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 33 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 365.170 is hereby amended to read as follows:

5-19      365.170  [1.] Except as otherwise provided in NRS 365.135,

5-20  every dealer shall, not later than the last day of each calendar month:

5-21      [(a)] 1.  Render to the Department a statement of all aviation

5-22  fuel and fuel for jet or turbine-powered aircraft sold, distributed or

5-23  used by him in this state, as well as all such fuel sold, distributed or

5-24  used in this state by a purchaser thereof upon which sale,

5-25  distribution or use the dealer has assumed liability for the tax

5-26  thereon pursuant to NRS 365.020, during the preceding calendar

5-27  month; and

5-28      [(b)] 2.  Pay an excise tax on:

5-29          [(1)] (a) All fuel for jet or turbine-powered aircraft in the

5-30  amount of 1 cent per gallon, plus any amount imposed by the county

5-31  in which the fuel is sold, distributed or used pursuant to NRS

5-32  365.203; and

5-33          [(2)] (b) Aviation fuel in the amount of 2 cents per gallon,

5-34  plus any amount imposed by the county in which the fuel is sold,

5-35  distributed or used pursuant to NRS 365.203,

5-36  so sold, distributed or used, in the manner and within the time

5-37  prescribed in this chapter.

5-38      [2.  A dealer shall hold the amount of all taxes collected

5-39  pursuant to this chapter in a separate account in trust for the State.]

5-40      Sec. 15.  NRS 365.175 is hereby amended to read as follows:

5-41      365.175  [1.] Except as otherwise provided in NRS 365.135,

5-42  every supplier shall, not later than the last day of each calendar

5-43  month:


6-1  [(a)] 1.  Submit to the Department a statement of all motor

6-2  vehicle fuel, except aviation fuel, sold, distributed or used by him in

6-3  this state; and

6-4  [(b)] 2.  Pay an excise tax on all motor vehicle fuel, except

6-5  aviation fuel, in the amount of 17.65 cents per gallon sold,

6-6  distributed or used in the manner prescribed in this chapter.

6-7  [2.  A supplier shall hold the amount of all taxes collected

6-8  pursuant to this chapter in a separate account in trust for the State.]

6-9  Sec. 16.  NRS 365.230 is hereby amended to read as follows:

6-10      365.230  1.  The provisions of this chapter requiring the

6-11  payment of excise taxes do not apply to:

6-12      (a) Motor vehicle fuel, other than aviation fuel, sold by a

6-13  [suppliers;] supplier; or

6-14      (b) Aviation fuel or fuel for jet or turbine-powered aircraft sold

6-15  by a dealer,

6-16  in individual quantities of 500 gallons or less for export to another

6-17  state or country by the purchaser other than in the supply tank of a

6-18  motor vehicle or an aircraft, if the dealer or supplier is licensed in

6-19  the state of destination to collect and remit the applicable destination

6-20  state taxes thereon.

6-21      2.  In support of any exemption from taxes on account of sales

6-22  of motor vehicle fuel or fuel for jet or turbine-powered aircraft in

6-23  individual quantities of 500 gallons or less for export by the

6-24  purchaser, the dealer or supplier who sold the fuel to the purchaser

6-25  shall retain in his files for at least [3] 4 years an export certificate

6-26  executed by the purchaser in such form and containing such

6-27  information as is prescribed by the Department. This certificate is

6-28  prima facie evidence of the exportation of the motor vehicle fuel or

6-29  fuel for jet or turbine-powered aircraft to which it applies only if

6-30  accepted by the dealer or supplier in good faith. If the purchaser

6-31  fails to export any part of the motor vehicle fuel or fuel for jet or

6-32  turbine-powered aircraft covered by the certificate, he shall remit to

6-33  the Department immediately thereafter the applicable amount in

6-34  taxes due on the part not exported. Upon failure to do so the

6-35  purchaser is subject to all penalties in this chapter for delinquency in

6-36  payment of taxes.

6-37      Sec. 17.  NRS 365.270 is hereby amended to read as follows:

6-38      365.270  [1.  After April 1, 1935, it] It is unlawful for any

6-39  person to be [a] :

6-40      1.  A dealer without holding a license [of] as a dealer as

6-41  provided for in this chapter.

6-42      2.  [After January 1, 2002, it is unlawful for any person to be a]

6-43  A supplier without holding a license [of] as a supplier as provided

6-44  for in this chapter.


7-1  3.  An exporter without holding a license as an exporter as

7-2  provided for in this chapter.

7-3  4.  A transporter without holding a license as a transporter as

7-4  provided for in this chapter.

7-5  Sec. 18.  NRS 365.280 is hereby amended to read as follows:

7-6  365.280  Before becoming a dealer , [or] supplier, exporter or

7-7  transporter, a person shall apply to the Department, on forms to be

7-8  prescribed and furnished by the Department, for a license

7-9  authorizing the applicant to engage in business as a dealer [or

7-10  supplier.] , supplier, exporter or transporter.

7-11      Sec. 19.  NRS 365.290 is hereby amended to read as follows:

7-12      365.290  1.  Before granting any application for a license as a

7-13  dealer or supplier, the Department shall require the applicant to file

7-14  with the Department a bond executed by the applicant as principal,

7-15  and by a corporation qualified under the laws of this state as surety,

7-16  payable to this state and conditioned upon the faithful performance

7-17  of all the requirements of this chapter and upon the punctual

7-18  payment of all excise taxes, penalties and other obligations of the

7-19  applicant as a dealer or supplier.

7-20      2.  The total amount of the bond or bonds required of any dealer

7-21  or supplier must be fixed by the Department at three times the

7-22  estimated maximum monthly tax, determined in such a manner as

7-23  the Department deems proper, or $1,000, whichever is greater. If the

7-24  Department determines that a person is habitually delinquent in

7-25  the payment of amounts due pursuant to this chapter, it may increase

7-26  the amount of his security to not more than five times the estimated

7-27  maximum monthly tax. When cash or a savings certificate,

7-28  certificate of deposit or investment certificate is used, the amount

7-29  required must be rounded off to the next larger integral multiple of

7-30  $100, within the same upper limit.

7-31      3.  The Department may increase or decrease the amount of

7-32  security required by this section subject to the limitations provided

7-33  in this section.

