NRS: CHAPTER 375B - GENERATION-SKIPPING TRANSFER TAX

[Rev. 6/29/2024 3:50:05 PM--2023]

CHAPTER 375B - GENERATION-SKIPPING TRANSFER TAX

GENERAL PROVISIONS

NRS 375B.010 Definitions.

NRS 375B.020 “Direct skip” defined.

NRS 375B.030 “Federal credit” defined.

NRS 375B.040 “Generation-skipping transfer” defined.

NRS 375B.050 “Person liable” defined.

IMPOSITION OF TAX

NRS 375B.100 Amount of tax imposed.

NRS 375B.110 Determination of federal credit attributable to certain property situated in Nevada.

PAYMENTS AND DETERMINATIONS

NRS 375B.150 Return: Person liable for payment required to file; time for filing; regulations.

NRS 375B.160 Return: Extension of time for filing.

NRS 375B.170 Filing of amended return; additional tax.

NRS 375B.180 Determination of tax due: Person liable to give notice of determination; additional tax; acceptance of determination by United States.

NRS 375B.190 Penalty for failure to file timely return; waiver.

NRS 375B.200 Determination of tax upon failure to file return or upon filing of false or fraudulent return.

NRS 375B.210 Determination of deficiency: Generally.

NRS 375B.220 Determination of deficiency: Correction of erroneous determination.

NRS 375B.230 Determination of deficiency: Appeal; action for modification of tax; notice of determination.

NRS 375B.240 Liability for tax; time for payment.

NRS 375B.250 Interest on delinquent payments.

NRS 375B.260 Payment to be applied to interest, penalty and tax.

NRS 375B.270 Bond for payment of tax.

NRS 375B.280 Refund of overpayment.

COLLECTION OF TAX

NRS 375B.300 Action to enforce claim for tax.

NRS 375B.310 Lien for unpaid tax, interest or penalty; expiration and extinguishment of lien.

NRS 375B.320 Warrant for enforcement of lien; levy and sale.

NRS 375B.330 Fees, commissions and expenses for enforcement of lien.

NRS 375B.340 Writ of execution for enforcement of judgment.

NRS 375B.350 Time for commencement of proceedings for collection.

NRS 375B.360 Certificate by Department prima facie evidence in proceeding for collection.

NRS 375B.370 Action to prevent or enjoin collection of tax barred.

NRS 375B.380 Suits for collection in other states authorized; suits for collection by officers of other states authorized.

NRS 375B.390 Remedies of State cumulative; no election of remedies.

DISTRIBUTION OF PROCEEDS

NRS 375B.400 Deposit, separate accounting and expenditure of proceeds.

NRS 375B.410 Authorized use of proceeds.

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GENERAL PROVISIONS

NRS 375B.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 375B.020 to 375B.050, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1989, 1495)

NRS 375B.020 “Direct skip” defined. “Direct skip” means a transfer as defined in 26 U.S.C. § 2612.

(Added to NRS by 1989, 1495)

NRS 375B.030 “Federal credit” defined. “Federal credit” means the maximum amount of the credit against the federal generation-skipping transfer tax for state generation-skipping transfer tax allowed by 26 U.S.C. § 2604.

(Added to NRS by 1989, 1495)

NRS 375B.040 “Generation-skipping transfer” defined. “Generation-skipping transfer” has the meaning ascribed to it in 26 U.S.C. § 2611.

(Added to NRS by 1989, 1495)

NRS 375B.050 “Person liable” defined. The “person liable” for paying the generation-skipping transfer tax is the person having “personal liability” pursuant to 26 U.S.C. § 2603.

(Added to NRS by 1989, 1495)

IMPOSITION OF TAX

NRS 375B.100 Amount of tax imposed.

1. Except as otherwise provided in subsection 2, a tax is hereby imposed on the generation-skipping transfer other than a direct skip, that occurs at the same time as and as a result of the death of a person in the amount of the maximum credit allowable against the federal generation-skipping transfer tax for the payment of state generation-skipping transfer taxes.

2. The tax imposed by subsection 1 is reduced by the apportioned amount of the generation-skipping transfer taxes collected by another state.

(Added to NRS by 1989, 1495)

NRS 375B.110 Determination of federal credit attributable to certain property situated in Nevada. If the generation-skipping transfer includes property having a situs in this State and in another state the portion of the federal credit which is attributable to the property having a situs in Nevada must be determined in the following manner:

1. For the purpose of apportioning the federal credit, the gross value of the property must be that value finally determined for the purposes of the federal generation-skipping transfer tax.

