Assembly Bill No. 482-Committee on Taxation

May 14, 1997
____________

Referred to Committee on Taxation

SUMMARY--Revises provisions relating to imposition and collection of tax on certain types of motor vehicle fuel. (BDR 32-1661)

FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to the tax on motor vehicle fuel; providing in skeleton form for the collection of the tax on certain types of motor vehicle fuel at the terminal rack by suppliers of those types of fuel; prohibiting exporters of certain types of motor vehicle fuel from selling or distributing those types of fuel in this state; providing a penalty; 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 Chapter 365 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 14, inclusive, of this act.
Sec. 2 "Exporter" means a person, other than a supplier, who receives motor vehicle fuel, other than aviation fuel, in this state and sells or distributes that fuel outside this state.
Sec. 3 "Rack" means a deck, platform or open bay that consists of a series of metered pipes and hoses for delivering motor vehicle fuel from a refinery or terminal into a motor vehicle, rail car or vessel.
Sec. 4 "Supplier" means a person who:
1. Imports or acquires immediately upon importation into this state motor vehicle fuel, except aviation fuel, from within or without a state, territory or possession of the United States or the District of Columbia into a terminal located in this state; or
2. Otherwise acquires for distribution in this state motor vehicle fuel, except aviation fuel, with respect to which there has been no previous taxable sale or use.
Sec. 5 "Terminal" means a facility for the storage of motor vehicle fuel that is supplied by a motor vehicle, pipeline or vessel and from which motor vehicle fuel is removed for distribution at a rack.
Sec. 6 1. Except as otherwise provided in subsection 2, a person shall not import, sell, distribute, use or store motor vehicle fuel, except aviation fuel, in this state for which the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act, have not been paid.
2. A supplier may import or store motor vehicle fuel for which the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act have not been paid.
Sec. 7 1. Except as otherwise provided in subsections 2 and 3, each supplier who sells or distributes motor vehicle fuel, other than aviation fuel, shall, at the time the motor vehicle fuel is distributed from a terminal, collect the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act.
2. A supplier may sell motor vehicle fuel, other than aviation fuel, to a purchaser without collecting the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act if the purchaser of the motor vehicle fuel:
(a) Has been issued a permit by the department pursuant to section 11 of this act; and
(b) Elects to defer payment of the tax.
3. A supplier shall not collect the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act if the purchaser of the fuel is:
(a) A supplier; or
(b) An exporter.
4. A supplier who sells motor vehicle fuel, other than aviation fuel, to any other supplier shall keep such records of the transaction as the department may require. The department shall adopt regulations setting forth:
(a) The records that must be kept by the supplier pursuant to this subsection; and
(b) The period for which those records must be kept by the supplier.
Sec. 8 1. Except as otherwise provided in section 14 of this act, every supplier shall, not later than the 25th day of each calendar month:
(a) Submit to the department a statement of all motor vehicle fuel, except aviation fuel, sold, distributed or used by him in this state; and
(b) Pay an excise tax on all motor vehicle fuel, except aviation fuel, in the amount of 17.65 cents per gallon sold, distributed or used, in the manner prescribed in this chapter.
2. A supplier shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the state.
Sec. 9 1. Except as otherwise provided in subsection 3, in calculating the amount of tax on motor vehicle fuel, other than aviation fuel, a supplier owes to the department, the supplier may deduct from the amount due pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act any amount that is due but has not been paid by a purchaser who is authorized by the department to defer payment of the tax pursuant to section 11 of this act. If such a deduction is claimed, the claim must identify the purchaser and the amount of the taxes that he failed to pay.
2. A supplier shall not deduct from the amount he owes the department pursuant to subsection 1 any amount that has not been paid by a person whose permit to defer the payment of the tax has been revoked pursuant to subsection 4 of section 11 of this act if, before the motor vehicle fuel, other than aviation fuel, was purchased, the supplier was notified by the department pursuant to subsection 5 of section 11 of this act that it had revoked the permit of the purchaser.
