Assembly Bill No. 204–Committee on Taxation

 

(On Behalf of the Governor)

 

February 26, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Provides revenue in support of state budget. (BDR 32‑1210)

 

FISCAL NOTE:  Effect on Local Government: No.

                          Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to state finances; temporarily increasing the amount of certain taxes on businesses, liquor and cigarettes and certain gaming license fees; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 364A.140 is hereby amended to read as

1-2  follows:

1-3  364A.140  1.  A tax is hereby imposed upon the privilege of

1-4  conducting business in this state. Except as otherwise provided in

1-5  this section, the tax for each calendar quarter is due on the last day

1-6  of the quarter and must be paid on or before the last day of the

1-7  month immediately following the quarter on the basis of the total

1-8  number of equivalent full-time employees employed by the business

1-9  in the quarter.

1-10      2.  If the tax required to be paid by a business for a calendar

1-11  quarter pursuant to subsection 1 is less than $25, the business may

1-12  submit a written request to the Department to pay the tax annually

1-13  for each calendar quarter of a fiscal year ending June 30. Upon

1-14  approval of the request, the tax becomes due on the last day of the

1-15  fiscal year and must be paid on or before the last day of July

1-16  immediately following the fiscal year. If a business ceases operation

2-1  before the end of the fiscal year, the tax becomes due on the date on

2-2  which the business ceases its operation and must be paid on or

2-3  before the last day of the month immediately following the calendar

2-4  quarter in which the business ceases its operation. A business may

2-5  continue to pay the tax annually until the Department withdraws its

2-6  approval for the annual payment. The Department may withdraw its

2-7  approval at any time if it determines that the tax due for any

2-8  calendar quarter is at least $25.

2-9  3.  The total number of equivalent full-time employees

2-10  employed by a business in a quarter must be calculated pursuant to

2-11  NRS 364A.150.

2-12      4.  Except as otherwise provided in NRS 364A.152 and

2-13  364A.170, the amount of tax due for a business for each calendar

2-14  quarter is [$25] $75 for each equivalent full-time employee

2-15  employed by the business in the quarter.

2-16      5.  Each business shall file a return on a form prescribed by the

2-17  Department with each remittance of the tax. If the payment due is

2-18  greater than $1,000, the payment must be made by direct deposit at

2-19  a bank or credit union in which the State has an account, unless the

2-20  Department waives this requirement pursuant to regulations adopted

2-21  by the Commission. The return must include:

2-22      (a) If the tax is paid quarterly, a statement of the number of

2-23  equivalent full-time employees employed by the business in the

2-24  preceding quarter and any other information the Department

2-25  determines is necessary.

2-26      (b) If the tax is paid annually, a statement of the number of

2-27  equivalent full-time employees employed by the business for each

2-28  calendar quarter of the preceding fiscal year and any other

2-29  information the Department determines is necessary.

2-30      6.  The Commission shall adopt regulations concerning the

2-31  payment of the tax imposed pursuant to this section by direct

2-32  deposit.

2-33      Sec. 2.  NRS 369.174 is hereby amended to read as follows:

2-34      369.174  Each month, the State Controller shall transfer to the

2-35  Tax on Liquor Program Account in the State General Fund, from the

2-36  tax on liquor containing more than 22 percent of alcohol by volume,

2-37  the portion of the tax which exceeds [$1.90] $3.72 per wine gallon.

2-38      Sec. 3.  NRS 369.330 is hereby amended to read as follows:

2-39      369.330  Except as otherwise provided in this chapter, an excise

2-40  tax is hereby levied and must be collected respecting all liquor and

2-41  upon the privilege of importing, possessing, storing or selling liquor,

2-42  according to the following rates and classifications:

2-43      1.  On liquor containing more than 22 percent of alcohol by

2-44  volume, [$2.05] $3.87 per wine gallon or proportionate part thereof.

3-1  2.  On liquor containing more than 14 percent up to and

3-2  including 22 percent of alcohol by volume, [75 cents] $1.42 per

3-3  wine gallon or proportionate part thereof.

3-4  3.  On liquor containing from one-half of 1 percent up to and

3-5  including 14 percent of alcohol by volume, [40] 76 cents per wine

3-6  gallon or proportionate part thereof.

3-7  4.  On all malt beverage liquor brewed or fermented and bottled

3-8  in or outside this state, [9] 17 cents per gallon.

