Senate Bill No. 362–Senator O’Connell

March 10, 1999

____________

Referred to Committee on Taxation

 

SUMMARY—Makes various changes to provisions governing collection and payment of taxes. (BDR 32-219)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

~

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 taxation; prohibiting, under certain circumstances, the imposition of penalties and interest on delinquent taxes for the period during which an audit of a taxpayer is extended; revising the manner in which penalties and interest are calculated if a taxpayer has made overpayments and underpayments; providing for the appeal of any decision of the executive director or other officer of the department of taxation to the Nevada tax commission; requiring the department to adopt certain regulations; expanding the Taxpayers’ Bill of Rights; increasing the amount of taxes, penalties and interest that may be waived if a taxpayer has relied to his detriment on the advice of the department; authorizing certain actions relating to the payment of taxes to be brought in Clark County; 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. Chapter 360 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2, 3 and 3.5 of this act.

1-3 Sec. 2. 1. If an audit is conducted pursuant to the provisions of

1-4 this Title, the date on which the audit will be completed must be included

1-5 in the notice to the taxpayer that the audit will be conducted.

1-6 2. The date on which the audit will be completed may be extended by

1-7 the department if the department gives prior written notice of the

1-8 extension to the taxpayer. The notice must include an explanation of the

1-9 reason or reasons that the extension is required.

1-10 3. If, after the audit, the department determines that delinquent taxes

1-11 are due, interest and penalties may not be imposed for the period of the

2-1 extension if the taxpayer did not request the extension or was not

2-2 otherwise the cause of the extension.

2-3 Sec. 3. If an officer, employee or agent of the department

2-4 determines that a taxpayer is entitled to an exemption or has been taxed

2-5 or assessed more than is required by law, he shall give written notice of

2-6 that determination to the taxpayer. The notice must:

2-7 1. Be given within 30 days after the officer, employee or agent makes

2-8 his determination or, if the determination is made as a result of an audit,

2-9 within 30 days after the completion of the audit; and

2-10 2. If appropriate, include:

2-11 (a) An explanation that an overpayment may be credited against any

2-12 amount due from the taxpayer; or

2-13 (b) Instructions indicating the manner in which the taxpayer may

2-14 petition for a refund of any overpayment.

2-15 Sec. 3.5. The Nevada tax commission shall adopt regulations to

2-16 carry out the provisions of sections 7 and 10 of this act.

2-17 Sec. 4. NRS 360.245 is hereby amended to read as follows:

2-18 360.245 1. Except as otherwise provided in this Title:

2-19 (a) All decisions of the executive director or other officer of the

2-20 department made pursuant to [subsection 2 of NRS 360.130] this Title are

2-21 final unless appealed to the Nevada tax commission . [as provided by law.]

2-22 (b) Any natural person, partnership, corporation, association or other

2-23 business or legal entity who is aggrieved by such a decision may [so]

2-24 appeal the decision by filing a notice of appeal with the department within

2-25 30 days after service of the decision upon that person or business or legal

2-26 entity.

2-27 2. Service of the decision must be made personally or by certified mail.

2-28 If service is made by certified mail:

2-29 (a) The decision must be enclosed in an envelope which is addressed to

2-30 the taxpayer at his address as it appears in the records of the department.

2-31 (b) It is deemed to be complete at the time the appropriately addressed

2-32 envelope containing the decision is deposited with the United States Postal

2-33 Service.

2-34 3. The Nevada tax commission, as head of the department, may review

2-35 all [other] decisions made by the executive director [and] that are not

2-36 otherwise appealed to the commission pursuant to this section.

2-37 4. The Nevada tax commission may reverse, affirm or modify [them.

2-38 4.] any decision of the department that is:

2-39 (a) Appealed to the commission by a taxpayer pursuant to this section;

2-40 or

2-41 (b) Reviewed by the commission pursuant to this section.

2-42 5. A decision of the Nevada tax commission is a final decision for the

2-43 purposes of judicial review. The executive director or any other employee

3-1 or representative of the department shall not seek judicial review of such a

3-2 decision.

3-3 [5.] 6. The Nevada tax commission shall provide by regulation for:

3-4 (a) Notice to be given to each county of any decision upon an appeal to

3-5 the commission that the commission determines is likely to affect the

3-6 revenue of the county or other local government. The regulations must

3-7 specify the form and contents of the notice and requirements for the number

3-8 of days before a meeting of the commission that the notice must be

3-9 transmitted . [to the county or counties.] If the parties to the appeal enter

3-10 into a stipulation as to the issues that will be heard on appeal, the

3-11 commission shall transmit a copy of the notice to the district attorney of

3-12 each county which the commission determines is likely to be affected by

3-13 the decision. Upon receipt of such a notice , the [county] district attorney

3-14 shall transmit a copy of the notice to each local government within the

3-15 county which [it] the commission determines is likely to be affected by the

3-16 decision. If there is no such stipulation, the commission shall transmit a

3-17 copy of the notice, accompanied by the names of the parties and the

3-18 amount on appeal, if any, to the governing bodies of the counties and

3-19 other local governments which the commission determines are likely to

3-20 be affected by the decision.

3-21 (b) The manner in which a county or other local government which is

3-22 not a party to such an appeal may become a party, and the procedure for its

3-23 participation in the appeal.

3-24 [6.] 7. A county or other local government which is a party and is

3-25 aggrieved by the decision of the Nevada tax commission is entitled to seek

3-26 judicial review of the decision.

3-27 [7.] 8. Upon application by a taxpayer, the Nevada tax commission

3-28 shall review the denial of relief pursuant to NRS 361.4835 and may grant,

3-29 deny or modify the relief sought.

3-30 Sec. 5. NRS 360.291 is hereby amended to read as follows:

3-31 360.291 1. The legislature hereby declares that each taxpayer has the

3-32 right:

3-33 [1.] (a) To be treated by officers and employees of the department with

3-34 courtesy, fairness, uniformity, consistency and common sense.

3-35 [2.] (b) To a prompt response from the department to each

3-36 communication from the taxpayer.

3-37 [3.] (c) To provide the minimum documentation and other information

3-38 as may reasonably be required by the department to carry out its duties.

3-39 [4.] (d) To written explanations of common errors, oversights and

3-40 violations that taxpayers experience and instructions on how to avoid such

3-41 problems.

3-42 [5.] (e) To be [informed] notified, in writing, by the department

3-43 whenever its officer, employee or agent determines that the taxpayer is

4-1 entitled to an exemption or has been taxed or assessed more than is

4-2 required by law.

4-3 [6.] (f) To written instructions indicating how the taxpayer may petition

4-4 for:

4-5 [(a)] (1) An adjustment of an assessment; [or

4-6 (b)] (2) A refund or credit for overpayment of taxes, interest or

4-7 penalties [.

4-8 7.] ; or

4-9 (3) A reduction in or the release of a bond or other form of security

4-10 required to be furnished pursuant to the provisions of this Title that are

4-11 administered by the department.

4-12 (g) To recover an overpayment of taxes promptly upon the final

4-13 determination of such an overpayment.

4-14 [8.] (h) To obtain specific advice from the department concerning taxes

4-15 imposed by the state.

4-16 [9.] (i) In any meeting with the department, including an audit,

4-17 conference, interview or hearing:

4-18 [(a)] (1) To an explanation by an officer , agent or employee of the

4-19 department that describes the procedures to be followed and the taxpayer’s

4-20 rights thereunder;

4-21 [(b)] (2) To be represented by himself or anyone who is otherwise

4-22 authorized by law to represent him before the department;

4-23 [(c)] (3) To make an audio recording using the taxpayer’s own

4-24 equipment and at the taxpayer’s own expense; and

4-25 [(d)] (4) To receive a copy of any document or audio recording made

4-26 by or in the possession of the department relating to the determination or

4-27 collection of any tax for which the taxpayer is assessed, upon payment of

4-28 the actual cost to the department of making the copy.

4-29 [10.] (j) To a full explanation of the department’s authority to assess a

4-30 tax or to collect delinquent taxes, including the procedures and notices for

4-31 review and appeal that are required for the protection of the taxpayer. An

4-32 explanation which meets the requirements of this section must also be

4-33 included with each notice to a taxpayer that an audit will be conducted by

4-34 the department.

4-35 [11.] (k) To the immediate release of any lien which the department has

4-36 placed on real or personal property for the nonpayment of any tax when:

4-37 [(a)] (1) The tax is paid;

4-38 [(b)] (2) The period of limitation for collecting the tax expires;

4-39 [(c)] (3) The lien is the result of an error by the department;

4-40 [(d)] (4) The department determines that the taxes, interest and

4-41 penalties are secured sufficiently by a lien on other property;

4-42 [(e)] (5) The release or subordination of the lien will not jeopardize the

4-43 collection of the taxes, interest and penalties;

5-1 [(f)] (6) The release of the lien will facilitate the collection of the taxes,

5-2 interest and penalties; or

5-3 [(g)] (7) The department determines that the lien is creating an

5-4 economic hardship.

5-5 [12.] (l) To the release or reduction of a bond or other form of security

5-6 required to be furnished pursuant to the provisions of this Title by the

5-7 department in accordance with applicable statutes and regulations.