7-34      4.  No recovery on any bond, nor the execution of any new

7-35  bond, nor the revocation, cancellation or suspension of any license

7-36  affects the validity of any bond.

7-37      5.  In lieu of any bond or bonds, a dealer or supplier may

7-38  deposit with the Department, under such terms and conditions as the

7-39  Department may prescribe, a like amount of lawful money of the

7-40  United States or any other form of security authorized by NRS

7-41  100.065. If security is provided in the form of a savings certificate,

7-42  certificate of deposit or investment certificate, the certificate must

7-43  state that the amount is unavailable for withdrawal except upon

7-44  order of the Department.

 


8-1  Sec. 20.  NRS 365.300 is hereby amended to read as follows:

8-2  365.300  1.  [Upon approval of the application] Except as

8-3  otherwise provided in subsection 2, the Department shall , upon

8-4  receipt of:

8-5  (a) The application and bond in proper form, issue to the

8-6  applicant a license as a dealer or supplier . [:

8-7  (a) An identification number; and

8-8  (b) A nonassignable license with a duplicate copy for each place

8-9  of business of the dealer or supplier in this state.

8-10      2.  Each license and all duplicates must bear the identification

8-11  number of the dealer or supplier.

8-12      3.  The license continues in force until cancelled, suspended or

8-13  revoked.

8-14      4.  The dealer or supplier shall have his identification number

8-15  printed on each of his delivery tickets.]

8-16      (b) The application in proper form, issue to the applicant a

8-17  license as an exporter or a transporter.

8-18      2.  The Department may refuse to issue a license pursuant this

8-19  section to any person:

8-20      (a) Who formerly held a license issued pursuant to this chapter

8-21  or a similar license of any other state, the District of Columbia, the

8-22  United States, a territory or possession of the United States or any

8-23  foreign country which, before the time of filing the application,

8-24  has been revoked for cause;

8-25      (b) Who applies as a subterfuge for the real party in interest

8-26  whose license, before the time of filing the application, has been

8-27  revoked for cause;

8-28      (c) Who, if he is a dealer or supplier, neglects or refuses to

8-29  furnish a bond as required by this chapter;

8-30      (d) Who is in default in the payment of a tax on motor vehicle

8-31  fuel or fuel for jet or turbine-powered aircraft in this state, any

8-32  other state, the District of Columbia, the United States, a territory

8-33  or possession of the United States or any foreign country;

8-34      (e) Who has failed to comply with any provision of this

8-35  chapter; or

8-36      (f) Upon other sufficient cause being shown.

8-37      Sec. 21.  NRS 365.310 is hereby amended to read as follows:

8-38      365.310  1.  The Department may suspend, cancel or revoke

8-39  the license of any dealer , [or] supplier , exporter or transporter

8-40  refusing or neglecting to comply with the provisions of this chapter.

8-41      2.  If a dealer or supplier becomes delinquent in the payment of

8-42  excise taxes as prescribed by this chapter to the extent that his

8-43  liability exceeds the total amount of bond or bonds furnished by the

8-44  dealer or supplier, the Department shall suspend his license

8-45  immediately.


9-1  3.  Before revoking or cancelling any license issued under this

9-2  chapter, the Department shall send a notice by registered or certified

9-3  mail to the dealer , [or] supplier , exporter or transporter at his last

9-4  known address. The notice must order the dealer , [or] supplier ,

9-5  exporter or transporter to show cause why his license should not be

9-6  revoked by appearing before the Department at Carson City,

9-7  Nevada, or such other place in this state as may be designated by the

9-8  Department, at a time not less than 10 days after the mailing of the

9-9  notice. The Department shall allow the dealer , [or] supplier ,

9-10  exporter or transporter an opportunity to be heard in pursuance of

9-11  the notice, and thereafter the Department may revoke or cancel his

9-12  license.

9-13      Sec. 22.  NRS 365.330 is hereby amended to read as follows:

9-14      365.330  1.  The excise taxes prescribed in this chapter must

9-15  be paid on or before the last day of each calendar month to the

9-16  Department. The Department shall deliver the taxes to the State

9-17  Treasurer, who shall provide to the dealer, supplier or user a receipt

9-18  for the payment of the taxes.

9-19      2.  Except as otherwise provided in subsection 3:

9-20      (a) From the tax found to be due upon any statement submitted

9-21  by a dealer pursuant to NRS 365.170 , [or a user pursuant to NRS

9-22  365.200,] the dealer [or user] may retain an amount equal to 2

9-23  percent of the amount of the tax collected to cover the dealer’s [or

9-24  user’s] costs of collection of the tax and of compliance with this

9-25  chapter , and the dealer’s [or user’s] handling losses occasioned by

9-26  evaporation, spillage or other similar causes.

9-27      [3.] (b) Each supplier may retain an amount equal to 2 percent

9-28  of the amount of the tax collected by the supplier [as a fee for

9-29  making the collection.] to cover the supplier’s costs of collection of

9-30  the tax and of compliance with this chapter, and the supplier’s

9-31  handling losses occasioned by evaporation, spillage or other

9-32  similar causes.

9-33      3.  A dealer or supplier who fails to submit a tax return when

9-34  due pursuant to this chapter or fails to pay the tax when due

9-35  pursuant to this chapter is not entitled to retain any of the amount

9-36  authorized pursuant to subsection 2 for any month for which a tax

9-37  return is not filed when due or a payment is not made when due.

9-38      4.  If the Department determines that a dealer or supplier has

9-39  failed to submit a tax return when due pursuant to this chapter or

9-40  failed to pay the tax when due pursuant to this chapter, the

9-41  Department may order the dealer or supplier to hold the amount

9-42  of all taxes collected pursuant to this chapter in a separate

9-43  account in trust for the State. The dealer or supplier shall comply

9-44  with the order immediately upon receiving notification of the

9-45  order from the Department.


10-1      Sec. 23.  NRS 365.340 is hereby amended to read as follows:

10-2      365.340  1.  If the amount of any excise tax for any month is

10-3  not paid to the State on or before the last day of the next month, it

10-4  becomes delinquent at the close of business on that day. A dealer,

10-5  supplier or user may have up to 15 additional days to make the

10-6  payment if he makes written application to the Department on or

10-7  before the day the payment is due and the Department finds good

10-8  cause for the extension.

