requires two-thirds majority vote (§§ 4, 9)
A.B. 651
Assembly Bill No. 651–Committee on Taxation
March 26, 2001
____________
Referred to Committee on Taxation
SUMMARY—Revises provisions relating to motorboats. (BDR 32‑1490)
FISCAL NOTE: Effect on Local Government: Yes.
~
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 motorboats; providing for the imposition of certain taxes on certain sales 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; revising the provisions governing the administration of the exemption from certain taxes for the sale of tangible personal property to be shipped outside this state to include the sale of a motorboat to a nonresident under certain circumstances; requiring the department of motor vehicles and public safety to issue a special permit for the movement of a motorboat under certain circumstances; exempting a motorboat that has been documented pursuant to federal law from the requirement of obtaining a title pursuant to the provisions governing watercraft; 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 372.7263 is hereby amended to read as follows:
1-2 372.7263 In administering the provisions of NRS 372.335, the
1-3 department shall apply the exemption for the sale of tangible personal
1-4 property delivered by the vendor to a forwarding agent for shipment out of
1-5 state to include the sale of a vehicle or motorboat to a nonresident to whom
1-6 a special movement permit has been issued by the department of motor
1-7 vehicles and public safety pursuant to subsection 1 or 2 of NRS 482.3955.
1-8 Sec. 2. Chapter 374 of NRS is hereby amended by adding thereto the
1-9 provisions set forth as sections 3 and 4 of this act.
1-10 Sec. 3. “Motorboat” has the meaning ascribed to it in NRS 488.035.
1-11 Sec. 4. 1. In computing the tax on the sale of a motorboat by a
1-12 seller who is not required to be registered with the department of
1-13 taxation, the division shall, if an authorized appraisal is submitted:
1-14 (a) Require the submission of a notarized copy of the bill of sale, or a
1-15 copy of the bill of sale that is witnessed by an employee of the division for
1-16 the particular motorboat; and
2-1 (b) Use as the sales price of the motorboat 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 2. The division shall prepare and make available a form for an
2-7 authorized appraisal.
2-8 3. The division shall retain a copy of the appraisal and bill of sale
2-9 considered pursuant to subsection 1 with its record of the collection of
2-10 the tax.
2-11 4. A fee of not more than $10 may be charged and collected for each
2-12 authorized appraisal made.
2-13 5. The board of wildlife commissioners shall adopt by regulation an
2-14 appropriate schedule of depreciation for motorboats.
2-15 6. 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 this state, excluding
2-21 options and extras, as of the time the particular model of motorboat is
2-22 first offered for sale in this state;
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 the provisions of paragraph (a) or (b) do not apply, its estimate
2-27 from any available information.
2-28 7. As used in this section:
2-29 (a) “Authorized appraisal” means an appraisal of the value of a
2-30 motorboat that:
2-31 (1) Is determined by the lowest value of comparable motorboats as
2-32 estimated in the most recent edition of the National Automobile Dealers
2-33 Association Consumer Marine Appraisal Guide; or
2-34 (2) If the value of the motorboat is not set forth in the National
2-35 Automobile Dealers Association Consumer Marine Appraisal Guide, is
2-36 made by a dealer or manufacturer who has been issued a dealer’s
2-37 certificate of number by the division.
2-38 (b) “Division” means the division of wildlife of the state department of
2-39 conservation and natural resources.
2-40 Sec. 5. NRS 374.020 is hereby amended to read as follows:
2-41 374.020 Except where the context otherwise requires, the definitions
2-42 given in NRS 374.025 to 374.107, inclusive, and section 3 of this act
2-43 govern the construction of this chapter.
2-44 Sec. 6. NRS 374.040 is hereby amended to read as follows:
2-45 374.040 1. “Occasional sale,” except as otherwise provided in
2-46 subsection 2, includes:
2-47 (a) A sale of property not held or used by a seller in the course of an
2-48 activity for which he is required to hold a seller’s permit, [provided such] if
3-1 the sale is not one of a series of sales sufficient in number, scope and
3-2 character to constitute an activity requiring the holding of a seller’s permit.
