SB471

requires two-thirds majority vote (§ 1)

S.B. 471

Senate Bill No. 471–Committee on Taxation

(On Behalf of the Department of Motor Vehicles)

March 24, 2003

____________

Referred to Committee on Taxation

SUMMARY—Revises provisions relating to certain taxes and fees regarding petroleum products and fuels for motor vehicles and aircraft. (BDR 32‑584)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State: No.

EXPLANATION – Matter in bolded italics is new; matter between brackets [~~omitted material]~~ is material to be omitted.

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

AN ACT relating to taxation; revising certain provisions for the collection and administration of certain taxes and fees regarding petroleum products and fuels for motor vehicles and aircraft; making certain changes regarding the licensing, rights and responsibilities of certain dealers, suppliers, exporters, transporters and users of such fuels; providing a penalty; 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 360A.040 is hereby amended to read as

1-2 follows:

1-3 360A.040 1. If a check submitted to the Department for

1-4 payment of any tax or fee required by chapter 365, 366 or 373 of

1-5 NRS or NRS 590.120 or 590.840 is dishonored upon presentment

1-6 for payment, the Department may [require] :

1-7 (a) Charge an additional fee of $25 for handling the check;

1-8 and

1-9 (b) Require that any future payments be made by cashier’s

1-10 check, traveler’s check, money order or cash.

2-1 2. If a check is submitted to the Department for payment of a

2-2 tax or fee required by chapter 365, 366 or 373 of NRS or NRS

2-3 590.120 or 590.840 on or before the date the tax or fee is due, but

2-4 is afterward dishonored upon presentment for payment, the

2-5 submission of the check shall be deemed not to constitute timely

2-6 payment of the tax or fee.

2-7 Sec. 2. NRS 360A.050 is hereby amended to read as follows:

2-8 360A.050 Except [as otherwise provided in] for any payments

2-9 authorized pursuant to NRS 365.328, 365.340 and 366.397[,] and

2-10 section 31 of this act, if the Department grants an extension of time

2-11 for paying any amount required to be paid pursuant to chapter 365,

2-12 366 or 373 of NRS or NRS 590.120 or 590.840, a person who pays

2-13 the amount within the period for which the extension is granted shall

2-14 pay, in addition to the amount owing, interest at the rate of 1 percent

2-15 per month from the date the amount would have been due without

2-16 the extension until the date of payment.

2-17 Sec. 3. NRS 360A.100 is hereby amended to read as follows:

2-18 360A.100 Except as otherwise provided in NRS 366.395:

2-19 1. If a person fails to file a return or the Department is not

2-20 satisfied with the return of any tax or fee required to be paid to the

2-21 Department pursuant to chapter 365, 366 or 373 of NRS or NRS

2-22 590.120 or 590.840, the Department may determine the amount

2-23 required to be paid upon the basis of:

2-24 (a) The facts contained in the return;

2-25 (b) Any information that is in the possession of the Department

2-26 or may come into its possession; or

2-27 (c) Reasonable estimates of the amount.

2-28 2. One or more deficiency determinations may be made with

2-29 respect to the amount due for one or more periods.

2-30 3. In making its determination of the amount required to be

2-31 paid, the Department shall impose a penalty and interest on the

2-32 amount of tax or fee determined to be due, calculated at the rate and

2-33 in the manner set forth in NRS 360A.060.

2-34 4. [The Department shall impose a penalty of 10 percent in

2-35 addition to the amount of a determination that is made if a person

2-36 fails to file a return with the Department.

2-37 5.] If a business is discontinued, a determination may be made

2-38 at any time thereafter within the period prescribed in NRS 360A.150

2-39 concerning liability arising out of that business, irrespective of

2-40 whether the determination is issued before the due date of the

2-41 liability.

2-42 Sec. 4. NRS 360A.150 is hereby amended to read as follows:

2-43 360A.150 1. Except as otherwise provided in subsections 2, 3

2-44 and 4, each notice of a deficiency determination issued by the

2-45 Department must be personally served or mailed within [3] 4 years

3-1 after the last day of the month following the period for which the

3-2 amount is proposed to be determined or within [3] 4 years after the

3-3 return is filed, whichever period expires later.

3-4 2. In the case of a failure to make a return or a claim for an

3-5 additional amount, each notice of determination must be mailed or

3-6 personally served within 8 years after the last day of the month

3-7 following the period for which the amount is proposed to be

3-8 determined.

3-9 3. If, before the expiration of the time prescribed in this section

3-10 for the mailing of a notice of determination, the taxpayer has signed

3-11 a waiver consenting to the mailing of the notice after that time, the

3-12 notice may be mailed at any time before the expiration of the period

3-13 agreed upon. The period so agreed upon may be extended by

3-14 subsequent agreements in writing if each agreement is made before

3-15 the expiration of the period previously agreed upon.

3-16 4. This section does not apply to cases of fraud or the

3-17 intentional evasion of a provision of chapter 365, 366 or 373 of

3-18 NRS or NRS 590.120 or 590.840, or any regulation of the

3-19 Department adopted pursuant thereto.

3-20 Sec. 5. NRS 360A.160 is hereby amended to read as follows:

3-21 360A.160 1. Any person against whom a deficiency

3-22 determination is made who believes that the determination is

3-23 incorrect may petition the Department for a redetermination within

3-24 30 days after being served with the notice of determination.

3-25 2. If a petition for redetermination is not filed within the period

3-26 prescribed in subsection 1, the person is deemed to have waived the

3-27 right to contest the determination or recover a refund.

3-28 3. For good cause shown, the Department may extend the time

3-29 within which a petition for redetermination must be filed. Any

3-30 request for an extension of time pursuant to this subsection must

3-31 be filed with the Department within 30 days after service of the

3-32 notice of determination.

3-33 Sec. 6. NRS 360A.170 is hereby amended to read as follows:

3-34 360A.170 A petition for redetermination must:

3-35 1. Set forth the amount of the determination that is contested

3-36 and the grounds for requesting a redetermination; and

3-37 2. [If an oral hearing is not requested, be] Be accompanied by

3-38 [the] :

3-39 (a) Payment of the amount of the determination that is not

3-40 contested; and

3-41 (b) Any books and records and other evidence which support the

3-42 petition.

4-1 Sec. 7. Chapter 365 of NRS is hereby amended by adding

4-2 thereto the provisions set forth as sections 8 to 11, inclusive, of this

4-3 act.

4-4 Sec. 8. “Transporter” means a person, except a supplier or

4-5 an exporter licensed pursuant to this chapter, who transports

4-6 motor vehicle fuel or fuel for jet or turbine-powered aircraft in

4-7 interstate commerce to or from any point within this state, or

4-8 solely within this state.

4-9 Sec. 9. Any applicant whose application for a license as a

4-10 dealer, supplier, exporter or transporter has been denied may

4-11 petition the Department for a hearing. The Department shall:

4-12 1. Grant the applicant a hearing.

4-13 2. Provide to the applicant, not less than 10 days before the

4-14 hearing, written notice of the time and place of the hearing.