10-9      2.  The proceeds from any penalty levied for the delinquent

10-10  payment of an excise tax must be [allocated proportionately to]

10-11  deposited with the State Treasurer to the credit of the State

10-12  Highway Fund . [, the county gas tax funds, the Account for Taxes

10-13  on Aviation Fuel and the Account for Taxes on Fuel for Jet or

10-14  Turbine-Powered Aircraft by the Department.]

10-15     Sec. 24.  NRS 365.380 is hereby amended to read as follows:

10-16     365.380  1.  A claimant for refund must present to the

10-17  Department a refund claim form accompanied by the original

10-18  invoices showing the purchase. The refund forms must state the total

10-19  amount of fuel so purchased and used otherwise than for the

10-20  propulsion of motor vehicles or jet or turbine-powered aircraft and

10-21  the manner and the equipment in which the claimant has used the

10-22  fuel.

10-23     2.  A claimant for refund of tax on motor vehicle fuel or fuel for

10-24  jet or turbine-powered aircraft purchased and exported from this

10-25  state shall execute and furnish to the Department a certificate of

10-26  exportation on such form as may be prescribed by the Department.

10-27     3.  An invoice to qualify for refund must contain at least:

10-28     (a) The number of gallons of fuel purchased;

10-29     (b) The price per gallon;

10-30     (c) The total purchase price of the fuel; and

10-31     (d) Such other information as may be prescribed by the

10-32  Department.

10-33     4.  The signature on the refund claim form subjects the claimant

10-34  to the charge of perjury for false statements contained on the refund

10-35  application.

10-36     5.  Daily records must be maintained and preserved for a period

10-37  of [3] 4 years for audit purposes of all motor vehicle fuel and fuel

10-38  for jet or turbine-powered aircraft used. The record must set forth:

10-39     (a) The piece of equipment being supplied with the fuel;

10-40     (b) The number of gallons of fuel used in each fill; and

10-41     (c) The purpose for which the piece of equipment will be

10-42  used.

10-43  The motor vehicle fuel fills must be further classified according to

10-44  whether the motor vehicle fuel was used on or off the highway.


11-1      6.  If a motor vehicle with auxiliary equipment consumes motor

11-2  vehicle fuel and there is no auxiliary motor or separate tank for the

11-3  motor, a refund of 20 percent of the tax paid on the fuel used in the

11-4  vehicle may be claimed without the necessity of furnishing proof of

11-5  the amount of fuel consumed in the operation of the auxiliary

11-6  equipment. The Department shall, by regulation, establish uniform

11-7  refund provisions for the respective classes of users who claim

11-8  refunds of more than 20 percent of the tax paid.

11-9      7.  No person may be granted a refund of motor vehicle fuel

11-10  taxes for off-highway use when the consumption takes place on

11-11  highways constructed and maintained by public funds, on federal

11-12  proprietary lands or reservations where the claimant has no

11-13  ownership or control over the land or highways, except when the

11-14  person is under a contractual relationship with the Federal

11-15  Government or one of its agencies and is engaged in the

11-16  performance of his duties pursuant to that relationship. Employment

11-17  of a person by the Federal Government or any of its agencies does

11-18  not constitute a contractual relationship for the purpose of this

11-19  subsection.

11-20     8.  If, in the opinion of the Department, it would be beneficial

11-21  to the State for a refund claimant to become a licensed dealer or

11-22  supplier, the claimant may, at the option of the Department, be

11-23  required to become a licensed dealer or supplier rather than a refund

11-24  claimant unless the claimant chooses to claim refunds at the tax rate,

11-25  less 2 percent.

11-26     Sec. 25.  NRS 365.390 is hereby amended to read as follows:

11-27     365.390  Upon the presentation of the invoices, written

11-28  statements, tax exemption certificates or exportation certificates

11-29  required pursuant to this chapter, the Department shall cause to be

11-30  repaid to the claimant from the taxes collected under this chapter an

11-31  amount equal to the taxes paid by the claimant less the percentage

11-32  allowed the dealer[, supplier or user] or supplier pursuant to

11-33  NRS 365.330.

11-34     Sec. 26.  NRS 365.420 is hereby amended to read as follows:

11-35     365.420  [Except as provided in NRS 360.235, all:]

11-36     1.  Applications for refund based upon exportation of motor

11-37  vehicle fuel or fuel for jet or turbine-powered aircraft from this state

11-38  must be filed with the Department within 3 months [from] after the

11-39  date of exportation.

11-40     2.  Other applications, together with the necessary supporting

11-41  evidence, must be filed with the Department within [6 months from]

11-42  12 months after the date of purchase.

11-43     3.  Rights to refunds are forfeited if applications are not filed

11-44  with the Department within the times prescribed in this section.

 


12-1      Sec. 27.  NRS 365.500 is hereby amended to read as follows:

12-2      365.500  1.  Every dealer , [and] supplier , exporter and

12-3  transporter shall cause to be kept a true record, in such form as may

12-4  be prescribed or approved by the Department, of all stocks of motor

12-5  vehicle fuel and fuel for jet or turbine-powered aircraft and of other

12-6  inflammable or combustible liquids, and of all manufacture,

12-7  refining, compounding, blending, purchases, receipts, exportations,

12-8  transportations, use, sales and distribution thereof.

12-9      2.  The records are subject to inspection at all times within

12-10  business hours by the Department or its authorized agents, and must

12-11  remain available for inspection for a period of [3] 4 years after the

12-12  date of any entry therein.

12-13     3.  If a dealer [or suppliers] , supplier, exporter or transporter

12-14  wishes to keep proper books and records pertaining to business done

12-15  in Nevada elsewhere than within the State of Nevada for inspection

12-16  as provided in this section, he must pay a fee for the examination in

12-17  an amount per day equal to the amount set by law for out-of-state

12-18  travel for each day or fraction thereof during which the examiner is

12-19  actually engaged in examining [the books of the dealer or supplier,]

12-20  those books and records, plus the actual expenses of the examiner

12-21  during the time that the examiner is absent from [Carson City,

12-22  Nevada,] this state for the purpose of making the examination, but

12-23  the time must not exceed 1 day going to and 1 day coming from the

12-24  place where the examination is to be made in addition to the number

12-25  of days or fractions thereof the examiner is actually engaged in

12-26  auditing [the dealer’s or supplier’s books.] those books and records.

