Assembly Bill No. 387–Assemblymen Goldwater,
Buckley, Perkins and Griffin

 

March 17, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Makes various changes to provisions governing taxation. (BDR 32‑173)

 

FISCAL NOTE:  Effect on Local Government: No.

                           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; reducing the annual amount of the basic governmental services tax; decreasing the rate of reimbursement for the collection of certain sales and use taxes; eliminating the exemption from certain sales and use taxes for a used vehicle taken in trade on the purchase of another vehicle; increasing the real property transfer tax, mandatory taxes on transient lodging and certain state gaming license fees; eliminating the credit against the insurance premium tax for maintaining a home office or regional office in this state; providing for the submission to the voters of the question whether the Sales and Use Tax Act of 1955 should be amended to repeal the exemption from the taxes imposed by the act on the gross receipts from the sale and storage, use or other consumption of tangible property which becomes an ingredient or component part of certain newspapers and any such newspapers; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

 

2-1  Section 1.  Chapter 360 of NRS is hereby amended by adding

2-2  thereto a new section to read as follows:

2-3  1.  The Tax Distribution Account is hereby created in the

2-4  State General Fund. All money received or collected by the

2-5  Department pursuant to NRS 244.3354, 268.0962, 375.070,

2-6  463.320 and 680B.060 must be deposited in the Account. The

2-7  Executive Director shall administer the Account.

2-8  2.  The interest and income on the money in the Account,

2-9  after deducting any applicable charges, must be credited to the

2-10  Account.

2-11      3.  All money in the Account must be distributed to each

2-12  county school district in this state and must be deposited in the

2-13  Local Government Tax Distribution Account in the same

2-14  proportion and pursuant to the same requirements as

2-15  governmental services taxes are distributed pursuant to

2-16  NRS 482.181.

2-17      Sec. 2.  NRS 371.040 is hereby amended to read as follows:

2-18      371.040  The annual amount of the basic governmental services

2-19  tax throughout the State is [4] 2 cents on each $1 of valuation of the

2-20  vehicle as determined by the Department.

2-21      Sec. 3.  NRS 372.370 is hereby amended to read as follows:

2-22      372.370  The taxpayer shall deduct and withhold from the taxes

2-23  otherwise due from him [1.25]0.75 percent of it to reimburse

2-24  himself for the cost of collecting the tax.

2-25      Sec. 4.  NRS 374.030 is hereby amended to read as follows:

2-26      374.030  1.  “Gross receipts” means the total amount of the

2-27  sale or lease or rental price, as the case may be, of the retail sales of

2-28  retailers, valued in money, whether received in money or otherwise,

2-29  without any deduction on account of any of the following:

2-30      (a) The cost of the property sold. However, in accordance with

2-31  such rules and regulations as the Department may prescribe, a

2-32  deduction may be taken if the retailer has purchased property for

2-33  some other purpose than resale, has reimbursed his vendor for tax

2-34  which the vendor is required to pay to the county or has paid the use

2-35  tax with respect to the property, and has resold the property before

2-36  making any use of the property other than retention, demonstration

2-37  or display while holding it for sale in the regular course of business.

2-38  If such a deduction is taken by the retailer, no refund or credit will

2-39  be allowed to his vendor with respect to the sale of the property.

2-40      (b) The cost of the materials used, labor or service cost, interest

2-41  paid, losses or any other expense.

2-42      (c) The cost of transportation of the property before its sale to

2-43  the purchaser.

2-44      2.  The total amount of the sale or lease or rental price includes

2-45  all of the following:

3-1  (a) Any services that are a part of the sale.

3-2  (b) All receipts, cash, credits and property of any kind.

3-3  (c) Any amount for which credit is allowed by the seller to the

3-4  purchaser.

3-5  3.  “Gross receipts” does not include any of the following:

3-6  (a) Cash discounts allowed and taken on sales.

3-7  (b) The sale price of property returned by customers when the

3-8  full sale price is refunded either in cash or credit, but this exclusion

3-9  does not apply in any instance when the customer, in order to obtain

3-10  the refund, is required to purchase other property at a price greater

3-11  than the amount charged for the property that is returned.

3-12      (c) The price received for labor or services used in installing or

3-13  applying the property sold.

3-14      (d) The amount of any tax, not including any manufacturers’ or

3-15  importers’ excise tax, imposed by the United States upon or with

3-16  respect to retail sales, whether imposed upon the retailer or the

3-17  consumer.

3-18      [(e) The amount of any allowance against the selling price given

3-19  by a retailer for the value of a used vehicle which is taken in trade

3-20  on the purchase of another vehicle.]

3-21      4.  For purposes of the sales tax, if the retailers establish to the

3-22  satisfaction of the Department that the sales tax has been added to

3-23  the total amount of the sale price and has not been absorbed by

3-24  them, the total amount of the sale price shall be deemed to be the

3-25  amount received exclusive of the tax imposed.

3-26      Sec. 5.  NRS 374.070 is hereby amended to read as follows:

3-27      374.070  1.  “Sales price” means the total amount for which

3-28  tangible property is sold, valued in money, whether paid in money

3-29  or otherwise, without any deduction on account of any of the

3-30  following:

3-31      (a) The cost of the property sold.

3-32      (b) The cost of the materials used, labor or service cost, interest

3-33  charged, losses, or any other expenses.