5-8 [13.] (m) To be free from investigation and surveillance by an officer,

5-9 agent or employee of the department for any purpose that is not directly

5-10 related to the administration of the provisions of this Title [.] that are

5-11 administered by the department.

5-12 [14.] (n) To be free from harassment and intimidation by an officer,

5-13 agent or employee of the department for any reason.

5-14 (o) To have statutes imposing taxes and any regulations adopted

5-15 pursuant thereto construed in favor of the taxpayer if those statutes or

5-16 regulations are of doubtful validity or effect, unless there is a specific

5-17 statutory provision that is applicable.

5-18 2. The provisions of this Title governing the administration and

5-19 collection of taxes by the department must not be construed in such a

5-20 manner as to interfere or conflict with the provisions of this section or

5-21 any applicable regulations.

5-22 3. The provisions of this section apply to any tax administered and

5-23 collected pursuant to the provisions of this Title or any applicable

5-24 regulations by the department.

5-25 Sec. 6. NRS 360.2935 is hereby amended to read as follows:

5-26 360.2935 A taxpayer is entitled to receive on any overpayment of taxes

5-27 , after the offset required by NRS 360.320 has been made, a refund

5-28 together with interest at a rate determined pursuant to NRS 17.130. No

5-29 interest is allowed on a refund of any penalties or interest paid by a

5-30 taxpayer.

5-31 Sec. 7. NRS 360.294 is hereby amended to read as follows:

5-32 360.294 [Upon]

5-33 1. Except as otherwise provided in subsection 2, upon proof that a

5-34 taxpayer has relied to his detriment on written advice provided to him by an

5-35 officer, agent or employee of the department [:

5-36 1. The executive director or his designee may waive taxes, penalties

5-37 and interest owed by the taxpayer in an amount not to exceed $5,000; and

5-38 2. The Nevada tax commission may waive any such taxes, penalties

5-39 and interest in an amount greater than $5,000.] or on an opinion of the

5-40 attorney general:

5-41 (a) The department may waive any tax, penalty and interest owed by

5-42 the taxpayer if the taxpayer meets the criteria adopted by regulation by

5-43 the Nevada tax commission pursuant to section 3.5 of this act; and

6-1 (b) If a waiver is granted pursuant to paragraph (a), the department

6-2 shall prepare and maintain on file a statement which contains:

6-3 (1) The reason for the waiver;

6-4 (2) The amount of the tax, penalty and interest owed by the

6-5 taxpayer;

6-6 (3) The amount of the tax, penalty and interest waived by the

6-7 department; and

6-8 (4) The facts and circumstances which led to the waiver.

6-9 2. Upon proof that a taxpayer has in good faith collected or remitted

6-10 taxes imposed pursuant to the provisions of this Title that are

6-11 administered by the department, in reliance upon written advice provided

6-12 by an officer, agent or employee of the department, an opinion of the

6-13 attorney general or the Nevada tax commission, or the written results of

6-14 an audit of his records conducted by the department, the taxpayer may

6-15 not be required to pay delinquent taxes, penalties or interest if the

6-16 department determines after the completion of a subsequent audit that

6-17 the taxes he collected or remitted were deficient.

6-18 Sec. 8. NRS 360.320 is hereby amended to read as follows:

6-19 360.320 [In]

6-20 1. Except as otherwise provided in this Title, in making a

6-21 determination of the amount required to be paid, the department [may]

6-22 shall offset overpayments for [a period or periods, together with interest on

6-23 the overpayments,] a reporting period of an audit period against

6-24 underpayments for [another period or periods, against penalties, and against

6-25 the interest on underpayments.] any other reporting period within the

6-26 audit period.

6-27 2. If it is determined that there is a net deficiency, any penalty

6-28 imposed must be calculated based on the amount of the net deficiency.

6-29 3. If it is determined that:

6-30 (a) There is a net deficiency for a reporting period after offsetting any

6-31 overpayment from any previous reporting period, any interest imposed on

6-32 the net deficiency must be calculated before determining whether there is

6-33 an overpayment or net deficiency for the next reporting period within the

6-34 audit period.

6-35 (b) There is a net overpayment for a reporting period after offsetting

6-36 any net deficiency from any previous reporting period, any interest to

6-37 which the taxpayer is entitled must be calculated before determining

6-38 whether there is an overpayment or net deficiency for the next reporting

6-39 period within the audit period.

6-40 4. The provisions of this section do not apply if the taxpayer has

6-41 submitted a report that shows taxes due and has not remitted the taxes

6-42 due in a timely manner.

7-1 5. As used in this section, "reporting period" includes, without

7-2 limitation, a calendar month, a calendar quarter, a calendar year and

7-3 any other period for reporting.

7-4 Sec. 9. NRS 360.395 is hereby amended to read as follows:

7-5 360.395 1. Before a person may seek judicial review pursuant to

7-6 NRS 233B.130 from a final order of the [department] Nevada tax

7-7 commission upon a petition for redetermination, he must:

7-8 (a) Pay the amount of the determination; or

7-9 (b) Enter into a written agreement with the department establishing a

7-10 later date by which he must pay the amount of the determination.

7-11 2. If a court determines that the amount of the final order should be

7-12 reduced or that the person does not owe any taxes, the department shall

7-13 credit or refund any amount paid by the person that exceeds the amount

7-14 owed [.] , with interest determined in accordance with NRS 360.2935.

7-15 Sec. 10. NRS 360.417 is hereby amended to read as follows:

7-16 360.417 [Unless] Except as otherwise provided in NRS 360.320 and

7-17 section 2 of this act and unless a different penalty or rate of interest is

7-18 specifically provided by statute, any person who fails to pay any tax

7-19 provided for in chapter 362, 364A, 365, 369, 370, 372, 373, 374, 377,

7-20 377A, 444A or 585 of NRS, or fee provided for in NRS 482.313 or

7-21 590.700 to 590.920, inclusive, to the state or a county within the time

7-22 required, shall pay a penalty of not more than 10 percent of the amount of

7-23 the tax or fee which is owed, as determined by the department, in addition

7-24 to the tax or fee, plus interest at the rate of 1 percent per month, or fraction

7-25 of a month, from the last day of the month following the period for which

7-26 the amount or any portion of the amount should have been reported until

7-27 the date of payment. The amount of any penalty imposed must be based

7-28 on a graduated schedule adopted by the Nevada tax commission which

7-29 takes into consideration the length of time the tax or fee remained

7-30 unpaid.

7-31 Sec. 11. NRS 360.4193 is hereby amended to read as follows:

7-32 360.4193 1. If a person is delinquent in the payment of any tax or fee

7-33 administered by the department or has not paid the amount of a deficiency

7-34 determination, the department may bring an action in a court of this state, a

7-35 court of any other state or a court of the United States to collect the

7-36 delinquent or deficient amount, penalties and interest. The action [must] :

7-37 (a) May not be brought if the decision that the payment is delinquent

7-38 or that there is a deficiency determination is on appeal to the Nevada tax

7-39 commission pursuant to NRS 360.245.

7-40 (b) Must be brought not later than 3 years after the payment became

7-41 delinquent or the determination became final or within 5 years after the last

7-42 recording of an abstract of judgment or of a certificate constituting a lien

7-43 for tax owed.

8-1 2. The attorney general shall prosecute the action. The provisions of

8-2 NRS and the Nevada Rules of Civil Procedure and Nevada Rules of

8-3 Appellate Procedure relating to service of summons, pleadings, proofs,

8-4 trials and appeals are applicable to the proceedings. In the action, a writ of

8-5 attachment may issue. A bond or affidavit is not required before an

8-6 attachment may be issued.

8-7 3. In the action, a certificate by the department showing the

8-8 delinquency is prima facie evidence of:

8-9 (a) The determination of the tax or fee or the amount of the tax or fee;

8-10 (b) The delinquency of the amounts; and

8-11 (c) The compliance by the department with all of the procedures

8-12 required by law related to the computation and determination of the

8-13 amounts.

8-14 Sec. 12. NRS 361.0687 is hereby amended to read as follows:

8-15 361.0687 1. A person who intends to locate or expand a business in

8-16 this state may apply to the commission on economic development for a

8-17 partial abatement from the taxes imposed by this chapter on the personal

8-18 property of the new or expanded business.

8-19 2. The commission on economic development may approve an

8-20 application for a partial abatement if the commission makes the following

8-21 determinations:

8-22 (a) The goals of the business are consistent with the goals of the

8-23 commission and the community concerning industrial development and

8-24 diversification.

8-25 (b) The abatement is a significant factor in the decision of the applicant

8-26 to locate or expand a business in this state or the appropriate affected local

8-27 government determines that the abatement will be beneficial to the

8-28 economic development of the community.

8-29 (c) The average hourly wage which will be paid by the new or expanded

8-30 business to its employees in this state is at least 125 percent of the average

8-31 statewide industrial hourly wage as established by the employment security

8-32 division of the department of employment, training and rehabilitation on

8-33 July 1 of each fiscal year.

8-34 (d) The business will provide a health insurance plan for all employees

8-35 that includes an option for health insurance coverage for dependents of the

8-36 employees.

