Assembly Bill No. 514–Committee on Taxation

 

CHAPTER..........

 

AN ACT relating to taxation; providing for the enactment of certain provisions that are necessary to carry out the Streamlined Sales and Use Tax Agreement; providing for the electronic registration of sellers; establishing requirements for determining the place of sales for the purposes of sales and use taxes; establishing requirements for claiming an exemption from such taxes; providing for the electronic payment of such taxes; providing for the submission to the voters of a question relating to whether the Sales and Use Tax Act of 1955 should be amended to conform to the Agreement; 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 360.300 is hereby amended to read as follows:

1-2  360.300  1.  If a person fails to file a return or the Department

1-3   is not satisfied with the return or returns of any tax, contribution or

1-4   premium or amount of tax, contribution or premium required to be

1-5   paid to the State by any person, in accordance with the applicable

1-6   provisions of this chapter, chapter 360B, 362, 364A, 369, 370, 372,

1-7   372A, 374, 377, 377A or 444A of NRS, NRS 482.313, or chapter

1-8   585 or 680B of NRS as administered or audited by the Department,

1-9   it may compute and determine the amount required to be paid upon

1-10   the basis of:

1-11      (a) The facts contained in the return;

1-12      (b) Any information within its possession or that may come into

1-13   its possession; or

1-14      (c) Reasonable estimates of the amount.

1-15      2.  One or more deficiency determinations may be made with

1-16   respect to the amount due for one or for more than one period.

1-17      3.  In making its determination of the amount required to be

1-18   paid, the Department shall impose interest on the amount of tax

1-19   determined to be due, calculated at the rate and in the manner set

1-20   forth in NRS 360.417, unless a different rate of interest is

1-21   specifically provided by statute.

1-22      4.  The Department shall impose a penalty of 10 percent in

1-23   addition to the amount of a determination that is made in the case of

1-24   the failure of a person to file a return with the Department.

1-25      5.  When a business is discontinued, a determination may be

1-26   made at any time thereafter within the time prescribed in NRS

1-27   360.355 as to liability arising out of that business, irrespective of

2-1  whether the determination is issued before the due date of the

2-2  liability.

2-3  Sec. 2.  NRS 360.489 is hereby amended to read as follows:

2-4  360.489  1.  In determining the amount of [sales] :

2-5  (a) Sales tax due on a sale at retail, the rate of tax used must be

2-6   the sum of the rates of all taxes imposed upon sales at retail in :

2-7       (1) The county determined pursuant to the provisions of

2-8   sections 13 to 18, inclusive, of this act; or

2-9       (2) If those provisions do not apply to the sale, the county in

2-10   which the property is or will be delivered to the purchaser or his

2-11   agent or designee.

2-12      [2.  In determining the amount of use]

2-13      (b) Use tax due on the purchase of tangible personal property for

2-14   use, storage or other consumption in this state, the rate of tax used

2-15   must be the sum of the rates of all taxes imposed upon the use,

2-16   storage or other consumption of property in :

2-17          (1) The county determined pursuant to the provisions of

2-18   sections 13 to 18, inclusive, of this act; or

2-19          (2) If those provisions do not apply to the purchase, the

2-20   county in which the property is first used, stored or consumed.

2-21      2.  In determining the amount of taxes due pursuant to

2-22   subsection 1:

2-23      (a) The amount due must be computed to the third decimal

2-24   place and rounded to a whole cent using a method that rounds up

2-25   to the next cent if the numeral in the third decimal place is

2-26   greater than 4.

2-27      (b) A retailer may compute the amount due on a transaction

2-28   on the basis of each item involved in the transaction or a single

2-29   invoice for the entire transaction.

2-30      3.  On or before January 1 of each year the Department shall

2-31   transmit to each retailer to whom a permit has been issued a notice

2-32   which contains the provisions of subsections 1 and 2 and

2-33  NRS 372.365.

2-34      Sec. 3.  NRS 360.510 is hereby amended to read as follows:

2-35      360.510  1.  If any person is delinquent in the payment of any

2-36   tax or fee administered by the Department or if a determination has

2-37   been made against him which remains unpaid, the Department may:

2-38      (a) Not later than 3 years after the payment became delinquent

2-39   or the determination became final; or

2-40      (b) Not later than 6 years after the last recording of an abstract

2-41   of judgment or of a certificate constituting a lien for tax

2-42  owed,

2-43  give a notice of the delinquency and a demand to transmit

2-44   personally or by registered or certified mail to any person,

2-45   including, without limitation, any officer or department of this state

2-46   or any political subdivision or agency of this state, who has in his

3-1  possession or under his control any credits or other personal

3-2  property belonging to the delinquent, or owing any debts to the

3-3   delinquent or person against whom a determination has been made

3-4   which remains unpaid, or owing any debts to the delinquent or that

3-5   person. In the case of any state officer, department or agency, the

3-6   notice must be given to the officer, department or agency before

3-7  the Department presents the claim of the delinquent taxpayer to the

3-8   State Controller.

3-9  2.  A state officer, department or agency which receives such a

3-10   notice may satisfy any debt owed to it by that person before it

3-11   honors the notice of the Department.

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

3-13   by the demand may not transfer or otherwise dispose of the credits,

3-14   other personal property, or debts in his possession or under his

3-15   control at the time he received the notice until the Department

3-16   consents to a transfer or other disposition.

3-17      4.  Every person notified by a demand to transmit shall, within

3-18   10 days after receipt of the demand to transmit, inform the

3-19   Department of, and transmit to the Department all such credits,

3-20   other personal property, or debts in his possession, under his

3-21   control or owing by him within the time and in the manner

3-22   requested by the Department. Except as otherwise provided in

3-23   subsection 5, no further notice is required to be served to that

3-24   person.

3-25      5.  If the property of the delinquent taxpayer consists of a series

3-26   of payments owed to him, the person who owes or controls the

3-27   payments shall transmit the payments to the Department until

3-28   otherwise notified by the Department. If the debt of the delinquent

3-29   taxpayer is not paid within 1 year after the Department issued the

3-30   original demand to transmit, the Department shall issue another

3-31   demand to transmit to the person responsible for making the

3-32   payments informing him to continue to transmit payments to

3-33  the Department or that his duty to transmit the payments to the

3-34   Department has ceased.

3-35      6.  If the notice of the delinquency seeks to prevent the transfer

3-36   or other disposition of a deposit in a bank or credit union or other

3-37   credits or personal property in the possession or under the control

3-38   of a bank, credit union or other depository institution, the notice

3-39   must be delivered or mailed to any branch or office of the bank,

3-40   credit union or other depository institution at which the deposit is

3-41   carried or at which the credits or personal property is held.

3-42      7.  If any person notified by the notice of the delinquency

3-43   makes any transfer or other disposition of the property or debts

3-44   required to be withheld or transmitted, to the extent of the value of

3-45   the property or the amount of the debts thus transferred or paid, he

3-46   is liable to the State for any indebtedness due pursuant to this

3-47   chapter, or chapter 360B, 362, 364A, 369, 370, 372, 372A, 374,

3-48   377, 377A

4-1  or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS

4-2  from the person with respect to whose obligation the notice was

4-3   given if solely by reason of the transfer or other disposition the

4-4   State is unable to recover the indebtedness of the person with

4-5   respect to whose obligation the notice was given.

4-6  Sec. 4.  Chapter 360B of NRS is hereby amended by adding

4-7   thereto the provisions set forth as sections 5 to 24, inclusive, of this

4-8   act.

4-9  Sec. 5.  “Purchaser” means a person to whom a sale of

4-10   tangible personal property is made.

4-11      Sec. 6.  “Registered seller” means a seller registered pursuant

4-12   to section 9 of this act.

4-13      Sec. 7.  “Retail sale” means any sale, lease or rental for any

4-14   purpose other than for resale, sublease or subrent.

4-15      Sec. 8.  “Tangible personal property” means personal

4-16   property which may be seen, weighed, measured, felt or touched,

4-17   or which is in any other manner perceptible to the senses.

4-18      Sec. 9.  1.  The Department shall, in cooperation with any

4-19   other states that are members of the Agreement, establish and

4-20   maintain a central, electronic registration system that allows a

4-21   seller to register to collect and remit the sales and use taxes

4-22   imposed in this state and in the other states that are members of

4-23   the Agreement.

4-24      2.  A seller who registers pursuant to this section agrees to

4-25   collect and remit sales and use taxes in accordance with the

4-26   provisions of this chapter, the regulations of the Department and

4-27   the applicable law of each state that is a member of the

4-28   Agreement, including any state that becomes a member of the

4-29   Agreement after the registration of the seller pursuant to this

4-30   section. The cancellation or revocation of the registration of a

4-31   seller pursuant to this section, the withdrawal of a state from the

4-32   Agreement or the revocation of the Agreement does not relieve a

4-33   seller from liability pursuant to this subsection to remit any taxes

4-34   previously or subsequently collected on behalf of a state.

4-35      3.  When registering pursuant to this section, a seller may:

4-36      (a) Elect to use a certified service provider as its agent to

4-37   perform all the functions of the seller relating to sales and use

4-38   taxes, other than the obligation of the seller to remit the taxes on

4-39   its own purchases;

4-40      (b) Elect to use a certified automated system to calculate the

4-41   amount of sales or use taxes due on its sales transactions;

4-42      (c) Under such conditions as the Department deems

4-43   appropriate, elect to use its own proprietary automated system to

4-44   calculate the amount of sales or use taxes due on its sales

4-45   transactions; or

5-1  (d) Elect to use any other method authorized by the

5-2  Department for performing the functions of the seller relating to

5-3   sales and use taxes.

5-4  4.  A seller who registers pursuant to this section agrees to

5-5   submit its sales and use tax returns, and to remit any sales and

5-6   use taxes due, to the Department at such times and in such a

5-7   manner and format as the Department prescribes by regulation.

5-8  5.  The registration of a seller and the collection and

5-9   remission of sales and use taxes pursuant to this section may not

5-10   be considered as a factor in determining whether a seller has a

5-11   nexus with this state for the purposes of determining his liability

5-12   to pay any tax imposed by this state.

5-13      Sec. 10.  1.  The Department shall post on a website or other

5-14   Internet site that is operated or administered by or on behalf of

5-15   the Department:

5-16      (a) The rates of sales and use taxes for this state and for each

5-17   local government in this state that imposes such taxes. The

5-18   Department shall identify this state and each local government

5-19   using the Federal Information Processing Standards developed by

5-20   the National Institute of Standards and Technology.

5-21      (b) Any change in those rates.

5-22      (c) Any amendments to the statutory provisions and

5-23   administrative regulations of this state governing the registration

5-24   of sellers and the collection of sales and use taxes.

5-25      (d) Any change in the boundaries of local governments in this

5-26   state that impose sales and use taxes.

5-27      (e) The list maintained pursuant to section 11 of this act.

5-28      (f) Any other information the Department deems appropriate.

5-29      2.  The Department shall make a reasonable effort to provide

5-30   sellers with as much advance notice as possible of any changes or

5-31   amendments required to be posted pursuant to subsection 1 and

5-32   of any other changes in the information posted pursuant to

5-33   subsection 1. Except as otherwise provided in section 12 of this

5-34   act, the failure of the Department to provide such notice and the

5-35   failure of a seller to receive such notice does not affect the

5-36   obligation of the seller to collect and remit any applicable sales

5-37   and use taxes.

5-38      Sec. 11.  1.  The Department shall maintain a list that

5-39   denotes for each five-digit and nine-digit zip code in this state the

5-40   combined rates of sales taxes and the combined rates of use taxes

5-41   imposed in the area of that zip code, and the applicable taxing

5-42   jurisdictions. If the combined rate of all the sales taxes or use

5-43   taxes respectively imposed within the area of a zip code is not the

5-44   same for the entire area of the zip code, the Department shall

5-45   denote in the list the lowest combined tax rates for the entire zip

5-46   code.

6-1  2.  If a street address does not have a nine-digit zip code or if

6-2  a registered seller is unable to determine the nine-digit zip code of

6-3   a purchaser after exercising due diligence to determine that

6-4   information, that seller may, except as otherwise provided in

6-5   subsection 3, apply the rate denoted for the five-digit zip code in

6-6   the list maintained pursuant to this section. For the purposes of

6-7   this subsection, there is a rebuttable presumption that a registered

6-8   seller has exercised due diligence if the seller has attempted to

6-9   determine the nine-digit zip code of a purchaser by using software

6-10   approved by the Department which makes that determination

6-11   from the street address and five-digit zip code of the purchaser.

6-12      3.  The list maintained pursuant to this section does not apply

6-13   to and must not be used for any transaction regarding which a

6-14   purchased product is received by the purchaser at the business

6-15   location of the seller.

6-16      Sec. 12.  The Department shall waive any liability of a

6-17   registered seller and a certified service provider acting on behalf

6-18   of a registered seller who, as a result of his reasonable reliance on

6-19   the information posted pursuant to section 10 of this act or his

6-20   compliance with subsection 2 of section 11 of this act, collects the

6-21   incorrect amount of any sales or use tax imposed in this state, for:

6-22      1.   The amount of the sales or use tax which the registered

6-23   seller and certified service provider fail to collect as a result of

6-24   that reliance; and

6-25      2.  Any penalties and interest on that amount.

6-26      Sec. 13.  As used in sections 13 to 18, inclusive, of this act:

6-27      1.  “Receive” means taking possession of or making the first

6-28   use of tangible personal property, whichever occurs first. The

6-29   term does not include possession by a shipping company on

6-30   behalf of a purchaser.

6-31      2.  “Transportation equipment” means:

6-32      (a) Locomotives and railcars used for the carriage of persons

6-33   or property in interstate commerce.

6-34      (b) Trucks and truck-tractors having a manufacturer’s gross

6-35   vehicle weight rating of more than 10,000 pounds, and trailers,

6-36   semitrailers and passenger buses that are:

6-37          (1) Registered pursuant to the International Registration

6-38   Plan, as adopted by the Department of Motor Vehicles pursuant

6-39   to NRS 706.826; or

6-40          (2) Operated under the authority of a carrier who is

6-41   authorized by the Federal Government to engage in the carriage

6-42   of persons or property in interstate commerce.

6-43      (c) Aircraft operated by an air carrier who is authorized by the

6-44   Federal Government or a foreign government to engage in the

6-45   carriage of persons or property in interstate or foreign commerce.

7-1  (d) Containers designed for use on and component parts

7-2  attached or secured to any of the items described in paragraph (a),

7-3   (b) or (c).

7-4  Sec. 14.  1.  Except as otherwise provided in this section, for

7-5   the purpose of determining the liability of a seller for sales and

7-6   use taxes, a retail sale shall be deemed to take place at the

7-7   location determined pursuant to sections 13 to 18, inclusive, of

7-8   this act.

7-9  2.  Sections 13 to 18, inclusive, of this act do not:

7-10      (a) Affect any liability of a purchaser or lessee for a use tax.

7-11      (b) Apply to:

7-12          (1) The retail sale or transfer of watercraft, modular

7-13   homes, manufactured homes or mobile homes.

7-14          (2) The retail sale, other than the lease or rental, of motor

7-15   vehicles, trailers, semitrailers or aircraft that do not constitute

7-16   transportation equipment.

7-17      Sec. 15.  Except as otherwise provided in sections 13 to 18,

7-18   inclusive, of this act, the retail sale, excluding the lease or rental,

7-19   of tangible personal property shall be deemed to take place:

7-20      1.  If the property is received by the purchaser at a place of

7-21   business of the seller, at that place of business.

7-22      2.  If the property is not received by the purchaser at a place

7-23   of business of the seller:

7-24      (a) At the location indicated to the seller pursuant to any

7-25   instructions provided for the delivery of the property to the

7-26   purchaser or to another recipient who is designated by the

7-27   purchaser as his donee; or

7-28      (b) If no such instructions are provided and if known by the

7-29   seller, at the location where the purchaser or another recipient

7-30   who is designated by the purchaser as his donee, receives the

7-31   property.

7-32      3.  If subsections 1 and 2 do not apply, at the address of the

7-33   purchaser indicated in the business records of the seller that are

7-34   maintained in the ordinary course of the seller’s business, unless

7-35   the use of that address would constitute bad faith.

7-36      4.  If subsections 1, 2 and 3 do not apply, at the address of the

7-37   purchaser obtained during the consummation of the sale,

7-38   including, if no other address is available, the address of the

7-39   purchaser’s instrument of payment, unless the use of an address

7-40   pursuant to this subsection would constitute bad faith.

7-41      5.  In all other circumstances, at the address from which the

7-42   property was shipped or, if it was delivered electronically, at

7-43  the address from which it was first available for transmission by

7-44   the seller.

 

8-1  Sec. 16.  1.  Except as otherwise provided in this section and

8-2  sections 14, 17 and 18 of this act, the lease or rental of tangible

8-3   personal property shall be deemed to take place as follows:

8-4  (a) If the lease or rental requires recurring periodic payments,

8-5   for the purposes of:

8-6       (1) The first periodic payment, the location of the lease or

8-7   rental shall be deemed to take place at the location determined

8-8   pursuant to section 15 of this act; and

8-9       (2) Subsequent periodic payments, the location of the lease

8-10   or rental shall be deemed to take place at the primary location of

8-11   the property. For the purposes of this subparagraph, the primary

8-12   location of the property shall be deemed to be the address for the

8-13   property provided by the lessee and set forth in the records

8-14   maintained by the lessor in the ordinary course of business,

8-15   regardless of the intermittent use of the property at different

8-16   locations, unless the use of that address would constitute bad

8-17   faith.

8-18      (b) If the lease or rental does not require recurring periodic

8-19   payments, the location of the lease or rental shall be deemed to

8-20   take place at the location determined pursuant to section 15 of

8-21   this act.

8-22      2.  This section does not apply to the determination of any

8-23   liability of a seller for any sales or use taxes imposed on:

8-24      (a) The acquisition of tangible personal property for lease; or

8-25      (b) Any accelerated or lump-sum payments made pursuant to a

8-26   lease or rental of tangible personal property.

8-27      Sec. 17.  1.  Except as otherwise provided in this section and

8-28   section 14 of this act, the lease or rental of motor vehicles,

8-29   trailers, semitrailers or aircraft that do not constitute

8-30   transportation equipment shall be deemed to take place:

8-31      (a) If the lease or rental requires recurring periodic payments,

8-32   at the primary location of the property. For the purposes of this

8-33   paragraph, the primary location of the property shall be deemed

8-34   to be the address for the property provided by the lessee and set

8-35   forth in the records maintained by the lessor in the ordinary

8-36   course of business, regardless of the intermittent use of the

8-37   property at different locations, unless the use of that address

8-38   would constitute bad faith.

8-39      (b) If the lease or rental does not require recurring periodic

8-40   payments, at the location determined pursuant to section 15 of

8-41   this act.

8-42      2.  This section does not apply to the determination of any

8-43   liability of a seller for any sales or use taxes imposed on:

8-44      (a) The acquisition of tangible personal property for lease; or

8-45      (b) Any accelerated or lump-sum payments made pursuant to a

8-46   lease or rental of tangible personal property.

9-1  Sec. 18.  Except as otherwise provided in section 14 of this

9-2  act, the lease or rental of transportation equipment shall be

9-3   deemed to take place at the location determined pursuant to

9-4   section 15 of this act.

9-5  Sec. 19.  1.  A purchaser may purchase tangible personal

9-6   property without paying to the seller at the time of purchase the

9-7   sales and use taxes that are due thereon if:

9-8  (a) The seller does not maintain a place of business in this

9-9   state; and

9-10      (b) The purchaser has obtained a direct pay permit pursuant to

9-11   the provisions of this section.

9-12      2.  A purchaser who wishes to obtain a direct pay permit must

9-13   file with the Department an application for such a permit that:

9-14      (a) Is on a form prescribed by the Department; and

9-15      (b) Sets forth such information as is required by the

9-16   Department.

9-17      3.  The application must be signed by:

9-18      (a) The owner if he is a natural person;

9-19      (b) A member or partner if the seller is an association or

9-20   partnership; or

9-21      (c) An executive officer or some other person specifically

9-22   authorized to sign the application if the seller is a corporation.

9-23   Written evidence of the signer’s authority must be attached to the

9-24   application.

9-25      4.  Any purchaser who obtains a direct pay permit pursuant to

9-26   this section shall:

9-27      (a) Determine the amount of sales and use taxes that are due

9-28   and payable to this state or a local government of this state upon

9-29   the purchase of tangible personal property from such a seller;

9-30   and

9-31      (b) Report and pay those taxes to the appropriate authority.

9-32      5.  If a purchaser who has obtained a direct pay permit

9-33   purchases tangible personal property that will be available for use

9-34   digitally or electronically in more than one jurisdiction, he may,

9-35   to determine the amount of tax that is due to this state or to a

9-36   local government of this state, use any reasonable, consistent and

9-37   uniform method to apportion the use of the property among the

9-38   various jurisdictions in which it will be used that is supported by

9-39   the purchaser’s business records as they exist at the time of the

9-40   consummation of the sale.

9-41      Sec. 20.  1.  A purchaser who:

9-42      (a) Has not obtained a direct pay permit pursuant to section 19

9-43   of this act;

9-44      (b) Purchases tangible personal property that is subject to

9-45   sales and use taxes; and

10-1      (c) Has knowledge at the time of purchase that the purchased

10-2  property will be available for use digitally or electronically in more

10-3   than one jurisdiction,

10-4  shall give written notice of that fact to the seller at the time of

10-5   purchase. The notice must be given in a form required by the

10-6   Department.

10-7      2.  Notwithstanding the provisions of sections 13 to 18,

10-8   inclusive, of this act:

10-9      (a) Upon receipt of such a notice by a seller who does not

10-10   maintain a place of business in this state, the seller is relieved of

10-11   any liability to collect, pay or remit any use tax that is due and the

10-12   purchaser thereafter assumes the liability to pay that tax directly

10-13   to the appropriate authority.

10-14     (b) To determine the tax due to this state or to a local

10-15   government of this state:

10-16         (1) A purchaser who delivers a notice pursuant to

10-17   subsection 1 to a seller who does not maintain a place of business

10-18   in this state; and

10-19         (2) A seller who maintains a place of business in this state

10-20   and receives a notice pursuant to subsection 1,

10-21  may use any reasonable, consistent and uniform method to

10-22   apportion the use of the property among the various jurisdictions

10-23   in which it will be used that is supported by the business records

10-24   of the purchaser or seller as they exist at the time of the

10-25   consummation of the sale.

10-26     3.  Any notice given pursuant to subsection 1 applies to all

10-27   future sales of property made by the seller to the purchaser,

10-28   except for the sale of property that is specifically apportioned

10-29   pursuant to subsection 2 or to property that will not be used in

10-30   multiple jurisdictions, until the purchaser delivers a written notice

10-31   of revocation to the seller.

