SB471_EN

Senate Bill No. 471–Committee on Taxation

CHAPTER..........

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:

Section 1. NRS 360A.040 is hereby amended to read as

follows:

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

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

NRS or NRS 590.120 or 590.840 is dishonored upon presentment

for payment, the Department may [require] :

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

and

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

check, traveler’s check, money order or cash.

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

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

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

is afterward dishonored upon presentment for payment, the

submission of the check shall be deemed not to constitute timely

payment of the tax or fee.

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

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

authorized pursuant to NRS 365.328, 365.340 and 366.397[,] and

section 33 of this act, if the Department grants an extension of time

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

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

the amount within the period for which the extension is granted shall

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

per month from the date the amount would have been due without

the extension until the date of payment.

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

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

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

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

Department pursuant to chapter 365, 366 or 373 of NRS or NRS

590.120 or 590.840, the Department may determine the amount

required to be paid upon the basis of:

(a) The facts contained in the return;

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

or may come into its possession; or

2. One or more deficiency determinations may be made with

respect to the amount due for one or more periods.

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

paid, the Department shall impose a penalty and interest on the

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

in the manner set forth in NRS 360A.060.

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

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

fails to file a return with the Department.

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

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

concerning liability arising out of that business, irrespective of

whether the determination is issued before the due date of the

liability.

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

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

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

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

after the last day of the month following the period for which the

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

return is filed, whichever period expires later.

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

additional amount, each notice of determination must be mailed or

personally served within 8 years after the last day of the month

following the period for which the amount is proposed to be

determined.

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

for the mailing of a notice of determination, the taxpayer has signed

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

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

agreed upon. The period so agreed upon may be extended by

subsequent agreements in writing if each agreement is made before

the expiration of the period previously agreed upon.

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

intentional evasion of a provision of chapter 365, 366 or 373 of

NRS or NRS 590.120 or 590.840, or any regulation of the

Department adopted pursuant thereto.

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

360A.160 1. Any person against whom a deficiency

determination is made who believes that the determination is

incorrect may petition the Department for a redetermination within

30 days after being served with the notice of determination.

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

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

right to contest the determination or recover a refund.

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

within which a petition for redetermination must be filed. Any

request for an extension of time pursuant to this subsection must

be filed with the Department within 30 days after service of the

notice of determination.

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

360A.170 A petition for redetermination must:

1. Set forth the amount of the determination that is contested

and the grounds for requesting a redetermination; and

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

[the] :

(a) Payment of the amount of the determination that is not

contested; and

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

petition.

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

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

act.

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

an exporter licensed pursuant to this chapter, who transports

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

interstate commerce to or from any point within this state, or

solely within this state.

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

dealer, supplier, exporter or transporter has been denied may

petition the Department for a hearing. The Department shall:

1. Grant the applicant a hearing.

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

hearing, written notice of the time and place of the hearing.

Sec. 10. A license issued pursuant to this chapter:

1. Is valid until suspended, revoked or cancelled.

2. Is not transferable.

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

exporter or transporter within this state by reason of the

discontinuance, sale or transfer of his business, he shall:

1. Notify the Department in writing at the time the

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

the date of the discontinuance, sale or transfer, and the name and

address of any purchaser or transferee.

2. Surrender to the Department the license issued to him

pursuant to this chapter.

3. If he is:

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

interest and penalties required pursuant to chapter 360A of NRS

and NRS 365.170 and 365.203 on or before the last day of the

month following the month of the discontinuance, sale or transfer

of the business.

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

interest and penalties required pursuant to chapter 360A of NRS

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

the month following the month of the discontinuance, sale or

transfer of the business.

365.515 on or before the last day of the month following the

month of the discontinuance, sale or transfer of the business.

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

365.520 within 25 days after the end of the month of the

discontinuance, sale or transfer of the business.

Sec. 12. 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 8 of this act have the meanings ascribed to

them in those sections.

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

365.130 1. The Department or its authorized agents may

make any audit, examination or inquiry of and concerning the

records, stocks, facilities, equipment and transactions of dealers,

suppliers, retailers [of petroleum products and carriers] , exporters

and transporters of petroleum products, and such other

investigations as it deems necessary to carry out the provisions of

this chapter.

2. If any investigation discloses that any report or any payment

has been incorrect, the Department may make such changes in

subsequent reports and payments as may be necessary to correct the

error so disclosed.

