforce the provisions of chapter 477 of NRS and perform such duties and exercise such powers as may be conferred upon it pursuant to chapter 477 of NRS and the provisions of any other laws.
(h) The division of parole and probation shall execute, administer and enforce the provisions of chapters 176 and 213 of NRS relating to parole and probation and perform such duties and exercise such powers as may be conferred upon it pursuant to those chapters and the provisions of any other law.
(i) The capitol police division shall assist the chief of the buildings and grounds division of the department of administration in the enforcement of subsection 1 of NRS 331.140.
Sec. 14 NRS 482.313 is hereby amended to read as follows:
482.313 1. Upon the lease of a passenger car by a short-term lessor in this state, the short-term lessor shall charge and collect from the short-term lessee a fee of 6 percent of the total amount for which the passenger car was leased, excluding any taxes or other fees imposed by a governmental entity. The amount of the fee must be indicated in the lease agreement.
2. On or before January 31 of each year, the short-term lessor shall:
(a) File with the department [,] of taxation and the department of motor vehicles and public safety, on a form prescribed by the department [,] of taxation, a report indicating the total amount of:
(1) Fees collected by the short-term lessor during the immediately preceding year pursuant to this section; and
(2) Vehicle licensing fees and taxes paid by the short-term lessor during the immediately preceding year pursuant to this chapter.
(b) Remit to the department [:] of taxation:
(1) One-third of the fees collected by the short-term lessor during the immediately preceding year pursuant to this section; and
(2) Of the remainder of [such] those fees, any amount in excess of the total amount of vehicle licensing fees and taxes paid by the short-term lessor during the immediately preceding year pursuant to this chapter.
3. The department of taxation shall deposit all money received from short-term lessors pursuant to the provisions of this section with the state treasurer for credit to the state general fund.
4. To ensure compliance with this section, the department of taxation may audit the records of a short-term lessor.
5. [Nothing in this section limits or affects] The provisions of this section do not limit or affect the payment of any taxes or fees imposed pursuant to the provisions of this chapter.
6. The department of motor vehicles and public safety shall, upon request, provide to the department of taxation any information in its records relating to a short-term lessor that the department of taxation considers necessary to collect the fee required by this section.
7. As used in this section, "vehicle licensing fees and taxes" means:
(a) The fees paid by a short-term lessor for the registration of, and the issuance of certificates of title for, the passenger cars leased by him; and
(b) The basic and supplemental privilege taxes paid by the short-term lessor with regard to [such] those passenger cars.
Sec. 15 NRS 366.025, 366.395, 366.405, 366.510, 366.560, 366.570, 366.580, 366.590, 366.600, 366.610, 366.630 and 366.640 are hereby repealed.
Sec. 16 The regulations adopted by the department of motor vehicles and public safety pursuant to NRS 366.110, 366.207, 366.220 and 366.397 are void.
Sec. 17 The department of taxation shall, as soon as practicable after July 1, 1997, adopt regulations to carry out the provisions of chapter 366 of NRS. The regulations adopted pursuant to this section become effective on July 1, 1998.
Sec. 18 1. This section and sections 14 and 17 of this act become effective on July 1, 1997.
2. Sections 1 to 13, inclusive, 15 and 16 of this act become effective on July 1, 1998.
LEADLINES OF REPEALED SECTIONS
366.025 "Department" defined.
366.395Interest and penalties on default; when return or statement deemed delinquent.
366.405Additional or estimated assessment of special fuel tax: Interest; penalties; notice; redeterminations.
366.510Remittances: Time for payment; addition of penalties.
366.560Suit for tax: Duty of attorney general or district attorney.
366.570Suit for tax: Attachment.
366.580Evidentiary effect of verified claim of department.
366.590Lien of tax: Nature and operation; time of attachment; department to give notice to interest holders before seizure of vehicle; hearing.
366.600Duration of lien.
366.610Priority of lien.
366.630Notice to persons controlling credits or other property of delinquent user; transfer or disposition prohibited; persons notified to advise department of such credits and property.
366.640Remedies cumulative; election of remedies.