12-27  Not more than two such examinations may be charged against any

12-28  dealer , [or] supplier , exporter or transporter in any year.

12-29     4.  Any money received must be deposited by the Department

12-30  to the credit of the fund or operating account from which the

12-31  expenditures for the examination were paid.

12-32     5.  Upon the demand of the Department, each dealer , [or]

12-33  supplier , exporter or transporter shall furnish a statement showing

12-34  the contents of the records to such extent and in such detail and form

12-35  as the Department may require.

12-36     Sec. 28.  NRS 365.510 is hereby amended to read as follows:

12-37     365.510  1.  Every retailer shall maintain and keep within the

12-38  State for a period of [3] 4 years a true record of motor vehicle fuel

12-39  or fuel for jet or turbine-powered aircraft received, of the price

12-40  thereof and the name of the person who supplies the fuel, together

12-41  with delivery tickets, invoices and such other records as the

12-42  Department may require.

12-43     2.  Such records are subject to inspection by the Department or

12-44  its authorized agents at all times within business hours.

 


13-1      Sec. 29.  NRS 365.520 is hereby amended to read as follows:

13-2      365.520  1.  Every [carrier, whether common, contract or

13-3  private,] transporter, except a dealer licensed under this chapter or a

13-4  wholesale distributor transporting the products of a dealer licensed

13-5  under this chapter, who transports motor vehicle fuel or fuel for jet

13-6  or turbine-powered aircraft in interstate commerce to or from any

13-7  point within [the State of Nevada] this state, or solely within this

13-8  state, shall report all of those deliveries to the Department . [all

13-9  deliveries so made.

13-10     2.  Such]

13-11     2.  A report must [cover the period of] be made for each

13-12  calendar month and must be filed within 25 days after the end of

13-13  [that month.] the month for which the report is made. The report

13-14  must show:

13-15     (a) The name and address of every consignor and consignee and

13-16  of every person other than the designated consignee to whom

13-17  delivery has actually been made.

13-18     (b) The date of every delivery.

13-19     (c) The amount of every delivery in gallons.

13-20     (d) Such other information as the Department may require.

13-21     [3.  The Department or its authorized agents may examine the

13-22  books and records of any carrier during business hours to determine

13-23  if the provisions of this section have been or are being complied

13-24  with.]

13-25     Sec. 30.  NRS 365.570 is hereby amended to read as follows:

13-26     365.570  1.  It is unlawful for any person:

13-27     (a) To refuse or neglect to make any statement, report or return

13-28  required by the provisions of this chapter;

13-29     (b) Knowingly to make, or aid or assist any other person in

13-30  making, a false statement in a report to the Department or in

13-31  connection with an application for refund of any tax;

13-32     (c) Knowingly to collect or attempt to collect or cause to be

13-33  repaid to him or to any person, either directly or indirectly, any

13-34  refund of any tax without being entitled to the same;

13-35     (d) To engage in business in this state as a dealer , [or] supplier

13-36  or exporter or to act in this state as a [carrier of motor vehicle fuel,

13-37  fuel for jet or turbine-powered aircraft, special fuel or other

13-38  inflammable or combustible liquids] transporter without being the

13-39  holder of an uncancelled license authorizing him to engage in [such]

13-40  that business or to act in [such] that capacity;

13-41     (e) To sell any motor vehicle fuel or fuel for jet or turbine-

13-42  powered aircraft upon which the tax imposed by this chapter has not

13-43  been paid, purchased by or consigned to him by any person other

13-44  than a licensed dealer or supplier; or


14-1      (f) To act as an agent to sell any motor vehicle fuel or fuel for jet

14-2  or turbine-powered aircraft, obtained in any manner, upon which the

14-3  tax imposed by this chapter has not been paid.

14-4      2.  Each day or part thereof during which any person engages in

14-5  business as a dealer , [or]supplier or exporter or acts as a

14-6  transporter without being the holder of an uncancelled license

14-7  authorizing him to engage in that business or to act in that

14-8  capacity constitutes a separate offense within the meaning of this

14-9  section.

14-10     Sec. 31.  Chapter 366 of NRS is hereby amended by adding

14-11  thereto the provisions set forth as sections 32 and 33 of this act.

14-12     Sec. 32.  “Special fuel transporter” means a person, except a

14-13  special fuel supplier or special fuel exporter licensed pursuant to

14-14  this chapter, who transports special fuel in interstate commerce to

14-15  or from any point within this state, or solely within this state.

14-16     Sec. 33.  1.  If the amount of any excise tax for any

14-17  reporting period is not paid to the State on or before the day the

14-18  payment is due pursuant to this chapter, the payment becomes

14-19  delinquent at the close of business on that day. A special fuel

14-20  supplier, special fuel dealer or special fuel user may have up to 15

14-21  additional days to make the payment if he makes written

14-22  application to the Department on or before the day the payment is

14-23  due and the Department finds good cause for the extension.

14-24     2.  The proceeds from any penalty levied for the delinquent

14-25  payment of an excise tax must be deposited with the State

14-26  Treasurer to the credit of the State Highway Fund.

14-27     Sec. 34.  NRS 366.020 is hereby amended to read as follows:

14-28     366.020  As used in this chapter, unless the context otherwise

14-29  requires, the words and terms defined in NRS 366.025 to 366.100,

14-30  inclusive, and section 32 of this act have the meanings ascribed to

14-31  them in those sections.

14-32     Sec. 35.  NRS 366.140 is hereby amended to read as follows:

14-33     366.140  1.  Every special fuel supplier, special fuel dealer ,

14-34  special fuel exporter, special fuel transporter or special fuel user

14-35  and every other person transporting or storing special fuel in this

14-36  state shall keep such records, receipts, invoices and other pertinent

14-37  papers with respect thereto as the Department requires.

14-38     2.  The records, receipts, invoices and other pertinent papers

14-39  used in the preparation of a report or return required pursuant to this

14-40  chapter must be preserved for 4 years after the report or return is

14-41  filed with the Department.

14-42     3.  The records, receipts, invoices and other pertinent papers

14-43  must be available at all times during business hours to the

14-44  Department or its authorized agents.