Sec. 14. 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)] 1. 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)] 2. Pay an excise tax on:

[(1)] (a) All fuel for jet or turbine-powered aircraft in the

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

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

365.203; and

[(2)] (b) Aviation fuel in the amount of 2 cents per gallon,

plus any 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. 15. NRS 365.175 is hereby amended to read as follows:

365.175 [1.] Except as otherwise provided in NRS 365.135,

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

month:

[(a)] 1. Submit to the Department a statement of all motor

vehicle fuel, except aviation fuel, sold, distributed or used by him in

this state; and

[(b)] 2. Pay an excise tax on all motor vehicle fuel, except

aviation fuel, in the amount of 17.65 cents per gallon sold,

distributed or used in the manner prescribed in this chapter.

[2. A supplier shall hold the amount of all taxes collected

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

Sec. 16. NRS 365.230 is hereby amended to read as follows:

365.230 1. The provisions of this chapter requiring the

payment of excise taxes do not apply to:

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

[suppliers;] supplier; or

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

by a dealer,

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

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

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

the state of destination to collect and remit the applicable destination

state taxes thereon.

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

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

individual quantities of 500 gallons or less for export by the

purchaser, the dealer or supplier who sold the fuel to the purchaser

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

executed by the purchaser in such form and containing such

information as is prescribed by the Department. This certificate is

prima facie evidence of the exportation of the motor vehicle fuel or

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

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

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

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

the Department immediately thereafter the applicable amount in

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

purchaser is subject to all penalties in this chapter for delinquency in

payment of taxes.

Sec. 17. NRS 365.270 is hereby amended to read as follows:

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

person to be [a] :

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

provided for in this chapter.

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

A supplier without holding a license [of] as a supplier as provided

for in this chapter.

3. An exporter without holding a license as an exporter as

provided for in this chapter.

4. A transporter without holding a license as a transporter as

provided for in this chapter.

Sec. 18. NRS 365.280 is hereby amended to read as follows:

365.280 Before becoming a dealer , [or] supplier, exporter or

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

prescribed and furnished by the Department, for a license

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

supplier.] , supplier, exporter or transporter.

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

365.290 1. Before granting any application for a license as a

dealer or supplier, the Department shall require the applicant to file

with the Department a bond executed by the applicant as principal,

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

payable to this state and conditioned upon the faithful performance

of all the requirements of this chapter and upon the punctual

payment of all excise taxes, penalties and other obligations of the

applicant as a dealer or supplier.

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

or supplier must be fixed by the Department at three times the

estimated maximum monthly tax, determined in such a manner as

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

Department determines that a person is habitually delinquent in

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

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

maximum monthly tax. When cash or a savings certificate,

certificate of deposit or investment certificate is used, the amount

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

$100, within the same upper limit.

3. The Department may increase or decrease the amount of

security required by this section subject to the limitations provided

in this section.

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

bond, nor the revocation, cancellation or suspension of any license

affects the validity of any bond.

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

deposit with the Department, under such terms and conditions as the

Department may prescribe, a like amount of lawful money of the

United States or any other form of security authorized by NRS

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

certificate of deposit or investment certificate, the certificate must

state that the amount is unavailable for withdrawal except upon

order of the Department.

Sec. 20. NRS 365.300 is hereby amended to read as follows:

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

otherwise provided in subsection 2, the Department shall , upon

receipt of:

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

applicant a license as a dealer or supplier . [:

(a) An identification number; and

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

of business of the dealer or supplier in this state.

2. Each license and all duplicates must bear the identification

number of the dealer or supplier.

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

revoked.

4. The dealer or supplier shall have his identification number

printed on each of his delivery tickets.]

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

license as an exporter or a transporter.

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

section to any person:

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

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

United States, a territory or possession of the United States or any

foreign country which, before the time of filing the application,

has been revoked for cause;

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

whose license, before the time of filing the application, has been

revoked for cause;

furnish a bond as required by this chapter;

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

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

other state, the District of Columbia, the United States, a territory

or possession of the United States or any foreign country;

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

chapter; or

(f) Upon other sufficient cause being shown.

