Senate Bill No. 470–Committee on Taxation

 

CHAPTER..........

 

AN ACT relating to taxation; authorizing cities that own or operate airports in certain counties to impose certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft; revising the method for the distribution of and certain restrictions on the expenditure of the proceeds of certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft; 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. Chapter 365 of NRS is hereby amended by adding

 thereto a new section to read as follows:

    “Governmental entity” includes, without limitation, an airport

 authority created by special legislative act.

    Sec. 2.  NRS 365.010 is hereby amended to read as follows:

    365.010  As used in this chapter, unless the context otherwise

 requires, the words and terms defined in NRS 365.015 to 365.088,

 inclusive, and section 1 of this act have the meanings ascribed to

 them in those sections.

    Sec. 3.  NRS 365.170 is hereby amended to read as follows:

    365.170  1.  Except as otherwise provided in NRS 365.135,

 every dealer shall, not later than the last day of each calendar

 month:

    (a) Render to the Department a statement of all aviation fuel and

 fuel for jet or turbine-powered aircraft sold, distributed or used by

 him in this state, as well as all such fuel sold, distributed or used in

 this state by a purchaser thereof upon which sale, distribution or use

 the dealer has assumed liability for the tax thereon pursuant to NRS

 365.020, during the preceding calendar month; and

    (b) Pay an excise tax on:

        (1) All fuel for jet or turbine-powered aircraft in the amount

 of 1 cent per gallon, plus any applicable amount imposed [by the

 county in which the fuel is sold, distributed or used] pursuant to

 NRS 365.203; and

        (2) Aviation fuel in the amount of 2 cents per gallon, plus

 any applicable amount imposed [by the county in which the fuel is

 sold, distributed or used] pursuant to NRS 365.203,

so sold, distributed or used, in the manner and within the time

 prescribed in this chapter.

    2.  A dealer shall hold the amount of all taxes collected

 pursuant to this chapter in a separate account in trust for the State.

    Sec. 4.  NRS 365.203 is hereby amended to read as follows:

    365.203  1.  The governing body of a city may by ordinance,

 but not as in a case of emergency, impose a tax of not more than:

    (a) Four cents per gallon on fuel for jet or turbine-powered

 aircraft; and

    (b) Eight cents per gallon on aviation fuel,

sold, distributed or used at an airport which is owned or operated

 by the city in a county whose population is less than 100,000.

    2.  A board of county commissioners may by ordinance, but not

 as in a case of emergency, impose a tax of not more than:

    (a) Four cents per gallon on fuel for jet or turbine-powered

 aircraft ; [sold, distributed or used in the county;] and

    (b) Eight cents per gallon on aviation fuel[.

    2.] ,

sold, distributed or used in the county, except at an airport where a

 tax is imposed pursuant to subsection 1.

    3.  A tax imposed pursuant to this section must be imposed on

 all taxpayers at the same rate. The city or county shall not allow any

 discounts, exemptions or other variance of the rate of the tax for

 any taxpayer except for the State or a political subdivision of the

 State.

    [3.] 4.  Collection of the tax imposed pursuant to this section

 must not commence earlier than the first day of the second calendar

 month after adoption of the ordinance imposing the tax.

    Sec. 5.  NRS 365.545 is hereby amended to read as follows:

    365.545  1.  The proceeds of all taxes on fuel for jet or

 turbine-powered aircraft imposed pursuant to the provisions of NRS

 365.170 or 365.203 must be deposited in the Account for Taxes on

 Fuel for Jet or Turbine-Powered Aircraft in the State General Fund

 and must be allocated monthly by the Department to the

 [governmental] :

    (a) Governmental entity which operates the airport at which

 the tax was collected, if the airport is operated by a governmental

 entity;

    (b) Governmental entity which owns the airport at which the tax

 was collected, [or if the airport is privately owned , to the county] if

 the airport is owned but not operated by a governmental entity; or

    (c) County in which is located the airport [is located .] at which

 the tax was collected, if the airport is neither owned nor operated

 by a governmental entity.

    2.  The money so received must be used by the governmental

 entity receiving it to pay the cost of:

    (a) Transportation projects related to airports, including access

 on the ground to airports;

    (b) Payment of principal and interest on notes, bonds or other

 obligations incurred to fund projects described in paragraph (a);

    (c) Promoting the use of an airport [,] located in a county whose

population is less than 400,000, including, without limitation,

 increasing the number and availability of flights at the airport;

    (d) Contributing money to the Trust Fund for Aviation created

 by NRS 494.048; or

    (e) Any combination of those purposes.

