Assembly Bill No. 669–Committee on Taxation

March 22, 1999

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Referred to Committee on Taxation

 

SUMMARY—Revises provisions relating to casino entertainment tax. (BDR 41-1655)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to gaming; revising the provisions governing the imposition of the casino entertainment tax on certain service charges; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 463.401 is hereby amended to read as follows:

1-2 463.401 1. In addition to any other license fees and taxes imposed by

1-3 this chapter, a casino entertainment tax equivalent to 10 percent of all

1-4 amounts paid for admission, food, refreshments and merchandise is hereby

1-5 levied, except as provided in subsection 2, upon each licensed gaming

1-6 establishment in this state where music and dancing privileges or any other

1-7 entertainment is provided to the patrons in a cabaret, nightclub, cocktail

1-8 lounge or casino showroom in connection with the serving or selling of

1-9 food or refreshments or the selling of any merchandise. Amounts paid for

1-10 gratuities directly or indirectly remitted to employees of the licensee or for

1-11 service charges [collected and] retained by persons other than the licensee

1-12 are not taxable pursuant to this section.

1-13 2. A licensed gaming establishment is not subject to tax pursuant to

1-14 this section if:

1-15 (a) The establishment is licensed for less than 51 slot machines, less

1-16 than six games, or any combination of slot machines and games within

1-17 those respective limits;

1-18 (b) The entertainment is presented in a facility that would not have been

1-19 subject to taxation pursuant to 26 U.S.C. § 4231(6) as that provision

1-20 existed in 1965;

2-1 (c) The entertainment is presented in a facility that would have been

2-2 subject to taxation pursuant to 26 U.S.C. § 4231(1), (2), (3), (4) or (5) as

2-3 those provisions existed in 1965; or

2-4 (d) In other cases, if:

2-5 (1) No distilled spirits, wine or beer is served or permitted to be

2-6 consumed;

2-7 (2) Only light refreshments are served;

2-8 (3) Where space is provided for dancing, no charge is made for

2-9 dancing; and

2-10 (4) Where music is provided or permitted, the music is provided

2-11 without any charge to the owner, lessee or operator of the establishment or

2-12 to any concessionaire.

2-13 3. The tax imposed by this section does not apply to merchandise sold

2-14 outside the facility in which the entertainment is presented, unless the

2-15 purchase of the merchandise entitles the purchaser to admission to the

2-16 entertainment.

2-17 4. The tax imposed by this section must be paid by the licensee of the

2-18 establishment.

2-19 Sec. 2. This act becomes effective upon passage and approval.

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