4-15 Sec. 10. A license issued pursuant to this chapter:

4-16 1. Is valid until suspended, revoked or cancelled.

4-17 2. Is not transferable.

4-18 Sec. 11. If any person ceases to be a dealer, supplier,

4-19 exporter or transporter within this state by reason of the

4-20 discontinuance, sale or transfer of his business, he shall:

4-21 1. Notify the Department in writing at the time the

4-22 discontinuance, sale or transfer takes effect. The notice must give

4-23 the date of the discontinuance, sale or transfer, and the name and

4-24 address of any purchaser or transferee.

4-25 2. Surrender to the Department the license issued to him

4-26 pursuant to this chapter.

4-27 3. If he is:

4-28 (a) A dealer, file a monthly tax return and pay all taxes,

4-29 interest and penalties required pursuant to chapter 360A of NRS

4-30 and NRS 365.170 and 365.203 on or before the last day of the

4-31 month following the month of the discontinuance, sale or transfer

4-32 of the business.

4-33 (b) A supplier, file a monthly tax return and pay all taxes,

4-34 interest and penalties required pursuant to chapter 360A of NRS

4-35 and NRS 365.175 to 365.192, inclusive, on or before the last day of

4-36 the month following the month of the discontinuance, sale or

4-37 transfer of the business.

4-38 (c) An exporter, file the report required pursuant to NRS

4-39 365.515 on or before the last day of the month following the

4-40 month of the discontinuance, sale or transfer of the business.

4-41 (d) A transporter, file the report required pursuant to NRS

4-42 365.520 within 25 days after the end of the month of the

4-43 discontinuance, sale or transfer of the business.

5-1 Sec. 12. NRS 365.010 is hereby amended to read as follows:

5-2 365.010 As used in this chapter, unless the context otherwise

5-3 requires, the words and terms defined in NRS 365.015 to 365.088,

5-4 inclusive, and section 8 of this act have the meanings ascribed to

5-5 them in those sections.

5-6 Sec. 13. NRS 365.130 is hereby amended to read as follows:

5-7 365.130 1. The Department or its authorized agents may

5-8 make any audit, examination or inquiry of and concerning the

5-9 records, stocks, facilities, equipment and transactions of dealers,

5-10 suppliers, retailers [of petroleum products and carriers] , exporters

5-11 and transporters of petroleum products, and such other

5-12 investigations as it deems necessary to carry out the provisions of

5-13 this chapter.

5-14 2. If any investigation discloses that any report or any payment

5-15 has been incorrect, the Department may make such changes in

5-16 subsequent reports and payments as may be necessary to correct the

5-17 error so disclosed.

5-18 Sec. 14. NRS 365.230 is hereby amended to read as follows:

5-19 365.230 1. The provisions of this chapter requiring the

5-20 payment of excise taxes do not apply to:

5-21 (a) Motor vehicle fuel, other than aviation fuel, sold by a

5-22 [suppliers;] supplier; or

5-23 (b) Aviation fuel or fuel for jet or turbine-powered aircraft sold

5-24 by a dealer,

5-25 in individual quantities of 500 gallons or less for export to another

5-26 state or country by the purchaser other than in the supply tank of a

5-27 motor vehicle or an aircraft, if the dealer or supplier is licensed in

5-28 the state of destination to collect and remit the applicable destination

5-29 state taxes thereon.

5-30 2. In support of any exemption from taxes on account of sales

5-31 of motor vehicle fuel or fuel for jet or turbine-powered aircraft in

5-32 individual quantities of 500 gallons or less for export by the

5-33 purchaser, the dealer or supplier who sold the fuel to the purchaser

5-34 shall retain in his files for at least [3] 4 years an export certificate

5-35 executed by the purchaser in such form and containing such

5-36 information as is prescribed by the Department. This certificate is

5-37 prima facie evidence of the exportation of the motor vehicle fuel or

5-38 fuel for jet or turbine-powered aircraft to which it applies only if

5-39 accepted by the dealer or supplier in good faith. If the purchaser

5-40 fails to export any part of the motor vehicle fuel or fuel for jet or

5-41 turbine-powered aircraft covered by the certificate, he shall remit to

5-42 the Department immediately thereafter the applicable amount in

5-43 taxes due on the part not exported. Upon failure to do so the

5-44 purchaser is subject to all penalties in this chapter for delinquency in

5-45 payment of taxes.

6-1 Sec. 15. NRS 365.270 is hereby amended to read as follows:

6-2 365.270 [1. After April 1, 1935, it] It is unlawful for any

6-3 person to be [a] :

6-4 1. A dealer without holding a license [of] as a dealer as

6-5 provided for in this chapter.

6-6 2. [After January 1, 2002, it is unlawful for any person to be a]

6-7 A supplier without holding a license [of] as a supplier as provided

6-8 for in this chapter.

6-9 3. An exporter without holding a license as an exporter as

6-10 provided for in this chapter.

6-11 4. A transporter without holding a license as a transporter as

6-12 provided for in this chapter.

6-13 Sec. 16. NRS 365.280 is hereby amended to read as follows:

6-14 365.280 Before becoming a dealer , [or] supplier, exporter or

6-15 transporter, a person shall apply to the Department, on forms to be

6-16 prescribed and furnished by the Department, for a license

6-17 authorizing the applicant to engage in business as a dealer [or

6-18 supplier.] , supplier, exporter or transporter.

6-19 Sec. 17. NRS 365.290 is hereby amended to read as follows:

6-20 365.290 1. Before granting any application for a license as a

6-21 dealer or supplier, the Department shall require the applicant to file

6-22 with the Department a bond executed by the applicant as principal,

6-23 and by a corporation qualified under the laws of this state as surety,

6-24 payable to this state and conditioned upon the faithful performance

6-25 of all the requirements of this chapter and upon the punctual

6-26 payment of all excise taxes, penalties and other obligations of the

6-27 applicant as a dealer or supplier.

6-28 2. The total amount of the bond or bonds required of any dealer

6-29 or supplier must be fixed by the Department at three times the

6-30 estimated maximum monthly tax, determined in such a manner as

6-31 the Department deems proper, or $1,000, whichever is greater. If the

6-32 Department determines that a person is habitually delinquent in

6-33 the payment of amounts due pursuant to this chapter, it may increase

6-34 the amount of his security to not more than five times the estimated

6-35 maximum monthly tax. When cash or a savings certificate,

6-36 certificate of deposit or investment certificate is used, the amount

6-37 required must be rounded off to the next larger integral multiple of

6-38 $100, within the same upper limit.

6-39 3. The Department may increase or decrease the amount of

6-40 security required by this section subject to the limitations provided

6-41 in this section.

6-42 4. No recovery on any bond, nor the execution of any new

6-43 bond, nor the revocation, cancellation or suspension of any license

6-44 affects the validity of any bond.

7-1 5. In lieu of any bond or bonds, a dealer or supplier may

7-2 deposit with the Department, under such terms and conditions as the

7-3 Department may prescribe, a like amount of lawful money of the

7-4 United States or any other form of security authorized by NRS

7-5 100.065. If security is provided in the form of a savings certificate,

7-6 certificate of deposit or investment certificate, the certificate must

7-7 state that the amount is unavailable for withdrawal except upon

7-8 order of the Department.

