Senate Bill No. 468–Committee on Taxation

March 17, 1999

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Referred to Committee on Taxation

 

SUMMARY—Changes provisions for certain taxes on sale of motorboat and for movement

of vehicles and motorboats. (BDR 32-1027)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: Yes.

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

 

AN ACT relating to taxation; providing for the imposition of certain taxes on the casual sale

of used motorboats; excluding the value of a motorboat taken in trade from the

sales price of a motorboat for the purposes of certain taxes; 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 374 of NRS is hereby amended by adding thereto

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

1-3 Sec. 2. "Motorboat" has the meaning ascribed to it in NRS 488.035.

1-4 Sec. 3. 1. For the purposes of this section:

1-5 (a) "Authorized appraisal" means an appraisal of the value of a

1-6 motorboat made by:

1-7 (1) An employee of the division on its behalf; or

1-8 (2) A person authorized by the division to make appraisals on its

1-9 behalf.

1-10 (b) "Division" means the division of wildlife of the state department of

1-11 conservation and natural resources.

1-12 2. In computing the tax on the sale of a motorboat by a seller who is

1-13 not required to be registered with the department of taxation, the division

1-14 shall, if an authorized appraisal is submitted:

1-15 (a) Require the submission of a notarized copy of the bill of sale, or a

1-16 copy of the bill of sale that is witnessed by an employee of the division for

1-17 the particular motorboat; and

2-1 (b) Use as the motorboat’s sales price the greatest of:

2-2 (1) The amount stated on the authorized appraisal;

2-3 (2) The cost of the motorboat as evidenced by the copy of the bill of

2-4 sale; or

2-5 (3) One hundred dollars.

2-6 3. The division shall establish and make available a form for an

2-7 authorized appraisal.

2-8 4. The division shall retain a copy of the appraisal and bill of sale

2-9 considered pursuant to subsection 2 with its record of the collection of

2-10 the tax.

2-11 5. A fee of not more than $10 may be charged and collected for each

2-12 authorized appraisal made.

2-13 6. The board of wildlife commissioners shall adopt by regulation an

2-14 appropriate schedule of depreciation for motorboats.

2-15 7. If an authorized appraisal is not submitted, the division shall

2-16 establish the sales price as the depreciated value of the motorboat

2-17 determined in accordance with its adopted schedule. To determine the

2-18 original price from which depreciation is calculated, the division shall

2-19 use:

2-20 (a) The manufacturer’s suggested retail price in Nevada, excluding

2-21 options and extras, as of the time the particular model of motorboat is

2-22 first offered for sale in Nevada;

2-23 (b) If the motorboat is specially constructed, the original retail price to

2-24 the original purchaser of the motorboat as evidenced by such document

2-25 or documents as the division may require; or

2-26 (c) If neither of these applies, its own estimate from any available

2-27 information.

2-28 Sec. 4. NRS 374.020 is hereby amended to read as follows:

2-29 374.020 Except where the context otherwise requires, the definitions

2-30 given in NRS 374.025 to 374.107, inclusive, and section 2 of this act

2-31 govern the construction of this chapter.

2-32 Sec. 5. NRS 374.040 is hereby amended to read as follows:

2-33 374.040 1. "Occasional sale," except as otherwise provided in

2-34 subsection 2, includes:

2-35 (a) A sale of property not held or used by a seller in the course of an

2-36 activity for which he is required to hold a seller’s permit, [provided such] if

2-37 the sale is not one of a series of sales sufficient in number, scope and

2-38 character to constitute an activity requiring the holding of a seller’s permit.

2-39 (b) Any transfer of all or substantially all the property held or used by a

2-40 person in the course of such an activity when after [such] the transfer the

2-41 real or ultimate ownership of [such] the property is substantially similar to

2-42 that which existed before [such] the transfer.

3-1 2. The term does not include the sale of a vehicle or motorboat other

3-2 than the sale or transfer of a used vehicle or motorboat to the seller’s

3-3 spouse, child, grandchild, parent, grandparent, brother or sister. For the

3-4 purposes of this section, the relation of parent and child includes adoptive

3-5 and illegitimate children and stepchildren.

3-6 3. For the purposes of this section, stockholders, bondholders, partners

3-7 or other persons holding an interest in a corporation or other entity are

3-8 regarded as having the "real or ultimate ownership" of the property of

3-9 [such] the corporation or other entity.

