SB464_EN

Senate Bill No. 464–Committee on Taxation

CHAPTER..........

AN ACT relating to vessels; revising the provisions governing the administration of the exemption from certain taxes on the sale of tangible personal property to be shipped outside this state to include the sale of a vessel to a nonresident under certain circumstances; excluding the value of a vessel taken in trade from the sales price of a vessel for the purposes of certain taxes; exempting a motorboat that has been documented pursuant to federal law from the requirement of obtaining a title pursuant to the provisions governing watercraft; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 372.7263 is hereby amended to read as

follows:

372.7263 In administering the provisions of NRS 372.335, the

Department shall apply the exemption for the sale of tangible

personal property delivered by the vendor to a forwarding agent for

shipment out of state to include:

1. The sale of a vehicle to a nonresident to whom a special

movement permit has been issued by the Department of Motor

Vehicles pursuant to subsection 1 of NRS 482.3955; [and]

2. The sale of farm machinery and equipment, as defined in

NRS 374.286, to a nonresident who submits proof to the vendor that

the farm machinery and equipment will be delivered out of state not

later than 15 days after the sale [.] ; and

3. The sale of a vessel to a nonresident who submits proof to

the vendor that the vessel will be delivered out of state not later

than 15 days after the sale.

Sec. 2. Chapter 374 of NRS is hereby amended by adding

thereto the provisions set forth as sections 3 and 4 of this act.

Sec. 3. 1. Except as otherwise provided in subsection 2,

“vessel” means every description of watercraft used or capable of

being used as a means of transportation on water.

2. The term does not include a canoe, float tube, kayak,

rubber raft or seaplane.

Sec. 4. (Deleted by amendment.)

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

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

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

defined in NRS 374.025 to 374.107, inclusive, [govern the

construction of this chapter.] and section 3 of this act have the

meanings ascribed to them in those sections.

Sec. 6. (Deleted by amendment.)

Sec. 7. NRS 374.070 is hereby amended to read as follows:

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

tangible property is sold, valued in money, whether paid in money

or otherwise, without any deduction on account of any of the

following:

(a) The cost of the property sold.

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

charged, losses, or any other expenses.

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

the following:

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

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

seller.

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

(a) Cash discounts allowed and taken on sales.

(b) The amount charged for property returned by customers

when the entire amount charged therefor is refunded [either] in cash

or credit[; but] , except that this exclusion does not apply in any

instance when the customer, in order to obtain the refund, is

required to purchase other property at a price greater than the

amount charged for the property that is returned.

installing or applying the property sold.

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

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

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

retailer or the consumer.

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

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

personal property purchased from any retailer.

(f) The amount of any allowance against the selling price given

by a retailer for the value of a used vehicle or vessel which is taken

in trade on the purchase of another vehicle[.] or vessel.

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

required to be registered with the Department of Taxation, the sales

price is the value established in the manner set forth in

NRS 374.112.

Sec. 8. NRS 374.7273 is hereby amended to read as follows:

374.7273 In administering the provisions of NRS 374.340, the

Department shall apply the exemption for the sale of tangible

personal property delivered by the vendor to a forwarding agent for

shipment out of state to include:

1. The sale of a vehicle to a nonresident to whom a special

movement permit has been issued by the Department of Motor

Vehicles pursuant to subsection 1 of NRS 482.3955; [and]

2. The sale of farm machinery and equipment, as defined in

NRS 374.286, to a nonresident who submits proof to the vendor that

the farm machinery and equipment will be delivered out of state not

later than 15 days after the sale [.] ; and

3. The sale of a vessel to a nonresident who submits proof to

the vendor that the vessel will be delivered out of state not later

than 15 days after the sale.

Sec. 9. NRS 488.065 is hereby amended to read as follows:

488.065 1. Every motorboat on the waters of this state must

be numbered and titled, except as otherwise provided in subsection

4 and NRS 488.175.