7-9 Sec. 18. NRS 365.300 is hereby amended to read as follows:

7-10 365.300 1. [Upon approval of the application] Except as

7-11 otherwise provided in subsection 2, the Department shall , upon

7-12 receipt of:

7-13 (a) The application and bond in proper form, issue to the

7-14 applicant a license as a dealer or supplier . [:

7-15 (a) An identification number; and

7-16 (b) A nonassignable license with a duplicate copy for each place

7-17 of business of the dealer or supplier in this state.

7-18 2. Each license and all duplicates must bear the identification

7-19 number of the dealer or supplier.

7-20 3. The license continues in force until cancelled, suspended or

7-21 revoked.

7-22 4. The dealer or supplier shall have his identification number

7-23 printed on each of his delivery tickets.]

7-24 (b) The application in proper form, issue to the applicant a

7-25 license as an exporter or a transporter.

7-26 2. The Department may refuse to issue a license pursuant this

7-27 section to any person:

7-28 (a) Who formerly held a license issued pursuant to this chapter

7-29 or a similar license of any other state, the District of Columbia, the

7-30 United States, a territory or possession of the United States or any

7-31 foreign country which, before the time of filing the application,

7-32 has been revoked for cause;

7-33 (b) Who applies as a subterfuge for the real party in interest

7-34 whose license, before the time of filing the application, has been

7-35 revoked for cause;

7-36 (c) Who, if he is a dealer or supplier, neglects or refuses to

7-37 furnish a bond as required by this chapter;

7-38 (d) Who is in default in the payment of a tax on motor vehicle

7-39 fuel or fuel for jet or turbine-powered aircraft in this state, any

7-40 other state, the District of Columbia, the United States, a territory

7-41 or possession of the United States or any foreign country;

7-42 (e) Who has failed to comply with any provision of this

7-43 chapter; or

7-44 (f) Upon other sufficient cause being shown.

8-1 Sec. 19. NRS 365.310 is hereby amended to read as follows:

8-2 365.310 1. The Department may suspend, cancel or revoke

8-3 the license of any dealer , [or] supplier , exporter or transporter

8-4 refusing or neglecting to comply with the provisions of this chapter.

8-5 2. If a dealer or supplier becomes delinquent in the payment of

8-6 excise taxes as prescribed by this chapter to the extent that his

8-7 liability exceeds the total amount of bond or bonds furnished by the

8-8 dealer or supplier, the Department shall suspend his license

8-9 immediately.

8-10 3. Before revoking or cancelling any license issued under this

8-11 chapter, the Department shall send a notice by registered or certified

8-12 mail to the dealer , [or] supplier , exporter or transporter at his last

8-13 known address. The notice must order the dealer , [or] supplier ,

8-14 exporter or transporter to show cause why his license should not be

8-15 revoked by appearing before the Department at Carson City,

8-16 Nevada, or such other place in this state as may be designated by the

8-17 Department, at a time not less than 10 days after the mailing of the

8-18 notice. The Department shall allow the dealer , [or] supplier ,

8-19 exporter or transporter an opportunity to be heard in pursuance of

8-20 the notice, and thereafter the Department may revoke or cancel his

8-21 license.

8-22 Sec. 20. NRS 365.330 is hereby amended to read as follows:

8-23 365.330 1. The excise taxes prescribed in this chapter must

8-24 be paid on or before the last day of each calendar month to the

8-25 Department. The Department shall deliver the taxes to the State

8-26 Treasurer, who shall provide to the dealer, supplier or user a receipt

8-27 for the payment of the taxes.

8-28 2. Except as otherwise provided in subsection 3:

8-29 (a) From the tax found to be due upon any statement submitted

8-30 by a dealer pursuant to NRS 365.170 , [or a user pursuant to NRS

8-31 365.200,] the dealer [or user] may retain an amount equal to 2

8-32 percent of the amount of the tax collected to cover the dealer’s [or

8-33 user’s] costs of collection of the tax and of compliance with this

8-34 chapter , and the dealer’s [or user’s] handling losses occasioned by

8-35 evaporation, spillage or other similar causes.

8-36 [3.] (b) Each supplier may retain an amount equal to 2 percent

8-37 of the amount of the tax collected by the supplier [as a fee for

8-38 making the collection.] to cover the supplier’s costs of collection of

8-39 the tax and of compliance with this chapter, and the supplier’s

8-40 handling losses occasioned by evaporation, spillage or other

8-41 similar causes.

8-42 3. A dealer or supplier who fails to submit a tax return when

8-43 due pursuant to this chapter or fails to pay the tax when due

8-44 pursuant to this chapter is not entitled to retain any of the amount

9-1 authorized pursuant to subsection 2 for any month for which a tax

9-2 return is not filed when due or a payment is not made when due.

9-3 Sec. 21. NRS 365.340 is hereby amended to read as follows:

9-4 365.340 1. If the amount of any excise tax for any month is

9-5 not paid to the State on or before the last day of the next month, it

9-6 becomes delinquent at the close of business on that day. A dealer,

9-7 supplier or user may have up to 15 additional days to make the

9-8 payment if he makes written application to the Department on or

9-9 before the day the payment is due and the Department finds good

9-10 cause for the extension.

9-11 2. The proceeds from any penalty levied for the delinquent

9-12 payment of an excise tax must be [allocated proportionately to]

9-13 deposited with the State Treasurer to the credit of the State

9-14 Highway Fund . [, the county gas tax funds, the Account for Taxes

9-15 on Aviation Fuel and the Account for Taxes on Fuel for Jet or

9-16 Turbine-Powered Aircraft by the Department.]

9-17 Sec. 22. NRS 365.380 is hereby amended to read as follows:

9-18 365.380 1. A claimant for refund must present to the

9-19 Department a refund claim form accompanied by the original

9-20 invoices showing the purchase. The refund forms must state the total

9-21 amount of fuel so purchased and used otherwise than for the

9-22 propulsion of motor vehicles or jet or turbine-powered aircraft and

9-23 the manner and the equipment in which the claimant has used the

9-24 fuel.

9-25 2. A claimant for refund of tax on motor vehicle fuel or fuel for

9-26 jet or turbine-powered aircraft purchased and exported from this

9-27 state shall execute and furnish to the Department a certificate of

9-28 exportation on such form as may be prescribed by the Department.

9-29 3. An invoice to qualify for refund must contain at least:

9-30 (a) The number of gallons of fuel purchased;

9-31 (b) The price per gallon;

9-32 (c) The total purchase price of the fuel; and

9-33 (d) Such other information as may be prescribed by the

9-34 Department.

9-35 4. The signature on the refund claim form subjects the claimant

9-36 to the charge of perjury for false statements contained on the refund

9-37 application.

9-38 5. Daily records must be maintained and preserved for a period

9-39 of [3] 4 years for audit purposes of all motor vehicle fuel and fuel

9-40 for jet or turbine-powered aircraft used. The record must set forth:

9-41 (a) The piece of equipment being supplied with the fuel;

9-42 (b) The number of gallons of fuel used in each fill; and

9-43 (c) The purpose for which the piece of equipment will be

9-44 used.