10-32     Sec. 21.  1.  A purchaser of direct mail must provide to the

10-33   seller at the time of the purchase:

10-34     (a) If the seller does not maintain a place of business in this

10-35   state:

10-36         (1) A form for direct mail approved by the Department;

10-37         (2) An informational statement of the jurisdictions to which

10-38   the direct mail will be delivered to recipients; or

10-39         (3) The direct pay permit of the purchaser issued pursuant

10-40   to section 19 of this act; or

10-41     (b) If the seller maintains a place of business in this state, an

10-42   informational statement of the jurisdictions to which the direct

10-43   mail will be delivered to recipients.

10-44     2.  Notwithstanding the provisions of sections 13 to 18,

10-45   inclusive, of this act:

10-46     (a) Upon the receipt pursuant to subsection 1 of:

11-1          (1) A form for direct mail by a seller who does not maintain

11-2  a place of business in this state:

11-3             (I) The seller is relieved of any liability for the

11-4   collection, payment or remission of any sales or use taxes

11-5   applicable to the purchase of direct mail by that purchaser from

11-6   that seller; and

11-7             (II) The purchaser is liable for any sales or use taxes

11-8   applicable to the purchase of direct mail by that purchaser from

11-9   that seller.

11-10  Any form for direct mail provided to a seller pursuant to this

11-11   subparagraph applies to all future sales of direct mail made by

11-12   that seller to that purchaser until the purchaser delivers a written

11-13   notice of revocation to the seller.

11-14         (2) An informational statement by any seller, the seller

11-15   shall collect, pay or remit any applicable sales and use taxes in

11-16   accordance with the information contained in that statement. In

11-17   the absence of bad faith, the seller is relieved of any liability to

11-18   collect, pay or remit any sales and use taxes other than in

11-19   accordance with that information received.

11-20     (b) If a purchaser of direct mail does not comply with

11-21   subsection 1, the seller shall determine the location of the sale

11-22   pursuant to subsection 5 of section 15 of this act and collect, pay

11-23   or remit any applicable sales and use taxes. This paragraph does

11-24   not limit the liability of the purchaser for the payment of any of

11-25   those taxes.

11-26     3.  As used in this section, “direct mail” means printed

11-27   material delivered or distributed by the United States Postal

11-28   Service or another delivery service to a mass audience or to

11-29   addresses contained on a mailing list provided by a purchaser or

11-30   at the direction of a purchaser when the cost of the items

11-31   purchased is not billed directly to the recipients. The term

11-32   includes tangible personal property supplied directly or indirectly

11-33   by the purchaser to the seller of the direct mail for inclusion in

11-34   the package containing the printed material. The term does not

11-35   include multiple items of printed material delivered to a single

11-36   address.

11-37     Sec. 22.  Notwithstanding the provisions of any other specific

11-38   statute, if the boundary of a local government that has imposed a

11-39   sales or use tax is changed, any change in the rate of that tax

11-40   which results therefrom becomes effective on the first day of the

11-41   first calendar quarter that begins at least 60 days after the

11-42   effective date of the change in the boundary.

11-43     Sec. 23.  Notwithstanding the provisions of any other specific

11-44   statute, if any sales or use tax is due and payable on a Saturday,

11-45   Sunday or legal holiday, the tax may be paid on the next

11-46   succeeding business day.

12-1      Sec. 24.  Any invoice, billing or other document given to a

12-2  purchaser that indicates the sales price for which tangible

12-3   personal property is sold must state separately any amount

12-4   received by the seller for:

12-5      1.  Services that are necessary to complete the sale, including

12-6   delivery and installation charges;

12-7      2.  The value of exempt property given to the purchaser if

12-8   taxable and exempt property are sold as a single product or piece

12-9   of merchandise; and

12-10     3.  Credit given to the purchaser.

12-11     Sec. 25.  NRS 360B.030 is hereby amended to read as follows:

12-12     360B.030  As used in NRS 360B.010 to 360B.170, inclusive,

12-13   and sections 5 to 24, inclusive, of this act, unless the context

12-14   otherwise requires, the words and terms defined in NRS 360B.040

12-15   to 360B.100, inclusive, and sections 5 to 8, inclusive, of this act

12-16   have the meanings ascribed to them in those sections.

12-17     Sec. 26.  NRS 360B.070 is hereby amended to read as follows:

12-18     360B.070  “Sales tax” means the tax levied by section 19 of

12-19   chapter 397, Statutes of Nevada 1955, at page 766, and any similar

12-20   tax authorized by or pursuant to a specific statute[.] or special

12-21   legislative act of this state or the laws of another state that is a

12-22   member of the Agreement.

12-23     Sec. 27.  NRS 360B.080 is hereby amended to read as follows:

12-24     360B.080  “Seller” means any person making sales, leases or

12-25   rentals of tangible personal property . [or services.]

12-26     Sec. 28.  NRS 360B.100 is hereby amended to read as follows:

12-27     360B.100  “Use tax” means the tax levied by section 34 of

12-28   chapter 397, Statutes of Nevada 1955, at page 769, as amended by

12-29   section 3 of chapter 513, Statutes of Nevada 1985, at page 1562,

12-30   and any similar tax authorized by or pursuant to a specific statute

12-31   [.] or special legislative act of this state or the laws of another

12-32   state that is a member of the Agreement.

12-33     Sec. 29.  NRS 360B.110 is hereby amended to read as follows:

12-34     360B.110  The Nevada Tax Commission shall:

12-35     1.  Except as otherwise provided in NRS 360B.120, enter into

12-36   the Agreement.

12-37     2.  Act jointly with other states that are members of the

12-38   Agreement to establish standards for:

12-39     (a) Certification of a certified service provider;

12-40     (b) A certified automated system; [and]

12-41     (c) Performance of multistate sellers[.] ; and

12-42     (d) An address-based system for determining the applicable

12-43   sales and use taxes.

12-44     3.  Take all other actions reasonably required to implement the

12-45   provisions of NRS 360B.010 to 360B.170, inclusive, and sections 5

13-1  to 24, inclusive, of this act, and the provisions of the Agreement,

13-2  including, without limitation[:] , the:

13-3      (a) Adoption of regulations to carry out the provisions of NRS

13-4   360B.010 to 360B.170, inclusive[;] , and sections 5 to 24,

13-5   inclusive, of this act, and the provisions of the Agreement; and

13-6      (b) Procurement, jointly with other member states, of goods and

13-7   services.

13-8      4.  Represent, or have its designee represent, the State of

13-9   Nevada before the other states that are signatories to the

13-10   Agreement.

13-11     5.  Designate not more than four delegates, who may be

13-12   members of the Commission, to represent the State of Nevada for

13-13   the purposes of reviewing or amending the Agreement.

13-14     Sec. 30.  NRS 361.186 is hereby amended to read as follows:

13-15     361.186  1.  A taxpayer may collect an admission fee for the

13-16   exhibition of fine art otherwise exempt from taxation pursuant to

13-17   NRS 361.068 if the taxpayer offers to residents of the State of

13-18   Nevada a discount of 50 percent from any admission fee charged to

13-19   nonresidents. The discounted admission fee for residents must be

13-20   offered at any time the exhibition is open to the public and

13-21   admission fees are being charged.

13-22     2.  Except as otherwise provided in subsection 5, if a taxpayer

13-23   collects a fee for the exhibition of fine art otherwise exempt from

13-24   taxation pursuant to NRS 361.068, the exemption pertaining to that

13-25   fine art for the fiscal year must be reduced by the net revenue

13-26   derived by the taxpayer for that fiscal year. The exemption

13-27   pertaining to fine art for a particular fiscal year must not be reduced

13-28   below zero, regardless of the amount of the net revenue derived by

13-29   the taxpayer for that fiscal year.

13-30     3.  A tax resulting from the operation of this section is due with

13-31   the tax otherwise due under the taxpayer’s first statement filed

13-32   pursuant to NRS 361.265 after the 15th day of the fourth month

13-33   after the end of the fiscal year in which the net revenue was

13-34   received or, if no such statement is required to be filed, under a

13-35   statement of the net revenue filed on or before the last day of the

13-36   fourth month after the end of that fiscal year.

13-37     4.  A taxpayer who is required to pay a tax resulting from the

13-38   operation of this section may receive a credit against the tax for any

13-39   donations made by the taxpayer to the State Arts Council, the

13-40   Division of Museums and History Dedicated Trust Fund

13-41   established pursuant to NRS 381.0031, a museum that provides

13-42   exhibits specifically related to nature or a museum that provides

13-43   exhibits specifically related to children, if the taxpayer:

13-44     (a) Made the donation before the date that either statement

13-45   required pursuant to subsection 3 is due; and

14-1      (b) Provides to the county assessor documentation of the

14-2  donation at the time that he files the statement required pursuant to

14-3   subsection 3.

14-4      5.  If a taxpayer qualifies for and avails himself of [both of] the

14-5   exemptions from taxation provided by NRS 361.068 and 374.291

14-6   [,] and section 57.1 of chapter 397, Statutes of Nevada 1955, the

14-7   reduction of the exemptions by the net revenue derived by the

14-8   taxpayer, as required pursuant to subsection 2 of this section , [and]

14-9   subsection 2 of NRS 374.2911[,] and subsection 2 of section 57.2

14-10   of chapter 397, Statutes of Nevada 1955, must be carried out in

14-11   such a manner that the total net revenue derived by the taxpayer is

14-12   first applied to reduce the [exemption] exemptions provided

14-13   pursuant to NRS 374.291[.] and section 57.1 of chapter 397,

14-14   Statutes of Nevada 1955. If the net revenue exceeds the amount of

14-15   the [exemption] exemptions provided pursuant to NRS 374.291[,]

14-16   and section 57.1 of chapter 397, Statutes of Nevada 1955, the

14-17   remaining net revenue must be applied to reduce the exemption

14-18   provided pursuant to NRS 361.068. If the net revenue is less than or

14-19   equal to the [exemption] exemptions provided pursuant to NRS

14-20   374.291 and section 57.1 of chapter 397, Statutes of Nevada 1955,

14-21   for that fiscal year, the exemption provided pursuant to NRS

14-22   361.068 must not be reduced.

14-23     6.  For the purposes of this section:

14-24     (a) “Direct costs of owning and exhibiting the fine art” does not

14-25   include any allocation of the general and administrative expense of

14-26   a business or organization that conducts activities in addition to the

14-27   operation of the facility in which the fine art is displayed, including,

14-28   without limitation, an allocation of the salary and benefits of a

14-29   senior executive who is responsible for the oversight of the facility

14-30   in which the fine art is displayed and who has substantial

14-31   responsibilities related to the other activities of the business or

14-32   organization.

14-33     (b) “Net revenue” means the amount of the fees collected for

14-34   exhibiting the fine art during that fiscal year less the following paid

14-35   or made during that fiscal year:

14-36         (1) The direct costs of owning and exhibiting the fine art; and

14-37         (2) The cost of educational programs associated with the

14-38   taxpayer’s public display of fine art, including the cost of meeting

14-39   the requirements of sub-subparagraph (IV) of subparagraph (1) of

14-40   paragraph (b) of subsection 5 of NRS 361.068.

14-41     Sec. 31.  NRS 361.186 is hereby amended to read as follows:

14-42     361.186  1.  A taxpayer may collect an admission fee for the

14-43   exhibition of fine art otherwise exempt from taxation pursuant to

14-44   NRS 361.068 if the taxpayer offers to residents of the State of

14-45   Nevada a discount of 50 percent from any admission fee charged to

14-46   nonresidents. The discounted admission fee for residents must be

15-1  offered at any time the exhibition is open to the public and

15-2  admission fees are being charged.

15-3      2.  Except as otherwise provided in subsection 5, if a taxpayer

15-4   collects a fee for the exhibition of fine art otherwise exempt from

15-5   taxation pursuant to NRS 361.068, the exemption pertaining to that

15-6   fine art for the fiscal year must be reduced by the net revenue

15-7   derived by the taxpayer for that fiscal year. The exemption

15-8   pertaining to fine art for a particular fiscal year must not be reduced

15-9   below zero, regardless of the amount of the net revenue derived by

15-10   the taxpayer for that fiscal year.

15-11     3.  A tax resulting from the operation of this section is due with

15-12   the tax otherwise due under the taxpayer’s first statement filed

15-13   pursuant to NRS 361.265 after the 15th day of the fourth month

15-14   after the end of the fiscal year in which the net revenue was

15-15   received or, if no such statement is required to be filed, under a

15-16   statement of the net revenue filed on or before the last day of the

15-17   fourth month after the end of that fiscal year.

15-18     4.  A taxpayer who is required to pay a tax resulting from the

15-19   operation of this section may receive a credit against the tax for any

15-20   donations made by the taxpayer to the State Arts Council, the

15-21   Division of Museums and History Dedicated Trust Fund

15-22   established pursuant to NRS 381.0031, a museum that provides

15-23   exhibits specifically related to nature or a museum that provides

15-24   exhibits specifically related to children, if the taxpayer:

15-25     (a) Made the donation before the date that either statement

15-26   required pursuant to subsection 3 is due; and

15-27     (b) Provides to the county assessor documentation of the

15-28   donation at the time that he files the statement required pursuant to

15-29   subsection 3.

15-30     5.  [If a taxpayer qualifies for and avails himself of both of the

15-31   exemptions from taxation provided by NRS 361.068 and 374.291,

15-32   the reduction of the exemptions by the net revenue derived by the

15-33   taxpayer, as required pursuant to subsection 2 of this section and

15-34   subsection 2 of NRS 374.2911, must be carried out in such a

15-35   manner that the total net revenue derived by the taxpayer is first

15-36   applied to reduce the exemption provided pursuant to NRS

15-37   374.291. If the net revenue exceeds the amount of the exemption

15-38   provided pursuant to NRS 374.291, the remaining net revenue must

15-39   be applied to reduce the exemption provided pursuant to NRS

15-40   361.068. If the net revenue is less than or equal to the exemption

15-41   provided pursuant to NRS 374.291 for that fiscal year, the

15-42   exemption provided pursuant to NRS 361.068 must not be reduced.

15-43     6.] For the purposes of this section:

15-44     (a) “Direct costs of owning and exhibiting the fine art” does not

15-45   include any allocation of the general and administrative expense of

15-46   a business or organization that conducts activities in addition to the

16-1  operation of the facility in which the fine art is displayed, including,

16-2  without limitation, an allocation of the salary and benefits of a

16-3   senior executive who is responsible for the oversight of the facility

16-4   in which the fine art is displayed and who has substantial

16-5   responsibilities related to the other activities of the business or

16-6   organization.

16-7      (b) “Net revenue” means the amount of the fees collected for

16-8   exhibiting the fine art during that fiscal year less the following paid

16-9   or made during that fiscal year:

16-10         (1) The direct costs of owning and exhibiting the fine art; and

16-11         (2) The cost of educational programs associated with the

16-12   taxpayer’s public display of fine art, including the cost of meeting

16-13   the requirements of sub-subparagraph (IV) of subparagraph (1) of

16-14   paragraph (b) of subsection 5 of NRS 361.068.

16-15     Sec. 32.  Chapter 372 of NRS is hereby amended by adding

16-16   thereto the provisions set forth as sections 33 to 36, inclusive, of

16-17   this act.

16-18     Sec. 33.  This chapter must be administered in accordance

16-19   with the provisions of chapter 360B of NRS.

16-20     Sec. 34.  In determining the amount of taxes due pursuant to

16-21   this chapter:

16-22     1.  The amount due must be computed to the third decimal

16-23   place and rounded to a whole cent using a method that rounds up

16-24   to the next cent if the numeral in the third decimal place is

16-25   greater than 4.

16-26     2.  A retailer may compute the amount due on a transaction

16-27   on the basis of each item involved in the transaction or a single

16-28   invoice for the entire transaction.

16-29     Sec. 35.  1.  If a purchaser wishes to claim an exemption

16-30   from the taxes imposed by this chapter, the retailer shall obtain

16-31   such identifying information from the purchaser at the time of

16-32   sale as is required by the Department.

16-33     2.  The Department shall, to the extent feasible, establish an

16-34   electronic system for submitting a request for an exemption. A

16-35   purchaser is not required to provide a signature to claim an

16-36   exemption if the request is submitted electronically.

16-37     3.  The Department may establish a system whereby a

16-38   purchaser who is exempt from the payment of the taxes imposed

16-39   by this chapter is issued an identification number that can be

16-40   presented to the retailer at the time of sale.

16-41     4.  A retailer shall maintain such records of exempt

16-42   transactions as are required by the Department.

16-43     5.  Except as otherwise provided in this subsection, a retailer

16-44   who complies with the provisions of this section is not liable for

16-45   the payment of any tax imposed by this chapter if the purchaser

16-46   improperly claims an exemption. If the purchaser improperly

17-1  claims an exemption, the purchaser is liable for the payment of the

17-2  tax. The provisions of this subsection do not apply if the retailer

17-3   fraudulently fails to collect the tax or solicits a purchaser to

17-4   participate in an unlawful claim of an exemption.

17-5      Sec. 36.  1.  If a retailer is unable to collect all or part of the

17-6   sales price of a sale, he is entitled to receive a deduction from his

17-7   taxable sales for that bad debt.

17-8      2.  Any deduction that is claimed pursuant to this section may

17-9   not include interest.

17-10     3.  The amount of any deduction claimed must equal the

17-11   amount of a deduction that may be claimed pursuant to 26 U.S.C.

17-12   § 166 for that sale minus:

17-13     (a) Any finance charge or interest charged as part of the sale;

17-14     (b) Any sales or use tax charged on the sales price;

17-15     (c) Any amount not paid on the sales price because the

17-16   tangible personal property that was sold has remained in the

17-17   possession of the retailer until the full sales price is paid;

17-18     (d) Any expense incurred in attempting to collect the bad debt;

17-19   and

17-20     (e) The value of any property sold that has been repossessed by

17-21   the retailer.

17-22     4.  A bad debt may be claimed as a deduction on the return

17-23   that covers the period during which the bad debt is written off in

17-24   the business records of the retailer that are maintained in the

17-25   ordinary course of the retailer’s business and is eligible to be

17-26   claimed as a deduction pursuant to 26 U.S.C. § 166 or, if the

17-27   retailer is not required to file a federal income tax return, would

17-28   be eligible to be claimed as a deduction pursuant to 26 U.S.C. §

17-29   166.

17-30     5.  If a bad debt for which a deduction has been claimed is

17-31   subsequently collected in whole or in part, the tax on the amount

17-32   so collected must be reported on the return that covers the period

17-33   in which the collection is made.

17-34     6.  If the amount of the bad debt is greater than the amount of

17-35   the taxable sales reported for the period during which the bad

17-36   debt is claimed as a deduction, a claim for a refund may be filed

17-37   pursuant to NRS 372.630 to 372.720, inclusive, except that the

17-38   time within which the claim may be filed begins on the date on

17-39   which the return that included the deduction was filed.

17-40     7.  If the retailer has contracted with a certified service

17-41   provider for the remittance of the tax due under this chapter, the

17-42   service provider may, on behalf of the retailer, claim any

17-43   deduction to which the retailer is entitled pursuant to this section.

17-44   The service provider shall credit or refund the full amount of any

17-45   deduction or refund received pursuant to this section to the

17-46   retailer.

18-1      8.  For the purposes of reporting a payment received on a bad

18-2  debt for which a deduction has been claimed, the payment must

18-3   first be applied to the sales price of the property sold and the tax

18-4   due thereon, and then to any interest, service charge or other

18-5   charge that was charged as part of the sale.

18-6      9.  If the records of a retailer indicate that a bad debt may be

18-7   allocated among other states that are members of the Streamlined

18-8   Sales and Use Tax Agreement, the retailer may allocate the bad

18-9   debt among those states.

18-10     10.  Except as otherwise provided in subsection 11, upon

18-11   determining that a retailer has filed a return which contains one

18-12   or more violations of the provisions of this section, the

18-13   Department shall:

18-14     (a) For the first return of any retailer which contains one or

18-15   more violations, issue a letter of warning to the retailer which

18-16   provides an explanation of the violation or violations contained in

18-17   the return.Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

18-18     (b) For the first or second return, other than a return

18-19   described in paragraph (a), in any calendar year which contains

18-20   one or more violations, assess a penalty equal to the amount of

18-21   the deduction claimed or $1,000, whichever is less.

18-22     (c) For the third and each subsequent return in any calendar

18-23   year which contains one or more violations, assess a penalty of

18-24   three times the amount of the deduction claimed or $3,000,

18-25   whichever is less.

18-26     11.  For the purposes of subsection 10, if the first violation of

18-27   this section by any retailer was determined by the Department

18-28   through an audit which covered more than one return of the

18-29   retailer, the Department shall treat all returns which were

18-30   determined through the same audit to contain a violation or

18-31   violations in the manner provided in paragraph (a) of

18-32  subsection 10.

18-33     12.  As used in this section:

18-34     (a) “Bad debt” means a debt that may be deducted pursuant to

18-35   26 U.S.C. § 166.

18-36     (b) “Certified service provider” has the meaning ascribed to it

18-37   in NRS 360B.060.

18-38     Sec. 37.  NRS 372.123 is hereby amended to read as follows:

18-39     372.123  1.  If the State or a political subdivision of the State

18-40   enters into a contract pursuant to chapter 332 or 333 of NRS on or

18-41   after June 5, 2001, with a person who:

18-42     (a) Sells tangible personal property in this state; and

18-43     (b) Has not obtained a permit pursuant to NRS 372.125 [because

18-44   he does not maintain a place of business within this state,] or

18-45   registered pursuant to section 9 of this act,

19-1  the contract must include a provision requiring the person to obtain

19-2  a permit pursuant to NRS 372.125 or to register pursuant to section

19-3   9 of this act, and to [agree to] collect and pay the taxes imposed

19-4   pursuant to this chapter on the sale of tangible personal property in

19-5   this state. For the purposes of [the] a permit obtained pursuant to

19-6   NRS 372.125, the person shall be deemed to have a single place of

19-7   business in this state.

19-8      2.  The Department may require a state agency or local

19-9   government to submit such documentation as is necessary to ensure

19-10   compliance with this section.

19-11     Sec. 38.  NRS 372.125 is hereby amended to read as follows:

19-12     372.125  1.  Every person desiring to engage in or conduct

19-13   business as a seller within this state must register with the

19-14   Department pursuant to section 9 of this act or file with the

19-15   Department an application for a permit for each place of business.

19-16     2.  Every application for a permit must:

19-17     (a) Be made upon a form prescribed by the Department.

19-18     (b) Set forth the name under which the applicant transacts or

19-19   intends to transact business and the location of his place or places

19-20   of business.

19-21     (c) Set forth other information which the Department may

19-22   require.

