Senate Bill No. 404–Committee on Government Affairs

 

(On Behalf of the Legislative Committee to Study Competition Between Local Governments
and Private Enterprise)

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Proposes imposition of sales tax on sales of items purchased by state and local governments for resale to public. (BDR 32‑410)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxes on retail sales; providing for the submission to the voters of the question whether the Sales and Use Tax Act of 1955 should be amended to impose the tax on sales of items purchased by this state and local governments for resale to the public; contingently imposing analogous taxes on such sales; 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. At the general election on November 2, 2004, a

1-2  proposal must be submitted to the registered voters of this state to

1-3  amend the Sales and Use Tax Act, which was enacted by the 47th

1-4  Session of the Legislature of the State of Nevada and approved by

1-5  the Governor in 1955, and subsequently approved by the people of

1-6  this state at the general election held on November 6, 1956.

1-7  Sec. 2.  At the time and in the manner provided by law, the

1-8  Secretary of State shall transmit the proposed act to the several

1-9  county clerks, and the county clerks shall cause it to be published

1-10  and posted as provided by law.

2-1  Sec. 3.  The proclamation and notice to the voters given by the

2-2  county clerks pursuant to law must be in substantially the following

2-3  form:

2-4  Notice is hereby given that at the general election on

2-5  November 2, 2004, a question will appear on the ballot for

2-6  the adoption or rejection by the registered voters of the state

2-7  of the following proposed act:

2-8  AN ACT to amend an act entitled “An Act to provide

2-9  revenue for the State of Nevada; providing for sales and

2-10  use taxes; providing for the manner of collection; defining

2-11  certain terms; providing penalties for violation, and other

2-12  matters properly relating thereto.” approved March 29,

2-13  1955, as amended.

 

2-14  THE PEOPLE OF THE STATE OF NEVADA

2-15  DO ENACT AS FOLLOWS:

 

2-16      Section1. Section 3 of the above-entitled act, being

2-17  chapter 397, Statutes of Nevada 1955, at page 763, is hereby

2-18  amended to read as follows:

2-19      Sec. 3.  1. “Person” includes any [individual,]

2-20  natural person, firm, copartnership, joint venture,

2-21  association, social club, fraternal organization,

2-22  corporation, estate, trust, business trust, receiver, trustee,

2-23  syndicate, cooperative, assignee, or any other group or

2-24  combination acting as a unit . [, but shall]

2-25      2.  The term includes the State of Nevada, its

2-26  unincorporated agencies and instrumentalities, and any

2-27  county, city, district or other political subdivision of this

2-28  state for the sole purpose of imposing and administering

2-29  the tax upon the gross receipts from the sale of tangible

2-30  personal property purchased by such a governmental

2-31  entity for resale to the public.

2-32      3.  The term does not include the United States . [,

2-33  this state or any agency thereof, or any city, county,

2-34  district or other political subdivision of this state.]

2-35      Sec. 2.  Section 50 of the above entitled act, being

2-36  chapter 397, Statutes of Nevada 1955, at page 771, as

2-37  amended by chapter 459, Statutes of Nevada 1995, at page

2-38  1435, is hereby amended to read as follows:

2-39      Sec. 50. 1.  There are exempted from the

2-40  computation of the amount of the sales tax the gross

2-41  receipts from the sale of any tangible personal property to:

2-42      [1.] (a) The United States[,] or its unincorporated

2-43  agencies and instrumentalities.

3-1  [2.] (b) Any incorporated agency or instrumentality of

3-2  the United States wholly owned by the United States or by

3-3  a corporation wholly owned by the United States.

3-4  [3.] (c) The State of Nevada[,] or its unincorporated

3-5  agencies and instrumentalities.

3-6  [4.] (d) Any county, city, district or other political

3-7  subdivision of this state.

3-8  2.  Except as otherwise provided in subsection 3,

3-9  there are exempted from the computation of the amount

3-10  of the sales tax the gross receipts from the sale of any

3-11  tangible personal property by:

3-12      (a) The State of Nevada or its unincorporated

3-13  agencies and instrumentalities.

3-14      (b) Any county, city, district or other political

3-15  subdivision of this state.

3-16      3.  The provisions of subsection 2 do not apply to the

3-17  sale of items of tangible personal property which are

3-18  purchased by the governmental entity for resale to the

3-19  public.

3-20      Sec.3. This act becomes effective on January 1, 2005.

3-21      Sec. 4.  The ballot page assemblies and the paper ballots to be

3-22  used in voting on the question must present the question in

3-23  substantially the following form:

3-24      Shall the Sales and Use Tax Act of 1955 be amended to

3-25  impose the sales and use tax upon items purchased by this

3-26  state or by a local government or local governmental agency

3-27  for resale to the public by the governmental entity?

3-28  Yes ¨          No ¨

3-29      Sec. 5.  The explanation of the question which must appear on

3-30  each paper ballot and sample ballot and in every publication and

3-31  posting of notice of the question must be in substantially the

3-32  following form:

 

3-33  (Explanation of Question)

3-34      The proposed amendment to the Sales and Use Tax Act of

3-35  1955 would impose the tax upon the gross receipts from the

3-36  sale of tangible personal property purchased by the state or a

3-37  local government or local governmental agency for resale to

3-38  the public. If this proposal is adopted, the Legislature has

3-39  provided that the Local School Support Tax Law and certain

3-40  analogous taxes on retail sales will be amended to impose

3-41  those taxes upon such sales.

3-42      Sec. 6.  If a majority of the votes cast on the question is yes,

3-43  the amendment to the Sales and Use Tax Act of 1955 becomes

3-44  effective on January 1, 2005. If less than a majority of votes cast on

4-1  the question is yes, the question fails and the amendment to the

4-2  Sales and Use Tax Act of 1955 does not become effective.