 


15-1      Sec. 36.  NRS 366.150 is hereby amended to read as follows:

15-2      366.150  1.  The Department or its authorized agents may:

15-3      (a) Examine the books, papers, records and equipment of any

15-4  special fuel supplier, special fuel dealer, special fuel exporter,

15-5  special fuel transporter, special fuel user or any other person

15-6  transporting or storing special fuel ; [as defined in NRS 366.060;]

15-7      (b) Investigate the character of the disposition which any person

15-8  makes of special fuel; and

15-9      (c) Stop and inspect a motor vehicle that is using or transporting

15-10  special fuel,

15-11  to determine whether all excise taxes due pursuant to this chapter

15-12  are being properly reported and paid.

15-13     2.  The fact that the books, papers, records and equipment

15-14  described in paragraph (a) of subsection 1 are not maintained in this

15-15  state at the time of demand does not cause the Department to lose

15-16  any right of examination pursuant to this chapter at the time and

15-17  place those books, papers, records and equipment become available.

15-18     3.  If a special fuel supplier, special fuel dealer, special fuel

15-19  exporter, special fuel transporter or special fuel user wishes to

15-20  keep proper books and records pertaining to business done in

15-21  Nevada elsewhere than within the State of Nevada for inspection

15-22  as provided in this section, he must pay a fee for the examination

15-23  in an amount per day equal to the amount set by law for out-of-

15-24  state travel for each day or fraction thereof during which the

15-25  examiner is actually engaged in examining those books and

15-26  records, plus the actual expenses of the examiner during the time

15-27  that the examiner is absent from this state for the purpose of

15-28  making the examination, but the time must not exceed 1 day going

15-29  to and 1 day coming from the place where the examination is to be

15-30  made in addition to the number of days or fractions thereof the

15-31  examiner is actually engaged in auditing those books and records.

15-32  Not more than two such examinations may be charged against any

15-33  special fuel supplier, special fuel dealer, special fuel exporter,

15-34  special fuel transporter or special fuel user in any year.

15-35     4.  Any money received must be deposited by the Department

15-36  to the credit of the fund or operating account from which the

15-37  expenditures for the examination were paid.

15-38     5.  Upon the demand of the Department, each special fuel

15-39  supplier, special fuel dealer, special fuel exporter, special fuel

15-40  transporter or special fuel user shall furnish a statement showing

15-41  the contents of the records to such extent and in such detail and

15-42  form as the Department may require.

15-43     Sec. 37.  NRS 366.160 is hereby amended to read as follows:

15-44     366.160  1.  All records of mileage operated, origin and

15-45  destination points within this state, equipment operated in this state,


16-1  gallons or cubic feet consumed, and tax paid must at all reasonable

16-2  times be open to the public.

16-3      2.  All supporting schedules, invoices and other pertinent papers

16-4  relative to the business affairs and operations of any special fuel

16-5  supplier, special fuel dealer , special fuel exporter, special fuel

16-6  transporter or special fuel user, and any information obtained by an

16-7  investigation of the records and equipment of any special fuel

16-8  supplier, special fuel dealer , special fuel exporter, special fuel

16-9  transporter or special fuel user, shall be deemed confidential and

16-10  must not be revealed to any person except as necessary to administer

16-11  this chapter or as otherwise provided by law.

16-12     Sec. 38.  NRS 366.170 is hereby amended to read as follows:

16-13     366.170  The Department may, upon request from officials to

16-14  whom is entrusted the enforcement of the special fuel tax law of any

16-15  other state, the District of Columbia, the United States, its territories

16-16  or possessions, or any foreign country, forward to those officials any

16-17  information which it may have relative to the receipt, storage,

16-18  delivery, sale, use or other disposition of special fuel by any special

16-19  fuel supplier, special fuel [exporter,] dealer, special fuel [dealer]

16-20  exporter, special fuel transporter or special fuel user, if such other

16-21  state, district, territory or possession furnishes similar information to

16-22  this state.

16-23     Sec. 39.  NRS 366.203 is hereby amended to read as follows:

16-24     366.203  1.  Special fuel, other than compressed natural gas,

16-25  liquefied petroleum gas or kerosene, which is exempt from the tax

16-26  pursuant to subsection 3 or 4 of NRS 366.200 must be dyed before it

16-27  is removed for distribution from a rack. The dye added to the

16-28  exempt special fuel must be of the color and concentration required

16-29  by the regulations adopted by the Secretary of the Treasury pursuant

16-30  to 26 U.S.C. § 4082.

16-31     2.  Except as otherwise provided in subsections 3 and 4, a

16-32  person shall not operate or maintain on any highway in this state a

16-33  motor vehicle which contains in the fuel tank of that vehicle special

16-34  fuel which has been dyed. A person who operates or maintains a

16-35  motor vehicle in violation of this subsection and the registered

16-36  owner of the motor vehicle are jointly and severally liable for any

16-37  taxes, penalties and interest payable to the Department.

16-38     3.  A person who, pursuant to subsection 2, 3 or 4 of NRS

16-39  366.200 is exempt from the tax imposed by this chapter, may

16-40  operate or maintain a motor vehicle on a highway in this state which

16-41  contains in the fuel tank of that vehicle special fuel which has been

16-42  dyed.

16-43     4.  A person may operate or maintain on a highway in this state

16-44  any special mobile equipment or farm equipment that contains in the


17-1  fuel tank of the special mobile equipment or farm equipment special

17-2  fuel which has been dyed. As used in this subsection:

17-3      (a) “Farm equipment” means any self-propelled machinery or

17-4  motor vehicle that is designed solely for tilling soil or for

17-5  cultivating, harvesting or transporting crops or other agricultural

17-6  products from a field or other area owned or leased by the operator

17-7  of the farm equipment and in which the crops or agricultural

17-8  products are grown, to a field, yard, silo, cellar, shed or other facility

17-9  which is:

17-10         (1) Owned or leased by the operator of the farm equipment;

17-11  and

17-12         (2) Used to store or process the crops or agricultural

17-13  products.

17-14  The term includes a tractor, baler or swather or any implement used

17-15  to retrieve hay.

17-16     (b) “Highway” does not include a controlled-access highway as

17-17  defined in NRS 484.041.

17-18     5.  There is a rebuttable presumption that all special fuel which

17-19  has not been dyed and which is sold or distributed in this state is for

17-20  the purpose of propelling a motor vehicle.

