Assembly Bill No

Assembly Bill No. 584–Committee on Taxation

CHAPTER........

AN ACT relating to taxation; transferring the responsibility for the collection of taxes and

fees imposed on certain fuels from the department of taxation to the department of

motor vehicles and public safety; providing for the collection of the tax on certain

types of motor vehicle fuel at the terminal rack by suppliers of those types of fuel;

prohibiting exporters of certain types of motor vehicle fuel from selling or

distributing those types of fuel in this state; providing a penalty; 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. Title 32 of NRS is hereby amended by adding thereto a

new chapter to consist of the provisions set forth as sections 2 to 45,

inclusive, of this act.

Sec. 2. As used in this chapter, "department" means the department

of motor vehicles and public safety.

Sec. 3. The department shall adopt such regulations as are

necessary to carry out the provisions of this chapter.

Sec. 4. Except as otherwise provided in NRS 366.395:

1. If a person fails to file a return or the department is not satisfied

with the return of any tax or fee required to be paid to the department

pursuant to chapter 365, 366 or 373 of NRS or NRS 590.120 or 590.840,

the department may determine the amount required to be paid upon the

basis of:

(a) The facts contained in the return;

(b) Any information that is in the possession of the department or may

come into its possession; or

(c) Reasonable estimates of the amount.

2. One or more deficiency determinations may be made with respect

to the amount due for one or more periods.

3. In making its determination of the amount required to be paid, the

department shall impose interest on the amount of tax or fee determined

to be due, calculated at the rate and in the manner set forth in section 22

of this act.

4. The department shall impose a penalty of 10 percent in addition to

the amount of a determination that is made if a person fails to file a

return with the department.

5. If a business is discontinued, a determination may be made at any

time thereafter within the period prescribed in section 9 of this act

concerning liability arising out of that business, irrespective of whether

the determination is issued before the due date of the liability.

Sec. 5. In making a determination, the department may offset

overpayments for a period or periods, together with interest on the

overpayments, against underpayments for another period or periods or

against penalties and the interest on underpayments.

Sec. 6. If any part of the deficiency for which a deficiency

determination is made is because of negligence or intentional disregard

of any applicable provision of chapter 365, 366 or 373 of NRS or NRS

590.120 or 590.840, or the regulations of the department adopted

pursuant thereto, a penalty of 10 percent of the amount of the

determination must be added thereto.

Sec. 7. If any part of the deficiency for which a deficiency

determination is made is because of fraud or an intent to evade the

payment of a tax or fee required by chapter 365, 366 or 373 of NRS or

NRS 590.120 or 590.840, or the regulations of the department adopted

pursuant thereto, a penalty of 25 percent of the amount of the

determination must be added thereto.

Sec. 8. 1. The department shall give a person against whom a

determination has been made written notice of its determination.

2. The notice may be served personally or by mail. If served by mail,

the notice must be addressed to the person at his address as it appears in

the records of the department.

3. If the notice is served by mail, service is complete at the time the

notice is deposited with the United States Postal Service.

4. Service of notice tolls any limitation for the determination of a

further deficiency.

Sec. 9. 1. Except as otherwise provided in subsections 2, 3 and 4,

each notice of a deficiency determination issued by the department must

be personally served or mailed within 3 years after the last day of the

month following the period for which the amount is proposed to be

determined or within 3 years after the return is filed, whichever period

expires later.

2. In the case of a failure to make a return or a claim for an

additional amount, each notice of determination must be mailed or

personally served within 8 years after the last day of the month following

the period for which the amount is proposed to be determined.

3. If, before the expiration of the time prescribed in this section for

the mailing of a notice of determination, the taxpayer has signed a

waiver consenting to the mailing of the notice after that time, the notice

may be mailed at any time before the expiration of the period agreed

upon. The period so agreed upon may be extended by subsequent

agreements in writing if each agreement is made before the expiration of

the period previously agreed upon.

4. This section does not apply to cases of fraud or the intentional

evasion of a provision of chapter 365, 366 or 373 of NRS or NRS

590.120 or 590.840, or any regulation of the department adopted

pursuant thereto. Sec. 10. 1. Any person against whom a deficiency determination is

made who believes that the determination is incorrect may petition the

department for a redetermination within 30 days after being served with

the notice of determination.

2. If a petition for redetermination is not filed within the period

prescribed in subsection 1, the person is deemed to have waived the right

to contest the determination or recover a refund.

3. For good cause shown, the department may extend the time within

which a petition for redetermination must be filed.

Sec. 11. A petition for redetermination must:

1. Set forth the amount of the determination that is contested and the

grounds for requesting a redetermination; and

2. If an oral hearing is not requested, be accompanied by the books

and records and other evidence which support the petition.

Sec. 12. 1. If a petition for redetermination is filed within the

period prescribed in section 10 of this act, the department shall

reconsider the determination and, if the person has so requested in the

petition, grant the person an oral hearing and give him at least 10 days'

notice of the time and place of the hearing.

2. The department may continue the hearing from time to time as

may be necessary.

Sec. 13. The department may decrease or increase the amount of the

determination before it becomes final, but the amount may be increased

only if a claim for the increase is asserted by the department before or

during the hearing.

Sec. 14. The order entered by an officer of the department upon a

petition for redetermination becomes final 30 days after service upon the

petitioner of notice thereof.

Sec. 15. 1. Before a person may request judicial review pursuant to

NRS 233B.130 from a final order of the department upon a petition for

redetermination, he must:

(a) Pay the amount of the determination; or

(b) Enter into a written agreement with the department that

establishes a later date by which he is required to pay the amount of the

determination.

2. If a court determines that the amount of the final order should be

reduced or that the person does not owe any taxes or fees, the department

shall credit or refund any amount paid by the person that exceeds the

amount owed.

Sec. 16. 1. The amount specified as deficient in a determination

made by the department pursuant to the provisions of sections 4 to 16,

inclusive, of this act is due at the time the determination becomes final.

2. If the amount specified as deficient in a determination is not paid

when the determination becomes final and the person against whom the

determination is made has not entered into a written agreement with the

department for the payment of the amount specified as deficient in thedetermination, the department shall impose a penalty of 10 percent of the

amount specified as deficient in the determination, exclusive of interest

and penalties.

Sec. 17. Except as otherwise provided in NRS 365.340 and 366.397,

if the department grants an extension of time for paying any amount

required to be paid pursuant to chapter 365, 366 or 373 of NRS or NRS

590.120 or 590.840, a person who pays the amount within the period for

which the extension is granted shall pay, in addition to the amount

owing, interest at the rate of 1 percent per month from the date the

amount would have been due without the extension until the date of

payment.

Sec. 18. If a check submitted to the department for payment of any

tax or fee required by chapter 365, 366 or 373 of NRS or NRS 590.120 or

590.840 is dishonored upon presentment for payment, the department

may require that any future payments be made by cashier's check,

traveler's check, money order or cash.

Sec. 19. If the department believes that the collection of any amount

of taxes or fees due pursuant to chapter 365, 366 or 373 of NRS or NRS

590.120 or 590.840 will be jeopardized by delay, the department shall

make a determination of the amount required to be collected and serve

notice of the determination upon the person against whom it is made.

Sec. 20. The amount specified in the determination must be paid

within 10 days after the service of the notice of the determination unless

a petition for redetermination is filed within that period. If the amount of

the determination is not paid within that period and a petition for

redetermination is not filed, the determination becomes final and any

penalty for delinquency and interest provided for in this chapter attaches

to the amount of the determination.

Sec. 21. A person against whom a determination is made pursuant

to section 19 of this act may petition for a redetermination. The petition

is subject to the requirements of sections 10 to 16, inclusive, of this act,

except that the petition must be made within 10 days after service of the

notice of determination. A person who petitions for a redetermination

must deposit with the department within 10 days after service of the

notice of determination such security as the department determines is

necessary.

Sec. 22. Unless a different penalty or rate of interest is specifically

provided by statute, any person who fails to pay any tax or fee required

by chapter 365, 366 or 373 of NRS or NRS 590.120 or 590.840 to this

state or a county within the time required, shall pay a penalty of not more

than 10 percent of the amount of the tax or fee that is owed, as

determined by the department, in addition to the tax or fee, plus interest

at the rate of 1 percent per month, or fraction of a month, from the last

day of the month following the period for which the amount or any

portion of the amount should have been reported until the date of

payment. Sec. 23. 1. If the director of the department or a hearing officer

designated by him finds that the failure of a person to make a timely

return or payment of a tax or fee required by chapter 365, 366 or 373 of

NRS or NRS 590.120 or 590.840 is the result of circumstances beyond

the control of the person and occurred despite the exercise of ordinary

care and without willful neglect, the department may relieve him of all or

part of any interest or penalty, or both.

2. A person requesting relief must file with the department a

statement signed, under penalty of perjury, that sets forth the facts upon

which he bases his claim for relief.

3. The department shall disclose, upon the request of any person:

(a) The name of the person to whom relief was granted; and

(b) The amount of the relief.

Sec. 24. The department may:

1. Enter into a written agreement with a person who is required to

pay the taxes or fees required by chapter 365, 366 or 373 of NRS or NRS

590.120 or 590.840 for the payment of delinquent taxes or fees, interest

or penalties imposed pursuant to those provisions.

2. Adopt regulations providing for:

(a) The payment of delinquent taxes or fees, interest or penalties upon

the execution of a written agreement between the department and such a

person; and

(b) The cancellation of such an agreement if the person becomes

delinquent in his payment of the delinquent taxes or fees, interest or

penalties owed to the department pursuant to the provisions of chapter

365, 366 or 373 of NRS or NRS 590.120 or 590.840.

Sec. 25. 1. If a person who is delinquent in the payment of any tax

or fee required by chapter 365, 366 or 373 of NRS or NRS 590.120 or

590.840 has not paid the amount of a deficiency determination, the

department may bring an action in a court of this state, a court of any

other state or a court of the United States to collect the delinquent or

deficient amount, penalties and interest. The action must be brought not

later than 3 years after the payment became delinquent or the

determination became final or within 5 years after the last recording of

an abstract of judgment or of a certificate constituting a lien for the tax

or fee owed.

2. The attorney general shall prosecute the action. The provisions of

NRS and the Nevada Rules of Civil Procedure and Nevada Rules of

Appellate Procedure relating to service of summons, pleadings, proofs,

trials and appeals are applicable to the proceedings. In the action, a writ

of attachment may issue. A bond or affidavit is not required before an

attachment may be issued.

3. In the action, a certificate by the department showing the

delinquency is prima facie evidence of:

(a) The determination of the tax or fee or the amount of the tax or

fee; (b) The delinquency of the amounts; and

(c) The compliance by the department with the procedures required by

law related to the computation and determination of the amounts.