Sec. 10 Each exporter shall, not later than the 25th day of each month, submit to the department a written statement that sets forth:
1. The number of gallons of motor vehicle fuel, other than aviation fuel, he received during the previous month;
2. The number of gallons of motor vehicle fuel, other than aviation fuel, he sold or distributed outside this state;
3. The name and mailing address of each person to whom he sold or distributed motor vehicle fuel, other than aviation fuel, outside this state; and
4. The number of gallons of motor vehicle fuel, other than aviation fuel, he sold or distributed to each person to whom he sold or distributed the fuel outside this state.
Sec. 11 1. A purchaser of motor vehicle fuel, other than aviation fuel, who wishes to defer payment to the supplier of the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act until 20 days after the end of the month in which the fuel is purchased must apply to the department for a permit to defer the payment of the tax.
2. The department may require an applicant for a permit to defer payment of the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act, to provide a bond executed by him as principal, and by the corporation qualified pursuant to the laws of this state as surety, payable to this state. The bond must indemnify the department against any deduction claimed pursuant to section 9 of this act by a supplier because of the principal's failure to pay the tax as required by this chapter.
3. If a purchaser of motor vehicle fuel, other than aviation fuel:
(a) Has been issued a permit to defer the payment of the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act; and
(b) Elects to defer payment of the taxes,
he shall, not later than 20 days after the end of the month in which the fuel is purchased, pay the taxes to the supplier by electronic transfer of money.
4. If a purchaser fails to make a payment to a supplier as required by this section, the department may:
(a) Revoke the permit of the purchaser;
(b) If the purchaser was required to provide a bond pursuant to subsection 2, require the purchaser to increase the amount of the bond; or
(c) Take any other action necessary to ensure that the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act are paid.
5. The department shall notify each supplier in this state when it revokes a permit pursuant to this section.
6. The department shall adopt regulations to carry out the provisions of this section.
7. As used in this section, "electronic transfer of money" means any transfer of money, other than a transaction initiated by a check, draft or other similar instrument, that is initiated through an electronic terminal, telephone, computer or magnetic tape to order, instruct or authorize a financial institution or person holding an account on behalf of a purchaser of motor vehicle fuel to debit an account.
Sec. 12 1. Each supplier shall prepare and provide a record of shipment to each person who purchases more than 25 gallons of motor vehicle fuel, other than aviation fuel, and transports the fuel from the place of purchase. The record of shipment must include the:
(a) Place where the fuel was purchased;
(b) Place to which the purchaser declares the fuel will be transported;
(c) Number of gallons of fuel transported; and
(d) Name and address of the purchaser of the fuel.
2. Each person who transports fuel in this state shall:
(a) Keep the record of shipment required by subsection 1 in the vehicle in which the fuel is transported until the fuel is delivered to the purchaser; and
(b) Upon request from a peace officer, allow the peace officer to inspect the record of shipment.
Sec. 13 An exporter shall not sell or distribute motor vehicle fuel, other than aviation fuel, in this state. An exporter who violates the provisions of this section:
1. Is guilty of a misdemeanor; and
2. Shall, within the period prescribed in section 8 of this act, pay to the department the taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 8 of this act on all motor vehicle fuel, other than aviation fuel, sold or distributed in this state.
Sec. 14 1. The department may, for good cause, extend for not more than 30 days the period for making any report or return required pursuant to this chapter. The extension may be granted at any time if:
(a) A request therefor has been filed with the department within or before the period for which the extension may be granted; and
(b) A remittance of the estimated tax is made when the remittance is due.
2. Any report, return, remittance to cover a payment or claim for credit or refund required by this chapter which is transmitted through the United States mail shall be deemed filed or received by the department on the date indicated on the post office cancellation mark stamped upon the envelope containing it, or on the date it was mailed if proof satisfactory to the department establishes that the document or remittance was timely deposited in the United States mail and properly addressed to the department.