3-9  Sec. 4.  NRS 370.165 is hereby amended to read as follows:

3-10      370.165  There is hereby levied a tax upon the purchase or

3-11  possession of cigarettes by a consumer in the State of Nevada at the

3-12  rate of [17.5] 52.5 mills per cigarette. The tax may be represented

3-13  and precollected by the affixing of a revenue stamp or other

3-14  approved evidence of payment to each package, packet or container

3-15  in which cigarettes are sold. The tax must be precollected by the

3-16  wholesale or retail dealer, and must be recovered from the consumer

3-17  by adding the amount of the tax to the selling price. Each person

3-18  who sells cigarettes at retail shall prominently display on his

3-19  premises a notice that the tax is included in the selling price and is

3-20  payable under the provisions of this chapter.

3-21      Sec. 5.  NRS 370.260 is hereby amended to read as follows:

3-22      370.260  1.  All taxes and license fees imposed by the

3-23  provisions of NRS 370.001 to 370.430, inclusive, less any refunds

3-24  granted as provided by law, must be paid to the Department in the

3-25  form of remittances payable to the Department.

3-26      2.  The Department shall:

3-27      (a) As compensation to the State for the costs of collecting the

3-28  taxes and license fees, transmit each month the sum the Legislature

3-29  specifies from the remittances made to it pursuant to subsection 1

3-30  during the preceding month to the State Treasurer for deposit to the

3-31  credit of the Department. The deposited money must be expended

3-32  by the Department in accordance with its work program.

3-33      (b) From the remittances made to it pursuant to subsection 1

3-34  during the preceding month, less the amount transmitted pursuant to

3-35  paragraph (a), transmit each month the portion of the tax which is

3-36  equivalent to [12.5] 47.5 mills per cigarette to the State Treasurer

3-37  for deposit to the credit of the Account for the Tax on Cigarettes in

3-38  the State General Fund.

3-39      (c) Transmit the balance of the payments each month to the

3-40  State Treasurer for deposit in the Local Government Tax

3-41  Distribution Account created by NRS 360.660.

3-42      (d) Report to the State Controller monthly the amount of

3-43  collections.

3-44      3.  The money deposited pursuant to paragraph (c) of

3-45  subsection 2 in the Local Government Tax Distribution account is

4-1  hereby appropriated to Carson City andto each of the counties in

4-2  proportion to their respective populations and must be credited to

4-3  the respective accounts of Carson City and each county.

4-4  Sec. 6.  NRS 370.350 is hereby amended to read as follows:

4-5  370.350  1.  Except as otherwise provided in subsection 3, a

4-6  tax is hereby levied and imposed upon the use of cigarettes in this

4-7  state.

4-8  2.  The amount of the use tax is [17.5] 52.5 mills per cigarette.

4-9  3.  The use tax does not apply where:

4-10      (a) Nevada cigarette revenue stamps have been affixed to

4-11  cigarette packages as required by law.

4-12      (b) Tax exemption is provided for in this chapter.

4-13      Sec. 7.  NRS 463.373 is hereby amended to read as follows:

4-14      463.373  1.  Before issuing a state gaming license to an

4-15  applicant for a restricted operation, the Commission shall charge

4-16  and collect from him for each slot machine for each quarter year:

4-17      (a) A license fee of [$61] $81 for each slot machine if he will

4-18  have at least one but not more than five slot machines.

4-19      (b) A license fee of [$305 plus $106] $405 plus $141 for each

4-20  slot machine in excess of five if he will have at least six but not

4-21  more than 15 slot machines.

4-22      2.  The Commission shall charge and collect the fee prescribed

4-23  in subsection 1:

4-24      (a) On or before the last day of the last month in a calendar

4-25  quarter, for the ensuing calendar quarter, from a licensee whose

4-26  operation is continuing.

4-27      (b) In advance from a licensee who begins operation or puts

4-28  additional slot machines into play during a calendar quarter.

4-29      3.  Except as otherwise provided in NRS 463.386, no proration

4-30  of the fee prescribed in subsection 1 may be allowed for any reason.

4-31      4.  The operator of the location where slot machines are situated

4-32  shall pay the fee prescribed in subsection 1 upon the total number of

4-33  slot machines situated in that location, whether or not the machines

4-34  are owned by one or more licensee-owners.

4-35      Sec. 8.  The amendatory provisions of this act do not:

4-36      1.  Affect the amount of any taxes or license fees due for any

4-37  calendar quarter or month ending on or before March 31, 2003.

4-38      2.  Apply to any taxes precollected pursuant to chapter 370 of

4-39  NRS on or before March 31, 2003.

4-40      Sec. 9.  This act becomes effective on April 1, 2003, and

4-41  expires by limitation on June 30, 2003.

 

4-42  H