10-1 The motor vehicle fuel fills must be further classified according to

10-2 whether the motor vehicle fuel was used on or off the highway.

10-3 6. If a motor vehicle with auxiliary equipment consumes motor

10-4 vehicle fuel and there is no auxiliary motor or separate tank for the

10-5 motor, a refund of 20 percent of the tax paid on the fuel used in the

10-6 vehicle may be claimed without the necessity of furnishing proof of

10-7 the amount of fuel consumed in the operation of the auxiliary

10-8 equipment. The Department shall, by regulation, establish uniform

10-9 refund provisions for the respective classes of users who claim

10-10 refunds of more than 20 percent of the tax paid.

10-11 7. No person may be granted a refund of motor vehicle fuel

10-12 taxes for off-highway use when the consumption takes place on

10-13 highways constructed and maintained by public funds, on federal

10-14 proprietary lands or reservations where the claimant has no

10-15 ownership or control over the land or highways, except when the

10-16 person is under a contractual relationship with the Federal

10-17 Government or one of its agencies and is engaged in the

10-18 performance of his duties pursuant to that relationship. Employment

10-19 of a person by the Federal Government or any of its agencies does

10-20 not constitute a contractual relationship for the purpose of this

10-21 subsection.

10-22 8. If, in the opinion of the Department, it would be beneficial

10-23 to the State for a refund claimant to become a licensed dealer or

10-24 supplier, the claimant may, at the option of the Department, be

10-25 required to become a licensed dealer or supplier rather than a refund

10-26 claimant unless the claimant chooses to claim refunds at the tax rate,

10-27 less 2 percent.

10-28 Sec. 23. NRS 365.390 is hereby amended to read as follows:

10-29 365.390 Upon the presentation of the invoices, written

10-30 statements, tax exemption certificates or exportation certificates

10-31 required pursuant to this chapter, the Department shall cause to be

10-32 repaid to the claimant from the taxes collected under this chapter an

10-33 amount equal to the taxes paid by the claimant less the percentage

10-34 allowed the dealer[, supplier or user] or supplier pursuant to

10-35 NRS 365.330.

10-36 Sec. 24. NRS 365.420 is hereby amended to read as follows:

10-37 365.420 [Except as provided in NRS 360.235, all:]

10-38 1. Applications for refund based upon exportation of motor

10-39 vehicle fuel or fuel for jet or turbine-powered aircraft from this state

10-40 must be filed with the Department within 3 months [from] after the

10-41 date of exportation.

10-42 2. Other applications, together with the necessary supporting

10-43 evidence, must be filed with the Department within [6 months from]

10-44 12 months after the date of purchase.

11-1 3. Rights to refunds are forfeited if applications are not filed

11-2 with the Department within the times prescribed in this section.

11-3 Sec. 25. NRS 365.500 is hereby amended to read as follows:

11-4 365.500 1. Every dealer , [and] supplier , exporter and

11-5 transporter shall cause to be kept a true record, in such form as may

11-6 be prescribed or approved by the Department, of all stocks of motor

11-7 vehicle fuel and fuel for jet or turbine-powered aircraft and of other

11-8 inflammable or combustible liquids, and of all manufacture,

11-9 refining, compounding, blending, purchases, receipts, exportations,

11-10 transportations, use, sales and distribution thereof.

11-11 2. The records are subject to inspection at all times within

11-12 business hours by the Department or its authorized agents, and must

11-13 remain available for inspection for a period of [3] 4 years after the

11-14 date of any entry therein.

11-15 3. If a dealer [or suppliers] , supplier, exporter or transporter

11-16 wishes to keep proper books and records pertaining to business done

11-17 in Nevada elsewhere than within the State of Nevada for inspection

11-18 as provided in this section, he must pay a fee for the examination in

11-19 an amount per day equal to the amount set by law for out-of-state

11-20 travel for each day or fraction thereof during which the examiner is

11-21 actually engaged in examining [the books of the dealer or supplier,]

11-22 those books and records, plus the actual expenses of the examiner

11-23 during the time that the examiner is absent from [Carson City,

11-24 Nevada,] this state for the purpose of making the examination, but

11-25 the time must not exceed 1 day going to and 1 day coming from the

11-26 place where the examination is to be made in addition to the number

11-27 of days or fractions thereof the examiner is actually engaged in

11-28 auditing [the dealer’s or supplier’s books.] those books and records.

11-29 Not more than two such examinations may be charged against any

11-30 dealer , [or] supplier , exporter or transporter in any year.

11-31 4. Any money received must be deposited by the Department

11-32 to the credit of the fund or operating account from which the

11-33 expenditures for the examination were paid.

11-34 5. Upon the demand of the Department, each dealer , [or]

11-35 supplier , exporter or transporter shall furnish a statement showing

11-36 the contents of the records to such extent and in such detail and form

11-37 as the Department may require.

11-38 Sec. 26. NRS 365.510 is hereby amended to read as follows:

11-39 365.510 1. Every retailer shall maintain and keep within the

11-40 State for a period of [3] 4 years a true record of motor vehicle fuel

11-41 or fuel for jet or turbine-powered aircraft received, of the price

11-42 thereof and the name of the person who supplies the fuel, together

11-43 with delivery tickets, invoices and such other records as the

11-44 Department may require.

12-1 2. Such records are subject to inspection by the Department or

12-2 its authorized agents at all times within business hours.

12-3 Sec. 27. NRS 365.520 is hereby amended to read as follows:

12-4 365.520 1. Every [carrier, whether common, contract or

12-5 private,] transporter, except a dealer licensed under this chapter or a

12-6 wholesale distributor transporting the products of a dealer licensed

12-7 under this chapter, who transports motor vehicle fuel or fuel for jet

12-8 or turbine-powered aircraft in interstate commerce to or from any

12-9 point within [the State of Nevada] this state, or solely within this

12-10 state, shall report all of those deliveries to the Department . [all

12-11 deliveries so made.

12-12 2. Such]

12-13 2. A report must [cover the period of] be made for each

12-14 calendar month and must be filed within 25 days after the end of

12-15 [that month.] the month for which the report is made. The report

12-16 must show:

12-17 (a) The name and address of every consignor and consignee and

12-18 of every person other than the designated consignee to whom

12-19 delivery has actually been made.

12-20 (b) The date of every delivery.

12-21 (c) The amount of every delivery in gallons.

12-22 (d) Such other information as the Department may require.

12-23 [3. The Department or its authorized agents may examine the

12-24 books and records of any carrier during business hours to determine

12-25 if the provisions of this section have been or are being complied

12-26 with.]

