requires two-thirds majority vote (§§ 5, 8, 9, 11, 25, 27)                                                                                                  

                                                                                                  

 

Assembly Bill No. 342–Assemblymen Mortenson, Parks, Hettrick, Giunchigliani and Collins

 

March 17, 2003

____________

 

Referred to Committee on Taxation

 

 

SUMMARY—Imposes occupancy tax on rental of room or space in transient lodging establishment. (BDR 32‑314)

 

FISCAL NOTE:    Effect on Local Government: Yes.

                             Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxation; requiring a transient lodging establishment to obtain a license from the Department of Taxation; imposing an occupancy tax on the rental of a room or space in such an establishment; providing penalties; 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. Title 32 of NRS is hereby amended by adding

1-2  thereto a new chapter to consist of the provisions set forth as

1-3  sections 2 to 26, inclusive, of this act.

1-4  Sec. 2.  As used in this chapter, unless the context otherwise

1-5  requires, the words and terms defined in sections 3 and 4 of this

1-6  act have the meanings ascribed to them in those sections.

1-7  Sec. 3.  “Temporary or transient paying guest” means a

1-8  natural person who rents a room or space for not more than 28

1-9  consecutive days.

1-10      Sec. 4.  1.  “Transient lodging establishment” means any

1-11  establishment that is kept, used or maintained as, or held out to

1-12  members of the public to be, a place where sleeping or rooming

1-13  accommodations are furnished to temporary or transient paying

1-14  guests.

2-1  2.  Except as otherwise provided in subsection 3, the term

2-2  includes, without limitation:

2-3  (a) Hotels.

2-4  (b) Motels.

2-5  (c) Time-share projects, except when an owner of a unit in the

2-6  time-share project who has a right to use or occupy the unit is

2-7  occupying the unit pursuant to a time-share instrument as defined

2-8  in NRS 119A.150.

2-9  (d) Apartment hotels.

2-10      (e) Vacation trailer parks.

2-11      (f) Campgrounds.

2-12      (g) Parks for recreational vehicles.

2-13      (h) Any other establishment that rents rooms or spaces, or

2-14  both, to temporary or transient paying guests.

2-15      3.  The term does not include an establishment that has less

2-16  than 10 rooms and spaces available for rent to temporary or

2-17  transient paying guests.

2-18      Sec. 5.  The Department shall adopt such regulations as it

2-19  deems necessary to carry out the provisions of this chapter.

2-20      Sec. 6.  1.  Each person responsible for maintaining the

2-21  records of a transient lodging establishment shall:

2-22      (a) Keep such records as may be necessary to determine the

2-23  amount of its liability pursuant to the provisions of this chapter;

2-24      (b) Preserve those records for at least 4 years or until any

2-25  litigation or prosecution pursuant to this chapter is finally

2-26  determined, whichever is longer; and

2-27      (c) Make the records available for inspection by the

2-28  Department upon demand at reasonable times during regular

2-29  business hours.

2-30      2.  Any person who violates the provisions of this section is

2-31  guilty of a misdemeanor.

2-32      Sec. 7.  1.  The Department, or any person authorized in

2-33  writing by the Department, may examine the books, papers and

2-34  records of any person or transient lodging establishment that may

2-35  be liable for the occupancy tax imposed by this chapter in order to

2-36  verify the accuracy of any return or, if no return is filed by a

2-37  transient lodging establishment, to determine the amount required

2-38  to be paid.

2-39      2.  Any person or transient lodging establishment that may be

2-40  liable for the occupancy tax imposed by this chapter and that

2-41  keeps outside of this state its books, papers and records relating

2-42  thereto shall pay to the Department an amount equal to the

2-43  allowance provided for state officers and employees generally

2-44  while traveling outside of the State for each day or fraction thereof

2-45  during which an employee of the Department is engaged in

3-1  examining those documents, plus any other actual expenses

3-2  incurred by the employee of the Department while he is absent

3-3  from his regular place of employment to examine those

3-4  documents.

3-5  Sec. 8.  1.  Except as otherwise provided in this section and

3-6  NRS 360.250, the records and files of the Department concerning

3-7  the administration of this chapter are confidential and privileged.

