Assembly Bill No. 142–Committee on Commerce and Labor

 

(On Behalf of the Department of Taxation)

 

February 14, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises rate of interest required for late payments of certain taxes. (BDR 57‑554)

 

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 taxation; revising the rate of interest required for late payments of certain taxes; 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 680B.039 is hereby amended to read as

1-2  follows:

1-3  680B.039  Any insurer that fails to file the report or pay the tax

1-4  as required by NRS 680B.025 to 680B.039, inclusive, within the

1-5  time for filing and payment as provided in those sections shall in

1-6  addition to any other applicable penalty pay a penalty of not more

1-7  than 10 percent of the amount of the tax which is owed, as

1-8  determined by the Department of Taxation, in addition to the tax,

1-9  plus interest at the rate of [1.5] 1 percent per month, or fraction of a

1-10  month, from the date on which the tax should have been paid until

1-11  the date of payment.

1-12      Sec. 2.  NRS 680B.040 is hereby amended to read as follows:

1-13      680B.040  1.  Every insured in this state who procures or

1-14  causes to be procured or continues or renews insurance in an

1-15  unauthorized alien or foreign insurer, or any self-insurer in this state

1-16  who so procures or continues excess loss, catastrophe or other

1-17  insurance, upon a subject of insurance resident, located or to be

2-1  performed within this state, other than insurance procured through a

2-2  surplus line broker pursuant to chapter 685A of NRS or exempted

2-3  from that chapter, shall within 30 days after the date such insurance

2-4  was so procured, continued or renewed, file a written report with the

2-5  Department of Taxation on forms prescribed by the Executive

2-6  Director of the Department of Taxation in cooperation with the

2-7  Commissioner and furnished to such an insured upon request. The

2-8  report must show:

2-9  (a) The name and address of the insured or insureds.

2-10      (b) The name and address of the insurer.

2-11      (c) The subject of the insurance.

2-12      (d) A general description of the coverage.

2-13      (e) The premium currently charged therefor.

2-14      (f) Such additional pertinent information as is reasonably

2-15  requested by the Commissioner or the Executive Director of the

2-16  Department of Taxation.

2-17  If any such insurance covers also a subject of insurance resident,

2-18  located or to be performed outside of this state, for the purposes of

2-19  this section a proper pro rata portion of the entire premium payable

2-20  for all such insurance must be allocated as to the subjects of

2-21  insurance resident, located or to be performed in this state.

2-22      2.  Any insurance in an unauthorized insurer procured through

2-23  negotiations or an application in whole or in part occurring or made

2-24  within or from within this state, or for which premiums in whole or

2-25  in part are remitted directly or indirectly from within this state, shall

2-26  be deemed to be insurance procured or continued or renewed in this

2-27  state within the intent of subsection 1.

2-28      3.  For the general support of the government of this state ,

2-29  there is levied upon the obligation, chose in action or right

2-30  represented by the premium charged or payable for such insurance a

2-31  tax at the rate prescribed in NRS 680B.027. The insured shall

2-32  withhold the amount of the tax from the amount of premium

2-33  charged by and otherwise payable to the insurer for such insurance,

2-34  and within 30 days after the insurance was so procured, continued or

2-35  renewed, and coincidentally with the filing of the report provided

2-36  for in subsection 1, the insured shall pay the amount of the tax to the

2-37  State Treasurer through the Department of Taxation.

2-38      4.  If the insured fails to withhold from the premium the amount

2-39  of tax levied in this section, the insured is liable for the amount of

2-40  the tax and shall pay it to the Department of Taxation within the

2-41  time stated in subsection 3.

2-42      5.  If the insured fails to pay the tax imposed by this section, the

2-43  insured shall in addition to any other applicable penalty pay a

2-44  penalty of not more than 10 percent of the amount of the tax which

2-45  is owed, as determined by the Department of Taxation, in addition

3-1  to the tax, plus interest at the rate of [1.5] 1 percent per month, or

3-2  fraction of a month, from the date on which the tax should have

3-3  been paid until the date of payment.

3-4  6.  The tax is collectible from the insured by civil action

3-5  brought by the Department of Taxation, and by the seizure, distraint

3-6  and sale of any property of the insured situated in this state.

3-7  7.  This section does not abrogate or modify any other provision

3-8  of this Code.

3-9  8.  This section does not apply to life or disability insurances.

3-10      9.  The provisions of this section do not prohibit the

3-11  procurement of insurance from an unauthorized alien or foreign

3-12  insurer by a person in accordance with the requirements of

3-13  subsection 9 of NRS 680A.070.

3-14      10.  The Department of Taxation shall report to the

3-15  Commissioner concerning independently procured insurance

3-16  transactions reported to the Department of Taxation pursuant to this

3-17  section.

3-18      Sec. 3.  This act becomes effective on January 1, 2004.

 

3-19  H