12-27 Sec. 28. NRS 365.570 is hereby amended to read as follows:

12-28 365.570 1. It is unlawful for any person:

12-29 (a) To refuse or neglect to make any statement, report or return

12-30 required by the provisions of this chapter;

12-31 (b) Knowingly to make, or aid or assist any other person in

12-32 making, a false statement in a report to the Department or in

12-33 connection with an application for refund of any tax;

12-34 (c) Knowingly to collect or attempt to collect or cause to be

12-35 repaid to him or to any person, either directly or indirectly, any

12-36 refund of any tax without being entitled to the same;

12-37 (d) To engage in business in this state as a dealer , [or] supplier

12-38 or exporter or to act in this state as a [carrier of motor vehicle fuel,

12-39 fuel for jet or turbine-powered aircraft, special fuel or other

12-40 inflammable or combustible liquids] transporter without being the

12-41 holder of an uncancelled license authorizing him to engage in [such]

12-42 that business or to act in [such] that capacity;

12-43 (e) To sell any motor vehicle fuel or fuel for jet or turbine-

12-44 powered aircraft upon which the tax imposed by this chapter has not

13-1 been paid, purchased by or consigned to him by any person other

13-2 than a licensed dealer or supplier; or

13-3 (f) To act as an agent to sell any motor vehicle fuel or fuel for jet

13-4 or turbine-powered aircraft, obtained in any manner, upon which the

13-5 tax imposed by this chapter has not been paid.

13-6 2. Each day or part thereof during which any person engages in

13-7 business as a dealer , [or]supplier or exporter or acts as a

13-8 transporter without being the holder of an uncancelled license

13-9 authorizing him to engage in that business or to act in that

13-10 capacity constitutes a separate offense within the meaning of this

13-11 section.

13-12 Sec. 29. Chapter 366 of NRS is hereby amended by adding

13-13 thereto the provisions set forth as sections 30 and 31 of this act.

13-14 Sec. 30. “Special fuel transporter” means a person, except a

13-15 special fuel supplier or special fuel exporter licensed pursuant to

13-16 this chapter, who transports special fuel in interstate commerce to

13-17 or from any point within this state, or solely within this state.

13-18 Sec. 31. 1. If the amount of any excise tax for any

13-19 reporting period is not paid to the State on or before the day the

13-20 payment is due pursuant to this chapter, the payment becomes

13-21 delinquent at the close of business on that day. A special fuel

13-22 supplier, special fuel dealer or special fuel user may have up to 15

13-23 additional days to make the payment if he makes written

13-24 application to the Department on or before the day the payment is

13-25 due and the Department finds good cause for the extension.

13-26 2. The proceeds from any penalty levied for the delinquent

13-27 payment of an excise tax must be deposited with the State

13-28 Treasurer to the credit of the State Highway Fund.

13-29 Sec. 32. NRS 366.020 is hereby amended to read as follows:

13-30 366.020 As used in this chapter, unless the context otherwise

13-31 requires, the words and terms defined in NRS 366.025 to 366.100,

13-32 inclusive, and section 30 of this act have the meanings ascribed to

13-33 them in those sections.

13-34 Sec. 33. NRS 366.140 is hereby amended to read as follows:

13-35 366.140 1. Every special fuel supplier, special fuel dealer ,

13-36 special fuel exporter, special fuel transporter or special fuel user

13-37 and every other person transporting or storing special fuel in this

13-38 state shall keep such records, receipts, invoices and other pertinent

13-39 papers with respect thereto as the Department requires.

13-40 2. The records, receipts, invoices and other pertinent papers

13-41 used in the preparation of a report or return required pursuant to this

13-42 chapter must be preserved for 4 years after the report or return is

13-43 filed with the Department.

14-1 3. The records, receipts, invoices and other pertinent papers

14-2 must be available at all times during business hours to the

14-3 Department or its authorized agents.

14-4 Sec. 34. NRS 366.150 is hereby amended to read as follows:

14-5 366.150 1. The Department or its authorized agents may:

14-6 (a) Examine the books, papers, records and equipment of any

14-7 special fuel supplier, special fuel dealer, special fuel exporter,

14-8 special fuel transporter, special fuel user or any other person

14-9 transporting or storing special fuel ; [as defined in NRS 366.060;]

14-10 (b) Investigate the character of the disposition which any person

14-11 makes of special fuel; and

14-12 (c) Stop and inspect a motor vehicle that is using or transporting

14-13 special fuel,

14-14 to determine whether all excise taxes due pursuant to this chapter

14-15 are being properly reported and paid.

14-16 2. The fact that the books, papers, records and equipment

14-17 described in paragraph (a) of subsection 1 are not maintained in this

14-18 state at the time of demand does not cause the Department to lose

14-19 any right of examination pursuant to this chapter at the time and

14-20 place those books, papers, records and equipment become available.

14-21 3. If a special fuel supplier, special fuel dealer, special fuel

14-22 exporter, special fuel transporter or special fuel user wishes to

14-23 keep proper books and records pertaining to business done in

14-24 Nevada elsewhere than within the State of Nevada for inspection

14-25 as provided in this section, he must pay a fee for the examination

14-26 in an amount per day equal to the amount set by law for out-of-

14-27 state travel for each day or fraction thereof during which the

14-28 examiner is actually engaged in examining those books and

14-29 records, plus the actual expenses of the examiner during the time

14-30 that the examiner is absent from this state for the purpose of

14-31 making the examination, but the time must not exceed 1 day going

14-32 to and 1 day coming from the place where the examination is to be

14-33 made in addition to the number of days or fractions thereof the

14-34 examiner is actually engaged in auditing those books and records.

14-35 Not more than two such examinations may be charged against any

14-36 special fuel supplier, special fuel dealer, special fuel exporter,

14-37 special fuel transporter or special fuel user in any year.

14-38 4. Any money received must be deposited by the Department

14-39 to the credit of the fund or operating account from which the

14-40 expenditures for the examination were paid.

14-41 5. Upon the demand of the Department, each special fuel

14-42 supplier, special fuel dealer, special fuel exporter, special fuel

14-43 transporter or special fuel user shall furnish a statement showing

14-44 the contents of the records to such extent and in such detail and

14-45 form as the Department may require.

15-1 Sec. 35. NRS 366.160 is hereby amended to read as follows:

15-2 366.160 1. All records of mileage operated, origin and

15-3 destination points within this state, equipment operated in this state,

15-4 gallons or cubic feet consumed, and tax paid must at all reasonable

15-5 times be open to the public.

15-6 2. All supporting schedules, invoices and other pertinent papers

15-7 relative to the business affairs and operations of any special fuel

15-8 supplier, special fuel dealer , special fuel exporter, special fuel

15-9 transporter or special fuel user, and any information obtained by an

15-10 investigation of the records and equipment of any special fuel

15-11 supplier, special fuel dealer , special fuel exporter, special fuel

15-12 transporter or special fuel user, shall be deemed confidential and

15-13 must not be revealed to any person except as necessary to administer

15-14 this chapter or as otherwise provided by law.

15-15 Sec. 36. NRS 366.170 is hereby amended to read as follows:

15-16 366.170 The Department may, upon request from officials to

15-17 whom is entrusted the enforcement of the special fuel tax law of any

15-18 other state, the District of Columbia, the United States, its territories

15-19 or possessions, or any foreign country, forward to those officials any

15-20 information which it may have relative to the receipt, storage,

15-21 delivery, sale, use or other disposition of special fuel by any special

15-22 fuel supplier, special fuel [exporter,] dealer, special fuel [dealer]

15-23 exporter, special fuel transporter or special fuel user, if such other

15-24 state, district, territory or possession furnishes similar information to

15-25 this state.