3-10 Sec. 6. NRS 374.070 is hereby amended to read as follows:

3-11 374.070 1. "Sales price" means the total amount for which tangible

3-12 property is sold, valued in money, whether paid in money or otherwise,

3-13 without any deduction on account of any of the following:

3-14 (a) The cost of the property sold.

3-15 (b) The cost of the materials used, labor or service cost, interest

3-16 charged, losses, or any other expenses.

3-17 (c) The cost of transportation of the property before its purchase.

3-18 2. The total amount for which property is sold includes all of the

3-19 following:

3-20 (a) Any services that are a part of the sale.

3-21 (b) Any amount for which credit is given to the purchaser by the seller.

3-22 3. "Sales price" does not include any of the following:

3-23 (a) Cash discounts allowed and taken on sales.

3-24 (b) The amount charged for property returned by customers when the

3-25 entire amount charged therefor is refunded either in cash or credit; but this

3-26 exclusion does not apply in any instance when the customer, in order to

3-27 obtain the refund, is required to purchase other property at a price greater

3-28 than the amount charged for the property that is returned.

3-29 (c) The amount charged for labor or services rendered in installing or

3-30 applying the property sold.

3-31 (d) The amount of any tax (not including, however, any manufacturers’

3-32 or importers’ excise tax) imposed by the United States upon or with respect

3-33 to retail sales, whether imposed upon the retailer or the consumer.

3-34 (e) The amount of any tax imposed by the State of Nevada upon or with

3-35 respect to the storage, use or other consumption of tangible personal

3-36 property purchased from any retailer.

3-37 (f) The amount of any allowance against the selling price given by a

3-38 retailer for the value of a used vehicle or motorboat which is taken in trade

3-39 on the purchase of another vehicle [.] or motorboat.

3-40 4. For the purpose of a sale of a vehicle or motorboat by a seller who

3-41 is not required to be registered with the department of taxation, the sales

3-42 price is the value established in the manner set forth in NRS 374.112 [.] or

3-43 section 3 of this act.

4-1 Sec. 7. NRS 374.340 is hereby amended to read as follows:

4-2 374.340 1. There are exempted from the computation of the amount

4-3 of the sales tax the gross receipts from any sale of tangible personal

4-4 property which is shipped to a point outside this state pursuant to the

4-5 contract of sale by delivery by the vendor to [such] that point by means of:

4-6 [1.] (a) Facilities operated by the vendor;

4-7 [2.] (b) Delivery by the vendor to a carrier for shipment to a consignee

4-8 at [such] that point; or

4-9 [3.] (c) Delivery by the vendor to a customs broker or forwarding agent

4-10 for shipment outside this state.

4-11 2. The department of taxation shall provide by regulation for the

4-12 issuance to a nonresident of this state who purchases a vehicle or

4-13 motorboat for registration, storage and use outside this state of a permit

4-14 to remove the vehicle or motorboat from the state without payment of the

4-15 tax imposed by this chapter, and for evidence to be required of the

4-16 purchaser.

4-17 Sec. 8. NRS 488.1797 is hereby amended to read as follows:

4-18 488.1797 1. Before the issuance of any certificate of ownership, the

4-19 division of wildlife of the state department of conservation and natural

4-20 resources shall obtain a statement in writing signed by the transferee or

4-21 transferor, showing:

4-22 (a) The date of the sale or other transfer of ownership of the motorboat.

4-23 (b) The name and address of the seller or transferor.

4-24 (c) The name and address of the buyer or transferee.

4-25 2. If the seller is not a retailer registered with the department of

4-26 taxation, the division of wildlife shall collect the taxes imposed by or

4-27 pursuant to Title 32 of NRS upon the sale or use of the motorboat, and

4-28 remit the amount collected to the department of taxation.

4-29 3. Upon receipt of the properly endorsed certificate of ownership, the

4-30 certificate of number , [and] the required fee and statement of information,

4-31 and the taxes if payable, the division of wildlife shall issue a new

4-32 certificate of ownership and a new certificate of number to the transferee.

4-33 The previous number may be reassigned to the transferee.

4-34 Sec. 9. This act becomes effective upon passage and approval for the

4-35 adoption of regulations by the department of taxation and the board of

4-36 wildlife commissioners, and on October 1, 1999, for all other purposes.

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