Sec. 15 NRS 365.010 is hereby amended to read as follows:
365.010[Except where] As used in this chapter, unless the context otherwise requires, the [definitions given in this chapter govern the construction of this chapter.] words and terms defined in NRS 365.015 to 365.080, inclusive, and sections 2 to 5, inclusive, of this act, have the meanings ascribed to them in those sections.
Sec. 16 NRS 365.020 is hereby amended to read as follows:
365.0201. "Dealer" means every person who:
(a) Refines, manufactures, compounds or otherwise produces [motor vehicle] aviation fuel or fuel for jet or turbine-powered aircraft and sells or distributes the same in this state.
(b) [Refines, manufactures, compounds or otherwise produces ethyl alcohol for use in a petroleum-ethanol mixture and sells or distributes the same in this state.
(c) Imports motor vehicle] Imports aviation fuel or fuel for jet or turbine-powered aircraft into this state and sells or distributes it therein, whether in the original package or container in which it is imported or otherwise, or who uses the [motor vehicle] aviation fuel or fuel for jet or turbine-powered aircraft in this state after having imported the fuel.
[(d)] (c) Having acquired [motor vehicle] aviation fuel or fuel for jet or turbine-powered aircraft in this state in the original package or container, distributes or sells it in the original package or container or otherwise, or in any manner uses the fuel.
[(e)] (d) Otherwise acquires in this state for sale, use or distribution in this state [motor vehicle] aviation fuel or fuel for jet or turbine-powered aircraft with respect to which there has been no prior taxable sale, use or distribution.
2. "Dealer" does not include any person who imports into this state [motor vehicle fuel,] aviation fuel or fuel for jet or turbine-powered aircraft [, or ethyl alcohol] in quantities of 500 gallons or less purchased from [a supplier] another dealer who is licensed [as a dealer under] pursuant to this chapter and who assumes liability for the collection and remittance of the applicable excise tax to this state.
Sec. 17 NRS 365.080 is hereby amended to read as follows:
365.080"Retailer" means [every] :
1. Any person, other than a dealer [as defined in NRS 365.020,] who is engaged in the business of selling motor vehicle fuel or fuel for jet or turbine-powered aircraft [.] ; or
2. Any person in the business of handling motor vehicle fuel, other than aviation fuel, who delivers or authorizes the delivery of the fuel into the fuel supply tank or tanks of a motor vehicle that is not owned or controlled by him.
Sec. 18 NRS 365.130 is hereby amended to read as follows:
365.1301. The department [shall have power, by itself or by its duly] or its authorized agents [, to] may make any audit, examination or inquiry of and concerning the records, stocks, facilities, equipment and transactions of dealers, suppliers, retailers of petroleum products and carriers [thereof,] of petroleum products, and such other investigations as it [may deem necessary in carrying] deems necessary to carry out the provisions of this chapter.
2. If any investigation discloses that any report or any payment has been incorrect, the department may make such changes in subsequent reports and payments as may be necessary to correct the error so disclosed.
Sec. 19 NRS 365.170 is hereby amended to read as follows:
365.1701. [Every] Except as otherwise provided in section 14 of this act, every dealer shall, not later than the 25th day of each calendar month:
(a) Render to the department a statement of all [motor vehicle] aviation fuel and fuel for jet or turbine-powered aircraft sold, distributed or used by him in the State of Nevada, as well as all such fuel sold, distributed or used in this state by a purchaser thereof upon which sale, distribution or use the dealer has assumed liability for the tax thereon under NRS 365.020, during the preceding calendar month; and
(b) Pay an excise tax on:
(1) All fuel for jet or turbine-powered aircraft in the amount of 1 cent per gallon, plus any amount imposed by the county in which the fuel is sold, distributed or used pursuant to NRS 365.203; and
(2) Aviation fuel in the amount of 10.5 cents per gallon , [; and
(3) All other motor vehicle fuel in the amount of 17.65 cents per gallon,]
so sold, distributed or used, in the manner and within the time prescribed in this chapter.