2. Upon receipt of an original application for a certificate of

ownership or for transfer of a certificate of ownership on an

undocumented motorboat, the Division of Wildlife of the State

Department of Conservation and Natural Resources may assign an

appropriate builder’s hull number to the motorboat whenever there

is no builder’s number thereon, or when the builder’s number has

been destroyed or obliterated. The builder’s number must be

permanently marked on an integral part of the hull which is

accessible for inspection.

3. A person shall not operate or give permission for the

operation of any motorboat on the waters of this state unless:

(a) The motorboat is numbered in accordance with the

provisions of this chapter[, with applicable federal law] or with the

federally approved numbering system of another state;

(b) The certificate of number awarded to the motorboat is in

effect;

is displayed on each side of the bow of the motorboat; and

(d) A valid certificate of ownership has been issued to the owner

of any motorboat required to be numbered under this chapter.

4. Any person who purchases or otherwise owns a motorboat

before January 1, 1972, is not required to obtain title for the

motorboat until he transfers any portion of his ownership in the

motorboat to another person.

Sec. 10. NRS 488.085 is hereby amended to read as follows:

488.085 The owner of any motorboat already covered by a

number in [full force and] effect which has been awarded to it

pursuant to [then operative federal law or] a federally approved

numbering system of another state [shall] must record the number

[prior to] before operating the motorboat on the waters of this state

in excess of the 90‑day reciprocity period provided for in NRS

488.175. [Such recordation shall] The recordation must be in the

manner and pursuant to the procedure required for the award of a

number under NRS 488.075, but no additional or substitute number

[shall] may be issued.

Sec. 11. NRS 488.175 is hereby amended to read as follows:

488.175 1. Except as otherwise provided in subsection 2, a

motorboat need not be numbered pursuant to the provisions of this

chapter if it is:

(a) Already covered by a number in effect which has been

awarded or issued to it pursuant to [federal law or] a federally

approved numbering system of another state if the boat has not been

on the waters of this state for a period in excess of 90 consecutive

days.

(b) A motorboat from a country other than the United States

temporarily using the waters of this state.

subdivision of a state.

(d) A ship’s lifeboat.

(e) A motorboat belonging to a class of boats which has been

exempted from numbering by the Division of Wildlife of the State

Department of Conservation and Natural Resources after the

Division has found:

(1) That the numbering of motorboats of that class will not

materially aid in their identification; and

(2) If an agency of the Federal Government has a numbering

system applicable to the class of motorboats to which the motorboat

in question belongs, that the motorboat would also be exempt from

numbering if it were subject to the federal law.

2. The Division of Wildlife may, by regulation, provide for the

issuance of exempt numbers for motorboats not required to be

registered under the provisions of this chapter.

3. A motorboat need not be titled pursuant to the provisions of

this chapter, if it is [already covered] :

(a) Covered by a certificate of ownership which has been

awarded or issued to it pursuant to the title system of another state

[.] ; or

(b) Documented pursuant to Chapter 121 of Title 46 of the

United States Code.

Sec. 12. NRS 488.1797 is hereby amended to read as follows:

488.1797 1. Before the issuance of any certificate of

ownership, the Division of Wildlife of the State Department of

Conservation and Natural Resources shall obtain a statement in

writing signed by the transferee or transferor, showing:

(a) The date of the sale or other transfer of ownership of the

motorboat.

(b) The name and address of the seller or transferor.

2. Upon receipt of [the] :

(a) The properly endorsed certificate of ownership [, the] ;

(b) The certificate of number and the required fee [and] ;

(d) Proof that the applicable taxes have been paid,

the Division of Wildlife shall issue a new certificate of ownership

and a new certificate of number to the transferee. The previous

number may be reassigned to the transferee.

Sec. 13. 1. This section and sections 9, 10 and 11 of this act

become effective on January 1, 2004.

2. Sections 1 to 8, inclusive, and 12 of this act become

effective on January 1, 2005.

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