3-3 (b) Any transfer of all or substantially all the property held or used by a
3-4 person in the course of such an activity when after [such] the transfer the
3-5 real or ultimate ownership of [such] the property is substantially similar to
3-6 that which existed before [such] the transfer.
3-7 2. The term does not include the sale of a vehicle or motorboat other
3-8 than the sale or transfer of a used vehicle or motorboat to the seller’s
3-9 spouse, child, grandchild, parent, grandparent, brother or sister. For the
3-10 purposes of this section, the relation of parent and child includes adoptive
3-11 and illegitimate children and stepchildren.
3-12 3. For the purposes of this section, stockholders, bondholders, partners
3-13 or other persons holding an interest in a corporation or other entity are
3-14 regarded as having the “real or ultimate ownership” of the property of
3-15 [such] the corporation or other entity.
3-16 Sec. 7. NRS 374.070 is hereby amended to read as follows:
3-17 374.070 1. “Sales price” means the total amount for which tangible
3-18 property is sold, valued in money, whether paid in money or otherwise,
3-19 without any deduction on account of any of the following:
3-20 (a) The cost of the property sold.
3-21 (b) The cost of the materials used, labor or service cost, interest
3-22 charged, losses, or any other expenses.
3-23 (c) The cost of transportation of the property before its purchase.
3-24 2. The total amount for which property is sold includes all of the
3-25 following:
3-26 (a) Any services that are a part of the sale.
3-27 (b) Any amount for which credit is given to the purchaser by the seller.
3-28 3. “Sales price” does not include any of the following:
3-29 (a) Cash discounts allowed and taken on sales.
3-30 (b) The amount charged for property returned by customers when the
3-31 entire amount charged therefor is refunded [either] in cash or credit; but
3-32 this exclusion does not apply in any instance when the customer, in order
3-33 to obtain the refund, is required to purchase other property at a price
3-34 greater than the amount charged for the property that is returned.
3-35 (c) The amount charged for labor or services rendered in installing or
3-36 applying the property sold.
3-37 (d) The amount of any tax , [(]not including[, however,] any
3-38 manufacturers’ or importers’ excise tax , [)] imposed by the United States
3-39 upon or with respect to retail sales, whether imposed upon the retailer or
3-40 the consumer.
3-41 (e) The amount of any tax imposed by the State of Nevada upon or with
3-42 respect to the storage, use or other consumption of tangible personal
3-43 property purchased from any retailer.
3-44 (f) The amount of any allowance against the selling price given by a
3-45 retailer for the value of a used vehicle or motorboat which is taken in trade
3-46 on the purchase of another vehicle[.] or motorboat.
3-47 4. For the purpose of a sale of a vehicle or motorboat by a seller who
3-48 is not required to be registered with the department of taxation, the sales
4-1 price is the value established in the manner set forth in NRS 374.112[.] or
4-2 section 4 of this act.
4-3 Sec. 8. NRS 374.7273 is hereby amended to read as follows:
4-4 374.7273 In administering the provisions of NRS 374.340, the
4-5 department shall apply the exemption for the sale of tangible personal
4-6 property delivered by the vendor to a forwarding agent for shipment out of
4-7 state to include the sale of a vehicle or motorboat to a nonresident to whom
4-8 a special movement permit has been issued by the department of motor
4-9 vehicles and public safety pursuant to subsection 1 or 2 of NRS 482.3955.
4-10 Sec. 9. NRS 482.3955 is hereby amended to read as follows:
4-11 482.3955 1. [The] Except as otherwise provided in subsection 2, the
4-12 department shall issue to any dealer, distributor, rebuilder or other person,
4-13 upon request, and upon payment of a fee of $8.25, a special permit, in a
4-14 form to be determined by the department, for the movement of any vehicle
4-15 or motorboat to sell outside the State of Nevada, or for the movement
4-16 outside [the] this state of any vehicle or motorboat purchased by a
4-17 nonresident. The permit must be affixed to the vehicle or motorboat to be
4-18 so moved in a manner and position to be determined by the department,
4-19 and expires 15 days after its issuance.
