Assembly Bill No. 207–Assemblymen Claborn, de Braga, Koivisto, Price,

Collins, Anderson, Giunchigliani, Ohrenschall, McClain, Leslie,

Chowning, Mortenson and Humke

CHAPTER........

AN ACT relating to taxation; providing under certain circumstances that a local or state

apprenticeship committee or an organization that sponsors programs of

apprenticeship is an organization created for educational purposes for the purpose of

an exemption from sales and use taxes and certain analogous taxes; 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 372.3261 is hereby amended to read as follows:

  1. 372.3261 1. For the purposes of NRS 372.326, an organization is
  1. created for religious, charitable or educational purposes if it complies with
  1. the provisions of this section.
  1. 2. An organization is created for religious purposes if:
  1. (a) It complies with the requirements set forth in subsection 5; and
  1. (b) The sole or primary purpose of the organization is the operation of a
  1. church, synagogue or other place of religious worship at which nonprofit
  1. religious services and activities are regularly conducted. Such an
  1. organization includes, without limitation, an integrated auxiliary or affiliate
  1. of the organization, men’s, women’s or youth groups established by the
  1. organization, a school or mission society operated by the organization, an
  1. organization of local units of a church and a convention or association of
  1. churches.
  1. 3. An organization is created for charitable purposes if:
  1. (a) It complies with the requirements set forth in subsection 5;
  1. (b) The sole or primary purpose of the organization is to:
  1. (1) Advance a public purpose, donate or render gratuitously or at a
  1. reduced rate a substantial portion of its services to the persons who are the
  1. subjects of its charitable services, and benefit a substantial and indefinite
  1. class of persons who are the legitimate subjects of charity; or
  1. (2) Provide services that are otherwise required to be provided by a
  1. local government, this state or the Federal Government; and
  1. (c) The organization is operating in this state.
  1. 4. An organization is created for educational purposes if:
  1. (a) It complies with the requirements set forth in subsection 5; and
  1. (b) The sole or primary purpose of the organization is to:
  1. (1) Provide athletic, cultural or social activities for children;
  1. (2) Provide displays or performances of the visual or performing arts
  1. to members of the general public;
  1. (3) Provide instruction and disseminate information on subjects
  1. beneficial to the community; [or]
  2. (4) Operate a school, college or university located in this state that
  1. conducts regular classes and provides courses of study required for
  1. accreditation or licensing by the state board of education or the commission
  1. of postsecondary education, or for membership in the Northwest
  1. Association of Schools and Colleges [.] ;
  1. (5) Serve as a local or state apprenticeship committee to advance
  1. programs of apprenticeship in this state; or
  1. (6) Sponsor programs of apprenticeship in this state through a trust
  1. created pursuant to 29 U.S.C. § 186.
  1. 5. In addition to the requirements set forth in subsection 2, 3 or 4, an
  1. organization is created for religious, charitable or educational purposes if:
  1. (a) No part of the net earnings of any such organization inures to the
  1. benefit of a private shareholder, individual or entity;
  1. (b) The business of the organization is not conducted for profit;
  1. (c) No substantial part of the business of the organization is devoted to
  1. the advocacy of any political principle or the defeat or passage of any state
  1. or federal legislation;
  1. (d) The organization does not participate or intervene in any political
  1. campaign on behalf of or in opposition to any candidate for public office;
  1. and
  1. (e) Any property sold to the organization for which an exemption is
  1. claimed is used by the organization in this state in furtherance of the
  1. religious, charitable or educational purposes of the organization.

Sec. 2. NRS 374.3306 is hereby amended to read as follows:

  1. 374.3306 1. For the purposes of NRS 374.3305, an organization is
  1. created for religious, charitable or educational purposes if it complies with
  1. the provisions of this section.
  1. 2. An organization is created for religious purposes if:
  1. (a) It complies with the requirements set forth in subsection 5; and
  1. (b) The sole or primary purpose of the organization is the operation of a
  1. church, synagogue or other place of religious worship at which nonprofit
  1. religious services and activities are regularly conducted. Such an
  1. organization includes, without limitation, an integrated auxiliary or affiliate
  1. of the organization, men’s, women’s or youth groups established by the
  1. organization, a school or mission society operated by the organization, an
  1. organization of local units of a church and a convention or association of
  1. churches.
  1. 3. An organization is created for charitable purposes if:
  1. (a) It complies with the requirements set forth in subsection 5;
  1. (b) The sole or primary purpose of the organization is to:
  1. (1) Advance a public purpose, donate or render gratuitously or at a
  1. reduced rate a substantial portion of its services to the persons who are the
  1. subjects of its charitable services, and benefit a substantial and indefinite
  1. class of persons who are the legitimate subjects of charity; or
  1. (2) Provide services that are otherwise required to be provided by a
  1. local government, this state or the Federal Government; and
  2. (c) The organization is operating in this state.
  1. 4. An organization is created for educational purposes if:
  1. (a) It complies with the requirements set forth in subsection 5; and
  1. (b) The sole or primary purpose of the organization is to:
  1. (1) Provide athletic, cultural or social activities for children;
  1. (2) Provide displays or performances of the visual or performing arts
  1. to members of the general public;
  1. (3) Provide instruction and disseminate information on subjects
  1. beneficial to the community; [or]
  1. (4) Operate a school, college or university located in this state that
  1. conducts regular classes and provides courses of study required for
  1. accreditation or licensing by the state board of education or the commission
  1. of postsecondary education, or for membership in the Northwest
  1. Association of Schools and Colleges [.] ;
  1. (5) Serve as a local or state apprenticeship committee to advance
  1. programs of apprenticeship in this state; or
  1. (6) Sponsor programs of apprenticeship in this state through a trust
  1. created pursuant to 29 U.S.C. § 186.
  1. 5. In addition to the requirements set forth in subsection 2, 3 or 4, an
  1. organization is created for religious, charitable or educational purposes if:
  1. (a) No part of the net earnings of any such organization inures to the
  1. benefit of a private shareholder, individual or entity;
  1. (b) The business of the organization is not conducted for profit;
  1. (c) No substantial part of the business of the organization is devoted to
  1. the advocacy of any political principle or the defeat or passage of any state
  1. or federal legislation;
  1. (d) The organization does not participate or intervene in any political
  1. campaign on behalf of or in opposition to any candidate for public office;
  1. and
  1. (e) Any property sold to the organization for which an exemption is
  1. claimed is used by the organization in this state in furtherance of the
  1. religious, charitable or educational purposes of the organization.

Sec. 3. This act becomes effective on July 1, 1999.

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