15-26 Sec. 37. NRS 366.203 is hereby amended to read as follows:

15-27 366.203 1. Special fuel, other than compressed natural gas,

15-28 liquefied petroleum gas or kerosene, which is exempt from the tax

15-29 pursuant to subsection 3 or 4 of NRS 366.200 must be dyed before it

15-30 is removed for distribution from a rack. The dye added to the

15-31 exempt special fuel must be of the color and concentration required

15-32 by the regulations adopted by the Secretary of the Treasury pursuant

15-33 to 26 U.S.C. § 4082.

15-34 2. Except as otherwise provided in subsections 3 and 4, a

15-35 person shall not operate or maintain on any highway in this state a

15-36 motor vehicle which contains in the fuel tank of that vehicle special

15-37 fuel which has been dyed. A person who operates or maintains a

15-38 motor vehicle in violation of this subsection and the registered

15-39 owner of the motor vehicle are jointly and severally liable for any

15-40 taxes, penalties and interest payable to the Department.

15-41 3. A person who, pursuant to subsection 2, 3 or 4 of NRS

15-42 366.200 is exempt from the tax imposed by this chapter, may

15-43 operate or maintain a motor vehicle on a highway in this state which

15-44 contains in the fuel tank of that vehicle special fuel which has been

15-45 dyed.

16-1 4. A person may operate or maintain on a highway in this state

16-2 any special mobile equipment or farm equipment that contains in the

16-3 fuel tank of the special mobile equipment or farm equipment special

16-4 fuel which has been dyed. As used in this subsection:

16-5 (a) “Farm equipment” means any self-propelled machinery or

16-6 motor vehicle that is designed solely for tilling soil or for

16-7 cultivating, harvesting or transporting crops or other agricultural

16-8 products from a field or other area owned or leased by the operator

16-9 of the farm equipment and in which the crops or agricultural

16-10 products are grown, to a field, yard, silo, cellar, shed or other facility

16-11 which is:

16-12 (1) Owned or leased by the operator of the farm equipment;

16-13 and

16-14 (2) Used to store or process the crops or agricultural

16-15 products.

16-16 The term includes a tractor, baler or swather or any implement used

16-17 to retrieve hay.

16-18 (b) “Highway” does not include a controlled-access highway as

16-19 defined in NRS 484.041.

16-20 5. There is a rebuttable presumption that all special fuel which

16-21 has not been dyed and which is sold or distributed in this state is for

16-22 the purpose of propelling a motor vehicle.

16-23 Sec. 38. NRS 366.220 is hereby amended to read as follows:

16-24 366.220 1. Except as otherwise provided in this chapter, it is

16-25 unlawful for any [special] :

16-26 (a) Special fuel supplier, special fuel dealer or special fuel user

16-27 to sell or use special fuel within this state unless the special fuel

16-28 supplier, special fuel dealer or special fuel user is the holder of a

16-29 special fuel supplier’s, special fuel dealer’s or special fuel user’s

16-30 license issued to him by the Department.

16-31 (b) Person to be a:

16-32 (1) Special fuel exporter unless the person is the holder of a

16-33 special fuel exporter’s license issued to him by the Department.

16-34 (2) Special fuel transporter unless the person is the holder

16-35 of a special fuel transporter’s license issued to him by the

16-36 Department.

16-37 2. The Department may adopt regulations relating to the

16-38 issuance of any special fuel supplier’s, special fuel dealer’s , special

16-39 fuel exporter’s, special fuel transporter’s or special fuel user’s

16-40 license and the collection of fees therefor.

16-41 Sec. 39. NRS 366.240 is hereby amended to read as follows:

16-42 366.240 1. [The] Except as otherwise provided in subsection

16-43 2, the Department shall:

17-1 (a) Upon receipt of the application and bond in proper form,

17-2 issue to the applicant a special fuel supplier’s or special fuel dealer’s

17-3 license.

17-4 (b) Upon receipt of the application in proper form, issue to the

17-5 applicant a special fuel exporter’s, special fuel transporter’s or

17-6 special fuel user’s license.

17-7 2. The Department may refuse to issue a [special fuel

17-8 supplier’s, special fuel dealer’s license or special fuel user’s] license

17-9 pursuant to this section to any person:

17-10 (a) Who formerly held a [special fuel license in this state,]

17-11 license issued pursuant to this chapter or a similar license of any

17-12 other state, the District of Columbia, the United States, a territory or

17-13 possession of the United States or any foreign country which, before

17-14 the time of filing the application, has been revoked for cause;

17-15 (b) Who applies as a subterfuge for the real party in interest

17-16 whose license, before the time of filing the application, has been

17-17 revoked for cause;

17-18 (c) Who, if he is a special fuel supplier or special fuel dealer,

17-19 neglects or refuses to furnish a bond as required by this chapter;

17-20 (d) Who is in default in the payment of a tax on special fuel in

17-21 this state, any other state, the District of Columbia, the United

17-22 States, a territory or possession of the United States or any foreign

17-23 country; [or]

17-24 (e) Who has failed to comply with any provision of this

17-25 chapter; or

17-26 (f) Upon other sufficient cause being shown.

17-27 Sec. 40. NRS 366.250 is hereby amended to read as follows:

17-28 366.250 Any applicant whose application for a special fuel

17-29 supplier’s license, special fuel dealer’s license , special fuel

17-30 exporter’s license, special fuel transporter’s license or special

17-31 fuel user’s license has been denied may petition the Department for

17-32 a hearing. The Department shall:

17-33 1. Grant the applicant a hearing.

17-34 2. Provide to the [person,] applicant, not less than 10 days

17-35 before the hearing, written notice of the time and place of the

17-36 hearing.

17-37 Sec. 41. NRS 366.260 is hereby amended to read as follows:

17-38 366.260 1. [Each special fuel supplier’s license or special

17-39 fuel dealer’s] A license issued pursuant to this chapter:

17-40 (a) Except as otherwise provided in subsection 2, is valid until

17-41 suspended [or revoked for cause or otherwise] , revoked or

17-42 cancelled.

17-43 (b) Is not transferable.

17-44 2. Each special fuel user’s license is valid for [the] a calendar

17-45 year unless suspended [or revoked for cause or otherwise cancelled.

18-1 3. The license of a special fuel supplier, special fuel dealer or

18-2 special fuel user is not transferable.] , revoked or cancelled.

18-3 Sec. 42. NRS 366.270 is hereby amended to read as follows:

18-4 366.270 [Whenever] If any person ceases to be a special fuel

18-5 supplier, special fuel dealer , special fuel exporter, special fuel

18-6 transporter or special fuel user within [the] this state by reason of

18-7 the discontinuance, sale or transfer of his business, he shall:

18-8 1. Notify the Department in writing at the time the

18-9 discontinuance, sale or transfer takes effect. The notice must give

18-10 the date of the discontinuance [and, in the event of a sale, the date

18-11 thereof] , sale or transfer, and the name and address of [the] any

18-12 purchaser or transferee.

