2001 REGULAR SESSION (71st)                                                                             A SB376 123

Amendment No. 123

 

 

 

     Amend the bill as a whole by deleting sec. 6 and adding:

     “Sec. 6. (Deleted by amendment.)”.

     Amend the bill as a whole by deleting sec. 12, renumbering sections 10 and 11 as sections 11 and 12 and adding new sections designated sections 10 and 10.5, following sec. 9, to read as follows:

     “Sec. 10. NRS 361.068 is hereby amended to read as follows:

FIRST PARALLEL SECTION

     361.068   1.  The following personal property is exempt from taxation:

     (a) Personal property held for sale by a merchant;

     (b) Personal property held for sale by a manufacturer;

     (c) Raw materials and components held by a manufacturer for manufacture into products, and supplies to be consumed in the process of manufacture;

     (d) Tangible personal property purchased by a business which will be consumed during the operation of the business;

     (e) Livestock;

     (f) Colonies of bees;

     (g) Pipe and other agricultural equipment used to convey water for the irrigation of legal crops;

     (h) All boats;

     (i) Slide-in campers and camper shells;

     (j) Except as otherwise provided in NRS 361.186, fine art for public display; [and]

     (k) Computers and related equipment donated for use in schools in this state [.] ; and

     (l) All personal property that is:

          (1) Owned by a person who is not a resident of this state; and

          (2) Located in this state solely for the purposes of a display, exhibition, convention, carnival, fair or circus that is transient in nature.

     2.  The Nevada tax commission may exempt from taxation that personal property for which the annual taxes would be less than the cost of collecting those taxes. If such an exemption is provided, the Nevada tax commission shall annually determine the average cost of collecting property taxes in this state which must be used in determining the applicability of the exemption.

     3.  A person claiming the exemption provided for in paragraph (j) of subsection 1 shall:

     (a) On or before June 15 for the next ensuing fiscal year, file with the county assessor an affidavit declaring that the fine art will, during that ensuing fiscal year, meet all the criteria set forth in paragraph (b) of subsection 5; and

     (b) During any fiscal year in which he claims the exemption, make available for educational purposes and not for resale, upon written request and without charge to any public school as defined in NRS 385.007, private school as defined in NRS 394.103 and parent of a child who receives instruction in a home pursuant to NRS 392.070, one copy of a poster depicting the fine art that the facility has on public display if such a poster is available for purchase by the public at the time of the request.

     4.  To qualify for the exemption provided in paragraph (k) of subsection 1, a taxpayer must donate the property through a foundation or organization, not for profit, that accepts such property for use in schools in this state. The foundation or organization shall issue a voucher identifying each item of property donated. To obtain the benefit of the exemption, the taxpayer must apply to the county assessor and tender the voucher. The county assessor shall compute the assessed value of the property for the year in which the donation was made using the original cost and the year of acquisition. The county assessor shall allow a credit of that amount against the personal property assessment for the year following the donation.

     5.  As used in this section:

     (a) “Boat” includes any vessel or other watercraft, other than a seaplane, used or capable of being used as a means of transportation on the water.

     (b) “Fine art for public display”:

          (1) Except as otherwise provided in subparagraph (2), means a work of art which:

              (I) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;

              (II) Was purchased in an arm’s length transaction for $25,000 or more, or has an appraised value of $25,000 or more;

              (III) Is on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of each year for which the exemption is claimed or, if the facility displaying the fine art disposes of it before the end of that year, during at least two-thirds of the full weeks during which the facility had possession of it, or if the gallery, museum or other building or area in which the fine art will be displayed will not be opened until after the beginning of the fiscal year for which the exemption is claimed, these display requirements must instead be met for the first full fiscal year after the date of opening, and the date of opening must not be later than 2 years after the purchase of the fine art being displayed; and

              (IV) Is on display in a facility that is available for group tours by pupils or students for at least 5 hours on at least 60 days of each full year for which the exemption is claimed, during which the facility in which it is displayed is open, by prior appointment and at reasonable times, without charge; and

          (2) Does not include:

              (I) A work of fine art that is a fixture or an improvement to real property;

              (II) A work of fine art that constitutes a copy of an original work of fine art, unless the work is a lithograph that is a limited edition and that is signed and numbered by the artist;

              (III) Products of filmmaking or photography, including, without limitation, motion pictures;

              (IV) Literary works;

              (V) Property used in the performing arts, including, without limitation, scenery or props for a stage; or

              (VI) Property that was created for a functional use other than, or in addition to, its aesthetic qualities, including, without limitation, a classic or custom-built automobile or boat, a sign that advertises a business, and custom or antique furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.