8-37 (e) The cost to the business for the benefits the business provides to its

8-38 employees in this state will meet the minimum requirements for benefits

8-39 established by the commission pursuant to subsection [8.] 9.

8-40 (f) A capital investment for personal property will be made to locate or

8-41 expand the business in Nevada which is at least:

8-42 (1) If the personal property directly related to the establishment of the

8-43 business in this state is primarily located in a county whose population:

9-1 (I) Is 100,000 or more, $50,000,000.

9-2 (II) Is less than 100,000, $20,000,000.

9-3 (2) If the personal property directly related to the expansion of the

9-4 business is primarily located in a county whose population:

9-5 (I) Is 100,000 or more, $10,000,000.

9-6 (II) Is less than 100,000, $4,000,000.

9-7 (g) The business will create at least the following number of new, full-

9-8 time and permanent jobs in the State of Nevada by the fourth quarter that it

9-9 is in operation:

9-10 (1) If a new business will be primarily located in a county whose

9-11 population:

9-12 (I) Is 100,000 or more, 100 jobs.

9-13 (II) Is less than 100,000, 35 jobs.

9-14 (2) If an expanded business will be primarily located in a county

9-15 whose population:

9-16 (I) Is 100,000 or more, and the business has at least 100 employees

9-17 in this state, 20 jobs. An expanded business primarily located in such a

9-18 county that has less than 100 employees is not eligible for a partial

9-19 abatement pursuant to this section.

9-20 (II) Is less than 100,000, and the business has at least 35 employees

9-21 in this state, 10 jobs. An expanded business primarily located in such a

9-22 county that has less than 35 employees is not eligible for a partial

9-23 abatement pursuant to this section.

9-24 (h) For the expansion of a business primarily located in a county whose

9-25 population:

9-26 (1) Is 100,000 or more, the book value of the assets of the business in

9-27 this state is at least $20,000,000.

9-28 (2) Is less than 100,000, the book value of the assets of the business

9-29 in this state is at least $5,000,000.

9-30 (i) The business is registered pursuant to the laws of this state or the

9-31 applicant commits to obtain a valid business license and all other permits

9-32 required by the county, city or town in which the business operates.

9-33 (j) The proposed abatement has been approved by the governing body of

9-34 the appropriate affected local government as determined pursuant to the

9-35 regulations adopted pursuant to subsection [8.] 9. In determining whether to

9-36 approve a proposed abatement, the governing body shall consider whether

9-37 the taxes to be paid by the business are sufficient to pay for any investment

9-38 required to be made by the local government for services associated with

9-39 the relocation or expansion of the business, including, without limitation,

9-40 costs related to the construction and maintenance of roads, sewer and water

9-41 services, fire and police protection , and the construction and maintenance

9-42 of schools.

10-1 (k) The applicant has executed an agreement with the commission which

10-2 states that the business will continue in operation in Nevada for 10 or more

10-3 years after the date on which a certificate of eligibility for the abatement is

10-4 issued pursuant to subsection 5 and will continue to meet the eligibility

10-5 requirements contained in this subsection. The agreement must bind the

10-6 successors in interest of the business for the required period.

10-7 3. An applicant shall, upon the request of the executive director of the

10-8 commission on economic development, furnish him with copies of all

10-9 records necessary to verify that the applicant meets the requirements of

10-10 subsection 2.

10-11 4. The percentage of the abatement must be 50 percent of the taxes

10-12 payable each year.

10-13 5. If an application for a partial abatement is approved, the commission

10-14 on economic development shall immediately forward a certificate of

10-15 eligibility for the abatement to:

10-16 (a) The department; and

10-17 (b) The county assessor of each county in which personal property

10-18 directly related to the establishment or expansion of the business will be

10-19 located.

10-20 6. Upon receipt by the department of the certificate of eligibility, the

10-21 taxpayer is eligible for an abatement from the tax imposed by this chapter

10-22 for 10 years:

10-23 (a) For the expansion of a business, on all personal property of the

10-24 business that is located in Nevada and directly related to the expansion of

10-25 the business in this state.

10-26 (b) For a new business, on all personal property of the business that is

10-27 located in Nevada and directly related to the establishment of the business

10-28 in this state.

10-29 7. If a business for which an abatement has been approved is not

10-30 maintained in this state in accordance with the agreement required in

10-31 subsection 2, for at least 10 years after the commission on economic

10-32 development approved the abatement, the person who applied for the

10-33 abatement shall repay to the county treasurer or treasurers who would have

10-34 received the taxes but for the abatement the total amount of all taxes that

10-35 were abated pursuant to this section. [The] Except as otherwise provided in

10-36 NRS 360.320 and section 2 of this act, the person who applied for the

10-37 abatement shall pay interest on the amount due at the rate of 10 percent per

10-38 annum for each month, or portion thereof, from the last day of the month

10-39 following the period for which the payment would have been made if the

10-40 abatement had not been granted until the date of the actual payment of the

10-41 tax.

11-1 8. A county treasurer:

11-2 (a) Shall deposit any money that he receives pursuant to subsection 7 in

11-3 one or more of the funds established by a local government of the county

11-4 pursuant to NRS 354.611, 354.6113 or 354.6115; and

11-5 (b) May use the money deposited pursuant to paragraph (a) only for the

11-6 purposes authorized by NRS 354.611, 354.6113 and 354.6115.

11-7 9. The commission on economic development shall adopt regulations

11-8 necessary to carry out the provisions of this section. The regulations must

11-9 include, but not be limited to:

11-10 (a) A method for determining the appropriate affected local government

11-11 to approve a proposed abatement and the procedure for obtaining such

11-12 approval; and

11-13 (b) Minimum requirements for benefits that a business applying for a

11-14 partial abatement must offer to its employees to be approved for the partial

11-15 abatement.

11-16 10. The department shall adopt regulations concerning how county

11-17 assessors shall administer partial abatements approved pursuant to this

11-18 section.

11-19 11. An applicant for an abatement who is aggrieved by a final decision

11-20 of the commission on economic development may petition for judicial

11-21 review in the manner provided in chapter 233B of NRS.

11-22 Sec. 13. NRS 361.435 is hereby amended to read as follows:

11-23 361.435 Any property owner owning property of like kind in more than

11-24 one county in the state and desiring to proceed with a suit under the

11-25 provisions of NRS 361.420 may, where the issues in the cases are

11-26 substantially the same in all or in some of the counties concerning the

11-27 assessment of taxes on such property, consolidate any of the suits in one

11-28 action and bring the action in any court of competent jurisdiction in Carson

11-29 City [, Nevada.] or Clark County.

11-30 Sec. 14. NRS 361.5648 is hereby amended to read as follows:

11-31 361.5648 1. Within 30 days after the first Monday in March of each

11-32 year, with respect to each property on which the tax is delinquent, the tax

11-33 receiver of the county shall mail notice of the delinquency by first-class

11-34 mail to:

11-35 (a) The owner or owners of the property;

11-36 (b) The person or persons listed as the taxpayer or taxpayers on the tax

11-37 rolls, at their last known addresses, if the names and addresses are known;

11-38 and

11-39 (c) Each holder of a recorded security interest if the holder has made a

11-40 request in writing to the tax receiver for the notice, which identifies the

11-41 secured property by the parcel number assigned to it in accordance with the

11-42 provisions of NRS 361.189.

12-1 2. The notice of delinquency must state:

12-2 (a) The name of the owner of the property, if known.

12-3 (b) The description of the property on which the taxes are a lien.

12-4 (c) The amount of the taxes due on the property and the penalties and

12-5 costs as provided by law.

12-6 (d) That if the amount is not paid by the taxpayer or his successor in

12-7 interest , the tax receiver will, at 5 p.m. on the first Monday in June of the

12-8 current year, issue to the county treasurer, as trustee for the state and

12-9 county, a certificate authorizing him to hold the property, subject to

12-10 redemption within 2 years after the date of the issuance of the certificate, by

12-11 payment of the taxes and accruing taxes, penalties and costs, together with

12-12 interest on the taxes at the rate of 10 percent per annum from the date due

12-13 until paid as provided by law , except as otherwise provided in NRS

12-14 360.320 and section 2 of this act, and that redemption may be made in

12-15 accordance with the provisions of chapter 21 of NRS in regard to real

12-16 property sold under execution.

12-17 3. Within 30 days after mailing the original notice of delinquency, the

12-18 tax receiver shall issue his personal affidavit to the board of county

12-19 commissioners affirming that due notice has been mailed with respect to

12-20 each parcel. The affidavit must recite the number of letters mailed, the

12-21 number of letters returned, and the number of letters finally determined to

12-22 be undeliverable. Until the period of redemption has expired, the tax

12-23 receiver shall maintain detailed records which contain such information as

12-24 the department may prescribe in support of his affidavit.

12-25 4. A second copy of the notice of delinquency must be sent by certified

12-26 mail, not less than 60 days before the expiration of the period of

12-27 redemption as stated in the notice.

12-28 5. The cost of each mailing must be charged to the delinquent taxpayer.