Sec. 26. 1. If, with respect to any tax or fee required by chapter

365, 366 or 373 of NRS or NRS 590.120 or 590.840, a person:

(a) Fails to pay the tax or fee when due according to his return filed

with the department;

(b) Fails to pay a deficiency determination when due; or

(c) Defaults on a payment pursuant to a written agreement with the

department,

the department may, within 3 years after the amount is due, file in the

office of the clerk of any court of competent jurisdiction an application

for the entry of a summary judgment for the amount due.

2. The application must be accompanied by a certificate that

specifies:

(a) The amount required to be paid, including any interest and

penalties due;

(b) The name and address of the person liable for the payment, as

they appear on the records of the department;

(c) The basis for the determination of the department of the amount

due; and

(d) That the department has complied with the applicable provisions

of law relating to the determination of the amount required to be paid.

3. The application must include a request that judgment be entered

against the person in the amount required to be paid, including any

interest and penalties due, as set forth in the certificate.

Sec. 27. The county clerk shall, immediately upon the filing of the

application and certificate pursuant to section 26 of this act, enter a

judgment for the State of Nevada against the person liable for the

payment in the amount required to be paid, together with any penalties

and interest due as set forth in the certificate. The department shall serve

a copy of the judgment, together with the application and the certificate,

upon the person against whom the judgment is entered, by personal

service or by mailing a copy to his last known address as it appears in the

records of the department.

Sec. 28. Execution must issue upon the judgment upon request of

the department in the same manner as execution may issue upon other

judgments, and sales must be held under the execution, as provided in

chapter 21 of NRS.

Sec. 29. 1. An abstract of the judgment, or a copy thereof, may be

recorded in the office of the county recorder of any county.

2. From the time of its recordation, the abstract of the judgment

becomes a lien upon all real and personal property in that county which

the judgment debtor owns at the time, or which he may afterward acquire, until the lien expires. The lien has the force, effect and priority

of a judgment lien and continues for 5 years after the date of the

judgment entered by the county clerk unless sooner released or otherwise

discharged.

Sec. 30. The lien may, within 5 years after the date of the judgment

or within 5 years after the last extension of the lien in the manner

provided in this section, be extended by recording in the office of the

county recorder an abstract or copy of the judgment, and from the time

of that recording, the lien must be extended upon the property in that

county for 5 years unless sooner released or otherwise discharged.

Sec. 31. The remedies provided for in sections 26 to 31, inclusive, of

this act are intended to supplement any other remedies provided for in

this chapter or chapter 365, 366 or 373 of NRS. The provisions of

sections 26 to 31, inclusive, of this act do not limit or repeal any

additional requirements imposed upon the department by statute, or

otherwise by law.

Sec. 32. 1. If any tax or fee required by chapter 365, 366 or 373 of

NRS or NRS 590.120 or 590.840 is not paid when due, the department

may, within 3 years after the date that the tax or fee became due, file for

record a certificate in the office of any county recorder which states:

(a) The amount of the tax or fee and any interest or penalties due;

(b) The name and address of the person who is liable for the amount

due as they appear on the records of the department; and

(c) That the department has complied with the procedures required by

law for determining the amount due.

2. From the time of the filing of the certificate, the amount due,

including interest and penalties, constitutes a lien upon all real and

personal property in the county owned by the person or acquired by him

afterwards and before the lien expires. The lien has the effect and

priority of a judgment lien and continues for 5 years after the time of the

filing of the certificate unless sooner released or otherwise discharged.

3. Within 5 years after the date of the filing of the certificate or

within 5 years after the date of the last extension of the lien pursuant to

this subsection, the lien may be extended by filing for record a new

certificate in the office of the county recorder of any county. From the

time of filing, the lien is extended to all real and personal property in the

county owned by the person or acquired by him afterwards for 5 years,

unless sooner released or otherwise discharged.

Sec. 33. 1. The department may release all or any portion of the

property subject to a lien imposed by the department or subordinate the

lien to other liens and encumbrances if it determines that the amount,

interest and penalties are secured sufficiently by a lien on other property

or that the release or subordination of the lien will not jeopardize the

collection of the amount, interest and penalties.

2. A certificate by the department stating that any property has been

released from the lien, or that the lien has been subordinated to otherliens and encumbrances, is conclusive evidence that the property has

been released or that the lien has been subordinated.

Sec. 34. 1. The amounts, including interest and penalties, required

to be paid by a person pursuant to chapter 365, 366 or 373 of NRS or

NRS 590.120 or 590.840 must be satisfied first if:

(a) The person is insolvent;

(b) The person makes a voluntary assignment of his assets;

(c) The estate of the person in the hands of executors, administrators

or heirs, before distribution, is insufficient to pay all the debts due from

the deceased; or

(d) The estate and effects of an absconding, concealed or absent

person required to pay any amount by force of such a revenue act are

levied upon by process of law.

2. This section does not give the State of Nevada a preference over:

(a) Any recorded lien that attached before the date when the amounts

required to be paid became a lien; or

(b) Any costs of administration, funeral expenses, expenses of

personal illness, family allowances or debts preferred pursuant to federal

law or wages as provided in NRS 150.220.

Sec. 35. 1. The department or its authorized representative may

issue a warrant for the enforcement of a lien and for the collection of

any delinquent taxes or fees required by chapter 365, 366 or 373 of NRS

or NRS 590.120 or 590.840:

(a) Within 3 years after the person is delinquent in the payment of the

tax or fee; or

(b) Within 5 years after the last recording of an abstract of judgment

or of a certificate constituting a lien for the tax or fee.

2. The warrant must be directed to a sheriff or constable and has the

same effect as a writ of execution.

3. The warrant must be levied and sale made pursuant to the warrant

in the same manner and with the same effect as a levy of and a sale

pursuant to a writ of execution.

Sec. 36. 1. If a person continues to engage in business in this state

without a permit or license as required by chapter 365 or 366 of NRS, or

after the license or permit has been suspended or revoked, the

department may, after providing notice to that person, order any place of

business of the person to be locked and sealed. If notice is served by mail,

it must be addressed to the person at his address as it appears in the

records of the department.

2. The order to lock and seal a place of business must be delivered to

the sheriff of the county in which the business is located. The sheriff

shall assist in the enforcement of the order.

Sec. 37. 1. The department may pay or advance to the sheriff or

constable the same fees, commissions and expenses for acting upon the

warrant as are provided by law for acting upon a writ of execution. Thedepartment shall approve the fees for publication in a newspaper.

Approval from a court is not required for publication.

2. The fees, commissions and expenses are the obligation of the

person against whom the warrant is issued.

Sec. 38. 1. If a person is delinquent in the payment of any tax or

fee required by chapter 365, 366 or 373 of NRS or NRS 590.120 or

590.840, or if a determination has been made against him that remains

unpaid, the department may:

(a) Not later than 3 years after the payment became delinquent or the

determination became final; or

(b) Not later than 5 years after the last recording of an abstract

of judgment or of a certificate constituting a lien for the tax or fee

owed,

give a notice of the delinquency and a demand to transmit personally or

by registered or certified mail to any person, including, without

limitation, any officer or department of this state or any political

subdivision or agency of this state, who has in his possession or under his

control any credits or other personal property belonging to the delinquent

taxpayer, or owing any debts to the delinquent taxpayer or person against

whom a determination has been made which remains unpaid, or owing

any debts to the delinquent taxpayer or that person. In the case of any

state officer, department or agency, the notice must be given to the

officer, department or agency before it presents the claim of the

delinquent taxpayer to the state controller.

2. A state officer, department or agency which receives such a notice

may satisfy any debt owed to it by that person before it honors the notice

of the department.

3. After receiving the demand to transmit, the persons so notified

may not transfer or otherwise dispose of the credits, other personal

property, or debts in their possession or under their control at the time

they received the notice until the department consents to a transfer or

other disposition.

4. Each person so notified shall, within 10 days after receipt of the

demand to transmit, inform the department of, and transmit to the

department all such credits, other personal property, or debts in his

possession, under his control or owing by him within the time and in the

manner requested by the department. Except as otherwise provided in

subsection 5, no further notice is required to be served upon that person.

5. If the property of the delinquent taxpayer consists of a series of

payments owed to him, the person who owes or controls the payments

shall transmit the payments to the department until otherwise notified by

the department. If the debt of the delinquent taxpayer is not paid within 1

year after the department issued the original demand to transmit, the

department shall issue another demand to transmit to the person

responsible for making the payments informing him to continue totransmit payments to the department or that his duty to transmit the

payments to the department has ceased.

6. If the notice of the delinquency seeks to prevent the transfer or

other disposition of a deposit in a bank or other credits or personal

property in the possession or under the control of a bank or other

depository institution, the notice must be delivered or mailed to the

branch or office of the bank or other depository institution at which the

deposit is carried or at which the credits or personal property is held.

7. If any person so notified makes any transfer or other disposition

of the property or debts required to be withheld or transmitted, to the

extent of the value of the property or the amount of the debts thus

transferred or paid, he is liable to this state for any indebtedness due

pursuant to chapter 365, 366 or 373 of NRS or NRS 590.120 or 590.840

from the person with respect to whose obligation the notice was given if

solely by reason of the transfer or other disposition, this state is unable to

recover the indebtedness of the person with respect to whose obligation

the notice was given.

Sec. 39. In carrying out the provisions of section 38 of this act, the

department shall determine as early as possible whether there have been

withheld or transmitted sufficient liquid assets to satisfy the claim of this

state. As soon as the department determines that the assets have been

withheld or transmitted, it shall consent to a transfer or other disposition

of the assets in excess of that amount.

Sec. 40. 1. If a person who is liable for any tax or fee required by

chapter 365, 366 or 373 of NRS or NRS 590.120 or 590.840 sells any

portion of his business or stock of goods not in the ordinary course of

business or quits the business, his successors or assignees shall:

(a) If the business or stock of goods was purchased for money,

withhold from the purchase price the amount due; or

(b) If the business or stock of goods was not purchased for money,

withhold a sufficient portion of the assets of the business or stock of

goods which, if sold, would equal the amount due,

until the former owner provides the successors or assignees with a receipt

or certificate from the department indicating that he paid the amount

due.

2. A successor or assignee who fails to withhold the amount required

pursuant to subsection 1 becomes personally liable for the payment of the

amount required to be withheld by him to the extent of the consideration

paid for the business or stock of goods, valued in money.

3. The department shall issue a certificate of the amount due to the

successor or assignee:

(a) Not later than 60 days after receiving a written request from the

successor or assignee for such a certificate; or

(b) Not later than 60 days after the date the records of the former

owner are made available for audit,

whichever period expires later, but not later than 90 days after receiving

the request.

4. If the department fails to mail the certificate, the successor or

assignee is released from any further obligation to withhold any portion

of the purchase price, business or stock of goods.

5. The time within which the obligation of the successor or assignee

may be enforced begins when the person who is liable for the tax or fee

sells or assigns all or any portion of his business or stock of goods or

when the determination against the person becomes final, whichever

occurs later.

