(On Behalf of the Department of Motor Vehicles
and Public Safety)
May 30, 1997
____________
Referred to Committee on Taxation
SUMMARY--Makes various changes relating to tax on special fuel. (BDR 32-589)
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 taxes; requiring that the tax imposed on certain special fuel be collected by special fuel dealers; 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:
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Section 1 Chapter 366 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 8, inclusive, of this act.
Sec. 2 "Special fuel dealer" means a person who sells compressed natural gas or liquefied petroleum gas and delivers any part thereof into the tank for the supply of fuel of a motor vehicle that is not owned or controlled by him.
Sec. 3 A special fuel dealer shall not collect the tax on special fuel from a purchaser who is exempt from the tax on special fuel pursuant to NRS 366.200.
Sec. 4 1. On or before the last day of each month, a special fuel dealer shall file with the department a tax return for the preceding month, regardless of the amount of tax collected, on a form prescribed by the department.
2. The tax return must:
(a) Include information required by the department for the administration and enforcement of this chapter; and
(b) Be accompanied by a remittance, payable to the department, for the amount of the tax due.
Sec. 5 1. If the department determines that the failure of a special fuel supplier, special fuel dealer or special fuel user to file a timely return or pay a tax or fee imposed pursuant to this chapter is due to circumstances beyond his control and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, the department may relieve the supplier, dealer or user of all or part of any penalty or interest due.
2. A special fuel supplier, special fuel dealer or special fuel user who requests relief from the payment of a penalty or interest must submit to the department a statement, signed under penalty of perjury, that sets forth the facts upon which he bases his claim for relief.
Sec. 6 The department may:
1. Enter into a written agreement with a special fuel supplier, special fuel dealer or special fuel user for the payment of delinquent taxes, interest or penalties imposed pursuant to this chapter.
2. Adopt regulations providing for:
(a) The payment of delinquent taxes, interest or penalties upon the execution of a written agreement between the department and a special fuel supplier, special fuel dealer or special fuel user; and
(b) The cancellation of such an agreement if the special fuel supplier, special fuel dealer or special fuel user becomes delinquent in his payment of the delinquent taxes, interest or penalties owed to the department pursuant to the provisions of this chapter.
Sec. 7 If a check submitted to the department for payment of the taxes imposed pursuant to this chapter is dishonored upon presentment for payment, the department may require that any future payments be made by cashier's check, traveler's check, money order or cash.
Sec. 8 1. A special fuel user may, in lieu of causing a motor vehicle that has a declared gross weight in excess of 26,000 pounds to be licensed pursuant to the provisions of NRS 366.220, obtain a temporary permit for special fuel from a vendor authorized to issue permits pursuant to NRS 481.051 before entering the state or immediately upon entering the state. The fee for a temporary permit for special fuel is $30 and is not refundable.
2. Except as otherwise provided in subsection 3, a temporary permit for special fuel authorizes the operation of such a motor vehicle over the highways of this state from point of entry to point of exit for not more than 24 consecutive hours.
3. The department may issue to the owner or operator of a common motor carrier of passengers a temporary permit for special fuel that authorizes the operation of the motor carrier for not more than 120 consecutive hours.
4. The department may adopt regulations relating to the issuance of a temporary permit for special fuel pursuant to this section.
Sec. 9 NRS 366.020 is hereby amended to read as follows:
366.020As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 366.025 to 366.100, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.
Sec. 10 NRS 366.140 is hereby amended to read as follows:
366.140 1. Every special fuel supplier, special fuel dealer or special fuel user and every person transporting or storing special fuel in this state shall keep such records, receipts, invoices and other pertinent papers with respect thereto as the department requires.
2. [These] The records, receipts, invoices and other pertinent papers used in the preparation of a report or return required pursuant to this chapter must be preserved [intact for 36 months.