2. The federal credit must be multiplied by the percentage which the gross value of property having a situs in Nevada bears to the gross value of the entire transfer which is subject to federal generation-skipping transfer tax.

3. The product determined pursuant to subsection 2 is the portion of the federal credit which is attributable to property having a situs in Nevada.

(Added to NRS by 1989, 1496)

PAYMENTS AND DETERMINATIONS

NRS 375B.150 Return: Person liable for payment required to file; time for filing; regulations.

1. The person liable for paying the generation-skipping transfer tax imposed by NRS 375B.100 who is required to file a United States estate and generation-skipping transfer tax return or a United States gift and generation-skipping transfer tax return shall file with the Department on or before the date the United States tax return is required to be filed, a copy of the United States tax return and any documentation concerning the amount owed to the State of Nevada which is required by the Department.

2. The Department shall adopt regulations to require sufficient documentation of the amount due to the State of Nevada pursuant to this chapter.

(Added to NRS by 1989, 1496)

NRS 375B.160 Return: Extension of time for filing. If the person liable for the generation-skipping transfer tax has obtained an extension of time for filing the United States estate and generation-skipping transfer tax return or the United States gift and generation-skipping transfer tax return, the filing required by NRS 375B.150 must be similarly extended until the end of the period granted in the extension of time for filing the United States tax return if a true copy of the United States extension is filed with the Department.

(Added to NRS by 1989, 1496)

NRS 375B.170 Filing of amended return; additional tax. If the person liable for the generation-skipping transfer tax files an amended United States estate and generation-skipping transfer tax return or an amended United States gift and generation-skipping transfer tax return, he or she shall immediately file with the Department a true copy of the amended United States tax return. If the person liable for the generation-skipping transfer tax is required to pay an additional amount pursuant to NRS 375B.100 because of the changes on the amended return, he or she shall pay that additional amount, together with any interest as provided in NRS 375B.250, at the same time the amended return is filed.

(Added to NRS by 1989, 1496)

NRS 375B.180 Determination of tax due: Person liable to give notice of determination; additional tax; acceptance of determination by United States.

1. Upon final determination of the federal generation-skipping transfer tax due, the person liable for the tax shall, within 60 days after that determination, give written notice of it to the Department. If any additional tax is due under NRS 375B.100 by reason of this determination, the person liable for the tax shall pay the tax, together with interest as provided in NRS 375B.250, at the same time he or she files the notice.

2. The State of Nevada shall accept the determination by the United States of the amount of the generation-skipping transfer without further audit.

(Added to NRS by 1989, 1496)

NRS 375B.190 Penalty for failure to file timely return; waiver. If the return required by NRS 375B.150 is not filed within the time specified in that section or the extension specified in NRS 375B.160, the person liable for the tax shall pay, except as otherwise provided in NRS 360.232 and 360.320, and in addition to the interest provided in NRS 375B.250, a penalty equal to 5 percent of the tax due, as finally determined, for each month or portion of a month during which that failure to file continues, not exceeding 25 percent in the aggregate, unless it is shown that there was reasonable cause for the failure to file. If a similar penalty for failure to file timely the federal estate tax return is waived, that waiver shall be deemed to constitute reasonable cause for purposes of this section.

(Added to NRS by 1989, 1497; A 1999, 2502)

NRS 375B.200 Determination of tax upon failure to file return or upon filing of false or fraudulent return. In the case of a false or fraudulent return or failure to file a return, the Department may determine the tax at any time.

(Added to NRS by 1989, 1497)

NRS 375B.210 Determination of deficiency: Generally.

1. In a case not involving a false or fraudulent return or failure to file a return, if the Department determines at any time after the tax is due, but not later than 4 years after the return is filed unless a longer period is provided by federal law, that the tax disclosed in any return required to be filed by this chapter is less than the tax owed to the State of Nevada, a deficiency must be determined. That determination may also be made within such time after the expiration of the period as may be agreed upon in writing between the Department and the person liable for the tax.

2. For purposes of this section, a return filed before the last day prescribed by law for filing that return must be considered as filed on that last day.

(Added to NRS by 1989, 1497; A 1991, 1409)

NRS 375B.220 Determination of deficiency: Correction of erroneous determination. If a deficiency has been determined in an erroneous amount, the Department may, within 3 years after the erroneous determination was made, set aside the determination or issue an amended determination in the correct amount.

(Added to NRS by 1989, 1497)

NRS 375B.230 Determination of deficiency: Appeal; action for modification of tax; notice of determination.

