Senate Bill No. 424-Senator O'Connell

May 28, 1997
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Referred to Committee on Taxation

SUMMARY--Provides protection for payers of certain local fees and taxes. (BDR 32-62)

FISCAL NOTE: Effect on Local Government: Yes.
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 local revenue; prohibiting a city or county from considering any tax on fuel or retail sales collected by a private enterprise when calculating certain fees and taxes required to be paid by that enterprise; providing certain rights for the payers of those fees and taxes; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 Chapter 364 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2 An ordinance of a city or county which requires the payment by a private enterprise of a tax or fee measured by the income or revenue of the enterprise, including, without limitation, any fee imposed for the regulation and licensing of a business or occupation:
1. Must not include within gross revenue any tax on fuel or on retail sales which is collected by the enterprise.
2. Must provide that any audit or redetermination of the amount due from the enterprise be made within 3 years after the date on which the report of income or revenue to be reviewed was due.
Sec. 3 If an audit or redetermination is made pursuant to subsection 2 of section 2 of this act:
1. The proprietor of the enterprise has those rights set forth in NRS 360.291 that are applicable to the audit or redetermination.
2. The proprietor must be previously informed of his rights, in writing, including the right to appeal from a determination imposing or increasing liability.
3. The proprietor must be given notice, in writing, of the amount of any interest or penalties required to be paid as a result of the audit or redetermination.
4. The proprietor is entitled to appeal from such an adverse determination:
(a) Resulting from the audit or redetermination, to an officer or board of the city or county; and
(b) Of that officer or board, except as otherwise provided in subsection 5, to the municipal court if the tax or fee is imposed by a city or to the justice's court if the tax or fee is imposed by a county.
5. If the amount determined by the officer or board to be due exceeds the jurisdiction of the municipal or justice's court, or if the municipal or justice's court makes a determination adverse to the proprietor, the proprietor may appeal to the district court.
Sec. 4 On and after October 1, 1997, if an ordinance must be amended to conform to the provisions of sections 2 and 3 of this act, but is not amended by the appropriate local governing body:
1. An audit or redetermination of the amount due from a private enterprise may not be made more than 3 years after the date on which the report of income or revenue to be reviewed was due; and
2. The proprietor of the enterprise has the rights of appeal provided in those sections.

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