requires two-thirds majority vote (§ 1)                                                                                                                 

                                          

 

Senate Bill No. 21–Senator  Neal

 

Prefiled January 24, 2003

____________

 

Referred to  Committee on Taxation

 

SUMMARY—Increases monthly fee for state gaming license. (BDR 41‑192)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to gaming; increasing the monthly fee for a state gaming license; 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 463.370 is hereby amended to read as follows:

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

1-3  the Commission shall charge and collect from each licensee a

1-4  license fee based upon all the gross revenue of the licensee as

1-5  follows:

1-6  (a) Three percent of all the gross revenue of the licensee which

1-7  does not exceed $50,000 per calendar month;

1-8  (b) Four percent of all the gross revenue of the licensee which

1-9  exceeds $50,000 per calendar month and does not exceed $134,000

1-10  per calendar month; [and]

1-11      (c) Six and one-quarter percent of all the gross revenue of the

1-12  licensee which exceeds $134,000 per calendar month[.] and does

1-13  not exceed $1,000,000 per calendar month; and

1-14      (d) Ten and one-quarter percent of all the gross revenue of the

1-15  licensee which exceeds $1,000,000 per calendar month.

1-16      2.  Unless the licensee has been operating for less than a full

1-17  calendar month, the Commission shall charge and collect the fee

1-18  prescribed in subsection 1, based upon the gross revenue for the

1-19  preceding calendar month, on or before the 24th day of the

2-1  following month. Except for the fee based on the first full month of

2-2  operation, the fee is an estimated payment of the license fee for the

2-3  third month following the month whose gross revenue is used as its

2-4  basis.

2-5  3.  When a licensee has been operating for less than a full

2-6  calendar month, the Commission shall charge and collect the fee

2-7  prescribed in subsection 1, based on the gross revenue received

2-8  during that month, on or before the 24th day of the following

2-9  calendar month of operation. After the first full calendar month of

2-10  operation, the Commission shall charge and collect the fee based on

2-11  the gross revenue received during that month, on or before the 24th

2-12  day of the following calendar month. The payment of the fee due for

2-13  the first full calendar month of operation must be accompanied by

2-14  the payment of a fee equal to three times the fee for the first full

2-15  calendar month. This additional amount is an estimated payment of

2-16  the license fees for the next 3 calendar months. Thereafter, each

2-17  license fee must be paid in the manner described in subsection 2.

2-18  Any deposit held by the Commission on July 1, 1969, must be

2-19  treated as an advance estimated payment.

2-20      4.  All revenue received from any game or gaming device

2-21  which is operated on the premises of a licensee, regardless of

2-22  whether any portion of the revenue is shared with any other person,

2-23  must be attributed to the licensee for the purposes of this section and

2-24  counted as part of the gross revenue of the licensee. Any other

2-25  person, including, without limitation, an operator of an inter-casino

2-26  linked system, who is authorized to receive a share of the revenue

2-27  from any game, gaming device or inter-casino linked system that is

2-28  operated on the premises of a licensee is liable to the licensee for

2-29  that person’s proportionate share of the license fees paid by the

2-30  licensee pursuant to this section and shall remit or credit the full

2-31  proportionate share to the licensee on or before the 24th day of each

2-32  calendar month. The proportionate share of an operator of an inter-

2-33  casino linked system must be based on all compensation and other

2-34  consideration received by the operator of the inter-casino linked

2-35  system, including, without limitation, amounts that accrue to the

2-36  meter of the primary progressive jackpot of the inter-casino linked

2-37  system and amounts that fund the reserves of such a jackpot, subject

2-38  to all appropriate adjustments for deductions, credits, offsets and

2-39  exclusions that the licensee is entitled to take or receive pursuant to

2-40  the provisions of this chapter. A licensee is not liable to any other

2-41  person authorized to receive a share of the licensee’s revenue from

2-42  any game, gaming device or inter-casino linked system that is

2-43  operated on the premises of the licensee for that person’s

2-44  proportionate share of the license fees to be remitted or credited to

2-45  the licensee by that person pursuant to this section.

3-1  5.  An operator of an inter-casino linked system shall not enter

3-2  into any agreement or arrangement with a licensee that provides for

3-3  the operator of the inter-casino linked system to be liable to the

3-4  licensee for less than its full proportionate share of the license fees

3-5  paid by the licensee pursuant to this section, whether accomplished

3-6  through a rebate, refund, charge-back or otherwise.

3-7  6.  Any person required to pay a fee pursuant to this section

3-8  shall file with the Commission, on or before the 24th day of each

3-9  calendar month, a report showing the amount of all gross revenue

3-10  received during the preceding calendar month. Each report must be

3-11  accompanied by:

3-12      (a) The fee due based on the revenue of the month covered by

3-13  the report; and

3-14      (b) An adjustment for the difference between the estimated fee

3-15  previously paid for the month covered by the report, if any, and

3-16  the fee due for the actual gross revenue earned in that month. If the

3-17  adjustment is less than zero, a credit must be applied to the

3-18  estimated fee due with that report.

3-19      7.  If the amount of license fees required to be reported and paid

3-20  pursuant to this section is later determined to be greater or less than

3-21  the amount actually reported and paid, the Commission shall:

3-22      (a) Charge and collect the additional license fees determined to

3-23  be due, with interest thereon until paid; or

3-24      (b) Refund any overpayment to the person entitled thereto

3-25  pursuant to this chapter, with interest thereon.

3-26  Interest pursuant to paragraph (a) must be computed at the rate

3-27  prescribed in NRS 17.130 from the first day of the first month

3-28  following the due date of the additional license fees until paid.

3-29  Interest pursuant to paragraph (b) must be computed at one-half the

3-30  rate prescribed in NRS 17.130 from the first day of the first month

3-31  following the date of overpayment until paid.

3-32      8.  Failure to pay the fees provided for in this section shall be

3-33  deemed a surrender of the license at the expiration of the period for

3-34  which the estimated payment of fees has been made, as established

3-35  in subsection 2.

3-36      9.  Except as otherwise provided in NRS 463.386, the amount

3-37  of the fee prescribed in subsection 1 must not be prorated.

3-38      10.  Except as otherwise provided in NRS 463.386, if a licensee

3-39  ceases operation, the Commission shall:

3-40      (a) Charge and collect the additional license fees determined to

3-41  be due with interest computed pursuant to paragraph (a) of

3-42  subsection 7; or

 

 

4-1  (b) Refund any overpayment to the licensee with interest

4-2  computed pursuant to paragraph (b) of subsection 7,

4-3  based upon the gross revenue of the licensee during the last 3

4-4  months immediately preceding the cessation of operation, or

4-5  portions of those last 3 months.

4-6  11.  If in any month, the amount of gross revenue is less than

4-7  zero, the licensee may offset the loss against gross revenue in

4-8  succeeding months until the loss has been fully offset.

4-9  12.  If in any month, the amount of the license fee due is less

4-10  than zero, the licensee is entitled to receive a credit against any

4-11  license fees due in succeeding months until the credit has been fully

4-12  offset.

4-13      Sec. 2.  This act becomes effective on July 1, 2003.

 

4-14  H