1. If it is claimed that a deficiency has been determined in an erroneous amount, any person who is liable for the tax may appeal the determination to the Nevada Tax Commission pursuant to NRS 360.245. If the person who is liable for the tax is aggrieved by the decision of the Commission on appeal, he or she may, within 3 years after the determination was made, bring an action against the State of Nevada in the district court having jurisdiction over the property which was transferred to have the tax modified in whole or in part.

2. The Department shall give notice of the deficiency determined, together with any penalty for failure to file a return, by personal service or by mail to the person filing the return at the address stated in the return, or, if no return is filed, to the person liable for the tax. Copies of the notice of deficiency may in the same manner be given to such other persons as the Department deems advisable.

(Added to NRS by 1989, 1497; A 1999, 2502)

NRS 375B.240 Liability for tax; time for payment. The tax imposed by NRS 375B.100:

1. Must be paid by the person liable for the tax. Liability for payment of the tax continues until the tax is paid.

2. Is due on or before the date the federal generation-skipping transfer tax imposed by 26 U.S.C. § 2601 is due.

(Added to NRS by 1989, 1497)

NRS 375B.250 Interest on delinquent payments.

1. Except as otherwise provided in NRS 360.232 and 360.320, if the tax is paid after the due date, the tax bears interest at the rate set by the Executive Director, from the due date of the return.

2. The Executive Director shall set and maintain the rate of interest for late payments at the highest rate permissible pursuant to Section 4 of Article 10 of the Nevada Constitution.

(Added to NRS by 1989, 1497; A 1999, 2502)

NRS 375B.260 Payment to be applied to interest, penalty and tax. Every payment received by the Department on the tax imposed by NRS 375B.100 must be applied:

1. To any interest due on the tax;

2. To any penalty; and

3. If there is any balance, to the tax itself,

Ê in that order.

(Added to NRS by 1989, 1498)

NRS 375B.270 Bond for payment of tax.

1. If any person who is liable for the tax fails to pay any portion of the tax imposed by NRS 375B.100 on or before the date the tax is due, he or she must, on motion of the Department, be required by the district court having jurisdiction over the generation-skipping transfer to execute a bond to the State of Nevada in an amount equal to twice the amount of the tax due, with such sureties as the court may approve, conditioned upon the payment of the tax, plus interest on the tax at the rate of interest set by the Executive Director pursuant to NRS 375B.250 commencing on the date the tax became due, unless otherwise provided in NRS 360.232 and 360.320. The bond must be executed within a time certain to be fixed by the court and specified in the bond.

2. The bond must be filed in the office of the clerk of the court, and a certified copy must be immediately transmitted to the Department.

(Added to NRS by 1989, 1498; A 1999, 2502)

NRS 375B.280 Refund of overpayment.

1. Whenever the Department determines that an overpayment of the tax due pursuant to NRS 375B.100 has been made, the person who made payment or his or her estate is entitled to a refund of the amount erroneously paid on presentation of proof satisfactory to the Department that he or she is entitled to a refund.

2. An application for the refund must be made to the Department within 1 year after the date the United States generation-skipping transfer tax has been finally determined.

3. On proof satisfactory to the Department that the applicant is entitled to a refund, the Department shall refund that amount plus interest at the rate established pursuant to NRS 375B.250.

4. The amount of the refund must be paid from the Generation-Skipping Transfer Tax Account in the State General Fund.

(Added to NRS by 1989, 1498)

COLLECTION OF TAX

NRS 375B.300 Action to enforce claim for tax. The State may enforce its claim for any tax imposed by NRS 375B.100 and enforce the lien of the tax by a civil action in any court of competent jurisdiction against any person liable for the tax or against any property subject to the lien.

(Added to NRS by 1989, 1498)

NRS 375B.310 Lien for unpaid tax, interest or penalty; expiration and extinguishment of lien.

1. The tax imposed by NRS 375B.100 becomes a lien upon the generation-skipping transfer on the date of the transfer and remains as such until the tax, interest and penalties owed to the State are paid or the lien is otherwise discharged.

2. If a person who is liable for the generation-skipping transfer tax transfers property which was part of a generation-skipping transfer to a bona fide purchaser or holder of a security interest the lien imposed by subsection 1 attaches at the moment of the transfer to all of the property of the person liable for the tax including property he or she acquires after the transfer, except the property which is transferred to a bona fide purchaser or a holder of a security interest. The lien does not attach to the property transferred to a bona fide purchaser or a holder of a security interest but it attaches to the consideration received for the property by the person who is liable for the tax.