3-34      (c) The cost of transportation of the property before its purchase.

3-35      2.  The total amount for which property is sold includes all of

3-36  the following:

3-37      (a) Any services that are a part of the sale.

3-38      (b) Any amount for which credit is given to the purchaser by the

3-39  seller.

3-40      3.  “Sales price” does not include any of the following:

3-41      (a) Cash discounts allowed and taken on sales.

3-42      (b) The amount charged for property returned by customers

3-43  when the entire amount charged therefor is refunded either in cash

3-44  or credit , [;] but this exclusion does not apply in any instance when

3-45  the customer, in order to obtain the refund, is required to purchase

4-1  other property at a price greater than the amount charged for the

4-2  property that is returned.

4-3  (c) The amount charged for labor or services rendered in

4-4  installing or applying the property sold.

4-5  (d) The amount of any tax , [(]not including, however, any

4-6  manufacturers’ or importers’ excise tax , [)] imposed by the United

4-7  States upon or with respect to retail sales, whether imposed upon the

4-8  retailer or the consumer.

4-9  (e) The amount of any tax imposed by the State of Nevada upon

4-10  or with respect to the storage, use or other consumption of tangible

4-11  personal property purchased from any retailer.

4-12      [(f) The amount of any allowance against the selling price given

4-13  by a retailer for the value of a used vehicle which is taken in trade

4-14  on the purchase of another vehicle.]

4-15      4.  For the purpose of a sale of a vehicle by a seller who is not

4-16  required to be registered with the Department of Taxation, the sales

4-17  price is the value established in the manner set forth in

4-18  NRS 374.112.

4-19      Sec. 6.  NRS 374.375 is hereby amended to read as follows:

4-20      374.375  The taxpayer shall deduct and withhold from the taxes

4-21  otherwise due from him [1.25]0.75 percent thereof to reimburse

4-22  himself for the cost of collecting the tax.

4-23      Sec. 7.  NRS 375.020 is hereby amended to read as follows:

4-24      375.020  1.  A tax, at the rate of:

4-25      (a) In a county whose population is 400,000 or more, [$1.25;]

4-26  $1.75; and

4-27      (b) In a county whose population is less than 400,000, [65

4-28  cents,] $1.15,

4-29  for each $500 of value or fraction thereof, is hereby imposed on

4-30  each deed by which any lands, tenements or other realty is granted,

4-31  assigned, transferred or otherwise conveyed to, or vested in, another

4-32  person, if the consideration or value of the interest or property

4-33  conveyed exceeds $100.

4-34      2.  The amount of tax must be computed on the basis of the

4-35  value of the transferred real property as declared pursuant to

4-36  NRS 375.060.

4-37      Sec. 8.  NRS 375.070 is hereby amended to read as follows:

4-38      375.070  1.  The county recorder shall transmit the proceeds of

4-39  the real property transfer tax at the end of each quarter in the

4-40  following manner:

4-41      (a) An amount equal to that portion of the proceeds which is

4-42  equivalent to 10 cents for each $500 of value or fraction thereof

4-43  must be transmitted to the State Controller who shall deposit that

4-44  amount in the Account for Low-Income Housing created pursuant to

4-45  NRS 319.500.

5-1  (b) An amount equal to that portion of the proceeds which is

5-2  equivalent to 50 cents for each $500 of value or fraction thereof

5-3  must be transmitted to the Department for deposit in the Tax

5-4  Distribution Account.

5-5  (c) In a county whose population is more than 400,000, an

5-6  amount equal to that portion of the proceeds which is equivalent to

5-7  60 cents for each $500 of value or fraction thereof must be

5-8  transmitted to the county treasurer for deposit in the county school

5-9  district’s fund for capital projects established pursuant to NRS

5-10  387.328, to be held and expended in the same manner as other

5-11  money deposited in that fund.

5-12      [(c)] (d) The remaining proceeds must be transmitted to the

5-13  State Controller for deposit in the Local Government Tax

5-14  Distribution Account created by NRS 360.660 for credit to the

5-15  respective accounts of Carson City and each county.

5-16      2.  In addition to any other authorized use of the proceeds it

5-17  receives pursuant to subsection 1, a county or city may use the

5-18  proceeds to pay expenses related to or incurred for the development

5-19  of affordable housing for families whose income does not exceed 80

5-20  percent of the median income for families residing in the same

5-21  county, as that percentage is defined by the United States

5-22  Department of Housing and Urban Development. A county or city

5-23  that uses the proceeds in that manner must give priority to the

5-24  development of affordable housing for persons who are disabled or

5-25  elderly.

5-26      3.  The expenses authorized by subsection 2 include, but are not

5-27  limited to:

5-28      (a) The costs to acquire land and developmental rights;

5-29      (b) Related predevelopment expenses;

5-30      (c) The costs to develop the land, including the payment of

5-31  related rebates;

5-32      (d) Contributions toward down payments made for the purchase

5-33  of affordable housing; and

5-34      (e) The creation of related trust funds.