2. A dealer shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the state.
[3. The department for good cause may extend for not more than 30 days the time for making any report or return required under this chapter. The extension may be granted at any time if:
(a) A request therefor has been filed with the department within or before the period for which the extension may be granted; and
(b) A remittance of the estimated tax is made when due.
4. Any report, return, remittance to cover a payment or claim for credit or refund required by this chapter which is transmitted through the United States mail shall be deemed filed or received by the department on the date shown by the post office cancellation mark stamped upon the envelope containing it, or on the date it was mailed if proof satisfactory to the department establishes that the document or remittance was timely deposited in the United States mail properly addressed to the department.]
Sec.
20 NRS 365.180 is hereby amended to read as follows:
365.1801. In addition to any other tax provided for in this chapter, there is hereby levied an excise tax of 3.6 cents per gallon on all motor vehicle fuel, except aviation fuel.
2. This tax must be accounted for by each [dealer] supplier and be collected in the manner provided in this chapter. The tax must be paid to the department and delivered by the department to the state treasurer.
Sec. 21 NRS 365.185 is hereby amended to read as follows:
365.1851. In addition to any other tax provided for in this chapter, there [shall be] is hereby levied an excise tax on gasoline.
2. This tax [shall] must be imposed and [shall] will increase up to a total of 4 cents per gallon, if the tax collected by the Federal Government pursuant to the provisions of 26 U.S.C. § 4081, is diminished or discontinued in whole or in part. The amount of the tax so imposed by this state [shall] must be equal to the amount by which the federal tax is reduced.
3. This tax [shall] must be accounted for by each [dealer and shall] supplier and must be collected in the manner provided in this chapter. The tax [shall] must be paid to the department and delivered by the department to the state treasurer.
Sec. 22 NRS 365.190 is hereby amended to read as follows:
365.1901. Subject to the provisions of subsection 3, in addition to any other tax provided for in this chapter, there is hereby levied an excise tax of 1.75 cents per gallon on all motor vehicle fuel, except aviation fuel.
2. [This tax must be accounted for by each dealer as to the county in which it is sold to the retailer and] The tax imposed pursuant to this section must be collected in the manner provided in this chapter. Upon the collection of the tax by the supplier, the purchaser of the fuel shall provide to the supplier a statement that sets forth the number of gallons of fuel that will be sold to retailers in each county in this state. The tax must be paid to the department and delivered by the department to the state treasurer. When the tax is paid to the department, the supplier shall provide to the department a copy of the statement provided to the supplier by the purchaser pursuant to this subsection.
3. The provisions of this section shall be deemed to be optional. The board of county commissioners of any county may decline to accept the additional tax levied pursuant to this section by the adoption of a resolution passed before July 1, 1947, which must be reconsidered and passed once each year within 60 days before July 1 of each year as long as the board of county commissioners desires so to act. Upon the adoption of such a resolution no tax may be collected.
Sec. 23 NRS 365.192 is hereby amended to read as follows:
365.1921. In addition to any other tax provided for in this chapter, there is hereby levied an excise tax of 1 cent per gallon on motor vehicle fuel, except aviation fuel.
2. [This tax must be accounted for by each dealer as to the county in which the motor vehicle fuel is sold to the retailer and] The tax imposed pursuant to this section must be collected in the manner provided in this chapter. Upon the collection of the tax by the supplier, the purchaser of the fuel shall provide to the supplier a statement that sets forth the number of gallons of fuel that will be sold to retailers in each county in this state. The tax must be paid to the department and delivered by the department to the state treasurer. When the tax is paid to the department, the supplier shall provide to the department a copy of the statement provided to the supplier by the purchaser pursuant to this subsection.
Sec. 24 NRS 365.200 is hereby amended to read as follows:
365.2001. In addition to any other taxes provided for by this chapter, every person who [shall use] uses any inflammable or combustible liquid or other material other than motor vehicle fuel [as defined in NRS 365.060] to operate a motor vehicle on the highways of this state, except special fuel as defined in NRS 366.060, shall pay an excise tax as provided by NRS 365.170, 365.180 and 365.190 for each gallon thereof so used, and shall render monthly statements and make monthly payments at the times and in the manner prescribed for [dealers] suppliers in this chapter.
