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).

1-1 Section 1. At the general election on November 7, 2000, a proposal

1-2 must be submitted to the registered voters of this state to amend the Sales

1-3 and Use Tax Act, which was enacted by the 47th session of the legislature

1-4 of the State of Nevada and approved by the governor in 1955, and

1-5 subsequently approved by the people of this state at the general election

1-6 held on November 6, 1956.

1-7 Sec. 2. At the time and in the manner provided by law, the secretary

1-8 of state shall transmit the proposed act to the several county clerks, and the

1-9 county clerks shall cause it to be published and posted as provided by law.

1-10 Sec. 3. The proclamation and notice to the voters given by the county

1-11 clerks pursuant to law must be in substantially the following form:

1-12 Notice is hereby given that at the general election on November 7,

1-13 2000, a question will appear on the ballot for the adoption or rejection

1-14 by the registered voters of the state of the following proposed act:

2-1 AN ACT to amend an act entitled "An Act to provide revenue for the

2-2 State of Nevada; providing for sales and use taxes; providing for the

2-3 manner of collection; defining certain terms; providing penalties for

2-4 violation, and other matters properly relating thereto." approved March

2-5 29, 1955, as amended.

2-6 THE PEOPLE OF THE STATE OF NEVADA
2-7 DO ENACT AS FOLLOWS:

2-8 Section 1. Section 56.1 of the above-entitled act, being chapter

2-9 397, Statutes of Nevada 1955, as added by chapter 306, Statutes of

2-10 Nevada 1969, as last amended by chapter 404, Statutes of Nevada

2-11 1995, at page 1008, is hereby amended to read as follows:

2-12 Section 56.1 1. There are exempted from the taxes imposed

2-40 diagnosis, cure, mitigation, treatment or prevention of disease or

3-1 affliction of the human body and which is commonly recognized as

3-2 a substance or preparation intended for such use. The term includes

3-3 splints, bandages, pads, compresses and dressings.

3-4 [(b)] (c) "Medicine" does not include:

3-5 (1) Any [auditory,] ophthalmic or ocular device or appliance.

3-6 (2) Articles which are in the nature of instruments, crutches,

3-7 canes, devices or other mechanical, electronic, optical or physical

3-8 equipment.

3-9 (3) Any alcoholic beverage, except where the alcohol merely

3-10 provides a solution in the ordinary preparation of a medicine.

3-11 (4) Braces or supports, other than those prescribed or applied

3-12 by a licensed provider of health care, within his scope of practice,

3-13 for human use.

3-14 3. Insulin furnished by a registered pharmacist to a person for

3-15 treatment of diabetes as directed by a physician shall be deemed to

3-16 be dispensed on a prescription within the meaning of this section.

3-17 Sec. 2. This act becomes effective on January 1, 2001.

3-18 Sec. 4. The ballot page assemblies and the paper ballots to be used in

3-19 voting on the question must present the question in substantially the

3-20 following form:

3-21 Shall the Sales and Use Tax Act of 1955 be amended to provide an

3-22 exemption from the taxes imposed by this act on the gross receipts

3-23 from the sale and storage, use or other consumption of hearing aids?

3-24 Yes ¨ No ¨

3-25 Sec. 5. The explanation of the question that must appear on each

3-26 paper ballot and sample ballot and in every publication and posting of

3-27 notice of the question must be in substantially the following form:

3-28 (Explanation of Question)

3-29 The proposed amendment to the Sales and Use Tax Act of 1955

3-30 would exempt from the taxes imposed by this act the gross receipts

3-31 from the sale and storage, use or other consumption of hearing aids. If

3-32 this proposal is adopted, the legislature has provided that the Local

3-33 School Support Tax Law and the City-County Relief Tax Law will be

3-34 amended to provide the same exemption.

3-35 Sec. 6. If a majority of the votes cast on the question is yes, the

3-36 amendment to the Sales and Use Tax Act of 1955 becomes effective on

3-37 January 1, 2001. If less than a majority of votes cast on the question is yes,

3-38 the question fails and the amendment to the Sales and Use Tax Act of 1955

3-39 does not become effective.

3-40 Sec. 7. All general election laws not inconsistent with this act are

3-41 applicable.

4-1 Sec. 8. Any informalities, omissions or defects in the content or

4-2 making of the publications, proclamations or notices provided for in this

4-3 act and by the general election laws under which this election is held must

4-4 be so construed as not to invalidate the adoption of the act by a majority of

4-5 the registered voters voting on the question if it can be ascertained with

4-6 reasonable certainty from the official returns transmitted to the office of

4-7 the secretary of state that the proposed amendment was adopted by a

4-8 majority of those registered voters.

4-9 Sec. 9. NRS 374.287 is hereby amended to read as follows:

4-10 374.287 1. There are exempted from the taxes imposed by this

5-1 [(b)] (c) "Medicine" does not include:

5-2 (1) [Any auditory device or appliance.

5-3 (2)] Articles which are in the nature of instruments, crutches, canes,

5-4 devices or other mechanical, electronic, optical or physical equipment.

5-5 [(3)] (2) Any alcoholic beverage, except where the alcohol merely

5-6 provides a solution in the ordinary preparation of a medicine.

5-7 [(4)] (3) Braces or supports, other than those prescribed or applied

5-8 by a licensed provider of health care, within his scope of practice, for

5-9 human use.

5-10 3. Insulin furnished by a registered pharmacist to a person for

5-11 treatment of diabetes as directed by a physician shall be deemed to be

5-12 dispensed on a prescription within the meaning of this section.

5-13 Sec. 10. Section 9 of this act becomes effective on January 1, 2001,

5-14 only if the proposal submitted pursuant to sections 1 to 5, inclusive, of this

5-15 act is approved by the voters at the general election on November 7, 2000.