3-8  The Department, and any employee engaged in the administration

3-9  of this chapter or charged with the custody of any such records or

3-10  files, shall not disclose any information obtained from the

3-11  Department’s records or files or from any examination,

3-12  investigation or hearing authorized by the provisions of this

3-13  chapter. Neither the Department nor any employee of the

3-14  Department may be required to produce any of the records, files

3-15  and information for the inspection of any person or for use in any

3-16  action or proceeding.

3-17      2.  The records and files of the Department concerning the

3-18  administration of this chapter are not confidential and privileged

3-19  in the following cases:

3-20      (a) Testimony by a member or employee of the Department

3-21  and production of records, files and information on behalf of the

3-22  Department or a person required to pay the occupancy tax in any

3-23  action or proceeding pursuant to the provisions of this chapter if

3-24  that testimony or the records, files or information, or the facts

3-25  shown thereby are directly involved in the action or proceeding.

3-26      (b) Delivery to a person who is required to pay the occupancy

3-27  tax or his authorized representative of a copy of any return or

3-28  other document filed by that person pursuant to this chapter.

3-29      (c) Publication of statistics so classified as to prevent the

3-30  identification of a particular transient lodging establishment or

3-31  document.

3-32      (d) Exchanges of information with the Internal Revenue

3-33  Service in accordance with compacts made and provided for in

3-34  such cases.

3-35      (e) Disclosure in confidence to the Governor or his agent in

3-36  the exercise of the Governor’s general supervisory powers, or to

3-37  any person authorized to audit the accounts of the Department in

3-38  pursuance of an audit, or to the Attorney General or other legal

3-39  representative of this state in connection with an action or

3-40  proceeding pursuant to this chapter, or to any agency of this or

3-41  any other state charged with the administration or enforcement of

3-42  laws relating to workers’ compensation, unemployment

3-43  compensation, public assistance, taxation, labor or gaming.

3-44      (f) Exchanges of information pursuant to subsection 3.

4-1  3.  The Department may agree with any county fair and

4-2  recreation board or the governing body of any county, city or town

4-3  for the continuing exchange of information concerning persons

4-4  who are required to pay the occupancy tax.

4-5  Sec. 9. 1.  The Department shall deposit all fees, taxes,

4-6  interest and penalties it receives under this chapter in the State

4-7  Treasury for credit to the Occupancy Tax Account in the State

4-8  General Fund.

4-9  2.  The money in the Occupancy Tax Account may, upon

4-10  order of the State Controller, be used for refunds under this

4-11  chapter.

4-12      Sec. 10.  1.  A person shall not operate a transient lodging

4-13  establishment in this state unless he has a license issued by the

4-14  Department.

4-15      2.  The application for such a license must:

4-16      (a) Be made upon a form prescribed by the Department;

4-17      (b) Set forth the name under which the applicant transacts or

4-18  intends to transact business and the location of his transient

4-19  lodging establishment;

4-20      (c) Declare the estimated number of rooms and spaces

4-21  available for rent to paying guests;

4-22      (d) Be accompanied by a fee of $25; and

4-23      (e) Include any other information that the Department deems

4-24  necessary.

4-25      3.  The application must be signed by:

4-26      (a) The owner, if the transient lodging establishment is owned

4-27  by a natural person;

4-28      (b) A member or partner, if the transient lodging establishment

4-29  is owned by an association or partnership; or

4-30      (c) An officer or some other person specifically authorized to

4-31  sign the application, if the transient lodging establishment is

4-32  owned by a corporation.

4-33      4.  If the application is signed pursuant to paragraph (c) of

4-34  subsection 3, written evidence of the signer’s authority must be

4-35  attached to the application.

4-36      Sec. 11.  1.  Each license issued pursuant to section 10 of

4-37  this act expires on June 30 next following the date of issuance and

4-38  must be renewed on or before that date.

4-39      2.  A license may be renewed by the holder thereof upon the

4-40  payment of a renewal fee of $25.

4-41      3.  If the holder of a license fails to pay the annual renewal

4-42  fee before the expiration of his license, the license may be

4-43  reinstated upon the payment of a reinstatement fee of $25 in

4-44  addition to the annual renewal fee. A license may be reinstated

5-1  pursuant to this subsection only if the fees are paid within 1 year

5-2  after the license expires.