12-29 Sec. 15. NRS 361.570 is hereby amended to read as follows:

12-30 361.570 1. Pursuant to the notice given as provided in NRS

12-31 361.5648 and 361.565 and at the time stated in the notice, the tax receiver

12-32 shall make out his certificate authorizing the county treasurer, as trustee for

12-33 the state and county, to hold the property described in the notice for the

12-34 period of 2 years after the first Monday in June of the year the certificate is

12-35 dated, unless sooner redeemed.

12-36 2. The certificate must specify:

12-37 (a) The amount of delinquency, including the amount and year of

12-38 assessment;

12-39 (b) The taxes and the penalties and costs added thereto, and that , except

12-40 as otherwise provided in NRS 360.320 and section 2 of this act, interest

12-41 on the taxes will be added at the rate of 10 percent per annum from the date

12-42 due until paid; and

12-43 (c) The name of the owner or taxpayer, if known.

13-1 3. The certificate must state, and it is hereby provided:

13-2 (a) That the property may be redeemed within 2 years [from] after its

13-3 date; and

13-4 (b) That , if not redeemed, the title to the property vests in the county for

13-5 the benefit of the state and county.

13-6 4. Until the expiration of the period of redemption, the property held

13-7 pursuant to the certificate must be assessed annually to the county treasurer

13-8 as trustee, and before the owner or his successor redeems the property , he

13-9 shall also pay the county treasurer holding the certificate any additional

13-10 taxes assessed and accrued against the property after the date of the

13-11 certificate, together with the interest on the taxes at the rate of 10 percent

13-12 per annum from the date due until paid [.] , unless otherwise provided in

13-13 NRS 360.320 or section 2 of this act.

13-14 5. The county treasurer shall take certificates issued to him under the

13-15 provisions of this section.

13-16 Sec. 16. NRS 361.870 is hereby amended to read as follows:

13-17 361.870 1. Any claimant aggrieved by a decision of the department

13-18 or a county assessor which denies the refund claimed under the Senior

13-19 Citizens’ Property Tax Assistance Act may have a review of the denial

13-20 before the [executive director] Nevada tax commission if , within 30 days

13-21 after the claimant receives notice of the denial , he submits a written

13-22 petition for review to the [department.] commission.

13-23 2. Any claimant aggrieved by the denial in whole or in part of relief

13-24 claimed under the Senior Citizens’ Property Tax Assistance Act, or by any

13-25 other final action or review of the [executive director,] Nevada tax

13-26 commission, is entitled to judicial review thereof.

13-27 Sec. 17. NRS 362.130 is hereby amended to read as follows:

13-28 362.130 1. When the department determines from the annual

13-29 statement filed pursuant to NRS 362.110 the net proceeds of any minerals

13-30 extracted, it shall prepare its certificate of the amount of the net proceeds

13-31 and the tax due and shall send a copy to the owner of the mine, operator of

13-32 the mine [,] or recipient of the royalty, as the case may be.

13-33 2. The certificate must be prepared and mailed not later than April 20

13-34 immediately following the month of February during which the statement

13-35 was filed.

13-36 3. The tax due , as indicated in the certificate prepared pursuant to this

13-37 section , must be paid on or before May 10 of the year in which the

13-38 certificate is received.

13-39 4. If the owner of the mine, operator of the mine [,] or recipient of the

13-40 royalty paid taxes pursuant to subsection 1 or 2 of NRS 362.145, the

13-41 certificate must indicate any deficiency remaining from the previous

13-42 calendar year or any overpayment of the taxes made for the previous

13-43 calendar year.

14-1 5. Any deficiency remaining from the previous calendar year, as

14-2 indicated on the certificate prepared pursuant to this section , must be paid

14-3 on or before May 10 of the year in which the certificate is received.

14-4 6. If an overpayment was made and subsection 1 or 2 of NRS 362.145

14-5 applies to the taxpayer for the current calendar year or the taxpayer chooses

14-6 to pay the tax pursuant to subsection 1 or 2 of NRS 362.145 for the current

14-7 calendar year, one-half of the overpayment may be credited towards the

14-8 payment due on August 1 of the current calendar year and one-quarter may

14-9 be credited towards each of the other two payments due for the current

14-10 calendar year. If neither subsection 1 nor subsection 2 of NRS 362.145 is

14-11 applicable to the taxpayer for the current calendar year and the tax is paid

14-12 on or before May 10 of the next calendar year, the overpayment may be

14-13 credited towards that payment. The provisions of this subsection do not

14-14 prohibit the taxpayer from filing a claim for a refund of the overpayment

14-15 with the department.

14-16 Sec. 18. NRS 362.160 is hereby amended to read as follows:

14-17 362.160 1. [If] Except as otherwise provided in NRS 360.320 and

14-18 section 2 of this act, if the amount of any tax required by NRS 362.100 to

14-19 362.240, inclusive, is not paid within 10 days after it is due, it is delinquent

14-20 and must be collected as other delinquent taxes are collected by law,

14-21 together with a penalty of 10 percent of the amount of the tax which is

14-22 owed, as determined by the department, in addition to the tax, plus interest

14-23 at the rate of [1.5] 1 percent per month, or fraction of a month, from the

14-24 date the tax was due until the date of payment.

14-25 2. Any person extracting any mineral or receiving a royalty may appeal

14-26 from the imposition of the penalty and interest to the Nevada tax

14-27 commission by filing a notice of appeal [within 30 days after the tax

14-28 became due.] in accordance with the requirements set forth in NRS

14-29 360.245.

14-30 Sec. 19. NRS 362.230 is hereby amended to read as follows:

14-31 362.230 1. Every person extracting any mineral in this state, or

14-32 receiving a royalty in connection therewith, who fails to file with the

14-33 department the statements provided for in NRS 362.100 to 362.240,

14-34 inclusive, during the time and in the manner provided for in NRS 362.100

14-35 to 362.240, inclusive, shall pay a penalty of not more than $5,000. If any

14-36 such person fails to file the statement, the department may ascertain and

14-37 certify the net proceeds of the minerals extracted or the value of the royalty

14-38 from all data and information obtainable, and the amount of the tax due

14-39 must be computed on the basis of the amount due so ascertained and

14-40 certified.

14-41 2. The executive director shall determine the amount of the penalty.

14-42 This penalty becomes a debt due the State of Nevada and, upon collection,

15-1 must be deposited in the state treasury to the credit of the state general

15-2 fund.

15-3 3. Any person extracting any mineral or receiving a royalty may appeal

15-4 from the imposition of the penalty to the Nevada tax commission by filing a

15-5 notice of appeal [within 30 days after the decision of the executive

15-6 director.] in accordance with the requirements set forth in NRS 360.245.

15-7 Sec. 20. NRS 364A.170 is hereby amended to read as follows:

15-8 364A.170 1. A proposed business that qualifies pursuant to the

15-9 provisions of this section is entitled to an exemption of:

15-10 (a) Eighty percent of the amount of tax otherwise due pursuant to NRS

15-11 364A.140 during the first 4 quarters of its operation;

15-12 (b) Sixty percent of the amount of tax otherwise due pursuant to NRS

15-13 364A.140 during the second 4 quarters of its operation;

15-14 (c) Forty percent of the amount of tax otherwise due pursuant to NRS

15-15 364A.140 during the third 4 quarters of its operation; and

15-16 (d) Twenty percent of the amount of tax otherwise due pursuant to NRS

15-17 364A.140 during the fourth 4 quarters of its operation.

15-18 2. A proposed business is entitled to the exemption pursuant to

15-19 subsection 1 if:

15-20 (a) In a county whose population is 35,000 or more:

15-21 (1) The business will have 75 or more full-time employees on the

15-22 payroll of the business by the fourth quarter that it is in operation;

15-23 (2) Establishing the business will require the business to make a

15-24 capital investment of $1,000,000 in Nevada; and

15-25 (3) The exemption is approved by the commission on economic

15-26 development pursuant to subsection 3.

15-27 (b) In a county whose population is less than 35,000:

15-28 (1) The business will have 25 or more full-time employees on the

15-29 payroll of the business by the fourth quarter that it is in operation;

15-30 (2) Establishing the business will require the business to make a

15-31 capital investment of $250,000 in Nevada; and

15-32 (3) The exemption is approved by the commission on economic

15-33 development pursuant to subsection 3.

15-34 3. A proposed business must apply to the commission on economic

15-35 development to obtain the exemption authorized pursuant to this section.

15-36 The commission shall certify a business’s eligibility for the exemption

15-37 pursuant to this section if:

15-38 (a) The proposed business commits to the requirements of

15-39 subparagraphs (1) and (2) of paragraph (a) or (b) of subsection 2,

15-40 whichever is applicable; and

15-41 (b) The proposed business is consistent with the commission’s plan for

15-42 economic diversification and development.

16-1 Upon certification, the commission shall immediately forward the

16-2 certificate of eligibility for the exemption to the Nevada tax commission.