2. Any owner or operator of a motor vehicle who [shall import] imports motor vehicle fuel or other fuel or material, except special fuel as defined in NRS 366.060, into this state, from another state or from federal proprietary lands or reservations, in the fuel tank or tanks of any such motor vehicle in a quantity exceeding 25 gallons shall, upon demand of the department or its [duly] authorized agent, pay to the department on such excess motor vehicle fuel the excise tax required to be paid by [dealers.] suppliers.
3. [Nothing in this chapter shall be construed to] The provisions of this chapter do not require more than one payment of any excise tax upon or in respect to the same fuel.
Sec. 25 NRS 365.205 is hereby amended to read as follows:
365.2051. A retailer of [motor vehicle] aviation fuel who receives or sells [motor vehicle] aviation fuel for which the taxes imposed pursuant to this chapter have not been paid is liable for the taxes and any applicable penalty or interest if the retailer knew or should have known that the applicable taxes on the fuel had not been paid.
2. For the purposes of subsection 1, a retailer who verifies the identification number printed on the delivery ticket of the dealer shall be deemed to have acted without knowledge of the fact of nonpayment.
Sec. 26 NRS 365.207 is hereby amended to read as follows:
365.2071. A responsible person who willfully fails to collect or pay to the department the tax imposed by this chapter or who willfully attempts to evade the payment of the tax is jointly and severally liable with the dealer or supplier for the tax owed , plus interest and all applicable penalties. The responsible person shall pay the tax upon notice from the department that it is due.
2. As used in this section, "responsible person" includes:
(a) An officer or employee of a corporation; and
(b) A member or employee of a partnership or limited-liability company,
whose job or duty it is to collect, account for or pay to the department the tax imposed by this chapter.
Sec. 27 NRS 365.220 is hereby amended to read as follows:
365.220The provisions of this chapter requiring the payment of excise taxes do not apply to : [any of the following:]
1. Motor vehicle fuel [so long as] if it remains in interstate or foreign commerce.
2. Motor vehicle fuel , except aviation fuel, exported from this state by a supplier.
3. Aviation fuel or fuel for jet or turbine-powered aircraft exported from this state by a dealer.
[3.] 4. Motor vehicle fuel or fuel for jet or turbine-powered aircraft sold to the United States Government for official use of the United States Armed Forces.
[4.] 5. Motor vehicle fuel , other than aviation fuel, distributed or delivered on the order of the owner, to a supplier, or aviation fuel or fuel for jet or turbine-powered aircraft distributed [,] or delivered on the order of the owner, to a dealer [who] , if the dealer or supplier has furnished security in the amount prescribed in NRS 365.290 and [who] has established to the satisfaction of the department that the security is sufficient to ensure payment of all excise taxes as they may become due to the state from him [under] pursuant to this chapter. Every dealer or supplier who claims an exemption shall report the distributions to the department in such detail as the department may require [; otherwise,] , otherwise the exemption granted in this subsection is void and all fuel is considered distributed in this state subject fully to the provisions of this chapter.
Sec. 28 NRS 365.230 is hereby amended to read as follows:
365.2301. The provisions of this chapter requiring the payment of excise taxes do not apply to [motor] :
(a) Motor vehicle fuel , other than aviation fuel, sold by a supplier; or
(b) Aviation fuel or fuel for jet or turbine-powered aircraft sold by a dealer ,
in individual quantities of 500 gallons or less for export to another state or country by the purchaser other than in the supply tank of a motor vehicle or an aircraft, if the dealer or supplier is licensed in the state of destination to collect and remit the applicable destination state taxes thereon.