19-23     3.  The application must be signed by [the] :

19-24     (a) The owner if he is a natural person; [in the case of an

19-25   association or partnership, by a]

19-26     (b) A member or partner[; in the case of a corporation, by an] if

19-27   the seller is an association or partnership; or

19-28     (c) An executive officer or some person specifically authorized

19-29   [by the corporation] to sign the application[, to which must be

19-30   attached the written evidence of his authority.] if the seller is a

19-31   corporation. Written evidence of the signer’s authority must be

19-32   attached to the application.

19-33     Sec. 39.  NRS 372.125 is hereby amended to read as follows:

19-34     372.125  1.  Every person desiring to engage in or conduct

19-35   business as a seller within this state must register with the

19-36   Department pursuant to section 9 of this act or file with the

19-37   Department an application for a permit for each place of business

19-38   [.] , unless he intends to sell vehicles and will make fewer than

19-39   three retail sales of vehicles during any 12-month period.

19-40     2.  Every application for a permit must:

19-41     (a) Be made upon a form prescribed by the Department.

19-42     (b) Set forth the name under which the applicant transacts or

19-43   intends to transact business and the location of his place or places

19-44   of business.

19-45     (c) Set forth other information which the Department may

19-46   require.

20-1      3.  The application must be signed by:

20-2      (a) The owner if he is a natural person;

20-3      (b) A member or partner if the seller is an association or

20-4   partnership; or

20-5      (c) An executive officer or some person specifically authorized

20-6   to sign the application if the seller is a corporation. Written

20-7   evidence of the signer’s authority must be attached to the

20-8   application.

20-9      Sec. 40.  NRS 372.160 is hereby amended to read as follows:

20-10     372.160  A resale certificate relieves the seller from the burden

20-11   of proof only if taken in good faith from a person who [is] :

20-12     1.  Is engaged in the business of selling tangible personal

20-13   property [and who holds the permit provided for in NRS 372.125 to

20-14   372.180, inclusive, and who, at] ;

20-15     2.  Is registered pursuant to section 9 of this act or holds a

20-16   permit issued pursuant to NRS 372.135; and

20-17     3.  At the time of purchasing the tangible personal property,

20-18   intends to sell it in the regular course of business or is unable to

20-19   ascertain at the time of purchase whether the property will be sold

20-20   or will be used for some other purpose.

20-21     Sec. 41.  NRS 372.165 is hereby amended to read as follows:

20-22     372.165  1.  [The] A resale certificate must:

20-23     (a) Be signed by and bear the name and address of the

20-24   purchaser.

20-25     (b) Indicate that the purchaser is registered pursuant to section

20-26   9 of this act or contain the number of the permit issued to the

20-27   purchaser[.] pursuant to NRS 372.135.

20-28     (c) Indicate the general character of the tangible personal

20-29   property sold by the purchaser in the regular course of business.

20-30     2.  The certificate must be substantially in such form as the

20-31   Department may prescribe.

20-32     Sec. 42.  NRS 372.230 is hereby amended to read as follows:

20-33     372.230  A resale certificate relieves the person selling the

20-34   property from the burden of proof only if taken in good faith from a

20-35   person who [is] :

20-36     1.  Is engaged in the business of selling tangible personal

20-37   property [and who holds the permit provided for by NRS 372.125

20-38   to 372.180, inclusive, and who, at] ;

20-39     2.  Is registered pursuant to section 9 of this act or holds a

20-40   permit issued pursuant to NRS 372.135; and

20-41     3.  At the time of purchasing the tangible personal property,

20-42   intends to sell it in the regular course of business or is unable to

20-43   ascertain at the time of purchase whether the property will be sold

20-44   or will be used for some other purpose.

20-45     Sec. 43.  NRS 372.235 is hereby amended to read as follows:

20-46     372.235  1.  [The] A resale certificate must:

20-47     (a) Be signed and bear the name and address of the purchaser.

21-1      (b) Indicate that the purchaser is registered pursuant to section

21-2  9 of this act or contain the number of the permit issued to the

21-3   purchaser[.] pursuant to NRS 372.135.

21-4      (c) Indicate the general character of the tangible personal

21-5   property sold by the purchaser in the regular course of business.

21-6      2.  The certificate must be substantially in such form as the

21-7   Department may prescribe.

21-8      Sec. 44.  NRS 372.355 is hereby amended to read as follows:

21-9      372.355  Except as otherwise provided in NRS 372.380[,] or

21-10   required by the Department pursuant to section 9 of this act, the

21-11   taxes imposed by this chapter are payable to the Department

21-12   monthly on or before the last day of the month next succeeding

21-13   each month.

21-14     Sec. 45.  NRS 372.360 is hereby amended to read as follows:

21-15     372.360  Except as otherwise required by the Department

21-16   pursuant to section 9 of this act:

21-17     1.  On or before the last day of the month following each

21-18   reporting period, a return for the preceding period must be filed

21-19   with the Department in such form as the Department may prescribe.

21-20   Any return required to be filed by this section must be combined

21-21   with any return required to be filed pursuant to the provisions of

21-22   chapter 374 of NRS.

21-23     2.  For purposes of [the] :

21-24     (a) The sales tax a return must be filed by each seller. [For

21-25   purposes of the]

21-26     (b) The use tax a return must be filed by each retailer

21-27   maintaining a place of business in the state and by each person

21-28   purchasing tangible personal property, the storage, use or other

21-29   consumption of which is subject to the use tax, who has not paid

21-30   the use tax due . [to a retailer required to collect the tax.]

21-31     3.  Returns must be signed by the person required to file the

21-32   return or by his authorized agent but need not be verified by oath.

21-33     Sec. 46.  NRS 372.365 is hereby amended to read as follows:

21-34     372.365  1.  Except as otherwise required by the Department

21-35   pursuant to section 9 of this act or provided in sections 13 to 18,

21-36   inclusive, of this act:

21-37     (a) For the purposes of the sales tax:

21-38     [(a)] (1) The return must show the gross receipts of the seller

21-39   during the preceding reporting period.

21-40     [(b)] (2) The gross receipts must be segregated and reported

21-41   separately for each county to which a sale of tangible personal

21-42   property pertains.

21-43     [(c)] (3) A sale pertains to the county in this state in which the

21-44   tangible personal property is or will be delivered to the purchaser or

21-45   his agent or designee.

21-46     [2.] (b) For purposes of the use tax:

22-1      [(a)] (1) In the case of a return filed by a retailer, the return

22-2  must show the total sales price of the property purchased by him, the

22-3   storage, use or consumption of which property became subject to

22-4   the use tax during the preceding reporting period.

22-5      [(b)] (2) The sales price must be segregated and reported

22-6   separately for each county to which a purchase of tangible personal

22-7   property pertains.

22-8      [(c)] (3) If the property was [brought] :

22-9             (I) Brought into this state by the purchaser or his agent or

22-10   designee, the sale pertains to the county in this state in which the

22-11   property is or will be first used, stored or otherwise consumed.

22-12   [Otherwise,]

22-13             (II) Not brought into this state by the purchaser or his

22-14   agent or designee, the sale pertains to the county in this state in

22-15   which the property was delivered to the purchaser or his agent or

22-16   designee.

22-17     [3.] 2.  In case of a return filed by a purchaser, the return must

22-18   show the total sales price of the property purchased by him, the

22-19   storage, use or consumption of which became subject to the use tax

22-20   during the preceding reporting period and indicate the county in this

22-21   state in which the property was first used, stored or consumed.

22-22     [4.] 3.  The return must also show the amount of the taxes for

22-23   the period covered by the return and such other information as the

22-24   Department deems necessary for the proper administration of this

22-25   chapter.

22-26     [5.  If a retailer:

22-27     (a) Is unable to collect all or part of the sales price of a sale, the

22-28   amount of which was included in the gross receipts reported for a

22-29   previous reporting period; and

22-30     (b) Has taken a deduction on his federal income tax return

22-31   pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to

22-32   collect,

22-33  he is entitled to receive a credit for the amount of sales tax paid on

22-34   account of that uncollected sales price. The credit may be used

22-35   against the amount of sales tax that the retailer is subsequently

22-36   required to pay pursuant to this chapter.

22-37     6.  If the Internal Revenue Service of the Department of the

22-38   Treasury disallows a deduction described in paragraph (b) of

22-39   subsection 5 and the retailer claimed a credit on a return for a

22-40   previous reporting period pursuant to subsection 5, the retailer shall

22-41   include the amount of that credit in the amount of taxes reported

22-42   pursuant to subsection 4 in the first return filed with the Department

22-43   after the deduction is disallowed.

22-44     7.  If a retailer collects all or part of the sales price for which he

22-45   claimed a credit on a return for a previous reporting period pursuant

22-46   to subsection 5, he shall include:

23-1      (a) The amount collected in the gross receipts reported pursuant

23-2  to paragraph (a) of subsection 1; and

23-3      (b) The sales tax payable on the amount collected in the amount

23-4   of taxes reported pursuant to subsection 4,

23-5  in the first return filed with the Department after that collection.

23-6      8.] 4.  Except as otherwise provided in subsection [9,] 5, upon

23-7   determining that a retailer has filed a return which contains one or

23-8   more violations of the provisions of this section, the Department

23-9   shall:

23-10     (a) For the first return of any retailer which contains one or more

23-11   violations, issue a letter of warning to the retailer which provides an

23-12   explanation of the violation or violations contained in the return.

23-13     (b) For the first or second return, other than a return described in

23-14   paragraph (a), in any calendar year which contains one or more

23-15   violations, assess a penalty equal to the amount of the tax which

23-16   was not reported or was reported for the wrong county or $1,000,

23-17   whichever is less.

23-18     (c) For the third and each subsequent return in any calendar year

23-19   which contains one or more violations, assess a penalty of three

23-20   times the amount of the tax which was not reported or was reported

23-21   for the wrong county or $3,000, whichever is less.

23-22     [9.] 5. For the purposes of subsection [8,] 4, if the first violation

23-23   of this section by any retailer was determined by the Department

23-24   through an audit which covered more than one return of the retailer,

23-25   the Department shall treat all returns which were determined

23-26   through the same audit to contain a violation or violations in the

23-27   manner provided in paragraph (a) of subsection [8.] 4.

23-28     Sec. 47.  NRS 372.370 is hereby amended to read as follows:

23-29     372.370  [The]

23-30     1.  Except as otherwise provided in subsection 2, a taxpayer

23-31   shall deduct and withhold from the taxes otherwise due from him

23-32   1.25 percent of it to reimburse himself for the cost of collecting the

23-33   tax.

23-34     2.  The regulations adopted by the Department pursuant to

23-35   NRS 360B.110 may authorize the deduction and withholding

23-36   from the taxes otherwise due from a taxpayer such other amounts

23-37   as are required to carry out the Streamlined Sales and Use Tax

23-38   Agreement.

23-39     Sec. 48.  NRS 372.375 is hereby amended to read as follows:

23-40     372.375  [The]

23-41     1.  Except as otherwise required by the Department pursuant

23-42   to section 9 of this act, the person required to file [the] a return

23-43   shall deliver the return together with a remittance of the amount of

23-44   the tax due to the Department.

24-1      2.  The Department shall provide for the acceptance of credit

24-2  cards, debit cards or electronic transfers of money for the payment

24-3   of the tax due in the manner prescribed in NRS 353.1465.

24-4      Sec. 49.  NRS 372.380 is hereby amended to read as follows:

24-5      372.380  1.  [The] Except as otherwise provided in subsection

24-6   2 or required by the Department pursuant to section 9 of this act,

24-7   the reporting and payment period of a taxpayer whose taxable sales

24-8   do not exceed $10,000 per month is a calendar quarter.

24-9      2.  The Department, if it deems this action necessary in order to

24-10   insure payment to or facilitate the collection by the State of the

24-11   amount of taxes, may require returns and payment of the amount of

24-12   taxes for periods other than calendar months or quarters, depending

24-13   upon the principal place of business of the seller, retailer or

24-14   purchaser, as the case may be, or for other than monthly or

24-15   quarterly periods.

24-16     Sec. 50.  NRS 372.635 is hereby amended to read as follows:

24-17     372.635  Except as otherwise provided in NRS 360.235 and

24-18   360.395 [:] and section 36 of this act:

24-19     1.  No refund may be allowed unless a claim for it is filed with

24-20   the Department within 3 years after the last day of the month

24-21   following the close of the period for which the overpayment was

24-22   made.

24-23     2.  No credit may be allowed after the expiration of the period

24-24   specified for filing claims for refund unless a claim for credit is

24-25   filed with the Department within that period, or unless the credit

24-26   relates to a period for which a waiver is given pursuant to NRS

24-27   360.355.

24-28     Sec. 51.  NRS 372.7263 is hereby amended to read as follows:

24-29     372.7263  1.  In administering the provisions of NRS 372.335,

24-30   the Department shall apply the exemption for the sale of tangible

24-31   personal property delivered by the vendor to a forwarding agent for

24-32   shipment out of state to include:

24-33     [1.] (a) The sale of a vehicle to a nonresident to whom a special

24-34   movement permit has been issued by the Department of Motor

24-35   Vehicles pursuant to subsection 1 of NRS 482.3955; and

24-36     [2.] (b) The sale of farm machinery and equipment[, as defined

24-37   in NRS 374.286,] to a nonresident who submits proof to the vendor

24-38   that the farm machinery and equipment will be delivered out of

24-39   state not later than 15 days after the sale.

24-40     2.  As used in this section:

24-41     (a) “Agricultural use” has the meaning ascribed to it in

24-42  NRS 361A.030.

24-43     (b) “Farm machinery and equipment” means a farm tractor,

24-44   implement of husbandry, piece of equipment used for irrigation,

24-45   or a part used in the repair or maintenance of farm machinery

24-46   and equipment. The term does not include:

25-1          (1) A vehicle required to be registered pursuant to the

25-2  provisions of chapter 482 or 706 of NRS; or

25-3          (2) Machinery or equipment only incidentally employed for

25-4   the agricultural use of real property.

25-5      (c) “Farm tractor” means a motor vehicle designed and used

25-6   primarily for drawing an implement of husbandry.

25-7      (d) “Implement of husbandry” means a vehicle that is

25-8   designed, adapted or used for agricultural purposes, including,

25-9   without limitation, a plow, machine for mowing, hay baler,

25-10   combine, piece of equipment used to stack hay, till, harvest,

25-11   handle agricultural commodities or apply fertilizers, or other

25-12   heavy, movable equipment designed, adapted or used for

25-13   agricultural purposes.

25-14     Sec. 52.  NRS 372.740 is hereby amended to read as follows:

25-15     372.740  1.  The Department, or any person authorized in

25-16   writing by it, may examine the books, papers, records and

25-17   equipment of any person selling tangible personal property and any

25-18   person liable for the use tax and may investigate the character of the

25-19   business of the person to verify the accuracy of any return made, or,

25-20   if no return is made by the person, to ascertain and determine the

25-21   amount required to be paid.

25-22     2.  Any person selling or purchasing tangible personal property

25-23   in this state who [is] :

25-24     (a) Is required to [obtain] :

25-25         (1) Obtain a permit pursuant to NRS 372.125 or register

25-26   pursuant to section 9 of this act; or [to file]

25-27         (2) File a return pursuant to subsection 2 of NRS 372.360[,

25-28   and who keeps] ; and

25-29     (b) Keeps outside of this state his records, receipts, invoices and

25-30   other documents relating to sales he has made or the use tax due

25-31   this state,

25-32  shall pay to the Department an amount equal to the allowance

25-33   provided for state officers and employees generally while traveling

25-34   outside of the state for each day or fraction thereof during which an

25-35   employee of the Department is engaged in examining those

25-36   documents, plus any other actual expenses incurred by the

25-37   employee while he is absent from his regular place of employment

25-38   to examine those documents.

25-39     Sec. 53.  Chapter 374 of NRS is hereby amended by adding

25-40   thereto the provisions set forth as sections 54 to 57, inclusive, of

25-41   this act.

25-42     Sec. 54.  This chapter must be administered in accordance

25-43   with the provisions of chapter 360B of NRS.

 

 

26-1      Sec. 55.  In determining the amount of taxes due pursuant to

26-2  this chapter:

26-3      1.  The amount due must be computed to the third decimal

26-4   place and rounded to a whole cent using a method that rounds up

26-5   to the next cent if the numeral in the third decimal place is

26-6   greater than 4.

26-7      2.  A retailer may compute the amount due on a transaction

26-8   on the basis of each item involved in the transaction or a single

26-9   invoice for the entire transaction.

26-10     Sec. 56.  1.  If a purchaser wishes to claim an exemption

26-11   from the taxes imposed by this chapter, the retailer shall obtain

26-12   such identifying information from the purchaser at the time of

26-13   sale as is required by the Department.

26-14     2.  The Department shall, to the extent feasible, establish an

26-15   electronic system for submitting a request for an exemption. A

26-16   purchaser is not required to provide a signature to claim an

26-17   exemption if the request is submitted electronically.

26-18     3.  The Department may establish a system whereby a

26-19   purchaser who is exempt from the payment of the taxes imposed

26-20   by this chapter is issued an identification number that can be

26-21   presented to the retailer at the time of sale.

26-22     4.  A retailer shall maintain such records of exempt

26-23   transactions as are required by the Department.

26-24     5.  Except as otherwise provided in this subsection, a retailer

26-25   who complies with the provisions of this section is not liable for

26-26   the payment of any tax imposed by this chapter if the purchaser

26-27   improperly claims an exemption. If the purchaser improperly

26-28   claims an exemption, the purchaser is liable for the payment of

26-29   the tax. The provisions of this subsection do not apply if the

26-30   retailer fraudulently fails to collect the tax or solicits a purchaser

26-31   to participate in an unlawful claim of an exemption.

26-32     Sec. 57.  1.  If a retailer is unable to collect all or part of the

26-33   sales price of a sale, he is entitled to receive a deduction from his

26-34   taxable sales for that bad debt.

26-35     2.  Any deduction that is claimed pursuant to this section may

26-36   not include interest.

26-37     3.  The amount of any deduction claimed must equal the

26-38   amount of a deduction that may be claimed pursuant to 26 U.S.C.

26-39   § 166 for that sale minus:

26-40     (a) Any finance charge or interest charged as part of the sale;

26-41     (b) Any sales or use tax charged on the sales price;

26-42     (c) Any amount not paid on the sales price because the

26-43   tangible personal property that was sold has remained in the

26-44   possession of the retailer until the full sales price is paid;

26-45     (d) Any expense incurred in attempting to collect the bad debt;

26-46   and

27-1      (e) The value of any property sold that has been repossessed by

27-2  the retailer.

27-3      4.  A bad debt may be claimed as a deduction on the return

27-4   that covers the period during which the bad debt is written off in

27-5   the business records of the retailer that are maintained in the

27-6   ordinary course of the retailer’s business and is eligible to be

27-7   claimed as a deduction pursuant to 26 U.S.C. § 166 or, if the

27-8   retailer is not required to file a federal income tax return, would

27-9   be eligible to be claimed as a deduction pursuant to 26 U.S.C. §

27-10   166.

27-11     5.  If a bad debt for which a deduction has been claimed is

27-12   subsequently collected in whole or in part, the tax on the amount

27-13   so collected must be reported on the return that covers the period

27-14   in which the collection is made.

27-15     6.  If the amount of the bad debt is greater than the amount of

27-16   the taxable sales reported for the period during which the bad

27-17   debt is claimed as a deduction, a claim for a refund may be filed

27-18   pursuant to NRS 374.635 to 374.720, inclusive, except that the

27-19   time within which the claim may be filed begins on the date on

27-20   which the return that included the deduction was filed.

27-21     7.  If the retailer has contracted with a certified service

27-22   provider for the remittance of the tax due under this chapter, the

27-23   service provider may, on behalf of the retailer, claim any

27-24   deduction to which the retailer is entitled pursuant to this section.

27-25   The service provider shall credit or refund the full amount of any

27-26   deduction or refund received pursuant to this section to the

27-27   retailer.

27-28     8.  For the purposes of reporting a payment received on a bad

27-29   debt for which a deduction has been claimed, the payment must

27-30   first be applied to the sales price of the property sold and the tax

27-31   due thereon, and then to any interest, service charge or other

27-32   charge that was charged as part of the sale.

27-33     9.  If the records of a retailer indicate that a bad debt may be

27-34   allocated among other states that are members of the Streamlined

27-35   Sales and Use Tax Agreement, the retailer may allocate the bad

27-36   debt among those states.

27-37     10.  Except as otherwise provided in subsection 11, upon

27-38   determining that a retailer has filed a return which contains one

27-39   or more violations of the provisions of this section, the

27-40   Department shall:

27-41     (a) For the first return of any retailer which contains one or

27-42   more violations, issue a letter of warning to the retailer which

27-43   provides an explanation of the violation or violations contained in

27-44   the return.

27-45     (b) For the first or second return, other than a return

27-46   described in paragraph (a), in any calendar year which contains

28-1  one or more violations, assess a penalty equal to the amount of the

28-2  deduction claimed or $1,000, whichever is less.

28-3      (c) For the third and each subsequent return in any calendar

28-4   year which contains one or more violations, assess a penalty of

28-5   three times the amount of the deduction claimed or $3,000,

28-6   whichever is less.

28-7      11.  For the purposes of subsection 10, if the first violation of

28-8   this section by any retailer was determined by the Department

28-9   through an audit which covered more than one return of the

28-10   retailer, the Department shall treat all returns which were

28-11   determined through the same audit to contain a violation or

28-12   violations in the manner provided in paragraph (a) of

28-13  subsection 10.

28-14     12.  As used in this section:

28-15     (a) “Bad debt” means a debt that may be deducted pursuant to

28-16   26 U.S.C. § 166.

28-17     (b) “Certified service provider” has the meaning ascribed to it

28-18   in NRS 360B.060.

28-19     Sec. 58.  NRS 374.020 is hereby amended to read as follows:

28-20     374.020  Except where the context otherwise requires, the

28-21   definitions given in NRS 374.025 to [374.107,] 374.100, inclusive,

28-22   govern the construction of this chapter.

28-23     Sec. 59.  NRS 374.030 is hereby amended to read as follows:

28-24     374.030  1.  “Gross receipts” means the total amount of the

28-25   sale or lease or rental price, as the case may be, of the retail sales of

28-26   retailers, valued in money, whether received in money or otherwise,

28-27   without any deduction on account of any of the following:

28-28     (a) The cost of the property sold. However, in accordance with

28-29   such rules and regulations as the Department may prescribe, a

28-30   deduction may be taken if the retailer has purchased property for

28-31   some other purpose than resale, has reimbursed his vendor for tax

28-32   which the vendor is required to pay to the county or has paid the

28-33   use tax with respect to the property, and has resold the property

28-34   before making any use of the property other than retention,

28-35   demonstration or display while holding it for sale in the regular

28-36   course of business. If such a deduction is taken by the retailer, no

28-37   refund or credit will be allowed to his vendor with respect to the

28-38   sale of the property.

28-39     (b) The cost of the materials used, labor or service cost, interest

28-40   paid, losses or any other expense.

