Assembly Bill No. 526–Assemblymen Parks, Gibbons, Segerblom, Mortenson, Koivisto, Giunchigliani, Bache, Thomas, Evans, Ohrenschall, Chowning, Collins, Manendo, Williams, Freeman, Claborn, Neighbors, Price
and Berman

March 15, 1999

____________

Referred to Committee on Taxation

 

SUMMARY—Increases tax on transient lodging to fund artistic and cultural programs. (BDR 18-1571)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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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; increasing the mandatory tax on the rental of transient lodging; providing for the use of the additional revenue for artistic and cultural programs; creating the account for artistic and cultural programs; 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. Chapter 233C of NRS is hereby amended by adding

1-2 thereto a new section to read as follows:

1-3 1. The account for artistic and cultural programs is hereby created in

1-4 the state general fund. The director of the council shall administer the

1-5 account. The council shall allocate money in the account for appropriate

1-6 artistic and cultural programs and for no other purpose.

1-7 2. The money in the account must not be used to replace or supplant

1-8 funding available from other sources. The money in the account does not

1-9 lapse to the state general fund at the end of any fiscal year.

1-10 Sec. 2. NRS 244.3352 is hereby amended to read as follows:

1-11 244.3352 1. The board of county commissioners:

1-12 (a) In a county whose population is 400,000 or more, shall impose a tax

1-13 at a rate of [2] 3 percent; and

2-1 (b) In a county whose population is less than 400,000, shall impose a

2-2 tax at the rate of [1] 2 percent,

2-3 of the gross receipts from the rental of transient lodging in that county

2-4 upon all persons in the business of providing lodging. This tax must be

2-5 imposed by the board of county commissioners in each county, regardless

2-6 of the existence or nonexistence of any other license fee or tax imposed on

2-7 the revenues from the rental of transient lodging. The ordinance imposing

2-8 the tax must include a schedule for the payment of the tax and the

2-9 provisions of subsection 4.

2-10 2. The tax imposed pursuant to subsection 1 must be collected and

2-11 administered pursuant to NRS 244.335.

2-12 3. The tax imposed pursuant to subsection 1 may be collected from the

2-13 paying guests and may be shown as an addition to the charge for the rental

2-14 of transient lodging. The person providing the transient lodging is liable to

2-15 the county for the tax whether or not it is actually collected from the

2-16 paying guest.

2-17 4. If the tax imposed pursuant to subsection 1 is not paid within the

2-18 time set forth in the schedule for payment, the county shall charge and

2-19 collect in addition to the tax:

2-20 (a) A penalty of not more than 10 percent of the amount due, exclusive

2-21 of interest, or an administrative fee established by the board of county

2-22 commissioners, whichever is greater; and

2-23 (b) Interest on the amount due at the rate of not more than 1.5 percent

2-24 per month or fraction thereof from the date on which the tax became due

2-25 until the date of payment.

2-26 5. As used in this section, "gross receipts from the rental of transient

2-27 lodging" does not include the tax imposed and collected from paying

2-28 guests pursuant to this section or NRS 268.096.

2-29 Sec. 3. NRS 244.3354 is hereby amended to read as follows:

2-30 244.3354 The proceeds of the tax imposed pursuant to NRS 244.3352

2-31 and any applicable penalty or interest must be distributed as follows:

2-32 1. In a county whose population is 400,000 or more:

2-33 (a) Three-eighths of the first 1 percent of the proceeds must be paid to

2-34 the department of taxation for deposit with the state treasurer for credit to

2-35 the fund for the promotion of tourism.

2-36 (b) One-third of the proceeds must be paid to the department of

2-37 taxation for deposit with the state treasurer for credit to the account for

2-38 artistic and cultural programs.

2-39 (c) The remaining proceeds must be transmitted to the county treasurer

2-40 for deposit in the county school district’s fund for capital projects

2-41 established pursuant to NRS 387.328, to be held and expended in the same

2-42 manner as other money deposited in that fund.

3-1 To reimburse the county for the administrative costs to collect the tax, the

3-2 county treasurer shall deduct and retain 5 percent of the money

3-3 described in paragraph (b) before paying it to the department of taxation.

3-4 2. In a county whose population is less than 400,000:

3-5 (a) [Three-eighths] Three sixteenths must be paid to the department of

3-6 taxation for deposit with the state treasurer for credit to the fund for the

3-7 promotion of tourism.

3-8 (b) [Five-eighths] Five-sixteenths must be deposited with the county

3-9 fair and recreation board created pursuant to NRS 244A.599 or, if no such

3-10 board is created, with the board of county commissioners, to be used to

3-11 advertise the resources of that county related to tourism, including

3-12 available accommodations, transportation, entertainment, natural resources

3-13 and climate, and to promote special events related thereto.