16-3 4. Upon receipt of such a certificate, the Nevada tax commission shall

16-4 include the exemption in the calculation of the tax paid by the business. A

16-5 business for which an exemption is approved that does not:

16-6 (a) Have the required number of full-time employees on the payroll of

16-7 the business by the fourth quarter that it is in operation; or

16-8 (b) Make the required capital investment in Nevada in the course of

16-9 establishing the business,

16-10 is required to repay to the department the amount of the exemption that was

16-11 allowed pursuant to this section before the business’s failure to comply

16-12 unless the Nevada tax commission determines that the business has

16-13 substantially complied with the requirements of this section. [The] Except

16-14 as otherwise provided in NRS 360.320 and section 2 of this act, the

16-15 business is also required to pay interest on the amount due at the rate most

16-16 recently established pursuant to NRS 99.040 for each month, or portion

16-17 thereof, from the last day of the month following the period for which the

16-18 payment would have been made had the exemption not been granted until

16-19 the date of payment of the tax.

16-20 5. The commission on economic development shall adopt regulations

16-21 governing the determination made pursuant to subsection 3 of a proposed

16-22 business’s eligibility for the exemption provided in this section.

16-23 6. The Nevada tax commission:

16-24 (a) Shall adopt regulations governing the investments that qualify for the

16-25 purposes of the required capital investment pursuant to subparagraph (2) of

16-26 paragraph (a) or (b) of subsection 2.

16-27 (b) May adopt such other regulations as are necessary to carry out the

16-28 provisions of this section.

16-29 Sec. 21. NRS 364A.180 is hereby amended to read as follows:

16-30 364A.180 Upon written application made before the date on which

16-31 payment must be made, for good cause the department may extend by 30

16-32 days the time within which a business is required to pay the tax imposed by

16-33 this chapter. If the tax is paid during the period of extension, no penalty or

16-34 late charge may be imposed for failure to pay at the time required, but the

16-35 business shall pay interest at the rate most recently established pursuant to

16-36 NRS 99.040 for each month, or fraction of a month, from the last day of the

16-37 month following the date on which the amount would have been due

16-38 without the extension until the date of payment [.] , unless otherwise

16-39 provided in NRS 360.320 or section 2 of this act.

16-40 Sec. 22. NRS 364A.260 is hereby amended to read as follows:

16-41 364A.260 1. [Interest] Except as otherwise provided in NRS

16-42 360.320, interest must be paid upon any overpayment of any amount of the

16-43 fee or tax imposed by this chapter at the rate of one-half of 1 percent per

17-1 month, or fraction thereof, from the last day of the calendar month

17-2 following the period for which the overpayment was made. No refund or

17-3 credit may be made of any interest imposed upon the person or business

17-4 making the overpayment with respect to the amount being refunded or

17-5 credited.

17-6 2. The interest must be paid:

17-7 (a) In the case of a refund, to the last day of the calendar month

17-8 following the date upon which the person making the overpayment, if he

17-9 has not already filed a claim, is notified by the department that a claim may

17-10 be filed or the date upon which the claim is certified to the state board of

17-11 examiners, whichever is earlier.

17-12 (b) In the case of a credit, to the same date as that to which interest is

17-13 computed on the fee or tax or amount against which the credit is applied.

17-14 3. If the department determines that any overpayment has been
17-15 made intentionally or by reason of carelessness, it shall not allow any

17-16 interest on it.

17-17 Sec. 23. NRS 364A.280 is hereby amended to read as follows:

17-18 364A.280 1. Within 90 days after [the mailing of the notice of the

17-19 department’s action] a final decision upon a claim filed pursuant to this

17-20 chapter [,] is rendered by the Nevada tax commission, the claimant may

17-21 bring an action against the department on the grounds set forth in the claim

17-22 in a court of competent jurisdiction in Carson City or Clark County for the

17-23 recovery of the whole or any part of the amount with respect to which the

17-24 claim has been disallowed.

17-25 2. Failure to bring an action within the time specified constitutes a

17-26 waiver of any demand against the state on account of alleged

17-27 overpayments.

17-28 Sec. 24. NRS 364A.290 is hereby amended to read as follows:

17-29 364A.290 1. If the department fails to mail notice of action on a

17-30 claim within 6 months after the claim is filed, the claimant may [, before the

17-31 mailing of notice by the department of its action on the claim,] consider the

17-32 claim disallowed and file an appeal with the Nevada tax commission

17-33 within the 30 days after the last day of the 6-month period. If the

17-34 claimant is aggrieved by the decision of the commission rendered on

17-35 appeal, he may, within 90 days after the decision is rendered, bring an

17-36 action against the department on the grounds set forth in the claim for the

17-37 recovery of the whole or any part of the amount claimed as an

17-38 overpayment.

17-39 2. If judgment is rendered for the plaintiff, the amount of the judgment

17-40 must first be credited towards any fee or tax due from the plaintiff.

17-41 3. The balance of the judgment must be refunded to the plaintiff.

18-1 Sec. 25. NRS 365.310 is hereby amended to read as follows:

18-2 365.310 1. The department [shall have power to] may suspend,

18-3 cancel or revoke the license of any dealer refusing or neglecting to comply

18-4 with the provisions of this chapter.

18-5 2. If a dealer becomes delinquent in the payment of excise taxes as

18-6 prescribed by this chapter to the extent that his liability exceeds the total

18-7 amount of bond furnished by the dealer, the department shall suspend his

18-8 license immediately.

18-9 3. Before revoking or canceling any license issued under this chapter,

18-10 the department shall send a notice by registered or certified mail to the

18-11 dealer at his last known address. The notice [shall] must order the dealer to

18-12 show cause why his license should not be revoked by appearing before the

18-13 department at Carson City, Nevada, or such other place in this state as may

18-14 be designated by the department, at a time not less than 10 days after the

18-15 mailing of the notice. The department shall allow the dealer an opportunity

18-16 to be heard in pursuance of such notice, and thereafter the department [shall

18-17 have full power to] may revoke or cancel his license.

18-18 Sec. 26. NRS 365.460 is hereby amended to read as follows:

18-19 365.460 After payment of any excise tax under protest duly verified,

18-20 served on the department, and setting forth the grounds of objection to the

18-21 legality of the excise tax, the dealer paying the excise tax may file an

18-22 appeal with the Nevada tax commission pursuant to NRS 360.245. If the

18-23 dealer is aggrieved by the decision of the commission rendered on

18-24 appeal, he may bring an action against the state treasurer in [the district

18-25 court in and for] a court of competent jurisdiction in Carson City or Clark

18-26 County for the recovery of the excise tax so paid under protest.

18-27 Sec. 27. NRS 365.470 is hereby amended to read as follows:

18-28 365.470 1. No action authorized by NRS 365.460 may be instituted

18-29 more than 90 days after [the last day prescribed for the payment of the

18-30 excise tax without penalty.] a final decision is rendered by the Nevada tax

18-31 commission on appeal. Failure to bring suit within the 90 days [shall

18-32 constitute] constitutes a waiver of any and all demands against the state on

18-33 account of alleged overpayment of excise taxes.

18-34 2. No grounds of illegality of the excise tax [shall] may be considered

18-35 by the court other than those set forth in the protest filed at the time of the

18-36 payment of the excise tax.

18-37 Sec. 28. NRS 366.395 is hereby amended to read as follows:

18-38 366.395 1. [Any] Except as otherwise provided in NRS 360.320 and

18-39 section 2 of this act, any person who fails to pay any excise tax, except

18-40 taxes assessed pursuant to the provisions of NRS 366.405, within the time

18-41 prescribed by this chapter shall pay, in addition to the tax, a penalty of:

18-42 (a) If the amount of the tax owed is $50 or more, 10 percent of the

18-43 amount owed or $50, whichever is greater; or

19-1 (b) If the amount of the tax owed is less than $50, 10 percent of the

19-2 amount owed,

19-3 plus interest on the amount of the tax at the rate of 1 percent per month or

19-4 fraction thereof, from the date the tax became finally due until the date of

19-5 payment.

19-6 2. A tax return or statement is considered delinquent when it has not

19-7 been received by the department by the date the tax return or statement is

19-8 due, as prescribed by the provisions of this chapter.

19-9 Sec. 29. NRS 366.405 is hereby amended to read as follows:

19-10 366.405 1. If the department is not satisfied with the records or

19-11 statements of, or with the amount of tax paid by, any person pursuant to the

19-12 provisions of this chapter, or the department does not receive a return from

19-13 a person who is required to file a return pursuant to this chapter, it may

19-14 make an additional or estimated assessment of tax due from that person

19-15 based upon any information available to it. [Every] Except as otherwise

19-16 provided in NRS 360.320 and section 2 of this act, every additional or

19-17 estimated assessment bears interest at the rate of 1 percent per month, or

19-18 fraction thereof, from the date the tax became due until it is paid.

19-19 2. If an additional assessment is imposed, a penalty of 10 percent of the

19-20 amount of the additional assessment must be added thereto. If any part of

19-21 the deficiency is found to be caused by fraud or an intent to evade the

19-22 provisions of this chapter or the regulations adopted pursuant to those

19-23 provisions, a penalty of 25 percent of the amount of the additional

19-24 assessment must be added thereto.

19-25 3. The department shall give the person written notice of the additional

19-26 assessment. The notice may be served personally or by mail in the manner

19-27 prescribed by Rule 5 of the Nevada Rules of Civil Procedure addressed to

19-28 the person at his address as it appears in the records of the department.

