A.C.R. 17


Assembly Concurrent Resolution No. 17--Committee on 
    Taxation

                  March 29, 1995
                 _____________

         Referred to Committee on Taxation


SUMMARY--Directs Department of Taxation to review and 
          revise regulations governing collection of 
          taxes on retail sales of food prepared for 
          immediate consumption. (BDR R-956)




EXPLANATION--Matter in italics is new; matter in bra
ckets [ ] is material to be omitted.

ASSEMBLY CONCURRENT RESOLUTION--Directing the Department of Taxation 
        to review and revise regulations governing the collection of 
        taxes on the retail sale of food prepared for immediate 
        consumption.


  WHEREAS, On June 5, 1979, the people of the 
State of Nevada enacted an exemption for the retail sale of 
food from the sales and use tax; and
  WHEREAS, The exemption for the retail sale of 
food contains an exception for food prepared for immediate 
consumption; and
  WHEREAS, The provisions enacted in 1979 stated 
that the exemption of food for human consumption from the 
sales and use tax and local school support tax must be 
strictly construed and be applied only to those foods and 
beverages commonly purchased for preparation and consumption 
at home; and
  WHEREAS, Changes in modern marketing 
techniques have blurred the distinction between food sold in 
restaurants for immediate consumption and food sold in 
grocery stores which requires no additional preparation; and
  WHEREAS, Fairness and equal treatment now 
require a review and revision of the current policies on 
this issue, particularly the definition of the term 
"immediate consumption"; now, therefore, be it
  RESOLVED BY THE ASSEMBLY OF THE STATE OF NEVADA, THE 
SENATE CONCURRING, That the Executive Director of the 
Department of Taxation is hereby directed to review and 
propose, as necessary, to the Nevada Tax Commission 
regulations concerning the taxation of the retail sale of 
food; and be it further
  RESOLVED, That the Executive Director in his 
review of current regulations shall consider the changing 
nature of the food and marketing industry since the 
particular provisions were enacted in 1979; and be it 
further
  RESOLVED, That the provisions contained in 
chapter 233B of NRS notwithstanding, the Nevada Tax 
Commission shall provide heightened public notice and 
several public hearings in many different localities 
regarding any resulting proposed changes to the regulations 
concerning the taxation of the retail sale of food; and be 
it further
  RESOLVED, That the Chief Clerk of the 
Assembly prepare and transmit a copy of this resolution to 
the Nevada Tax Commission and to the Executive Director of 
the Department of Taxation.

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