Sec. 41. 1. At any time within 3 years after a person has become

delinquent in the payment of any amount of taxes or fees due pursuant to

chapter 365, 366 or 373 of NRS or NRS 590.120 or 590.840, the

department may seize any property, real or personal, of the person and

sell the property, or a sufficient part of it, at public auction to pay the

amount due, together with any interest or penalties imposed for the

delinquency and any costs incurred on account of the seizure and sale.

2. Any seizure made to collect a tax or fee due may be only of the

property of the person not exempt from execution under the provisions of

law.

Sec. 42. The department may adopt regulations that prescribe the

manner in which a person who does not owe any taxes or fees to the

department may claim an ownership interest in property transmitted to or

seized by the department. The regulations must set forth:

1. The procedure for asserting such a claim; and

2. The circumstances under which the department will honor the

claim.

Sec. 43. The notice of a sale and the time and place of the sale must

be given to the delinquent person in writing at least 10 days before the

date set for the sale. The notice must:

1. Include:

(a) A description of the property to be sold;

(b) A statement of the amount due, including interest, penalties and

costs;

(c) The name of the delinquent person; and

(d) A statement that unless the amount due, interest, penalties and

costs are paid on or before the time fixed in the notice for the sale, the

property, or as much of it as is necessary, will be sold in accordance with

law and the notice;

2. Be enclosed in an envelope addressed to the person at his last

known address or place of business in this state and deposited in the

United States Postal Service, postage prepaid; and

3. Be published for at least 10 days before the date set for the sale in

a newspaper of general circulation published in the county in which the

property seized will be sold. If there is no newspaper of general

circulation in the county, notice must be posted in three public places in

the county 10 days before the date set for the sale.

Sec. 44. 1. At a sale described in section 43 of this act, the

department shall sell the property in accordance with law and the notice

and deliver to the purchaser a bill of sale for the personal property and a

deed for any real property sold. The bill of sale or deed vests the interest

or title of the person liable for the amount in the purchaser.

2. The unsold portion of any property seized may be left at the place

of sale at the risk of the person liable for the amount.

Sec. 45. 1. If, upon the sale, the money received exceeds the total

of all amounts, including interest, penalties and costs due this state, the

department shall return the excess to the person liable for the amounts

and obtain his receipt.

2. If a person who has an interest in or lien upon the property files

with the department a notice of his interest or lien before the sale, the

department shall withhold any excess pending a determination of the

rights of the respective parties to it by a court of competent jurisdiction.

3. If the receipt of the person liable for the amount is not available,

the department shall deposit the excess money with the state treasurer, as

trustee for the owner, subject to the order of the person liable for the

amount, his heirs, successors or assigns.

Sec. 46. NRS 360.001 is hereby amended to read as follows:

360.001 As used in this Title, except as otherwise provided in chapters

364, 365, 366 , [~~and]~~ 371 and 373 of NRS and unless the context requires

otherwise:

1. "Department" means the department of taxation.

2. "Executive director" means the executive director of the department

of taxation.

Sec. 47. NRS 360.300 is hereby amended to read as follows:

360.300 1. If a person fails to file a return or the department is not

satisfied with the return or returns of any tax, contribution or premium or

amount of tax, contribution or premium required to be paid to the state by

any person, in accordance with the applicable provisions of [~~NRS~~

~~482.313,]~~ this chapter , [~~or]~~ chapter 362, 364A, [~~365,]~~ 369, 370, 372,

372A, [~~373,]~~ 374, 377, 377A [~~, 444A, 585, 590]~~ or 444A of NRS, NRS

482.313, or chapter 585 or 680B of NRS as administered or audited by the

department, it may compute and determine the amount required to be paid

upon the basis of:

(a) The facts contained in the return;

(b) Any information within its possession or that may come into its

possession; or

. 2. One or more deficiency determinations may be made with respect to

the amount due for one or for more than one period.

3. In making its determination of the amount required to be paid, the

department shall impose interest on the amount of tax determined to be due,

calculated at the rate and in the manner set forth in NRS 360.417, unless a

different rate of interest is specifically provided by statute.

4. The department shall impose a penalty of 10 percent in addition to

the amount of a determination that is made in the case of [~~a person's]~~ the

failure of a person to file a return with the department.

5. When a business is discontinued, a determination may be made at

any time thereafter within the time prescribed in NRS 360.355 as to

liability arising out of that business, irrespective of whether the

determination is issued before the due date of the liability.

Sec. 48. NRS 360.417 is hereby amended to read as follows:

360.417 Unless a different penalty or rate of interest is specifically

provided by statute, any person who fails to pay any tax provided for in

chapter 362, 364A, [~~365,]~~ 369, 370, 372, [~~373,]~~ 374, 377, 377A, 444A or

585 of NRS, or the fee provided for in NRS 482.313 [~~or 590.700 to~~

~~590.920, inclusive,]~~ to the state or a county within the time required, shall

pay a penalty of not more than 10 percent of the amount of the tax or fee

which is owed, as determined by the department, in addition to the tax or

fee, plus interest at the rate of 1 percent per month, or fraction of a month,

from the last day of the month following the period for which the amount or

any portion of the amount should have been reported until the date of

payment.

Sec. 49. NRS 360.419 is hereby amended to read as follows:

360.419 1. If the executive director or a designated hearing officer

finds that [~~a person's]~~ the failure of a person to make a timely return or

payment of a tax imposed pursuant to NRS 361.320 or chapter 361A,

376A, 377 or 377A of NRS, or by chapter 362, 364A, [~~365,]~~ 369, 370,

372, 372A, [~~373,]~~ 374, 375A or 375B of NRS, is the result of

circumstances beyond his control and occurred despite the exercise of

ordinary care and without intent, the department may relieve him of all or

part of any interest or penalty or both.

2. A person seeking this relief must file with the department a

statement under oath setting forth the facts upon which he bases his claim.

3. The department shall disclose, upon the request of any person:

(a) The name of the person to whom relief was granted; and

(b) The amount of the relief.

4. The executive director or a designated hearing officer shall act upon

the request of a taxpayer seeking relief pursuant to NRS 361.4835 which is

deferred by a county treasurer or county assessor.

Sec. 50. NRS 360.510 is hereby amended to read as follows:

360.510 1. If any person is delinquent in the payment of any tax or

fee administered by the department or if a determination has been made

against him which remains unpaid, the department may: (a) Not later than 3 years after the payment became delinquent or the

determination became final; or

(b) Not later than 5 years after the last recording of an abstract of

judgment or of a certificate constituting a lien for tax owed,

give a notice of the delinquency and a demand to transmit personally or by

registered or certified mail to any person, including, without limitation, any

officer or department of [~~the]~~ this state or any political subdivision or

agency of [~~the]~~ this state, who has in his possession or under his control

any credits or other personal property belonging to the delinquent, or owing

any debts to the delinquent or person against whom a determination has

been made which remains unpaid, or owing any debts to the delinquent or

that person. In the case of any state officer, department or agency, the

notice must be given to the officer, department or agency before [~~it]~~ the

department presents the claim of the delinquent taxpayer to the state

controller.

2. A state officer, department or agency which receives such a notice

may satisfy any debt owed to it by that person before it honors the

~~[department's notice.]~~ notice of the department.

3. After receiving the demand to transmit, the [~~persons so]~~ person

notified by the demand may not transfer or otherwise dispose of the credits,

other personal property, or debts in [~~their]~~ his possession or under [~~their]~~

his control at the time [~~they]~~ he received the notice until the department

consents to a transfer or other disposition.

4. [~~All persons so]~~ Every person notified by a demand to transmit

shall, within 10 days after receipt of the demand to transmit, inform the

department of, and transmit to the department all such credits, other

personal property, or debts in [~~their]~~ his possession, under [~~their]~~ his

control or owing by [~~them]~~ him within the time and in the manner

requested by the department. Except as otherwise provided in subsection 5,

no further notice is required to be served to [~~those persons.]~~ that person.

5. If the property of the delinquent taxpayer consists of a series of

payments owed to him, the person who owes or controls the payments shall

transmit the payments to the department until otherwise notified by the

department. If the debt of the delinquent taxpayer is not paid within 1 year

after the department issued the original demand to transmit, [~~it]~~ the

department shall issue another demand to transmit to the person

responsible for making the payments informing him to continue to transmit

payments to the department or that his duty to transmit the payments to the

department has ceased.

6. If the notice of the delinquency seeks to prevent the transfer or other

disposition of a deposit in a bank or other credits or personal property in

the possession or under the control of a bank or other depository institution,

the notice must be delivered or mailed to the branch or office of the bank or

other depository institution at which the deposit is carried or at which the

credits or personal property is held. 7. If any person [~~so]~~ notified by the notice of the delinquency makes

any transfer or other disposition of the property or debts required to be

withheld or transmitted, to the extent of the value of the property or the

amount of the debts thus transferred or paid, he is liable to the state for any

indebtedness due pursuant to [~~NRS 482.313,]~~ this chapter , or chapter 362,

364A, [~~365,]~~ 369, 370, 372, 372A, [~~373,]~~ 374, 377, 377A [~~, 444A, 585,~~

~~590]~~ or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS from

the person with respect to whose obligation the notice was given if solely

by reason of the transfer or other disposition the state is unable to recover

the indebtedness of the person with respect to whose obligation the notice

was given.

Sec. 51. Chapter 365 of NRS is hereby amended by adding thereto the

provisions set forth as sections 52 to 66, inclusive, of this act.

Sec. 52. "Department" means the department of motor vehicles and

public safety.

Sec. 53. "Exporter" means a person, other than a supplier, who

receives motor vehicle fuel, other than aviation fuel, in this state and sells

or distributes that fuel outside this state.

Sec. 54. "Rack" means a deck, platform or open bay which consists

of a series of metered pipes and hoses for delivering motor vehicle fuel

from a refinery or terminal into a motor vehicle, rail car or vessel.

Sec. 55. "Supplier" means a person who:

1. Imports or acquires immediately upon importation into this state

motor vehicle fuel, except aviation fuel, from within or without a state,

territory or possession of the United States or the District of Columbia

into a terminal located in this state;

2. Otherwise acquires for distribution in this state motor vehicle fuel,

except aviation fuel, with respect to which there has been no previous

taxable sale or use; or

3. Produces, manufactures or refines motor vehicle fuel, except

aviation fuel, in this state.

Sec. 56. "Terminal" means a facility for the storage of motor vehicle

fuel which is supplied by a motor vehicle, pipeline or vessel and from

which motor vehicle fuel is removed for distribution at a rack.

Sec. 57. 1. Except as otherwise provided in subsection 2, a person

shall not import, sell, distribute, use or store motor vehicle fuel, except

aviation fuel, in this state for which the taxes imposed pursuant to NRS

365.180 to 365.192, inclusive, and section 59 of this act, have not been

paid.

2. A supplier may import or store motor vehicle fuel for which the

taxes imposed pursuant to NRS 365.180 to 365.192, inclusive, and

section 59 of this act, have not been paid.

