(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Senate Bill No. 464-Senator Jacobsen
June 12, 1997
____________
Referred to Committee on Taxation
SUMMARY--Revises provisions relating to products made from tobacco other than cigarettes. (BDR 32-943)
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 tobacco products; requiring a wholesale dealer or retail dealer to provide certain information to the department of taxation concerning purchases of products made from tobacco other than cigarettes; requiring the licensing of wholesale dealers and retail dealers of tobacco products other than cigarettes by the department of taxation; clarifying the application of the tax imposed on products made from tobacco other than cigarettes to certain manufacturers or wholesale dealers who are not licensed in this state; 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:
Section 1 Chapter 370 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. Except as otherwise provided in subsection 2, a person shall not engage in the business of a wholesale dealer or retail dealer in this state unless he first obtains a license as a wholesale dealer or retail dealer from the department. A person may be licensed as a wholesale dealer and as a retail dealer.
2. A person who wishes to engage in the business of a retail dealer is not required to obtain a license as a retail dealer pursuant to this section if he is licensed as a retail cigarette dealer pursuant to this chapter.
3. Any person who violates any of the provisions of this section is guilty of a misdemeanor.
Sec. 3. 1. A wholesale dealer or retail dealer shall, not later than 20 days after the end of each month, submit to the department:
(a) A list setting forth each purchase of products made from tobacco, other than cigarettes, that he made during the previous month; and
(b) A copy of the invoice for each such purchase that is required to be provided to him pursuant to NRS 370.470.
2. The department shall maintain a record of the invoices for not less than 3 years after the receipt of those invoices.
3. The department may impose a penalty on a wholesale dealer or retail dealer who violates any of the provisions of subsection 1 as follows:
(a) For the first violation within 7 years, a fine of $1,000.
(b) For a second violation within 7 years, a fine of $5,000.
(c) For a third or subsequent violation within 7 years, revocation of the license of the wholesale dealer or retail dealer.
Sec. 4. NRS 370.440 is hereby amended to read as follows:
370.440As used in NRS 370.440 to 370.503, inclusive, and sections 2 and 3 of this act unless the context otherwise provides:
1. "Retail dealer" means any person [other than a wholesale dealer] who is engaged in selling products made from tobacco, other than cigarettes, to customers.
2. "Sale" means any transfer, exchange, barter, gift, offer for sale, or distribution for consideration of products made from tobacco, other than cigarettes.
3. "Wholesale dealer" means any person who purchases products made from tobacco, other than cigarettes, directly from the manufacturer or who purchases those products from any other person who purchases them from the manufacturer to sell to retail dealers and who serves retail outlets from an established place of business including, but not limited to, the maintenance of a warehouse for the storage and distribution of those products.
4. "Wholesale price" means the established price for which a manufacturer sells a product made from tobacco, other than cigarettes, to a wholesale dealer before any discount or other reduction is made.
Sec. 4.5. NRS 370.450 is hereby amended to read as follows:
370.4501. [There] Except as otherwise provided in subsection 2, there is hereby imposed upon the purchase or possession of products made from tobacco, other than cigarettes, by a customer in this state a tax of 30 percent of the wholesale price of those products.
2. The provisions of subsection 1 do not apply to those products which are [shipped] :
(a) Shipped out of the state for sale and use outside the state [.] ; or
(b) Displayed or exhibited at a trade show, convention or other exhibition in this state by a manufacturer or wholesale dealer who is not licensed in this state.
3. This tax must be collected and paid by the wholesale dealer to the department before the sale of [such] those products to the customer. The wholesale dealer is entitled to retain 2 percent of the taxes collected to cover the costs of collecting and administering the taxes.
4. Any wholesale dealer who sells any [such] of those products without first paying the tax provided for by this section is guilty of a misdemeanor.
Sec. 5. NRS 370.470 is hereby amended to read as follows:
370.470[The]
1. A wholesale dealer must [procure] obtain from each manufacturer or wholesale dealer who is not licensed in this state itemized invoices of all products made from tobacco, other than cigarettes, purchased from and delivered by [that manufacturer.] the manufacturer or wholesale dealer who is not licensed in this state. The wholesale dealer must obtain from the manufacturer or wholesale dealer who is not licensed in this state separate invoices for each purchase made. The invoice must [show the] include:
(a) The name and address of the manufacturer [, the] or wholesale dealer who is not licensed in this state;
(b) The name and address of the wholesale dealer;
(c) The date of the purchase [and the] ; and
(d) The quantity and wholesale price [.] of those products.
2. A retail dealer must obtain from each manufacturer or wholesale dealer who is not licensed in this state itemized invoices of all products made from tobacco, other than cigarettes, purchased from and delivered by that manufacturer or wholesale dealer. The retail dealer must obtain from the manufacturer or wholesale dealer who is not licensed in this state separate invoices for each purchase made. The invoice must include:
(a) The name and address of the manufacturer or wholesale dealer who is not licensed in this state;
(b) The name and address of the retail dealer;
(c) The date of the purchase; and
(d) The quantity and wholesale price of those products.
Sec. 6. NRS 370.510 is hereby amended to read as follows:
370.510The department may make all necessary regulations for the administration and enforcement of this chapter, including:
1. Necessary regulations for the keeping of records to [insure] ensure compliance with this chapter by persons dealing in both taxable and exempt cigarettes.
2. Regulations authorizing persons other than dealers to possess unstamped cigarettes.
3. Regulations relating to the licensing of wholesale dealers and retail dealers.
Sec. 7. The amendatory provisions of this act do not apply to offenses that are committed before December 31, 1997.
Sec. 8. 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. 9. This act becomes effective on December 31, 1997.