Assembly Bill No. 524–Committee on Transportation

 

(On Behalf of the Department of Motor Vehicles)

 

March 24, 2003

____________

 

Referred to Concurrent Committees on Transportation
and Ways and Means

 

SUMMARY—Exempts from governmental services taxes vehicles registered to Nevada residents on active military duty. (BDR 32‑507)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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

 

AN ACT relating to governmental services taxes; exempting from those taxes vehicles registered to residents of Nevada on active military duty; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 371 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  Vehicles registered by a resident of this state who is on

1-4  active duty in the military service of the United States are exempt

1-5  from taxation, except that the exemption may only be claimed in

1-6  one county in this state.

1-7  2.  Except as otherwise provided in this subsection, a person

1-8  claiming the exemption must file with the Department in the

1-9  county where the exemption is claimed an affidavit declaring that

1-10  he meets all the requirements of subsection 1 and that the

1-11  exemption is claimed in no other county in this state. If a person

1-12  enters the military service of the United States without previously

1-13  filing an affidavit of exemption, the affidavit may be filed in his

2-1  behalf during the period of that service by any person having

2-2  knowledge of the facts.

2-3  3.  The affidavit required pursuant to subsection 2 must be:

2-4  (a) Made before the county assessor or a notary public; and

2-5  (b) Filed on or before the date when payment of the tax is due.

2-6  4.  Before allowing any exemption pursuant to this section,

2-7  the Department shall require proof that the person claiming the

2-8  exemption is entitled to the exemption. After the Department

2-9  determines that the person is entitled to the exemption, the

2-10  Department shall annually grant the exemption for vehicles

2-11  registered by that person until the Department determines that the

2-12  person is no longer entitled to the exemption.

2-13      5.  If any vehicle which is exempt from taxation pursuant to

2-14  this section ceases to be exempt after the beginning of a

2-15  registration year, the amount of the tax otherwise due for that

2-16  registration year must be reduced by one-twelfth for each month

2-17  which has elapsed since the beginning of that year.

2-18      6.  The Department may adopt such regulations as it deems

2-19  necessary to carry out this section.

2-20      7.  Any person who files a false affidavit or produces false

2-21  proof to the Department which results in the allowance of a tax

2-22  exemption pursuant to this section to a person who is not entitled

2-23  to the exemption is guilty of a gross misdemeanor.

2-24      Sec. 2.  NRS 371.103 is hereby amended to read as follows:

2-25      371.103  1.  Vehicles, to the extent of the determined

2-26  valuation as set forth in subsection 2, registered by any actual bona

2-27  fide resident of the State of Nevada who:

2-28      (a) Has served a minimum of 90 days on active duty, who was

2-29  assigned to active duty at some time between April 21, 1898, and

2-30  June 15, 1903, or between April 6, 1917, and November 11, 1918,

2-31  or between December 7, 1941, and December 31, 1946, or between

2-32  June 25, 1950, and January 31, 1955;

2-33      (b) Has served a minimum of 90 continuous days on active duty

2-34  none of which was for training purposes, who was assigned to active

2-35  duty at some time between January 1, 1961, and May 7, 1975; or

2-36      (c) Has served on active duty in connection with carrying out

2-37  the authorization granted to the President of the United States in

2-38  Public Law 102-1,

2-39  and who received, upon severance from service, an honorable

2-40  discharge or certificate of satisfactory service from the Armed

2-41  Forces of the United States, [or who, having so served, is still

2-42  serving in the Armed Forces of the United States,] is exempt from

2-43  taxation.

2-44      2.  The amount of determined valuation that is exempt from

2-45  taxation pursuant to subsection 1:

3-1  (a) For Fiscal Year 2001-2002, is $1,250;

3-2  (b) For Fiscal Year 2002-2003, is $1,500; and

3-3  (c) For Fiscal Year 2003-2004, is $1,750.

3-4  3.  For the purpose of this section:

3-5  (a) For Fiscal Year 2001-2002, the first $1,250 determined

3-6  valuation of vehicles in which such a person has any interest;

3-7  (b) For Fiscal Year 2002-2003, the first $1,500 determined

3-8  valuation of vehicles in which such a person has any interest; and

3-9  (c) For Fiscal Year 2003-2004, the first $1,750 determined

3-10  valuation of vehicles in which such a person has any interest,

3-11  shall be deemed to belong to that person.

3-12      4.  A person claiming the exemption shall file annually with the

3-13  Department in the county where the exemption is claimed an

3-14  affidavit declaring that he is an actual bona fide resident of the State

3-15  of Nevada who meets all the other requirements of subsection 1 and

3-16  that the exemption is claimed in no other county in this state. The

3-17  affidavit must be made before the county assessor or a notary

3-18  public. After the filing of the original affidavit, the county assessor

3-19  shall mail a form for:

3-20      (a) The renewal of the exemption; and

3-21      (b) The designation of any amount to be credited to the

3-22  Veterans’ Home Account,

3-23  to the person each year following a year in which the exemption was

3-24  allowed for that person. The form must be designed to facilitate its

3-25  return by mail by the person claiming the exemption.