Sec. 58. 1. Except as otherwise provided in subsections 2 and 3,

each supplier who sells or distributes motor vehicle fuel, other than

aviation fuel, shall, at the time the motor vehicle fuel is distributed from

a terminal, collect the taxes imposed pursuant to NRS 365.180 to

365.192, inclusive, and section 59 of this act.

2. A supplier may sell motor vehicle fuel, other than aviation fuel, to

a purchaser without collecting the taxes imposed pursuant to NRS

365.180 to 365.192, inclusive, and section 59 of this act, if the purchaser

of the motor vehicle fuel:

(a) Has been issued a permit by the department pursuant to section 62

of this act; and

(b) Elects to defer payment of the taxes.

3. A supplier shall not collect the taxes imposed pursuant to NRS

365.180 to 365.192, inclusive, and section 59 of this act if the purchaser

of the motor vehicle fuel is:

(a) A supplier; or

(b) An exporter.

4. A supplier who sells motor vehicle fuel, other than aviation fuel, to

any other supplier shall keep such records of the transaction as the

department may require. The department shall adopt regulations setting

forth:

(a) The records which must be kept by the dealer pursuant to this

subsection; and

(b) The period for which those records must be kept by the dealer.

Sec. 59. 1. Except as otherwise provided in section 65 of this act,

every supplier shall, not later than the last day of each calendar month:

(a) Submit to the department a statement of all motor vehicle fuel,

except aviation fuel, sold, distributed or used by him in this state; and

(b) Pay an excise tax on all motor vehicle fuel, except aviation fuel, in

the amount of 17.65 cents per gallon sold, distributed or used in the

manner prescribed in this chapter.

2. A supplier shall hold the amount of all taxes collected pursuant to

this chapter in a separate account in trust for the state.

Sec. 60. 1. Except as otherwise provided in subsection 2, in

calculating the amount of tax on motor vehicle fuel, other than aviation

fuel, a supplier owes to the department, the supplier may deduct from the

amount due pursuant to NRS 365.180 to 365.192, inclusive, and section

59 of this act any amount that is due but has not been paid by a

purchaser who is authorized by the department to defer payment of the

tax pursuant to section 62 of this act. If such a deduction is claimed, the

claim must identify the purchaser and the amount of the taxes that he

failed to pay.

2. A supplier shall not deduct from the amount he owes the

department pursuant to subsection 1 any amount that has not been paid

by a person whose permit to defer the payment of the tax has been revoked pursuant to subsection 4 of section 62 of this act if, before the

motor vehicle fuel, other than aviation fuel, was purchased, the supplier

was notified by the department pursuant to subsection 5 of section 62 of

this act that it had revoked the permit of the purchaser.

Sec. 61. Each exporter shall, not later than the last day of each

calendar month, submit to the department a written statement which sets

forth:

1. The number of gallons of motor vehicle fuel, other than aviation

fuel, he received during the previous month;

2. The number of gallons of motor vehicle fuel, other than aviation

fuel, he sold or distributed outside this state;

3. The name and mailing address of each person to whom he sold or

distributed motor vehicle fuel, other than aviation fuel, outside this state;

and

4. The number of gallons of motor vehicle fuel, other than aviation

fuel, he sold or distributed to each person to whom he sold or distributed

the fuel outside this state.

Sec. 62. 1. A purchaser of motor vehicle fuel, other than aviation

fuel, who wishes to defer payment to the supplier of the taxes imposed

pursuant to NRS 365.180 to 365.192, inclusive, and section 59 of this act

until 20 days after the end of the month in which the fuel is purchased

must apply for a permit to defer payment of the taxes.

2. The department may require an applicant for a permit to defer

payment of the taxes imposed pursuant to NRS 365.180 to 365.192,

inclusive, and section 59 of this act, to provide a bond executed by him as

principal, and by a corporation qualified pursuant to the laws of this

state as surety, payable to this state. The bond must indemnify the

department against any deduction claimed pursuant to section 60 of this

act by a supplier because of the failure of the principal to pay the taxes as

required by this chapter.

3. If a purchaser of motor vehicle fuel, other than aviation fuel:

(a) Has been issued a permit to defer the payment of the taxes

imposed pursuant to NRS 365.180 to 365.192, inclusive, and section 59

of this act; and

(b) Elects to defer payment of the taxes,

he shall, not later than 25 days after the end of the month in which the

fuel is purchased, pay the taxes to the supplier by electronic transfer of

money.

4. If a purchaser fails to make a payment to a supplier as required by

this section, the department may:

(a) Revoke the permit of the purchaser;

(b) If the purchaser was required to provide a bond pursuant to

subsection 2, require the purchaser to increase the amount of the bond;

or

(c) Take any other action to ensure that the taxes imposed pursuant to

NRS 365.180 to 365.192, inclusive, and section 59 of this act are paid. 5. The department shall notify each supplier in this state when it

revokes a permit issued pursuant to this section.

6. The department shall adopt regulations to carry out the provisions

of this section.

7. As used in this section, "electronic transfer of money" means any

transfer of money, other than a transaction initiated by a check, draft or

other similar instrument, that is initiated through an electronic terminal,

telephone, computer or magnetic tape to order, instruct or authorize a

financial institution or person holding an account on behalf of a

purchaser or motor vehicle fuel to debit an account.

Sec. 63. 1. Each supplier shall prepare and provide a record of

shipment to each person who purchases more than 25 gallons of motor

vehicle fuel, other than aviation fuel, and transports the fuel from the

place of purchase. The record of the shipment must include the:

(a) Place where the fuel was purchased;

(b) Place to which the purchaser declares the fuel will be transported;

(c) Number of gallons of fuel transported; and

(d) Name and address of the purchaser of the fuel.

2. Each person who transports motor vehicle fuel, other than

aviation fuel, in this state shall:

(a) Keep the record of shipment required by subsection 1 in the

vehicle in which the fuel is transported until the fuel is delivered to the

purchaser; and

(b) Upon request from a peace officer, allow the peace officer to

inspect the record of shipment.

Sec. 64. An exporter shall not sell or distribute motor vehicle fuel,

other than aviation fuel, in this state. An exporter who violates the

provisions of this section:

1. Is guilty of a misdemeanor; and

2. Shall, within the period prescribed in section 59 of this act, pay to

the department the taxes imposed pursuant to NRS 365.180 to 365.192,

inclusive, and section 59 of this act on all motor vehicle fuel, other than

aviation fuel, sold or distributed in this state.

Sec. 65. 1. The department may, for good cause, extend for not

more than 30 days the period for making any report or return required

pursuant to this chapter. The extension may be granted at any time if:

(a) A request for an extension has been filed with the department

within or before the period for which the extension may be granted; and

(b) A remittance of the estimated tax is made when the remittance is

due.

2. Any report, return, remittance to cover a payment or claim for

credit or refund required by this chapter which is transmitted through the

United States mail shall be deemed filed or received by the department on

the date indicated on the post office cancellation mark stamped upon the envelope containing it, or on the date it was mailed if proof satisfactory

to the department establishes that the document or remittance was timely

deposited in the United States mail and properly addressed to the

department.

Sec. 66. 1. The department may impose an administrative fine, not

to exceed $2,500, for a violation of any provision of this chapter, or any

regulation or order adopted or issued pursuant thereto. The department

shall afford to any person so fined an opportunity for a hearing pursuant

to the provisions of NRS 233B.121.
2. All administrative fines collected by the department pursuant to

subsection 1 must be deposited with the state treasurer to the credit of the

state highway fund.

3. In addition to any other remedy provided by this chapter, the

department may compel compliance with any provision of this chapter

and any regulation or order adopted or issued pursuant thereto by

injunction or other appropriate remedy. The department may institute

and maintain in the name of the State of Nevada any such enforcement

proceedings.

Sec. 67. NRS 365.010 is hereby amended to read as follows:

365.010 [~~Except where]~~ As used in this chapter, unless the context

otherwise requires, the [~~definitions given in this chapter govern the~~

~~construction of this chapter.]~~ words and terms defined in NRS 365.015 to

365.080, inclusive, and sections 52 to 56, inclusive, of this act, have the

meanings ascribed to them in those sections.

Sec. 68. NRS 365.020 is hereby amended to read as follows:

365.020 1. "Dealer" means every person who:

(a) Refines, manufactures, compounds or otherwise produces [~~motor~~

~~vehicle]~~ aviation fuel or fuel for jet or turbine-powered aircraft and sells or

distributes the same in this state.

(b) [~~Refines, manufactures, compounds or otherwise produces ethyl~~

alcohol for use in a petroleum-ethanol mixture and sells or distributes the

same in this state.

~~(c) Imports motor vehicle]~~ Imports aviation fuel or fuel for jet or

turbine-powered aircraft into this state and sells or distributes it therein,

whether in the original package or container in which it is imported or

otherwise, or who uses the [~~motor vehicle]~~ aviation fuel or fuel for jet or

turbine-powered aircraft in this state after having imported the fuel.

[~~(d)]~~ (c) Having acquired [~~motor vehicle]~~ aviation fuel or fuel for jet or

turbine-powered aircraft in this state in the original package or container,

distributes or sells it in the original package or container or otherwise, or in

any manner uses the fuel.

[~~(e)]~~ (d) Otherwise acquires in this state for sale, use or distribution in

this state [~~motor vehicle]~~ aviation fuel or fuel for jet or turbine-powered

aircraft with respect to which there has been no prior taxable sale, use or

distribution. 2. "Dealer" does not include any person who imports into this state

~~[motor vehicle]~~ aviation fuel, fuel for jet or turbine-powered aircraft [~~, or~~

~~ethyl alcohol]~~ in quantities of 500 gallons or less purchased from [a

~~supplier]~~ another dealer who is licensed [~~as a dealer]~~ under this chapter

and who assumes liability for the collection and remittance of the

applicable excise tax to this state.

Sec. 69. NRS 365.080 is hereby amended to read as follows:

365.080 "Retailer" means [~~every]~~ :

1. Any person, other than a dealer [~~as defined in NRS 365.020,]~~ who is

engaged in the business of selling motor vehicle fuel or fuel for jet or

turbine-powered aircraft [.] ; or

2. Any person in the business of handling motor vehicle fuel, other

than aviation fuel, who delivers or authorizes the delivery of fuel into the

fuel supply tank or tanks of a motor vehicle that is not owned or

controlled by him.

Sec. 70. NRS 365.130 is hereby amended to read as follows:

365.130 1. The department [~~shall have power, by itself or by its duly]~~

or its authorized agents [~~, to]~~ may make any audit, examination or inquiry

of and concerning the records, stocks, facilities, equipment and transactions

of dealers, suppliers, retailers of petroleum products and carriers [~~thereof,]~~

of petroleum products, and such other investigations as it [~~may deem~~

~~necessary in carrying]~~ deems necessary to carry out the provisions of this

chapter.