5-3  Sec. 12.  1.  If a holder of a license under this chapter fails

5-4  to comply with a provision of this chapter or a regulation of the

5-5  Department adopted pursuant to this chapter, the Department may

5-6  revoke or suspend his license. Before so doing, the Department

5-7  must hold a hearing after giving 10 days’ written notice to the

5-8  licensee. The notice must specify the time and place of the hearing

5-9  and require him to show cause why his license should not be

5-10  revoked or suspended.

5-11      2.  If the license is suspended or revoked, the Department

5-12  shall give written notice of the action to the licensee.

5-13      3.  The notices required by this section may be served

5-14  personally or by mail in the manner provided in NRS 360.350 for

5-15  the service of a notice of the determination of a deficiency.

5-16      4.  The Department shall not issue a new license to the former

5-17  holder of a revoked license unless the Department is satisfied that

5-18  he will comply with the provisions of this chapter and the

5-19  regulations of the Department adopted pursuant thereto.

5-20      Sec. 13.  1.  There is hereby imposed an occupancy tax of $3

5-21  on each room and space rented by a transient lodging

5-22  establishment in this state to a temporary or transient paying guest

5-23  for each day or portion of a day that the room or space is rented to

5-24  that guest.

5-25      2.  The occupancy tax imposed pursuant to subsection 1 is in

5-26  addition to any other fee or tax charged for the rental of the room

5-27  or space.

5-28      3.  The occupancy tax imposed pursuant to subsection 1 must

5-29  be collected from the temporary or transient paying guest and

5-30  must be shown as an addition to the charge for the rental of the

5-31  room or space. The occupancy tax must not be collected from a

5-32  person who, at the time of checking in, provides documentary

5-33  proof of his continuous stay in a transient lodging establishment

5-34  in this state for the previous 28 consecutive days. The proof must

5-35  positively identify the person and must clearly indicate that the 28

5-36  days were paid in advance or occupancy tax was charged. The

5-37  transient lodging establishment is liable to the Department for

5-38  the occupancy tax whether or not it is actually collected from the

5-39  temporary or transient paying guest.

5-40      4.  Except as otherwise provided in this section, the total

5-41  amount of the occupancy tax required to be paid by a transient

5-42  lodging establishment for each calendar quarter is due on the last

5-43  day of the quarter and must be paid on or before the last day of the

5-44  month immediately following the quarter.

6-1  5.  If the occupancy tax required to be paid by a transient

6-2  lodging establishment for a calendar quarter pursuant to

6-3  subsection 1 is less than $50, the establishment may submit a

6-4  written request to the Department to pay the tax annually for each

6-5  calendar quarter of a fiscal year ending June 30. Upon approval

6-6  of the request, the tax becomes due on the last day of the fiscal

6-7  year and must be paid on or before the last day of July

6-8  immediately following the fiscal year. If a transient lodging

6-9  establishment ceases operation before the end of the fiscal year,

6-10  the tax becomes due on the date on which the establishment ceases

6-11  its operation and must be paid on or before the last day of the

6-12  month immediately following the calendar quarter in which the

6-13  establishment ceases its operation. A transient lodging

6-14  establishment may continue to pay the tax annually until the

6-15  Department withdraws its approval for the annual payment. The

6-16  Department may withdraw its approval at any time if it determines

6-17  that the tax due for any calendar quarter is at least $50.

6-18      6.  Each transient lodging establishment shall file a return on

6-19  a form prescribed by the Department with each remittance of the

6-20  occupancy tax. The return must include any information the

6-21  Department determines is necessary to administer the provisions

6-22  of this chapter.

6-23      Sec. 14. Upon written application made before the date on

6-24  which payment must be made, for good cause the Department may

6-25  extend by 30 days the time within which a transient lodging

6-26  establishment is required to pay the occupancy tax imposed by this

6-27  chapter. If the tax is paid during the period of extension, no

6-28  penalty or late charge may be imposed for failure to pay at the

6-29  time required, but the transient lodging establishment shall pay

6-30  interest at the rate most recently established pursuant to NRS

6-31  99.040 for each month, or fraction of a month, from the last day of

6-32  the month following the date on which the amount would have

6-33  been due without the extension until the date of payment, unless

6-34  otherwise provided in NRS 360.232 or 360.320.