4-20 2. The department shall, upon request, and upon payment of a fee
4-21 not to exceed $15, issue a single special permit pursuant to subsection 1
4-22 for the movement of a trailer that is carrying a motorboat.
4-23 3. The department may issue a permit to a resident of this state who
4-24 desires to move an unregistered vehicle within the state upon the payment
4-25 of a fee of $8.25. The permit is valid for 24 hours.
4-26 [3.] 4. The department shall, upon the request of a charitable
4-27 organization which intends to sell a vehicle which has been donated to the
4-28 organization, issue to the organization a permit for the operation of the
4-29 vehicle until the vehicle is sold by the organization. The department shall
4-30 not charge a fee for the issuance of the permit.
4-31 5. As used in this section, “motorboat” has the meaning ascribed to it
4-32 in NRS 488.035.
4-33 Sec. 10. NRS 485.187 is hereby amended to read as follows:
4-34 485.187 1. Except as otherwise provided in subsection 5, the owner
4-35 of a motor vehicle shall not:
4-36 (a) Operate the motor vehicle, if it is registered or required to be
4-37 registered in this state, without having insurance as required by NRS
4-38 485.185.
4-39 (b) Operate or knowingly permit the operation of the motor vehicle
4-40 without having evidence of insurance of the operator or the vehicle in the
4-41 vehicle.
4-42 (c) Fail or refuse to surrender, upon demand, to a peace officer or to an
4-43 authorized representative of the department the evidence of insurance.
4-44 (d) Knowingly permit the operation of the motor vehicle in violation of
4-45 subsection 3 of NRS 485.186.
4-46 2. A person shall not operate the motor vehicle of another person
4-47 unless:
4-48 (a) He first ensures that the required evidence of insurance is present in
4-49 the motor vehicle; or
5-1 (b) He has his own evidence of insurance which covers him as the
5-2 operator of the motor vehicle.
5-3 3. Except as otherwise provided in subsection 4, any person who
5-4 violates subsection 1 or 2 is guilty of a misdemeanor. Except as otherwise
5-5 provided in this subsection, in addition to any other penalty, a person
5-6 sentenced pursuant to this subsection shall be punished by a fine of not less
5-7 than $600 nor more than $1,000 for each violation. The fine must be
5-8 reduced to $100 for the first violation if the person obtains a motor vehicle
5-9 liability policy by the time of sentencing, unless:
5-10 (a) The person has registered the vehicle as part of a fleet of vehicles
5-11 pursuant to subsection 5 of NRS 482.215; or
5-12 (b) The person has been issued a certificate of self-insurance pursuant to
5-13 NRS 485.380.
5-14 4. A court:
5-15 (a) Shall not find a person guilty or fine a person for a violation of
5-16 paragraph (a), (b) or (c) of subsection 1 or for a violation of subsection 2 if
5-17 he presents evidence to the court that the insurance required by NRS
5-18 485.185 was in effect at the time demand was made for it.
5-19 (b) Except as otherwise provided in paragraph (a), may impose a fine of
5-20 not more than $1,000 for a violation of paragraph (a), (b) or (c) of
5-21 subsection 1, and suspend the balance of the fine on the condition that the
5-22 person presents proof to the court each month for 12 months that the
5-23 insurance required by NRS 485.185 is currently in effect.
5-24 5. The provisions of paragraphs (b) and (c) of subsection 1 do not
5-25 apply if the motor vehicle in question displays a valid permit issued by the
5-26 department pursuant to subsection 1 or [2] 3 of NRS 482.3955, or NRS
5-27 482.396, 482.3965, 482.423 or 482.424 authorizing the movement or
5-28 operation of that vehicle within the state for a limited time.