3. Any special fuel supplier, special fuel exporter or special fuel user who:
(a) Fails to file the returns required pursuant to this chapter; or
(b) Files the returns required pursuant to this chapter and indicates that no taxable fuel was sold, distributed or used or that he conducted no taxable operation,
shall keep the records required by this section for 7 years after their making or until the department gives him written authorization to destroy the records.
4.] for 4 years after the report or return is filed with the department.
3. The records, receipts, invoices and other pertinent papers must be available at all times during business hours to the department or its authorized agents.
Sec. 11 NRS 366.150 is hereby amended to read as follows:
366.150 1. The department or its authorized agents may:
(a) Examine the books, papers, records and equipment of any special fuel supplier, special fuel dealer, special fuel user or person transporting or storing special fuel as defined in NRS 366.060; and
(b) Investigate the character of the disposition which any person makes of that fuel,
to determine whether all excise taxes due pursuant to this chapter are being properly reported and paid.
2. The fact that [such] those books, papers, records and equipment are not maintained in this state at the time of demand [shall] does not cause the department to lose any right of examination pursuant to this chapter [when and where] at the time and place those books, papers, records and equipment become available.
Sec. 12 NRS 366.160 is hereby amended to read as follows:
366.160 1. All records of mileage operated, origin and destination points within this state, equipment operated in this state, gallons or cubic feet consumed, and tax paid must at all reasonable times be open to the public.
2. All supporting schedules, invoices and other pertinent papers relative to the business affairs and operations of any special fuel supplier , special fuel dealer or special fuel user, and any information obtained by an investigation of the records and equipment of any special fuel supplier , special fuel dealer or special fuel user, shall be deemed confidential and must not be revealed to any person except as necessary to administer this chapter or as otherwise provided by law.
Sec. 13 NRS 366.170 is hereby amended to read as follows:
366.170 The department may, upon request from officials to whom is entrusted the enforcement of the special fuel tax law of any other state, the District of Columbia, the United States, its territories or possessions, or any foreign country, forward to those officials any information which it may have relative to the receipt, storage, delivery, sale, use or other disposition of special fuel by any special fuel supplier, special fuel exporter , special fuel dealer or special fuel user, if [,] such other state, district, territory or possession furnishes similar information to this state.
Sec. 14 NRS 366.199 is hereby amended to read as follows:
366.199 1. Except as otherwise provided in subsection 2, a person shall not import, sell, distribute, use or store special fuel in this state to which dye has not been added pursuant to NRS 366.203 or for which the tax imposed pursuant to NRS 366.190 has not been paid.
2. A special fuel supplier or special fuel dealer may import or store special fuel which has not been dyed and for which the tax imposed pursuant to NRS 366.190 has not been paid.
Sec. 15 NRS 366.203 is hereby amended to read as follows:
366.2031. Special fuel , other than compressed natural gas, liquefied petroleum gas or kerosene, which is exempt from the tax pursuant to subsection 1 of NRS 366.200 must be dyed before it is removed for distribution from a rack. The dye added to the exempt special fuel must be of the color and concentration required by the regulations adopted by the Secretary of the Treasury pursuant to 26 U.S.C. § 4082.
2. A person shall not operate or maintain on any highway in this state a motor vehicle which contains in the fuel tank of that vehicle special fuel which has been dyed.
3. There is a rebuttable presumption that all special fuel which has not been dyed and which is sold or distributed in this state is for the purpose of propelling a motor vehicle.
Sec. 16 NRS 366.207 is hereby amended to read as follows:
366.2071. Except as otherwise provided in subsections 2 and 3, each special fuel supplier who sells or distributes special fuel to which dye has not been added shall, at the time the special fuel is purchased, collect the tax imposed pursuant to NRS 366.190.
2. A special fuel supplier may sell special fuel to a purchaser without collecting the tax imposed pursuant to NRS 366.190 if the purchaser of the special fuel:
(a) Has been issued a permit by the department pursuant to NRS 366.397; and
(b) Elects to defer payment of the tax.