6-35      Sec. 15.  The remedies of the State provided for in this

6-36  chapter are cumulative, and no action taken by the Department or

6-37  the Attorney General constitutes an election by the State to pursue

6-38  any remedy to the exclusion of any other remedy for which

6-39  provision is made in this chapter.

6-40      Sec. 16.  If the Department determines that any occupancy

6-41  tax, penalty or interest has been paid more than once or has been

6-42  erroneously or illegally collected or computed, the Department

6-43  shall set forth that fact in the records of the Department and

6-44  certify to the State Board of Examiners the amount collected in

6-45  excess of the amount legally due and the name of the transient

7-1  lodging establishment or person from whom it was collected or by

7-2  whom paid. If approved by the State Board of Examiners, the

7-3  excess amount collected or paid must be credited on any amounts

7-4  then due from the person or establishment under this chapter, and

7-5  the balance refunded to the person or business, or its successors,

7-6  administrators or executors.

7-7  Sec. 17.  1.  Except as otherwise provided in NRS 360.235

7-8  and 360.395:

7-9  (a) No refund may be allowed unless a claim for it is filed with

7-10  the Department within 3 years after the last day of the month

7-11  following the close of the period for which the overpayment was

7-12  made.

7-13      (b) No credit may be allowed after the expiration of the period

7-14  specified for filing claims for refund unless a claim for credit is

7-15  filed with the Department within that period.

7-16      2.  Each claim must be in writing and must state the specific

7-17  grounds upon which the claim is founded.

7-18      3.  Failure to file a claim within the time prescribed in this

7-19  chapter constitutes a waiver of any demand against the State on

7-20  account of overpayment.

7-21      4.  Within 30 days after rejecting any claim in whole or in

7-22  part, the Department shall serve notice of its action on the

7-23  claimant in the manner prescribed for service of notice of a

7-24  deficiency determination.

7-25      Sec. 18.  1.  Except as otherwise provided in NRS 360.320,

7-26  interest must be paid upon any overpayment of any amount of any

7-27  fee or occupancy tax imposed by this chapter at the rate of one-

7-28  half of 1 percent per month, or fraction thereof, from the last day

7-29  of the calendar month following the period for which the

7-30  overpayment was made. No refund or credit may be made of any

7-31  interest imposed upon the person or transient lodging

7-32  establishment making the overpayment with respect to the amount

7-33  being refunded or credited.

7-34      2.  The interest must be paid:

7-35      (a) In the case of a refund, to the last day of the calendar

7-36  month following the date upon which the person making the

7-37  overpayment, if he has not already filed a claim, is notified by

7-38  the Department that a claim may be filed or the date upon which

7-39  the claim is certified to the State Board of Examiners, whichever is

7-40  earlier.

7-41      (b) In the case of a credit, to the same date as that to which

7-42  interest is computed on the fee or tax or amount against which the

7-43  credit is applied.

8-1  3.  If the Department determines that any overpayment has

8-2  been made intentionally or by reason of carelessness, it shall not

8-3  allow any interest on the overpayment.

8-4  Sec. 19.  1.  No injunction, writ of mandate or other legal or

8-5  equitable process may issue in any suit, action or proceeding in

8-6  any court against this state or against any officer of this state to

8-7  prevent or enjoin the collection under this chapter of the

8-8  occupancy tax imposed by this chapter or any amount of the tax,

8-9  penalty or interest required to be collected.

8-10      2.  No suit or proceeding may be maintained in any court for

8-11  the recovery of any amount alleged to have been erroneously or

8-12  illegally determined or collected unless a claim for refund or credit

8-13  has been filed.

8-14      Sec. 20.  1.  Within 90 days after a final decision upon a

8-15  claim filed pursuant to this chapter is rendered by the Nevada Tax

8-16  Commission, the claimant may bring an action against the

8-17  Department on the grounds set forth in the claim in a court of

8-18  competent jurisdiction in Carson City, the county of this state

8-19  where the claimant resides or maintains his transient lodging

8-20  establishment or a county in which any relevant proceedings were

8-21  conducted by the Department, for the recovery of the whole or any

8-22  part of the amount with respect to which the claim has been

8-23  disallowed.