19-29 Every notice of additional assessment proposed to be assessed pursuant to

19-30 the provisions of this chapter must be served within 4 years after the

19-31 claimed erroneous report was filed.

19-32 4. If a special fuel user, special fuel dealer or special fuel supplier

19-33 refuses or fails to make available to the department, upon request, such

19-34 records, reports or other information as determined by the department to be

19-35 necessary to enable it to determine that the amount of tax paid by the user

19-36 or supplier is correct, the additional or estimated assessment made pursuant

19-37 to the provisions of this section is presumed to be correct and the burden is

19-38 upon the person challenging the assessment to establish that it is erroneous.

19-39 5. Any person against whom an assessment has been made pursuant to

19-40 the provisions of this section may petition the department in writing for a

19-41 redetermination within 30 days after service of the notice. If a petition is

19-42 not filed with the department within that period, the assessment becomes

19-43 final.

20-1 6. If a petition for redetermination is filed within 30 days, the

20-2 department shall reconsider the assessment and send the petitioner, by

20-3 certified mail, notice of its decision and the reasons therefor. A petitioner

20-4 aggrieved by the department’s decision may appeal the decision by

20-5 submitting a written request to the department for a hearing not later than

20-6 30 days after notice of the decision was mailed by the department. The

20-7 department shall schedule an administrative hearing and provide to the

20-8 petitioner, not less than 10 days before the hearing, notice of the time and

20-9 place of the hearing. The department may continue the hearing as it deems

20-10 necessary.

20-11 7. The order of the department upon a petition becomes final 30 days

20-12 after service of notice thereof.

20-13 Sec. 30. NRS 366.660 is hereby amended to read as follows:

20-14 366.660 1. No injunction, writ of mandate or other legal or equitable

20-15 process may issue in any suit, action or proceeding in any court against this

20-16 state or any officer thereof to prevent or enjoin the collection pursuant to

20-17 this chapter of any excise tax or other amount required to be collected.

20-18 2. After payment of any such excise tax or other amount under protest,

20-19 verified and setting forth the grounds of objection to the legality thereof,

20-20 filed with the department at the time of payment of the tax or other amount

20-21 protested, the special fuel supplier, special fuel dealer or special fuel user

20-22 making the payment may bring an action against the state treasurer in [the

20-23 district court in and for] a court of competent jurisdiction in Carson City

20-24 or Clark County for the recovery of the amount so paid under protest.

20-25 Sec. 31. NRS 372.135 is hereby amended to read as follows:

20-26 372.135 1. After compliance with NRS 372.125, 372.130 and

20-27 372.510 by the applicant, the department shall [grant] :

20-28 (a) Grant and issue to each applicant a separate permit for each place of

20-29 business within the state.

20-30 (b) Provide the applicant with a full, written explanation of the

20-31 liability of the applicant for the collection and payment of the taxes

20-32 imposed by this chapter. The explanation required by this paragraph:

20-33 (1) Must include the procedures for the collection and payment of

20-34 the taxes that are specifically applicable to the type of business conducted

20-35 by the applicant, including, without limitation and when appropriate:

20-36 (I) An explanation of the circumstances under which a service

20-37 provided by the applicant is taxable;

20-38 (II) The procedures for administering exemptions; and

20-39 (III) The circumstances under which charges for freight are

20-40 taxable.

20-41 (2) Is in addition to, and not in lieu of, the instructions and

20-42 information required to be provided by NRS 360.2925.

21-1 2. A permit is not assignable [,] and is valid only for the person in

21-2 whose name it is issued and for the transaction of business at the place

21-3 designated on it. It must at all times be conspicuously displayed at the place

21-4 for which it is issued.

21-5 Sec. 32. NRS 372.660 is hereby amended to read as follows:

21-6 372.660 1. [Interest] Except as otherwise provided in NRS 360.320,

21-7 interest must be paid upon any overpayment of any amount of tax at the

21-8 rate of one-half of 1 percent per month from the last day of the calendar

21-9 month following the period for which the overpayment was made. No

21-10 refund or credit may be made of any interest imposed upon the person

21-11 making the overpayment with respect to the amount being refunded or

21-12 credited.

21-13 2. The interest must be paid:

21-14 (a) In the case of a refund, to the last day of the calendar month

21-15 following the date upon which the person making the overpayment, if he

21-16 has not already filed a claim, is notified by the department that a claim may

21-17 be filed or the date upon which the claim is certified to the state board of

21-18 examiners, whichever is earlier.

21-19 (b) In the case of a credit, to the same date as that to which interest is

21-20 computed on the tax or amount against which the credit is applied.

21-21 Sec. 33. NRS 372.680 is hereby amended to read as follows:

21-22 372.680 1. Within 90 days after [the mailing of the notice of the

21-23 department’s action] a final decision upon a claim filed pursuant to this

21-24 chapter [,] is rendered by the Nevada tax commission, the claimant may

21-25 bring an action against the department on the grounds set forth in the claim

21-26 in a court of competent jurisdiction in Carson City or Clark County for the

21-27 recovery of the whole or any part of the amount with respect to which the

21-28 claim has been disallowed.

21-29 2. Failure to bring an action within the time specified constitutes a

21-30 waiver of any demand against the state on account of alleged

21-31 overpayments.

21-32 Sec. 34. NRS 372.685 is hereby amended to read as follows:

21-33 372.685 If the department fails to mail notice of action on a claim

21-34 within 6 months after the claim is filed, the claimant may [, before the

21-35 mailing of notice by the department of its action on the claim,] consider the

21-36 claim disallowed and file an appeal with a hearing officer within 45 days

21-37 after the last day of the 6-month period. If the claimant is aggrieved by

21-38 the decision of the hearing officer on appeal, he may, pursuant to the

21-39 provisions of NRS 360.245, appeal the decision to the Nevada tax

21-40 commission. If the claimant is aggrieved by the decision of the

21-41 commission on appeal, he may, within 45 days after the decision is

21-42 rendered, bring an action against the department on the grounds set forth in

22-1 the claim for the recovery of the whole or any part of the amount claimed

22-2 as an overpayment.

22-3 Sec. 35. NRS 372.705 is hereby amended to read as follows:

22-4 372.705 The department may recover any refund or part of it which is

22-5 erroneously made and any credit or part of it which is erroneously allowed

22-6 in an action brought in a court of competent jurisdiction in Carson City or

22-7 Clark County in the name of the State of Nevada.

22-8 Sec. 36. NRS 372.710 is hereby amended to read as follows:

22-9 372.710 The action must be tried in Carson City or Clark County

22-10 unless the court with the consent of the attorney general orders a change of

22-11 place of trial.

22-12 Sec. 37. NRS 372.750 is hereby amended to read as follows:

22-13 372.750 1. Except as otherwise provided in this section, it is a

22-14 misdemeanor for any member of the tax commission or officer , agent or

22-15 employee of the department to make known in any manner whatever the

22-16 business affairs, operations or information obtained by an investigation of

22-17 records and equipment of any retailer or any other person visited or

22-18 examined in the discharge of official duty, or the amount or source of

22-19 income, profits, losses, expenditures or any particular of them, set forth or

22-20 disclosed in any return, or to permit any return or copy of a return, or any

22-21 book containing any abstract or particulars of it to be seen or examined by

22-22 any person not connected with the department.

22-23 2. The tax commission may agree with any county fair and recreation

22-24 board or the governing body of any county, city or town for the continuing

22-25 exchange of information concerning taxpayers.

22-26 3. The governor may, by general or special order, authorize the

22-27 examination of the records maintained by the department under this chapter

22-28 by other state officers, by tax officers of another state, by the Federal

22-29 Government, if a reciprocal arrangement exists, or by any other person. The

22-30 information so obtained may not be made public except to the extent and in

22-31 the manner that the order may authorize that it be made public.

22-32 4. Upon written request made by a public officer of a local

22-33 government, the executive director shall furnish from the records of the

22-34 department, the name and address of the owner of any seller or retailer who

22-35 must file a return with the department. The request must set forth the social

22-36 security number of the owner of the seller or retailer about which the

22-37 request is made and contain a statement signed by the proper authority of

22-38 the local government certifying that the request is made to allow the proper

22-39 authority to enforce a law to recover a debt or obligation owed to the local

22-40 government. The information obtained by the local government is

22-41 confidential and may not be used or disclosed for any purpose other than

22-42 the collection of a debt or obligation owed to that local government. The

23-1 executive director may charge a reasonable fee for the cost of providing the

23-2 requested information.

23-3 5. Successors, receivers, trustees, executors, administrators, assignees

23-4 and guarantors, if directly interested, may be given information as to the

23-5 items included in the measure and amounts of any unpaid tax or amounts of

23-6 tax required to be collected, interest and penalties.

23-7 6. Relevant information may be disclosed as evidence in an appeal by

23-8 the taxpayer from a determination of tax due.

