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 of

1-8 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 by

2-5 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 new

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

2-16 section 56.2, to read as follows:

2-17 Sec. 56.3. The legislature may exempt from the taxes

2-18 imposed by this act the gross receipts from the sale and the

2-19 storage, use or other consumption of school supplies by or on

2-20 behalf of an eligible pupil for a period of not more than 14

2-21 consecutive days at the beginning of each school year. If the

2-22 legislature authorizes the exemption, it shall establish:

2-23 1. Standards for determining whether a pupil is eligible for

2-24 the exemption and which school supplies are exempt;

2-25 2. The dates during which the exemption applies; and

2-26 3. Procedures for administering the provisions of this section.

2-27 Sec. 2. This act becomes effective on January 1, 2001.

2-28 Sec. 4. The ballot page assemblies and the paper ballots to be used in

2-29 voting on the question must present the question in substantially the

2-30 following form:

2-31 Shall the Sales and Use Tax Act of 1955 be amended to authorize

2-32 the legislature to provide a limited exemption from the taxes imposed

2-33 by this act on the gross receipts from the sale and the storage, use or

2-34 other consumption of school supplies?

2-35 Yes ¨ No ¨

2-36 Sec. 5. The explanation of the question which must appear on each

2-37 paper ballot and sample ballot and in every publication and posting of

2-38 notice of the question must be in substantially the following form:

3-1 (Explanation of Question)

3-2 The proposed amendment to the Sales and Use Tax Act of 1955

3-3 would authorize the legislature to exempt from the taxes imposed by

3-4 this act the gross receipts from the sale and storage, use or other

3-5 consumption of school supplies during a limited period at the

3-6 beginning of each school year. If this proposal is adopted, the

3-7 legislature has provided that the Local School Support Tax Law and

3-8 the City-County Relief Tax Law will be amended to provide the same

3-9 exemption.

3-10 Sec. 6. If a majority of the votes cast on the question is yes, the

3-11 amendment to the Sales and Use Tax Act of 1955 becomes effective on

3-12 January 1, 2001. If less than a majority of votes cast on the question is yes,

3-13 the question fails and the amendment to the Sales and Use Tax Act of 1955

3-14 does not become effective.

3-15 Sec. 7. All general election laws not inconsistent with this act are

3-16 applicable.

3-17 Sec. 8. Any informalities, omissions or defects in the content or

3-18 making of the publications, proclamations or notices provided for in this act

3-19 and by the general election laws under which this election is held must be

3-20 so construed as not to invalidate the adoption of the act by a majority of the

3-21 registered voters voting on the question if it can be ascertained with

3-22 reasonable certainty from the official returns transmitted to the office of the

3-23 secretary of state whether the proposed amendment was adopted by a

3-24 majority of those registered voters.

3-25 Sec. 9. Chapter 372 of NRS is hereby amended by adding thereto a

3-26 new section to read as follows:

3-27 1. There are exempted from the taxes imposed by this chapter the

3-28 gross receipts from the sale and the storage, use or other consumption of

3-29 school supplies by or on behalf of an eligible pupil during the last 7 days

3-30 of August each year. To obtain the exemption, a pupil or his parent or

3-31 legal guardian shall, in the manner prescribed by the Nevada tax

3-32 commission, present to the retailer from whom he is purchasing a school

3-33 supply, documentation of the eligibility of the pupil for the exemption.

3-34 Upon the presentation of such documentation, the retailer shall provide

3-35 the exemption to the pupil or his parent or legal guardian.

3-36 2. The department of taxation shall:

3-37 (a) In cooperation with the department of education, establish the type

3-38 of documentation that may be presented to and must be accepted by a

3-39 retailer pursuant to subsection 1; and

3-40 (b) Provide to each retailer:

3-41 (1) On or before May 24 of each year, a notice indicating that an

3-42 eligible pupil or his parent or legal guardian may obtain the exemption

3-43 provided in subsection 1 during the last 7 days of August;

4-1 (2) Information concerning the documentation that may be

4-2 presented to and must be accepted by a retailer pursuant to subsection 1;

4-3 and

4-4 (3) A copy of the regulations adopted by the Nevada tax

4-5 commission pursuant to subsection 4.