5-35      Sec. 9.  NRS 244.3352 is hereby amended to read as follows:

5-36      244.3352  1.  The board of county commissioners:

5-37      (a) In a county whose population is 400,000 or more, shall

5-38  impose a tax at a rate of [2] 3 percent; and

5-39      (b) In a county whose population is less than 400,000, shall

5-40  impose a tax at the rate of [1] 2percent,

5-41  of the gross receipts from the rental of transient lodging in that

5-42  county upon all persons in the business of providing lodging. This

5-43  tax must be imposed by the board of county commissioners in each

5-44  county, regardless of the existence or nonexistence of any other

5-45  license fee or tax imposed on the revenues from the rental of

6-1  transient lodging. The ordinance imposing the tax must include a

6-2  schedule for the payment of the tax and the provisions of

6-3  subsection 4.

6-4  2.  The tax imposed pursuant to subsection 1 must be collected

6-5  and administered pursuant to NRS 244.335.

6-6  3.  The tax imposed pursuant to subsection 1 may be collected

6-7  from the paying guests and may be shown as an addition to the

6-8  charge for the rental of transient lodging. The person providing the

6-9  transient lodging is liable to the county for the tax whether or not it

6-10  is actually collected from the paying guest.

6-11      4.  If the tax imposed pursuant to subsection 1 is not paid within

6-12  the time set forth in the schedule for payment, the county shall

6-13  charge and collect in addition to the tax:

6-14      (a) A penalty of not more than 10 percent of the amount due,

6-15  exclusive of interest, or an administrative fee established by the

6-16  board of county commissioners, whichever is greater; and

6-17      (b) Interest on the amount due at the rate of not more than 1.5

6-18  percent per month or fraction thereof from the date on which the tax

6-19  became due until the date of payment.

6-20      5.  As used in this section, “gross receipts from the rental of

6-21  transient lodging” does not include the tax imposed and collected

6-22  from paying guests pursuant to this section or NRS 268.096.

6-23      Sec. 10.  NRS 244.3354 is hereby amended to read as follows:

6-24      244.3354  The proceeds of the tax imposed pursuant to NRS

6-25  244.3352 and any applicable penalty or interest must be distributed

6-26  as follows:

6-27      1.  In a county whose population is 400,000 or more:

6-28      (a) An amount that is equal to that portion of the proceeds

6-29  which is equivalent to 1 percent of the gross receipts from the

6-30  rental of transient lodging must be transmitted to the Department

6-31  of Taxation for deposit in the Tax Distribution Account.

6-32      (b) The remaining proceeds must be transmitted as follows:

6-33          (1) Three-eighths of the first 1 percent of theremaining

6-34  proceeds must be paid to the Department of Taxation for deposit

6-35  with the State Treasurer for credit to the Fund for the Promotion of

6-36  Tourism.

6-37      [(b) The remaining]

6-38          (2) All other proceeds must be transmitted to the county

6-39  treasurer for deposit in the county school district’s fund for capital

6-40  projects established pursuant to NRS 387.328, to be held and

6-41  expended in the same manner as other money deposited in that fund.

6-42      2.  In a county whose population is less than 400,000:

6-43      (a)An amount that is equal to that portion of the proceeds

6-44  which is equivalent to 1 percent of the gross receipts from the

7-1  rental of transient lodging must be transmitted to the Department

7-2  of Taxation for deposit in the Tax Distribution Account.

7-3  (b) The remaining proceeds must be transmitted as follows:

7-4       (1) Three-eighths must be paid to the Department of

7-5  Taxation for deposit with the State Treasurer for credit to the Fund

7-6  for the Promotion of Tourism.

7-7  [(b)] (2) Five-eighths must be deposited with the county fair

7-8  and recreation board created pursuant to NRS 244A.599 or, if no

7-9  such board is created, with the board of county commissioners, to be

7-10  used to advertise the resources of that county related to tourism,

7-11  including available accommodations, transportation, entertainment,

7-12  natural resources and climate, and to promote special events related

7-13  thereto.

7-14      Sec. 11.  NRS 244.3356 is hereby amended to read as follows:

7-15      244.3356  The proceeds of the tax imposed pursuant to NRS

7-16  244.3352 that are not transmitted to the Department of Taxation

7-17  for deposit in the Tax Distribution Account may not be used:

7-18      1.  As additional security for the payment of, or to redeem, any

7-19  general obligation bonds issued pursuant to NRS 244A.597 to

7-20  244A.655, inclusive.

7-21      2.  To defray the costs of collecting or administering the tax

7-22  incurred by the county fair and recreation board.

7-23      3.  To operate and maintain recreational facilities under the

7-24  jurisdiction of the county fair and recreation board.

7-25      4.  To improve and expand recreational facilities authorized by

7-26  NRS 244A.597 to 244A.655, inclusive.

7-27      5.  To construct, purchase or acquire such recreational facilities.

7-28      Sec. 12.  NRS 244.3357 is hereby amended to read as follows:

7-29      244.3357  On or before August 15 of each year, the board of

7-30  county commissioners in each county shall submit a report to the

7-31  Department of Taxation which states:

7-32      1.  The rate of all taxes imposed on the revenues from the rental

7-33  of transient lodging pursuant to NRS 244.335 and 244.3352 and any

7-34  special act in the preceding fiscal year;

7-35      2.  The total amount of revenue collected from all taxes

7-36  imposed on the revenues from the rental of transient lodging

7-37  pursuant to NRS 244.335 and 244.3352 and any special act in the

7-38  preceding fiscal year; and

7-39      3.  The manner in which the revenue that was not transmitted

7-40  to the Department of Taxation for deposit in the Tax Distribution

7-41  Account was used in the previous fiscal year.