Sec. 21. NRS 365.310 is hereby amended to read as follows:

365.310 1. The Department may suspend, cancel or revoke

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

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

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

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

liability exceeds the total amount of bond or bonds furnished by the

dealer or supplier, the Department shall suspend his license

immediately.

3. Before revoking or cancelling any license issued under this

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

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

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

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

revoked by appearing before the Department at Carson City,

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

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

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

exporter or transporter an opportunity to be heard in pursuance of

the notice, and thereafter the Department may revoke or cancel his

license.

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

365.330 1. The excise taxes prescribed in this chapter must

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

Department. The Department shall deliver the taxes to the State

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

for the payment of the taxes.

2. Except as otherwise provided in subsection 3:

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

by a dealer pursuant to NRS 365.170 , [or a user pursuant to NRS

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

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

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

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

evaporation, spillage or other similar causes.

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

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

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

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

handling losses occasioned by evaporation, spillage or other

similar causes.

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

due pursuant to this chapter or fails to pay the tax when due

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

authorized pursuant to subsection 2 for any month for which a tax

return is not filed when due or a payment is not made when due.

4. If the Department determines that a dealer or supplier has

failed to submit a tax return when due pursuant to this chapter or

failed to pay the tax when due pursuant to this chapter, the

Department may order the dealer or supplier to hold the amount

of all taxes collected pursuant to this chapter in a separate

account in trust for the State. The dealer or supplier shall comply

with the order immediately upon receiving notification of the

order from the Department.

Sec. 23. NRS 365.340 is hereby amended to read as follows:

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

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

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

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

payment if he makes written application to the Department on or

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

cause for the extension.

2. The proceeds from any penalty levied for the delinquent

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

deposited with the State Treasurer to the credit of the State

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

on Aviation Fuel and the Account for Taxes on Fuel for Jet or

Turbine-Powered Aircraft by the Department.]

Sec. 24. NRS 365.380 is hereby amended to read as follows:

365.380 1. A claimant for refund must present to the

Department a refund claim form accompanied by the original

invoices showing the purchase. The refund forms must state the total

amount of fuel so purchased and used otherwise than for the

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

the manner and the equipment in which the claimant has used the

fuel.

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

jet or turbine-powered aircraft purchased and exported from this

state shall execute and furnish to the Department a certificate of

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

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

(a) The number of gallons of fuel purchased;

(b) The price per gallon;

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

Department.

4. The signature on the refund claim form subjects the claimant

to the charge of perjury for false statements contained on the refund

application.

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

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

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

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

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

used.

The motor vehicle fuel fills must be further classified according to

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

6. If a motor vehicle with auxiliary equipment consumes motor

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

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

vehicle may be claimed without the necessity of furnishing proof of

the amount of fuel consumed in the operation of the auxiliary

equipment. The Department shall, by regulation, establish uniform

refund provisions for the respective classes of users who claim

refunds of more than 20 percent of the tax paid.

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

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

highways constructed and maintained by public funds, on federal

proprietary lands or reservations where the claimant has no

ownership or control over the land or highways, except when the

person is under a contractual relationship with the Federal

Government or one of its agencies and is engaged in the

performance of his duties pursuant to that relationship. Employment

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

not constitute a contractual relationship for the purpose of this

subsection.

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

to the State for a refund claimant to become a licensed dealer or

supplier, the claimant may, at the option of the Department, be

required to become a licensed dealer or supplier rather than a refund

claimant unless the claimant chooses to claim refunds at the tax rate,

less 2 percent.

Sec. 25. NRS 365.390 is hereby amended to read as follows:

365.390 Upon the presentation of the invoices, written

statements, tax exemption certificates or exportation certificates

required pursuant to this chapter, the Department shall cause to be

repaid to the claimant from the taxes collected under this chapter an

amount equal to the taxes paid by the claimant less the percentage

allowed the dealer[, supplier or user] or supplier pursuant to

NRS 365.330.

Sec. 26. NRS 365.420 is hereby amended to read as follows:

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

1. Applications for refund based upon exportation of motor

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

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

date of exportation.

2. Other applications, together with the necessary supporting

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

12 months after the date of purchase.

3. Rights to refunds are forfeited if applications are not filed

with the Department within the times prescribed in this section.

Sec. 27. NRS 365.500 is hereby amended to read as follows:

365.500 1. Every dealer , [and] supplier , exporter and

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

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

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

inflammable or combustible liquids, and of all manufacture,

refining, compounding, blending, purchases, receipts, exportations,

transportations, use, sales and distribution thereof.