2. In support of any exemption from taxes on account of sales of motor vehicle fuel or fuel for jet or turbine-powered aircraft in individual quantities of 500 gallons or less for export by the purchaser, the dealer or supplier who sold the fuel to the purchaser shall retain in his files for at least 3 years an export certificate executed by the purchaser in such form and containing such information as is prescribed by the department. This certificate is prima facie evidence of the exportation of the motor vehicle fuel or fuel for jet or turbine-powered aircraft to which it applies only if accepted by the dealer or supplier in good faith. If the purchaser fails to export any part of the motor vehicle fuel or fuel for jet or turbine-powered aircraft covered by the certificate, he shall remit to the department immediately thereafter the applicable amount in taxes due on the part not exported. Upon failure to do so the purchaser is subject to all penalties in this chapter for delinquency in payment of taxes.
Sec. 29 NRS 365.270 is hereby amended to read as follows:
365.2701. After April 1, 1935, it [shall be] is unlawful for any person to be a dealer without holding a dealer's license as provided for in this chapter.
2. After January 1, 1998, it is unlawful for any person to be a supplier without holding a supplier's license as provided for in this chapter.
Sec. 30 NRS 365.280 is hereby amended to read as follows:
365.280 1. Before becoming a dealer [, every] or supplier, a person shall apply to the department, on forms to be prescribed and furnished by the department, for a license authorizing the applicant to engage in business as a dealer [.] or supplier.
2. The fee for each license issued [shall] must be $5 . [, which shall] The fee must be paid to the department. All [such fees shall] fees paid to the department must be delivered by the department to the state treasurer and [shall] must be credited by him to the state highway fund.
Sec. 31 NRS 365.290 is hereby amended to read as follows:
365.2901. Before granting any license the department shall require the applicant to file with the department a bond executed by the applicant as principal, and by a corporation qualified under the laws of this state as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and other obligations of the applicant as a dealer [.] or supplier.
2. The total amount of the bond or bonds required of any dealer or supplier may be fixed by the department at three times the estimated maximum monthly tax, determined in such a manner as the department deems proper. If the department determines that a person is habitually delinquent in the payment of amounts due pursuant to this chapter, it may increase the amount of his security to not more than five times the estimated maximum monthly tax. When cash or a savings certificate, certificate of deposit or investment certificate is used, the amount required must be rounded off to the next larger integral multiple of $100, within the same upper limit.
3. The department may increase or decrease the amount of security required by this section subject to the limitations provided in this section.
4. No recovery on any bond, nor the execution of any new bond, nor the revocation, cancellation or suspension of any license affects the validity of any bond.
5. In lieu of any bond or bonds, a dealer or supplier may deposit with the department, under such terms and conditions as the department may prescribe, a like amount of lawful money of the United States or any other form of security authorized by NRS 100.065. If security is provided in the form of a savings certificate, certificate of deposit or investment certificate, the certificate must state that the amount is unavailable for withdrawal except upon order of the department.
Sec. 32 NRS 365.310 is hereby amended to read as follows:
365.3101. The department [shall have power to] may suspend, cancel or revoke the license of any dealer or supplier refusing or neglecting to comply with the provisions of this chapter.
2. If a dealer or supplier becomes delinquent in the payment of excise taxes as prescribed by this chapter to the extent that his liability exceeds the total amount of the bond or bonds furnished by the dealer [,] or supplier, the department shall suspend his license immediately.
3. Before revoking or canceling any license issued [under] pursuant to this chapter, the department shall send a notice by registered or certified mail to the dealer or supplier at his last known address. The notice [shall] must order the dealer or supplier to show cause why his license should not be revoked by appearing before the department at Carson City, Nevada, or such other place in this state as may be designated by the department, at a time not less than 10 days after the mailing of the notice. The department shall allow the dealer or supplier an opportunity to be heard in pursuance of [such] the notice, and thereafter the department [shall have full power to] may revoke or cancel his license.
Sec. 33 NRS 365.330 is hereby amended to read as follows:
365.3301. The excise taxes prescribed in this chapter [shall] must be paid on or before the 25th day of each calendar month to the department. The department shall deliver [all such] the taxes to the state treasurer, who shall [receipt] provide to the dealer , supplier or user [therefor.] a receipt for the payment of the taxes.