3. The tax owed to the State of Nevada is a lien upon all generation-skipping transfers made during the period for which the return is filed. If the lien is not extinguished or otherwise released or discharged, it expires 10 years after the date a determination of deficiency is issued if, within that period, no notice of the lien has been recorded or filed as provided in NRS 360.450. Except as otherwise provided in this section, the provisions of NRS 360.420 to 360.560, inclusive, apply to the lien.

(Added to NRS by 1989, 1498)

NRS 375B.320 Warrant for enforcement of lien; levy and sale. At any time within 10 years after a person is delinquent in the payment of any tax imposed pursuant to NRS 375B.100 or the interest or penalty thereon, or within 10 years after the last recording or filing of a notice of a lien for taxes, the Department may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the State. The warrant must be directed to any sheriff and has the same effect as a writ of execution. The warrant must be levied and sale made pursuant to it in the same manner and with the same effect as a levy of and sale pursuant to a writ of execution.

(Added to NRS by 1989, 1499)

NRS 375B.330 Fees, commissions and expenses for enforcement of lien.

1. The Department may pay or advance to the sheriff the same fees, commissions and expenses for his or her services as are provided by law for similar services pursuant to a writ of execution. The Department, and not the court, shall approve the fees for publication in a newspaper.

2. The fees, commissions and expenses are obligations of the person liable for the tax imposed pursuant to NRS 375B.100 and any interest and penalty thereon and may be collected from him or her by virtue of the warrant or in any other manner provided for the collection of the tax.

(Added to NRS by 1989, 1499)

NRS 375B.340 Writ of execution for enforcement of judgment.

1. At any time after the tax imposed by NRS 375B.100 is delinquent, the Department may have a writ of execution issued for the enforcement of any judgment rendered in respect to the tax.

2. The writ must be executed against any property of the person liable for payment of the tax, or against any property subject to the lien for the tax.

3. The Department must not be charged a fee for the issuance of execution of the writ.

(Added to NRS by 1989, 1499)

NRS 375B.350 Time for commencement of proceedings for collection. Proceedings for the collection of any tax imposed by NRS 375B.100 may be commenced at any time after the tax is due and within 10 years after the time a determination of deficiency is issued.

(Added to NRS by 1989, 1499; A 1995, 1090)

NRS 375B.360 Certificate by Department prima facie evidence in proceeding for collection. In any proceeding for the enforcement of the tax imposed by NRS 375B.100 a certificate by the Department showing the amount due is prima facie evidence of:

1. The imposition of the tax;

2. The fact that it is due; and

3. Compliance by the Department with all the provisions of this chapter in relation to the computation and determination of the tax.

(Added to NRS by 1989, 1499)

NRS 375B.370 Action to prevent or enjoin collection of tax barred. No injunction or other legal or equitable process must issue in any suit, action or proceeding in any court against this state or any officer of this state to prevent or enjoin the collection of any tax imposed by NRS 375B.100.

(Added to NRS by 1989, 1499)

NRS 375B.380 Suits for collection in other states authorized; suits for collection by officers of other states authorized. The Department may bring suits in the courts of other states to collect taxes payable under this chapter. An officer of another state which extends a like comity to this state may sue for the collection of similar taxes in the courts of this state. A certificate by the secretary of state of another state, under the great seal of that state, that an officer thereof has authority to collect its generation-skipping transfer tax is conclusive evidence of the authority of that officer in any suit for the collection of those taxes in any court of this state.

(Added to NRS by 1989, 1499)

NRS 375B.390 Remedies of State cumulative; no election of remedies. The remedies of the State for the enforcement of the tax imposed by NRS 375B.100 are cumulative, and no action taken by the Department or any other state officer or agency constitutes an election by the State or any of its officers to pursue any remedy to the exclusion of any other remedy for which provision is made.

(Added to NRS by 1989, 1500)

DISTRIBUTION OF PROCEEDS

NRS 375B.400 Deposit, separate accounting and expenditure of proceeds.

1. The Department shall deposit all payments received pursuant to this chapter in the State General Fund.

2. The money deposited in the State General Fund pursuant to subsection 1 must be accounted for separately and may only be expended upon legislative appropriation.

(Added to NRS by 1989, 1500)

NRS 375B.410 Authorized use of proceeds. The money collected pursuant to the provisions of this chapter must be used only for the purpose of education, to be divided between the common schools and the Nevada System of Higher Education for their support and maintenance.

(Added to NRS by 1989, 1500; A 1993, 399; 2005, 366)