3-14 (c) Thirty-nine eightieths of the proceeds must be paid to the

3-15 department of taxation for deposit with the state treasurer for credit to

3-16 the account for artistic and cultural programs.

3-17 (d) One-eightieth of the proceeds must be deducted and retained by

3-18 the county treasurer for deposit in the county general fund as

3-19 commission for collecting the tax.

3-20 Sec. 4. NRS 268.096 is hereby amended to read as follows:

3-21 268.096 1. The city council or other governing body of each

3-22 incorporated city:

3-23 (a) In a county whose population is 400,000 or more, shall impose a tax

3-24 at a rate of [2] 3 percent; and

3-25 (b) In a county whose population is less than 400,000, shall impose a

3-26 tax at the rate of [1] 2 percent,

3-27 of the gross receipts from the rental of transient lodging in that city upon

3-28 all persons in the business of providing lodging. This tax must be imposed

3-29 by the city council or other governing body of each incorporated city,

3-30 regardless of the existence or nonexistence of any other license fee or tax

3-31 imposed on the revenues from the rental of transient lodging. The

3-32 ordinance imposing the tax must include a schedule for the payment of the

3-33 tax and the provisions of subsection 4.

3-34 2. The tax imposed pursuant to subsection 1 must be collected and

3-35 administered pursuant to NRS 268.095.

3-36 3. The tax imposed pursuant to subsection 1 may be collected from the

3-37 paying guests and may be shown as an addition to the charge for the rental

3-38 of transient lodging. The person providing the transient lodging is liable to

3-39 the city for the tax whether or not it is actually collected from the paying

3-40 guest.

4-1 4. If the tax imposed pursuant to subsection 1 is not paid within the

4-2 time set forth in the schedule for payment, the city shall charge and collect

4-3 in addition to the tax:

4-4 (a) A penalty of not more than 10 percent of the amount due, exclusive

4-5 of interest, or an administrative fee established by the governing body,

4-6 whichever is greater; and

4-7 (b) Interest on the amount due at the rate of not more than 1.5 percent

4-8 per month or fraction thereof from the date on which the tax became due

4-9 until the date of payment.

4-10 5. As used in this section, "gross receipts from the rental of transient

4-11 lodging" does not include the tax imposed or collected from paying guests

4-12 pursuant to this section or NRS 244.3352.

4-13 Sec. 5. NRS 268.0962 is hereby amended to read as follows:

4-14 268.0962 The proceeds of the tax imposed pursuant to NRS 268.096

4-15 and any applicable penalty or interest must be distributed as follows:

4-16 1. In a county whose population is 400,000 or more:

4-17 (a) Three-eighths of the first 1 percent of the proceeds must be paid to

4-18 the department of taxation for deposit with the state treasurer for credit to

4-19 the fund for the promotion of tourism.

4-20 (b) One-third of the proceeds must be paid to the department of

4-21 taxation for deposit with the state treasurer for credit to the account for

4-22 artistic and cultural programs.

4-23 (c) The remaining proceeds must be transmitted to the county treasurer

4-24 for deposit in the county school district’s fund for capital projects

4-25 established pursuant to NRS 387.328, to be held and expended in the same

4-26 manner as other money deposited in that fund.

4-27 To reimburse the city for the administrative costs to collect the tax, the

4-28 city treasurer shall deduct and retain 5 percent of the money described in

4-29 paragraph (b) before paying it to the department of taxation.

4-30 2. In a county whose population is less than 400,000:

4-31 (a) [Three-eighths] Three-sixteenths must be paid to the department of

4-32 taxation for deposit with the state treasurer for credit to the fund for the

4-33 promotion of tourism.

4-34 (b) [Five-eighths] Five-sixteenths must be deposited with the county

4-35 fair and recreation board created pursuant to NRS 244A.599 or, if no such

4-36 board is created, with the city council or other governing body of the

4-37 incorporated city, to be used to advertise the resources of that county or

4-38 incorporated city related to tourism, including available accommodations,

4-39 transportation, entertainment, natural resources and climate, and to

4-40 promote special events related thereto.

4-41 (c) Thirty-nine eightieths of the proceeds must be paid to the

4-42 department of taxation for deposit with the state treasurer for credit to

4-43 the account for artistic and cultural programs.

5-1 (d) One-eightieth of the proceeds must be deducted and retained by

5-2 the city treasurer for deposit in the city general fund as commission for

5-3 collecting the tax.

5-4 Sec. 6. This act becomes effective on July 1, 1999.

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