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 taxation; 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; making various other changes concerning 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 360.291 is hereby amended to read as follows:
360.291The 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.
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 or reduction of a [sales tax] bond required by the department 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. 2 Chapter 364 of NRS is hereby amended by adding thereto the provisions set forth as sections 3, 4 and 5 of this act.
Sec. 3. 1. An ordinance adopted by a city or county after July 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:
(a) The need for and purpose of the ordinance.
(b) The intended use for the revenue to be obtained pursuant to the ordinance.
2. An agenda that proposes such an ordinance must include a statement indicating whether the proposed ordinance establishes a new tax or fee, or increases an existing tax or fee.
Sec. 4. 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. 5. If an audit is performed pursuant to subsection 2 of section 4 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 4 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. 6. NRS 365.210 is hereby amended to read as follows:
365.2101. No county, city or other political subdivision or municipal corporation may levy or collect any excise, privilege or occupation tax upon or measured by the receipt, storage, sale, distribution, transportation or use of motor vehicle fuel, fuel for jet or turbine-powered aircraft or any other inflammable or combustible liquids except:
(a) The county motor vehicle fuel tax authorized by chapter 373 of NRS.
(b) A tax on fuel for jet or turbine-powered aircraft authorized by NRS 365.203.
(c) Any motor vehicle fuel taxation in effect on January 1, 1935, in any city or town.
[(d) County and city business license taxes where otherwise authorized by law, except as otherwise provided in subsection 2.]
2. After March 25, 1991, no county, city or other political subdivision or municipal corporation responsible for the operation of an airport may impose a new tax or fee upon the sale or distribution of fuel for jet or turbine-powered aircraft except:
(a) A tax on fuel for jet or turbine-powered aircraft authorized by NRS 365.203.
(b) Any fuel flowage fee imposed upon aircraft or organizations servicing aircraft in lieu of rent for use of the terminal, landing fees or other airport charges.
Sec. 7. Section 3 of Senate Bill No. 223 of this session is hereby amended to read as follows:
Sec. 3. NRS 365.210 is hereby amended to read as follows:
365.210 1. No county, city or other political subdivision or municipal corporation may levy or collect any excise, privilege or occupation tax upon or measured by the receipt, storage, sale, distribution, transportation or use of motor vehicle fuel, fuel for jet or turbine-powered aircraft or any other inflammable or combustible liquids except:
(a) The county motor vehicle fuel tax authorized by chapter 373 of NRS.
(b) A tax on fuel for jet or turbine-powered aircraft authorized by NRS 365.203.
(c) A tax on aviation fuel authorized by NRS 365.203.
(d) Any motor vehicle fuel taxation in effect on January 1, 1935, in any city or town.
2. After March 25, 1991, no county, city or other political subdivision or municipal corporation responsible for the operation of an airport may impose a new tax or fee upon the sale or distribution of fuel for jet or turbine-powered aircraft except:
(a) A tax on fuel for jet or turbine-powered aircraft authorized by NRS 365.203.
(b) Any fuel flowage fee imposed upon aircraft or organizations servicing aircraft in lieu of rent for use of the terminal, landing fees or other airport charges.
Sec. 8. On and after October 1, 1997, if an ordinance must be amended to conform to the provisions of section 4 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 4 of this act.
Sec. 9. This act becomes effective on July 1, 1997.