3. A special fuel supplier shall not collect the tax imposed pursuant to NRS 366.190 if the purchaser of the special fuel is:
(a) A special fuel supplier; [or]
(b) A special fuel exporter [.] ; or
(c) A special fuel dealer.
4. A special fuel supplier who sells special fuel to any other special fuel supplier or special fuel dealer shall keep such records of the transaction as the department may require. The department shall adopt regulations setting forth:
(a) The records which must be kept by the special fuel supplier pursuant to this subsection; and
(b) The period for which those records must be kept by the special fuel supplier.
5. If, within a period of 6 months, a person purchases not less than 200 gallons of special fuel in this state which is used for a purpose that is exempt from the payment of the tax on special fuel pursuant to NRS 366.200, he may apply to the department for a refund in the manner prescribed in subsection 6 of NRS 366.650.
Sec. 17 NRS 366.220 is hereby amended to read as follows:
366.220 1. Except as otherwise provided in this chapter, it is unlawful for any special fuel supplier , special fuel dealer or special fuel user to sell or use special fuel within this state unless the special fuel supplier , special fuel dealer or special fuel user is the holder of a special fuel supplier's , special fuel dealer's or special fuel user's license issued to him by the department.
2. The department may adopt regulations relating to the issuance of any special fuel supplier's , special fuel dealer's or special fuel user's license and the collection of fees therefor.
Sec. 18 NRS 366.240 is hereby amended to read as follows:
366.240 1. The department shall:
(a) Upon receipt of the application and bond in proper form, issue to the applicant a special fuel supplier's or special fuel dealer's license.
(b) Upon receipt of the application in proper form, issue to the applicant a special fuel user's license.
2. The department may refuse to issue a special fuel supplier's , special fuel dealer's license or special fuel user's license to any person:
(a) Who formerly held a special fuel [supplier's] license in this state, any other state, the District of Columbia, the United States, a territory or possession of the United States or any foreign country which, before the time of filing the application, has been revoked for cause;
(b) Who applies as a subterfuge for the real party in interest whose license, before the time of filing the application, has been revoked for cause;
(c) Who, if he is a special fuel supplier [,] or special fuel dealer, neglects or refuses to furnish a bond as required by this chapter;
(d) Who is in default in the payment of a tax on special fuel in this state, any other state, the District of Columbia, the United States, [its territories or possessions,] a territory or possession of the United States or any foreign country; or
(e) Upon other sufficient cause being shown.
Sec. 19 NRS 366.250 is hereby amended to read as follows:
366.250 Any applicant whose application for a special fuel supplier's license , special fuel dealer's license or special fuel user's license has been denied may petition the department for a hearing. The department shall:
1. Grant the applicant a hearing.
2. Provide to the person, not less than 10 days before the hearing, written notice of the time and place of the hearing.
Sec. 20 NRS 366.260 is hereby amended to read as follows:
366.260 1. Each special fuel supplier's license or special fuel dealer's license is valid until suspended or revoked for cause or otherwise canceled.
2. Each special fuel user's license is valid for the calendar year unless suspended or revoked for cause or otherwise canceled.
3. The license of a special fuel supplier , special fuel dealer or special fuel user is not transferable.
Sec. 21 NRS 366.270 is hereby amended to read as follows:
366.270 Whenever any person ceases to be a special fuel supplier , special fuel dealer or special fuel user within the state by reason of discontinuance, sale or transfer of his business, he shall:
1. Notify the department in writing at the time the discontinuance, sale or transfer takes effect. The notice must give the date of discontinuance and, in the event of a sale, the date thereof and the name and address of the purchaser or transferee.
2. Surrender to the department the license issued to him by the department.
3. If he is a special fuel user, file a quarterly tax return and pay all taxes, interest and penalties pursuant to NRS 366.370 and 366.380, except that both the filing and payment are due on or before the last day of the month following the month of discontinuance, sale or transfer of the business.
4. If he is a special fuel supplier, file a monthly tax return and pay all taxes, interest and penalties pursuant to NRS 366.370 and 366.383 on or before the last day of the month following the month of discontinuance, sale or transfer of the business.