18-13 2. Surrender to the Department the license issued to him by the

18-14 Department.

18-15 3. If he is [a] :

18-16 (a) A special fuel user, file [a quarterly] the tax return required

18-17 pursuant to NRS 366.380 and pay all taxes, interest and penalties

18-18 required pursuant to this chapter and chapter 360A of NRS ,

18-19 [366.370 and 366.380,] except that both the filing and payment are

18-20 due on or before the last day of the month following the month of

18-21 the discontinuance, sale or transfer of the business.

18-22 [4. If he is a]

18-23 (b) A special fuel supplier, file [a monthly] the tax return

18-24 required pursuant to NRS 366.383 and pay all taxes, interest and

18-25 penalties required pursuant to this chapter and chapter 360A of

18-26 NRS [366.370 and 366.383] on or before the last day of the month

18-27 following the month of the discontinuance, sale or transfer of the

18-28 business.

18-29 [5. If he is a]

18-30 (c) A special fuel dealer, file [a monthly] the tax return required

18-31 pursuant to NRS 366.386 and pay all taxes, interest and penalties

18-32 required pursuant to [NRS 366.370 and 366.386] this chapter and

18-33 chapter 360A of NRS, except that both the filing and payment are

18-34 due on or before the last day of the month following the month of

18-35 the discontinuance, sale or transfer of the business.

18-36 (d) A special fuel exporter, file the report required pursuant to

18-37 NRS 366.387 on or before the last day of the month following the

18-38 month of the discontinuance, sale or transfer of the business.

18-39 (e) A special fuel transporter, file the report required pursuant

18-40 to NRS 366.695 within 25 days after the end of the month of the

18-41 discontinuance, sale or transfer of the business.

18-42 Sec. 43. NRS 366.350 is hereby amended to read as follows:

18-43 366.350 1. The Department may revoke the license of any

18-44 special fuel dealer, special fuel supplier , special fuel exporter,

18-45 special fuel transporter or special fuel user for reasonable cause[.] ,

19-1 including, without limitation, refusing or neglecting to comply

19-2 with the provisions of this chapter.

19-3 2. Before revoking a license, the Department shall send a

19-4 notice by registered or certified mail to the licensee at his last

19-5 known address ordering him to appear before the Department at a

19-6 time not less than 10 days after the mailing of the notice and show

19-7 cause why the license should not be revoked.

19-8 Sec. 44. NRS 366.370 is hereby amended to read as follows:

19-9 366.370 1. Except as otherwise provided in [subsections 4

19-10 and 5 and NRS 366.380,] this chapter, the excise tax imposed by

19-11 this chapter with respect to the use or sale of special fuel during any

19-12 calendar quarter is due on or before the last day of the first month

19-13 following the quarterly period to which it relates.

19-14 2. If the due date falls on a Saturday, Sunday or legal holiday,

19-15 the next business day is the final due date.

19-16 3. Payment shall be deemed received on the date shown by the

19-17 cancellation mark stamped by the United States Postal Service or

19-18 the postal service of any other country upon an envelope containing

19-19 payment properly addressed to the Department.

19-20 4. A special fuel supplier shall pay the tax imposed by this

19-21 chapter at the time he files his [monthly] tax return pursuant to

19-22 NRS 366.383.

19-23 5. A special fuel dealer shall pay the tax imposed by this

19-24 chapter at the time he files his [monthly] tax return pursuant to

19-25 NRS 366.386.

19-26 Sec. 45. NRS 366.386 is hereby amended to read as follows:

19-27 366.386 1. On or before the last day of the month following

19-28 each [month,] reporting period, a special fuel dealer shall file with

19-29 the Department a tax return for the preceding [month,] reporting

19-30 period, regardless of the amount of tax collected, on a form

19-31 prescribed by the Department.

19-32 2. The tax return must:

19-33 (a) Include information required by the Department for the

19-34 administration and enforcement of this chapter; and

19-35 (b) Be accompanied by a remittance, payable to the Department,

19-36 for the amount of the tax due.

19-37 3. Except as otherwise provided in this subsection, the

19-38 reporting period for a special fuel dealer is a calendar month.

19-39 Upon application by a special fuel dealer, the Department may

19-40 assign to the special fuel dealer for a specific calendar year:

19-41 (a) A reporting period consisting of that entire calendar year if

19-42 the Department estimates, based upon the tax returns filed by the

19-43 special fuel dealer for the preceding calendar year, that the special

19-44 fuel dealer will sell not more than 200 gallons of special fuel in

19-45 this state each calendar month of that reporting period.

20-1 (b) Two reporting periods consisting of 6 consecutive calendar

20-2 months, commencing on the first day of January and July,

20-3 respectively, if the Department estimates, based upon the tax

20-4 returns filed by the special fuel dealer for the preceding calendar

20-5 year, that the special fuel dealer will sell more than 200 gallons

20-6 but not more than 500 gallons of special fuel in this state each

20-7 calendar month during those reporting periods.

20-8 (c) Four reporting periods consisting of 3 consecutive months,

20-9 commencing on the first day of January, April, July and October,

20-10 respectively, if the Department estimates, based upon the tax

20-11 returns filed by the special fuel dealer for the preceding calendar

20-12 year, that the special fuel dealer will sell more than 500 gallons

20-13 but less than 5,000 gallons of special fuel in this state each

20-14 calendar month during those reporting periods.

20-15 Sec. 46. NRS 366.390 is hereby amended to read as follows:

20-16 366.390 1. Except as otherwise provided in subsection 2, the

20-17 Department shall allow each special fuel supplier to retain an

20-18 amount equal to 2 percent of the amount of the tax collected by the

20-19 special fuel supplier [as a fee for making the collection.] to cover

20-20 the supplier’s costs of collection of the tax and of compliance with

20-21 this chapter, and the supplier’s handling losses occasioned by

20-22 evaporation, spillage or other similar causes.

20-23 2. A special fuel supplier who fails to submit a tax return when

20-24 due pursuant to [NRS 366.383] this chapter or fails to pay the tax

20-25 when due pursuant to this chapter is not entitled to retain any of

20-26 the [fee] amount authorized pursuant to subsection 1 for any month

20-27 for which a tax return is not filed[.] when due or a payment is not

20-28 made when due.

20-29 Sec. 47. NRS 366.540 is hereby amended to read as follows:

20-30 366.540 1. The tax provided for by this chapter must be paid

20-31 by special fuel suppliers, special fuel dealers and special fuel users.

20-32 A special fuel supplier or special fuel dealer shall pay to the

20-33 Department the excise tax he collects from purchasers of special

20-34 fuel with the [monthly] return filed pursuant to NRS 366.383 or

20-35 366.386, respectively. The tax paid by a special fuel user must be

20-36 computed by multiplying the tax rate per gallon provided in this

20-37 chapter by the amount that the number of gallons of special fuel

20-38 consumed by the special fuel user in the propulsion of motor

20-39 vehicles on the highways of this state exceeds the number of gallons

20-40 of special fuel purchases by him.