     (c) “Personal property held for sale by a merchant” includes property that:

          (1) Meets the requirements of sub-subparagraphs (I) and (II) of subparagraph (1) of paragraph (b);

          (2) Is made available for sale within 2 years after it is acquired; and

          (3) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

     (d) “Public display” means the display of a work of fine art where members of the public have access to the work of fine art for viewing during publicly advertised hours. The term does not include the display of a work of fine art in an area where the public does not generally have access, including, without limitation, a private office, hallway or meeting room of a business, a room of a business used for private lodging and a private residence.

     (e) “Pupil” means a person who:

          (1) Is enrolled for the current academic year in a public school as defined in NRS 385.007 or a private school as defined in NRS 394.103; or

          (2) Receives instruction in a home and is excused from compulsory attendance pursuant to NRS 392.070.

     (f) “Student” means a person who is enrolled for the current academic year in:

          (1) A community college or university; or

          (2) A licensed postsecondary educational institution as defined in NRS 394.099 and a course concerning fine art.

SECOND PARALLEL SECTION

     Sec. 10.5. NRS 361.068 is hereby amended to read as follows:

     361.068  1.  The following personal property is exempt from taxation:

     (a) Personal property held for sale by a merchant;

     (b) Personal property held for sale by a manufacturer;

     (c) Raw materials and components held by a manufacturer for manufacture into products, and supplies to be consumed in the process of manufacture;

     (d) Tangible personal property purchased by a business which will be consumed during the operation of the business;

     (e) Livestock;

     (f) Colonies of bees;

     (g) Pipe and other agricultural equipment used to convey water for the irrigation of legal crops;

     (h) All boats;

     (i) Slide-in campers and camper shells; [and]

     (j) Except as otherwise provided in NRS 361.186, fine art for public display [.] ; and

     (k) All personal property that is:

          (1) Owned by a person who is not a resident of this state; and

          (2) Located in this state solely for the purposes of a display, exhibition, convention, carnival, fair or circus that is transient in nature.

     2.  The Nevada tax commission may exempt from taxation that personal property for which the annual taxes would be less than the cost of collecting those taxes. If such an exemption is provided, the Nevada tax commission shall annually determine the average cost of collecting property taxes in this state which must be used in determining the applicability of the exemption.

     3.  A person claiming the exemption provided for in paragraph (j) of subsection 1 shall:

     (a) On or before June 15 for the next ensuing fiscal year, file with the county assessor an affidavit declaring that the fine art will, during that ensuing fiscal year, meet all the criteria set forth in paragraph (b) of subsection 4; and

     (b) During any fiscal year in which he claims the exemption, make available for educational purposes and not for resale, upon written request and without charge to any public school as defined in NRS 385.007, private school as defined in NRS 394.103 and parent of a child who receives instruction in a home pursuant to NRS 392.070, one copy of a poster depicting the fine art that the facility has on public display if such a poster is available for purchase by the public at the time of the request.

     4.  As used in this section:

     (a) “Boat” includes any vessel or other watercraft, other than a seaplane, used or capable of being used as a means of transportation on the water.

     (b) “Fine art for public display”:

          (1) Except as otherwise provided in subparagraph (2), means a work of art which:

              (I) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;

              (II) Was purchased in an arm’s length transaction for $25,000 or more, or has an appraised value of $25,000 or more;

              (III) Is on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of each year for which the exemption is claimed or, if the facility displaying the fine art disposes of it before the end of that year, during at least two-thirds of the full weeks during which the facility had possession of it, or if the gallery, museum or other building or area in which the fine art will be displayed will not be opened until after the beginning of the fiscal year for which the exemption is claimed, these display requirements must be met for the first full fiscal year after the date of opening, and the date of opening must not be later than 2 years after the purchase of the fine art being displayed; and

              (IV) Is on display in a facility that is available for group tours by pupils or students for at least 5 hours on at least 60 days of each full year for which the exemption is claimed, during which the facility in which it is displayed is open, by prior appointment and at reasonable times, without charge; and

          (2) Does not include:

              (I) A work of fine art that is a fixture or an improvement to real property;

              (II) A work of fine art that constitutes a copy of an original work of fine art, unless the work is a lithograph that is a limited edition and that is signed and numbered by the artist;

              (III) Products of filmmaking or photography, including, without limitation, motion pictures;

              (IV) Literary works;

              (V) Property used in the performing arts, including, without limitation, scenery or props for a stage; or

              (VI) Property that was created for a functional use other than, or in addition to, its aesthetic qualities, including, without limitation, a classic or custom-built automobile or boat, a sign that advertises a business, and custom or antique furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.