2. If any investigation discloses that any report or any payment has

been incorrect, the department may make such changes in subsequent

reports and payments as may be necessary to correct the error so disclosed.

Sec. 71. NRS 365.170 is hereby amended to read as follows:

365.170 1. [~~Every]~~ Except as otherwise provided in section 65 of

this act, every dealer shall, not later than the [~~25th]~~ last day of each

calendar month:

(a) Render to the department a statement of all [~~motor vehicle]~~ aviation

fuel and fuel for jet or turbine-powered aircraft sold, distributed or used by

him in [~~the State of Nevada,]~~ this state, as well as all such fuel sold,

distributed or used in this state by a purchaser thereof upon which sale,

distribution or use the dealer has assumed liability for the tax thereon

pursuant to NRS 365.020, during the preceding calendar month; and

(b) Pay an excise tax on:

(1) All fuel for jet or turbine-powered aircraft in the amount of 1 cent

per gallon, plus any amount imposed by the county in which the fuel is

sold, distributed or used pursuant to NRS 365.203; and

(2) Aviation fuel in the amount of 2 cents per gallon, plus any amount

imposed by the county in which the fuel is sold, distributed or used

pursuant to NRS 365.203 , [~~; and~~

(3) All other motor vehicle fuel in the amount of 17.65 cents per

gallon,]

so sold, distributed or used, in the manner and within the time prescribed in

this chapter.

2. A dealer shall hold the amount of all taxes collected pursuant to this

chapter in a separate account in trust for the state.

[~~3. The department for good cause may extend for not more than 30~~

days the time for making any report or return required pursuant to this

chapter. The extension may be granted at any time if:

(a) A request therefor has been filed with the department within or

before the period for which the extension may be granted; and

(b) A remittance of the estimated tax is made when due.

4. Any report, return, remittance to cover a payment or claim for credit

or refund required by this chapter which is transmitted through the United

States mail shall be deemed filed or received by the department on the date

shown by the post office cancellation mark stamped upon the envelope

containing it, or on the date it was mailed if proof satisfactory to the

department establishes that the document or remittance was timely

deposited in the United States mail properly addressed to the department.]

Sec. 72. NRS 365.180 is hereby amended to read as follows:

365.180 1. In addition to any other tax provided for in this chapter,

there is hereby levied an excise tax of 3.6 cents per gallon on all motor

vehicle fuel, except aviation fuel.

2. This tax must be accounted for by each [~~dealer]~~ supplier and be

collected in the manner provided in this chapter. The tax must be paid to

the department and delivered by the department to the state treasurer.

Sec. 73. NRS 365.185 is hereby amended to read as follows:

365.185 1. In addition to any other tax provided for in this chapter,

there [~~must be]~~ is hereby levied an excise tax on [~~gasoline.]~~ motor vehicle

fuel.

2. This tax must be imposed and will increase if the tax collected by

the Federal Government pursuant to the provisions of 26 U.S.C. § 4081 or

any other tax collected by the Federal Government relating to [~~gasoline]~~

motor vehicle fuel is reduced or discontinued in whole or in part. The

amount of the tax so imposed by this state must be equal to the amount by

which the federal tax is reduced.

3. This tax must be accounted for by each [~~dealer]~~ supplier and

collected in the manner provided in this chapter. The tax must be paid to

the department and delivered by the department to the state treasurer.

Sec. 74. NRS 365.190 is hereby amended to read as follows:

365.190 1. Subject to the provisions of subsection 3, in addition to

any other tax provided for in this chapter, there is hereby levied an excise

tax of 1.75 cents per gallon on all motor vehicle fuel, except aviation fuel.

2. [~~This tax must be accounted for by each dealer as to the county in~~

~~which it is sold to the retailer and]~~ The tax imposed pursuant to this

section must be collected by the supplier in the manner provided in thischapter. Upon the collection of the tax by the supplier, the purchaser of

the fuel shall provide to the supplier a statement that sets forth the

number of gallons of fuel that will be sold to retailers in each county in

this state. The tax must be paid to the department and delivered by the

department to the state treasurer. When the tax is paid to the department,

the supplier shall provide to the department a copy of the statement

provided to the supplier by the purchaser pursuant to this subsection.

3. The provisions of this section shall be deemed to be optional. The

board of county commissioners of any county may decline to accept the

additional tax levied pursuant to this section by the adoption of a

resolution passed before July 1, 1947, which must be reconsidered and

passed once each year within 60 days before July 1 of each year as long as

the board of county commissioners desires so to act. Upon the adoption of

such a resolution no tax may be collected.

Sec. 75. NRS 365.192 is hereby amended to read as follows:

365.192 1. In addition to any other tax provided for in this chapter,

there is hereby levied an excise tax of 1 cent per gallon on motor vehicle

fuel, except aviation fuel.

2. [~~This tax must be accounted for by each dealer as to the county in~~

~~which the motor vehicle fuel is sold to the retailer and]~~ The tax imposed

pursuant to this section must be collected by the supplier in the manner

provided in this chapter. Upon the collection of the tax by the supplier, the

purchaser of the fuel shall provide to the supplier a statement that sets

forth the number of gallons of fuel that will be sold to retailers in each

county in this state. The tax must be paid to the department and delivered

by the department to the state treasurer. When the tax is paid to the

department, the supplier shall provide to the department a copy of the

statement provided to the supplier by the purchaser pursuant to this

subsection.

Sec. 76. NRS 365.196 is hereby amended to read as follows:

365.196 1. The receipts of the tax as levied in NRS 365.192 must be

allocated monthly by the department to the counties in [~~which the tax~~

~~payments originate.]~~ proportion to the number of gallons of fuel that are

sold to the retailers in each county pursuant to the information contained

in the statements provided to the department pursuant to NRS 365.192.

2. Each county must apportion the receipts of that tax among the

county, for unincorporated areas of the county, and each incorporated city

in the county. The county and each city are respectively entitled to receive

each month that proportion of those receipts which its total population

bears to the total population of the county.

3. During the month immediately preceding each January 1 and July 1,

the county treasurer of each county shall, when necessary and after a

hearing, adopt a regulation which provides for the accurate apportionment

of those receipts in the county during the ensuing 6 months.

4. The money apportioned to the county or a city must be used by it

solely to repair or restore existing paved roads, streets and alleys, otherthan those maintained by the Federal Government and this state, by

resurfacing, overlaying, resealing or other such customary methods.

Sec. 77. NRS 365.200 is hereby amended to read as follows:

365.200 1. In addition to any other taxes provided for by this

chapter, every person who [~~shall use]~~ uses any inflammable or combustible

liquid or other material other than motor vehicle fuel [~~as defined in NRS~~

~~365.060]~~ to operate a motor vehicle on the highways of this state, except

special fuel as defined in NRS 366.060, shall pay an excise tax as provided

by NRS [~~365.170,]~~ 365.180 and 365.190 and section 59 of this act for

each gallon thereof so used, and shall render monthly statements and make

monthly payments at the times and in the manner prescribed for [~~dealers]~~ a

supplier in this chapter.

2. Any owner or operator of a motor vehicle who [~~shall import]~~

imports motor vehicle fuel or other fuel or material, except special fuel as

defined in NRS 366.060, into this state, from another state or from federal

proprietary lands or reservations, in the fuel tank or tanks of any such

motor vehicle in a quantity exceeding 25 gallons shall, upon demand of the

department or its [~~duly]~~ authorized agent, pay to the department on such

excess motor vehicle fuel the excise tax required to be paid by [~~dealers.~~

~~3. Nothing in this chapter shall be construed to]~~ a supplier.

3. Any person who resells any motor vehicle fuel exempt from

taxation pursuant to NRS 365.220 to 365.260, inclusive, for use that is

not exempt pursuant to those provisions shall collect the excise tax

required to be paid on the motor vehicle fuel and remit it to the

department.

4. The provisions of this chapter do not require more than one

payment of any excise tax upon or in respect to the same fuel.

Sec. 78. NRS 365.205 is hereby amended to read as follows:

365.205 1. A retailer of [~~motor vehicle]~~ aviation fuel who receives or

sells [~~motor vehicle]~~ aviation fuel for which the taxes imposed pursuant to

this chapter have not been paid is liable for the taxes and any applicable

penalty or interest if the retailer knew or should have known that the

applicable taxes on the fuel had not been paid.

2. For the purposes of subsection 1, a retailer who verifies the

identification number printed on the delivery ticket of the dealer shall be

deemed to have acted without knowledge of the fact of nonpayment.

Sec. 79. NRS 365.207 is hereby amended to read as follows:

365.207 1. A responsible person who willfully fails to collect or pay

to the department the tax imposed by this chapter or who willfully attempts

to evade the payment of the tax is jointly and severally liable with the

dealer or supplier for the tax owed , plus interest and all applicable

penalties. The responsible person shall pay the tax upon notice from the

department that it is due.

2. As used in this section, "responsible person" includes:

(a) An officer or employee of a corporation; and

(b) A member or employee of a partnership or limited-liability

company,

whose job or duty it is to collect, account for or pay to the department the

tax imposed by this chapter.

Sec. 80. NRS 365.220 is hereby amended to read as follows:

365.220 The provisions of this chapter requiring the payment of excise

taxes do not apply to : [~~any of the following:]~~

1. Motor vehicle fuel [~~so long as]~~ if it remains in interstate or foreign

commerce.

2. Motor vehicle fuel , except aviation fuel, exported from this state

by a supplier.

3. Aviation fuel or fuel for jet or turbine-powered aircraft exported

from this state by a dealer.

[~~3.]~~ 4. Motor vehicle fuel or fuel for jet or turbine-powered aircraft

sold to the United States Government for official use of the United States

Armed Forces.

[~~4.]~~ 5. Motor vehicle fuel , other than aviation fuel, distributed or

delivered on the order of the owner, to a supplier, or aviation fuel or fuel

for jet or turbine-powered aircraft distributed [,] or delivered on the order

of the owner, to a dealer [~~who]~~ , if the dealer or supplier has furnished

security in the amount prescribed in NRS 365.290 and [~~who]~~ has

established to the satisfaction of the department that the security is

sufficient to ensure payment of all excise taxes as they may become due to

the state from him under this chapter. Every dealer or supplier who claims

an exemption shall report the distributions to the department in such detail

as the department may require. If he does not do so, the exemption granted

in this subsection is void and all fuel is considered distributed in this state

subject fully to the provisions of this chapter.

[~~5.]~~ 6. Leaded racing fuel. As used in this subsection, "leaded racing

fuel" means motor vehicle fuel that contains lead and is produced for motor

vehicles that are designed and built for racing and not for operation on a

public highway.

Sec. 81. NRS 365.230 is hereby amended to read as follows:

365.230 1. The provisions of this chapter requiring the payment of

excise taxes do not apply to [~~motor]~~ :

(a) Motor vehicle fuel , other than aviation fuel, sold by a supplier; or

(b) Aviation fuel or fuel for jet or turbine-powered aircraft sold by a

dealer ,

in individual quantities of 500 gallons or less for export to another state or

country by the purchaser other than in the supply tank of a motor vehicle or

an aircraft, if the dealer or supplier is licensed in the state of destination to

collect and remit the applicable destination state taxes thereon.