5. If he is a special fuel dealer, file a monthly tax return and pay all taxes, interest and penalties pursuant to NRS 366.370 and section 4 of this act on or before the last day of the month following the month of discontinuance, sale or transfer of the business.
Sec. 22 NRS 366.350 is hereby amended to read as follows:
366.350 1. The department may revoke the license of any special fuel dealer, special fuel supplier or special fuel user for reasonable cause.
2. Before revoking a license, the department shall send a notice by registered or certified mail to the licensee at his last known address ordering him to appear before the department at a time not less than 10 days after the mailing of the notice and show cause why the license should not be revoked.
Sec. 23 NRS 366.360 is hereby amended to read as follows:
366.360 1. The department shall cancel any license to act as a special fuel supplier , special fuel dealer or [a] special fuel user immediately upon the surrender thereof by the holder.
2. If a surety has lodged with the department a written request to be released and discharged of liability, the department shall immediately notify the special fuel supplier or special fuel dealer who furnished the bond, and unless he files a new bond as required by the department within 30 days or makes a deposit in lieu thereof as provided in NRS 366.550, the department may cancel his license.
3. If a special fuel supplier or special fuel dealer becomes delinquent in the payment of excise taxes as prescribed by this chapter to the extent that his liability exceeds the total amount of bond furnished by him, the department may cancel his license immediately.
Sec. 24 NRS 366.370 is hereby amended to read as follows:
366.370 1. Except as otherwise provided in [subsection 4,] subsections 4 and 5 and NRS 366.380, the excise tax imposed by this chapter with respect to the use or sale of special fuel during any calendar quarter is due on or before the last day of the first month following the quarterly period to which it relates.
2. If the due date falls on a Saturday, Sunday or legal holiday, the next business day is the final due date.
3. Payment shall be deemed received on the date shown by the cancellation mark stamped by the United States Postal Service or the postal service of any other country upon an envelope containing payment properly addressed to the department.
4. A special fuel supplier shall pay the tax imposed by this chapter at the time he files his monthly tax return pursuant to NRS 366.383.
5. A special fuel dealer shall pay the tax imposed by this chapter at the time he files his monthly tax return pursuant to section 4 of this act.
Sec. 25 NRS 366.380 is hereby amended to read as follows:
366.380 1. [On] Except as otherwise provided in subsection 2, on or before the last day of January, April, July and October in each year, each special fuel user shall file with the department a quarterly tax return for the preceding quarter, regardless of the amount of excise tax due, on a form prescribed by the department.
2. A special fuel user may, upon the issuance or renewal of a special fuel license, request to file a tax return annually with the department. If the request is approved by the department, the special fuel user shall file with the department a tax return for the preceding year on or before the last day of January of each year, regardless of the amount of excise tax due, on a form prescribed by the department.
3. The return must show such information as the department may reasonably require for the proper administration and enforcement of this chapter.
Sec. 26 NRS 366.390 is hereby amended to read as follows:
366.390 1. [The] Except as otherwise provided in subsection 3, the department shall allow each special fuel supplier or special fuel dealer to retain an amount equal to 2 percent of the amount of the tax collected by the special fuel supplier or special fuel dealer as a fee for making the collection.
2. If the special fuel for which the tax was collected by the special fuel supplier is sold to a purchaser who has been issued a permit pursuant to NRS 366.397, the special fuel 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 NRS 366.397, the purchaser who sells the special fuel to the subsequent purchaser shall distribute to that subsequent purchaser one-half of the fee he received from the special fuel supplier.
3. A special fuel supplier who fails to submit a tax return pursuant to NRS 366.383 or a special fuel dealer who fails to submit a tax return pursuant to section 4 of this act is not entitled to the fee authorized pursuant to subsection 1 for any month for which a tax return is not filed.
