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, 3 and 4 of this act.
Sec. 2. An ordinance adopted by a city or county after October 1, 1997, which imposes or increases a tax or fee on a private enterprise that is 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, must include a statement of:
1. The need for and purpose of the ordinance.
2. The intended use for the revenue to be obtained pursuant to the ordinance.
3. The estimated adverse and beneficial economic effects of the ordinance on the enterprises subject thereto.
4. The estimated cost to the city or county to enforce the ordinance.
Sec. 3. 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, must:
1. Exclude from gross revenue any tax on fuel or on retail sales which is collected by the enterprise, and require the proprietor of the enterprise to maintain adequate accounting records and supporting documentation for determining the relevant sums.
2. Provide that any audit of the amount due from the enterprise must not include any period for the licensing of the business ending more than 3 years before the date of the audit, unless the enterprise has been operating without such a license or the auditor has reason to believe that the enterprise has made a fraudulent or material misstatement of its revenue.
3. Provide a procedure for the proprietor of the enterprise to obtain a review of the results of an audit performed pursuant to subsection 2. To the extent practicable, the procedure must:
(a) Require the auditor to disclose the results of the audit to the proprietor, discuss any relevant issues that have not previously been resolved and attempt to resolve those issues.
(b) If those issues are not resolved through compliance with paragraph (a):
(1) Authorize the proprietor to prepare documentation of those issues and submit the documentation with a copy of the final audit report to an administrative officer responsible for the enforcement of the ordinance; and
(2) Require the administrative officer:
(I) Within 7 days after receiving the documentation, to acknowledge that receipt; and
(II) Within 30 days after receiving the documentation, to respond to the proprietor regarding those issues.
(c) If those issues are not resolved through compliance with paragraph (b), require:
(1) The administrative officer to submit the documentation to the chief administrative officer of the administrative agency responsible for the enforcement of the ordinance and notify the proprietor that the matter is being reviewed by the chief administrative officer; and
(2) The chief administrative officer, within 60 days after receipt of the documentation by the administrative officer pursuant to paragraph (b), to review the documentation and inform the proprietor of his decision regarding the resolution of those issues.
(d) If the proprietor is not satisfied with the resolution of those issues pursuant to paragraph (c), authorize the proprietor to appeal the matter to a board, hearing officer or other person designated by the city or county.
(e) If the proprietor is not satisfied with the resolution of those issues pursuant to paragraph (d), authorize the proprietor, except as otherwise provided in this paragraph, to appeal the matter 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. If the amount in controversy 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 the matter to the district court.
Sec. 4. If an audit is performed pursuant to subsection 2 of section 3 of this act:
1. The proprietor of the enterprise has those rights set forth in NRS 360.291 that are applicable to the audit.
2. The proprietor must be informed of his rights in writing, including his rights relating to the procedure required by subsection 3 of section 3 of this act.
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.
Sec. 5. On and after October 1, 1997, if an ordinance must be amended to conform to the provisions of section 3 of this act, but is not amended by the appropriate local governing body:
1. An audit of the amount due from a private enterprise must not include any period for the licensing of the business ending more than 3 years before the date of the audit, unless the enterprise has been operating without such a license or the auditor has reason to believe that the enterprise has made a fraudulent or material misstatement of its revenue.
2. The proprietor of the enterprise may obtain a review of the results of the audit in the manner required by subsection 3 of section 3 of this act.