    3.  Money so received may also be pledged for the payment of

 general or special obligations issued to fund projects described in

 paragraph (a) of subsection 2.

    4.  Any money pledged pursuant to the provisions of subsection

 3 may be treated as pledged revenues of the project for the purposes

 of subsection 3 of NRS 350.020.

    Sec. 6.  NRS 365.565 is hereby amended to read as follows:

    365.565  1.  The tax derived from aviation fuel must be

 distributed quarterly from the Account for Taxes on Aviation Fuel

 in the following manner:

    [1.  There]

    (a) The amount of any optional tax must be remitted to the:

        (1) Governmental entity which operates the airport at

 which the optional tax was collected, if the airport is operated by a

 governmental entity;

        (2) Governmental entity which owns the airport at which

 the optional tax was collected, if the airport is owned but not

 operated by a governmental entity; or

        (3) County in which is located the airport at which the

 optional tax was collected, if the airport is neither owned nor

 operated by a governmental entity.

    (b) After deducting the amount allocated pursuant to

 paragraph (a), there must be transferred to the Civil Air Patrol

 Account, which is hereby created, [from the Account for Taxes on

 Aviation Fuel,] for the ensuing fiscal year, a sum not to exceed

 $130,000 or the total amount remaining in the [Account,] Account

 for Taxes on Aviation Fuel, whichever is less.

    (c) After deducting the amounts allocated pursuant to

 paragraphs (a) and (b), any remaining balance in the Account for

 Taxes on Aviation Fuel must be remitted, in proportion to the

 amount of the mandatory tax collected at each airport, to the:

        (1) Governmental entity which operates the airport at

 which the mandatory tax was collected, if the airport is operated

 by a governmental entity;

        (2) Governmental entity which owns the airport at which

 the mandatory tax was collected, if the airport is owned but not

 operated by a governmental entity; or

        (3) County in which is located the airport at which the

 mandatory tax was collected, if the airport is neither owned nor

 operated by a governmental entity.

    2.  Any money received by a governmental entity pursuant to

subsection 1, except for the money transferred to the Civil Air

 Patrol Account, must be used by that governmental entity in the

 same manner as money allocated to a governmental entity

 pursuant to NRS 365.545.

    3.  The amount [so] transferred to the Civil Air Patrol Account

 pursuant to this section must be expended for the support of the

 Nevada Wing of the Civil Air Patrol and is in addition to and

 separate from any legislative appropriations made to the Civil Air

 Patrol Account for the support of that wing.

    [2.] 4.  Money in the Civil Air Patrol Account may be paid out

 only upon claims certified by the Wing Commander and the Wing

 Finance Officer and approved by the State Board of Examiners, in

 the same manner as other claims against the State are paid.

    [3.] 5.  Money in the Civil Air Patrol Account may be used

 only by the wing to:

    (a) Carry out its search, rescue and emergency operations;

    (b) Maintain a headquarters; and

    (c) Purchase, maintain and repair emergency and training

 equipment.

    [4.] 6.  No money in the Civil Air Patrol Account may be

 expended for:

    (a) The purchase of any aircraft;

    (b) Travel expenses;

    (c) Training expenses; or

    (d) Fuel for vehicles or aircraft used in an official mission of the

 United States Air Force.

    [5.] 7.  Any person who makes a claim against the Civil Air

 Patrol Account shall reimburse the Account if payment for the

 claim is also received from another source.

    [6.  There must be remitted to the treasurer of each county such

 portion of the remaining balance in the Account for Taxes on

 Aviation Fuel as is proportional to the excise taxes remitted by

 dealers or users in his county.]

    8.  As used in this section:

    (a) “Mandatory tax” means the tax on aviation fuel collected

 pursuant to NRS 365.170 without regard to any optional tax.

    (b) “Optional tax” means a tax on aviation fuel imposed

 pursuant to NRS 365.203.

    Sec. 7.  NRS 494.046 is hereby repealed.

    Sec. 8.  The provisions of this act do not apply to the

 administration and use of any money remitted to a county treasurer

 pursuant to NRS 365.565 before July 1, 2003.

    Sec. 9.  This act becomes effective on July 1, 2003.

 

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