23-9 7. At any time after a determination, decision or order of the executive

23-10 director or other officer of the department imposing upon a person a

23-11 penalty for fraud or intent to evade the tax imposed by this chapter on the

23-12 sale, storage, use or other consumption of any vehicle, vessel or aircraft

23-13 becomes final or is affirmed by the commission, any member of the

23-14 commission or officer , agent or employee of the department may publicly

23-15 disclose the identity of that person and the amount of tax assessed and

23-16 penalties imposed against him.

23-17 Sec. 38. NRS 374.140 is hereby amended to read as follows:

23-18 374.140 1. After compliance with NRS 374.130, 374.135 and

23-19 374.515 by the applicant, the department shall [grant] :

23-20 (a) Grant and issue to each applicant a separate permit for each place of

23-21 business within the county.

23-22 (b) Provide the applicant with a full, written explanation of the

23-23 liability of the applicant for the collection and payment of the taxes

23-24 imposed by this chapter. The explanation required by this paragraph:

23-25 (1) Must include the procedures for the collection and payment of

23-26 the taxes that are specifically applicable to the type of business conducted

23-27 by the applicant, including, without limitation and when appropriate:

23-28 (I) An explanation of the circumstances under which a service

23-29 provided by the applicant is taxable;

23-30 (II) The procedures for administering exemptions; and

23-31 (III) The circumstances under which charges for freight are

23-32 taxable.

23-33 (2) Is in addition to, and not in lieu of, the instructions and

23-34 information required to be provided by NRS 360.2925.

23-35 2. A permit [shall not be assignable, and shall be] is not assignable

23-36 and is valid only for the person in whose name it is issued and for the

23-37 transaction of business at the place designated therein. [It shall] A permit

23-38 must at all times be conspicuously displayed at the place for which it is

23-39 issued.

23-40 Sec. 39. NRS 374.357 is hereby amended to read as follows:

23-41 374.357 1. A person who maintains a business or intends to locate a

23-42 business in this state may apply to the commission on economic

23-43 development for an abatement from the taxes imposed by this chapter on

24-1 the gross receipts from the sale, and the storage, use or other consumption,

24-2 of eligible machinery or equipment for use by a business which has been

24-3 approved for an abatement pursuant to subsection 2.

24-4 2. The commission on economic development may approve an

24-5 application for an abatement if:

24-6 (a) The goals of the business are consistent with the goals of the

24-7 commission concerning industrial development and diversification;

24-8 (b) The commission determines that the abatement is a significant factor

24-9 in the decision of the applicant to locate or expand a business in this state;

24-10 (c) The average hourly wage paid by the business to its employees in

24-11 this state is at least equal to the average statewide industrial hourly wage as

24-12 established by the employment security division of the department of

24-13 employment, training and rehabilitation on July 1 of each fiscal year;

24-14 (d) The business provides a health insurance plan for its employees that

24-15 includes an option for health insurance coverage for dependents of

24-16 employees;

24-17 (e) The business is registered pursuant to the laws of this state or the

24-18 applicant commits to obtain a valid business license and all other permits

24-19 required by the county, city or town in which the business operates;

24-20 (f) The business will provide at least 10 full-time, permanent jobs in

24-21 Nevada by the fourth quarter that it is in operation; and

24-22 (g) The applicant commits to maintaining his business in this state for at

24-23 least 5 years.

24-24 3. An applicant shall, upon the request of the executive director of the

24-25 commission on economic development, furnish to the director copies of all

24-26 records necessary for the director to verify that the applicant meets the

24-27 requirement of paragraph (c) of subsection 2.

24-28 4. The commission on economic development may approve an

24-29 application for an abatement which does not meet the requirements of

24-30 subsection 2 if the commission determines that such an approval is

24-31 warranted.

24-32 5. If an application for an abatement is approved, the taxpayer is

24-33 eligible for an abatement from the tax imposed by this chapter for 2 years.

24-34 6. If an application for an abatement is approved, the commission on

24-35 economic development shall immediately forward a certificate of eligibility

24-36 for the abatement to the Nevada tax commission.

24-37 7. If a business for which an abatement has been approved is not

24-38 maintained in this state for at least 5 years after the commission on

24-39 economic development approved the abatement, the person who applied for

24-40 the abatement shall repay to the department the amount of the abatement

24-41 that was allowed pursuant to this section before the failure of the business

24-42 to comply unless the Nevada tax commission determines that the business

24-43 has substantially complied with the requirements of this section. [The]

25-1 Except as otherwise provided in NRS 360.320 and section 2 of this act,

25-2 the person who applied for the abatement shall pay interest on the amount

25-3 due at the rate most recently established pursuant to NRS 99.040 for each

25-4 month, or portion thereof, from the last day of the month following the

25-5 period for which the payment would have been made had the abatement not

25-6 been granted until the date of the actual payment of the tax.

25-7 8. The commission on economic development shall adopt regulations

25-8 which it considers necessary to carry out the provisions of this section.

25-9 9. As used in this section, unless the context otherwise requires,

25-10 "eligible machinery or equipment" means machinery or equipment for

25-11 which a deduction is authorized pursuant to 26 U.S.C. § 179. The term

25-12 does not include:

25-13 (a) Buildings or the structural components of buildings;

25-14 (b) Equipment used by a public utility;

25-15 (c) Equipment used for medical treatment;

25-16 (d) Machinery or equipment used in mining; or

25-17 (e) Machinery or equipment used in gaming.

25-18 Sec. 40. NRS 374.665 is hereby amended to read as follows:

25-19 374.665 1. [Interest] Except as otherwise provided in NRS 360.320,

25-20 interest must be paid upon any overpayment of any amount of tax at the

25-21 rate of one-half of 1 percent per month from the last day of the calendar

25-22 month following the period for which the overpayment was made . [; but

25-23 no] No refund or credit may be made of any interest imposed upon the

25-24 person making the overpayment with respect to the amount being refunded

25-25 or credited.

25-26 2. The interest must be paid as follows:

25-27 (a) In the case of a refund, to the last day of the calendar month

25-28 following the date upon which the person making the overpayment, if he

25-29 has not already filed a claim, is notified by the department that a claim may

25-30 be filed or the date upon which the claim is certified to the board of county

25-31 commissioners, whichever date is earlier.

25-32 (b) In the case of a credit, to the same date as that to which interest is

25-33 computed on the tax or amount against which the credit is applied.

25-34 Sec. 41. NRS 374.685 is hereby amended to read as follows:

25-35 374.685 1. Within 90 days after [the mailing of the notice of the

25-36 department’s action] a final decision upon a claim filed pursuant to this

25-37 chapter [,] is rendered by the Nevada tax commission, the claimant may

25-38 bring an action against the department on the grounds set forth in the claim

25-39 in a court of competent jurisdiction in Carson City or Clark County for the

25-40 recovery of the whole or any part of the amount with respect to which the

25-41 claim has been disallowed.

26-1 2. Failure to bring an action within the time specified constitutes a

26-2 waiver of any demand against the county on account of alleged

26-3 overpayments.

26-4 Sec. 42. NRS 374.690 is hereby amended to read as follows:

26-5 374.690 If the department fails to mail notice of action on a claim

26-6 within 6 months after the claim is filed, the claimant may [, prior to the

26-7 mailing of notice by the department of its action on the claim,] consider the

26-8 claim disallowed and file an appeal with a hearing officer within 45 days

26-9 after the last day of the 6-month period. If the claimant is aggrieved by

26-10 the decision of the hearing officer on appeal, he may, pursuant to the

26-11 provisions of NRS 360.245, appeal the decision to the Nevada tax

26-12 commission. If the claimant is aggrieved by the decision of the

26-13 commission on appeal, he may, within 45 days after the decision is

26-14 rendered, bring an action against the department on the grounds set forth in

26-15 the claim for the recovery of the whole or any part of the amount claimed

26-16 as an overpayment.

26-17 Sec. 43. NRS 374.755 is hereby amended to read as follows:

26-18 374.755 1. Except as otherwise provided in this section, it is a

26-19 misdemeanor for any member of the Nevada tax commission or [official]

26-20 officer, agent or employee of the department to make known in any manner

26-21 whatever the business affairs, operations or information obtained by an

26-22 investigation of records and equipment of any retailer or any other person

26-23 visited or examined in the discharge of official duty, or the amount or

26-24 source of income, profits, losses, expenditures or any particular thereof, set

26-25 forth or disclosed in any return, or to permit any return or copy thereof, or

26-26 any book containing any abstract or particulars thereof to be seen or

26-27 examined by any person not connected with the department.

26-28 2. The Nevada tax commission may agree with any county fair and

26-29 recreation board or the governing body of any county, city or town for the

26-30 continuing exchange of information concerning taxpayers.

26-31 3. The governor may, however, by general or special order, authorize

26-32 the examination of the records maintained by the department under this

26-33 chapter by other state officers, by tax officers of another state, by the

26-34 Federal Government, if a reciprocal arrangement exists, or by any other

26-35 person. The information so obtained pursuant to the order of the governor

26-36 may not be made public except to the extent and in the manner that the

26-37 order may authorize that it be made public.

