SUMMARY--Transfers responsibility for collection of certain fees 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 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 360.300 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, 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. 2 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. 3 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. 4 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, 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. 5 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, 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. 6 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. 7 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. 8 This act becomes effective on July 1, 1997.