2. In support of any exemption from taxes on account of sales of motor

vehicle fuel or fuel for jet or turbine-powered aircraft in individual

quantities of 500 gallons or less for export by the purchaser, the dealer or

supplier who sold the fuel to the purchaser shall retain in his files for at

least 3 years an export certificate executed by the purchaser in such form

and containing such information as is prescribed by the department. This

certificate is prima facie evidence of the exportation of the motor vehicle

fuel or fuel for jet or turbine-powered aircraft to which it applies only if

accepted by the dealer or supplier in good faith. If the purchaser fails to

export any part of the motor vehicle fuel or fuel for jet or turbine-powered

aircraft covered by the certificate, he shall remit to the department

immediately thereafter the applicable amount in taxes due on the part not

exported. Upon failure to do so the purchaser is subject to all penalties in

this chapter for delinquency in payment of taxes.

Sec. 82. NRS 365.240 is hereby amended to read as follows:

365.240 1. Every dealer and supplier shall report such exports and

sales to the department at such times, on such forms and in such detail as

the department may require.

2. Every dealer and supplier shall mark clearly upon each invoice

rendered for sales upon which no excise tax is required under NRS 365.220

and 365.230 "Ex Nevada Motor Vehicle Fuel Tax" or "Ex Nevada Fuel for

Jet or Turbine-Powered Aircraft Tax," whichever is applicable.

Sec. 83. NRS 365.270 is hereby amended to read as follows:

365.270 1. After April 1, 1935, it [~~shall be]~~ is unlawful for any

person to be a dealer without holding a license of a dealer as provided for

in this chapter.

2. After January 1, 2002, it is unlawful for any person to be a

supplier without holding a license of a supplier as provided for in this

chapter.

Sec. 84. NRS 365.280 is hereby amended to read as follows:

365.280 [~~1.]~~ Before becoming a dealer [~~, every]~~ or supplier, a

person shall apply to the department, on forms to be prescribed and

furnished by the department, for a license authorizing the applicant to

engage in business as a dealer [.

2. The fee for each license issued shall be $5, which shall be paid to

the department. All such fees shall be delivered by the department to the

~~state treasurer and shall be credited by him to the state highway fund.]~~ or

supplier.

Sec. 85. NRS 365.290 is hereby amended to read as follows:

365.290 1. Before granting any license the department shall require

the applicant to file with the department a bond executed by the applicant

as principal, and by a corporation qualified under the laws of this state as

surety, payable to [~~the State of Nevada,]~~ this state and conditioned upon

the faithful performance of all the requirements of this chapter and upon the

punctual payment of all excise taxes, penalties and other obligations of the

applicant as a dealer [.] or supplier. 2. The total amount of the bond or bonds required of any dealer [~~may]~~

or supplier must be fixed by the department at three times the estimated

maximum monthly tax, determined in such a manner as the department

deems proper [.] , or $1,000, whichever is greater. If the department

determines that a person is habitually delinquent in the payment of amounts

due pursuant to this chapter, it may increase the amount of his security to

not more than five times the estimated maximum monthly tax. When cash

or a savings certificate, certificate of deposit or investment certificate is

used, the amount required must be rounded off to the next larger integral

multiple of $100, within the same upper limit.

3. The department may increase or decrease the amount of security

required by this section subject to the limitations provided in this section.

4. No recovery on any bond, nor the execution of any new bond, nor

the revocation, cancellation or suspension of any license affects the validity

of any bond.

5. In lieu of any bond or bonds, a dealer or supplier may deposit with

the department, under such terms and conditions as the department may

prescribe, a like amount of lawful money of the United States or any other

form of security authorized by NRS 100.065. If security is provided in the

form of a savings certificate, certificate of deposit or investment certificate,

the certificate must state that the amount is unavailable for withdrawal

except upon order of the department.

Sec. 86. NRS 365.300 is hereby amended to read as follows:

365.300 1. Upon approval of the application the department shall

issue to the dealer [:] or supplier:

(a) An identification number; and

(b) A nonassignable license with a duplicate copy for each place of

business of the dealer or supplier in this state.

2. Each license and all duplicates must bear the [~~dealer's]~~ identification

number [.] of the dealer or supplier.

3. The license continues in force until canceled, suspended or revoked.

4. The dealer or supplier shall have his identification number printed

on each of his delivery tickets.

Sec. 87. NRS 365.310 is hereby amended to read as follows:

365.310 1. The department [~~shall have power to]~~ may suspend,

cancel or revoke the license of any dealer or supplier refusing or neglecting

to comply with the provisions of this chapter.

2. If a dealer or supplier becomes delinquent in the payment of excise

taxes as prescribed by this chapter to the extent that his liability exceeds the

total amount of the bond or bonds furnished by the dealer [,] or supplier,

the department shall suspend his license immediately.

3. Before revoking or canceling any license issued under this chapter,

the department shall send a notice by registered or certified mail to the

dealer or supplier at his last known address. The notice [~~shall]~~ must order

the dealer or supplier to show cause why his license should not be revoked

by appearing before the department at Carson City, Nevada, or such otherplace in this state as may be designated by the department, at a time not less

than 10 days after the mailing of the notice. The department shall allow the

dealer or supplier an opportunity to be heard in pursuance of [~~such]~~ the

notice, and thereafter the department [~~shall have full power to]~~ may revoke

or cancel his license.

Sec. 88. NRS 365.330 is hereby amended to read as follows:

365.330 1. The excise taxes prescribed in this chapter [~~shall]~~ must be

paid on or before the [~~25th]~~ last day of each calendar month to the

department. The department shall deliver [~~all such]~~ the taxes to the state

treasurer, who shall [~~receipt]~~ provide to the dealer , supplier or user

~~[therefor.]~~ a receipt for the payment of the taxes.

2. From the tax found to be due upon any statement [~~duly and~~

~~punctually rendered,]~~ submitted by a dealer pursuant to NRS 365.170 or a

user pursuant to NRS 365.200, the dealer or user [~~shall be allowed to~~

~~deduct]~~ may retain an amount equal to 2 percent [~~thereof]~~ of the amount

of the tax collected to cover the dealer's or user's costs of collection of the

tax and of compliance with this chapter and the dealer's or user's handling

losses occasioned by evaporation, spillage or other similar causes.

3. Each supplier may retain an amount equal to 2 percent of the

amount of the tax collected by the supplier as a fee for making the

collection.

Sec. 89. NRS 365.340 is hereby amended to read as follows:

365.340 1. If the amount of any excise tax for any month is not paid

to the state on or before the [~~25th]~~ last day of the next month, it becomes

delinquent at the close of business on that day. A dealer , supplier or user

may have up to 15 additional days to make the payment [,] if he makes

application to the department and the department finds good cause for the

extension.

2. The proceeds from any penalty levied for the delinquent payment of

an excise tax must be allocated proportionately to the state highway fund,

the county gas tax funds, the account for taxes on aviation fuel and the

account for taxes on fuel for jet or turbine-powered aircraft by the

department.

Sec. 90. NRS 365.380 is hereby amended to read as follows:

365.380 1. A claimant for refund must present to the department a

refund claim form accompanied by the original invoices showing the

purchase. The refund forms must state the total amount of fuel so purchased

and used otherwise than for the propulsion of motor vehicles or jet or

turbine-powered aircraft and the manner and the equipment in which the

claimant has used the fuel.

2. A claimant for refund of tax on motor vehicle fuel or fuel for jet or

turbine-powered aircraft purchased and exported from this state shall

execute and furnish to the department a certificate of exportation on such

form as may be prescribed by the department.

3. An invoice to qualify for refund must contain at least:

(a) The number of gallons of fuel purchased;

(b) The price per gallon;

(d) Such other information as may be prescribed by the department.

4. The signature on the refund claim form subjects the claimant to the

charge of perjury for false statements contained on the refund application.

5. Daily records must be maintained and preserved for a period of 3

years for audit purposes of all motor vehicle fuel and fuel for jet or turbine-

powered aircraft used. The record must set forth:

(a) The piece of equipment being supplied with the fuel;

(b) The number of gallons of fuel used in each fill; and

The [~~gasoline]~~ motor vehicle fuel fills must be further classified [~~as to on-~~

~~or off-highway use.]~~ according to whether the motor vehicle fuel was used

on or off the highway.

6. If a motor vehicle with auxiliary equipment consumes motor vehicle

fuel and there is no auxiliary motor or separate tank for the motor, a refund

of 20 percent of the tax paid on the fuel used in the vehicle may be claimed

without the necessity of furnishing proof of the amount of fuel consumed in

the operation of the auxiliary equipment. [~~Where claims for refund exceed~~

~~20 percent the]~~ The department shall, by regulation, establish uniform

refund provisions for the respective classes of users [.] who claim refunds

of more than 20 percent of the tax paid.

7. No person may be granted a refund of motor vehicle fuel taxes for

off-highway use when the consumption takes place on highways

constructed and maintained by public funds, on federal proprietary lands or

reservations where the claimant has no ownership or control over the land

or highways, except when the person is under a contractual relationship

with the Federal Government or one of its agencies and is engaged in the

performance of his duties pursuant to that relationship. Employment of a

person by the Federal Government or any of its agencies does not constitute

a contractual relationship for the purpose of this subsection.

8. [~~When]~~ If, in the opinion of the department , it would be beneficial

to the state for a refund claimant to become a licensed dealer [,] or

supplier, the claimant may, at the option of the department, be required to

become a licensed dealer or supplier rather than a refund claimant unless

the claimant chooses to claim refunds at the tax rate, less 2 percent.

Sec. 91. NRS 365.390 is hereby amended to read as follows:

365.390 Upon the presentation of [~~such affidavits,]~~ the invoices,

written statements, tax exemption certificates or exportation certificates [,]

required pursuant to this chapter, the department shall cause to be repaid

to the claimant from the taxes collected under this chapter an amount equal

to the taxes [~~so]~~ paid by the claimant less the percentage allowed the dealer

, supplier or user pursuant to NRS 365.330.

Sec. 92. NRS 365.440 is hereby amended to read as follows:

365.440 In lieu of the collection and refund of the tax on motor vehicle

fuel or fuel for jet or turbine-powered aircraft used by a dealer or supplier

in such a manner as would entitle a purchaser to claim a refund under the

provisions of this chapter, or in lieu of the refund of any prior erroneous

payment of tax on motor vehicle fuel or fuel for jet or turbine-powered

aircraft to the department made by a dealer [,] or supplier, credit may be

given the dealer or supplier upon his tax return and assessment.