7-42      Sec. 13.  NRS 268.096 is hereby amended to read as follows:

7-43      268.096  1.  The city council or other governing body of each

7-44  incorporated city:

8-1  (a) In a county whose population is 400,000 or more, shall

8-2  impose a tax at a rate of [2] 3 percent; and

8-3  (b) In a county whose population is less than 400,000, shall

8-4  impose a tax at the rate of [1]2 percent,

8-5  of the gross receipts from the rental of transient lodging in that city

8-6  upon all persons in the business of providing lodging. This tax must

8-7  be imposed by the city council or other governing body of each

8-8  incorporated city, regardless of the existence or nonexistence of any

8-9  other license fee or tax imposed on the revenues from the rental of

8-10  transient lodging. The ordinance imposing the tax must include a

8-11  schedule for the payment of the tax and the provisions of

8-12  subsection 4.

8-13      2.  The tax imposed pursuant to subsection 1 must be collected

8-14  and administered pursuant to NRS 268.095.

8-15      3.  The tax imposed pursuant to subsection 1 may be collected

8-16  from the paying guests and may be shown as an addition to the

8-17  charge for the rental of transient lodging. The person providing the

8-18  transient lodging is liable to the city for the tax whether or not it is

8-19  actually collected from the paying guest.

8-20      4.  If the tax imposed pursuant to subsection 1 is not paid within

8-21  the time set forth in the schedule for payment, the city shall charge

8-22  and collect in addition to the tax:

8-23      (a) A penalty of not more than 10 percent of the amount due,

8-24  exclusive of interest, or an administrative fee established by the

8-25  governing body, whichever is greater; and

8-26      (b) Interest on the amount due at the rate of not more than 1.5

8-27  percent per month or fraction thereof from the date on which the tax

8-28  became due until the date of payment.

8-29      5.  As used in this section, “gross receipts from the rental of

8-30  transient lodging” does not include the tax imposed or collected

8-31  from paying guests pursuant to this section or NRS 244.3352.

8-32      Sec. 14.  NRS 268.0962 is hereby amended to read as follows:

8-33      268.0962  The proceeds of the tax imposed pursuant to NRS

8-34  268.096 and any applicable penalty or interest must be distributed as

8-35  follows:

8-36      1.  In a county whose population is 400,000 or more:

8-37      (a) An amount that is equal to that portion of the proceeds

8-38  which is equivalent to 1 percent of the gross receipts from the

8-39  rental of transient lodging must be transmitted to the Department

8-40  of Taxation for deposit in the Tax Distribution Account.

8-41      (b) The remaining proceeds must be transmitted as follows:

8-42          (1) Three-eighths of the first 1 percent of theremaining

8-43  proceeds must be paid to the Department of Taxation for deposit

8-44  with the State Treasurer for credit to the Fund for the Promotion of

8-45  Tourism.

9-1  [(b) The remaining]

9-2       (2) All other proceeds must be transmitted to the county

9-3  treasurer for deposit in the county school district’s fund for capital

9-4  projects established pursuant to NRS 387.328, to be held and

9-5  expended in the same manner as other money deposited in that fund.

9-6  2.  In a county whose population is less than 400,000:

9-7  (a) An amount that is equal to that portion of the proceeds

9-8  which is equivalent to 1 percent of the gross receipts from the

9-9  rental of transient lodging must be transmitted to the Department

9-10  of Taxation for deposit in the Tax Distribution Account.

9-11      (b) The remaining proceeds must be transmitted as follows:

9-12          (1) Three-eighths must be paid to the Department of

9-13  Taxation for deposit with the State Treasurer for credit to the Fund

9-14  for the Promotion of Tourism.

9-15      [(b)] (2) Five-eighths must be deposited with the county fair

9-16  and recreation board created pursuant to NRS 244A.599 or, if no

9-17  such board is created, with the city council or other governing body

9-18  of the incorporated city, to be used to advertise the resources of that

9-19  county or incorporated city related to tourism, including available

9-20  accommodations, transportation, entertainment, natural resources

9-21  and climate, and to promote special events related thereto.

9-22      Sec. 15.  NRS 268.0964 is hereby amended to read as follows:

9-23      268.0964  The proceeds of the tax imposed pursuant to NRS

9-24  268.096 that are not transmitted to the Department of Taxation for

9-25  deposit in the Tax Distribution Account may not be used:

9-26      1.  As additional security for the payment of, or to redeem, any

9-27  general obligation bonds issued pursuant to NRS 244A.597.

9-28      2.  To defray the costs of collecting or administering the tax

9-29  incurred by the county fair and recreation board.

9-30      3.  To operate and maintain recreational facilities under the

9-31  jurisdiction of the county fair and recreation board.

9-32      4.  To improve and expand recreational facilities authorized by

9-33  NRS 244A.597 to 244A.655, inclusive.

9-34      5.  To construct, purchase or acquire such recreational facilities.

