requires two-thirds majority vote (§ 6)                                                                                                                 

                                                                                                  

 

Senate Bill No. 492–Committee on Commerce and Labor

 

March 31, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Imposes tax on gross revenue that direct broadcast satellite television company derives from sales to subscribers in this state. (BDR 58‑1322)

 

FISCAL NOTE:  Effect on Local Government: No.

                           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 taxes; imposing a tax on the gross revenue that a direct broadcast satellite television company derives from its sales of direct broadcast satellite television service to subscribers in this state; requiring the Department of Taxation to provide by regulation for the collection and enforcement of the tax; 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 711 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 to 7, inclusive, of this

1-3  act.

1-4  Sec. 2.  As used in sections 2 to 7, inclusive, of this act, unless

1-5  the context otherwise requires, the words and terms defined in

1-6  sections 3, 4 and 5 of this act have the meanings ascribed to them

1-7  in those sections.

1-8  Sec. 3.  “Department” means the Department of Taxation.

1-9  Sec. 4.  “Direct broadcast satellite television company” or

1-10  “company” means any person who provides direct broadcast

1-11  television service to one or more subscribers in this state.

1-12      Sec. 5.  “Direct broadcast satellite television service” means

1-13  any programming that is transmitted or broadcasted by satellite

1-14  directly to the premises of a subscriber without the use of any

2-1  ground equipment to receive or distribute the programming, other

2-2  than ground equipment that is used:

2-3  1.  At the premises of the subscriber to receive the

2-4  programming; or

2-5  2.  To uplink the programming to the satellite.

2-6  Sec. 6.  1.  There is hereby imposed on each direct broadcast

2-7  satellite television company for the privilege of providing direct

2-8  broadcast satellite television service to subscribers in this state a

2-9  tax in the amount of 5 percent of the gross revenue that the

2-10  company derives from its sales of direct broadcast satellite

2-11  television service to subscribers in this state.

2-12      2.  The tax imposed by this section does not apply to any gross

2-13  revenue of a direct broadcast satellite television company which is

2-14  not attributable to the company’s sales of direct broadcast satellite

2-15  television service to subscribers in this state.

2-16      3.  The Department shall adopt regulations for determining

2-17  the gross revenue that a direct broadcast satellite television

2-18  company derives from its sales of direct broadcast satellite

2-19  television service to subscribers in this state. In adopting the

2-20  regulations, the Department shall consider any applicable

2-21  regulations adopted by the Federal Communications Commission.

2-22      4.  If a direct broadcast satellite television company pays any

2-23  fee or annual assessment for the use of one or more pay or

2-24  premium channels to provide direct broadcast satellite television

2-25  service to subscribers in this state, the company is entitled to

2-26  deduct from the taxes imposed pursuant to this section an amount

2-27  which is equal to the proportion of each such fee or annual

2-28  assessment which is attributable to the provision of direct

2-29  broadcast satellite television service to subscribers in this state.

2-30      Sec. 7.  1.  The Department shall adopt regulations to

2-31  provide for the collection and enforcement of the tax imposed by

2-32  section 6 of this act. The regulations must include, without

2-33  limitation:

2-34      (a) Provisions prescribing the forms for submitting the tax to

2-35  the Department;

2-36      (b) Provisions setting forth the periods for filing returns;

2-37      (c) A procedure for making refunds and resolving disputes

2-38  relating to the tax; and

2-39      (d) Requirements for maintaining records and provisions

2-40  concerning the inspection and investigation of those records.

2-41      2.  The tax imposed by section 6 of this act must be:

2-42      (a) Accounted for by each direct broadcast satellite television

2-43  company;

2-44      (b) Paid to the Department by the company; and

3-1  (c) Within 10 days after payment, delivered by the Department

3-2  to the State Treasurer.

3-3  Sec. 8.  This act becomes effective upon passage and approval

3-4  for the purpose of adopting regulations and on July 1, 2003, for all

3-5  other purposes.

 

3-6  H