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.

2-1 Sec. 3. The proclamation and notice to the voters given by the county

2-2 clerks pursuant to law must be in substantially the following form:

2-3 Notice is hereby given that at the general election on November 7,

2-4 2000, a question will appear on the ballot for the adoption or rejection

2-5 by the registered voters of the state of the following proposed act:

2-6 AN ACT to amend an act entitled "An Act to provide revenue for

2-7 the State of Nevada; providing for sales and use taxes; providing

2-8 for the manner of collection; defining certain terms; providing

2-9 penalties for violation, and other matters properly relating

2-10 thereto." approved March 29, 1955, as amended.

2-11 THE PEOPLE OF THE STATE OF NEVADA
2-12 DO ENACT AS FOLLOWS:

2-13 Section 1. The above-entitled act, being chapter 397, Statutes of

2-14 Nevada 1955, at page 762, is hereby amended by adding thereto a

2-15 new section to be designated as section 56.3, immediately following

2-16 section 56.2, to read as follows:

2-17 Sec. 56.3. 1. There are exempted from the taxes imposed by

2-18 this act the gross receipts from the sale and the storage, use or

2-19 other consumption of school supplies by or on behalf of an

2-20 eligible student during the last 7 days of August each year.

2-21 2. The Nevada tax commission shall adopt regulations to

2-22 carry out the provisions of this section.

2-23 3. As used in this section:

2-24 (a) "Eligible student" means a person who is enrolled for the

2-25 current academic year in a public or private school, community

2-26 college or university as evidenced by a photographic identification

2-27 card or other enrollment documentation deemed acceptable for

2-28 this purpose by the Nevada tax commission as evidence of his

2-29 enrollment.

2-30 (b) "School supplies" means paper, pencils, pens, markers,

2-31 crayons, notebooks, binders, poster board, scissors, rulers,

2-32 lunchboxes, backpacks, dictionaries, thesauruses, tape, tape

2-33 dispensers, staples, staplers and calculators. Except as otherwise

2-34 provided in this subsection, the term includes, without limitation,

2-35 any other similar supplies determined by the Nevada tax

2-36 commission to be for use by pupils and students to assist in the

2-37 performance of their course work. The term does not include

2-38 clothing, shoes, computers, computer software or any single item

2-39 sold at retail for more than $100.

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

3-2 Sec. 4. The ballot page assemblies and the paper ballots to be used in

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

3-4 following form:

3-5 Shall the Sales and Use Tax Act of 1955 be amended to provide a

3-6 limited exemption from the taxes imposed by this act on the gross

3-7 receipts from the sale and the storage, use or other consumption of

3-8 school supplies?

3-9 Yes ¨ No ¨

3-10 Sec. 5. The explanation of the question which must appear on each

3-11 paper ballot and sample ballot and in every publication and posting of

3-12 notice of the question must be in substantially the following form:

3-13 (Explanation of Question)

3-14 The proposed amendment to the Sales and Use Tax Act of 1955

3-15 would exempt from the taxes imposed by this act the gross receipts

3-16 from the sale and storage, use or other consumption of school supplies

3-17 during a limited period at the beginning of each school year. If this

3-18 proposal is adopted, the legislature has provided that the Local School

3-19 Support Tax Law and the City-County Relief Tax Law will be

3-20 amended to provide the same exemption.

3-21 Sec. 6. If a majority of the votes cast on the question is yes, the

3-22 amendment to the Sales and Use Tax Act of 1955 becomes effective on

3-23 January 1, 2001. If less than a majority of votes cast on the question is yes,

3-24 the question fails and the amendment to the Sales and Use Tax Act of 1955

3-25 does not become effective.

3-26 Sec. 7. All general election laws not inconsistent with this act are

3-27 applicable.

3-28 Sec. 8. Any informalities, omissions or defects in the content or

3-29 making of the publications, proclamations or notices provided for in this

3-30 act and by the general election laws under which this election is held must

3-31 be so construed as not to invalidate the adoption of the act by a majority of

3-32 the registered voters voting on the question if it can be ascertained with

3-33 reasonable certainty from the official returns transmitted to the office of

3-34 the secretary of state whether the proposed amendment was adopted by a

3-35 majority of those registered voters.

3-36 Sec. 9. Chapter 374 of NRS is hereby amended by adding thereto a

3-37 new section to read as follows:

3-41 days of August each year.

4-1 2. The Nevada tax commission shall adopt regulations to carry out

4-2 the provisions of this section.

4-3 3. As used in this section:

4-4 (a) "Eligible student" means a person who is enrolled for the current

4-5 academic year in a public or private school, community college or

4-6 university as evidenced by a photographic identification card or other

4-7 enrollment documentation deemed acceptable for this purpose by the

4-8 Nevada tax commission as evidence of his enrollment.

4-9 (b) "School supplies" means paper, pencils, pens, markers, crayons,

4-10 notebooks, binders, poster board, scissors, rulers, lunchboxes, backpacks,

4-11 dictionaries, thesauruses, tape, tape dispensers, staples, staplers and

4-12 calculators. Except as otherwise provided in this subsection, the term

4-13 includes, without limitation, any other similar supplies determined by the

4-14 Nevada tax commission to be for use by pupils and students to assist in

4-15 the performance of their course work. The term does not include

4-16 clothing, shoes, computers, computer software or any single item sold at

4-17 retail for more than $100.

4-18 Sec. 10. Section 9 of this act becomes effective on January 1, 2001,

4-19 only if the proposal submitted pursuant to sections 1 to 5, inclusive, of this

4-20 act is approved by the voters at the general election on November 7, 2000.