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

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

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

date of any entry therein.

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

wishes to keep proper books and records pertaining to business done

in Nevada elsewhere than within the State of Nevada for inspection

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

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

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

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

those books and records, plus the actual expenses of the examiner

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

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

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

place where the examination is to be made in addition to the number

of days or fractions thereof the examiner is actually engaged in

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

Not more than two such examinations may be charged against any

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

4. Any money received must be deposited by the Department

to the credit of the fund or operating account from which the

expenditures for the examination were paid.

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

supplier , exporter or transporter shall furnish a statement showing

the contents of the records to such extent and in such detail and form

as the Department may require.

Sec. 28. NRS 365.510 is hereby amended to read as follows:

365.510 1. Every retailer shall maintain and keep within the

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

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

thereof and the name of the person who supplies the fuel, together

with delivery tickets, invoices and such other records as the

Department may require.

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

its authorized agents at all times within business hours.

Sec. 29. NRS 365.520 is hereby amended to read as follows:

365.520 1. Every [carrier, whether common, contract or

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

wholesale distributor transporting the products of a dealer licensed

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

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

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

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

deliveries so made.

2. Such]

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

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

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

must show:

(a) The name and address of every consignor and consignee and

of every person other than the designated consignee to whom

delivery has actually been made.

(b) The date of every delivery.

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

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

books and records of any carrier during business hours to determine

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

with.]

Sec. 30. NRS 365.570 is hereby amended to read as follows:

365.570 1. It is unlawful for any person:

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

required by the provisions of this chapter;

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

making, a false statement in a report to the Department or in

connection with an application for refund of any tax;

repaid to him or to any person, either directly or indirectly, any

refund of any tax without being entitled to the same;

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

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

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

inflammable or combustible liquids] transporter without being the

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

that business or to act in [such] that capacity;

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

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

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

than a licensed dealer or supplier; or

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

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

tax imposed by this chapter has not been paid.

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

business as a dealer , [or]supplier or exporter or acts as a

transporter without being the holder of an uncancelled license

authorizing him to engage in that business or to act in that

capacity constitutes a separate offense within the meaning of this

section.

Sec. 31. Chapter 366 of NRS is hereby amended by adding

thereto the provisions set forth as sections 32 and 33 of this act.

Sec. 32. “Special fuel transporter” means a person, except a

special fuel supplier or special fuel exporter licensed pursuant to

this chapter, who transports special fuel in interstate commerce to

or from any point within this state, or solely within this state.

Sec. 33. 1. If the amount of any excise tax for any

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

payment is due pursuant to this chapter, the payment becomes

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

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

additional days to make the payment if he makes written

application to the Department on or before the day the payment is

due and the Department finds good cause for the extension.

2. The proceeds from any penalty levied for the delinquent

payment of an excise tax must be deposited with the State

Treasurer to the credit of the State Highway Fund.

Sec. 34. NRS 366.020 is hereby amended to read as follows:

366.020 As used in this chapter, unless the context otherwise

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

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

them in those sections.

Sec. 35. NRS 366.140 is hereby amended to read as follows:

366.140 1. Every special fuel supplier, special fuel dealer ,

special fuel exporter, special fuel transporter or special fuel user

and every other person transporting or storing special fuel in this

state shall keep such records, receipts, invoices and other pertinent

papers with respect thereto as the Department requires.

2. The records, receipts, invoices and other pertinent papers

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

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

filed with the Department.

3. The records, receipts, invoices and other pertinent papers

must be available at all times during business hours to the

Department or its authorized agents.

Sec. 36. NRS 366.150 is hereby amended to read as follows:

366.150 1. The Department or its authorized agents may:

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

special fuel supplier, special fuel dealer, special fuel exporter,

special fuel transporter, special fuel user or any other person

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

(b) Investigate the character of the disposition which any person

makes of special fuel; and

special fuel,

to determine whether all excise taxes due pursuant to this chapter

are being properly reported and paid.

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

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

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

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

place those books, papers, records and equipment become available.