2. From the tax found to be due upon any statement [duly and punctually rendered,] submitted by a dealer pursuant to NRS 365.170 or a user pursuant to NRS 365.200, the dealer or user [shall be allowed to deduct] may retain 2 percent [thereof] of the amount of the tax collected to cover the dealer's or user's costs of collection of the tax and of compliance with this chapter and the dealer's or user's handling losses occasioned by evaporation, spillage or other similar causes.
3. The department shall allow each supplier to retain an amount equal to 2 percent of the amount of the tax collected by the supplier as a fee for making the collection. If the motor vehicle fuel for which the tax was collected by the supplier is sold to a purchaser who has been issued a permit pursuant to section 11 of this act, the supplier:
(a) Is entitled to retain one-half of the fee; and
(b) Shall distribute one-half of the fee to the purchaser. If the fuel is resold by that purchaser to another purchaser who has been issued a permit pursuant to section 11 of this act, the purchaser who sells the fuel to the subsequent purchaser shall distribute to that subsequent purchaser one-half of the fee he received from the supplier.
Sec. 34 NRS 365.340 is hereby amended to read as follows:
365.3401. If the amount of any excise tax for any month is not paid to the state on or before the 25th day of the next month, it becomes delinquent at the close of business on that day. A dealer , supplier or user may have up to 15 additional days to make the payment, if he makes application to the department and the department finds good cause for the extension.
2. The proceeds from any penalty levied for the delinquent payment of an excise tax must be allocated proportionately to the state highway fund, the county gas tax funds, the account for taxes on aviation fuel and the account for taxes on fuel for jet or turbine-powered aircraft by the department.
Sec. 35 NRS 365.380 is hereby amended to read as follows:
365.3801. A claimant for refund must present to the department a refund claim form accompanied by the original invoices showing the purchase. The refund forms must state the total amount of fuel so purchased and used otherwise than for the propulsion of motor vehicles or jet or turbine-powered aircraft and the manner and the equipment in which the claimant has used the fuel.
2. A claimant for refund of tax on motor vehicle fuel or fuel for jet or turbine-powered aircraft purchased and exported from this state shall execute and furnish to the department a certificate of exportation on such form as may be prescribed by the department.
3. An invoice to qualify for refund must contain at least:
(a) The number of gallons of fuel purchased;
(b) The price per gallon;
(c) The total purchase price of the fuel; and
(d) Such other information as may be prescribed by the department.
4. The signature on the refund claim form subjects the claimant to the charge of perjury for false statements contained on the refund application.
5. Daily records must be maintained and preserved for a period of 3 years for audit purposes of all motor vehicle fuel and fuel for jet or turbine-powered aircraft used. The record must set forth:
(a) The piece of equipment being supplied with the fuel;
(b) The number of gallons of fuel used in each fill; and
(c) The purpose for which the piece of equipment will be used.
The gasoline fills must be further classified [as to on-or off-highway use.] according to whether the gasoline was used on or off the highways.
6. If a motor vehicle with auxiliary equipment consumes motor vehicle fuel and there is no auxiliary motor or separate tank for the motor, a refund of 20 percent of the tax paid on the fuel used in the vehicle may be claimed without the necessity of furnishing proof of the amount of fuel consumed in the operation of the auxiliary equipment. [Where claims for refund exceed 20 percent the] The department shall, by regulation, establish uniform refund provisions for the respective classes of users [.] who claim refunds of more than 20 percent of the tax paid.
7. No person may be granted a refund of motor vehicle fuel taxes for off-highway use when the consumption takes place on highways constructed and maintained by public funds, on federal proprietary lands or reservations where the claimant has no ownership or control over the land or highways, except when the person is under a contractual relationship with the Federal Government or one of its agencies and is engaged in the performance of his duties pursuant to that relationship. Employment of a person by the Federal Government or any of its agencies does not constitute a contractual relationship for the purpose of this subsection.