4-3  Sec. 7.  All general election laws not inconsistent with this act

4-4  are applicable.

4-5  Sec. 8.  Any informalities, omissions or defects in the content

4-6  or making of the publications, proclamations or notices provided for

4-7  in this act and by the general election laws under which this election

4-8  is held must be so construed as not to invalidate the adoption of the

4-9  act by a majority of the registered voters voting on the question if it

4-10  can be ascertained with reasonable certainty from the official returns

4-11  transmitted to the Office of the Secretary of State whether the

4-12  proposed amendment was adopted by a majority of those registered

4-13  voters.

4-14      Sec. 9.  NRS 372.125 is hereby amended to read as follows:

4-15      372.125  1.  Every person desiring to engage in or conduct

4-16  business as a seller within this state must file with the Department

4-17  an application for a permit for each place of business.

4-18      2.  Every application for a permit must:

4-19      (a) Be made upon a form prescribed by the Department.

4-20      (b) Set forth the name under which the applicant transacts or

4-21  intends to transact business and the location of his place or places of

4-22  business.

4-23      (c) Set forth other information which the Department may

4-24  require.

4-25      3.  The application must be signed by the following persons:

4-26      (a) By the owner if he is a natural person . [; in]

4-27      (b) In the case of an association or partnership, by a member or

4-28  partner . [; in]

4-29      (c) In the case of a corporation, by an executive officer or some

4-30  person specifically authorized by the corporation to sign the

4-31  application, to which must be attached the written evidence of his

4-32  authority.

4-33      (d) In the case of the State of Nevada, its unincorporated

4-34  agencies and instrumentalities, or any county, city, district or

4-35  other political subdivision, by some person specifically authorized

4-36  by the governmental entity to sign the application, to which must

4-37  be attached the written evidence of his authority.

4-38      Sec. 10.  Chapter 374 of NRS is hereby amended by adding

4-39  thereto a new section to read as follows:

4-40      “Person” includes the State of Nevada, its unincorporated

4-41  agencies and instrumentalities, and any county, city, district or

4-42  other political subdivision of this state for the sole purpose of

4-43  imposing and administering the tax upon the gross receipts from

4-44  the sale of tangible personal property purchased by such a

4-45  governmental entity for resale to the public.

5-1  Sec. 11.  NRS 374.020 is hereby amended to read as follows:

5-2  374.020  [Except where] As used in this chapter, unless the

5-3  context otherwise requires, the [definitions given] words and terms

5-4  defined in NRS 374.025 to 374.107, inclusive, [govern the

5-5  construction of this chapter.] and section 10 of this act, have the

5-6  meanings ascribed to them in those sections.

5-7  Sec. 12.  NRS 374.130 is hereby amended to read as follows:

5-8  374.130  1.  Every person desiring to engage in or conduct

5-9  business as a seller within a county shall file with the Department an

5-10  application for a permit for each place of business, unless he intends

5-11  to sell vehicles and will make fewer than three retail sales of

5-12  vehicles during any 12-month period.

5-13      2.  Every application for a permit must:

5-14      (a) Be made upon a form prescribed by the Department.

5-15      (b) Set forth the name under which the applicant transacts or

5-16  intends to transact business and the location of his place or places of

5-17  business.

5-18      (c) Set forth such other information as the Department may

5-19  require.

5-20      3.  The application must be signed by the following persons:

5-21      (a) By the owner if he is a natural person . [; in]

5-22      (b) In the case of an association or partnership, by a member or

5-23  partner . [; in]

5-24      (c) In the case of a corporation, by an executive officer or some

5-25  person specifically authorized by the corporation to sign the

5-26  application, to which must be attached the written evidence of his

5-27  authority.

5-28      (d) In the case of the State of Nevada, its unincorporated

5-29  agencies and instrumentalities, or any county, city, district or

5-30  other political subdivision, by some person specifically authorized

5-31  by the governmental entity to sign the application, to which must

5-32  be attached the written evidence of his authority.

5-33      Sec. 13.  NRS 374.330 is hereby amended to read as follows:

5-34      374.330  1.  There are exempted from the computation of the

5-35  amount of the sales tax the gross receipts from the sale of any

5-36  tangible personal property to:

5-37      [1.] (a) The United States[,] or its unincorporated agencies and

5-38  instrumentalities.

5-39      [2.] (b) Any incorporated agency or instrumentality of the

5-40  United States wholly owned by the United States or by a corporation

5-41  wholly owned by the United States.

5-42      [3.] (c) The State of Nevada[,] or its unincorporated agencies

5-43  and instrumentalities.

5-44      [4.] (d) Any county, city, district or other political subdivision

5-45  of this state.

6-1  2.  Except as otherwise provided in subsection 3, there are

6-2  exempted from the computation of the amount of the sales tax the

6-3  gross receipts from the sale of any tangible personal property by:

6-4  (a) The State of Nevada or its unincorporated agencies and

6-5  instrumentalities.

6-6  (b) Any county, city, district or other political subdivision of

6-7  this state.

6-8  3.  The provisions of subsection 2 do not apply to the sale of

6-9  items of tangible personal property which are purchased by the

6-10  governmental entity for resale to the public.

6-11      Sec. 14.  Sections 9 to 13, inclusive, of this act become

6-12  effective on January 1, 2005, only if the proposal submitted

6-13  pursuant to sections 1 to 5, inclusive, of this act is approved by the

6-14  voters at the general election on November 2, 2004.

 

6-15  H