Senate Bill No. 88–Senator Neal

February 3, 1999

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Referred to Committee on Taxation

 

SUMMARY—Increases state license fee on gaming. (BDR 41-76)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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

 

AN ACT relating to gaming; increasing the state license fee charged to a gaming licensee based upon all the gross revenue of the licensee; and providing other matters properly relating thereto.

 

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

1-1 Section 1. NRS 463.370 is hereby amended to read as follows:

1-2 463.370 1. Except as otherwise provided in NRS 463.373, the

1-3 commission shall charge and collect from each licensee a license fee based

1-4 upon all the gross revenue of the licensee as follows:

1-5 Three percent of all the gross revenue of the licensee which does not

1-6 exceed $50,000 per calendar month;

1-7 Four percent of all the gross revenue of the licensee which exceeds

1-8 $50,000 per calendar month and does not exceed $134,000 per

1-9 calendar month; [and]

1-10 Six and one-quarter percent of all the gross revenue of the licensee

1-11 which exceeds $134,000 per calendar month [.] and does not

1-12 exceed $1,000,000 per calendar month; and

1-13 Eight and one-quarter percent of all the gross revenue of the

1-14 licensee which exceeds $1,000,000 per calendar month.

1-15 2. Unless the licensee has been operating for less than a full calendar

1-16 month, the commission shall charge and collect the fee prescribed in subsection 1, based upon the 1-17 gross revenue for the preceding calendar

1-18 month, on or before the 24th day of the following month. Except for the fee

based on the first full month of operation, the fee is an estimated payment

2-1 of the license fee for the third month following the month whose gross

revenue is used as its basis.

2-2 3. When a licensee has been operating for less than a full calendar

2-3 month, the commission shall charge and collect the fee prescribed in

subsection 1, based on the gross revenue received during that month, on or

2-4 before the 24th day of the following calendar month of operation. After the

first full calendar month of operation, the commission shall charge and

2-5 collect the fee based on the gross revenue received during that month, on or

2-6 before the 24th day of the following calendar month. The payment of the

fee due for the first full calendar month of operation must be accompanied

2-7 by the payment of a fee equal to three times the fee for the first full

calendar month. This additional amount is an estimated payment of the

2-8 license fees for the next 3 calendar months. Thereafter, each license fee

2-9 must be paid in the manner described in subsection 2. Any deposit held by

the commission on July 1, 1969, must be treated as an advance estimated

2-10 payment.

4. All revenue received from any game or gaming device which is

2-11 operated on the premises of a licensee, regardless of whether any portion of

2-12 the revenue is shared with any other person, must be attributed to the

licensee for the purposes of this section and counted as part of the gross

2-13 revenue of the licensee. Any other person who is authorized to receive a

share of the revenue is liable to the licensee for his proportionate share of

2-14 the license fees paid pursuant to this section.

2-15 5. Any person required to pay a fee pursuant to this section shall file

with the commission, on or before the 24th day of each calendar month, a

2-16 report showing the amount of all gross revenue received during the

preceding calendar month. Each report must be accompanied by:

2-17 (a) The fee due based on the revenue of the month covered by the

2-18 report; and

(b) An adjustment for the difference between the estimated fee

2-19 previously paid for the month covered by the report, if any, and the fee due

for the actual gross revenue earned in that month. If the adjustment is less

2-20 than zero, a credit must be applied to the estimated fee due with that report.

2-21 6. If the amount of license fees required to be reported and paid

pursuant to this section is later determined to be greater or less than the

2-22 amount actually reported and paid, the commission shall:

(a) Charge and collect the additional license fees determined to be due,

2-23 with interest thereon until paid; or

(b) Refund any overpayment to the person entitled thereto pursuant to

3-1 this chapter, with interest thereon.

Interest must be computed at the rate prescribed in NRS 17.130 from the

3-2 first day of the first month following either the due date of the additional

3-3 license fees or the date of overpayment until paid.

7. Failure to pay the fees provided for in this section shall be deemed a

3-4 surrender of the license at the expiration of the period for which the

estimated payment of fees has been made, as established in subsection 2.

3-5 8. Except as otherwise provided in NRS 463.386, the amount of the fee

3-6 prescribed in subsection 1 must not be prorated.

9. Except as otherwise provided in NRS 463.386, if a licensee ceases

3-7 operation, the commission shall:

(a) Charge and collect the additional license fees determined to be due

3-8 with interest; or

3-9 (b) Refund any overpayment, with interest thereon, to the licensee,

based upon the gross revenue of the licensee during the last 3 months

3-10 immediately preceding the cessation of operation, or portions of those last

3 months.

3-11 10. If in any month, the amount of gross revenue is less than zero, the

3-12 licensee may offset the loss against gross revenue in succeeding months

until the loss has been fully offset.

3-13 11. If in any month, the amount of the license fee due is less than zero,

the licensee is entitled to receive a credit against any license fees due in

3-14 succeeding months until the credit has been fully offset.

3-15 Sec. 2. This act becomes effective on July 1, 1999.

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