4-6 3. The department of education shall provide to each school district:

4-7 (a) A notice of the exemption provided pursuant to subsection 1; and

4-8 (b) Samples of the documentation that the department of taxation

4-9 determines may be presented to and must be accepted by a retailer

4-10 pursuant to subsection 1. The school district shall copy and distribute the

4-11 documentation to each pupil of the school district.

4-12 4. The Nevada tax commission shall adopt regulations to carry out

4-13 the provisions of this section.

4-14 5. As used in this section:

4-15 (a) "Eligible pupil" means a person who is enrolled for the current

4-16 academic year in a public or private school as evidenced by a

4-17 photographic identification card or other enrollment documentation

4-18 deemed acceptable for this purpose by the department of taxation as

4-19 evidence of his enrollment.

4-20 (b) "Private school" has the meaning ascribed to it in NRS 394.103.

4-21 (c) "Public school" has the meaning ascribed to it in NRS 385.007.

4-22 (d) "School supplies" means paper, pencils, pens, markers, crayons,

4-23 notebooks, binders, poster board, scissors, rulers, lunchboxes, backpacks,

4-24 dictionaries, thesauruses, tape, tape dispensers, staples, staplers and

4-25 calculators. Except as otherwise provided in this paragraph, the term

4-26 includes, without limitation, any other similar supplies determined by the

4-27 Nevada tax commission to be for use by pupils to assist in the

4-28 performance of their course work. The term does not include clothing,

4-29 shoes, computers, computer software or any single item sold at retail for

4-30 more than $100.

4-31 Sec. 10. Chapter 374 of NRS is hereby amended by adding thereto a

4-32 new section to read as follows:

4-42 2. The department of taxation shall:

5-1 (a) In cooperation with the department of education, establish the type

5-2 of documentation that may be presented to and must be accepted by a

5-3 retailer pursuant to subsection 1; and

5-4 (b) Provide to each retailer:

5-5 (1) On or before May 24 of each year, a notice indicating that an

5-6 eligible pupil or his parent or legal guardian may obtain the exemption

5-7 provided in subsection 1 during the last 7 days of August;

5-8 (2) Information concerning the documentation that may be

5-9 presented to and must be accepted by a retailer pursuant to subsection 1;

5-10 and

5-11 (3) A copy of the regulations adopted by the Nevada tax

5-12 commission pursuant to subsection 4.

5-13 3. The department of education shall provide to each school district:

5-14 (a) A notice of the exemption provided pursuant to subsection 1; and

5-15 (b) Samples of the documentation that the department of taxation

5-16 determines may be presented to and must be accepted by a retailer

5-17 pursuant to subsection 1. The school district shall copy and distribute the

5-18 documentation to each pupil of the school district.

5-19 4. The Nevada tax commission shall adopt regulations to carry out

5-20 the provisions of this section.

5-21 5. As used in this section:

5-22 (a) "Eligible student" means a person who is enrolled for the current

5-23 academic year in a public or private school as evidenced by a

5-24 photographic identification card or other enrollment documentation

5-25 deemed acceptable for this purpose by the department of taxation as

5-26 evidence of his enrollment.

5-27 (b) "Private school" has the meaning ascribed to it in NRS 394.103.

5-28 (c) "Public school" has the meaning ascribed to it in NRS 384.007.

5-29 (d) "School supplies" means paper, pencils, pens, markers, crayons,

5-30 notebooks, binders, poster board, scissors, rulers, lunchboxes, backpacks,

5-31 dictionaries, thesauruses, tape, tape dispensers, staples, staplers and

5-32 calculators. Except as otherwise provided in this paragraph, the term

5-33 includes, without limitation, any other similar supplies determined by the

5-34 Nevada tax commission to be for use by pupils to assist in the

5-35 performance of their course work. The term does not include clothing,

5-36 shoes, computers, computer software or any single item sold at retail for

5-37 more than $100.

5-38 Sec. 11. Sections 9 and 10 of this act become effective on January 1,

5-39 2001, only if the proposal submitted pursuant to sections 1 to 5, inclusive,

5-40 of this act is approved by the voters at the general election on November 7,

5-41 2000.