28-41     (c) The cost of transportation of the property before its sale to

28-42   the purchaser.

28-43     2.  The total amount of the sale or lease or rental price includes

28-44   all of the following:

28-45     (a) Any services that are a part of the sale.

28-46     (b) All receipts, cash, credits and property of any kind.

29-1      (c) Any amount for which credit is allowed by the seller to the

29-2  purchaser.

29-3      3.  “Gross receipts” does not include any of the following:

29-4      (a) Cash discounts allowed and taken on sales.

29-5      (b) The sale price of property returned by customers when the

29-6   full sale price is refunded either in cash or credit, but this exclusion

29-7   does not apply in any instance when the customer, in order to

29-8   obtain the refund, is required to purchase other property at a price

29-9   greater than the amount charged for the property that is returned.

29-10     (c) The price received for labor or services used in installing or

29-11   applying the property sold.

29-12     (d) The amount of any tax, not including any manufacturers’ or

29-13   importers’ excise tax, imposed by the United States upon or with

29-14   respect to retail sales, whether imposed upon the retailer or the

29-15   consumer.

29-16     [(e) The amount of any allowance against the selling price given

29-17   by a retailer for the value of a used vehicle which is taken in trade

29-18   on the purchase of another vehicle.]

29-19     4.  For purposes of the sales tax, if the retailers establish to the

29-20   satisfaction of the Department that the sales tax has been added to

29-21   the total amount of the sale price and has not been absorbed by

29-22   them, the total amount of the sale price shall be deemed to be the

29-23   amount received exclusive of the tax imposed.

29-24     Sec. 60.  NRS 374.040 is hereby amended to read as follows:

29-25     374.040  1.  “Occasional sale ” [,” except as otherwise

29-26   provided in subsection 2,] includes:

29-27     (a) A sale of property not held or used by a seller in the course

29-28   of an activity for which he is required to hold a seller’s permit,

29-29   provided such sale is not one of a series of sales sufficient in

29-30   number, scope and character to constitute an activity requiring the

29-31   holding of a seller’s permit.

29-32     (b) Any transfer of all or substantially all the property held or

29-33   used by a person in the course of such an activity when after such

29-34   transfer the real or ultimate ownership of such property is

29-35   substantially similar to that which existed before such transfer.

29-36     2.  [The term does not include the sale of a vehicle other than

29-37   the sale or transfer of a used vehicle to the seller’s spouse, child,

29-38   grandchild, parent, grandparent, brother or sister. For the purposes

29-39   of this section, the relation of parent and child includes adoptive

29-40   and illegitimate children and stepchildren.

29-41     3.] For the purposes of this section, stockholders, bondholders,

29-42   partners or other persons holding an interest in a corporation or

29-43   other entity are regarded as having the “real or ultimate ownership”

29-44   of the property of such corporation or other entity.

 

 

30-1      Sec. 61.  NRS 374.055 is hereby amended to read as follows:

30-2      374.055  1.  “Retail sale” or “sale at retail” means a sale for

30-3   any purpose other than resale in the regular course of business of

30-4   tangible personal property. [The terms do not include a sale of

30-5   property that:

30-6      (a) Meets the requirements of subparagraphs (1) and (2) of

30-7   paragraph (a) of subsection 4 of NRS 374.291;

30-8      (b) Is made available for sale within 2 years after it is acquired;

30-9   and

30-10     (c) Is made available for viewing by the public or prospective

30-11   purchasers, or both, within 2 years after it is acquired, whether or

30-12   not a fee is charged for viewing it and whether or not it is also used

30-13   for purposes other than viewing.]

30-14     2.  The delivery in a county of tangible personal property by an

30-15   owner or former owner thereof or by a factor, or agent of such

30-16   owner, former owner or factor, if the delivery is to a consumer or

30-17   person for redelivery to a consumer, pursuant to a retail sale made

30-18   by a retailer not engaged in business in the county, is a retail sale in

30-19   the county by the person making the delivery. He shall include the

30-20   retail selling price of the property in his gross receipts.

30-21     Sec. 62.  NRS 374.060 is hereby amended to read as follows:

30-22     374.060  1.  “Retailer” includes:

30-23     (a) Every seller who makes any retail sale or sales of tangible

30-24   personal property, and every person engaged in the business of

30-25   making retail sales at auction of tangible personal property owned

30-26   by the person or others.

30-27     (b) Every person engaged in the business of making sales for

30-28   storage, use or other consumption or in the business of making

30-29   sales at auction of tangible personal property owned by the person

30-30   or others for storage, use or other consumption.

30-31     (c) Every person making any retail sale of a vehicle or more

30-32   than two retail sales of other tangible personal property during any

30-33   12‑month period, including sales made in the capacity of assignee

30-34   for the benefit of creditors, or receiver or trustee in bankruptcy.

30-35     2.  When the Department determines that it is necessary for the

30-36   efficient administration of this chapter to regard any salesmen,

30-37   representatives, peddlers or canvassers as the agents of the dealers,

30-38   distributors, supervisors or employers under whom they operate or

30-39   from whom they obtain the tangible personal property sold by

30-40   them, irrespective of whether they are making sales on their own

30-41   behalf or on behalf of such dealers, distributors, supervisors or

30-42   employers, the Department may so regard them and may regard the

30-43   dealers, distributors, supervisors or employers as retailers for

30-44   purposes of this chapter.

30-45     3.  A licensed optometrist or physician is a consumer of, and

30-46   shall not be considered, a retailer within the provisions of this

31-1  chapter, with respect to the ophthalmic materials used or

31-2  furnished by him in the performance of his professional services

31-3   in the diagnosis, treatment or correction of conditions of the

31-4   human eye, including the adaptation of lenses or frames for the

31-5   aid thereof.

31-6      Sec. 63.  NRS 374.060 is hereby amended to read as follows:

31-7      374.060  1.  “Retailer” includes:

31-8      (a) Every seller who makes any retail sale or sales of tangible

31-9   personal property, and every person engaged in the business of

31-10   making retail sales at auction of tangible personal property owned

31-11   by the person or others.

31-12     (b) Every person engaged in the business of making sales for

31-13   storage, use or other consumption or in the business of making

31-14   sales at auction of tangible personal property owned by the person

31-15   or others for storage, use or other consumption.

31-16     (c) Every person making [any retail sale of a vehicle or] more

31-17   than two retail sales of other tangible personal property during any

31-18   12‑month period, including sales made in the capacity of assignee

31-19   for the benefit of creditors, or receiver or trustee in bankruptcy.

31-20     2.  When the Department determines that it is necessary for the

31-21   efficient administration of this chapter to regard any salesmen,

31-22   representatives, peddlers or canvassers as the agents of the dealers,

31-23   distributors, supervisors or employers under whom they operate or

31-24   from whom they obtain the tangible personal property sold by

31-25   them, irrespective of whether they are making sales on their own

31-26   behalf or on behalf of such dealers, distributors, supervisors or

31-27   employers, the Department may so regard them and may regard the

31-28   dealers, distributors, supervisors or employers as retailers for

31-29   purposes of this chapter.

31-30     Sec. 64.  NRS 374.070 is hereby amended to read as follows:

31-31     374.070  1.  “Sales price” means the total amount for which

31-32   tangible property is sold, valued in money, whether paid in money

31-33   or otherwise, without any deduction on account of any of the

31-34   following:

31-35     (a) The cost of the property sold.

31-36     (b) The cost of the materials used, labor or service cost, interest

31-37   charged, losses, or any other expenses.

31-38     (c) The cost of transportation of the property before its purchase.

31-39     2.  The total amount for which property is sold includes all of

31-40   the following:

31-41     (a) Any services that are a part of the sale.

31-42     (b) Any amount for which credit is given to the purchaser by the

31-43   seller.

31-44     3.  “Sales price” does not include any of the following:

31-45     (a) Cash discounts allowed and taken on sales.

32-1      (b) The amount charged for property returned by customers

32-2  when the entire amount charged therefor is refunded either in cash

32-3   or credit; but this exclusion does not apply in any instance when the

32-4   customer, in order to obtain the refund, is required to purchase

32-5   other property at a price greater than the amount charged for the

32-6   property that is returned.

32-7      (c) The amount charged for labor or services rendered in

32-8   installing or applying the property sold.

32-9      (d) The amount of any tax , [(] not including [, however,] any

32-10   manufacturers’ or importers’ excise tax , [)] imposed by the United

32-11   States upon or with respect to retail sales, whether imposed upon

32-12   the retailer or the consumer.

32-13     (e) The amount of any tax imposed by the State of Nevada upon

32-14   or with respect to the storage, use or other consumption of tangible

32-15   personal property purchased from any retailer.

32-16     [(f) The amount of any allowance against the selling price given

32-17   by a retailer for the value of a used vehicle which is taken in trade

32-18   on the purchase of another vehicle.

32-19     4.  For the purpose of a sale of a vehicle by a seller who is not

32-20   required to be registered with the Department of Taxation, the sales

32-21   price is the value established in the manner set forth in

32-22  NRS 374.112.]

32-23     Sec. 65.  NRS 374.085 is hereby amended to read as follows:

32-24     374.085  “Storage, use or other consumption” does not include

32-25   [:

32-26     1.  The] the keeping, retaining or exercising any right or power

32-27   over tangible personal property for the purpose of subsequently

32-28   transporting it outside the State for use thereafter solely outside the

32-29   State, or for the purpose of being processed, fabricated or

32-30   manufactured into, attached to, or incorporated into, other tangible

32-31   personal property to be transported outside the State and thereafter

32-32   used solely outside the State . [; or

32-33     2.  The keeping, retaining or exercising any right or power over

32-34   tangible property that:

32-35     (a) Meets the requirements of subparagraphs (1) and (2) of

32-36   paragraph (a) of subsection 4 of NRS 374.291;

32-37     (b) Is made available for sale within 2 years after it is acquired;

32-38   and

32-39     (c) Is made available for viewing by the public or prospective

32-40   purchasers, or both, within 2 years after it is acquired, whether or

32-41   not a fee is charged for viewing it and whether or not it is also used

32-42   for purposes other than viewing.]

 

 

 

 

33-1      Sec. 66.  NRS 374.128 is hereby amended to read as follows:

33-2      374.128  1.  If the State or a political subdivision of the State

33-3   enters into a contract pursuant to chapter 332 or 333 of NRS on or

33-4   after June 5, 2001, with a person who:

33-5      (a) Sells tangible personal property in this state; and

33-6      (b) Has not obtained a permit pursuant to NRS 374.130 [because

33-7   he does not maintain a place of business within this state,] or

33-8   registered pursuant to section 9 of this act,

33-9  the contract must include a provision requiring the person to obtain

33-10   a permit pursuant to NRS 374.130 or to register pursuant to

33-11   section 9 of this act, and to [agree to] collect and pay the taxes

33-12   imposed pursuant to this chapter on the sale of tangible personal

33-13   property in any county in this state. For the purposes of [the] a

33-14   permit obtained pursuant to NRS 374.130, the person shall be

33-15   deemed to have a place of business in each county in this state, but

33-16   shall pay the fee for a single permit.

33-17     2.  The Department may require a state agency or local

33-18   government to submit such documentation as is necessary to ensure

33-19   compliance with this section.

33-20     Sec. 67.  NRS 374.130 is hereby amended to read as follows:

33-21     374.130  1.  Every person desiring to engage in or conduct

33-22   business as a seller within a county shall register with the

33-23   Department pursuant to section 9 of this act or file with the

33-24   Department an application for a permit for each place of business,

33-25   unless he intends to sell vehicles and will make fewer than three

33-26   retail sales of vehicles during any 12-month period.

33-27     2.  Every application for a permit must:

33-28     (a) Be made upon a form prescribed by the Department.

33-29     (b) Set forth the name under which the applicant transacts or

33-30   intends to transact business and the location of his place or places

33-31   of business.

33-32     (c) Set forth such other information as the Department may

33-33   require.

33-34     3.  The application must be signed by [the] :

33-35     (a) The owner if he is a natural person; [in the case of an

33-36   association or partnership, by a]

33-37     (b) A member or partner[; in the case of a corporation, by an] if

33-38   the seller is an association or partnership; or

33-39     (c) An executive officer or some person specifically authorized

33-40   [by the corporation] to sign the application[, to which must be

33-41   attached the written evidence of his authority.] if the seller is a

33-42   corporation. Written evidence of the signer’s authority must be

33-43   attached to the application.

 

 

 

34-1      Sec. 68.  NRS 374.130 is hereby amended to read as follows:

34-2      374.130  1.  Every person desiring to engage in or conduct

34-3   business as a seller within a county shall register with the

34-4   Department pursuant to section 9 of this act or file with the

34-5   Department an application for a permit for each place of business .

34-6   [, unless he intends to sell vehicles and will make fewer than three

34-7   retail sales of vehicles during any 12-month period.]

34-8      2.  Every application for a permit must:

34-9      (a) Be made upon a form prescribed by the Department.

34-10     (b) Set forth the name under which the applicant transacts or

34-11   intends to transact business and the location of his place or places

34-12   of business.

34-13     (c) Set forth such other information as the Department may

34-14   require.

34-15     3.  The application must be signed by:

34-16     (a) The owner if he is a natural person;

34-17     (b) A member or partner if the seller is an association or

34-18   partnership; or

34-19     (c) An executive officer or some person specifically authorized

34-20   to sign the application if the seller is a corporation. Written

34-21   evidence of the signer’s authority must be attached to the

34-22   application.

34-23     Sec. 69.  NRS 374.165 is hereby amended to read as follows:

34-24     374.165  [The] A resale certificate relieves the seller from the

34-25   burden of proof only if taken in good faith from a person who [is] :

34-26     1.  Is engaged in the business of selling tangible personal

34-27   property [and who holds the permit provided for in NRS 374.130 to

34-28   374.185, inclusive, and who, at] ;

34-29     2.  Is registered pursuant to section 9 of this act or holds a

34-30   permit issued pursuant to NRS 374.140; and

34-31     3.  At the time of purchasing the tangible personal property,

34-32   intends to sell it in the regular course of business or is unable to

34-33   ascertain at the time of purchase whether the property will be sold

34-34   or will be used for some other purpose.

34-35     Sec. 70.  NRS 374.170 is hereby amended to read as follows:

34-36     374.170  1.  [The certificate shall:] A resale certificate must:

34-37     (a) Be signed by and bear the name and address of the

34-38   purchaser.

34-39     (b) Indicate that the purchaser is registered pursuant to section

34-40   9 of this act or contain the number of the permit issued to the

34-41   purchaser[.] pursuant to NRS 374.140.

34-42     (c) Indicate the general character of the tangible personal

34-43   property sold by the purchaser in the regular course of business.

34-44     2.  The certificate [shall] must be substantially in such form as

34-45   the Department may prescribe.

 

 

35-1      Sec. 71.  NRS 374.235 is hereby amended to read as follows:

35-2      374.235  [The] A resale certificate relieves the person selling

35-3   the property from the burden of proof only if taken in good faith

35-4   from a person who [is] :

35-5      1.  Is engaged in the business of selling tangible personal

35-6   property [and who holds the permit provided for by NRS 374.130

35-7   to 374.185, inclusive, and who, at] ;

35-8      2.  Is registered pursuant to section 9 of this act or holds a

35-9   permit issued pursuant to NRS 374.140; and

35-10     3.  At the time of purchasing the tangible personal property,

35-11   intends to sell it in the regular course of business or is unable to

35-12   ascertain at the time of purchase whether the property will be sold

35-13   or will be used for some other purpose.

35-14     Sec. 72.  NRS 374.240 is hereby amended to read as follows:

35-15     374.240  1.  [The certificate shall:] A resale certificate must:

35-16     (a) Be signed and bear the name and address of the purchaser.

35-17     (b) Indicate that the purchaser is registered pursuant to section

35-18   9 of this act or contain the number of the permit issued to the

35-19   purchaser[.] pursuant to NRS 374.140.

35-20     (c) Indicate the general character of the tangible personal

35-21   property sold by the purchaser in the regular course of business.

35-22     2.  The certificate [shall] must be substantially in such form as

35-23   the Department may prescribe.

35-24     Sec. 73.  NRS 374.287 is hereby amended to read as follows:

35-25     374.287  1.  There are exempted from the taxes imposed by

35-26   this chapter the gross receipts from sales and the storage, use or

35-27   other consumption of:

35-28     (a) Prosthetic devices, orthotic appliances and ambulatory casts

35-29   for human use, and other supports and casts if prescribed or applied

35-30   by a licensed provider of health care, within his scope of practice,

35-31   for human use.

35-32     (b) Appliances and supplies relating to an ostomy.

35-33     (c) Products for hemodialysis.

35-34     (d) [Any ophthalmic or ocular device or appliance prescribed by

35-35   a physician or optometrist.

35-36     (e)] Medicines:

35-37         (1) Prescribed for the treatment of a human being by a person

35-38   authorized to prescribe medicines, and dispensed on a prescription

35-39   filled by a registered pharmacist in accordance with law;

35-40         (2) Furnished by a licensed physician, dentist or podiatric

35-41   physician to his own patient for the treatment of the patient;

35-42         (3) Furnished by a hospital for treatment of any person

35-43   pursuant to the order of a licensed physician, dentist or podiatric

35-44   physician; or

35-45         (4) Sold to a licensed physician, dentist, podiatric physician

35-46   or hospital for the treatment of a human being.

36-1      2.  As used in this section:

36-2      (a) “Medicine” means any substance or preparation intended for

36-3   use by external or internal application to the human body in the

36-4   diagnosis, cure, mitigation, treatment or prevention of disease or

36-5   affliction of the human body and which is commonly recognized as

36-6   a substance or preparation intended for such use. The term includes

36-7   splints, bandages, pads, compresses and dressings.

36-8      (b) “Medicine” does not include:

36-9          (1) Any auditory , ophthalmic or ocular device or appliance.

36-10         (2) Articles which are in the nature of instruments, crutches,

36-11   canes, devices or other mechanical, electronic, optical or physical

36-12   equipment.

36-13         (3) Any alcoholic beverage, except where the alcohol merely

36-14   provides a solution in the ordinary preparation of a medicine.

36-15         (4) Braces or supports, other than those prescribed or applied

36-16   by a licensed provider of health care, within his scope of practice,

36-17   for human use.

36-18     3.  Insulin furnished by a registered pharmacist to a person for

36-19   treatment of diabetes as directed by a physician shall be deemed to

36-20   be dispensed on a prescription within the meaning of this section.

36-21     Sec. 74.  NRS 374.360 is hereby amended to read as follows:

36-22     374.360  Except as otherwise provided in NRS 374.385[,] or

36-23   required by the Department pursuant to section 9 of this act, the

36-24   taxes imposed by this chapter are due and payable to the

36-25   Department monthly on or before the last day of the month next

36-26   succeeding each month.

36-27     Sec. 75.  NRS 374.365 is hereby amended to read as follows:

36-28     374.365  Except as otherwise required by the Department

36-29   pursuant to section 9 of this act:

36-30     1.  On or before the last day of the month following each

36-31   reporting period, a return for the preceding period must be filed

36-32   with the Department in such form as the Department may prescribe.

36-33   Any return required to be filed by this section must be combined

36-34   with any return required to be filed pursuant to the provisions of

36-35   chapter 372 of NRS.

36-36     2.  For purposes of [the] :

36-37     (a) The sales tax a return must be filed by every seller. [For

36-38   purposes of the]

36-39     (b) The use tax a return must be filed by every retailer

36-40   maintaining a place of business in the county and by every person

36-41   purchasing tangible personal property, the storage, use or other

36-42   consumption of which is subject to the use tax, who has not paid

36-43   the use tax due . [to a retailer required to collect the tax.]

36-44     3.  Returns must be signed by the person required to file the

36-45   return or by his authorized agent but need not be verified by oath.

 

37-1      Sec. 76.  NRS 374.370 is hereby amended to read as follows:

37-2      374.370  1.  Except as otherwise required by the Department

37-3   pursuant to section 9 of this act or provided in sections 13 to 18,

37-4   inclusive, of this act:

37-5      (a) For the purposes of the sales tax:

37-6      [(a)] (1) The return must show the gross receipts of the seller

37-7   during the preceding reporting period.

37-8      [(b)] (2) The gross receipts must be segregated and reported

37-9   separately for each county to which a sale of tangible personal

37-10   property pertains.

37-11     [(c)] (3) A sale pertains to the county in this state in which the

37-12   tangible personal property is or will be delivered to the purchaser or

37-13   his agent or designee.

37-14     [2.] (b) For purposes of the use tax:

37-15     [(a)] (1) In the case of a return filed by a retailer, the return

37-16   must show the total sales price of the property purchased by him,

37-17   the storage, use or consumption of which property became subject

37-18   to the use tax during the preceding reporting period.

37-19     [(b)] (2) The sales price must be segregated and reported

37-20   separately for each county to which a purchase of tangible personal

37-21   property pertains.

37-22     [(c)] (3) If the property was [brought] :

37-23             (I) Brought into this state by the purchaser or his agent or

37-24   designee, the sale pertains to the county in this state in which the

37-25   property is or will be first used, stored or otherwise consumed.

37-26   [Otherwise,]

37-27             (II) Not brought into this state by the purchaser or his

37-28   agent or designee, the sale pertains to the county in this state in

37-29   which the property was delivered to the purchaser or his agent or

37-30   designee.

37-31     [3.] 2.  In case of a return filed by a purchaser, the return must

37-32   show the total sales price of the property purchased by him, the

37-33   storage, use or consumption of which became subject to the use tax

37-34   during the preceding reporting period and indicate the county in this

37-35   state in which the property was first used, stored or consumed.

37-36     [4.] 3.  The return must also show the amount of the taxes for

37-37   the period covered by the return and such other information as the

37-38   Department deems necessary for the proper administration of this

37-39   chapter.

37-40     [5.  If a retailer:

37-41     (a) Is unable to collect all or part of the sales price of a sale, the

37-42   amount of which was included in the gross receipts reported for a

37-43   previous reporting period; and

37-44     (b) Has taken a deduction on his federal income tax return

37-45   pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to

37-46   collect,

38-1  he is entitled to receive a credit for the amount of sales tax paid on

38-2  account of that uncollected sales price. The credit may be used

38-3   against the amount of sales tax that the retailer is subsequently

38-4   required to pay pursuant to this chapter.

38-5      6.  If the Internal Revenue Service of the Department of the

38-6   Treasury disallows a deduction described in paragraph (b) of

38-7   subsection 5 and the retailer claimed a credit on a return for a

38-8   previous reporting period pursuant to subsection 5, the retailer shall

38-9   include the amount of that credit in the amount of taxes reported

38-10   pursuant to subsection 4 in the first return filed with the Department

38-11   after the deduction is disallowed.