5-29 Sec. 11. NRS 488.085 is hereby amended to read as follows:
5-30 488.085 The owner of any motorboat already covered by a number in
5-31 [full force and] effect which [has been] was awarded to it pursuant to [then
5-32 operative federal law or] a federally approved numbering system of another
5-33 state shall record the number [prior to] before operating the motorboat on
5-34 the waters of this state in excess of the 90‑day reciprocity period provided
5-35 for in NRS 488.175. [Such recordation shall] The recordation must be in
5-36 the manner and pursuant to the procedure required for the award of a
5-37 number under NRS 488.075, but no additional or substitute number [shall]
5-38 may be issued.
5-39 Sec. 12. NRS 488.175 is hereby amended to read as follows:
5-40 488.175 1. Except as otherwise provided in subsection 2, a
5-41 motorboat need not be numbered pursuant to the provisions of this chapter
5-42 if it is:
5-43 (a) Already covered by a number in effect which [has been] was
5-44 awarded or issued to it pursuant to [federal law or] a federally approved
5-45 numbering system of another state if the boat has not been on the waters of
5-46 this state for a period in excess of 90 consecutive days.
5-47 (b) A motorboat from a country other than the United States temporarily
5-48 using the waters of this state.
6-1 (c) A public vessel of the United States, a state or a political subdivision
6-2 of a state.
6-3 (d) A ship’s lifeboat.
6-4 (e) A motorboat belonging to a class of boats which has been exempted
6-5 from numbering by the division of wildlife of the state department of
6-6 conservation and natural resources after the division has found:
6-7 (1) That the numbering of motorboats of that class will not materially
6-8 aid in their identification; and
6-9 (2) If an agency of the Federal Government has a numbering system
6-10 applicable to the class of motorboats to which the motorboat in question
6-11 belongs, that the motorboat would also be exempt from numbering if it
6-12 were subject to the federal law.
6-13 2. The division of wildlife may, by regulation, provide for the issuance
6-14 of exempt numbers for motorboats not required to be registered under the
6-15 provisions of this chapter.
6-16 3. A motorboat need not be titled pursuant to the provisions of this
6-17 chapter, if it [is] :
6-18 (a) Is already covered by a certificate of ownership which [has been]
6-19 was awarded or issued to it pursuant to the title system of another state[.] ;
6-20 or
6-21 (b) Has been documented pursuant to chapter 121 of Title 46 of
6-22 U.S.C.
6-23 Sec. 13. NRS 488.1797 is hereby amended to read as follows:
6-24 488.1797 1. Before the issuance of any certificate of ownership, the
6-25 division of wildlife of the state department of conservation and natural
6-26 resources shall obtain a statement in writing signed by the transferee or
6-27 transferor, showing:
6-28 (a) The date of the sale or other transfer of ownership of the motorboat.
6-29 (b) The name and address of the seller or transferor.
6-30 (c) The name and address of the buyer or transferee.
6-31 2. If the seller is not a retailer registered with the department of
6-32 taxation, the division of wildlife shall collect the taxes imposed by or
6-33 pursuant to Title 32 of NRS upon the sale or use of the motorboat. The
6-34 division of wildlife may retain 2 percent of the amount collected to cover
6-35 its administrative costs of collecting the taxes, and shall remit the
6-36 remaining amount collected to the department of taxation.
6-37 3. Upon receipt of the properly endorsed certificate of ownership, the
6-38 certificate of number , [and] the required fee and statement of information,
6-39 and the taxes if payable, the division of wildlife shall issue a new
6-40 certificate of ownership and a new certificate of number to the transferee.
6-41 The previous number may be reassigned to the transferee.
6-42 Sec. 14. 1. This section and sections 2, 11 and 12 of this act become
6-43 effective upon passage and approval.
6-44 2. Section 4 of this act becomes effective upon passage and approval
6-45 for the purpose of adopting regulations and on July 1, 2002, for all other
6-46 purposes.
6-47 3. Sections 1, 3, 5 to 10, inclusive, and 13 of this act become effective
6-48 on July 1, 2002.
6-49 H