Assembly Bill No. 364–Assemblyman Marvel

 

March 17, 2003

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Referred to Committee on Taxation

 

SUMMARY—Authorizes imposition of additional tax on motor vehicle fuel by cities and counties. (BDR 32‑1119)

 

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 taxes on motor vehicle fuels; authorizing cities and counties to impose an additional tax on motor vehicle fuel; prescribing the authorized uses of the revenue from the tax; 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. Chapter 365 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 and 3 of this act.

1-3  Sec. 2.  1.  In addition to any other tax provided for in this

1-4  chapter, a board of county commissioners, for the unincorporated

1-5  area of a county, or the governing body of an incorporated city

1-6  may by ordinance impose an excise tax of 1 cent per gallon on

1-7  motor vehicle fuel, except aviation fuel.

1-8  2.  Any ordinance enacted pursuant to subsection 1 must

1-9  provide that the tax will be imposed on the first day of the second

1-10  calendar month following the enactment of the ordinance.

1-11      3.  A tax imposed pursuant to this section must be collected by

1-12  the supplier in the manner provided in this chapter. Upon

1-13  collection of the tax by the supplier, the purchaser of the fuel shall

1-14  provide to the supplier a statement that sets forth the number of

1-15  gallons of fuel that will be sold to retailers in the unincorporated

1-16  area of a county and to retailers within an incorporated city that

1-17  have imposed the tax. The tax must be paid to the Department and

2-1  delivered by the Department to the State Treasurer. When the tax

2-2  is paid to the Department, the supplier shall provide to the

2-3  Department a copy of the statement provided to the supplier by the

2-4  purchaser pursuant to this subsection.

2-5  Sec. 3.  1.  The receipts of a tax levied pursuant to section 2

2-6  of this act must be allocated monthly by the Department to

2-7  counties and cities that have imposed the tax in proportion to the

2-8  number of gallons of fuel that are sold to retailers in each county

2-9  and city pursuant to the information contained in the statements

2-10  provided to the Department pursuant to section 2 of this act.

2-11      2.  The money received by a county or city pursuant to this

2-12  section:

2-13      (a) Must be used solely for the construction and maintenance

2-14  of highways to mitigate the impact of high-volume traffic on

2-15  existing developed areas.

2-16      (b) May only be used in a developed area where residential

2-17  land users abut the right-of-way or are within 300 feet of the right-

2-18  of-way, and where the average daily traffic volume is greater than

2-19  3,000 vehicles per day.

2-20      (c) May only be used for the construction of soundwalls,

2-21  landscape improvements within the highway, lighting

2-22  improvements or pedestrian improvements, including sidewalks,

2-23  accessibility improvements, crossing aids and traffic-calming

2-24  devices.

2-25      (d) By agreement with the State, may be used within a state

2-26  right-of-way.

2-27      (e) May not be used in the construction of new highways in

2-28  undeveloped areas.

2-29      Sec. 4.  NRS 365.324 is hereby amended to read as follows:

2-30      365.324  1.  Except as otherwise provided in subsections 2 and

2-31  3, each supplier who sells or distributes motor vehicle fuel, other

2-32  than aviation fuel, shall, at the time the motor vehicle fuel is

2-33  distributed from a terminal, collect the taxes imposed pursuant to

2-34  NRS 365.175 to 365.192, inclusive[.] , and section 2 of this act.

2-35      2.  A supplier may sell motor vehicle fuel, other than aviation

2-36  fuel, to a purchaser without collecting the taxes imposed pursuant to

2-37  NRS 365.175 to 365.192, inclusive, and section 2 of this act, if the

2-38  purchaser of the motor vehicle fuel:

2-39      (a) Has been issued a permit by the Department pursuant to

2-40  NRS 365.328; and

2-41      (b) Elects to defer payment of the taxes.

2-42      3.  A supplier shall not collect the taxes imposed pursuant to

2-43  NRS 365.175 to 365.192, inclusive, and section 2 of this act, if the

2-44  purchaser of the motor vehicle fuel is:

2-45      (a) A supplier; or

3-1  (b) An exporter.

3-2  4.  A supplier who sells motor vehicle fuel, other than aviation

3-3  fuel, to any other supplier shall keep such records of the transaction

3-4  as the Department may require. The Department shall adopt

3-5  regulations setting forth:

3-6  (a) The records which must be kept by the dealer pursuant to

3-7  this subsection; and

3-8  (b) The period for which those records must be kept by the

3-9  dealer.

3-10      Sec. 5.  This act becomes effective on July 1, 2003.

 

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