38-12     7.  If a retailer collects all or part of the sales price for which he

38-13   claimed a credit on a return for a previous reporting period pursuant

38-14   to subsection 5, he shall include:

38-15     (a) The amount collected in the gross receipts reported pursuant

38-16   to paragraph (a) of subsection 1; and

38-17     (b) The sales tax payable on the amount collected in the amount

38-18   of taxes reported pursuant to subsection 4,

38-19  in the first return filed with the Department after that collection.

38-20     8.] 4.  Except as otherwise provided in subsection [9,] 5, upon

38-21   determining that a retailer has filed a return which contains one or

38-22   more violations of the provisions of this section, the Department

38-23   shall:

38-24     (a) For the first return of any retailer which contains one or more

38-25   violations, issue a letter of warning to the retailer which provides an

38-26   explanation of the violation or violations contained in the return.

38-27     (b) For the first or second return, other than a return described in

38-28   paragraph (a), in any calendar year which contains one or more

38-29   violations, assess a penalty equal to the amount of the tax which

38-30   was not reported or was reported for the wrong county or $1,000,

38-31   whichever is less.

38-32     (c) For the third and each subsequent return in any calendar year

38-33   which contains one or more violations, assess a penalty of three

38-34   times the amount of the tax which was not reported or was reported

38-35   for the wrong county or $3,000, whichever is less.

38-36     [9.] 5. For the purposes of subsection [8,] 4, if the first violation

38-37   of this section by any retailer was determined by the Department

38-38   through an audit which covered more than one return of the retailer,

38-39   the Department shall treat all returns which were determined

38-40   through the same audit to contain a violation or violations in the

38-41   manner provided in paragraph (a) of subsection [8.] 4.

38-42     Sec. 77.  NRS 374.375 is hereby amended to read as follows:

38-43     374.375  [The]

38-44     1.  Except as otherwise provided in subsection 2, a taxpayer

38-45   shall deduct and withhold from the taxes otherwise due from him

39-1  1.25 percent thereof to reimburse himself for the cost of collecting

39-2  the tax.

39-3      2.  The regulations adopted by the Department pursuant to

39-4   NRS 360B.110 may authorize the deduction and withholding

39-5   from the taxes otherwise due from a taxpayer such other amounts

39-6   as are required to carry out the Streamlined Sales and Use Tax

39-7   Agreement.

39-8      Sec. 78.  NRS 374.380 is hereby amended to read as follows:

39-9      374.380  [The]

39-10     1.  Except as otherwise required by the Department pursuant

39-11   to section 9 of this act, the person required to file [the] a return

39-12   shall deliver the return together with a remittance of the amount of

39-13   the tax due to the Department.

39-14     2.  The Department shall provide for the acceptance of credit

39-15   cards, debit cards or electronic transfers of money for the

39-16   payment of the tax due in the manner prescribed in NRS

39-17   353.1465.

39-18     Sec. 79.  NRS 374.385 is hereby amended to read as follows:

39-19     374.385  1.  [The] Except as otherwise provided in subsection

39-20   2 or required by the Department pursuant to section 9 of this act,

39-21   the reporting and payment period of a taxpayer whose taxable sales

39-22   do not exceed $10,000 per month is a calendar quarter.

39-23     2.  The Department, if it deems this action necessary in order to

39-24   insure payment to or facilitate the collection by the county of the

39-25   amount of taxes, may require returns and payment of the amount of

39-26   taxes for periods other than calendar months or quarters, depending

39-27   upon the principal place of business of the seller, retailer or

39-28   purchaser as the case may be, or for other than monthly or quarterly

39-29   periods.

39-30     Sec. 80.  NRS 374.640 is hereby amended to read as follows:

39-31     374.640  Except as otherwise provided in NRS 360.235 and

39-32   360.395[:] and section 57 of this act:

39-33     1.  No refund may be allowed unless a claim for it is filed with

39-34   the Department within 3 years after the last day of the month

39-35   following the close of the period for which the overpayment was

39-36   made.

39-37     2.  No credit may be allowed after the expiration of the period

39-38   specified for filing claims for refund unless a claim for credit is

39-39   filed with the Department within that period, or unless the credit

39-40   relates to a period for which a waiver is given pursuant to NRS

39-41   360.355.

39-42     Sec. 81.  NRS 374.7273 is hereby amended to read as follows:

39-43     374.7273  1.  In administering the provisions of NRS 374.340,

39-44   the Department shall apply the exemption for the sale of tangible

39-45   personal property delivered by the vendor to a forwarding agent for

39-46   shipment out of state to include:

40-1      [1.] (a) The sale of a vehicle to a nonresident to whom a special

40-2  movement permit has been issued by the Department of Motor

40-3   Vehicles pursuant to subsection 1 of NRS 482.3955; and

40-4      [2.] (b) The sale of farm machinery and equipment[, as defined

40-5   in NRS 374.286,] to a nonresident who submits proof to the vendor

40-6   that the farm machinery and equipment will be delivered out of

40-7   state not later than 15 days after the sale.

40-8      2.  As used in this section:

40-9      (a) “Agricultural use” has the meaning ascribed to it in

40-10  NRS 361A.030.

40-11     (b) “Farm machinery and equipment” means a farm tractor,

40-12   implement of husbandry, piece of equipment used for irrigation,

40-13   or a part used in the repair or maintenance of farm machinery

40-14   and equipment. The term does not include:

40-15         (1) A vehicle required to be registered pursuant to the

40-16   provisions of chapter 482 or 706 of NRS; or

40-17         (2) Machinery or equipment only incidentally employed for

40-18   the agricultural use of real property.

40-19     (c) “Farm tractor” means a motor vehicle designed and used

40-20   primarily for drawing an implement of husbandry.

40-21     (d) “Implement of husbandry” means a vehicle that is

40-22   designed, adapted or used for agricultural purposes, including,

40-23   without limitation, a plow, machine for mowing, hay baler,

40-24   combine, piece of equipment used to stack hay, till, harvest,

40-25   handle agricultural commodities or apply fertilizers, or other

40-26   heavy, movable equipment designed, adapted or used for

40-27   agricultural purposes.

40-28     Sec. 82.  NRS 374.785 is hereby amended to read as follows:

40-29     374.785  1.  All fees, taxes, interest and penalties imposed and

40-30   all amounts of tax required to be paid to counties under this chapter

40-31   must be paid to the Department in the form of remittances payable

40-32   to the Department.

40-33     2.  The Department shall deposit the payments in the State

40-34   Treasury to the credit of the Sales and Use Tax Account in the State

40-35   General Fund.

40-36     3.  The State Controller, acting upon the collection data

40-37   furnished by the Department, shall, each month, from the Sales and

40-38   Use Tax Account in the State General Fund:

40-39     (a) Transfer .75 percent of all fees, taxes, interest and penalties

40-40   collected in each county during the preceding month to the

40-41   appropriate account in the State General Fund as compensation to

40-42   the State for the costs of collecting the tax.

40-43     (b) Transfer .75 percent of all fees, taxes, interest and penalties

40-44   collected during the preceding month from out-of-state businesses

40-45   not maintaining a fixed place of business within this state to the

41-1  appropriate account in the State General Fund as compensation to

41-2  the State for the costs of collecting the tax.

41-3      (c) Determine for each county the amount of money equal to the

41-4   fees, taxes, interest and penalties collected in the county pursuant to

41-5   this chapter during the preceding month less the amount transferred

41-6   pursuant to paragraph (a).

41-7      (d) Transfer the total amount of taxes collected pursuant to this

41-8   chapter during the preceding month from out-of-state businesses

41-9   not maintaining a fixed place of business within this state, less the

41-10   amount transferred pursuant to paragraph (b), to the State

41-11   Distributive School Account in the State General Fund.

41-12     (e) Except as otherwise provided in NRS 387.528, transfer the

41-13   amount owed to each county to the Intergovernmental Fund and

41-14   remit the money to the credit of the county school district fund.

41-15     [4.  For the purpose of the distribution required by this section,

41-16   the occasional sale of a vehicle shall be deemed to take place in the

41-17   county to which the governmental services tax payable by the buyer

41-18   upon that vehicle is distributed.]

41-19     Sec. 83.  NRS 374A.020 is hereby amended to read as follows:

41-20     374A.020  1.  The collection of the tax imposed by NRS

41-21   374A.010 must be commenced on the first day of the first calendar

41-22   quarter that begins at least [30] 120 days after the last condition in

41-23   subsection 1 of NRS 374A.010 is met.

41-24     2.  The tax must be administered, collected and distributed in

41-25   the manner set forth in chapter 374 of NRS.

41-26     3.  The board of trustees of the school district shall transfer the

41-27   proceeds of the tax imposed by NRS 374A.010 from the county

41-28   school district fund to the fund described in NRS 354.6105 which

41-29   must be established by the board of trustees. The money deposited

41-30   in the fund described in NRS 354.6105 pursuant to this subsection

41-31   must be accounted for separately in that fund and must only be

41-32   expended by the board of trustees for the cost of the extraordinary

41-33   maintenance, extraordinary repair and extraordinary improvement

41-34   of school facilities within the county.

41-35     Sec. 84.  NRS 376A.060 is hereby amended to read as follows:

41-36     376A.060  Any ordinance enacted pursuant to NRS 376A.040

41-37   or 376A.050 must include:

41-38     1.  Provisions substantially identical to those contained in

41-39   chapter 374 of NRS, insofar as applicable.

41-40     2.  A provision that all amendments to chapter 374 of NRS after

41-41   the date of enactment of the ordinance, not inconsistent with the

41-42   chapter, automatically become a part of the ordinance imposing the

41-43   tax.

41-44     3.  A provision that specifies the date on which the tax is first

41-45   imposed or on which any change in the rate of the tax becomes

41-46   effective, which must be the first day of the first calendar quarter

42-1  that begins at least 120 days after the effective date of the

42-2  ordinance.

42-3      Sec. 85.  NRS 377.030 is hereby amended to read as follows:

42-4      377.030  1.  The board of county commissioners shall enact an

42-5   ordinance imposing a city-county relief tax.

42-6      2.  The ordinance enacted pursuant to this section must provide

42-7   that the city-county relief tax be imposed on the first day of the first

42-8   [month following] calendar quarter that begins at least 120 days

42-9   after the effective date of the ordinance.

42-10     Sec. 86.  NRS 377.055 is hereby amended to read as follows:

42-11     377.055  [1.] The Department shall monthly determine for

42-12   each county an amount of money equal to the sum of:

42-13     [(a)] 1.  Any fees and any taxes, interest and penalties which

42-14   derive from the basic city-county relief tax collected in that county

42-15   pursuant to this chapter during the preceding month, less the

42-16   corresponding amount transferred to the State General Fund

42-17   pursuant to subsection 3 of NRS 377.050; and

42-18     [(b)] 2.  That proportion of the total amount of taxes which

42-19   derive from that portion of the tax levied at the rate of one-half of 1

42-20   percent collected pursuant to this chapter during the preceding

42-21   month from out-of-state businesses not maintaining a fixed place of

42-22   business within this state, less the corresponding amount transferred

42-23   to the State General Fund pursuant to subsection 3 of NRS 377.050,

42-24   which the population of that county bears to the total population of

42-25   all counties which have in effect a city-county relief tax

42-26  ordinance,

42-27  and deposit the money in the Local Government Tax Distribution

42-28   Account created by NRS 360.660 for credit to the respective

42-29   subaccounts of each county.

42-30     [2.  For the purpose of the distribution required by this section,

42-31   the occasional sale of a vehicle shall be deemed to take place in the

42-32   county to which the governmental services tax payable by the buyer

42-33   upon that vehicle is distributed.]

42-34     Sec. 87.  NRS 377A.020 is hereby amended to read as follows:

42-35     377A.020  1.  The board of county commissioners of any

42-36   county may enact an ordinance imposing a tax for a public transit

42-37   system or for the construction, maintenance and repair of public

42-38   roads, or both, pursuant to NRS 377A.030. The board of county

42-39   commissioners of any county whose population is less than 400,000

42-40   may enact an ordinance imposing a tax to promote tourism pursuant

42-41   to NRS 377A.030.

42-42     2.  An ordinance enacted pursuant to this chapter may not

42-43   become effective before a question concerning the imposition of the

42-44   tax is approved by a majority of the registered voters of the county

42-45   voting upon the question which the board may submit to the voters

42-46   at any general election. A county may combine the questions for a

43-1  public transit system and for the construction, maintenance and

43-2  repair of public roads with questions submitted pursuant to NRS

43-3   244.3351, 278.710 or 371.045, or any combination thereof. The

43-4   board shall also submit to the voters at a general election any

43-5   proposal to increase the rate of the tax or change the previously

43-6   approved uses for the proceeds of the tax.

43-7      3.  Any ordinance enacted pursuant to this section must specify

43-8   the date on which the tax must first be imposed or on which an

43-9   increase in the rate of the tax becomes effective, which must [not be

43-10   earlier than] be the first day of the [second calendar month

43-11   following] first calendar quarter that begins at least 120 days

43-12   after the approval of the question by the voters.

43-13     Sec. 88.  NRS 377A.030 is hereby amended to read as follows:

43-14     377A.030  Except as otherwise provided in NRS 377A.110, any

43-15   ordinance enacted under this chapter must include provisions in

43-16   substance as follows:

43-17     1.  A provision imposing a tax upon retailers at the rate of not

43-18   more than:

43-19     (a) For a tax to promote tourism, one-quarter of 1 percent; or

43-20     (b) For a tax to establish and maintain a public transit system or

43-21   for the construction, maintenance and repair of public roads, or

43-22   both, one-half of 1 percent,

43-23  of the gross receipts of any retailer from the sale of all tangible

43-24   personal property sold at retail, or stored, used or otherwise

43-25   consumed, in a county.

43-26     2.  Provisions substantially identical to those contained in

43-27   chapter 374 of NRS, insofar as applicable.

43-28     3.  A provision that all amendments to chapter 374 of NRS after

43-29   the date of enactment of the ordinance, not inconsistent with this

43-30   chapter, automatically become a part of an ordinance imposing the

43-31   tax for public mass transportation and construction of public roads

43-32   or the tax to promote tourism in the county.

43-33     4.  A provision that the county shall contract before the

43-34   effective date of the ordinance with the Department to perform all

43-35   functions incident to the administration or operation of the tax in

43-36   the county.

43-37     5.  A provision that [exempts from the tax or any increase in the

43-38   tax the gross receipts from] a purchaser is entitled to a refund, in

43-39   accordance with the provisions of NRS 374.635 to 374.720,

43-40   inclusive, of the amount of the tax required to be paid that is

43-41   attributable to the tax imposed upon the sale of, and the storage,

43-42   use or other consumption in a county of, tangible personal property

43-43   used for the performance of a written contract for the construction

43-44   of an improvement to real property, entered into on or before the

43-45   effective date of the tax or the increase in the tax, or for which a

43-46   binding bid was submitted before that date if the bid was afterward

44-1  accepted, if under the terms of the contract or bid the contract price

44-2  or bid amount cannot be adjusted to reflect the imposition of the tax

44-3   or the increase in the tax.

44-4      Sec. 89.  NRS 377A.110 is hereby amended to read as follows:

44-5      377A.110  1.  Subject to the provisions of subsection 2, the

44-6   board may gradually reduce the amount of tax imposed pursuant to

44-7   this chapter for a public transit system or for the construction,

44-8   maintenance and repair of public roads, or both, as revenue from

44-9   the operation of the public transit system permits. The date on

44-10   which any reduction in the tax becomes effective must be the first

44-11   day of the first calendar quarter that begins at least 120 days after

44-12   the effective date of the ordinance reducing the amount of tax

44-13   imposed.

44-14     2.  No such taxing ordinance may be repealed or amended or

44-15   otherwise directly or indirectly modified in such a manner as to

44-16   impair any outstanding bonds issued under this chapter, or other

44-17   obligations incurred under this chapter, until all obligations, for

44-18   which revenues from the ordinance have been pledged or otherwise

44-19   made payable from such revenues pursuant to this chapter, have

44-20   been discharged in full, but the board may at any time dissolve the

44-21   regional transportation commission and provide that no further

44-22   obligations be incurred thereafter.

44-23     Sec. 90.  NRS 377B.100 is hereby amended to read as follows:

44-24     377B.100  1.  The board of county commissioners of any

44-25   county may by ordinance, but not as in a case of emergency,

44-26   impose a tax for infrastructure pursuant to this section and NRS

44-27   377B.110.

44-28     2.  An ordinance enacted pursuant to this chapter may not

44-29   become effective before a question concerning the imposition of the

44-30   tax is approved by a two-thirds majority of the members of the

44-31   board of county commissioners. Any proposal to increase the rate

44-32   of the tax or change the previously approved uses for the proceeds

44-33   of the tax must be approved by a two-thirds majority of the

44-34   members of the board of county commissioners. The board of

44-35   county commissioners shall not change a previously approved use

44-36   for the proceeds of the tax to a use that is not authorized for that

44-37   countypursuant to NRS 377B.160.

44-38     3.  An ordinance enacted pursuant to this section must:

44-39     (a) Specify the date on which the tax must first be imposed or on

44-40   which an increase in the rate of the tax becomes effective, which

44-41   must occur on the first day of the first month of the next calendar

44-42   quarter that is at least [60] 120 days after the date on which a two

44-43  -thirds majority of the board of county commissioners approved the

44-44   question.

44-45     (b) In a county whose population is 400,000 or more, provide

44-46   for the cessation of the tax not later than:

45-1          (1) The last day of the month in which the Department

45-2  determines that the total sum collected since the tax was first

45-3   imposed, exclusive of any penalties and interest, exceeds $2.3

45-4   billion; or

45-5          (2) June 30, 2025,

45-6  whichever occurs earlier.

45-7      4.  The board of county commissioners in a county whose

45-8   population is 400,000 or more and in which a water authority exists

45-9   shall review the necessity for the continued imposition of the tax

45-10   authorized pursuant to this chapter at least once every 10 years.

45-11     5.  Before enacting an ordinance pursuant to this chapter, the

45-12   board of county commissioners shall hold a public hearing

45-13   regarding the imposition of a tax for infrastructure. In a county

45-14   whose population is 400,000 or more and in which a water

45-15   authority exists, the water authority shall also hold a public hearing

45-16   regarding the tax for infrastructure. Notice of the time and place of

45-17   each hearing must be:

45-18     (a) Published in a newspaper of general circulation in the county

45-19   at least once a week for the 2 consecutive weeks immediately

45-20   preceding the date of the hearing. Such notice must be a display

45-21   advertisement of not less than 3 inches by 5 inches.

45-22     (b) Posted at the building in which the meeting is to be held and

45-23   at not less than three other separate, prominent places within the

45-24   county at least 2 weeks before the date of the hearing.

45-25     6.  Before enacting an ordinance pursuant to this chapter, the

45-26   board of county commissioners of a county whose population is

45-27   less than 400,000 or a county whose population is 400,000 or more

45-28   and in which no water authority exists,shall develop a plan for the

45-29   expenditure of the proceeds of a tax imposed pursuant to this

45-30   chapter for the purposes set forth in NRS 377B.160. The plan may

45-31   include a regional project for which two or more such counties have

45-32   entered into an interlocal agreement to expend jointly all or a

45-33   portion of the proceeds of a tax imposed in each county pursuant to

45-34   this chapter. Such a plan must include, without limitation, the date

45-35   on which the plan expires, a description of each proposed project,

45-36   the method of financing each project and the costs related to each

45-37   project. Before adopting a plan pursuant to this subsection, the

45-38   board of county commissioners of a county in which a regional

45-39   planning commission has been established pursuant to NRS

45-40   278.0262 shall transmit to the regional planning commission a list

45-41   of the proposed projects for which a tax for infrastructure may be

45-42   imposed. The regional planning commission shall hold a public

45-43   hearing at which it shall rank each project in relative priority.

45-44  The regional planning commission shall transmit its rankings to the

45-45   board of county commissioners. The recommendations of the

45-46   regional planning commission regarding the priority of the

45-47   proposed

46-1  projects are not binding on the board of county commissioners. The

46-2  board of county commissioners shall hold at least one public hearing

46-3   on the plan. Notice of the time and place of the hearing must be

46-4   provided in the manner set forth in subsection 5. The plan must be

46-5   approved by the board of county commissioners at a public hearing.

46-6   Subject to the provisions of subsection 7, on or before the date on

46-7   which a plan expires, the board of county commissioners shall

46-8   determine whether a necessity exists for the continued imposition

46-9   of the tax. If the board determines that such a necessity does not

46-10   exist, the board shall repeal the ordinance that enacted the tax. If the

46-11   board of county commissioners determines that the tax must be

46-12   continued for a purpose set forth in NRS 377B.160, the board shall

46-13   adopt, in the manner prescribed in this subsection, a new plan for

46-14   the expenditure of the proceeds of the tax for such a purpose.

46-15     7.  No ordinance imposing a tax which is enacted pursuant to

46-16   this chapter may be repealed or amended or otherwise directly or

46-17   indirectly modified in such a manner as to impair any outstanding

46-18   bonds or other obligations which are payable from or secured by a

46-19   pledge of a tax enacted pursuant to this chapter until those bonds or

46-20   other obligations have been discharged in full.

46-21     Sec. 91.  NRS 377B.110 is hereby amended to read as follows:

46-22     377B.110  An ordinance enacted pursuant to this chapter must

46-23   include provisions in substance as follows:

46-24     1.  A provision imposing a tax upon retailers at the rate of not

46-25   more than:

46-26     (a) In a county whose population is 100,000 or more but less

46-27   than 400,000, one-eighth of 1 percent; or

46-28     (b) In all other counties, one-quarter of 1 percent,

46-29  of the gross receipts of any retailer from the sale of all tangible

46-30   personal property sold at retail, or stored, used or otherwise

46-31   consumed, in the county.

46-32     2.  Provisions substantially identical to those contained in

46-33   chapter 374 of NRS, insofar as applicable.

46-34     3.  A provision that all amendments to chapter 374 of NRS after

46-35   the date of enactment of the ordinance, not inconsistent with this

46-36   chapter, automatically become a part of an ordinance enacted

46-37   pursuant to this chapter.

46-38     4.  A provision stating the specific purpose for which the

46-39   proceeds of the tax must be expended.

46-40     5.  A provision that the county shall contract before the

46-41   effective date of the ordinance with the Department to perform all

46-42   functions incident to the administration or operation of the tax in

46-43   the county.

46-44     6.  A provision that [exempts from the tax or any increase in the

46-45   tax the gross receipts from] a purchaser is entitled to a refund, in

46-46   accordance with the provisions of NRS 374.635 to 374.720,

47-1  inclusive, of the amount of the tax required to be paid that is

47-2  attributable to the tax imposed upon the sale of, and the storage,

47-3   use or other consumption in a county of, tangible personal property

47-4   used for the performance of a written contract:

47-5      (a) Entered into on or before the effective date of the tax or the

47-6   increase in the tax; or

47-7      (b) For the construction of an improvement to real property for

47-8   which a binding bid was submitted before the effective date of the

47-9   tax or the increase in the tax if the bid was afterward

47-10  accepted,

47-11  if, under the terms of the contract or bid, the contract price or bid

47-12   amount cannot be adjusted to reflect the imposition of the tax or the

47-13   increase in the tax.