8-24      2.  Failure to bring an action within the time specified

8-25  constitutes a waiver of any demand against the State on account of

8-26  alleged overpayments.

8-27      Sec. 21.  1.  If the Department fails to mail notice of action

8-28  on a claim within 6 months after the claim is filed, the claimant

8-29  may consider the claim disallowed and file an appeal with the

8-30  Nevada Tax Commission within the 30 days after the last day of

8-31  the 6-month period. If the claimant is aggrieved by the decision

8-32  of the Commission rendered on appeal, he may, within 90 days

8-33  after the decision is rendered, bring an action against the

8-34  Department on the grounds set forth in the claim for the recovery

8-35  of the whole or any part of the amount claimed as an

8-36  overpayment.

8-37      2.  If judgment is rendered for the plaintiff, the amount of the

8-38  judgment must first be credited towards any fee or occupancy tax

8-39  due from the plaintiff.

8-40      3.  The balance of the judgment must be refunded to the

8-41  plaintiff.

8-42      Sec. 22.  In any judgment, interest must be allowed at the rate

8-43  of 6 percent per annum upon the amount found to have been

8-44  illegally collected from the date of payment of the amount to the

8-45  date of allowance of credit on account of the judgment, or to a

9-1  date preceding the date of the refund warrant by not more than 30

9-2  days. The date must be determined by the Department.

9-3  Sec. 23.  A judgment may not be rendered in favor of the

9-4  plaintiff in any action brought against the Department to recover

9-5  any amount paid when the action is brought by or in the name of

9-6  an assignee of the transient lodging establishment paying the

9-7  amount or by any person other than the person or transient

9-8  lodging establishment which paid the amount.

9-9  Sec. 24.  1.  The Department may recover a refund or any

9-10  part thereof which is erroneously made and any credit or part

9-11  thereof which is erroneously allowed in an action brought in a

9-12  court of competent jurisdiction in Carson City or Clark County in

9-13  the name of the State of Nevada.

9-14      2.  The action must be tried in Carson City or Clark County

9-15  unless the court with the consent of the Attorney General orders a

9-16  change of place of trial.

9-17      3.  The Attorney General shall prosecute the action, and the

9-18  provisions of NRS, the Nevada Rules of Civil Procedure and the

9-19  Nevada Rules of Appellate Procedure relating to service of

9-20  summons, pleadings, proofs, trials and appeals are applicable to

9-21  the proceedings.

9-22      Sec. 25.  1.  If any amount in excess of $25 has been

9-23  illegally determined, either by the person filing the return or by the

9-24  Department, the Department shall certify this fact to the State

9-25  Board of Examiners, and the latter shall authorize the

9-26  cancellation of the amount upon the records of the Department.

9-27      2.  If an amount not exceeding $25 has been illegally

9-28  determined, either by the person or transient lodging

9-29  establishment filing a return or by the Department, the

9-30  Department, without certifying this fact to the State Board of

9-31  Examiners, shall authorize the cancellation of the amount upon

9-32  the records of the Department.

9-33      Sec. 26. 1.  A person shall not:

9-34      (a) Make, cause to be made or permit to be made any false or

9-35  fraudulent return or declaration or false statement in any return

9-36  or declaration, with intent to defraud the State or to evade

9-37  payment of the occupancy tax or any part of the occupancy tax

9-38  imposed by this chapter.

9-39      (b) Make, cause to be made or permit to be made any false

9-40  entry in books, records or accounts with intent to defraud the State

9-41  or to evade the payment of the occupancy tax or any part of the

9-42  occupancy tax imposed by this chapter.

9-43      (c) Keep, cause to be kept or permit to be kept more than one

9-44  set of books, records or accounts with intent to defraud the State

10-1  or to evade the payment of the occupancy tax or any part of the

10-2  occupancy tax imposed by this chapter.

10-3      2.  Any person who violates the provisions of subsection 1 is

10-4  guilty of a gross misdemeanor.