3. If a special fuel supplier, special fuel dealer, special fuel

exporter, special fuel transporter or special fuel user wishes to

keep proper books and records pertaining to business done in

Nevada elsewhere than within the State of Nevada for inspection

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

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

state travel for each day or fraction thereof during which the

examiner is actually engaged in examining those books and

records, plus the actual expenses of the examiner during the time

that the examiner is absent from this state for the purpose of

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

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

made in addition to the number of days or fractions thereof the

examiner is actually engaged in auditing those books and records.

Not more than two such examinations may be charged against any

special fuel supplier, special fuel dealer, special fuel exporter,

special fuel transporter or special fuel user in any year.

4. Any money received must be deposited by the Department

to the credit of the fund or operating account from which the

expenditures for the examination were paid.

5. Upon the demand of the Department, each special fuel

supplier, special fuel dealer, special fuel exporter, special fuel

transporter or special fuel user shall furnish a statement showing

the contents of the records to such extent and in such detail and

form as the Department may require.

Sec. 37. NRS 366.160 is hereby amended to read as follows:

366.160 1. All records of mileage operated, origin and

destination points within this state, equipment operated in this state,

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

times be open to the public.

2. All supporting schedules, invoices and other pertinent papers

relative to the business affairs and operations of any special fuel

supplier, special fuel dealer , special fuel exporter, special fuel

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

investigation of the records and equipment of any special fuel

supplier, special fuel dealer , special fuel exporter, special fuel

transporter or special fuel user, shall be deemed confidential and

must not be revealed to any person except as necessary to administer

this chapter or as otherwise provided by law.

Sec. 38. NRS 366.170 is hereby amended to read as follows:

366.170 The Department may, upon request from officials to

whom is entrusted the enforcement of the special fuel tax law of any

other state, the District of Columbia, the United States, its territories

or possessions, or any foreign country, forward to those officials any

information which it may have relative to the receipt, storage,

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

fuel supplier, special fuel [exporter,] dealer, special fuel [dealer]

exporter, special fuel transporter or special fuel user, if such other

state, district, territory or possession furnishes similar information to

this state.

Sec. 39. NRS 366.203 is hereby amended to read as follows:

366.203 1. Special fuel, other than compressed natural gas,

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

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

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

exempt special fuel must be of the color and concentration required

by the regulations adopted by the Secretary of the Treasury pursuant

to 26 U.S.C. § 4082.

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

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

motor vehicle which contains in the fuel tank of that vehicle special

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

motor vehicle in violation of this subsection and the registered

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

taxes, penalties and interest payable to the Department.

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

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

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

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

dyed.

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

any special mobile equipment or farm equipment that contains in the

fuel tank of the special mobile equipment or farm equipment special

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

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

motor vehicle that is designed solely for tilling soil or for

cultivating, harvesting or transporting crops or other agricultural

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

of the farm equipment and in which the crops or agricultural

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

which is:

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

and

(2) Used to store or process the crops or agricultural

products.

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

to retrieve hay.

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

defined in NRS 484.041.

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

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

the purpose of propelling a motor vehicle.

Sec. 40. NRS 366.220 is hereby amended to read as follows:

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

unlawful for any [special] :

(a) Special fuel supplier, special fuel dealer or special fuel user

to sell or use special fuel within this state unless the special fuel

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

special fuel supplier’s, special fuel dealer’s or special fuel user’s

license issued to him by the Department.

(b) Person to be a:

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

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

(2) Special fuel transporter unless the person is the holder

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

Department.

2. The Department may adopt regulations relating to the

issuance of any special fuel supplier’s, special fuel dealer’s , special

fuel exporter’s, special fuel transporter’s or special fuel user’s

license and the collection of fees therefor.

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

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

2, the Department shall:

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

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

license.

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

applicant a special fuel exporter’s, special fuel transporter’s or

special fuel user’s license.

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

supplier’s, special fuel dealer’s license or special fuel user’s] license

pursuant to this section to any person:

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

license issued pursuant to this chapter or a similar license of any

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

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

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

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

whose license, before the time of filing the application, has been

revoked for cause;

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

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

this state, any other state, the District of Columbia, the United

States, a territory or possession of the United States or any foreign

country; [or]

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

chapter; or

(f) Upon other sufficient cause being shown.

Sec. 42. NRS 366.250 is hereby amended to read as follows:

366.250 Any applicant whose application for a special fuel

supplier’s license, special fuel dealer’s license , special fuel

exporter’s license, special fuel transporter’s license or special

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

a hearing. The Department shall:

1. Grant the applicant a hearing.

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

before the hearing, written notice of the time and place of the

hearing.