47-14     Sec. 92.  NRS 354.705 is hereby amended to read as follows:

47-15     354.705  1.  As soon as practicable after the Department takes

47-16   over the management of a local government, the Executive Director

47-17   shall:

47-18     (a) Determine the total amount of expenditures necessary to

47-19   allow the local government to perform the basic functions for which

47-20   it was created;

47-21     (b) Determine the amount of revenue reasonably expected to be

47-22   available to the local government; and

47-23     (c) Consider any alternative sources of revenue available to the

47-24   local government.

47-25     2.  If the Executive Director determines that the available

47-26   revenue is not sufficient to provide for the payment of required debt

47-27   service and operating expenses, he may submit his findings to the

47-28   Committee who shall review the determinations made by the

47-29   Executive Director. If the Committee determines that additional

47-30   revenue is needed, it shall prepare a recommendation to the Nevada

47-31   Tax Commission as to which one or more of the following

47-32   additional taxes or charges should be imposed by the local

47-33   government:

47-34     (a) The levy of a property tax up to a rate which when combined

47-35   with all other overlapping rates levied in the State does not exceed

47-36   $4.50 on each $100 of assessed valuation.

47-37     (b) An additional tax on transient lodging at a rate not to exceed

47-38   1 percent of the gross receipts from the rental of transient lodging

47-39   within the boundaries of the local government upon all persons in

47-40   the business of providing lodging. Any such tax must be collected

47-41   and administered in the same manner as all other taxes on transient

47-42   lodging are collected by or for the local government.

47-43     (c) Additional service charges appropriate to the local

47-44   government.

47-45     (d) If the local government is a county or has boundaries that are

47-46   conterminous with the boundaries of the county:

48-1          (1) An additional tax on the gross receipts from the sale or

48-2  use of tangible personal property not to exceed one quarter of 1

48-3   percent throughout the county. The ordinance imposing any such

48-4   tax must [include] :

48-5             (I) Include provisions in substance which comply with

48-6   the requirements of subsections 2 to 5, inclusive, of NRS

48-7   377A.030.

48-8             (II) Specify the date on which the tax must first be

48-9   imposed or on which a change in the rate of the tax becomes

48-10   effective, which must be the first day of the first calendar quarter

48-11   that begins at least 120 days after the effective date of the

48-12   ordinance.

48-13         (2) An additional governmental services tax of not more than

48-14   1 cent on each $1 of valuation of the vehicle for the privilege of

48-15   operating upon the public streets, roads and highways of the county

48-16   on each vehicle based in the county except those vehicles exempt

48-17   from the governmental services tax imposed pursuant to chapter

48-18   371 of NRS or a vehicle subject to NRS 706.011 to 706.861,

48-19   inclusive, which is engaged in interstate or intercounty operations.

48-20   As used in this subparagraph, “based” has the meaning ascribed to

48-21   it in

48-22  NRS 482.011.

48-23     3.  Upon receipt of the plan from the Committee, a panel

48-24   consisting of three members of the Nevada Tax Commission

48-25   appointed by the Nevada Tax Commission and three members of

48-26   the Committee appointed by the Committee shall hold a public

48-27   hearing at a location within the boundaries of the local government

48-28   in which the severe financial emergency exists after giving public

48-29   notice of the hearing at least 10 days before the date on which the

48-30   hearing will be held. In addition to the public notice, the panel shall

48-31   give notice to the governing body of each local government whose

48-32   jurisdiction overlaps with the jurisdiction of the local government

48-33   in which the severe financial emergency exists.

48-34     4.  After the public hearing conducted pursuant to subsection 3,

48-35   the Nevada Tax Commission may adopt the plan as submitted or

48-36   adopt a revised plan. Any plan adopted pursuant to this section

48-37   must include the duration for which any new or increased taxes or

48-38   charges may be collected which must not exceed 5 years.

48-39     5.  Upon adoption of the plan by the Nevada Tax Commission,

48-40   the local government in which the severe financial emergency

48-41   exists shall impose or cause to be imposed the additional taxes and

48-42   charges included in the plan for the duration stated in the plan or

48-43   until the severe financial emergency has been determined by the

48-44   Nevada Tax Commission to have ceased to exist.

48-45     6.  The allowed revenue from taxes ad valorem determined

48-46   pursuant to NRS 354.59811 does not apply to any additional

48-47   property tax levied pursuant to this section.

49-1      7.  If a plan fails to satisfy the expenses of the local government

49-2  to the extent expected, the Committee shall report such failure to:

49-3      (a) The county for consideration of absorption of services; or

49-4      (b) If the local government is a county, to the next regular

49-5   session of the Legislature.

49-6      Sec. 93.  NRS 482.225 is hereby amended to read as follows:

49-7      482.225  1.  When application is made to the Department for

49-8   registration of a vehicle purchased [in this state from a person other

49-9   than a retailer required to be registered with the Department of

49-10   Taxation or of a vehicle purchased] outside this state and not

49-11   previously registered within this state where the registrant or owner

49-12   at the time of purchase was not a resident of or employed in this

49-13   state, the Department or its agent shall determine and collect any

49-14   sales or use tax due and shall remit the tax to the Department of

49-15   Taxation except as otherwise provided in NRS 482.260.

49-16     2.  If the registrant or owner of the vehicle was a resident of the

49-17   State, or employed within the State, at the time of the purchase of

49-18   that vehicle, it is presumed that the vehicle was purchased for use

49-19   within the State and the representative or agent of the Department

49-20   of Taxation shall collect the tax and remit it to the Department of

49-21   Taxation.

49-22     3.  Until all applicable taxes and fees are collected, the

49-23   Department shall refuse to register the vehicle.

49-24     4.  In any county whose population is less than 50,000, the

49-25   Department shall designate the county assessor as the agent of the

49-26   Department for the collection of any sales or use tax.

49-27     5.  If the registrant or owner desires to refute the presumption

49-28   stated in subsection 2 that he purchased the vehicle for use in this

49-29   state, he must pay the tax to the Department and then may submit

49-30   his claim for exemption in writing, signed by him or his authorized

49-31   representative, to the Department together with his claim for refund

49-32   of tax erroneously or illegally collected.

49-33     6.  If the Department finds that the tax has been erroneously or

49-34   illegally collected, the tax must be refunded.

49-35     Sec. 94.  Section 29 of the Local Government Tax Act of 1991,

49-36   being chapter 491, Statutes of Nevada 1991, as amended by chapter

49-37   426, Statutes of Nevada 1993, at page 1370, is hereby amended to

49-38   read as follows:

49-39     Sec. 29.  1.  Except as otherwise provided in this

49-40   section and in section 34 of this Act and in addition to all

49-41   other sales and use taxes, the Board of County

49-42   Commissioners of Churchill, Elko, Humboldt, Washoe and

49-43   Lander Counties and the Board of Supervisors of Carson

49-44   City may by ordinance, but not as in a case of emergency,

49-45   impose a tax at the rate of up to 1/4 of 1 percent of the gross

49-46   receipts of any retailer from the sale of all tangible personal

49-47   property

50-1  sold at retail, or stored, used or otherwise consumed in the

50-2  county.

50-3      2.  The tax imposed pursuant to this section applies

50-4   throughout the county, including incorporated cities in the

50-5   county.

50-6      3.  The ordinance enacted pursuant to this section must

50-7   include provisions in substance as follows:

50-8      (a) Provisions substantially identical to those of the Local

50-9   School Support Tax Law, insofar as applicable.

50-10     (b) A provision that all amendments to the provisions of

50-11   the Local School Support Tax Law subsequent to the date of

50-12   enactment of the ordinance, not inconsistent with this

50-13   section, automatically become a part of the ordinance

50-14   enacted pursuant to subsection 1.

50-15     (c) A provision that the county shall contract before the

50-16   effective date of the ordinance enacted pursuant to

50-17   subsection 1 with the Department to perform all functions

50-18   incident to the administration or operation of the tax imposed

50-19   pursuant to subsection 1.

50-20     (d) A provision that [exempts from the additional one

50-21   quarter of one percent tax increase authorized pursuant to

50-22   this section, the gross receipts from] a purchaser is entitled

50-23   to a refund, in accordance with the provisions of NRS

50-24   374.635 to 374.720, inclusive, of the amount of the tax

50-25   required to be paid that is attributable to the tax imposed

50-26   upon the sale of, and the storage, use or other consumption

50-27   in a county of, tangible personal property used for the

50-28   performance of a written contract for the construction of an

50-29   improvement to real property which was executed before

50-30   July 30, 1991, or for which a binding bid was submitted

50-31   before that date if the bid was afterward accepted, if under

50-32   the terms of the contract or bid the contract price or bid

50-33   amount cannot be adjusted to reflect the imposition of the

50-34   additional tax pursuant to this section.

50-35     (e) A provision that specifies the date on which the tax is

50-36   first imposed or on which any change in the rate of the tax

50-37   becomes effective, which must be the first day of the first

50-38   calendar quarter that begins at least 120 days after the

50-39   effective date of the ordinance.

50-40     4.  All fees, taxes, interest and penalties imposed and all

50-41   amounts of tax required to be paid to the county under this

50-42   section must be paid to the Department of Taxation in the

50-43   form of remittances made payable to the Department of

50-44   Taxation.

51-1      5.  The Department of Taxation shall deposit the

51-2  payments with the State Treasurer for credit to the tax

51-3   distribution fund for the county in which it was collected.

51-4      6.  Any ordinance enacted pursuant to this section is

51-5   deemed to include the provisions set forth in paragraph (d) of

51-6   subsection 3.

51-7      Sec. 95.  Section 9 of chapter 566, Statutes of Nevada 1993, at

51-8   page 2329, is hereby amended to read as follows:

51-9      Sec. 9. 1.  The Commission shall adopt a budget for its

51-10   operation and for each project it proposes for presentation to

51-11   the governing bodies. Each budget must be accompanied by

51-12   a proposed allocation of the net cost of the budget among the

51-13   governing bodies which must be based upon the benefit of

51-14   the commission or project to the jurisdiction of the governing

51-15   body or another equally appropriate indicator.

51-16     2.  Upon final determination and allocation of the costs

51-17   by agreement of the governing bodies, each governing body

51-18   shall include its portion of the costs in its budget for the

51-19   purposes of chapter 354 of NRS and shall fund its share of

51-20   the cost by:

51-21     (a) Issuing bonds pursuant to chapter 350 of NRS;

51-22     (b) Imposing an additional tax on the rental of transient

51-23   lodging;

51-24     (c) Upon approval by the voters, imposing an additional

51-25   tax upon retailers at a rate not exceeding one-half of 1

51-26   percent of the gross receipts of any retailer from the sale of

51-27   tangible personal property sold at retail, or stored, used or

51-28   otherwise consumed in the county;

51-29     (d) Upon approval of the voters, levying a property tax

51-30   not exceeding 2 cents per $100 of assessed valuation on all

51-31   taxable property in the county; or

51-32     (e) Any combination of the options provided in

51-33   paragraphs (a) to (d), inclusive, including the issuance of

51-34   bonds which will be repaid from the revenue of one or more

51-35   of the taxes authorized in this section which may be treated

51-36   as pledged revenues for the purposes of NRS 350.020.

51-37     3.  If the county imposes a tax pursuant to paragraph (c)

51-38   of subsection 2 it shall include in the ordinance imposing the

51-39   tax:

51-40     (a) Provisions substantially identical to those contained in

51-41   chapter 374 of NRS;

51-42     (b) A provision stating that all amendments to chapter

51-43   374 of NRS after the date of enactment of the ordinance, not

51-44   inconsistent with the provisions of the ordinance,

51-45   automatically become a part of the ordinance;

52-1      (c) A provision that the county shall contract before the

52-2  effective date of the ordinance with the Department to

52-3   perform all functions incident to the administration or

52-4   operation of the tax in the county; and

52-5      (d) The date on which the tax must first be imposed,

52-6   which must [not be earlier than] be the first day of the

52-7   [second calendar month following] first calendar quarter

52-8   that begins at least 120 days after the adoption of the

52-9   ordinance by the governing body.

52-10     4.  The Commission is not entitled to a distribution of

52-11   revenue from the supplemental city-county relief tax.

52-12     Sec. 96.  Section 3 of the Elko County Hospital Tax Act, being

52-13   chapter 14, Statutes of Nevada 1997, at page 29, is hereby amended

52-14   to read as follows:

52-15     Sec. 3. 1.  The Board may enact an ordinance

52-16   imposing a tax for the construction of a hospital pursuant to

52-17   section 4 of this Act.

52-18     2.  A tax so imposed may be collected for not more than

52-19   4 years after the date upon which it is first imposed. The

52-20   ending date of the tax must be specified in the ordinance.

52-21     3.  An ordinance enacted pursuant to this act may not

52-22   become effective before a question concerning the

52-23   imposition of the tax is approved by a majority of the

52-24   registered voters of Elko County voting upon the question.

52-25   The Board may submit the question to the voters at a special

52-26   election held at the same time and places as a municipal

52-27   election or at a general election. The Board shall also submit

52-28   to the voters at such a special or general election any

52-29   proposal to increase the rate of the tax or change the

52-30   previously approved uses for the proceeds of the tax.

52-31     4.  Any ordinance enacted pursuant to this section must

52-32   specify the date on which the tax must first be imposed or on

52-33   which an increase in the rate of the tax becomes effective,

52-34   which must [not be earlier than] be the first day of the

52-35   [second calendar month following] first calendar quarter

52-36   that begins at least 120 days after the approval of the

52-37   question by the voters.

52-38     Sec. 97.  Section 4 of the Elko County Hospital Tax Act, being

52-39   chapter 14, Statutes of Nevada 1997, at page 30, is hereby amended

52-40   to read as follows:

52-41     Sec. 4.  Except as otherwise provided in section 12 of

52-42   this Act, any ordinance adopted pursuant to this Act, except

52-43   an ordinance authorizing the issuance of bonds or other

52-44   securities, must include provisions in substance as follows:

52-45     1.  A provision imposing a tax upon retailers at the rate

52-46   of not more than 1 percent of the gross receipts of any

52-47   retailer

53-1  from the sale of all tangible personal property sold at retail, or

53-2  stored, used or otherwise consumed, in Elko County.

53-3      2.  Provisions substantially identical to those contained in

53-4   chapter 374 of NRS, insofar as applicable.

53-5      3.  A provision that all amendments to chapter 374 of

53-6   NRS after the date of enactment of the ordinance, not

53-7   inconsistent with this act, automatically become a part of an

53-8   ordinance imposing the taxes.

53-9      4.  A provision that the Board shall contract before the

53-10   effective date of the taxing ordinance with the Department to

53-11   perform all functions incident to the administration or

53-12   operation of the tax in the County.

53-13     5.  A provision that [exempts from the tax or any

53-14   increase in the tax the gross receipts from] a purchaser is

53-15   entitled to a refund, in accordance with the provisions of

53-16   NRS 374.635 to 374.720, inclusive, of the amount of the tax

53-17   required to be paid that is attributable to the tax imposed

53-18   upon the sale of, and the storage, use or other consumption

53-19   in a county of, tangible personal property used for the

53-20   performance of a written contract for the construction of an

53-21   improvement to real property, entered into on or before the

53-22   effective date of the tax or the increase in the tax, or for

53-23   which a binding bid was submitted before that date if the bid

53-24   was afterward accepted, if under the terms of the contract or

53-25   bid the contract price or bid amount cannot be adjusted to

53-26   reflect the imposition of the tax or the increase in the tax.

53-27     Sec. 98.  Section 13 of the Elko County Hospital Tax Act,

53-28   being chapter 14, Statutes of Nevada 1997, at page 32, is hereby

53-29   amended to read as follows:

53-30     Sec. 13. 1.  Subject to the provisions of subsection 2,

53-31   the Board may gradually reduce the amount of the tax

53-32   imposed pursuant to this Act. The date on which any

53-33   reduction in the tax becomes effective must be the first day

53-34   of the first calendar quarter that begins at least 120 days

53-35   after the effective date of the ordinance reducing the

53-36   amount of the tax imposed.

53-37     2.  No such taxing ordinance may be repealed or

53-38   amended or otherwise directly or indirectly modified in such

53-39   a manner as to impair any outstanding bonds issued pursuant

53-40   to this Act, or other obligations incurred pursuant to this Act,

53-41   until all obligations, for which revenues from the ordinance

53-42   have been pledged or otherwise made payable from such

53-43   revenues pursuant to this act, have been discharged in full.

 

54-1      Sec. 99.  Section 8A.080 of the Charter of Carson City, being

54-2  chapter 16, Statutes of Nevada 1997, at page 43, is hereby amended

54-3   to read as follows:

54-4      Sec. 8A.080  Required provisions of ordinance.  An

54-5   ordinance enacted pursuant to this article, except an

54-6   ordinance authorizing the issuance of bonds or other

54-7   securities, must include provisions in substance as follows:

54-8      1.  A provision imposing a tax of not more than one

54-9  -quarter of 1 percent of the gross receipts of any retailer from

54-10   the sale of all personal property sold at retail, or stored, used

54-11   or otherwise consumed in Carson City.

54-12     2.  Provisions substantially identical to those contained in

54-13   chapter 374 of NRS, insofar as applicable.

54-14     3.  A provision that an amendment to chapter 374 of

54-15   NRS after the date of enactment of the ordinance, not

54-16   inconsistent with this article, automatically becomes a part of

54-17   the ordinance imposing the tax.

54-18     4.  A provision that the Board shall contract before the

54-19   effective date of the ordinance with the Department to

54-20   perform all the functions incident to the administration or

54-21   operation of the tax in Carson City.

54-22     5.  A provision that [exempts from the tax the gross

54-23   receipts from] a purchaser is entitled to a refund, in

54-24   accordance with the provisions of NRS 374.635 to 374.720,

54-25   inclusive, of the amount of the tax required to be paid that

54-26   is attributable to the tax imposed upon the sale of tangible

54-27   personal property used for the performance of a written

54-28   contract for the construction of an improvement to real

54-29   property:

54-30     (a) That was entered into on or before the effective date

54-31   of the tax; or

54-32     (b) For which a binding bid was submitted before that

54-33   date if the bid was afterward accepted,

54-34  and pursuant to the terms of the contract or bid, the contract

54-35   price or bid amount may not be adjusted to reflect the

54-36   imposition of the tax.

54-37     6.  A provision that specifies the date on which the tax

54-38   is first imposed or on which any changes in the rate of the

54-39   tax becomes effective, which must be the first day of the

54-40   first calendar quarter that begins at least 120 days after the

54-41   effective date of the ordinance.

 

 

 

 

55-1      Sec. 100.  Section 24 of the Railroad Grade Separation Projects

55-2  Act, being chapter 506, Statutes of Nevada 1997, as last amended by

55-3   chapter 28, Statutes of Nevada 1999, at page 64, is hereby amended

55-4   to read as follows:

55-5      Sec. 24. 1.  The Board of County Commissioners of

55-6   Washoe County may by ordinance, but not as in a case of

55-7   emergency, impose a tax upon the retailers at the rate of not

55-8   more than one-eighth of 1 percent of the gross receipts of any

55-9   retailer from the sale of all tangible personal property sold at

55-10   retail, or stored, used or otherwise consumed in the county if:

55-11     (a) The City of Reno imposes a tax on the rental of

55-12   transient lodging pursuant to NRS 268.7845 in the maximum

55-13   amount allowed by that section; and

55-14     (b) The Board receives a written commitment from one or

55-15   more sources for the expenditure of not less than one-half of

55-16   the total cost of a project for the acquisition, establishment,

55-17   construction or expansion of railroad grade separation

55-18   projects in Washoe County, including the estimated proceeds

55-19   of the tax described in paragraph (a).

55-20     2.  An ordinance enacted pursuant to subsection 1 may

55-21   not become effective before a question concerning the

55-22   imposition of the tax is approved by a two-thirds majority of

55-23   the members of the Board of County Commissioners.

55-24     3.  An ordinance enacted pursuant to subsection 1 must

55-25   specify the date on which the tax must first be imposed

55-26   which must occur on the first day of the first month of the

55-27   next calendar quarter that is at least [60] 120 days after the

55-28   date on which a two-thirds majority of the Board of County

55-29   Commissioners approved the question.

55-30     4.  An ordinance enacted pursuant to subsection 1 must

55-31   include provisions in substance as follows:

55-32     (a) Provisions substantially identical to those contained in

55-33   chapter 374 of NRS, insofar as applicable.

55-34     (b) A provision that all amendments to chapter 374 of

55-35   NRS after the date of enactment of the ordinance, not

55-36   inconsistent with this section, automatically become a part of

55-37   an ordinance enacted pursuant to subsection 1.

55-38     (c) A provision stating the specific purpose for which the

55-39   proceeds of the tax must be expended.

55-40     (d) A provision that [exempts from the tax the gross

55-41   receipts from] a purchaser is entitled to a refund, in

55-42   accordance with the provisions of NRS 374.635 to 374.720,

55-43   inclusive, of the amount of the tax required to be paid that

55-44   is attributable to the tax imposed upon the sale of, and the

55-45   storage, use or other consumption in a county of, tangible

56-1  personal property used for the performance of a written

56-2  contract:

56-3          (1) Entered into on or before the effective date of the

56-4   tax; or

56-5          (2) For the construction of an improvement to real

56-6   property for which a binding bid was submitted before the

56-7   effective date of the tax if the bid was afterward

56-8  accepted,

56-9  if under the terms of the contract or bid the contract price or

56-10   bid amount cannot be adjusted to reflect the imposition of the

56-11   tax.

56-12     5.  No ordinance imposing a tax which is enacted

56-13   pursuant to subsection 1 may be repealed or amended or

56-14   otherwise directly or indirectly modified in such a manner as

56-15   to impair any outstanding bonds or other obligations which

56-16   are payable from or secured by a pledge of a tax enacted

56-17   pursuant to subsection 1 until those bonds or other

56-18   obligations have been discharged in full.

56-19     6.  All fees, taxes, interest and penalties imposed and all

56-20   amounts of tax required to be paid to the County pursuant to

56-21   this section must be paid to the Department of Taxation in

56-22   the form of remittances payable to the Department of

56-23   Taxation.

56-24     7.  The Department of Taxation shall deposit the

56-25   payments with the State Treasurer for credit to the Sales and

56-26   Use Tax Account in the State General Fund.