Sec. 93. NRS 365.460 is hereby amended to read as follows:

365.460 After payment of any excise tax under protest duly verified,

served on the department, and setting forth the grounds of objection to the

legality of the excise tax, the dealer or supplier paying the excise tax may

bring an action against the state treasurer in the district court in and for

Carson City for the recovery of the excise tax so paid under protest.

Sec. 94. NRS 365.490 is hereby amended to read as follows:

365.490 A judgment shall not be rendered in favor of the plaintiff in

any action brought against the state treasurer to recover any excise tax paid

under this chapter when such action is brought by or in the name of an

assignee of the dealer or supplier paying the excise tax, or by any person,

company or corporation other than the person, company or corporation

which has paid the excise tax.

Sec. 95. NRS 365.500 is hereby amended to read as follows:

365.500 1. Every dealer and supplier shall cause to be kept a true

record, in such form as may be prescribed or approved by the department,

of all stocks of motor vehicle fuel and fuel for jet or turbine-powered

aircraft and of other inflammable or combustible liquids, and of all

manufacture, refining, compounding, blending, purchases, receipts,

transportations, use, sales and distribution thereof.

2. [~~Such]~~ The records are subject to inspection at all times within

business hours by the department or its authorized agents, and must remain

available for inspection for a period of 3 years [~~from]~~ after the date of any

entry therein.

3. [~~Should any dealer wish]~~ If a dealer or supplier wishes to keep

proper books and records pertaining to business done in Nevada elsewhere

than within the State of Nevada for inspection as provided in this section,

he must pay a fee for the examination in an amount per day equal to the

amount set by law for out-of-state travel for each day or fraction thereof

during which the examiner is actually engaged in examining the [~~dealer's~~

~~books,]~~ books of the dealer or supplier, plus the actual expenses of the

examiner during the time that the examiner is absent from Carson City,

Nevada, for the purpose of making the examination , [;] but the time must

not exceed 1 day going to and 1 day coming from the place where the

examination is to be made in addition to the number of days or fractions

thereof the examiner is actually engaged in auditing the dealer's or

supplier's books. Not more than two such examinations may be charged

against any dealer or supplier in any year. 4. Any money received must be deposited by the department to the

credit of the fund or operating account from which the expenditures for the

examination were paid.

5. Upon the demand of the department [~~or at such times as the tax~~

~~commission may prescribe by regulation, every]~~ , each dealer or supplier

shall furnish a statement showing the contents of the records to such extent

~~[,]~~ and in such detail and [~~in such]~~ form as the department may require.

Sec. 96. NRS 365.530 is hereby amended to read as follows:

365.530 1. Every person transporting on any highway [~~of the State of~~

~~Nevada motor vehicle]~~ in this state aviation fuel or fuel for jet or turbine-

powered aircraft or other inflammable or combustible liquids in an amount

of 25 gallons or more shall have in his possession at all times [~~during such~~

~~transportation]~~ while transporting the fuel an invoice, bill of sale or other

document showing the name and address of the seller or consignor and of

the buyer or consignee, if any, of the product so transported.

2. Any person engaged in transporting [~~motor vehicle]~~ aviation fuel or

fuel for jet or turbine-powered aircraft or other inflammable or combustible

liquids by tank truck or tank truck and trailer to be delivered to a dealer or

any reseller of such products or to persons known to the trade as

commercial consumers is required only to have in his possession adequate

evidence showing the amount of the [~~motor vehicle]~~ aviation fuel, fuel for

jet or turbine-powered aircraft or other inflammable or combustible liquids

loaded in his conveyance at the time the conveyance left its loading point,

and the name and address of the dealer who has assumed or is charged with

the responsibility for the payment of the tax due thereon, if any. The date of

the delivery [~~thereto]~~ of the fuel to the dealer must be furnished to the

department upon request.

3. A person shall produce and exhibit the documentation and evidence

required to be in his possession by this section to any sheriff, deputy

sheriff, police officer or authorized agent of the department upon request. If

the person fails to produce the documentation and evidence, the sheriff,

deputy sheriff, police officer or authorized agent of the department may

seize and detain the truck and trailer and the fuel or other inflammable or

combustible liquid until the documentation and evidence are produced and

any taxes due are paid.

Sec. 97. NRS 365.535 is hereby amended to read as follows:

365.535 1. It is declared to be the policy of the State of Nevada to

apply the tax on motor vehicle fuel paid on fuel used in watercraft for

recreational purposes during each calendar year, which is hereby declared

to be not refundable to the consumer, for the improvement of boating and

the improvement, operation and maintenance of other outdoor recreational

facilities associated with boating and for the payment of the costs incurred,

in part, for the administration and enforcement of the provisions of chapter

488 of NRS. 2. The amount of excise taxes paid on all motor vehicle fuel used in

watercraft for recreational purposes must be determined annually by the

department by use of the following formula:

(a) Multiplying the total boats with motors registered the previous

calendar year, pursuant to provisions of chapter 488 of NRS, times 220.76

gallons average fuel purchased per boat;

(b) Adding 566,771 gallons of fuel purchased by out-of-state boaters as

determined through a study conducted during 1969-1970 by the division of

agricultural and resource economics, Max C. Fleischmann college of

agriculture, University of Nevada, Reno; and

under paragraph (a) to the figure in paragraph (b) times the rate of tax, per

gallon, imposed on motor vehicle fuel used in watercraft for recreational

purposes, less the percentage of the tax authorized to be deducted by the

~~[dealer]~~ supplier pursuant to NRS 365.330.

3. The division of wildlife of the state department of conservation and

natural resources shall submit annually to the department, on or before

April 1, the number of boats with motors registered in the previous

calendar year. On or before June 1, the department, using that data, shall

compute the amount of excise taxes paid on all motor vehicle fuel used in

watercraft for recreational purposes based on the formula set forth in

subsection 2, and shall certify the ratio for apportionment and distribution,

in writing, to the division of wildlife of the state department of conservation

and natural resources and to the division of state parks of the state

department of conservation and natural resources for the next fiscal year.

4. In each fiscal year, the state treasurer shall, upon receipt of the tax

money from the department collected pursuant to the provisions of NRS

~~[365.170 to 365.190, inclusive,]~~ 365.180, 365.185 and 365.190 and

section 59 of this act allocate the amount determined pursuant to

subsection 2, in proportions directed by the legislature, to:

(a) The wildlife account in the state general fund. This money may be

expended only for the administration and enforcement of the provisions of

chapter 488 of NRS and for the improvement, operation and maintenance

of boating facilities and other outdoor recreational facilities associated with

boating on state-owned wildlife management areas. Any of this money

declared by the division of wildlife of the state department of conservation

and natural resources to be in excess of its immediate requirements for

these purposes may be transferred to the credit of the parks marina

development fund for use by the division of state parks of the state

department of conservation and natural resources in accordance with the

provisions of paragraph (b).

(b) The parks marina development fund which is hereby created as a

special revenue fund for use by the division of state parks of the state

department of conservation and natural resources. All money so deposited

to the credit of the division of state parks may be expended only as

authorized by the legislature for the improvement, operation andmaintenance of boating facilities and other outdoor recreational facilities

associated with boating.

5. Money that the state treasurer is required to allocate pursuant to the

provisions of subsection 4 may be paid quarterly or oftener if convenient to

the state treasurer.

Sec. 98. NRS 365.540 is hereby amended to read as follows:

365.540 1. The money collected, as prescribed by NRS [~~365.170 and~~

~~365.185,]~~ 365.185 and section 59 of this act, from the tax on motor vehicle

fuels, other than aviation fuel, after the remittances and deposits have first

been made pursuant to the provisions of NRS 365.535, must be placed to

the credit of the state highway fund by the state treasurer. An amount equal

to that part of the tax collected pursuant to [~~subparagraph (3) of paragraph~~

~~(b) of subsection 1 of NRS 365.170,]~~ section 59 of this act, which

represents 5 cents of the tax per gallon must be used exclusively for the

construction and maintenance of public highways, and may not be used to

purchase equipment related thereto.

2. The money collected, as prescribed by NRS 365.180 and 365.190,

after the remittances and deposits have first been made pursuant to the

provisions of NRS 365.535, must be allocated by the department to the

counties as prescribed in NRS 365.550 and 365.560.

3. The money collected as prescribed by NRS 365.200 must be

allocated by the department as prescribed by NRS 365.550 and 365.560.

4. The money collected from the tax on aviation fuel must be deposited

by the department with the state treasurer for credit to the account for taxes

on aviation fuel, which is hereby created as a revolving account.

Sec. 99. NRS 365.570 is hereby amended to read as follows:

365.570 1. It is unlawful for any person:

(a) To refuse or neglect to make any statement, report or return required

by the provisions of this chapter;

(b) Knowingly to make, or aid or assist any other person in making, a

false statement in a report to the department or in connection with an

application for refund of any tax;

him or to any person, either directly or indirectly, any refund of any tax

without being entitled to the same;

(d) To engage in business in this state as a dealer or supplier or to act as

a carrier of motor vehicle fuel, fuel for jet or turbine-powered aircraft,

special fuel or other inflammable or combustible liquids without being the

holder of an uncanceled license authorizing him to engage in such business

or to act in such capacity;

(e) To sell any motor vehicle fuel or fuel for jet or turbine-powered

aircraft upon which the tax imposed by this chapter has not been paid,

purchased by or consigned to him by any person other than a licensed

dealer [;] or supplier; or (f) To act as an agent to sell any motor vehicle fuel or fuel for jet or

turbine-powered aircraft, obtained in any manner, upon which the tax

imposed by this chapter has not been paid.

2. Each day or part thereof during which any person engages in

business as a dealer or supplier without being the holder of an uncanceled

license constitutes a separate offense within the meaning of this section.

Sec. 100. NRS 366.175 is hereby amended to read as follows:

366.175 1. To the extent permitted by federal law, the department

may enter into cooperative agreements with other states and countries for

the exchange of information regarding, and the auditing of, persons who

use special fuel in motor vehicles operated or intended to operate interstate.

Any agreement, arrangement or declaration, or any amendment thereto, is

not effective until reduced to writing and signed by the parties thereto or

their authorized representatives.

2. An agreement may include, with respect to persons who use special

fuel, provisions:

(a) For determining the domicile of those persons;

(b) Specifying the records which are required to be kept by those

persons;

persons eligible for licensing;

(d) Defining various words and terms;

(e) Setting forth the procedure for collecting special fuel taxes owing to

another jurisdiction and forwarding those taxes to that jurisdiction; and

(f) Designed to facilitate the administration of the agreement.

3. The department may, pursuant to the terms of an agreement, forward

to the designated representatives of another jurisdiction any information in

its possession relating to the manufacture, transportation, shipment, sale or

use of special fuel by any person, and the location within this state of any

motor vehicles owned by a person who has been identified by another

jurisdiction as a user of special fuel.