9-35      Sec. 16.  NRS 268.0966 is hereby amended to read as follows:

9-36      268.0966  On or before August 15 of each year, the governing

9-37  body of each city shall submit a report to the Department of

9-38  Taxation which states:

9-39      1.  The rate of all taxes imposed on the revenues from the rental

9-40  of transient lodging pursuant to NRS 268.095 and 268.096 and any

9-41  special act in the preceding fiscal year;

9-42      2.  The total amount of revenue collected from all taxes

9-43  imposed on the revenues from the rental of transient lodging

9-44  pursuant to NRS 268.095 and 268.096 and any special act in the

9-45  preceding fiscal year; and

10-1      3.  The manner in which the revenue that was not transmitted

10-2  to the Department of Taxation for deposit in the Tax Distribution

10-3  Account was used in the previous fiscal year.

10-4      Sec. 17.  NRS 463.320 is hereby amended to read as follows:

10-5      463.320  1.  All gaming license fees imposed by the provisions

10-6  of NRS 463.370, 463.373 to 463.383, inclusive, and 463.3855 must

10-7  be collected and disposed of as provided in this section.

10-8      2.  All state gaming license fees and penalties must be collected

10-9  by the Commission and paid over immediately to the State

10-10  Treasurer to be disposed of as follows:

10-11     (a) All state gaming license fees and penalties other than the

10-12  license fees imposed by the provisions of NRS 463.370 and 463.380

10-13  must be deposited for credit to the State General Fund.

10-14     (b) All state gaming license fees imposed by the provisions of

10-15  NRS 463.370 must be disposed of as follows:

10-16         (1) An amount equal to that portion of the proceeds which

10-17  is equivalent to one-eighth of 1 percent of the gross revenue of the

10-18  licensees must be transmitted to the Department of Taxation for

10-19  deposit in the Tax Distribution Account.

10-20         (2) The remaining proceeds must be deposited for credit to

10-21  the State General Fund.

10-22     (c) All state gaming license fees imposed by the provisions of

10-23  NRS 463.380 must, after deduction of costs of administration and

10-24  collection, be divided equally among the various counties and

10-25  transmitted to the respective county treasurers. Such fees, except as

10-26  otherwise provided in this section, must be deposited by the county

10-27  treasurer in the county general fund and be expended for county

10-28  purposes. If the board of county commissioners desires to apportion

10-29  and allocate all or a portion of such fees to one or more cities or

10-30  towns within the county, the board of county commissioners shall,

10-31  annually, before the preparation of the city or town budget or

10-32  budgets as required by chapter 354 of NRS, adopt a resolution so

10-33  apportioning and allocating a percentage of such fees anticipated to

10-34  be received during the coming fiscal year to such city or cities or

10-35  town or towns for the next fiscal year commencing July 1. After the

10-36  adoption of the resolution the percentage so apportioned and

10-37  allocated must be converted to a dollar figure and included in city or

10-38  town budget or budgets as an estimated receipt for the next fiscal

10-39  year. Quarterly , upon receipt of the money from the State, the

10-40  county treasurer shall deposit an amount of money equal to the

10-41  percentage so apportioned and allocated to the credit of the city or

10-42  town fund to be used for city or town purposes, and the balance

10-43  remaining must be deposited in the county general fund and must be

10-44  expended for county purposes.

 

11-1      Sec. 18.  NRS 463.370 is hereby amended to read as follows:

11-2      463.370  1.  Except as otherwise provided in NRS 463.373,

11-3  the Commission shall charge and collect from each licensee a

11-4  license fee based upon all the gross revenue of the licensee as

11-5  follows:

11-6      (a) Three and one-eighth percent of all the gross revenue of the

11-7  licensee which does not exceed $50,000 per calendar month;

11-8      (b) Four and one-eighth percent of all the gross revenue of the

11-9  licensee which exceeds $50,000 per calendar month and does not

11-10  exceed $134,000 per calendar month; and

11-11     (c) Six and [one-quarter] three-eighths percent of all the gross

11-12  revenue of the licensee which exceeds $134,000 per calendar month.

11-13     2.  Unless the licensee has been operating for less than a full

11-14  calendar month, the Commission shall charge and collect the fee

11-15  prescribed in subsection 1, based upon the gross revenue for the

11-16  preceding calendar month, on or before the 24th day of the

11-17  following month. Except for the fee based on the first full month of

11-18  operation, the fee is an estimated payment of the license fee for the

11-19  third month following the month whose gross revenue is used as its

11-20  basis.

11-21     3.  When a licensee has been operating for less than a full

11-22  calendar month, the Commission shall charge and collect the fee

11-23  prescribed in subsection 1, based on the gross revenue received

11-24  during that month, on or before the 24th day of the following

11-25  calendar month of operation. After the first full calendar month of

11-26  operation, the Commission shall charge and collect the fee based on

11-27  the gross revenue received during that month, on or before the 24th

11-28  day of the following calendar month. The payment of the fee due for

11-29  the first full calendar month of operation must be accompanied by

11-30  the payment of a fee equal to three times the fee for the first full

11-31  calendar month. This additional amount is an estimated payment of

11-32  the license fees for the next 3 calendar months. Thereafter, each

11-33  license fee must be paid in the manner described in subsection 2.

11-34  Any deposit held by the Commission on July 1, 1969, must be

11-35  treated as an advance estimated payment.

