Amendment No. 317

Senate Amendment to Senate Bill No. 349 (BDR 32-1073)

Proposed by: Committee on Taxation

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 3, page 1, line 8, after "tank" by inserting:

"that contains the special fuel".

Amend the bill as a whole by renumbering sections 7 through 10 as sections 11 through 14 and adding new sections designated sections 7 through 10, following sec. 6, to read as follows:

"Sec. 7. NRS 366.197 is hereby amended to read as follows:

366.197 For the purpose of taxing the sale or use of compressed natural gas , [or liquefied petroleum gas,] 125 cubic feet of natural gas [or liquefied petroleum gas] shall be deemed to equal 1 gallon of special fuel.

Sec. 8. NRS 366.207 is hereby amended to read as follows:

366.207 1. Except as otherwise provided in subsections 2 and 3, each special fuel supplier who sells or distributes special fuel to which dye has not been added shall, at the time the special fuel is purchased, collect the tax imposed pursuant to NRS 366.190.

2. A special fuel supplier may sell special fuel to a purchaser without collecting the tax imposed pursuant to NRS 366.190 if the purchaser of the special fuel:

(a) Has been issued a permit by the department pursuant to NRS 366.397; and

(b) Elects to defer payment of the tax.

3. A special fuel supplier shall not collect the tax imposed pursuant to NRS 366.190 if the purchaser of the special fuel is:

(a) A special fuel supplier;

(b) A special fuel exporter; or

(c) A special fuel dealer.

4. A special fuel supplier who sells special fuel to any other special fuel supplier or special fuel dealer 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 special fuel supplier pursuant to this subsection; and

(b) The period for which those records must be kept by the special fuel supplier.

5. If, within a period of 6 months, a person purchases not less than 200 gallons of special fuel in this state which is used for a purpose that is exempt from the payment of the tax on special fuel pursuant to NRS 366.200, he may apply to the department for a refund in the manner prescribed in subsection 6 of NRS 366.650.

6. Any person who resells, for a taxable purpose, special fuel that was exempt from the tax imposed by this chapter and to which dye has not been added shall collect the tax and remit it to the department.

Sec. 9. NRS 366.390 is hereby amended to read as follows:

366.390 1. Except as otherwise provided in subsection [3,] 2, the department shall allow each special fuel supplier [or special fuel dealer] to retain an amount equal to 2 percent of the amount of the tax collected by the special fuel supplier [or special fuel dealer] as a fee for making the collection.

2. [If the special fuel for which the tax was collected by the special fuel supplier is sold to a purchaser who has been issued a permit pursuant to NRS 366.397, the special fuel supplier:

(a) Is entitled to retain one-half of the fee; and

(b) Shall distribute one-half of the fee to the purchaser. If the fuel is resold by that purchaser to another purchaser who has been issued a permit pursuant to NRS 366.397, the purchaser who sells the special fuel to the subsequent purchaser shall distribute to that subsequent purchaser one-half of the fee he received from the special fuel supplier.

3.] A special fuel supplier who fails to submit a tax return pursuant to NRS 366.383 or a special fuel dealer who fails to submit a tax return pursuant to NRS 366.386 is not entitled to the fee authorized pursuant to subsection 1 for any month for which a tax return is not filed.

Sec. 10. NRS 366.550 is hereby amended to read as follows:

366.550 1. An applicant for or holder of a special fuel supplier’s or special fuel dealer’s license shall provide a bond executed by him as principal, and by a corporation qualified pursuant to the laws of this state as surety, payable to the State of Nevada, and conditioned upon the faithful performance of all of the requirements of this chapter and upon the punctual payment of all excise taxes, penalties and interest due to the State of Nevada. The total amount of the bond or bonds of any holder of a special fuel supplier’s or special fuel dealer’s license must be fixed by the department at not less than three times the estimated maximum monthly tax, determined in such a manner as the department deems proper, but the amount must not be less than $1,000 [.] for a special fuel supplier and must not be less than $100 for a special fuel dealer. If the department determines that a person is habitually delinquent in the payment of amounts due to the department, 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.

2. No recovery on any bond, nor the execution of any new bond, nor the suspension or revocation of any special fuel supplier’s or special fuel dealer’s license affects the validity of any bond.

3. In lieu of a bond or bonds, an applicant for or holder of a special fuel supplier’s or special fuel dealer’s license may deposit with the state treasurer, under such terms 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.

4. If the holder of a special fuel supplier’s or special fuel dealer’s license is required to provide a bond of more than $5,000, the department may reduce the requirements for the bond to not less than $5,000 upon the supplier’s or dealer’s faithful performance of all the requirements of this chapter and the punctual payment of all taxes due the State of Nevada for the 3 preceding calendar years.

5. The department shall immediately reinstate the original requirements for a bond for a holder of a special fuel supplier’s or special fuel dealer’s license upon his:

(a) Lack of faithful performance of the requirements of this chapter; or

(b) Failure to pay punctually all taxes, fees, penalties and interest due the State of Nevada.".

Amend the title of the bill, fourth line, after "circumstances;" by inserting:

"eliminating the conversion factor for liquefied petroleum gas used in the calculation of the tax on special fuel; requiring a person who resells special fuel that is exempt from the tax on special fuel to collect and remit the tax to the department of motor vehicles and public safety under certain circumstances; authorizing a special fuel supplier to retain a portion of the tax collected as a fee in certain circumstances; reducing the value of the bond that a special fuel dealer is required to provide in certain circumstances;".