17-21     Sec. 40.  NRS 366.220 is hereby amended to read as follows:

17-22     366.220  1.  Except as otherwise provided in this chapter, it is

17-23  unlawful for any [special] :

17-24     (a) Special fuel supplier, special fuel dealer or special fuel user

17-25  to sell or use special fuel within this state unless the special fuel

17-26  supplier, special fuel dealer or special fuel user is the holder of a

17-27  special fuel supplier’s, special fuel dealer’s or special fuel user’s

17-28  license issued to him by the Department.

17-29     (b) Person to be a:

17-30         (1) Special fuel exporter unless the person is the holder of a

17-31  special fuel exporter’s license issued to him by the Department.

17-32         (2) Special fuel transporter unless the person is the holder

17-33  of a special fuel transporter’s license issued to him by the

17-34  Department.

17-35     2.  The Department may adopt regulations relating to the

17-36  issuance of any special fuel supplier’s, special fuel dealer’s , special

17-37  fuel exporter’s, special fuel transporter’s or special fuel user’s

17-38  license and the collection of fees therefor.

17-39     Sec. 41.  NRS 366.240 is hereby amended to read as follows:

17-40     366.240  1.  [The] Except as otherwise provided in subsection

17-41  2, the Department shall:

17-42     (a) Upon receipt of the application and bond in proper form,

17-43  issue to the applicant a special fuel supplier’s or special fuel dealer’s

17-44  license.


18-1      (b) Upon receipt of the application in proper form, issue to the

18-2  applicant a special fuel exporter’s, special fuel transporter’s or

18-3  special fuel user’s license.

18-4      2.  The Department may refuse to issue a [special fuel

18-5  supplier’s, special fuel dealer’s license or special fuel user’s] license

18-6  pursuant to this section to any person:

18-7      (a) Who formerly held a [special fuel license in this state,]

18-8  license issued pursuant to this chapter or a similar license of any

18-9  other state, the District of Columbia, the United States, a territory or

18-10  possession of the United States or any foreign country which, before

18-11  the time of filing the application, has been revoked for cause;

18-12     (b) Who applies as a subterfuge for the real party in interest

18-13  whose license, before the time of filing the application, has been

18-14  revoked for cause;

18-15     (c) Who, if he is a special fuel supplier or special fuel dealer,

18-16  neglects or refuses to furnish a bond as required by this chapter;

18-17     (d) Who is in default in the payment of a tax on special fuel in

18-18  this state, any other state, the District of Columbia, the United

18-19  States, a territory or possession of the United States or any foreign

18-20  country; [or]

18-21     (e) Who has failed to comply with any provision of this

18-22  chapter; or

18-23     (f) Upon other sufficient cause being shown.

18-24     Sec. 42.  NRS 366.250 is hereby amended to read as follows:

18-25     366.250  Any applicant whose application for a special fuel

18-26  supplier’s license, special fuel dealer’s license , special fuel

18-27  exporter’s license, special fuel transporter’s license or special

18-28  fuel user’s license has been denied may petition the Department for

18-29  a hearing. The Department shall:

18-30     1.  Grant the applicant a hearing.

18-31     2.  Provide to the [person,] applicant, not less than 10 days

18-32  before the hearing, written notice of the time and place of the

18-33  hearing.

18-34     Sec. 43.  NRS 366.260 is hereby amended to read as follows:

18-35     366.260  1.  [Each special fuel supplier’s license or special

18-36  fuel dealer’s] A license issued pursuant to this chapter:

18-37     (a) Except as otherwise provided in subsection 2, is valid until

18-38  suspended [or revoked for cause or otherwise] , revoked or

18-39  cancelled.

18-40     (b) Is not transferable.

18-41     2.  Each special fuel user’s license is valid for [the] a calendar

18-42  year unless suspended [or revoked for cause or otherwise cancelled.

18-43     3. The license of a special fuel supplier, special fuel dealer or

18-44  special fuel user is not transferable.] , revoked or cancelled.

 


19-1      Sec. 44.  NRS 366.270 is hereby amended to read as follows:

19-2      366.270  [Whenever] If any person ceases to be a special fuel

19-3  supplier, special fuel dealer , special fuel exporter, special fuel

19-4  transporter or special fuel user within [the] this state by reason of

19-5  the discontinuance, sale or transfer of his business, he shall:

19-6      1.  Notify the Department in writing at the time the

19-7  discontinuance, sale or transfer takes effect. The notice must give

19-8  the date of the discontinuance [and, in the event of a sale, the date

19-9  thereof] , sale or transfer, and the name and address of [the] any

19-10  purchaser or transferee.

19-11     2.  Surrender to the Department the license issued to him by the

19-12  Department.

19-13     3.  If he is [a] :

19-14     (a) A special fuel user, file [a quarterly] the tax return required

19-15  pursuant to NRS 366.380 and pay all taxes, interest and penalties

19-16  required pursuant to this chapter and chapter 360A of NRS ,

19-17  [366.370 and 366.380,] except that both the filing and payment are

19-18  due on or before the last day of the month following the month of

19-19  the discontinuance, sale or transfer of the business.

19-20     [4.  If he is a]

19-21     (b) A special fuel supplier, file [a monthly] the tax return

19-22  required pursuant to NRS 366.383 and pay all taxes, interest and

19-23  penalties required pursuant to this chapter and chapter 360A of

19-24  NRS [366.370 and 366.383] on or before the last day of the month

19-25  following the month of the discontinuance, sale or transfer of the

19-26  business.

19-27     [5.  If he is a]

19-28     (c) A special fuel dealer, file [a monthly] the tax return required

19-29  pursuant to NRS 366.386 and pay all taxes, interest and penalties

19-30  required pursuant to [NRS 366.370 and 366.386] this chapter and

19-31  chapter 360A of NRS, except that both the filing and payment are

19-32  due on or before the last day of the month following the month of

19-33  the discontinuance, sale or transfer of the business.

19-34     (d) A special fuel exporter, file the report required pursuant to

19-35  NRS 366.387 on or before the last day of the month following the

19-36  month of the discontinuance, sale or transfer of the business.

19-37     (e) A special fuel transporter, file the report required pursuant

19-38  to NRS 366.695 within 25 days after the end of the month of the

19-39  discontinuance, sale or transfer of the business.

19-40     Sec. 45.  NRS 366.350 is hereby amended to read as follows:

19-41     366.350  1.  The Department may revoke the license of any

19-42  special fuel dealer, special fuel supplier , special fuel exporter,

19-43  special fuel transporter or special fuel user for reasonable cause[.] ,

19-44  including, without limitation, refusing or neglecting to comply

19-45  with the provisions of this chapter.