10-5      Sec. 27.  NRS 360.300 is hereby amended to read as follows:

10-6      360.300  1.  If a person fails to file a return or the Department

10-7  is not satisfied with the return or returns of any tax, contribution or

10-8  premium or amount of tax, contribution or premium required to be

10-9  paid to the State by any person, in accordance with the applicable

10-10  provisions of this chapter, chapter 362, 364A, 369, 370, 372, 372A,

10-11  374, 377, 377A or 444A of NRS, sections 2 to 26, inclusive, of this

10-12  act, NRS 482.313, or chapter 585 or 680B of NRS as administered

10-13  or audited by the Department, it may compute and determine the

10-14  amount required to be paid upon the basis of:

10-15     (a) The facts contained in the return;

10-16     (b) Any information within its possession or that may come into

10-17  its possession; or

10-18     (c) Reasonable estimates of the amount.

10-19     2.  One or more deficiency determinations may be made with

10-20  respect to the amount due for one or for more than one period.

10-21     3.  In making its determination of the amount required to be

10-22  paid, the Department shall impose interest on the amount of tax

10-23  determined to be due, calculated at the rate and in the manner set

10-24  forth in NRS 360.417, unless a different rate of interest is

10-25  specifically provided by statute.

10-26     4.  The Department shall impose a penalty of 10 percent in

10-27  addition to the amount of a determination that is made in the case of

10-28  the failure of a person to file a return with the Department.

10-29     5.  When a business is discontinued, a determination may be

10-30  made at any time thereafter within the time prescribed in NRS

10-31  360.355 as to liability arising out of that business, irrespective of

10-32  whether the determination is issued before the due date of the

10-33  liability.

10-34     Sec. 28.  NRS 360.412 is hereby amended to read as follows:

10-35     360.412  If the Department believes that the collection of any

10-36  amount of sales or use tax, business tax , occupancy tax or other

10-37  excise due pursuant to this title, NRS 482.313 or chapter 585 of

10-38  NRS will be jeopardized by delay, it shall make a determination of

10-39  the amount required to be collected and serve notice of the

10-40  determination upon the person against whom it is made.

10-41     Sec. 29.  NRS 360.417 is hereby amended to read as follows:

10-42     360.417  Except as otherwise provided in NRS 360.232 and

10-43  360.320, and unless a different penalty or rate of interest is

10-44  specifically provided by statute, any person who fails to pay any tax

10-45  provided for in chapter 362, 364A, 369, 370, 372, 374, 377, 377A,

11-1  444A or 585 of NRS, or sections 2 to 26, inclusive, of this act, or

11-2  the fee provided for in NRS 482.313, to the State or a county within

11-3  the time required, shall pay a penalty of not more than 10 percent

11-4  of the amount of the tax or fee which is owed, as determined by the

11-5  Department, in addition to the tax or fee, plus interest at the rate of 1

11-6  percent per month, or fraction of a month, from the last day of the

11-7  month following the period for which the amount or any portion of

11-8  the amount should have been reported until the date of payment.

11-9  The amount of any penalty imposed must be based on a graduated

11-10  schedule adopted by the Nevada Tax Commission which takes into

11-11  consideration the length of time the tax or fee remained unpaid.

11-12     Sec. 30.  NRS 360.419 is hereby amended to read as follows:

11-13     360.419  1.  If the Executive Director or a designated hearing

11-14  officer finds that the failure of a person to make a timely return or

11-15  payment of a tax imposed pursuant to NRS 361.320 or chapter

11-16  361A, 376A, 377 or 377A of NRS, or by chapter 362, 364A, 369,

11-17  370, 372, 372A, 374, 375A or 375B of NRS, or sections 2 to 26,

11-18  inclusive, of this act, is the result of circumstances beyond his

11-19  control and occurred despite the exercise of ordinary care and

11-20  without intent, the Department may relieve him of all or part of any

11-21  interest or penalty or both.

11-22     2.  A person seeking this relief must file with the Department a

11-23  statement under oath setting forth the facts upon which he bases his

11-24  claim.

11-25     3.  The Department shall disclose, upon the request of any

11-26  person:

11-27     (a) The name of the person to whom relief was granted; and

11-28     (b) The amount of the relief.