     (c) “Personal property held for sale by a merchant” includes property that:

          (1) Meets the requirements of sub-subparagraphs (I) and (II) of subparagraph (1) of paragraph (b);

          (2) Is made available for sale within 2 years after it is acquired; and

          (3) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

     (d) “Public display” means the display of a work of fine art where members of the public have access to the work of fine art for viewing during publicly advertised hours. The term does not include the display of a work of fine art in an area where the public does not generally have access, including, without limitation, a private office, hallway or meeting room of a business, a room of a business used for private lodging and a private residence.

     (e) “Pupil” means a person who:

          (1) Is enrolled for the current academic year in a public school as defined in NRS 385.007 or a private school as defined in NRS 394.103; or

          (2) Receives instruction in a home and is excused from compulsory attendance pursuant to NRS 392.070.

     (f) “Student” means a person who is enrolled for the current academic year in:

          (1) A community college or university; or

          (2) A licensed postsecondary educational institution as defined in NRS 394.099 and a course concerning fine art.”.

     Amend sec. 13, page 7, line 29, by deleting “under” and inserting “pursuant to”.

     Amend sec. 13, page 7, by deleting line 31 and inserting:

“governmental services tax pursuant to chapter 371 of NRS.”.

     Amend the bill as a whole by deleting sec. 15 and adding:

     “Sec. 15. (Deleted by amendment.)”.

     Amend sec. 26, page 16, line 13, by deleting “4,” and inserting “5,”.

     Amend sec. 26, page 16, line 21, after “4.” by inserting:

“Except as otherwise provided in NRS 361.505, taxes assessed upon personal property may be paid in four approximately equal installments if:

     (a) The total personal property taxes assessed exceed $10,000;

     (b) Not later than July 31, the taxpayer returns to the county assessor the written statement of personal property required pursuant to NRS 361.265;

     (c) The taxpayer files with the county assessor, or county treasurer if the county treasurer has been designated to collect taxes, a written request to be billed in quarterly installments and includes with the request a copy of the written statement of personal property required pursuant to NRS 361.265; and

     (d) The business has been in existence for at least 3 years if the personal property assessed is the property of a business.

     5.”.

     Amend sec. 26, page 16, line 25, by deleting “5.” and inserting “6.”.

     Amend sec. 26, page 16, line 41, by deleting “6.” and inserting “7.”.

     Amend sec. 26, page 17, line 1, by deleting “7.” and inserting “8.”.

     Amend the bill as a whole by adding a new section designated sec. 31.5, following sec. 31, to read as follows:

     “Sec. 31.5. NRS 371.101 is hereby amended to read as follows:

     371.101  1.  Vehicles registered by [widows] surviving spouses and orphan children not to exceed the amount of $1,000 determined valuation, are exempt from taxation, but the exemption must not be allowed to anyone but actual bona fide residents of this state, and must be filed in but one county in this state to the same family.

     2.  For the purpose of this section, vehicles in which the [widow] surviving spouse or orphan child has any interest shall be deemed to belong entirely to that [widow] surviving spouse or orphan child.

     3.  The person claiming the exemption shall file with the department in the county where the exemption is claimed an affidavit declaring his residency and that the exemption has been claimed in no other county in this state for that year. The affidavit must be made before the county assessor or a notary public. After the filing of the original affidavit, the county assessor shall mail a form for renewal of the exemption to the person each year following a year in which the exemption was allowed for that person. The form must be designed to facilitate its return by mail by the person claiming the exemption.

     4.  A [widow] surviving spouse is not entitled to the exemption provided by this section in any fiscal year beginning after [her] any remarriage, even if the remarriage is later annulled.”.

     Amend sec. 45, page 28, lines 32 and 33, by deleting:

“committee for assessing livestock” and inserting:

“[committee for assessing livestock] state department of agriculture”.

     Amend sec. 46, page 28, lines 39 and 40, by deleting:

“committee for assessing livestock” and inserting:

“[committee for assessing livestock] state department of agriculture”.