56-27     8.  The State Controller, acting upon the collection data

56-28   furnished by the Department of Taxation, shall monthly:

56-29     (a) Transfer from the Sales and Use Tax Account to the

56-30   appropriate account in the State General Fund a percentage

56-31   of all fees, taxes, interest and penalties collected pursuant to

56-32   this section during the preceding month as compensation to

56-33   the state for the cost of collecting the taxes. The percentage

56-34   to be transferred pursuant to this paragraph must be the same

56-35   percentage as the percentage of proceeds transferred pursuant

56-36   to paragraph (a) of subsection 3 of NRS 374.785 but the

56-37   percentage must be applied to the proceeds collected

56-38   pursuant to this section only.

56-39     (b) Determine for the County an amount of money equal

56-40   to any fees, taxes, interest and penalties collected in or for

56-41   the county pursuant to this section during the preceding

56-42   month, less the amount transferred to the State General Fund

56-43   pursuant to paragraph (a).

56-44     (c) Transfer the amount determined for the County to the

56-45   intergovernmental fund and remit the money to the County

56-46   Treasurer.

57-1      9.  The County Treasurer shall deposit the money

57-2  received pursuant to subsection 8 in the County Treasury for

57-3   credit to a fund to be known as the Railroad Grade

57-4   Separation Projects Fund. The Railroad Grade Separation

57-5   Projects Fund must be accounted for as a separate fund and

57-6   not as a part of any other fund.

57-7      10.  The money in the Railroad Grade Separation

57-8   Projects Fund, including interest and any other income from

57-9   the Fund must be used by the Board of County

57-10   Commissioners for the cost of the acquisition, establishment,

57-11   construction or expansion of one or more railroad grade

57-12   separation projects, including the payment and prepayment

57-13   of principal and interest on notes, bonds or other obligations

57-14   issued to fund such projects.

57-15     Sec. 101.  Section 18 of the Douglas County Sales and Use Tax

57-16   Act of 1999, being chapter 37, Statutes of Nevada 1999, at page 83,

57-17   is hereby amended to read as follows:

57-18     Sec. 18. An ordinance enacted pursuant to this act,

57-19   except an ordinance authorizing the issuance of bonds or

57-20   other securities, must include provisions in substance as

57-21   follows:

57-22     1.  A provision imposing a tax of not more than one

57-23  -quarter of 1 percent of the gross receipts of any retailer from

57-24   the sale of all tangible personal property sold at retail or

57-25   stored, used or otherwise consumed in the County.

57-26     2.  Provisions substantially identical to those contained in

57-27   chapter 374 of NRS, insofar as applicable.

57-28     3.  A provision that an amendment to chapter 374 of

57-29   NRS enacted after the effective date of the ordinance, not

57-30   inconsistent with this act, automatically becomes part of the

57-31   ordinance imposing the tax.

57-32     4.  A provision that the Board shall contract before the

57-33   effective date of the ordinance with the Department to

57-34   perform all the functions incident to the administration or

57-35   operation of the tax in the County.

57-36     5.  A provision that [exempts from the tax the gross

57-37   receipts from] a purchaser is entitled to a refund, in

57-38   accordance with the provisions of NRS 374.635 to 374.720,

57-39   inclusive, of the amount of the tax required to be paid that

57-40   is attributable to the tax imposed upon the sale of tangible

57-41   personal property used for the performance of a written

57-42   contract for the construction of an improvement to real

57-43   property:

57-44     (a) That was entered into on or before the effective date

57-45   of the tax; or

58-1      (b) For which a binding bid was submitted before that

58-2  date if the bid was afterward accepted,

58-3  and pursuant to the terms of the contract or bid, the contract

58-4   price or bid amount may not be adjusted to reflect the

58-5   imposition of the tax.

58-6      6.  A provision that specifies the date on which the tax

58-7   is first imposed or on which any change in the rate of the

58-8   tax becomes effective, which must be the first day of the

58-9   first calendar quarter that begins at least 120 days after the

58-10   effective date of the ordinance.

58-11     Sec. 102.  Section 24 of chapter 364, Statutes of Nevada 2001,

58-12   at page 1716, is hereby amended to read as follows:

58-13     Sec. 24.  1.  This section, sections 1 to 13, inclusive,

58-14   and 17 to 23, inclusive, of this act become effective upon

58-15   passage and approval.

58-16     2.  [Sections 14, 15 and] Section 16 of this act [become]

58-17   becomes effective on the date this state becomes a member

58-18   of the streamlined sales and use tax agreement.

58-19     3.  Sections 14 and 15 of this act become effective on

58-20   January 1, 2006.

58-21     Sec. 103.  At the general election on November 2, 2004, a

58-22   proposal must be submitted to the registered voters of this state to

58-23   amend the Sales and Use Tax Act, which was enacted by the 47th

58-24   Session of the Legislature of the State of Nevada and approved by

58-25   the Governor in 1955, and subsequently approved by the people of

58-26   this state at the general election held on November 6, 1956.

58-27     Sec. 104.  At the time and in the manner provided by law, the

58-28   Secretary of State shall transmit the proposed act to the several

58-29   county clerks, and the county clerks shall cause it to be published

58-30   and posted as provided by law.

58-31     Sec. 105.  The proclamation and notice to the voters given by

58-32   the county clerks pursuant to law must be in substantially the

58-33   following form:

58-34     Notice is hereby given that at the general election on

58-35   November 2, 2004, a question will appear on the ballot for the

58-36   adoption or rejection by the registered voters of the State of the

58-37   following proposed act:

58-38  AN ACT to amend an Act entitled “An Act to provide

58-39   revenue for the State of Nevada; providing for sales and

58-40   use taxes; providing for the manner of collection; defining

58-41   certain terms; providing penalties for violation, and other

58-42   matters properly relating thereto.” approved March 29,

58-43   1955, as amended.

 

 

59-1  THE PEOPLE OF THE STATE OF NEVADA

59-2  DO ENACT AS FOLLOWS:

 

59-3      Section 1.  The above-entitled Act, being chapter 397,

59-4   Statutes of Nevada 1955, at page 762, is hereby amended by

59-5   adding thereto three new sections to be designated as

59-6   sections 18.2, 47.4 and 47.5, respectively, immediately

59-7   following sections 18.1 and 47, respectively, to read as

59-8   follows:

59-9      Sec. 18.2.  “Vehicle” has the meaning ascribed to it

59-10   in NRS 482.135.

59-11     Sec. 47.4.  1.  For the purposes of this section,

59-12   “authorized appraisal” means an appraisal of the value

59-13   of a motor vehicle made by:

59-14     (a) An employee of the Department of Motor

59-15   Vehicles on its behalf;

59-16     (b) A county assessor or his employee as an agent of

59-17   the Department of Motor Vehicles;

59-18     (c) A person licensed by the Department of Motor

59-19   Vehicles as a dealer; or

59-20     (d) An independent appraiser authorized by the

59-21   Department of Motor Vehicles.

59-22     2.  When computing the tax on the sale of a vehicle

59-23   by a seller who is not required to be registered by the

59-24   Department of Taxation, the Department of Motor

59-25   Vehicles or the county assessor as an agent of the

59-26   Department of Taxation shall, if an authorized appraisal

59-27   is submitted, use as the vehicle’s sales price the amount

59-28   stated on the authorized appraisal or $100, whichever is

59-29   greater.

59-30     3.  The Department of Motor Vehicles shall establish

59-31   by regulation the procedure for appraising vehicles and

59-32   shall establish and make available a form for an

59-33   authorized appraisal.

59-34     4.  The Department of Motor Vehicles shall retain a

59-35   copy of the appraisal considered pursuant to subsection

59-36   2 with its record of the collection of the tax.

59-37     5.  A fee which does not exceed $10 may be charged

59-38   and collected for each authorized appraisal made. Any

59-39   money so collected by the Department of Motor Vehicles

59-40   for such an appraisal made by its employees must be

59-41   deposited with the State Treasurer to the credit of the

59-42   Motor Vehicle Fund. Any money so collected by a

59-43   county assessor must be deposited with the county

59-44   treasurer to the credit of the county’s general fund.

59-45     6.  If an authorized appraisal is not submitted, the

59-46   Department of Motor Vehicles or the county assessor as

60-1  an agent of the Department of Taxation shall establish

60-2  the sales price as a value which is based on the

60-3   depreciated value of the vehicle as determined in

60-4   accordance with the schedule in section 47.5 of chapter

60-5   397, Statutes of Nevada 1955. To determine the original

60-6   price from which the depreciation is calculated, the

60-7   Department of Motor Vehicles shall use:

60-8      (a) The manufacturer’s suggested retail price in

60-9   Nevada, excluding options and extras, as of the time the

60-10   particular make and year model is first offered for sale

60-11   in Nevada;

60-12     (b) If the vehicle is specially constructed, the original

60-13   retail price to the original purchaser of the vehicle as

60-14   evidenced by such document or documents as the

60-15   Department may require;

60-16     (c) The procedures set forth in subsections 3 and 4 of

60-17   NRS 371.050; or

60-18     (d) If none of these applies, its own estimate from

60-19   any available information.

60-20     Sec. 47.5.  1.  Except as otherwise provided in

60-21   subsection 2, for the purpose of computing the tax on

60-22   the sale of a vehicle by a seller who is not required to be

60-23   registered with the Department of Taxation in the

60-24   manner provided for in subsection 6 of section 47.4 of

60-25   chapter 397, Statutes of Nevada 1955, a vehicle must be

60-26   depreciated according to the following schedule:

60-27     Percentage of

60-28  Age                                   Initial Value

60-29  New................................... 100 percent

60-30  1 year.................................. 85 percent

60-31  2 years................................. 75 percent

60-32  3 years................................. 65 percent

60-33  4 years................................. 60 percent

60-34  5 years................................. 55 percent

60-35  6 years................................. 50 percent

60-36  7 years................................. 45 percent

60-37  8 years................................. 40 percent

60-38  9 years................................. 35 percent

60-39  10 years............................... 30 percent

60-40  11 years............................... 25 percent

60-41  12 years............................... 20 percent

60-42  13 years............................... 15 percent

60-43  14 years or more................ 10 percent

60-44     2.  The amount of depreciation calculated under

60-45   subsection 1 must be rounded to the nearest whole

61-1  multiple of $20 and the depreciated value must not be

61-2  reduced below $100.

61-3      Sec. 2.  Section 11 of the above-entitled Act, being

61-4   chapter 397, Statutes of Nevada 1955, at page 764, is hereby

61-5   amended to read as follows:

61-6      Sec.11. 1. “Sales price” means the total amount for

61-7   which tangible property is sold, valued in money, whether

61-8   paid in money or otherwise, without any deduction on

61-9   account of any of the following:

61-10     (a)The cost of the property sold.

61-11     (b)The cost of materials used, labor or service cost,

61-12   interest charged, losses, or any other expenses.

61-13     (c)The cost of transportation of the property prior to its

61-14   purchase.

61-15     2. The total amount for which property is sold includes

61-16   all of the following:

61-17     (a)Any services that are a part of the sale.

61-18     (b)Any amount for which credit is given to the purchaser

61-19   by the seller.

61-20     3. “Sales price” does not include any of the following:

61-21     (a)Cash discounts allowed and taken on sales.

61-22     (b)The amount charged for property returned by

61-23   customers when the entire amount charged therefor is

61-24   refunded either in cash or credit; but this exclusion shall not

61-25   apply in any instance when the customer, in order to obtain

61-26   the refund, is required to purchase other property at a price

61-27   greater than the amount charged for the property that is

61-28   returned.

61-29     (c)The amount charged for labor or services rendered in

61-30   installing or applying the property sold.

61-31     (d)The amount of any tax ,[(] not including [, however,]

61-32   any manufacturers’ or importers’ excise tax , [)] imposed by

61-33   the United States upon or with respect to retail sales, whether

61-34   imposed upon the retailer or the consumer.

61-35     (e) The amount of any allowance against the selling

61-36   price given by a retailer for the value of a used vehicle that

61-37   is taken in trade on the purchase of another vehicle.

61-38     4.  For the purpose of a sale of a vehicle by a seller who

61-39   is not required to be registered with the Department of

61-40   Taxation, the sales price is the value established in the

61-41   manner set forth in section 47.4 of chapter 397, Statutes of

61-42   Nevada 1955.

 

 

62-1      Sec. 3.  Section 12 of the above-entitled Act, being

62-2  chapter 397, Statutes of Nevada 1955, at page 764, is hereby

62-3   amended to read as follows:

62-4      Sec. 12.  1.  “Gross receipts” means the total amount of

62-5   the sale or lease or rental price, as the case may be, of the

62-6   retail sales of retailers, valued in money, whether received in

62-7   money or otherwise, without any deduction on account of

62-8   any of the following:

62-9      (a) The cost of the property sold. However, in accordance

62-10   with such rules and regulations as the Tax Commission may

62-11   prescribe, a deduction may be taken if the retailer has

62-12   purchased property for some other purpose than resale, has

62-13   reimbursed his vendor for tax which the vendor is required to

62-14   pay to the State or has paid the use tax with respect to the

62-15   property, and has resold the property [prior to]before

62-16   making any use of the property other than retention,

62-17   demonstration or display while holding it for sale in the

62-18   regular course of business. If such a deduction is taken by the

62-19   retailer, no refund or credit will be allowed to his vendor

62-20   with respect to the sale of the property.

62-21     (b) The cost of the materials used, labor or service cost,

62-22   interest paid, losses or any other expense.

62-23     (c) The cost of transportation of the property [prior to]

62-24   before its sale to the purchaser.

62-25     2.  The total amount of the sale or lease or rental price

62-26   includes all of the following:

62-27     (a) Any services that are a part of the sale.

62-28     (b) All receipts, cash, credits and property of any kind.

62-29     (c) Any amount for which credit is allowed by the seller

62-30   to the purchaser.

62-31     3.  “Gross receipts” does not include any of the

62-32   following:

62-33     (a) Cash discounts allowed and taken on sales.

62-34     (b) [Sale] The sale price of property returned by

62-35   customers when the full sale price is refunded either in cash

62-36   or credit , [;] but this exclusion [shall] does not apply in any

62-37   instance when the customer, in order to obtain the refund, is

62-38   required to purchase other property at a price greater than the

62-39   amount charged for the property that is returned.

62-40     (c) The price received for labor or services used in

62-41   installing or applying the property sold.

62-42     (d) The amount of any tax , [(]not including[, however,]

62-43   any manufacturers’ or importers’ excise tax , [)] imposed by

62-44   the United States upon or with respect to retail sales, whether

62-45   imposed upon the retailer or the consumer.

63-1      (e) The amount of any allowance against the selling

63-2  price given by a retailer for the value of a used vehicle

63-3   which is taken in trade on the purchase of another vehicle.

63-4      4.  For purposes of the sales tax, if the retailers establish

63-5   to the satisfaction of the Tax Commission that the sales tax

63-6   has been added to the total amount of the sale price and has

63-7   not been absorbed by them, the total amount of the sale price

63-8   shall be deemed to be the amount received exclusive of the

63-9   tax imposed.

63-10     Sec. 4.  Section 15 of the above-entitled Act, being

63-11   chapter 397, Statutes of Nevada 1955, at page 765, is hereby

63-12   amended to read as follows:

63-13     Sec. 15.  1.  “Retailer” includes:

63-14     (a) Every seller who makes any retail sale or sales of

63-15   tangible personal property, and every person engaged in the

63-16   business of making retail sales at auction of tangible personal

63-17   property owned by the person or others.

63-18     (b) Every person engaged in the business of making sales

63-19   for storage, use or other consumption or in the business of

63-20   making sales at auction of tangible personal property owned

63-21   by the person or others for storage, use or other consumption.

63-22     (c) Every person making any retail sale of a vehicle or

63-23   more than two retail sales of other tangible personal property

63-24   during any 12‑month period, including sales made in the

63-25   capacity of assignee for the benefit of creditors, or receiver

63-26   or trustee in bankruptcy.

63-27     2.  When the Tax Commission determines that it is

63-28   necessary for the efficient administration of this chapter to

63-29   regard any salesmen, representatives, peddlers or canvassers

63-30   as the agents of the dealers, distributors, supervisors or

63-31   employers under whom they operate or from whom they

63-32   obtain the tangible personal property sold by them,

63-33   irrespective of whether they are making sales on their own

63-34   behalf or on behalf of such dealers, distributors, supervisors

63-35   or employers, the Tax Commission may so regard them and

63-36   may regard the dealers, distributors, supervisors or

63-37   employers as retailers for purposes of this chapter.

63-38     [3.  A licensed optometrist or physician and surgeon is a

63-39   consumer of, and shall not be considered, a retailer within

63-40   the provisions of this chapter, with respect to the ophthalmic

63-41   materials used or furnished by him in the performance of his

63-42   professional services in the diagnosis, treatment or correction

63-43   of conditions of the human eye, including the adaptation of

63-44   lenses or frames for the aid thereof.]

64-1      Sec. 5.  Section 18.1 of the above-entitled Act, being

64-2  chapter 397, Statutes of Nevada 1955, at page 766, is hereby

64-3   amended to read as follows:

64-4      Sec. 18.1  NRS 372.035 is hereby amended to read as

64-5   follows:

64-6      372.035  1.  “Occasional sale” includes:

64-7      (a) A sale of property not held or used by a seller in

64-8   the course of an activity for which he is required to hold a

64-9   seller’s permit, [provided such] if the sale is not one of a

64-10   series of sales sufficient in number, scope and character to

64-11   constitute an activity requiring the holding of a seller’s

64-12   permit.

64-13     (b) Any transfer of all or substantially all the property

64-14   held or used by a person in the course of such an activity

64-15   when after [such] the transfer the real or ultimate

64-16   ownership of [such] the property is substantially similar

64-17   to that which existed before [such] the transfer.

64-18     2.  The term does not include the sale of a vehicle

64-19   other than the sale or transfer of a used vehicle to the

64-20   seller’s spouse, child, grandchild, parent, grandparent,

64-21   brother or sister. For the purposes of this section, the

64-22   relation of parent and child includes adoptive and

64-23   illegitimate children and stepchildren.

64-24     3.  For the purposes of this section, stockholders,

64-25   bondholders, partners or other persons holding an interest

64-26   in a corporation or other entity are regarded as having the

64-27   “real or ultimate ownership” of the property of such

64-28   corporation or other entity.

64-29     Sec.6. Section 56.1 of the above-entitled Act, being

64-30   chapter 397, Statutes of Nevada 1955, as added by chapter

64-31   306, Statutes of Nevada 1969, at page 532, and amended by

64-32   chapter 627, Statutes of Nevada 1985, at page 2028, and

64-33   amended by chapter 404, Statutes of Nevada 1995, at page

64-34   1007, is hereby amended to read as follows:

64-35     Sec. 56.1.  1.  There are exempted from the taxes

64-36   imposed by this act the gross receipts from sales and the

64-37   storage, use or other consumption of:

64-38     (a) Prosthetic devices, orthotic appliances and

64-39   ambulatory casts for human use, and other supports and

64-40   casts if prescribed or applied by a licensed provider of

64-41   health care, within his scope of practice, for human use.

64-42     (b) Appliances and supplies relating to an ostomy.

64-43     (c) Products for hemodialysis.

64-44     (d) Any ophthalmic or ocular device or appliance

64-45   prescribed by a physician or optometrist.

64-46     (e) Medicines:

65-1         (1) Prescribed for the treatment of a human being

65-2  by a person authorized to prescribe medicines, and

65-3   dispensed on a prescription filled by a registered

65-4   pharmacist in accordance with law;

65-5         (2) Furnished by a licensed physician, dentist or

65-6   podiatric physician to his own patient for the treatment of

65-7   the patient;

65-8         (3) Furnished by a hospital for treatment of any

65-9   person pursuant to the order of a licensed physician,

65-10   dentist or podiatric physician; or

65-11         (4) Sold to a licensed physician, dentist, podiatric

65-12   physician or hospital for the treatment of a human being.

65-13     2.  As used in this section:

65-14     (a) “Medicine” means any substance or preparation

65-15   intended for use by external or internal application to the

65-16   human body in the diagnosis, cure, mitigation, treatment

65-17   or prevention of disease or affliction of the human body

65-18   and which is commonly recognized as a substance or

65-19   preparation intended for such use. The term includes

65-20   splints, bandages, pads, compresses and dressings.

65-21     (b) “Medicine” does not include:

65-22         (1) Any auditory [, ophthalmic or ocular] device or

65-23   appliance.

65-24         (2) Articles which are in the nature of instruments,

65-25   crutches, canes, devices or other mechanical, electronic,

65-26   optical or physical equipment.

65-27         (3) Any alcoholic beverage, except where the

65-28   alcohol merely provides a solution in the ordinary

65-29   preparation of a medicine.

65-30         (4) Braces or supports, other than those prescribed

65-31   or applied by a licensed provider of health care, within his

65-32   scope of practice, for human use.

65-33     3.  Insulin furnished by a registered pharmacist to a

65-34   person for treatment of diabetes as directed by a

65-35   physician shall be deemed to be dispensed on a

65-36   prescription within the meaning of this section.

65-37     Sec.7. The above-entitled Act, being chapter 397,

65-38   Statutes of Nevada 1955, at page 762, is hereby amended by

65-39   adding thereto a new section to be designated as section 56.3,

65-40   immediately following section 56.2, to read as follows:

65-41     Sec. 56.3. 1.  There are exempted from the taxes

65-42   imposed by this Act the gross receipts from the sale of,

65-43   and the storage, use or other consumption in a county

65-44   of, farm machinery and equipment employed for the

65-45   agricultural use of real property.

65-46     2.  As used in this section:

66-1      (a) “Agricultural use” has the meaning ascribed to it

66-2  in NRS 361A.030.

66-3      (b) “Farm machinery and equipment” means a farm

66-4   tractor, implement of husbandry, piece of equipment

66-5   used for irrigation, or a part used in the repair or

66-6   maintenance of farm machinery and equipment. The

66-7   term does not include:

66-8         (1) A vehicle required to be registered pursuant to

66-9   the provisions of chapter 482 or 706 of NRS; or

66-10         (2) Machinery or equipment only incidentally

66-11   employed for the agricultural use of real property.

66-12     (c) “Farm tractor” means a motor vehicle designed

66-13   and used primarily for drawing an implement of

66-14   husbandry.

66-15     (d) “Implement of husbandry” means a vehicle that

66-16   is designed, adapted or used for agricultural purposes,

66-17   including, without limitation, a plow, machine for

66-18   mowing, hay baler, combine, piece of equipment used to

66-19   stack hay, till, harvest, handle agricultural commodities

66-20   or apply fertilizers, or other heavy, movable equipment

66-21   designed, adapted or used for agricultural purposes.

66-22     Sec.8.  The above-entitled Act, being chapter 397,

66-23   Statutes of Nevada 1955, at page 762, is hereby amended by

66-24   adding thereto two new sections to be designated as sections

66-25   57.1 and 57.2, respectively, immediately following section

66-26   57, to read as follows:

66-27     Sec. 57.1.  1.  Except as otherwise provided in

66-28   section 57.2 of chapter 397, Statutes of Nevada 1955,

66-29   there are exempted from the taxes imposed by this

66-30   chapter the gross receipts from the sale of, and the

66-31   storage, use or other consumption of, works of fine art

66-32   for public display.