4. An agreement may provide that each jurisdiction shall audit the

records of persons residing or doing business within that jurisdiction to

determine if the special fuel taxes owing to each jurisdiction have been

properly reported and paid, and requiring each jurisdiction to forward the

findings of its audits to every other jurisdiction in which the person who is

the subject of an audit has incurred tax liability as a result of his use of

special fuel. The audit findings received from another jurisdiction may be

used by the department as the basis for an estimated assessment of tax due

from a person pursuant to the provisions of [~~NRS 366.405.]~~ section 4 of

this act.

5. Any agreement entered into pursuant to the provisions of this section

does not preclude the department from auditing the records of any person

subject to the provisions of this chapter.

Sec. 100.5. NRS 366.395 is hereby amended to read as follows:

366.395 1. Any [~~person]~~ special fuel user who fails to pay any

excise tax [~~, except taxes assessed pursuant to the provisions of NRS~~

~~366.405,]~~ within the time prescribed by this chapter shall pay, in addition to

the tax, a penalty of [:

(a) If the amount of the tax owed is $50 or more, 10 percent of the

amount owed or $50, whichever is greater; or

~~(b) If the amount of the tax owed is less than $50,]~~ $50 or 10 percent of

the amount owed, whichever is greater, plus interest on the amount of the

tax at the rate of 1 percent per month or fraction thereof, from the date the

tax became finally due until the date of payment.

2. A tax return or statement is considered delinquent when it has not

been received by the department by the date the tax return or statement is

due, as prescribed by the provisions of this chapter.

Sec. 100.7. NRS 366.540 is hereby amended to read as follows:

366.540 1. The tax provided for by this chapter must be paid by

special fuel suppliers, special fuel dealers and special fuel users. A special

fuel supplier or special fuel dealer shall pay to the department the excise

tax he collects from purchasers of special fuel with the monthly return filed

pursuant to NRS 366.383 or 366.386, respectively. The tax paid by a

special fuel user must be computed by multiplying the tax rate per gallon

provided in this chapter by the amount that the number of gallons of special

fuel consumed by the special fuel user in the propulsion of motor vehicles

on the highways of this state exceeds the number of gallons of special fuel

purchases by him.

2. Except as otherwise provided in subsection 3, in computing the

amount of tax on special fuel a special fuel supplier owes to the

department, the special fuel supplier may deduct from the amount due

pursuant to subsection 1 any amount which is due but has not been paid by

a purchaser who is authorized by the department to defer payment of the

tax pursuant to NRS 366.397. If such a deduction is claimed, the claim

must identify the purchaser and the amount of taxes that he failed to pay.

3. A special fuel supplier shall not deduct from the amount he owes the

department pursuant to subsection 1 any amount which has not been paid

by a person whose permit to defer the payment of the tax has been revoked

pursuant to subsection 4 of NRS 366.397 if, before the special fuel was

purchased, the special fuel supplier had been notified by the department

pursuant to subsection 5 of NRS 366.397 that it had revoked the

purchaser's permit.

4. Each special fuel supplier and special fuel dealer shall hold the

amount of all taxes collected pursuant to this chapter in a separate

account in trust for the state.

Sec. 101. Chapter 373 of NRS is hereby amended by adding thereto a

new section to read as follows:

"Department" means the department of motor vehicles and public

safety. Sec. 102. NRS 373.020 is hereby amended to read as follows:

373.020 As used in this chapter, unless the context otherwise requires,

the words and terms defined in NRS 373.0205 to 373.029, inclusive, and

section 101 of this act, have the meanings ascribed to them in those

sections.

Sec. 103. NRS 373.070 is hereby amended to read as follows:

373.070 Any motor vehicle fuel tax ordinance enacted under this

chapter must include provisions in substance as follows:

1. A provision imposing the additional excise tax and stating the

amount of the tax per gallon of fuel.

2. Provisions identical to those contained in chapter 365 of NRS on the

date of enactment of the ordinance, insofar as applicable, except that the

name of the county as taxing agency must be substituted for that of the state

and that an additional [~~dealer's]~~ supplier's license is not required.

3. A provision that all amendments to chapter 365 of NRS subsequent

to the date of enactment of the ordinance, not inconsistent with this chapter,

automatically become a part of the motor vehicle fuel tax ordinance of the

county.

4. A provision that the county shall contract prior to the effective date

of the county motor vehicle fuel tax ordinance with the department to

perform all functions incident to the administration or operation of the

motor vehicle fuel tax ordinance of the county.

Sec. 104. NRS 373.090 is hereby amended to read as follows:

373.090 1. For the purpose of the tax imposed by an ordinance

enacted pursuant to this chapter, motor vehicle fuel is sold at the place

where it is [~~delivered into a vehicle not belonging to the seller or into a~~

~~stationary tank on the premises of the buyer.]~~ distributed from a terminal.

2. As used in this section, "terminal" has the meaning ascribed to it

in section 56 of this act.

Sec. 105. NRS 482.187 is hereby amended to read as follows:

482.187 The department may:

1. Enter into written agreements providing for the periodic payment of

delinquent taxes or fees imposed pursuant to this chapter.

2. Adopt regulations:

(a) Setting forth the permissible terms of [~~such]~~ those agreements; and

(b) Providing for the cancellation of such an agreement if the person

with whom the department has contracted becomes delinquent in his

payments pursuant to the agreement or in his payment of other taxes or fees

owed to the department pursuant to the provisions of chapter 365, 366, 371

, 373 or 482 of NRS.

Sec. 106. NRS 590.120 is hereby amended to read as follows:

590.120 1. Every person, or any officer, agent or employee thereof,

shipping or transporting any [~~gasoline]~~ motor vehicle fuel or lubricating oil

into this state for sale or consignment, or with intent to sell or consign the

same, shall pay to the department of [~~taxation]~~ motor vehicles and public

safety an inspection fee of 0.055 of a cent per gallon for every gallon of[~~gasoline]~~ motor vehicle fuel or lubricating oil so shipped or transported

into the state, or that is held for sale within this state. [~~Nothing in this~~

~~section requires]~~ This section does not require the payment of an

inspection fee on any shipment or consignment of [~~gasoline]~~ motor vehicle

fuel or lubricating oil when [~~such]~~ the inspection fee has [~~already]~~ been

paid.

2. Of each inspection fee paid to the department of [~~taxation]~~ motor

vehicles and public safety pursuant to this section, 0.005 of a cent per

gallon must be transferred quarterly to an account in the state general fund

for the state board of agriculture. The state board of agriculture shall use all

money transferred pursuant to this subsection to pay the expenses incurred

in enforcing the provisions of NRS 590.070.

3. On or before the [~~25th]~~ last day of each calendar month, every

person, or any officer, agent or employee thereof, required to pay the

inspection fee [~~mentioned]~~ described in subsection 1 shall send to the

department of [~~taxation]~~ motor vehicles and public safety a correct report

of the [~~gasoline]~~ motor vehicle fuel or oil volumes for the preceding

month. The report must include a list of distributors or retailers distributing

or selling the products and must be accompanied by the required fees.

4. Failure to send the report and remittance as specified in subsections

1 and 3 is a violation of NRS 590.010 to 590.150, inclusive, and is

punishable as provided in NRS 590.150.

5. The provisions of this section must be carried out in the manner

prescribed in chapter 365 of NRS and sections 2 to 45, inclusive, of this

act.

Sec. 107. NRS 590.130 is hereby amended to read as follows:

590.130 Except as otherwise provided in subsection 2 of NRS

590.120, all inspection fees received by the department of [~~taxation]~~ motor

vehicles and public safety must be deposited with the state treasurer for

credit to the state general fund, and all expenses incurred in carrying out the

provisions of NRS 590.010 to 590.150, inclusive, must be paid out of funds

provided by direct legislative appropriation.

Sec. 108. NRS 590.720 is hereby amended to read as follows:

590.720 "Department" means the department of [~~taxation.]~~ motor

vehicles and public safety.

Sec. 109. NRS 590.840 is hereby amended to read as follows:

590.840 1. Except as otherwise provided in subsection [~~3,]~~ 2, the

department shall collect for deposit in the fund a fee of 0.75 cent for each

gallon of motor vehicle fuel, diesel fuel of grade number 1, diesel fuel of

grade number 2 and heating oil imported into this state in one of those

forms or refined in this state. The fee imposed by this section is in addition

to the taxes imposed by chapters 365 and 366 of NRS.

2. [~~The department of motor vehicles and public safety shall cooperate~~

with the department of taxation in ascertaining the amount of diesel fuel so

imported and the identity of each person liable for payment of the fee upon

~~it. 3.]~~ The fee imposed by subsection 1 does not apply to motor vehicle

fuel, diesel fuel of grade number 1, diesel fuel of grade number 2 or heating

oil that is:

(a) Imported or refined by the United States, its unincorporated agencies

and instrumentalities, or any incorporated agency or instrumentality of the

United States wholly owned by the United States or by a corporation

wholly owned by the United States;

(b) Exported from [~~the]~~ this state;

engines;

(d) Being transported through [~~the]~~ this state in interstate commerce; or

(e) Used as fuel for jet or turbine-powered aircraft.

[~~4.]~~ 3. The fee is payable on or before the [~~25th]~~ last day of each

calendar month for those products subject to the fee that are handled during

the preceding calendar month. The department shall prescribe by regulation

the manner of payment of the fee and for this purpose may reasonably

classify the persons liable for payment. The department may, in collecting

the fee, employ any administrative power conferred upon it by chapter 365

of NRS [.

~~5.]~~ or sections 2 to 45, inclusive, of this act.

4. The expenses incurred by the department in performing its duties

under NRS 590.700 to 590.920, inclusive, are a charge against the fund.

Sec. 110. NRS 366.394, 366.3955, 366.396, 366.405, 366.510,

366.560, 366.570, 366.580, 366.590, 366.600, 366.610, 366.620, 366.630

and 366.640 are hereby repealed.

Sec. 111. The regulations adopted by the department of taxation

pursuant to NRS 365.110 are void. The legislative counsel shall remove

those regulations from the Nevada Administrative Code as soon as

practicable after January 1, 2002.

Sec. 112. The amendatory provisions of this act do not apply to

offenses that were committed before January 1, 2002.

Sec. 113. 1. This section and section 100.7 of this act become

effective upon passage and approval.

2. The remaining sections of this act become effective on January 1,

2000, for the purposes of the adoption of regulations by the department of

motor vehicles and public safety and the execution of any other

administrative matters necessary to allow the department to begin

collecting the taxes on January 1, 2002, and for all other purposes on

January 1, 2002.

Sec. 114. In preparing the 1999 and 2001 reprints of the Nevada

Revised Statutes with respect to any section which is not amended by this

act or is further amended by another act, and in the Nevada Administrative

Code, the legislative counsel shall appropriately correct:

1. Any references concerning the collection of the taxes imposed by

chapters 365 and 366 of NRS from references to the department of taxation

to references to the department of motor vehicles and public safety.

2. Any references concerning an exporter or supplier of motor vehicle

fuel in chapter 365 of NRS.