11-36     4.  All revenue received from any game or gaming device

11-37  which is operated on the premises of a licensee, regardless of

11-38  whether any portion of the revenue is shared with any other person,

11-39  must be attributed to the licensee for the purposes of this section and

11-40  counted as part of the gross revenue of the licensee. Any other

11-41  person, including, without limitation, an operator of an inter-casino

11-42  linked system, who is authorized to receive a share of the revenue

11-43  from any game, gaming device or inter-casino linked system that is

11-44  operated on the premises of a licensee is liable to the licensee for

11-45  that person’s proportionate share of the license fees paid by the

12-1  licensee pursuant to this section and shall remit or credit the full

12-2  proportionate share to the licensee on or before the 24th day of each

12-3  calendar month. The proportionate share of an operator of an inter-

12-4  casino linked system must be based on all compensation and other

12-5  consideration received by the operator of the inter-casino linked

12-6  system, including, without limitation, amounts that accrue to the

12-7  meter of the primary progressive jackpot of the inter-casino linked

12-8  system and amounts that fund the reserves of such a jackpot, subject

12-9  to all appropriate adjustments for deductions, credits, offsets and

12-10  exclusions that the licensee is entitled to take or receive pursuant to

12-11  the provisions of this chapter. A licensee is not liable to any other

12-12  person authorized to receive a share of the licensee’s revenue from

12-13  any game, gaming device or inter-casino linked system that is

12-14  operated on the premises of the licensee for that person’s

12-15  proportionate share of the license fees to be remitted or credited to

12-16  the licensee by that person pursuant to this section.

12-17     5.  An operator of an inter-casino linked system shall not enter

12-18  into any agreement or arrangement with a licensee that provides for

12-19  the operator of the inter-casino linked system to be liable to the

12-20  licensee for less than its full proportionate share of the license fees

12-21  paid by the licensee pursuant to this section, whether accomplished

12-22  through a rebate, refund, charge-back or otherwise.

12-23     6.  Any person required to pay a fee pursuant to this section

12-24  shall file with the Commission, on or before the 24th day of each

12-25  calendar month, a report showing the amount of all gross revenue

12-26  received during the preceding calendar month. Each report must be

12-27  accompanied by:

12-28     (a) The fee due based on the revenue of the month covered by

12-29  the report; and

12-30     (b) An adjustment for the difference between the estimated fee

12-31  previously paid for the month covered by the report, if any, and the

12-32  fee due for the actual gross revenue earned in that month. If

12-33  the adjustment is less than zero, a credit must be applied to the

12-34  estimated fee due with that report.

12-35     7.  If the amount of license fees required to be reported and paid

12-36  pursuant to this section is later determined to be greater or less than

12-37  the amount actually reported and paid, the Commission shall:

12-38     (a) Charge and collect the additional license fees determined to

12-39  be due, with interest thereon until paid; or

12-40     (b) Refund any overpayment to the person entitled thereto

12-41  pursuant to this chapter, with interest thereon.

12-42  Interest pursuant to paragraph (a) must be computed at the rate

12-43  prescribed in NRS 17.130 from the first day of the first month

12-44  following the due date of the additional license fees until paid.

12-45  Interest pursuant to paragraph (b) must be computed at one-half the

13-1  rate prescribed in NRS 17.130 from the first day of the first month

13-2  following the date of overpayment until paid.

13-3      8.  Failure to pay the fees provided for in this section shall be

13-4  deemed a surrender of the license at the expiration of the period for

13-5  which the estimated payment of fees has been made, as established

13-6  in subsection 2.

13-7      9.  Except as otherwise provided in NRS 463.386, the amount

13-8  of the fee prescribed in subsection 1 must not be prorated.

13-9      10.  Except as otherwise provided in NRS 463.386, if a licensee

13-10  ceases operation, the Commission shall:

13-11     (a) Charge and collect the additional license fees determined to

13-12  be due with interest computed pursuant to paragraph (a) of

13-13  subsection 7; or

13-14     (b) Refund any overpayment to the licensee with interest

13-15  computed pursuant to paragraph (b) of subsection 7,

13-16  based upon the gross revenue of the licensee during the last 3

13-17  months immediately preceding the cessation of operation, or

13-18  portions of those last 3 months.

13-19     11.  If , in any month, the amount of gross revenue is less than

13-20  zero, the licensee may offset the loss against gross revenue in

13-21  succeeding months until the loss has been fully offset.

13-22     12.  If , in any month, the amount of the license fee due is less

13-23  than zero, the licensee is entitled to receive a credit against any

13-24  license fees due in succeeding months until the credit has been fully

13-25  offset.

13-26     Sec. 19.  NRS 680B.027 is hereby amended to read as follows:

13-27     680B.027  1.  Except as otherwise provided in NRS 680B.033

13-28  [, 680B.050] and 690C.110, for the privilege of transacting business

13-29  in this state, each insurer shall pay to the Department of Taxation a

13-30  tax upon his net direct premiums and net direct considerations

13-31  written at the rate of 3.5 percent.

13-32     2.  The tax must be paid in the manner required by NRS

13-33  680B.030 and 680B.032.

13-34     3.  The Commissioner or the Executive Director of the

13-35  Department of Taxation may require at any time verified

13-36  supplemental statements with reference to any matter pertinent to

13-37  the proper assessment of the tax.

13-38     Sec. 20.  NRS 680B.060 is hereby amended to read as follows:

13-39     680B.060  1.  The taxes imposed under NRS 680B.027 must

13-40  be collected by the Department of Taxation [and promptly] and be

13-41  disposed of as follows:

13-42     (a) The Department of Taxation shall deposit an amount equal

13-43  to 5.5 percent of the proceeds in the Tax Distribution Account.