Sec. 27 NRS 366.395 is hereby amended to read as follows:
366.395 1. Any person who fails to pay any excise tax, except taxes assessed pursuant to the provisions of NRS 366.405, within the time prescribed by this chapter shall pay , in addition to the tax , a penalty of [10 percent of the amount thereof,] :
(a) If the amount of the tax owed is $50 or more, 10 percent of the amount owed or $50, whichever is greater; or
(b) If the amount of the tax owed is less than $50, 10 percent of the amount owed,
plus interest on the amount of the tax at the rate of 1 percent per month or fraction thereof, from the date the tax became finally due until the date of payment.
2. [Any person who fails to submit a quarterly or monthly tax return as required by the provisions of NRS 366.380 or 366.383, respectively, or a statement as required by NRS 366.387, shall pay a penalty of $50 for each delinquent tax return, in addition to any other penalty provided by the provisions of this chapter.
3.] A tax return or statement is considered delinquent when it has not been received by the department by the date the tax return or statement is due, as prescribed by the provisions of this chapter.
Sec. 28 NRS 366.405 is hereby amended to read as follows:
366.405 1. If the department is not satisfied with the records or statements of, or with the amount of tax paid by, any person pursuant to the provisions of this chapter, or the department does not receive a return from a person who is required to file a return pursuant to this chapter, it may make an additional or estimated assessment of tax due from that person based upon any information available to it. Every additional or estimated assessment bears interest at the rate of [2] 1 percent per month, or fraction thereof, from the date the [additional assessment is imposed] tax became due until it is paid.
2. If [any part of a deficiency for which] an additional assessment is imposed , [is found to be caused by negligence or intentional disregard of the provisions of this chapter or the regulations of the department adopted pursuant to those provisions,] a penalty of 10 percent of the amount of the additional assessment must be added thereto. If any part of the deficiency is found to be caused by fraud or an intent to evade the provisions of this chapter or the regulations adopted pursuant to those provisions, a penalty of 25 percent of the amount of the additional assessment must be added thereto.
3. The department shall give the person written notice of the additional assessment. The notice may be served personally or by mail in the manner prescribed by Rule 5 of the Nevada Rules of Civil Procedure addressed to the person at his address as it appears in the records of the department. [Except for reports filed pursuant to subsection 3 of NRS 366.140, every] Every notice of additional assessment proposed to be assessed pursuant to the provisions of this chapter must be served within [36 months] 4 years after the claimed erroneous report was filed.
4. If a special fuel user , special fuel dealer or special fuel supplier refuses or fails to make available to the department, upon request, such records, reports or other information as determined by the department to be necessary to enable it to determine that the amount of tax paid by the user or supplier is correct, the additional or estimated assessment made pursuant to the provisions of this section is presumed to be correct and the burden is upon the person challenging the assessment to establish that it is erroneous.
5. Any person against whom an assessment has been made pursuant to the provisions of this section may petition the department in writing for a redetermination within 30 days after service of the notice. If a petition is not filed with the department within that period, the assessment becomes final.
6. If a petition for redetermination is filed within 30 days, the department shall reconsider the assessment and send the petitioner, by certified mail, notice of its decision and the reasons therefor. A petitioner aggrieved by the department's decision may appeal the decision by submitting a written request to the department for a hearing not later than 30 days after notice of the decision was mailed by the department. The department shall schedule an administrative hearing and provide to the petitioner, not less than 10 days before the hearing, notice of the time and place of the hearing. The department may continue the hearing as it deems necessary.
7. The order of the department upon a petition becomes final 30 days after service of notice thereof. [If any additional assessment is not paid on or before the date it becomes final, there must be added thereto in addition to any other penalty provided for in this chapter a penalty of 10 percent of the amount of the additional assessment.]