8. [When] If, in the opinion of the department , it would be beneficial to the state for a refund claimant to become a licensed dealer [,] or supplier, the claimant may, at the option of the department, be required to become a licensed dealer or supplier, rather than a refund claimant unless the claimant chooses to claim refunds at the tax rate, less 2 percent.
Sec. 36 NRS 365.390 is hereby amended to read as follows:
365.390Upon the presentation of [such affidavits,] the invoices, written statements, tax exemption certificates or exportation certificates [,] required pursuant to this chapter, the department shall cause to be repaid to the claimant from the taxes collected [under] pursuant to this chapter an amount equal to the taxes [so] paid by the claimant less the percentage allowed the dealer , supplier or user pursuant to NRS 365.330.
Sec. 37 NRS 365.460 is hereby amended to read as follows:
365.460After payment of any excise tax under protest duly verified, served on the department, and setting forth the grounds of objection to the legality of the excise tax, the dealer or supplier paying the excise tax may bring an action against the state treasurer in the district court in and for Carson City for the recovery of the excise tax [so] paid under protest.
Sec. 38 NRS 365.530 is hereby amended to read as follows:
365.5301. Every person transporting on any highway [of the State of Nevada motor vehicle] in this state aviation fuel or fuel for jet or turbine-powered aircraft or other inflammable or combustible liquids in an amount of 25 gallons or more shall have in his possession at all times [during such transportation] while transporting the fuel an invoice, bill of sale or other document showing the name and address of the seller or consignor and of the buyer or consignee, if any, of the product so transported.
2. Any person engaged in transporting [motor vehicle] aviation fuel or fuel for jet or turbine-powered aircraft or other inflammable or combustible liquids by tank truck or tank truck and trailer to be delivered to a dealer or any reseller of such products or to persons known to the trade as commercial consumers is required only to have in his possession adequate evidence showing the amount of the [motor vehicle] aviation fuel, fuel for jet or turbine-powered aircraft or other inflammable or combustible liquids loaded in his conveyance at the time the conveyance left its loading point, and the name and address of the dealer who has assumed or is charged with the responsibility for the payment of the tax due thereon, if any. The date of the delivery [thereto] of the fuel to the dealer must be furnished to the department upon request.
3. A person shall produce and exhibit the documentation and evidence required to be in his possession by this section to any sheriff, deputy sheriff, police officer or authorized agent of the department upon request. If the person fails to produce the documentation and evidence, the sheriff, deputy sheriff, police officer or authorized agent of the department may seize and detain the truck and trailer and the fuel or other inflammable or combustible liquid until the documentation and evidence are produced and any taxes due are paid.
Sec. 39 NRS 365.540 is hereby amended to read as follows:
365.5401. The money collected, as prescribed by NRS [365.170 and] 365.185, and section 8 of this act, from the tax on motor vehicle fuels, other than aviation fuel, after the remittances and deposits have first been made pursuant to the provisions of NRS 365.535, must be placed to the credit of the state highway fund by the state treasurer. An amount equal to that part of the tax collected pursuant to [subparagraph (3) of paragraph (b) of subsection 1 of NRS 365.170,] section 8 of this act, which represents 5 cents of the tax per gallon must be used exclusively for the construction and maintenance of public highways, and may not be used to purchase equipment related thereto.
2. The money collected, as prescribed by NRS 365.180 and 365.190, after the remittances and deposits have first been made pursuant to the provisions of NRS 365.535, must be allocated by the department to the counties as prescribed in NRS 365.550 and 365.560.
3. The money collected as prescribed by NRS 365.200 must be allocated by the department as prescribed by NRS 365.550 and 365.560.
4. The money collected from the tax on aviation fuel must be deposited by the department with the state treasurer for credit to the account for taxes on aviation fuel, which is hereby created as a revolving account.
Sec. 40 The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.
Sec. 41 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 42 This act becomes effective upon passage and approval for the purpose of adopting the regulations necessary to carry out the provisions of this act, and on January 1, 1998, for all other purposes.

30