13-44     (b) The remaining proceeds must be deposited with the State

13-45  Treasurer for credit to the State General Fund.

14-1      2.  If the tax is not paid by the insurer on or before the date

14-2  required for payment, the tax then becomes delinquent, and payment

14-3  thereof may be enforced by court action instituted on behalf of the

14-4  State by the Attorney General. The Attorney General may employ

14-5  additional counsel in the city where the home office of the insurer is

14-6  located, subject to the approval of compensation for such services

14-7  by the State Board of Examiners. The administrative and substantive

14-8  enforcement provisions of chapters 360 and 372 of NRS apply to the

14-9  enforcement of the taxes imposed under NRS 680B.027.

14-10     3.  Upon the tax becoming delinquent, the Executive Director

14-11  of the Department of Taxation shall notify the Commissioner, who

14-12  shall suspend or revoke the insurer’s certificate of authority pursuant

14-13  to NRS 680A.190.

14-14     4.  If a dispute arises between an insurer and the State as to the

14-15  amount of tax, if any, payable, the insurer is entitled to pay under

14-16  protest the tax in the amount assessed by the Department of

14-17  Taxation, without waiving or otherwise affecting any right of the

14-18  insurer to recover any amount determined, through appropriate legal

14-19  action taken by the insurer against the Department of Taxation, to

14-20  have been in excess of the amount of tax lawfully payable.

14-21     5.  [All] Except as otherwise provided in subsection 1, all

14-22  taxes, fees, licenses, fines and charges collected under this Code[,

14-23  including the general premium tax provided for under NRS

14-24  680B.027 and as increased in any instances pursuant to NRS

14-25  680A.330,] must be promptly deposited with the State Treasurer for

14-26  credit to the State General Fund.

14-27     Sec. 21. At the general election on November 2, 2004, a

14-28  proposal must be submitted to the registered voters of this state to

14-29  amend the Sales and Use Tax Act, which was enacted by the 47th

14-30  Session of the Legislature of the State of Nevada and approved by

14-31  the Governor in 1955, and subsequently approved by the people of

14-32  this state at the general election held on November 6, 1956.

14-33     Sec. 22.  At the time and in the manner provided by law, the

14-34  Secretary of State shall transmit the proposed act to the several

14-35  county clerks, and the county clerks shall cause it to be published

14-36  and posted as provided by law.

14-37     Sec. 23.  The proclamation and notice to the voters given by

14-38  the county clerks pursuant to law must be in substantially the

14-39  following form:

14-40     Notice is hereby given that at the general election on

14-41  November 2, 2004, a question will appear on the ballot for

14-42  the adoption or rejection by the registered voters of the State

14-43  of the following proposed act:

14-44  AN ACT to amend an Act entitled “An Act to provide

14-45  revenue for the State of Nevada; providing for sales

15-1  and use taxes; providing for the manner of collection;

15-2  defining certain terms; providing penalties for violation,

15-3  and other matters properly relating thereto.” approved

15-4  March 29, 1955, as amended.

 

15-5  THE PEOPLE OF THE STATE OF NEVADA

15-6  DO ENACT AS FOLLOWS:

 

15-7      Section1. Section 61 of the above-entitled act, being

15-8  chapter 397, Statutes of Nevada 1955, at page 733, as

15-9  amended by chapter 306, Statutes of Nevada 1969, at page

15-10  533, is hereby repealed.

15-11     Sec.2. This act becomes effective on January 1, 2005.

15-12     Sec. 24.  The ballot page assemblies and the paper ballots to be

15-13  used in voting on the question must present the question in

15-14  substantially the following form:

15-15     Shall the Sales and Use Tax Act of 1955 be amended to

15-16  repeal the exemption from the taxes imposed by this act on

15-17  the gross receipts from the sale and storage, use or other

15-18  consumption of tangible property provided for property

15-19  which becomes an ingredient or component part of any

15-20  newspaper regularly issued at average intervals not exceeding

15-21  1 week and any such newspaper?

15-22  Yes ¨          No ¨

15-23     Sec. 25.  The explanation of the question which must appear on

15-24  each paper ballot and sample ballot and in every publication and

15-25  posting of notice of the question must be in substantially the

15-26  following form:

 

15-27  (Explanation of Question)

15-28     The proposed amendment to the Sales and Use Tax Act of

15-29  1955 would repeal the exemption from the taxes imposed by

15-30  this act on the gross receipts from the sale and storage, use or

15-31  other consumption of tangible property provided for property

15-32  which becomes an ingredient or component part of any

15-33  newspaper regularly issued at average intervals not exceeding

15-34  1 week and any such newspaper. If this proposal is adopted,

15-35  the Legislature has provided that the Local School Support

15-36  Tax Law and certain analogous taxes on retail sales will be

15-37  amended to provide the same exemption.

15-38     Sec. 26.  If a majority of the votes cast on the question is yes,

15-39  the amendment to the Sales and Use Tax Act of 1955 becomes

15-40  effective on January 1, 2005. If less than a majority of votes cast on

15-41  the question is yes, the question fails and the amendment to the

15-42  Sales and Use Tax Act of 1955 does not become effective.

16-1      Sec. 27. All general election laws not inconsistent with this act

16-2  are applicable.