Sec. 43. NRS 366.260 is hereby amended to read as follows:

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

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

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

suspended [or revoked for cause or otherwise] , revoked or

cancelled.

(b) Is not transferable.

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

year unless suspended [or revoked for cause or otherwise cancelled.

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

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

Sec. 44. NRS 366.270 is hereby amended to read as follows:

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

supplier, special fuel dealer , special fuel exporter, special fuel

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

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

1. Notify the Department in writing at the time the

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

the date of the discontinuance [and, in the event of a sale, the date

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

purchaser or transferee.

2. Surrender to the Department the license issued to him by the

Department.

3. If he is [a] :

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

pursuant to NRS 366.380 and pay all taxes, interest and penalties

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

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

due on or before the last day of the month following the month of

the discontinuance, sale or transfer of the business.

[4. If he is a]

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

required pursuant to NRS 366.383 and pay all taxes, interest and

penalties required pursuant to this chapter and chapter 360A of

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

following the month of the discontinuance, sale or transfer of the

business.

[5. If he is a]

pursuant to NRS 366.386 and pay all taxes, interest and penalties

required pursuant to [NRS 366.370 and 366.386] this chapter and

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

due on or before the last day of the month following the month of

the discontinuance, sale or transfer of the business.

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

NRS 366.387 on or before the last day of the month following the

month of the discontinuance, sale or transfer of the business.

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

to NRS 366.695 within 25 days after the end of the month of the

discontinuance, sale or transfer of the business.

Sec. 45. NRS 366.350 is hereby amended to read as follows:

366.350 1. The Department may revoke the license of any

special fuel dealer, special fuel supplier , special fuel exporter,

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

including, without limitation, refusing or neglecting to comply

with the provisions of this chapter.

2. Before revoking a license, the Department shall send a

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

known address ordering him to appear before the Department at a

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

cause why the license should not be revoked.

Sec. 46. NRS 366.370 is hereby amended to read as follows:

366.370 1. Except as otherwise provided in [subsections 4

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

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

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

following the quarterly period to which it relates.

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

the next business day is the final due date.

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

cancellation mark stamped by the United States Postal Service or

the postal service of any other country upon an envelope containing

payment properly addressed to the Department.

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

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

NRS 366.383.

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

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

NRS 366.386.

Sec. 47. NRS 366.386 is hereby amended to read as follows:

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

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

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

period, regardless of the amount of tax collected, on a form

prescribed by the Department.

2. The tax return must:

(a) Include information required by the Department for the

administration and enforcement of this chapter; and

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

for the amount of the tax due.

3. Except as otherwise provided in this subsection, the

reporting period for a special fuel dealer is a calendar month.

Upon application by a special fuel dealer, the Department may

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

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

the Department estimates, based upon the tax returns filed by the

special fuel dealer for the preceding calendar year, that the special

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

this state each calendar month of that reporting period.

(b) Two reporting periods consisting of 6 consecutive calendar

months, commencing on the first day of January and July,

respectively, if the Department estimates, based upon the tax

returns filed by the special fuel dealer for the preceding calendar

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

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

calendar month during those reporting periods.

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

respectively, if the Department estimates, based upon the tax

returns filed by the special fuel dealer for the preceding calendar

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

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

calendar month during those reporting periods.

Sec. 48. NRS 366.390 is hereby amended to read as follows:

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

Department shall allow each special fuel supplier to retain an

amount equal to 2 percent of the amount of the tax collected by the

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

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

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

evaporation, spillage or other similar causes.

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

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

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

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

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

made when due.

Sec. 49. NRS 366.540 is hereby amended to read as follows:

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

by special fuel suppliers, special fuel dealers and special fuel users.

A special fuel supplier or special fuel dealer shall pay to the

Department the excise tax he collects from purchasers of special

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

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

computed by multiplying the tax rate per gallon provided in this

chapter by the amount that the number of gallons of special fuel

consumed by the special fuel user in the propulsion of motor

vehicles on the highways of this state exceeds the number of gallons

of special fuel purchases by him.