11-29     4.  The Executive Director or a designated hearing officer shall

11-30  act upon the request of a taxpayer seeking relief pursuant to NRS

11-31  361.4835 which is deferred by a county treasurer or county assessor.

11-32     Sec. 31.  NRS 360.510 is hereby amended to read as follows:

11-33     360.510  1.  If any person is delinquent in the payment of any

11-34  tax or fee administered by the Department or if a determination has

11-35  been made against him which remains unpaid, the Department may:

11-36     (a) Not later than 3 years after the payment became delinquent

11-37  or the determination became final; or

11-38     (b) Not later than 6 years after the last recording of an abstract

11-39  of judgment or of a certificate constituting a lien for tax

11-40  owed,

11-41  give a notice of the delinquency and a demand to transmit

11-42  personally or by registered or certified mail to any person,

11-43  including, without limitation, any officer or department of this state

11-44  or any political subdivision or agency of this state, who has in his

11-45  possession or under his control any credits or other personal

12-1  property belonging to the delinquent, or owing any debts to the

12-2  delinquent or person against whom a determination has been made

12-3  which remains unpaid, or owing any debts to the delinquent or that

12-4  person. In the case of any state officer, department or agency, the

12-5  notice must be given to the officer, department or agency before

12-6  the Department presents the claim of the delinquent taxpayer to the

12-7  State Controller.

12-8      2.  A state officer, department or agency which receives such a

12-9  notice may satisfy any debt owed to it by that person before it

12-10  honors the notice of the Department.

12-11     3.  After receiving the demand to transmit, the person notified

12-12  by the demand may not transfer or otherwise dispose of the credits,

12-13  other personal property, or debts in his possession or under his

12-14  control at the time he received the notice until the Department

12-15  consents to a transfer or other disposition.

12-16     4.  Every person notified by a demand to transmit shall, within

12-17  10 days after receipt of the demand to transmit, inform the

12-18  Department of, and transmit to the Department all such credits,

12-19  other personal property, or debts in his possession, under his control

12-20  or owing by him within the time and in the manner requested by the

12-21  Department. Except as otherwise provided in subsection 5, no

12-22  further notice is required to be served to that person.

12-23     5.  If the property of the delinquent taxpayer consists of a series

12-24  of payments owed to him, the person who owes or controls the

12-25  payments shall transmit the payments to the Department until

12-26  otherwise notified by the Department. If the debt of the delinquent

12-27  taxpayer is not paid within 1 year after the Department issued the

12-28  original demand to transmit, the Department shall issue another

12-29  demand to transmit to the person responsible for making the

12-30  payments informing him to continue to transmit payments to

12-31  the Department or that his duty to transmit the payments to the

12-32  Department has ceased.

12-33     6.  If the notice of the delinquency seeks to prevent the transfer

12-34  or other disposition of a deposit in a bank or credit union or other

12-35  credits or personal property in the possession or under the control of

12-36  a bank, credit union or other depository institution, the notice must

12-37  be delivered or mailed to any branch or office of the bank, credit

12-38  union or other depository institution at which the deposit is carried

12-39  or at which the credits or personal property is held.

12-40     7.  If any person notified by the notice of the delinquency

12-41  makes any transfer or other disposition of the property or debts

12-42  required to be withheld or transmitted, to the extent of the value of

12-43  the property or the amount of the debts thus transferred or paid, he is

12-44  liable to the State for any indebtedness due pursuant to this chapter,

12-45  or chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A

13-1  of NRS, sections 2 to 26, inclusive, of this act, NRS 482.313, or

13-2  chapter 585 or 680B of NRS from the person with respect to whose

13-3  obligation the notice was given if solely by reason of the transfer or

13-4  other disposition the State is unable to recover the indebtedness of

13-5  the person with respect to whose obligation the notice was given.

13-6      Sec. 32.  1.  This act becomes effective upon passage and

13-7  approval for the purposes of the adoption of regulations by the

13-8  Department of Taxation and on July 1, 2003, for all other purposes.

13-9      2.  The first payment of the occupancy tax imposed pursuant to

13-10  section 13 of this act is due on or before September 30, 2003.

 

13-11  H