3-26      5.  [Persons in actual military service are exempt during the

3-27  period of such service from filing annual affidavits of exemption,

3-28  and the Department shall grant exemptions to those persons on the

3-29  basis of the original affidavits filed. In the case of any person who

3-30  has entered the military service without having previously made and

3-31  filed an affidavit of exemption, the affidavit may be filed in his

3-32  behalf during the period of such service by any person having

3-33  knowledge of the facts.

3-34      6.] Before allowing any veteran’s exemption pursuant to the

3-35  provisions of this chapter, the Department shall require proof of

3-36  status of the veteran, and for that purpose shall require production of

3-37  an honorable discharge or certificate of satisfactory service or a

3-38  certified copy thereof, or such other proof of status as may be

3-39  necessary.

3-40      [7.] 6.  If any person files a false affidavit or produces false

3-41  proof to the Department, and as a result of the false affidavit or false

3-42  proof a tax exemption is allowed to a person not entitled to the

3-43  exemption, he is guilty of a gross misdemeanor.

 

 

4-1  Sec. 3.  NRS 371.103 is hereby amended to read as follows:

4-2  371.103  1.  Vehicles, to the extent of $2,000 determined

4-3  valuation, registered by any actual bona fide resident of the State of

4-4  Nevada who:

4-5  (a) Has served a minimum of 90 days on active duty, who was

4-6  assigned to active duty at some time between April 21, 1898, and

4-7  June 15, 1903, or between April 6, 1917, and November 11, 1918,

4-8  or between December 7, 1941, and December 31, 1946, or between

4-9  June 25, 1950, and January 31, 1955;

4-10      (b) Has served a minimum of 90 continuous days on active duty

4-11  none of which was for training purposes, who was assigned to active

4-12  duty at some time between January 1, 1961, and May 7, 1975; or

4-13      (c) Has served on active duty in connection with carrying out

4-14  the authorization granted to the President of the United States in

4-15  Public Law 102-1,

4-16  and who received, upon severance from service, an honorable

4-17  discharge or certificate of satisfactory service from the Armed

4-18  Forces of the United States, [or who, having so served, is still

4-19  serving in the Armed Forces of the United States,] is exempt from

4-20  taxation.

4-21      2.  For the purpose of this section, the first $2,000 determined

4-22  valuation of vehicles in which such a person has any interest shall

4-23  be deemed to belong to that person.

4-24      3.  A person claiming the exemption shall file annually with the

4-25  Department in the county where the exemption is claimed an

4-26  affidavit declaring that he is an actual bona fide resident of the State

4-27  of Nevada who meets all the other requirements of subsection 1 and

4-28  that the exemption is claimed in no other county in this state. The

4-29  affidavit must be made before the county assessor or a notary

4-30  public. After the filing of the original affidavit, the county assessor

4-31  shall mail a form for:

4-32      (a) The renewal of the exemption; and

4-33      (b) The designation of any amount to be credited to the

4-34  Veterans’ Home Account,

4-35  to the person each year following a year in which the exemption was

4-36  allowed for that person. The form must be designed to facilitate its

4-37  return by mail by the person claiming the exemption.

4-38      4.  [Persons in actual military service are exempt during the

4-39  period of such service from filing annual affidavits of exemption

4-40  and the Department shall grant exemptions to those persons on the

4-41  basis of the original affidavits filed. In the case of any person who

4-42  has entered the military service without having previously made and

4-43  filed an affidavit of exemption, the affidavit may be filed in his

4-44  behalf during the period of such service by any person having

4-45  knowledge of the facts.

5-1  5.] Before allowing any veteran’s exemption pursuant to the

5-2  provisions of this chapter, the Department shall require proof of

5-3  status of the veteran, and for that purpose shall require production of

5-4  an honorable discharge or certificate of satisfactory service or a

5-5  certified copy thereof, or such other proof of status as may be

5-6  necessary.

5-7  [6.] 5.  If any person files a false affidavit or produces false

5-8  proof to the Department, and as a result of the false affidavit or false

5-9  proof a tax exemption is allowed to a person not entitled to the

5-10  exemption, he is guilty of a gross misdemeanor.

5-11      [7.] 6.  Beginning with the 2005-2006 Fiscal Year, the

5-12  monetary amounts in subsections 1 and 2 must be adjusted for each

5-13  fiscal year by adding to each amount the product of the amount

5-14  multiplied by the percentage increase in the Consumer Price Index

5-15  (All Items) from December 2003 to the December preceding the

5-16  fiscal year for which the adjustment is calculated.

5-17      Sec. 4.  NRS 371.106 is hereby amended to read as follows:

5-18      371.106  1.  Whenever any vehicle ceases to be exempt from

5-19  taxation under NRS 371.101, 371.102, 371.103 or 371.104 or

5-20  section 1 of this act because the owner no longer meets the

5-21  requirements for the exemption provided in those sections, its owner

5-22  shall immediately notify the Department of the fact.

