(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 639–Committee on Transportation

 

(On Behalf of Associated General Contractors—
Nevada Chapter)

 

March 26, 2001

____________

 

Referred to Committee on Transportation

 

SUMMARY—Revises provisions governing taxation, distribution and use of special fuel. (BDR 32‑1331)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxes; exempting from the tax on special fuel sales of special fuel for use in operating special mobile equipment; limiting the circumstances under which special fuel must be dyed before it is removed for distribution from a rack; authorizing a person to operate or maintain on certain highways special mobile equipment or farm equipment using dyed special fuel under certain circumstances; 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 366.110 is hereby amended to read as follows:

1-2    366.110  The department:

1-3    1.  Shall enforce the provisions of this chapter.

1-4    2.  May adopt and enforce regulations relating to the administration and

1-5  enforcement of this chapter.

1-6    3.  Shall, by regulation, define “incidentally operated or moved upon

1-7  a highway” for the purpose of NRS 366.085.

1-8    4.  May determine whether any particular vehicle not specified in NRS

1-9  366.085 is special mobile equipment.

1-10    [4.  Shall, on or before March 1, 2001, prepare and submit a written

1-11  report concerning the administration and enforcement, during the

1-12  immediately preceding biennium, of the provisions of this chapter as those

1-13  provisions relate to the use of special fuel, to the director of the legislature

1-14  counsel bureau for transmittal to the 71st session of the legislature.]

1-15    Sec. 2.  NRS 366.200 is hereby amended to read as follows:

1-16    366.200  1.  The sale or use of special fuel for any purpose other than

1-17  to propel a motor vehicle upon the public highways of Nevada is exempt

2-1  from the application of the tax imposed by NRS 366.190. The exemption

2-2  provided in this subsection applies only in those cases where the

2-3  purchasers or the users of special fuel establish to the satisfaction of the

2-4  department that the special fuel purchased or used was used for purposes

2-5  other than to propel a motor vehicle upon the public highways of Nevada.

2-6    2.  Sales made to the United States Government or any instrumentality

2-7  thereof are exempt from the tax imposed by this chapter.

2-8    3.  Sales made to any state, county, municipality, district or other

2-9  political subdivision thereof are exempt from the tax imposed by this

2-10  chapter.

2-11    4.  Sales made to any person to be used to propel a motor vehicle which

2-12  is dedicated for exclusive use as part of a system which:

2-13    (a) Operates motor vehicles for public transportation in an urban area;

2-14    (b) Transports persons who pay the established fare; and

2-15    (c) Uses public money to operate the system or acquire new

2-16  equipment,

2-17  are [exempted] exempt from the tax imposed by this chapter.

2-18    5.  Sales made to any person for use in operating special mobile

2-19  equipment are exempt from the tax imposed by this chapter.

2-20    Sec. 3.  NRS 366.203 is hereby amended to read as follows:

2-21    366.203  1.  Special fuel, other than compressed natural gas, liquefied

2-22  petroleum gas or kerosene, which is exempt from the tax pursuant to

2-23  subsection 3 or 4 of NRS 366.200 must be dyed before it is removed for

2-24  distribution from a rack. The dye added to the exempt special fuel must be

2-25  of the color and concentration required by the regulations adopted by the

2-26  Secretary of the Treasury pursuant to 26 U.S.C. § 4082.

2-27    2.  Except as otherwise provided in [subsection 3,] subsections 3 and 4,

2-28  a person shall not operate or maintain on any highway in this state a motor

2-29  vehicle which contains in the fuel tank of that vehicle special fuel which

2-30  has been dyed.

2-31    3.  A person who, pursuant to subsection 2, 3 or 4 of NRS 366.200 is

2-32  exempt from the tax imposed by this chapter, may operate or maintain a

2-33  motor vehicle on a highway in this state which contains in the fuel tank of

2-34  that vehicle special fuel which has been dyed.

2-35    4.  A person may operate or maintain on a highway in this state any

2-36  special mobile equipment or farm equipment that contains in the fuel

2-37  tank of the special mobile equipment or farm equipment special fuel

2-38  which has been dyed. As used in this subsection:

2-39    (a) “Farm equipment” means any self-propelled machinery or motor

2-40  vehicle that is designed solely for tilling soil or for cultivating, harvesting

2-41  or transporting crops or other agricultural products from a field or other

2-42  area owned or leased by the operator of the farm equipment and in which

2-43  the crops or agricultural products are grown, to a field, yard, silo, cellar,

2-44  shed or other facility which is:

2-45      (1) Owned or leased by the operator of the farm equipment; and

2-46      (2) Used to store or process the crops or agricultural products.

2-47  The term includes a tractor, baler or swather or any implement used to

2-48  retrieve hay.

3-1    (b) “Highway” does not include a controlled-access highway as

3-2  defined in NRS 484.041.

3-3    5.  There is a rebuttable presumption that all special fuel which has not

3-4  been dyed and which is sold or distributed in this state is for the purpose of

3-5  propelling a motor vehicle.

3-6    Sec. 4.  This act becomes effective on July 1, 2001.

 

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