20-41 2. Except as otherwise provided in subsection 3, in computing

20-42 the amount of tax on special fuel a special fuel supplier owes to the

20-43 Department, the special fuel supplier may deduct from the amount

20-44 due pursuant to subsection 1 any amount which is due but has not

20-45 been paid by a purchaser who is authorized by the Department to

21-1 defer payment of the tax pursuant to NRS 366.397. If such a

21-2 deduction is claimed, the claim must identify the purchaser and the

21-3 amount of taxes that he failed to pay.

21-4 3. A special fuel supplier shall not deduct from the amount he

21-5 owes the Department pursuant to subsection 1 any amount which

21-6 has not been paid by a person whose permit to defer the payment of

21-7 the tax has been revoked pursuant to subsection 4 of NRS 366.397

21-8 if, before the special fuel was purchased, the special fuel supplier

21-9 had been notified by the Department pursuant to subsection 5 of

21-10 NRS 366.397 that it had revoked the purchaser’s permit.

21-11 4. Each special fuel supplier and special fuel dealer shall hold

21-12 the amount of all taxes collected pursuant to this chapter in a

21-13 separate account in trust for the State.

21-14 Sec. 48. NRS 366.650 is hereby amended to read as follows:

21-15 366.650 1. If illegally or through error the Department

21-16 collects or receives any excise tax, penalty or interest imposed

21-17 pursuant to this chapter, the excise tax, penalty or interest must be

21-18 refunded to the person who paid the tax, penalty or interest. [Except

21-19 as otherwise provided in NRS 360.235, a] A written application for

21-20 a refund, stating the specific grounds therefor, must be made within

21-21 [36] 12 months after the date of payment, whether or not the excise

21-22 tax, penalty or interest was paid voluntarily or under protest.

21-23 2. Refunds must be made to a successor, assignee, estate or

21-24 heir of the person if written application is made within the time

21-25 limit.

21-26 3. Any amount determined to be refundable by the Department

21-27 must be refunded or credited to any amounts then due from the

21-28 special fuel supplier or special fuel dealer.

21-29 4. All amounts refunded pursuant to the provisions of this

21-30 chapter must be paid from the State Highway Fund on claims

21-31 presented by the Department, approved by the State Board of

21-32 Examiners, and allowed and paid as other claims against the State

21-33 are allowed and paid.

21-34 5. A licensed special fuel user operating interstate or off road,

21-35 or both, who can prove to the satisfaction of the Department that his

21-36 special fuel purchases in Nevada exceed his use of the special fuel

21-37 over the highways of this state for a certain quarter must apply

21-38 credit to any excise taxes, penalties or interest required by this

21-39 chapter or fees, taxes, penalties or interest applicable pursuant to

21-40 chapter 371, 482 or 706 of NRS and any balance may be refunded

21-41 or credited to succeeding reports.

21-42 6. A person who wishes to apply for a refund of the tax on

21-43 special fuel paid by him pursuant to subsection 5 of NRS 366.207

21-44 must:

22-1 (a) Submit an application for the refund on a form prescribed by

22-2 the Department; and

22-3 (b) Establish to the satisfaction of the Department that within a

22-4 period of 6 months he purchased not less than 200 gallons of special

22-5 fuel in this state which was used for a purpose that is exempt from

22-6 the tax on special fuel pursuant to NRS 366.200.

22-7 The Department shall refund to an applicant who complies with the

22-8 provisions of this subsection a refund in an amount equal to the tax

22-9 paid by [that person when he purchased the special fuel.] the

22-10 applicant less the percentage allowed the special fuel supplier

22-11 pursuant to NRS 366.390.

22-12 Sec. 49. NRS 366.695 is hereby amended to read as follows:

22-13 366.695 1. Every [carrier, whether common, contract or

22-14 private, except a special fuel supplier licensed pursuant to this

22-15 chapter or] special fuel transporter, except a wholesale distributor

22-16 transporting the products of a special fuel supplier licensed pursuant

22-17 to this chapter, who transports special fuel in interstate commerce to

22-18 or from any point within this state, or solely within this state, shall

22-19 report all of those deliveries to the Department . [all deliveries of

22-20 that special fuel.]

22-21 2. A report must be made for each calendar month and must be

22-22 filed within 25 days after the end of the month for which the report

22-23 is made. The report must show:

22-24 (a) The name and address of every consignor and consignee and

22-25 of every person other than the designated consignee to whom

22-26 delivery has actually been made;

22-27 (b) The date of each delivery;

22-28 (c) The number of gallons of special fuel delivered for each

22-29 delivery; and

22-30 (d) Such other information as the Department may require.

22-31 [3. The Department or its authorized agents may examine the

22-32 books and records of any carrier during business hours to determine

22-33 whether the carrier is in compliance with the provisions of this

22-34 section.]

22-35 Sec. 50. NRS 366.720 is hereby amended to read as follows:

22-36 366.720 Any person who:

22-37 1. Fails or refuses to pay the tax imposed by this chapter;

22-38 2. Engages in business in this state as a special fuel user,

22-39 special fuel exporter, special fuel dealer or special fuel supplier , or

22-40 acts in this state as a special fuel transporter, without being the

22-41 holder of a license to engage in that business[;] or to act in that

22-42 capacity;

22-43 3. Fails to make any of the reports required by this chapter;

22-44 4. Makes any false statement in any application, report or

22-45 statement required by this chapter;

23-1 5. Refuses to permit the Department or any authorized agent to

23-2 examine records as provided by this chapter;

23-3 6. Fails to keep proper records of quantities of special fuel

23-4 received, produced, refined, manufactured, compounded, used or

23-5 delivered in this state as required by this chapter;

23-6 7. Makes any false statement in connection with an application

23-7 for the refund of any money or taxes provided in this chapter;

23-8 8. Violates the provisions of NRS 366.265;

23-9 9. Fails or refuses to stop his motor vehicle for an inspection to

23-10 determine if all excise taxes due pursuant to the provisions of this

23-11 chapter are being properly reported and paid; or

23-12 10. Refuses to allow the Department or an authorized agent to

23-13 inspect a motor vehicle to determine whether all excise taxes due

23-14 pursuant to the provisions of this chapter are being properly reported

23-15 and paid,

23-16 is guilty of a misdemeanor.

23-17 Sec. 51. NRS 373.090 is hereby amended to read as follows:

23-18 373.090 [1.] For the purpose of the tax imposed by an

23-19 ordinance enacted pursuant to this chapter, motor vehicle fuel is sold

23-20 at the place where it is [distributed from a terminal.

23-21 2. As used in this section, “terminal” has the meaning ascribed

23-22 to it in NRS 365.088.] delivered into a vehicle not belonging to the

23-23 seller or into a stationary tank on the premises of the buyer.

23-24 Sec. 52. This act becomes effective upon passage and approval

23-25 for the purpose of adopting regulations and taking such other actions

23-26 as are necessary to carry out the provisions of this act, and on

23-27 October 1, 2003, for all other purposes.

23-28 H