(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Senate Bill No. 375-Committee on Commerce and Labor
May 7, 1997
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Referred to Committee on Taxation
SUMMARY--Clarifies authority of Nevada tax commission and makes various other changes concerning taxation. (BDR 32-1050)
FISCAL NOTE: Effect on Local Government: No.
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 taxation; clarifying the authority of the Nevada tax commission; revising certain provisions of the taxpayers' bill of rights; reducing the rate of interest required for amounts paid pursuant to an extension of the time for paying granted by 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 360.090 is hereby amended to read as follows:
360.090 [The] In addition to the other duties prescribed by Title 32 of NRS, the members of the Nevada tax commission shall [have power to] prescribe regulations for carrying on the business of the Nevada tax commission and of the department.
Sec. 2 NRS 360.105 is hereby amended to read as follows:
360.105 1. The department shall:
[1.] (a) In each even-numbered year, submit to the Nevada tax commission, at the meeting conducted by the commission pursuant to NRS 361.455 or, if no such meeting is conducted during that year, at the meeting conducted by the commission pursuant to subsection 2, a copy of the proposed budget for the department and legislation proposed by the department.
(b) Prepare a report for each biennium which details:
[(a)] (1) The problem areas of compliance and collection;
[(b)] (2) Methods for improving taxpayer compliance and tax collections; and
[(c)] (3) Complaints received from taxpayers, including a description of the type and number of complaints received.
[2.] (c) Submit a copy of the report to [the] :
(1) The Nevada tax commission, at its first meeting in each odd-numbered year; and
(2) The legislature on or before January 31 of each odd-numbered year.
2. If the Nevada tax commission does not meet pursuant to NRS 361.455 in an even-numbered year, it shall meet during June of that year to accept the proposed budget for the department and legislation proposed by the department.
Sec. 3 NRS 360.220 is hereby amended to read as follows:
360.220 The department shall [have the power to] require governing bodies of local governments, as defined in NRS 354.474, to submit a budget estimate of the local government expenses and income for the current year, and for the budget year, and a compilation of the actual local government expenses and income for the last completed year, in such detail and form as may be required by the department, after hearing the advice and recommendations of [its] the committee on local government [advisory committee.] finance.
Sec. 4 NRS 360.245 is hereby amended to read as follows:
360.245 1. All decisions of the executive director or other officer of the department made pursuant to subsection 2 of NRS 360.130 are final unless appealed to the Nevada tax commission as provided by law. Any natural person, partnership, corporation, association or other business or legal entity may so appeal by filing a notice of appeal with the department within 20 days after service of the decision upon that person or business or legal entity.
2. Service of the decision must be made personally or by certified mail. If service is made by certified mail:
(a) The decision must be enclosed in an envelope which is addressed to the taxpayer at his address as it appears in the records of the department.
(b) It is deemed to be complete at the time the appropriately addressed envelope containing the decision is deposited with the United States Postal Service.
3. The Nevada tax commission, as head of the department, may review all other decisions made by the executive director and may reverse, affirm or modify them.
4. A decision of the Nevada tax commission is a final decision for the purposes of judicial review. Notwithstanding the provisions of any other specific statute, a political subdivision of this state that is aggrieved by such a decision is entitled to judicial review of that decision. The executive director or any other employee or representative of the department shall not seek judicial review of such a decision.
Sec. 5 NRS 360.270 is hereby amended to read as follows:
360.270 The enumeration of the powers in NRS 360.200 to 360.265, inclusive, shall not be considered as excluding the exercise of any necessary and proper power and authority of the Nevada tax commission or the department [.] , as approved by the Nevada tax commission.
Sec. 6 NRS 360.291 is hereby amended to read as follows:
360.291 The legislature hereby declares that each taxpayer has the right:
1. To be treated by officers and employees of the department with courtesy, fairness, uniformity, consistency and common sense.
2. To a prompt response from the department to each communication from the taxpayer.
3. To provide the minimum documentation and other information as may reasonably be required by the department to carry out its duties.
4. To written explanations of common errors, oversights and violations that taxpayers experience and instructions on how to avoid such problems.
5. To be informed by the department whenever its officer, employee or agent determines that the taxpayer is entitled to an exemption or has been taxed or assessed more than is required by law.