20-1      2.  Before revoking a license, the Department shall send a

20-2  notice by registered or certified mail to the licensee at his last

20-3  known address ordering him to appear before the Department at a

20-4  time not less than 10 days after the mailing of the notice and show

20-5  cause why the license should not be revoked.

20-6      Sec. 46.  NRS 366.370 is hereby amended to read as follows:

20-7      366.370  1.  Except as otherwise provided in [subsections 4

20-8  and 5 and NRS 366.380,] this chapter, the excise tax imposed by

20-9  this chapter with respect to the use or sale of special fuel during any

20-10  calendar quarter is due on or before the last day of the first month

20-11  following the quarterly period to which it relates.

20-12     2.  If the due date falls on a Saturday, Sunday or legal holiday,

20-13  the next business day is the final due date.

20-14     3.  Payment shall be deemed received on the date shown by the

20-15  cancellation mark stamped by the United States Postal Service or

20-16  the postal service of any other country upon an envelope containing

20-17  payment properly addressed to the Department.

20-18     4.  A special fuel supplier shall pay the tax imposed by this

20-19  chapter at the time he files his [monthly] tax return pursuant to

20-20  NRS 366.383.

20-21     5.  A special fuel dealer shall pay the tax imposed by this

20-22  chapter at the time he files his [monthly] tax return pursuant to

20-23  NRS 366.386.

20-24     Sec. 47.  NRS 366.386 is hereby amended to read as follows:

20-25     366.386  1.  On or before the last day of the month following

20-26  each [month,] reporting period, a special fuel dealer shall file with

20-27  the Department a tax return for the preceding [month,] reporting

20-28  period, regardless of the amount of tax collected, on a form

20-29  prescribed by the Department.

20-30     2.  The tax return must:

20-31     (a) Include information required by the Department for the

20-32  administration and enforcement of this chapter; and

20-33     (b) Be accompanied by a remittance, payable to the Department,

20-34  for the amount of the tax due.

20-35     3.  Except as otherwise provided in this subsection, the

20-36  reporting period for a special fuel dealer is a calendar month.

20-37  Upon application by a special fuel dealer, the Department may

20-38  assign to the special fuel dealer for a specific calendar year:

20-39     (a) A reporting period consisting of that entire calendar year if

20-40  the Department estimates, based upon the tax returns filed by the

20-41  special fuel dealer for the preceding calendar year, that the special

20-42  fuel dealer will sell not more than 200 gallons of special fuel in

20-43  this state each calendar month of that reporting period.

20-44     (b) Two reporting periods consisting of 6 consecutive calendar

20-45  months, commencing on the first day of January and July,


21-1  respectively, if the Department estimates, based upon the tax

21-2  returns filed by the special fuel dealer for the preceding calendar

21-3  year, that the special fuel dealer will sell more than 200 gallons

21-4  but not more than 500 gallons of special fuel in this state each

21-5  calendar month during those reporting periods.

21-6      (c) Four reporting periods consisting of 3 consecutive months,

21-7  commencing on the first day of January, April, July and October,

21-8  respectively, if the Department estimates, based upon the tax

21-9  returns filed by the special fuel dealer for the preceding calendar

21-10  year, that the special fuel dealer will sell more than 500 gallons

21-11  but less than 5,000 gallons of special fuel in this state each

21-12  calendar month during those reporting periods.

21-13     Sec. 48.  NRS 366.390 is hereby amended to read as follows:

21-14     366.390  1.  Except as otherwise provided in subsection 2, the

21-15  Department shall allow each special fuel supplier to retain an

21-16  amount equal to 2 percent of the amount of the tax collected by the

21-17  special fuel supplier [as a fee for making the collection.] to cover

21-18  the supplier’s costs of collection of the tax and of compliance with

21-19  this chapter, and the supplier’s handling losses occasioned by

21-20  evaporation, spillage or other similar causes.

21-21     2.  A special fuel supplier who fails to submit a tax return when

21-22  due pursuant to [NRS 366.383] this chapter or fails to pay the tax

21-23  when due pursuant to this chapter is not entitled to retain any of

21-24  the [fee] amount authorized pursuant to subsection 1 for any month

21-25  for which a tax return is not filed[.] when due or a payment is not

21-26  made when due.

21-27     Sec. 49.  NRS 366.540 is hereby amended to read as follows:

21-28     366.540  1.  The tax provided for by this chapter must be paid

21-29  by special fuel suppliers, special fuel dealers and special fuel users.

21-30  A special fuel supplier or special fuel dealer shall pay to the

21-31  Department the excise tax he collects from purchasers of special

21-32  fuel with the [monthly] return filed pursuant to NRS 366.383 or

21-33  366.386, respectively. The tax paid by a special fuel user must be

21-34  computed by multiplying the tax rate per gallon provided in this

21-35  chapter by the amount that the number of gallons of special fuel

21-36  consumed by the special fuel user in the propulsion of motor

21-37  vehicles on the highways of this state exceeds the number of gallons

21-38  of special fuel purchases by him.

21-39     2.  Except as otherwise provided in subsection 3, in computing

21-40  the amount of tax on special fuel a special fuel supplier owes to the

21-41  Department, the special fuel supplier may deduct from the amount

21-42  due pursuant to subsection 1 any amount which is due but has not

21-43  been paid by a purchaser who is authorized by the Department to

21-44  defer payment of the tax pursuant to NRS 366.397. If such a


22-1  deduction is claimed, the claim must identify the purchaser and the

22-2  amount of taxes that he failed to pay.

22-3      3.  A special fuel supplier shall not deduct from the amount he

22-4  owes the Department pursuant to subsection 1 any amount which

22-5  has not been paid by a person whose permit to defer the payment of

22-6  the tax has been revoked pursuant to subsection 4 of NRS 366.397

22-7  if, before the special fuel was purchased, the special fuel supplier

22-8  had been notified by the Department pursuant to subsection 5 of

22-9  NRS 366.397 that it had revoked the purchaser’s permit.