5-23      2.  If a person fails to notify the Department as required by

5-24  subsection 1 and as a result of such failure is allowed a tax

5-25  exemption to which he is not entitled, there [shall] must be added to

5-26  and collected with the tax otherwise due a penalty equal to double

5-27  the amount of the tax. If the person’s failure is fraudulent and results

5-28  in his receiving a tax exemption to which he is not entitled, the

5-29  person is also guilty of a gross misdemeanor.

5-30      Sec. 5.  NRS 482.368 is hereby amended to read as follows:

5-31      482.368  1.  Except as otherwise provided in subsection 2, the

5-32  Department shall provide suitable distinguishing license plates for

5-33  exempt vehicles. These plates must be displayed on the vehicles in

5-34  the same manner as provided for privately owned vehicles. The fee

5-35  for the issuance of the plates is $5. Any license plates authorized by

5-36  this section must be immediately returned to the Department when

5-37  the vehicle for which they were issued ceases to be used exclusively

5-38  for the purpose for which it was exempted from the governmental

5-39  services tax.

5-40      2.  License plates furnished for:

5-41      (a) Those vehicles which are maintained for and used by the

5-42  Governor or under the authority and direction of the Chief Parole

5-43  and Probation Officer, the State Contractors’ Board and auditors, the

5-44  State Fire Marshal, the Investigation Division of the Department of

6-1  Public Safety and any authorized federal law enforcement agency or

6-2  law enforcement agency from another state;

6-3  (b) One vehicle used by the Department of Corrections, three

6-4  vehicles used by the Division of Wildlife of the State Department of

6-5  Conservation and Natural Resources, two vehicles used by the

6-6  Caliente Youth Center and four vehicles used by the Nevada Youth

6-7  Training Center;

6-8  (c) Vehicles of a city, county or the State, if authorized by the

6-9  Department for the purposes of law enforcement or work related

6-10  thereto or such other purposes as are approved upon proper

6-11  application and justification; and

6-12      (d) Vehicles maintained for and used by investigators of the

6-13  following:

6-14          (1) The State Gaming Control Board;

6-15          (2) The State Department of Agriculture;

6-16          (3) The Attorney General;

6-17          (4) City or county juvenile officers;

6-18          (5) District attorneys’ offices;

6-19          (6) Public administrators’ offices;

6-20          (7) Public guardians’ offices;

6-21          (8) Sheriffs’ offices;

6-22          (9) Police Departments in the State; and

6-23          (10) The Securities Division of the Office of the Secretary of

6-24  State,

6-25  must not bear any distinguishing mark which would serve to

6-26  identify the vehicles as owned by the State, county or city. These

6-27  license plates must be issued annually for $12 per plate or, if issued

6-28  in sets, per set.

6-29      3.  The Director may enter into agreements with Departments of

6-30  motor vehicles of other states providing for exchanges of license

6-31  plates of regular series for vehicles maintained for and used by

6-32  investigators of the law enforcement agencies enumerated in

6-33  paragraph (d) of subsection 2, subject to all of the requirements

6-34  imposed by that paragraph, except that the fee required by that

6-35  paragraph must not be charged.

6-36      4.  Applications for the licenses must be made through the head

6-37  of the department, board, bureau, commission, school district or

6-38  irrigation district, or through the chairman of the board of county

6-39  commissioners of the county or town or through the mayor of the

6-40  city, owning or controlling the vehicles, and no plate or plates may

6-41  be issued until a certificate has been filed with the Department

6-42  showing that the name of the department, board, bureau,

6-43  commission, county, city, town, school district or irrigation district,

6-44  as the case may be, and the words “For Official Use Only” have

7-1  been permanently and legibly affixed to each side of the vehicle,

7-2  except those vehicles enumerated in subsection 2.

7-3  5.  As used in this section, “exempt vehicle” means a vehicle

7-4  exempt from the governmental services tax[,] as a result of its

7-5  ownership by a governmental entity, except a vehicle owned by the

7-6  United States.

7-7  6.  The Department shall adopt regulations governing the use of

7-8  all license plates provided for in this section. Upon a finding by the

7-9  Department of any violation of its regulations, it may revoke the

7-10  violator’s privilege of registering vehicles pursuant to this section.

7-11      Sec. 6.  If the Department determines, based upon a claim of

7-12  exemption filed pursuant to NRS 371.103 and any other information

7-13  received by the Department before July 1, 2003, that the person

7-14  claiming that exemption is entitled to an exemption pursuant to

7-15  section 1 of this act for any registration year beginning on or after

7-16  July 1, 2003, that claim of exemption shall be deemed to have been

7-17  filed pursuant to section 1 of this act on July 1, 2003.

7-18      Sec. 7.  1.  This section and sections 1, 2, 4, 5 and 6 of this act

7-19  become effective on July 1, 2003.

7-20      2.  Section 3 of this act becomes effective on July 1, 2004.

7-21      3.  Section 2 of this act expires by limitation on June 30, 2004.

 

7-22  H