Sec. 29 NRS 366.540 is hereby amended to read as follows:
366.540 1. The tax provided for by this chapter must be paid by special fuel suppliers , special fuel dealers and special fuel users. A special fuel supplier or special fuel dealer shall pay to the department the excise tax he collects from purchasers of special fuel with the monthly return filed pursuant to NRS 366.383 [.] or section 4 of this act, respectively. The tax paid by a special fuel user must be computed by multiplying the tax rate per gallon provided in this chapter by the [difference between the number of gallons purchased by the special fuel user and] amount that the number of gallons of special fuel consumed by [him] the special fuel user in the propulsion of motor vehicles on the highways of this state [.] exceeds the number of gallons of special fuel purchases by him.
2. Except as otherwise provided in subsection 3, in computing the amount of tax on special fuel a special fuel supplier owes to the department, the special fuel supplier may deduct from the amount due pursuant to subsection 1 any amount which is due but has not been paid by a purchaser who is authorized by the department to defer payment of the tax pursuant to NRS 366.397. If such a deduction is claimed, the claim must identify the purchaser and the amount of taxes that he failed to pay.
3. A special fuel supplier shall not deduct from the amount he owes the department pursuant to subsection 1 any amount which has not been paid by a person whose permit to defer the payment of the tax has been revoked pursuant to subsection 4 of NRS 366.397 if, before the special fuel was purchased, the special fuel supplier had been notified by the department pursuant to subsection 5 of NRS 366.397 that it had revoked the purchaser's permit.
Sec. 30 NRS 366.550 is hereby amended to read as follows:
366.550 1. An applicant for or holder of a special fuel supplier's or special fuel dealer's license shall provide a bond executed by him as principal, and by a corporation qualified pursuant to the laws of this state as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all of the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and interest due to the State of Nevada. The total amount of the bond or bonds of any holder of a special fuel supplier's or special fuel dealer's license must be fixed by the department at not less than three times the estimated maximum monthly tax, determined in such a manner as the department deems proper, but the amount must not be less than $1,000. If the department determines that a person is habitually delinquent in the payment of amounts due to the department, 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.
2. No recovery on any bond, nor the execution of any new bond, nor the suspension or revocation of any special fuel supplier's or special fuel dealer's license affects the validity of any bond.
3. In lieu of a bond or bonds , an applicant for or holder of a special fuel supplier's or special fuel dealer's license may deposit with the state treasurer, under such terms 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.
4. If the holder of a special fuel supplier's or special fuel dealer's license is required to provide a bond of more than $5,000, the department may reduce the requirements for the bond to not less than $5,000 upon the supplier's or dealer's faithful performance of all the requirements of this chapter and the punctual payment of all taxes due the State of Nevada for the 3 preceding calendar years.
5. The department shall immediately reinstate the original requirements for a bond for a holder of a special fuel supplier's or special fuel dealer's license upon his:
(a) Lack of faithful performance of the requirements of this chapter; or
(b) Failure to pay punctually all taxes, fees, penalties and interest due the State of Nevada.
Sec. 31 NRS 366.560 is hereby amended to read as follows:
366.560 Whenever any special fuel user , special fuel dealer or special fuel supplier is delinquent in the payment of any obligation imposed pursuant to this chapter, the department may transmit notice of the delinquency to the attorney general or the district attorney of the proper county, who shall proceed at once, by appropriate legal action, to collect all money due the state from the special fuel user , special fuel dealer or special fuel supplier.
Sec. 32 NRS 366.650 is hereby amended to read as follows:
366.650 1. If illegally or through error the department collects or receives any excise tax, penalty or interest imposed pursuant to this chapter, the excise tax, penalty or interest must be refunded to the person who paid the tax, penalty or interest. Except as otherwise provided in NRS 360.235, a written application for a refund, stating the specific grounds therefor, must be made within 36 months after the date of payment, whether or not the excise tax, penalty or interest was paid voluntarily or under protest.
2. Refunds must be made to a successor, assignee, estate or heir of the person if written application is made within the time limit.
3. Any amount determined to be refundable by the department must be refunded or credited to any amounts then due from the special fuel supplier [.] or special fuel dealer.