22-10     4.  [Each] If the Department determines that a special fuel

22-11  supplier or special fuel dealer has failed to submit a tax return

22-12  when due pursuant to this chapter or failed to pay the tax when

22-13  due pursuant to this chapter, the Department may order the

22-14  special fuel supplier [and] or special fuel dealer [shall] to hold the

22-15  amount of all taxes collected pursuant to this chapter in a separate

22-16  account in trust for the state. The special fuel supplier or special

22-17  fuel dealer shall comply with the order immediately upon

22-18  receiving notification of the order from the Department.

22-19     Sec. 50.  NRS 366.650 is hereby amended to read as follows:

22-20     366.650  1.  If illegally or through error the Department

22-21  collects or receives any excise tax, penalty or interest imposed

22-22  pursuant to this chapter, the excise tax, penalty or interest must be

22-23  refunded to the person who paid the tax, penalty or interest. [Except

22-24  as otherwise provided in NRS 360.235, a] A written application for

22-25  a refund, stating the specific grounds therefor, must be made within

22-26  [36] 12 months after the date of payment, whether or not the excise

22-27  tax, penalty or interest was paid voluntarily or under protest.

22-28     2.  Refunds must be made to a successor, assignee, estate or

22-29  heir of the person if written application is made within the time

22-30  limit.

22-31     3.  Any amount determined to be refundable by the Department

22-32  must be refunded or credited to any amounts then due from the

22-33  special fuel supplier or special fuel dealer.

22-34     4.  All amounts refunded pursuant to the provisions of this

22-35  chapter must be paid from the State Highway Fund on claims

22-36  presented by the Department, approved by the State Board of

22-37  Examiners, and allowed and paid as other claims against the State

22-38  are allowed and paid.

22-39     5.  A licensed special fuel user operating interstate or off road,

22-40  or both, who can prove to the satisfaction of the Department that his

22-41  special fuel purchases in Nevada exceed his use of the special fuel

22-42  over the highways of this state for a certain quarter must apply

22-43  credit to any excise taxes, penalties or interest required by this

22-44  chapter or fees, taxes, penalties or interest applicable pursuant to


23-1  chapter 371, 482 or 706 of NRS and any balance may be refunded

23-2  or credited to succeeding reports.

23-3      6.  A person who wishes to apply for a refund of the tax on

23-4  special fuel paid by him pursuant to subsection 5 of NRS 366.207

23-5  must:

23-6      (a) Submit an application for the refund on a form prescribed by

23-7  the Department; and

23-8      (b) Establish to the satisfaction of the Department that within a

23-9  period of 6 months he purchased not less than 200 gallons of special

23-10  fuel in this state which was used for a purpose that is exempt from

23-11  the tax on special fuel pursuant to NRS 366.200.

23-12  The Department shall refund to an applicant who complies with the

23-13  provisions of this subsection a refund in an amount equal to the tax

23-14  paid by [that person when he purchased the special fuel.] the

23-15  applicant less the percentage allowed the special fuel supplier

23-16  pursuant to NRS 366.390.

23-17     Sec. 51.  NRS 366.695 is hereby amended to read as follows:

23-18     366.695  1.  Every [carrier, whether common, contract or

23-19  private, except a special fuel supplier licensed pursuant to this

23-20  chapter or] special fuel transporter, except a wholesale distributor

23-21  transporting the products of a special fuel supplier licensed pursuant

23-22  to this chapter, who transports special fuel in interstate commerce to

23-23  or from any point within this state, or solely within this state, shall

23-24  report all of those deliveries to the Department . [all deliveries of

23-25  that special fuel.]

23-26     2.  A report must be made for each calendar month and must be

23-27  filed within 25 days after the end of the month for which the report

23-28  is made. The report must show:

23-29     (a) The name and address of every consignor and consignee and

23-30  of every person other than the designated consignee to whom

23-31  delivery has actually been made;

23-32     (b) The date of each delivery;

23-33     (c) The number of gallons of special fuel delivered for each

23-34  delivery; and

23-35     (d) Such other information as the Department may require.

23-36     [3.  The Department or its authorized agents may examine the

23-37  books and records of any carrier during business hours to determine

23-38  whether the carrier is in compliance with the provisions of this

23-39  section.]

23-40     Sec. 52.  NRS 366.720 is hereby amended to read as follows:

23-41     366.720  Any person who:

23-42     1.  Fails or refuses to pay the tax imposed by this chapter;

23-43     2.  Engages in business in this state as a special fuel user,

23-44  special fuel exporter, special fuel dealer or special fuel supplier , or

23-45  acts in this state as a special fuel transporter, without being the


24-1  holder of a license to engage in that business[;] or to act in that

24-2  capacity;

24-3      3.  Fails to make any of the reports required by this chapter;

24-4      4.  Makes any false statement in any application, report or

24-5  statement required by this chapter;

24-6      5.  Refuses to permit the Department or any authorized agent to

24-7  examine records as provided by this chapter;

24-8      6.  Fails to keep proper records of quantities of special fuel

24-9  received, produced, refined, manufactured, compounded, used or

24-10  delivered in this state as required by this chapter;

24-11     7.  Makes any false statement in connection with an application

24-12  for the refund of any money or taxes provided in this chapter;

24-13     8.  Violates the provisions of NRS 366.265;

24-14     9.  Fails or refuses to stop his motor vehicle for an inspection to

24-15  determine if all excise taxes due pursuant to the provisions of this

24-16  chapter are being properly reported and paid; or

24-17     10.  Refuses to allow the Department or an authorized agent to

24-18  inspect a motor vehicle to determine whether all excise taxes due

24-19  pursuant to the provisions of this chapter are being properly reported

24-20  and paid,

24-21  is guilty of a misdemeanor.

24-22     Sec. 53.  NRS 373.090 is hereby amended to read as follows:

24-23     373.090  [1.] For the purpose of the tax imposed by an

24-24  ordinance enacted pursuant to this chapter, motor vehicle fuel is sold

24-25  at the place where it is [distributed from a terminal.

24-26     2.  As used in this section, “terminal” has the meaning ascribed

24-27  to it in NRS 365.088.] delivered into a vehicle not belonging to the

24-28  seller or into a stationary tank on the premises of the buyer.

24-29     Sec. 54.  This act becomes effective upon passage and approval

24-30  for the purpose of adopting regulations and taking such other actions

24-31  as are necessary to carry out the provisions of this act, and on

24-32  October 1, 2003, for all other purposes.

 

24-33  H