Senate Bill No. 353–Senator Rawson

 

CHAPTER..........

 

AN ACT relating to taxes on retail sales; clarifying the requirements for determining whether a charitable organization qualifies for an exemption from such taxes; 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 372.3261 is hereby amended to read as

follows:

    372.3261  1.  For the purposes of NRS 372.326, an

organization is created for religious, charitable or educational

purposes if it complies with the provisions of this section.

    2.  An organization is created for religious purposes if:

    (a) It complies with the requirements set forth in subsection 5;

and

    (b) The sole or primary purpose of the organization is the

operation of a church, synagogue or other place of religious worship

at which nonprofit religious services and activities are regularly

conducted. Such an organization includes, without limitation, an

integrated auxiliary or affiliate of the organization, men’s, women’s

or youth groups established by the organization, a school or mission

society operated by the organization, an organization of local units

of a church and a convention or association of churches.

    3.  An organization is created for charitable purposes if:

    (a) It complies with the requirements set forth in subsection 5;

    (b) The sole or primary purpose of the organization is to:

        (1) Advance a public purpose, donate or render gratuitously

or at a reduced rate a substantial portion of its services to the

persons who are the subjects of its charitable services, and benefit a

substantial and indefinite class of persons who are the legitimate

subjects of charity; [or]

        (2) Provide services that are otherwise required to be

provided by a local government, this state or the Federal

Government; [and] or

        (3) Operate a hospital or medical facility licensed pursuant

to chapter 449 or 450 of NRS; and

    (c) The organization is operating in this state.

    4.  An organization is created for educational purposes if:

    (a) It complies with the requirements set forth in subsection 5;

and

    (b) The sole or primary purpose of the organization is to:

        (1) Provide athletic, cultural or social activities for children;

        (2) Provide displays or performances of the visual or

performing arts to members of the general public;

        (3) Provide instruction and disseminate information on

subjects beneficial to the community;

        (4) Operate a school, college or university located in this

state that conducts regular classes and provides courses of study

required for accreditation or licensing by the State Board of

Education or the Commission on Postsecondary Education, or for

membership in the Northwest Association of Schools and Colleges;

        (5) Serve as a local or state apprenticeship committee to

advance programs of apprenticeship in this state; or

        (6) Sponsor programs of apprenticeship in this state through

a trust created pursuant to 29 U.S.C. § 186.

    5.  In addition to the requirements set forth in subsection 2, 3 or

4, an organization is created for religious, charitable or educational

purposes if:

    (a) No part of the net earnings of any such organization inures to

the benefit of a private shareholder, individual or entity;

    (b) The business of the organization is not conducted for profit;

    (c) No substantial part of the business of the organization is

devoted to the advocacy of any political principle or the defeat or

passage of any state or federal legislation;

    (d) The organization does not participate or intervene in any

political campaign on behalf of or in opposition to any candidate for

public office; and

    (e) Any property sold to the organization for which an

exemption is claimed is used by the organization in this state in

furtherance of the religious, charitable or educational purposes of

the organization.

    Sec. 2.  NRS 374.3306 is hereby amended to read as follows:

    374.3306  1.  For the purposes of NRS 374.3305, an

organization is created for religious, charitable or educational

purposes if it complies with the provisions of this section.

    2.  An organization is created for religious purposes if:

    (a) It complies with the requirements set forth in subsection 5;

and

    (b) The sole or primary purpose of the organization is the

operation of a church, synagogue or other place of religious worship

at which nonprofit religious services and activities are regularly

conducted. Such an organization includes, without limitation, an

integrated auxiliary or affiliate of the organization, men’s, women’s

or youth groups established by the organization, a school or mission

society operated by the organization, an organization of local units

of a church and a convention or association of churches.

    3.  An organization is created for charitable purposes if:

    (a) It complies with the requirements set forth in subsection 5;

    (b) The sole or primary purpose of the organization is to:

        (1) Advance a public purpose, donate or render gratuitously

or at a reduced rate a substantial portion of its services to the

persons who are the subjects of its charitable services, and benefit a

substantial and indefinite class of persons who are the legitimate

subjects of charity; [or]

        (2) Provide services that are otherwise required to be

provided by a local government, this state or the Federal

Government; [and] or

        (3) Deliver health care through a hospital or medical

facility licensed pursuant to chapter 449 or 450 of NRS; and

    (c) The organization is operating in this state.

    4.  An organization is created for educational purposes if:

    (a) It complies with the requirements set forth in subsection 5;

and

    (b) The sole or primary purpose of the organization is to:

        (1) Provide athletic, cultural or social activities for children;

        (2) Provide displays or performances of the visual or

performing arts to members of the general public;

        (3) Provide instruction and disseminate information on

subjects beneficial to the community;

        (4) Operate a school, college or university located in this

state that conducts regular classes and provides courses of study

required for accreditation or licensing by the State Board of

Education or the Commission on Postsecondary Education, or for

membership in the Northwest Association of Schools and Colleges;

        (5) Serve as a local or state apprenticeship committee to

advance programs of apprenticeship in this state; or

        (6) Sponsor programs of apprenticeship in this state through

a trust created pursuant to 29 U.S.C. § 186.

    5.  In addition to the requirements set forth in subsection 2, 3 or

4, an organization is created for religious, charitable or educational

purposes if:

    (a) No part of the net earnings of any such organization inures to

the benefit of a private shareholder, individual or entity;

    (b) The business of the organization is not conducted for profit;

    (c) No substantial part of the business of the organization is

devoted to the advocacy of any political principle or the defeat or

passage of any state or federal legislation;

    (d) The organization does not participate or intervene in any

political campaign on behalf of or in opposition to any candidate for

public office; and

    (e) Any property sold to the organization for which an

exemption is claimed is used by the organization in this state in

furtherance of the religious, charitable or educational purposes of

the organization.

    Sec. 3.  This act becomes effective on July 1, 2003.

 

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