26-38 4. Upon written request made by a public officer of a local

26-39 government, the executive director shall furnish from the records of the

26-40 department, the name and address of the owner of any seller or retailer who

26-41 must file a return with the department. The request must set forth the social

26-42 security number of the owner of the seller or retailer about which the

26-43 request is made and contain a statement signed by the proper authority of

27-1 the local government certifying that the request is made to allow the proper

27-2 authority to enforce a law to recover a debt or obligation owed to the local

27-3 government. The information obtained by the local government is

27-4 confidential and may not be used or disclosed for any purpose other than

27-5 the collection of a debt or obligation owed to that local government. The

27-6 executive director may charge a reasonable fee for the cost of providing the

27-7 requested information.

27-8 5. Successors, receivers, trustees, executors, administrators, assignees

27-9 and guarantors, if directly interested, may be given information as to the

27-10 items included in the measure and amounts of any unpaid tax or amounts of

27-11 tax required to be collected, interest and penalties.

27-12 6. Relevant information may be disclosed as evidence in an appeal by

27-13 the taxpayer from a determination of tax due.

27-14 7. At any time after a determination, decision or order of the executive

27-15 director or other officer of the department imposing upon a person a

27-16 penalty for fraud or intent to evade the tax imposed by this chapter on the

27-17 sale, storage, use or other consumption of any vehicle, vessel or aircraft

27-18 becomes final or is affirmed by the commission, any member of the

27-19 commission or officer , agent or employee of the department may publicly

27-20 disclose the identity of that person and the amount of tax assessed and

27-21 penalties imposed against him.

27-22 Sec. 44. NRS 375A.170 is hereby amended to read as follows:

27-23 375A.170 If the return provided for in NRS 375A.150 is not filed

27-24 within the time specified in that section or the extension specified in NRS

27-25 375A.155, then the personal representative shall pay, except as otherwise

27-26 provided in NRS 360.320 and section 2 of this act, and in addition to the

27-27 interest provided in NRS 375A.205, a penalty equal to 5 percent of the tax

27-28 due, as finally determined, for each month or portion of a month during

27-29 which that failure to file continues, not exceeding 25 percent in the

27-30 aggregate, unless it is shown that there was reasonable cause for the failure

27-31 to file. If a similar penalty for failure to file timely the federal estate tax

27-32 return is waived, that waiver shall be deemed to constitute reasonable cause

27-33 for purposes of this section.

27-34 Sec. 45. NRS 375A.195 is hereby amended to read as follows:

27-35 375A.195 If it is claimed that a deficiency has been determined in an

27-36 erroneous amount, any person who is liable for the tax may [,] appeal the

27-37 determination to the Nevada tax commission pursuant to NRS 360.245.

27-38 If the person who is liable for the tax is aggrieved by the decision of the

27-39 commission on appeal, he may, within 3 years after the determination was

27-40 made, bring an action against the State of Nevada in the district court

27-41 having jurisdiction over the estate to have the tax modified in whole or in

27-42 part.

28-1 Sec. 46. NRS 375A.205 is hereby amended to read as follows:

28-2 375A.205 1. The tax imposed by NRS 375A.100 does not bear

28-3 interest if it is paid before the date on which it otherwise becomes

28-4 delinquent. [If] Except as otherwise provided in NRS 360.320 and section

28-5 2 of this act, if the tax is paid after that date, the tax bears interest at the

28-6 rate set by the executive director, from the date it became delinquent until it

28-7 is paid.

28-8 2. The executive director shall set and maintain the rate of interest for

28-9 late payments at the highest rate permissible pursuant to section 4 of article

28-10 10 of the Nevada constitution.

28-11 Sec. 47. NRS 375A.215 is hereby amended to read as follows:

28-12 375A.215 1. If any personal representative fails to pay any tax

28-13 imposed by NRS 375A.100 for which he is liable before the date the tax

28-14 becomes delinquent, he must, on motion of the department, be required by

28-15 the district court having jurisdiction over the estate to execute a bond to the

28-16 State of Nevada in an amount equal to twice the amount of the tax, with

28-17 such sureties as the court may approve, conditioned for the payment of the

28-18 tax, plus interest on the tax at the rate of interest set by the executive

28-19 director pursuant to NRS 375A.205 commencing on the date the tax

28-20 became delinquent, unless otherwise provided in NRS 360.320 or section

28-21 2 of this act. The bond must be executed within a certain time to be fixed

28-22 by the court and specified in the bond.

28-23 2. The bond must be filed in the office of the clerk of the court, and a

28-24 certified copy must be immediately transmitted to the department.

28-25 3. If the bond is not filed within 20 days after the date of the filing of

28-26 the order requiring it, the letters of the personal representative affected

28-27 must be revoked upon motion of the department.

28-28 Sec. 48. NRS 375A.225 is hereby amended to read as follows:

28-29 375A.225 Interest must be paid upon any overpayment of the tax due

28-30 under NRS 375A.100 at the rate of interest set by the executive director

28-31 pursuant to NRS 375A.205. [That] Except as otherwise provided in NRS

28-32 360.320, the interest must be allowed from the date on which payment of

28-33 the tax would have become delinquent, if not paid, or the date of actual

28-34 payment, whichever is later, to a date preceding the date of the refund by

28-35 not more than 30 days, as determined by the department.

28-36 Sec. 49. NRS 375A.690 is hereby amended to read as follows:

28-37 375A.690 [If] Except as otherwise provided in NRS 360.320 and

28-38 section 2 of this act, if the board determines that a decedent dies domiciled

28-39 in this state, the total amount of interest and penalties for nonpayment of

28-40 the tax, between the date of the election and the final determination of the

28-41 board, must not exceed an amount determined by applying the rate of

28-42 interest set by the executive director pursuant to NRS 375A.205 to the

28-43 amount of the taxes due.

29-1 Sec. 50. NRS 375B.190 is hereby amended to read as follows:

29-2 375B.190 If the return required by NRS 375B.150 is not filed within

29-3 the time specified in that section or the extension specified in NRS

29-4 375B.160, the person liable for the tax shall pay, except as otherwise

29-5 provided in NRS 360.320 and section 2 of this act, and in addition to the

29-6 interest provided in NRS 375B.250, a penalty equal to 5 percent of the tax

29-7 due, as finally determined, for each month or portion of a month during

29-8 which that failure to file continues, not exceeding 25 percent in the

29-9 aggregate, unless it is shown that there was reasonable cause for the failure

29-10 to file. If a similar penalty for failure to file timely the federal estate tax

29-11 return is waived, that waiver shall be deemed to constitute reasonable cause

29-12 for purposes of this section.

29-13 Sec. 51. NRS 375B.230 is hereby amended to read as follows:

29-14 375B.230 1. If it is claimed that a deficiency has been determined in

29-15 an erroneous amount, any person who is liable for the tax may [,] appeal

29-16 the determination to the Nevada tax commission pursuant to NRS

29-17 360.245. If the person who is liable for the tax is aggrieved by the

29-18 decision of the commission on appeal, he may, within 3 years after the

29-19 determination was made, bring an action against the State of Nevada in the

29-20 district court having jurisdiction over the property which was transferred to

29-21 have the tax modified in whole or in part.

29-22 2. The department shall give notice of the deficiency determined,

29-23 together with any penalty for failure to file a return, by personal service or

29-24 by mail to the person filing the return at the address stated in the return, or,

29-25 if no return is filed, to the person liable for the tax. Copies of the notice of

29-26 deficiency may in the same manner be given to such other persons as the

29-27 department deems advisable.

29-28 Sec. 52. NRS 375B.250 is hereby amended to read as follows:

29-29 375B.250 1. [If] Except as otherwise provided in NRS 360.320 and

29-30 section 2 of this act, if the tax is paid after the due date, the tax bears

29-31 interest at the rate set by the executive director, from the due date of the

29-32 return.

29-33 2. The executive director shall set and maintain the rate of interest for

29-34 late payments at the highest rate permissible pursuant to section 4 of article

29-35 10 of the Nevada constitution.

29-36 Sec. 53. NRS 375B.270 is hereby amended to read as follows:

29-37 375B.270 1. If any person who is liable for the tax fails to pay any

29-38 portion of the tax imposed by NRS 375B.100 on or before the date the tax

29-39 is due, he must, on motion of the department, be required by the district

29-40 court having jurisdiction over the generation-skipping transfer to execute a

29-41 bond to the State of Nevada in an amount equal to twice the amount of the

29-42 tax due, with such sureties as the court may approve, conditioned upon the

29-43 payment of the tax, plus interest on the tax at the rate of interest set by the

30-1 executive director pursuant to NRS 375B.250 commencing on the date the

30-2 tax became due, unless otherwise provided in NRS 360.320 and section 2

30-3 of this act. The bond must be executed within a time certain to be fixed by

30-4 the court and specified in the bond.

30-5 2. The bond must be filed in the office of the clerk of the court, and a

30-6 certified copy must be immediately transmitted to the department.

30-7 Sec. 54. 1. This section and sections 1 to 9, inclusive, 11 to 30,

30-8 inclusive, 32 to 37, inclusive, and 39 to 53, inclusive, of this act become

30-9 effective on July 1, 1999.

30-10 2. Section 10 of this act becomes effective at 12:01 a.m. on July 1,

30-11 1999.

30-12 3. Sections 31 and 38 of this act become effective on July 1, 2000.

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