2. Except as otherwise provided in subsection 3, in computing

the amount of tax on special fuel a special fuel supplier owes to the

Department, the special fuel supplier may deduct from the amount

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

been paid by a purchaser who is authorized by the Department to

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

deduction is claimed, the claim must identify the purchaser and the

amount of taxes that he failed to pay.

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

owes the Department pursuant to subsection 1 any amount which

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

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

if, before the special fuel was purchased, the special fuel supplier

had been notified by the Department pursuant to subsection 5 of

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

4. [Each] If the Department determines that a special fuel

supplier or special fuel dealer has failed to submit a tax return

when due pursuant to this chapter or failed to pay the tax when

due pursuant to this chapter, the Department may order the

special fuel supplier [and] or special fuel dealer [shall] to hold the

amount of all taxes collected pursuant to this chapter in a separate

account in trust for the state. The special fuel supplier or special

fuel dealer shall comply with the order immediately upon

receiving notification of the order from the Department.

Sec. 50. NRS 366.650 is hereby amended to read as follows:

366.650 1. If illegally or through error the Department

collects or receives any excise tax, penalty or interest imposed

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

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

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

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

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

tax, penalty or interest was paid voluntarily or under protest.

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

heir of the person if written application is made within the time

limit.

3. Any amount determined to be refundable by the Department

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

special fuel supplier or special fuel dealer.

4. All amounts refunded pursuant to the provisions of this

chapter must be paid from the State Highway Fund on claims

presented by the Department, approved by the State Board of

Examiners, and allowed and paid as other claims against the State

are allowed and paid.

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

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

special fuel purchases in Nevada exceed his use of the special fuel

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

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

chapter or fees, taxes, penalties or interest applicable pursuant to

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

or credited to succeeding reports.

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

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

must:

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

the Department; and

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

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

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

the tax on special fuel pursuant to NRS 366.200.

The Department shall refund to an applicant who complies with the

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

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

applicant less the percentage allowed the special fuel supplier

pursuant to NRS 366.390.

Sec. 51. NRS 366.695 is hereby amended to read as follows:

366.695 1. Every [carrier, whether common, contract or

private, except a special fuel supplier licensed pursuant to this

chapter or] special fuel transporter, except a wholesale distributor

transporting the products of a special fuel supplier licensed pursuant

to this chapter, who transports special fuel in interstate commerce to

or from any point within this state, or solely within this state, shall

report all of those deliveries to the Department . [all deliveries of

that special fuel.]

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

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

is made. The report must show:

(a) The name and address of every consignor and consignee and

of every person other than the designated consignee to whom

delivery has actually been made;

(b) The date of each delivery;

delivery; and

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

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

books and records of any carrier during business hours to determine

whether the carrier is in compliance with the provisions of this

section.]

Sec. 52. NRS 366.720 is hereby amended to read as follows:

366.720 Any person who:

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

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

special fuel exporter, special fuel dealer or special fuel supplier , or

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

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

capacity;

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

4. Makes any false statement in any application, report or

statement required by this chapter;

5. Refuses to permit the Department or any authorized agent to

examine records as provided by this chapter;

6. Fails to keep proper records of quantities of special fuel

received, produced, refined, manufactured, compounded, used or

delivered in this state as required by this chapter;

7. Makes any false statement in connection with an application

for the refund of any money or taxes provided in this chapter;

8. Violates the provisions of NRS 366.265;

9. Fails or refuses to stop his motor vehicle for an inspection to

determine if all excise taxes due pursuant to the provisions of this

chapter are being properly reported and paid; or

10. Refuses to allow the Department or an authorized agent to

inspect a motor vehicle to determine whether all excise taxes due

pursuant to the provisions of this chapter are being properly reported

and paid,

is guilty of a misdemeanor.

Sec. 53. NRS 373.090 is hereby amended to read as follows:

373.090 [1.] For the purpose of the tax imposed by an

ordinance enacted pursuant to this chapter, motor vehicle fuel is sold

at the place where it is [distributed from a terminal.

2. As used in this section, “terminal” has the meaning ascribed

to it in NRS 365.088.] delivered into a vehicle not belonging to the

seller or into a stationary tank on the premises of the buyer.

Sec. 54. This act becomes effective upon passage and approval

for the purpose of adopting regulations and taking such other actions

as are necessary to carry out the provisions of this act, and on

October 1, 2003, for all other purposes.

²⁰~~~~~⁰³