16-3      Sec. 28. Any informalities, omissions or defects in the content

16-4  or making of the publications, proclamations or notices provided for

16-5  in this act and by the general election laws under which this election

16-6  is held must be so construed as not to invalidate the adoption of the

16-7  act by a majority of the registered voters voting on the question if it

16-8  can be ascertained with reasonable certainty from the official returns

16-9  transmitted to the Office of the Secretary of State whether the

16-10  proposed amendment was adopted by a majority of those registered

16-11  voters.

16-12     Sec. 29. 1.  NRS 680B.050 and 680B.055 are hereby

16-13  repealed.

16-14     2.  NRS 374.320 is hereby repealed.

16-15     Sec. 30.  1.  This section and sections 21 to 28, inclusive, of

16-16  this act become effective upon passage and approval.

16-17     2.  Sections 1 to 20, inclusive, and subsection 1 of section 29 of

16-18  this act become effective on October 1, 2003.

16-19     3.  Subsection 2 of section 29 of this act becomes effective on

16-20  January 1, 2005, only if the proposal submitted pursuant to sections

16-21  21 to 28, inclusive, of this act is approved by the voters at the

16-22  general election on November 2, 2004.

 

16-23  TEXT OF REPEALED SECTIONS

 

16-24     374.320 Newspapers. There are exempted from the taxes

16-25   imposed by this chapter the gross receipts from the sale of, and the

16-26   storage, use or other consumption in a county of, tangible personal

16-27   property which becomes an ingredient or component part of any

16-28   newspaper regularly issued at average intervals not exceeding 1

16-29   week and any such newspaper.

16-30     680B.050  General tax on premiums: Credit if home office

16-31   or regional home office in Nevada.

16-32     1.  Except as otherwise provided in this section, a domestic or

16-33   foreign insurer which owns and substantially occupies and uses any

16-34   building in this state as its home office or as a regional home office

16-35   is entitled to the following credits against the tax otherwise imposed

16-36   by NRS 680B.027:

16-37     (a) An amount equal to 50 percent of the aggregate amount of

16-38   the tax as determined under NRS 680B.025 to 680B.039, inclusive;

16-39   and

17-1      (b) An amount equal to the full amount of ad valorem taxes paid

17-2  by the insurer during the calendar year next preceding the filing of

17-3   the report required by NRS 680B.030, upon the home office or

17-4   regional home office together with the land, as reasonably required

17-5   for the convenient use of the office, upon which the home office or

17-6   regional home office is situated.

17-7  These credits must not reduce the amount of tax payable to less than

17-8   20 percent of the tax otherwise payable by the insurer under NRS

17-9   680B.027.

17-10     2.  As used in this section, a “regional home office” means an

17-11   office of the insurer performing for an area covering two or more

17-12   states, with a minimum of 25 employees on its office staff, the

17-13   supervision, underwriting, issuing and servicing of the insurance

17-14   business of the insurer.

17-15     3.  The insurer shall, on or before March 15 of each year,

17-16   furnish proof to the satisfaction of the Executive Director of the

17-17   Department of Taxation, on forms furnished by or acceptable to the

17-18   Executive Director, as to its entitlement to the tax reduction

17-19   provided for in this section. A determination of the Executive

17-20   Director of the Department of Taxation pursuant to this section is

17-21   not binding upon the Commissioner for the purposes of NRS

17-22   682A.240.

17-23     4.  An insurer is not entitled to the credits provided in this

17-24   section unless:

17-25     (a) The insurer owned the property upon which the reduction is

17-26   based for the entire year for which the reduction is claimed; and

17-27     (b) The insurer occupied at least 70 percent of the usable space

17-28   in the building to transact insurance or the insurer is a general or

17-29   limited partner and occupies 100 percent of its ownership interest in

17-30   the building.

17-31     5.  If two or more insurers under common ownership or

17-32   management and control jointly own in equal interest, and jointly

17-33   occupy and use such a home office or regional home office in this

17-34   state for the conduct and administration of their respective

17-35   insurance businesses as provided in this section, each of the

17-36   insurers is entitled to the credits provided for by this section if

17-37   otherwise qualified therefor under this section.

17-38     680B.055  General tax on premiums: Eligibility for credit

17-39   where home office or regional home office owned by limited

17-40   partnership; proportion of ad valorem tax qualified for credit.

17-41     1.  For the purposes of eligibility for the credit provided by

17-42   NRS 680B.050, if an insurer is a partner, general or limited, in a

17-43   limited partnership which owns a building used by the insurer as its

17-44   home office or a regional home office, the insurer shall be deemed

17-45   to own the building so used if:

18-1      (a) The insurer’s proportionate interest in the partnership is

18-2  equal to or greater than the proportion which the floor area of the

18-3   building or portion thereof so used bears to the total floor area of

18-4   the buildings on the contiguous real property owned by the

18-5   partnership at the location of the building so used; or

18-6      (b) The insurer’s interest in the partnership is 50 percent or

18-7   more.

18-8      2.  The ad valorem tax paid by the insurer shall be deemed to be

18-9   that proportion of the total ad valorem tax paid by the partnership

18-10   upon its contiguous real property at the location of the building

18-11   which the floor area of the building so used bears to the total floor

18-12   area of the buildings on the contiguous real property.

 

18-13  H