66-33     2.  In determining whether a payment made

66-34   pursuant to a lease of a work of fine art is exempt under

66-35   subsection 1, the value for the purpose of paragraph (a)

66-36   of subsection 4 is the value of the work and not the

66-37   value of possession for the term of the lease, and the

66-38   calendar or fiscal year described in paragraph (a) of

66-39   subsection 4 is the first full calendar or fiscal year,

66-40   respectively, after the payment is made.

66-41     3.  During the first full fiscal year following the

66-42   purchase of fine art for which a taxpayer receives the

66-43   exemption provided in this section, the taxpayer shall

66-44   make available, upon written request and without

66-45   charge to any public school as defined in NRS 385.007,

66-46   private school as defined in NRS 394.103 and parent of

66-47   a child

67-1  who receives instruction in a home pursuant to NRS

67-2  392.070, one copy of a poster depicting the fine art that

67-3   the facility has on public display and that the facility

67-4   makes available for purchase by the public at the time of

67-5   the request.

67-6      4.  As used in this section:

67-7      (a) “Fine art for public display”:

67-8         (1) Except as otherwise provided in subparagraph

67-9   (2), means a work of art which:

67-10            (I) Is an original painting in oil, mineral,

67-11   water colors, vitreous enamel, pastel or other medium,

67-12   an original mosaic, drawing or sketch, an original

67-13   sculpture of clay, textiles, fiber, wood, metal, plastic,

67-14   glass or a similar material, an original work of mixed

67-15   media or a lithograph;

67-16            (II) Is purchased in an arm’s length

67-17   transaction for $25,000 or more, or has an appraised

67-18   value of $25,000 or more;

67-19            (III) Will be on public display in a public or

67-20   private art gallery, museum or other building or area in

67-21   this state for at least 20 hours per week during at least

67-22   35 weeks of the first full calendar year after the date on

67-23   which it is purchased or, if the facility displaying the

67-24   fine art disposes of it before the end of that year, during

67-25   at least two-thirds of the full weeks during which the

67-26   facility had possession of it, or if the gallery, museum,

67-27   or other building or area in which the fine art will be

67-28   displayed will not be opened until after the beginning of

67-29   the first full calendar year after the date on which the

67-30   fine art is purchased, these display requirements must

67-31   instead be met for the first full fiscal year after the date

67-32   of opening, and the date of opening must not be later

67-33   than 2 years after the purchase of the fine art being

67-34   displayed; and

67-35            (IV) Will be on display in a facility that is

67-36   available for group tours by pupils or students for at

67-37   least 5 hours on at least 60 days of the first full fiscal

67-38   year after the purchase of the fine art, during which the

67-39   facility in which it is displayed is open, by prior

67-40   appointment and at reasonable times, without charge;

67-41   and

67-42         (2) Does not include:

67-43            (I) A work of fine art that is a fixture or an

67-44   improvement to real property;

68-1             (II) Materials purchased by an artist for

68-2  consumption in the production of a work of art that is to

68-3   be a fixture or an improvement to real property;

68-4             (III) A work of fine art that constitutes a copy

68-5   of an original work of fine art, unless the work is a

68-6   lithograph that is a limited edition and that is signed and

68-7   numbered by the artist;

68-8             (IV) Products of filmmaking or photography,

68-9   including, without limitation, motion pictures;

68-10            (V) Literary works;

68-11            (VI) Property used in the performing arts,

68-12   including, without limitation, scenery or props for a

68-13   stage; or

68-14            (VII) Property that was created for a

68-15   functional use other than, or in addition to, its aesthetic

68-16   qualities, including, without limitation, a classic or

68-17   custom-built automobile or boat, a sign that advertises a

68-18   business, and custom or antique furniture, lamps,

68-19   chandeliers, jewelry, mirrors, doors or windows.

68-20     (b) “Public display” means the display of a work of

68-21   fine art where members of the public have access to the

68-22   work of fine art for viewing during publicly advertised

68-23   hours. The term does not include the display of a work

68-24   of fine art in an area where the public does not

68-25   generally have access, including, without limitation, a

68-26   private office, hallway or meeting room of a business, a

68-27   room of a business used for private lodging and a

68-28   private residence.

68-29     (c) “Pupil” means a person who:

68-30         (1) Is enrolled for the current academic year in a

68-31   public school as defined in NRS 385.007 or a private

68-32   school as defined in NRS 394.103; or

68-33         (2) Receives instruction in a home and is excused

68-34   from compulsory attendance pursuant to NRS 392.070.

68-35     (d) “Student” means a person who is enrolled for the

68-36   current academic year in:

68-37         (1) A community college or university; or

68-38         (2) A licensed postsecondary educational

68-39   institution as defined in NRS 394.099 and a course

68-40   concerning fine art.

68-41     Sec. 57.2.  1.  A taxpayer may collect an admission

68-42   fee for the exhibition of fine art otherwise exempt from

68-43   taxation on its sale, storage, use or other consumption

68-44   pursuant to section 57.1 of chapter 397, Statutes of

68-45   Nevada 1955, if the taxpayer offers to residents of the

68-46   State of Nevada a discount of 50 percent from any

69-1  admission fee charged to nonresidents. The discounted

69-2  admission fee for residents must be offered at any time

69-3   the exhibition is open to the public and admission fees

69-4   are being charged.

69-5      2.  If a taxpayer collects a fee for the exhibition of

69-6   fine art otherwise exempt from taxation on its sale,

69-7   storage, use or other consumption pursuant to section

69-8   57.1 of chapter 397, Statutes of Nevada 1955, and the

69-9   fee is collected during the first full fiscal year after the

69-10   purchase of the fine art, the exemption pertaining to

69-11   that fine art must be reduced by the net revenue derived

69-12   by the taxpayer for that first full fiscal year. The

69-13   exemption pertaining to fine art must not be reduced

69-14   below zero, regardless of the amount of the net revenue

69-15   derived by the taxpayer for that first full fiscal year.

69-16     3.  Any tax due pursuant to this section must be paid

69-17   with the first sales and use tax return otherwise required

69-18   to be filed by the taxpayer following the 15th day of the

69-19   fourth month after the end of the first full fiscal year

69-20   following the purchase of the fine art or, if no sales and

69-21   use tax return is otherwise required to be filed by the

69-22   taxpayer, with a sales and use tax return filed

69-23   specifically for this purpose on or before the last day of

69-24   the fourth month after the end of the first full fiscal year

69-25   following the purchase of the fine art.

69-26     4.  A taxpayer who is required to pay a tax resulting

69-27   from the operation of this section may receive a credit

69-28   against the tax for any donations made by the taxpayer

69-29   to the Nevada Arts Council, the Division of Museums

69-30   and History Dedicated Trust Fund established pursuant

69-31   to NRS 381.0031, a museum that provides exhibits

69-32   specifically related to nature or a museum that provides

69-33   exhibits specifically related to children, if the taxpayer:

69-34     (a) Made the donation before the date that either

69-35   return required pursuant to subsection 3 is due; and

69-36     (b) Provides to the Department documentation of the

69-37   donation at the time that he files the return required

69-38   pursuant to subsection 3.

69-39     5.  For the purposes of this section:

69-40     (a) “Direct costs of owning and exhibiting the fine

69-41   art” does not include any allocation of the general and

69-42   administrative expense of a business or organization

69-43   that conducts activities in addition to the operation of

69-44   the facility in which the fine art is displayed, including,

69-45   without limitation, an allocation of the salary and

69-46   benefits of a senior executive who is responsible for the

70-1  oversight of the facility in which the fine art is displayed

70-2  and who has substantial responsibilities related to the

70-3   other activities of the business or organization.

70-4      (b) “Net revenue” means the amount of the fees

70-5   collected for exhibiting the fine art during the fiscal

70-6   year less the following paid or made during the fiscal

70-7   year:

70-8         (1) The direct costs of owning and exhibiting the

70-9   fine art; and

70-10         (2) The cost of educational programs associated

70-11   with the taxpayer’s public display of fine art, including

70-12   the cost of meeting the requirements of sub

70-13  -subparagraph (IV) of subparagraph (1) of paragraph

70-14   (a) of subsection 4 of section 57.1 of chapter 397,

70-15   Statutes of Nevada 1955.

70-16     Sec. 9.  Section 6 of the above-entitled Act, being

70-17   chapter 397, Statutes of Nevada 1955, at page 763, is hereby

70-18   amended to read as follows:

70-19     Sec. 6.  1.  “Retail sale” or “sale at retail” means a sale

70-20   for any purpose other than resale in the regular course of

70-21   business of tangible personal property. The terms do not

70-22   include a sale of property that:

70-23     (a) Meets the requirements of subparagraphs (1) and (2)

70-24   of paragraph (a) of subsection 4 of section 57.1 of chapter

70-25   397, Statutes of Nevada 1955;

70-26     (b) Is made available for sale within 2 years after it is

70-27   acquired; and

70-28     (c) Is made available for viewing by the public or

70-29   prospective purchasers, or both, within 2 years after it is

70-30   acquired, whether or not a fee is charged for viewing it and

70-31   whether or not it is also used for purposes other than

70-32   viewing.

70-33     2.  The delivery in this state of tangible personal property

70-34   by an owner or former owner thereof or by a factor, or agent

70-35   of such owner, former owner or factor, if the delivery is to a

70-36   consumer or person for redelivery to a consumer, pursuant to

70-37   a retail sale made by a retailer not engaged in business in this

70-38   state, is a retail sale in this state by the person making the

70-39   delivery. He shall include the retail selling price of the

70-40   property in his gross receipts.

70-41     Sec. 10.  Section 7 of the above-entitled Act, being

70-42   chapter 397, Statutes of Nevada 1955, at page 763, is hereby

70-43   amended to read as follows:

70-44     Sec. 7.  “Storage” includes any keeping or retention

70-45   in this state for any purpose except sale in the regular

70-46   course of business or subsequent use solely outside this

70-47   state of tangible personal property purchased from a

71-1  retailer. The term does not include keeping, retaining or

71-2  exercising any right or power over tangible property

71-3   that:

71-4      1.  Meets the requirements of subparagraphs (1) and

71-5   (2) of paragraph (a) of subsection 4 of section 57.1 of

71-6   chapter 397, Statutes of Nevada 1955;

71-7      2.  Is made available for sale within 2 years after it is

71-8   acquired; and

71-9      3.  Is made available for viewing by the public or

71-10   prospective purchasers, or both, within 2 years after it is

71-11   acquired whether or not a fee is charged for viewing it

71-12   and whether or not it is also used for purposes other

71-13   than viewing.

71-14     Sec.11. Section 61.5 of the above-entitled Act, being

71-15   chapter 397, Statutes of Nevada 1955, at page 762, as added

71-16   by chapter 466, Statutes of Nevada 1985, at page 1441, is

71-17   hereby amended to read as follows:

71-18     Sec. 61.5.  There are exempted from the taxes

71-19   imposed by this chapter the gross receipts from the sale

71-20   [of aircraft and major components] and the storage, use

71-21   or other consumption in this state of:

71-22     1.  Aircraft, aircraft engines and component parts of

71-23   aircraft [, such as engines and other components made for

71-24   use only in aircraft, to an air carrier which:

71-25     1.  Holds a certificate to engage in air transportation

71-26   issued pursuant to 49 U.S.C. § 1371 and is not solely a

71-27   charter air carrier or a supplemental air carrier as

71-28   described in Title 49 of the United States Code; and

71-29     2.  Maintains its central office in Nevada and bases a

71-30   majority of its aircraft in Nevada.] or aircraft engines

71-31   which are manufactured exclusively for use in aircraft,

71-32   sold or purchased for lease to a commercial air carrier

71-33   for use in the transportation of persons or property in

71-34   intrastate, interstate or foreign commerce pursuant to a

71-35   certificate or license issued to the air carrier authorizing

71-36   such transportation; and

71-37     2.  Machinery, tools and other equipment and parts

71-38   which are used exclusively in the repair, remodeling or

71-39   maintenance of aircraft, aircraft engines or component

71-40   parts of aircraft or aircraft engines which meet the

71-41   requirements of subsection 1.

 

 

 

 

72-1      Sec.12. The above-entitled Act, being chapter 397,

72-2  Statutes of Nevada 1955, at page 762, is hereby amended by

72-3   adding thereto a new section to be designated as section 61.6,

72-4   immediately following section 61.5, to read as follows:

72-5      Sec. 61.6. 1.  There are exempted from the taxes

72-6   imposed by this chapter the gross receipts from the sale,

72-7   furnishing or service of, and the storage, use or other

72-8   consumption in this state of:

72-9      (a) All engines and chassis of a professional racing

72-10   vehicle;

72-11     (b) All parts and components that are used to replace

72-12   or rebuild existing parts or components of any engine or

72-13   chassis of a professional racing vehicle;

72-14     (c) All motor vehicles used by professional racing

72-15   teams to transport professional racing vehicles or to

72-16   transport parts or components of professional racing

72-17   vehicles, including, without limitation, an engine and

72-18   chassis of a professional racing vehicle; and

72-19     (d) All motor vehicles used by a professional racing

72-20   team or sanctioning body to transport the business office

72-21   of the professional racing team or sanctioning body or

72-22   to transport a facility from which hospitality services are

72-23   provided.

72-24     2.  As used in this section:

72-25     (a) “Professional racing team” means a racing

72-26   operation that qualifies for the taxable year as an

72-27   activity engaged in for profit pursuant to the Internal

72-28   Revenue Code, Title 26 of the United States Code.

72-29     (b) “Professional racing motor vehicle” means any

72-30   motor vehicle which is used in a professional racing

72-31   competition and which is owned, leased or operated by a

72-32   professional racing team.

72-33     (c) “Sanctioning body” means an organization that

72-34   establishes an annual schedule of professional racing

72-35   events in which professional racing teams participate,

72-36   grants rights to conduct such events and establishes and

72-37   administers rules and regulations governing the persons

72-38   who conduct or participate in such events.

72-39     Sec. 13.  This act becomes effective on January 1, 2006.

72-40     Sec. 106.  The ballot page assemblies and the paper ballots to

72-41   be used in voting on the question must present the question in

72-42   substantially the following form:

72-43     Shall the Sales and Use Tax Act of 1955 be amended to:

72-44     1.  Provide an exemption from the taxes imposed by this

72-45   Act on the gross receipts from the sale and the storage, use or

72-46   other consumption of the value of any used vehicle taken in

73-1  trade on the purchase of another vehicle and to remove the

73-2  exemption from those taxes for occasional sales of vehicles

73-3   except where such sales are between certain family

73-4   members;

73-5      2.  Provide an exemption from the taxes imposed by this

73-6   Act on the gross receipts from the sale and the storage, use or

73-7   other consumption of ophthalmic or ocular devices or

73-8   appliances prescribed by a physician or optometrist;

73-9      3.  Provide an exemption from the taxes imposed by this

73-10   Act on the gross receipts from the sale and the storage, use or

73-11   other consumption of farm machinery and equipment

73-12   employed for the agricultural use of real property;

73-13     4.  Provide an exemption from the taxes imposed by this

73-14   Act on the gross receipts from the sale and the storage, use or

73-15   other consumption of works of fine art for public display;

73-16     5.  Revise and clarify the criteria used to determine

73-17   which aircraft and parts of aircraft are exempt from the taxes

73-18   imposed by this Act, including removing the requirement

73-19   that an air carrier must be based in Nevada to be eligible for

73-20   the exemption, and providing an exemption for certain

73-21   machinery and equipment used on eligible aircraft and parts

73-22   of aircraft; and

73-23     6.  Provide an exemption from the taxes imposed by this

73-24   Act on the gross receipts from the sale and the storage, use or

73-25   other consumption of engines and chassis, including

73-26   replacement parts and components for the engines and

73-27   chassis, of professional racing vehicles that are owned,

73-28   leased or operated by professional racing teams?

73-29  Yes ¨          No ¨

73-30     Sec. 107.  The explanation of the question which must appear

73-31   on each paper ballot and sample ballot and in every publication and

73-32   posting of notice of the question must be in substantially the

73-33   following form:

 

73-34  (Explanation of Question)

73-35     The proposed amendment to the Sales and Use Tax Act of

73-36   1955 would:

73-37     1.  Exempt from the taxes imposed by this Act the gross

73-38   receipts from the sale and the storage, use or other

73-39   consumption of the value of any used vehicle taken in trade

73-40   on the purchase of another vehicle and remove the exemption

73-41   from those taxes for occasional sales of vehicles except

73-42   where such sales are between certain family members;

73-43     2.  Exempt from the taxes imposed by this Act the gross

73-44   receipts from the sale and the storage, use or other

73-45   consumption of ophthalmic or ocular devices or appliances

73-46   prescribed by a physician or optometrist;

74-1      3.  Exempt from the taxes imposed by this Act the gross

74-2  receipts from the sale and the storage, use or other

74-3   consumption of farm machinery and equipment employed for

74-4   the agricultural use of real property;

74-5      4.  Exempt from the taxes imposed by this Act the gross

74-6   receipts from the sale and the storage, use or other

74-7   consumption of works of fine art for public display;

74-8      5.  Revise and clarify the criteria used to determine

74-9   which aircraft and parts of aircraft are exempt from the taxes

74-10   imposed by this Act, including removing the requirement

74-11   that an air carrier must be based in Nevada to be eligible for

74-12   the exemption, and providing an exemption for certain

74-13   machinery and equipment used on eligible aircraft and parts

74-14   of aircraft; and

74-15     6.  Exempt from the taxes imposed by this Act the gross

74-16   receipts from the sale and the storage, use or other

74-17   consumption of engines and chassis, including replacement

74-18   parts and components for the engines and chassis, of

74-19   professional racing vehicles that are owned, leased or

74-20   operated by professional racing teams.

74-21  A “yes” vote approves all of the proposals set forth in the

74-22   question. A “no” vote disapproves all of the proposals set

74-23   forth in the question. The proposals set forth in the question

74-24   may not be voted upon individually.

74-25     Secs. 108-132.  (Deleted by amendment.)

74-26     Sec. 133. If a majority of the votes cast on the question is yes,

74-27   the amendment to the Sales and Use Tax Act of 1955 becomes

74-28   effective on January 1, 2006. If less than a majority of votes cast on

74-29   the question is yes, the question fails and the amendment to the

74-30   Sales and Use Tax Act of 1955 does not become effective.

74-31     Sec. 134.  All general election laws not inconsistent with this

74-32   act are applicable.

74-33     Sec. 135.  Any informalities, omissions or defects in the

74-34   content or making of the publications, proclamations or notices

74-35   provided for in this act and by the general election laws under

74-36   which this election is held must be so construed as not to invalidate

74-37   the adoption of the act by a majority of the registered voters voting

74-38   on the question if it can be ascertained with reasonable certainty

74-39   from the official returns transmitted to the Office of the Secretary

74-40   of State whether the proposed amendment was adopted by a

74-41   majority of those registered voters.

74-42     Sec. 136.  1.  Except as otherwise provided in this section, the

74-43   Department of Taxation shall waive the amount of any sales and

74-44   use taxes, and any penalties and interest thereon, otherwise due in

74-45   this state from a seller at the time the seller registers pursuant to

74-46   section 9 of this act if the seller:

75-1      (a) During the year 2005:

75-2          (1) Did not hold a seller’s permit issued pursuant to chapter

75-3   372 or 374 of NRS; and

75-4          (2) Was not registered as a retailer pursuant to chapter 372 or

75-5   374 of NRS;

75-6      (b) Registers pursuant to section 9 of this act no later than

75-7   December 31, 2006; and

75-8      (c) Remains registered pursuant to section 9 of this act for at

75-9   least 36 months and collects and remits to this state all sales and use

75-10   taxes due in this state for that period.

75-11  Each statutory period of limitation applicable to any procedure or

75-12   proceeding for the collection or enforcement of any sales or use tax

75-13   due from a seller at the time the seller registers as provided in

75-14   paragraph (b) is tolled for 36 months from the commencement of

75-15   that registration.

75-16     2.  The Department of Taxation shall not, pursuant to this

75-17   section, waive any liability of a seller:

75-18     (a) Regarding any matter for which the seller received notice of

75-19   the commencement of an audit which, including any related

75-20   administrative and judicial procedures, has not been finally

75-21   resolved before the registration of the seller pursuant to section 9 of

75-22   this act.

75-23     (b) For any sales and use taxes collected by the seller or paid or

75-24   remitted to the State before the registration of the seller pursuant to

75-25   section 9 of this act.

75-26     (c) For any fraud or material misrepresentation of a material fact

75-27   committed by the seller.

75-28     (d) For any sales or use taxes due from the seller in his capacity

75-29   as a buyer and not as a seller.

75-30     3.  For the purposes of this section, the words and terms defined

75-31   in NRS 360B.040 to 360B.100, inclusive, as amended by this act,

75-32   have the meanings ascribed to them in those sections.

75-33     Sec. 137.  The amendatory provisions of sections 83, 84, 85, 87

75-34   to 92, inclusive, and 94 to 101, inclusive, of this act do not apply to

75-35   any ordinance enacted before January 1, 2006.

75-36     Sec. 138.  NRS 374.107, 374.112, 374.113, 374.286, 374.291,

75-37   374.2911, 374.322 and 374.323 are hereby repealed.

75-38     Sec. 139.  1.  This section and section 102 of this act become

75-39   effective upon passage and approval.

75-40     2.  Sections 103 to 135, inclusive, of this act become effective

75-41   on July 1, 2003.

75-42     3.  Sections 1 to 29, inclusive, 32 to 38, inclusive, 40 to 50,

75-43   inclusive, 52 to 57, inclusive, 66, 67, 69 to 72, inclusive, 74 to 80,

75-44   inclusive, 83, 84, 85, 87 to 92, inclusive, 94 to 101, inclusive, 136

75-45   and 137 of this act become effective:

76-1      (a) Upon passage and approval for the purposes of adopting

76-2  regulations and performing any other preparatory administrative

76-3   tasks that are necessary to carry out the provisions of this act; and

76-4      (b) On January 1, 2006, for all other purposes.

76-5      4.  Sections 30 and 39 of this act become effective on

76-6  January 1, 2006, only if the proposal submitted pursuant to sections

76-7   103 to 107, inclusive, of this act is approved by the voters at the

76-8   general election on November 2, 2004.

76-9      5.  Sections 31, 51, 58 to 65, inclusive, 68, 73, 81, 82, 86, 93

76-10   and 138 of this act become effective on January 1, 2006, only if the

76-11   proposal submitted pursuant to sections 103 to 107, inclusive, of

76-12   this act is not approved by the voters at the general election on

76-13   November 2, 2004.

 

76-14  ²⁰~~~~~⁰³