4. All amounts refunded pursuant to the provisions of this chapter must be paid from the state highway fund on claims presented by the department, approved by the state board of examiners, and allowed and paid as other claims against the state are allowed and paid.
5. Licensed special fuel users operating interstate who can prove to the satisfaction of the department that their special fuel purchases in Nevada exceed their use over the highways of this state for a certain quarter must apply credit to any excise taxes, penalties or interest required by this chapter or fees, taxes, penalties or interest applicable pursuant to chapter 706 of NRS and any balance may be refunded or credited to succeeding reports.
6. A person who wishes to apply for a refund of the tax on special fuel paid by him pursuant to subsection 5 of NRS 366.207 must:
(a) Submit an application for the refund on a form prescribed by the department; and
(b) Establish to the satisfaction of the department that within a period of 6 months he purchased not less than 200 gallons of special fuel in this state which was used for a purpose that is exempt from the tax on special fuel pursuant to NRS 366.200.
The department shall refund to an applicant who complies with the provisions of this subsection a refund in an amount equal to the tax paid by that person when he purchased the special fuel.
Sec. 33 NRS 366.660 is hereby amended to read as follows:
366.660 1. No injunction, writ of mandate or other legal or equitable process [shall] may issue in any suit, action or proceeding in any court against this state or any officer thereof to prevent or enjoin the collection pursuant to this chapter of any excise tax or other amount required to be collected.
2. After payment of any such excise tax or other amount under protest, verified and setting forth the grounds of objection to the legality thereof, filed with the department at the time of payment of the tax or other amount protested, the special fuel supplier , special fuel dealer or special fuel user making the payment may bring an action against the state treasurer in the district court in and for Carson City for the recovery of the amount so paid under protest.
Sec. 34 NRS 366.715 is hereby amended to read as follows:
366.715 1. The department may seal a special fuel pump of a special fuel dealer or the metered pipes and hoses of a rack if [a] the special fuel dealer or special fuel supplier:
(a) Becomes delinquent in payment of any amount due pursuant to the provisions of this chapter;
(b) Operates without the license required by the provisions of this chapter; or
(c) Operates without the bond or cash deposit required by the provisions of this chapter.
2. [The] A special fuel pump of a special fuel dealer or the metered pipes and hoses of the rack may be sealed until all required reports are filed, the tax, penalties and interest are paid in full, the required license is obtained and the bond or cash deposit is provided.
3. Before sealing the fuel pump or metered pipes and hoses of a rack, the department must send a notice by registered or certified mail to the licensed special fuel supplier or special fuel dealer at his last known address ordering him to appear before the department at a time not less than 10 days after the mailing of the notice and show cause why the fuel pump or the metered pipes and hoses of the rack should not be sealed.
Sec. 35 NRS 366.720 is hereby amended to read as follows:
366.720 Any person who:
1. Fails or refuses to pay the tax imposed by this chapter;
2. Engages in business in this state as a special fuel user , special fuel dealer or special fuel supplier without being the holder of a license to engage in that business;
3. Fails to make any of the reports required by this chapter;
4. Makes any false statement in any application, report or statement required by this chapter;
5. Refuses to permit the department or any authorized agent to examine records as provided by this chapter;
6. Fails to keep proper records of quantities of special fuel received, produced, refined, manufactured, compounded, used or delivered in this state as required by this chapter; or
7. Makes any false statement in connection with an application for the refund of any money or taxes provided in this chapter,
is guilty of a misdemeanor.
Sec. 36 The amendatory provisions of this act do not apply to offenses that are committed before January 1, 1998.
Sec. 37 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. 38. 1. This section becomes effective upon passage and approval.
2. For the purpose of adopting the regulations necessary to carry out the provisions of this act, sections 1 to 37, inclusive, of this act become effective upon passage and approval. For all other purposes:
(a) Sections 1 and 8 of this act become effective on October 1, 1997.
(b) Sections 2 to 7, inclusive, and 9 to 37, inclusive, of this act become effective on January 1, 1998.