6. To written instructions indicating how the taxpayer may petition for:
(a) An adjustment of an assessment; or
(b) A refund or credit for overpayment of taxes, interest or penalties.
7. To recover an overpayment of taxes promptly upon the final determination of such an overpayment.
8. To obtain specific advice from the department concerning taxes imposed by the state.
9. In any meeting with the department, including an audit, conference, interview or hearing:
(a) To an explanation by an officer or employee of the department that describes the procedures to be followed and the taxpayer's rights thereunder;
(b) To be represented by himself or anyone who is otherwise authorized by law to represent him before the department;
(c) To make an audio recording using the taxpayer's own equipment and at the taxpayer's own expense; and
(d) To receive a copy of any document or audio recording made by or in the possession of the department relating to the determination or collection of any tax for which the taxpayer is assessed, upon payment of the actual cost to the department of making the copy.
10. To a full explanation of the department's authority to assess a tax or to collect delinquent taxes, including the procedures and notices for review and appeal that are required for the protection of the taxpayer. An explanation which meets the requirements of this section must also be included with each notice to a taxpayer that an audit will be conducted by the department.
11. To the immediate release of any lien which the department has placed on real or personal property for the nonpayment of any tax when:
(a) The tax is paid;
(b) The period of limitation for collecting the tax expires;
(c) The lien is the result of an error by the department;
(d) The department determines that the taxes, interest and penalties are secured sufficiently by a lien on other property;
(e) The release or subordination of the lien will not jeopardize the collection of the taxes, interest and penalties;
(f) The release of the lien will facilitate the collection of the taxes, interest and penalties; or
(g) The department determines that the lien is creating an economic hardship.
12. To the release of a sales tax bond in accordance with applicable statutes and regulations.
13. To be free from investigation and surveillance by an officer, agent or employee of the department for any purpose that is not directly related to the administration of the provisions of this Title.
14. To be free from harassment and intimidation by an officer, agent or employee of the department for any reason.
Sec. 7 NRS 360.292 is hereby amended to read as follows:
360.292 The executive director shall cause:
1. To be prepared in simple nontechnical terms a pamphlet setting forth the Taxpayers' Bill of Rights and a description of the regulations adopted by the department pursuant to NRS 360.2915.
2. A copy of the pamphlet to be distributed [to] :
(a) To each taxpayer on record with the department and to any other person upon request [.] ; and
(b) With each notice to a taxpayer that an audit will be conducted by the department.
Sec. 8 NRS 360.295 is hereby amended to read as follows:
360.295 Except as otherwise specifically provided in this Title, if the department grants an extension of the time for paying any amount required to be paid under this Title, a person who pays the amount within the period for which the extension is granted shall pay, in addition to the amount owing, interest at the rate of [1.5] 1 percent per month from the date the amount would have been due without the extension until the date of payment.
Sec. 9 NRS 361.410 is hereby amended to read as follows:
361.410 1. No taxpayer [shall] may be deprived of any remedy or redress in a court of law relating to the payment of taxes, but all such actions [shall] must be for redress from the findings of the state board of equalization, and no action [shall] may be instituted upon the act of a county assessor or of a county board of equalization or the Nevada tax commission until the state board of equalization has denied complainant relief. [Nothing herein shall be deemed] This subsection must not be construed to prevent a proceeding in mandamus to compel the placing of nonassessed property on the assessment roll.
2. The Nevada tax commission or the department, in that name and in proper cases, may sue and be sued, and the attorney general shall prosecute and defend [the same,] all such cases, but the burden of proof [shall be] is upon the complainant to show by clear and satisfactory evidence that any valuation established by the Nevada tax commission or the department or equalized by the state board of equalization is unjust and inequitable.
3. Except as otherwise provided in subsection 4, the executive director or any other employee or representative of the department shall not seek judicial review of a decision made by the Nevada tax commission or the state board of equalization.
4. The executive director or any other employee or representative of the department may seek judicial review of a decision made by the state board of equalization if the case was not originally instituted upon the act of a county assessor, a county board of equalization or the Nevada tax commission.
Sec. 10 This act becomes effective on July 1, 1997.