     Amend sec. 47, page 29, by deleting lines 2 and 3 and inserting:

     “571.035  1.  Upon [receipt of the reports from the committee for assessing livestock] approval of the report of owners of livestock and sheep pursuant to NRS 575.180, the department shall fix the”.

     Amend the bill as a whole by adding a new section designated sec. 47.5, following sec. 47, to read as follows:

     “Sec. 47.5. Chapter 575 of NRS is hereby amended by adding thereto a new section to read as follows:

     1.  Except as otherwise provided in subsection 2, any person who fails to pay the tax levied by the department pursuant to NRS 571.035, within the time required, shall pay a penalty of not more than 10 percent of the amount of the tax that is owed, in addition to the tax, plus interest at the rate of 1.5 percent per month, or fraction of a month, from the date the tax was due until the date of payment.

     2.  The department may, for good cause shown, waive or reduce the payment of the interest or penalty, or both, that is required to be paid pursuant to subsection 1. The department shall, upon the request of any person, disclose:

     (a) The name of the person whose interest or penalty was waived or reduced; and

     (b) The amount so waived or the amount of the reduction.

     3.  All taxes levied by the department on livestock pursuant to NRS 571.035, and all penalties and interest accrued thereon, constitute a lien upon the livestock until paid.”.

     Amend sec. 48, page 29, lines 43 and 44, by deleting:

“committee for assessing livestock” and inserting:

“[committee for assessing livestock] state department of agriculture”.

     Amend the bill as a whole by deleting sec. 49 and adding a new section designated sec. 49, following sec. 48, to read as follows:

     “Sec. 49. NRS 575.080 is hereby amended to read as follows:

     575.080  As used in NRS 575.080 to 575.230, inclusive, and section 47.5 of this act, unless the context otherwise requires:

     1.  “Board” means the state board of sheep commissioners.

     2.  “Department” means the state department of agriculture.

     3.  “Livestock” means the animals subject to the taxes levied pursuant to NRS 571.035 and 575.070.

     4.  “Sheep” means the animals subject to the taxes levied pursuant to NRS 562.170 and 567.110.

     5.  “Tax” means any of the taxes levied pursuant to NRS 562.170, 567.110, 571.035 and 575.070.”.

     Amend sec. 51, page 31, line 6, by deleting “committee.” and inserting:

“[committee.] department.”.

     Amend the bill as a whole by deleting sec. 52 and adding:

     “Sec. 52. (Deleted by amendment.)”.

     Amend sec. 53, page 31, by deleting lines 17 and 18 and inserting:

“sheep and the report of owners of livestock and sheep , [from the county assessor or] the department [, the committee for assessing livestock] shall:”.

     Amend sec. 53, page 31, by deleting line 29 and inserting:

     “2.  The [committee for assessing livestock] department may verify the number of”.

     Amend sec. 53, page 31, by deleting line 32 and inserting:

     “3.  If the [committee for assessing livestock] department changes the listings on the”.

     Amend sec. 53, page 31, line 35, by deleting “committee” and inserting “[committee] department”.

     Amend sec. 53, page 31, by deleting line 38 and inserting:

“of the report made by the [committee for assessing livestock.] department.”.

     Amend the bill as a whole by adding new sections designated sections 53.3 and 53.7, following sec. 53, to read as follows:

     “Sec. 53.3. NRS 575.160 is hereby amended to read as follows:

     575.160  If the [committee for assessing livestock] department determines that the amount of tax to be collected from an owner of livestock or sheep is less than the cost of collecting the tax, it may exempt that owner from the tax.

     Sec. 53.7. NRS 575.170 is hereby amended to read as follows:

     575.170  1.  An owner of sheep or livestock who wishes to challenge the accuracy of the report as changed by the [committee for assessing livestock] department may, within 15 days after receiving notice of the change, file a statement with the [committee] department for assessing livestock for his county specifying the alleged inaccuracy.

     2.  Upon receipt of the statement under subsection 1, the [committee for assessing livestock] department shall review the allegations and may make any changes it considers necessary to make the report accurate and complete. An owner of sheep or livestock [,] or the board [, or the director of the department] may appeal from any decision of the [committee for assessing livestock] department to and in the manner prescribed by the state board of agriculture.”.

     Amend sec. 54, page 31, by deleting lines 40 through 49 and inserting:

     “575.180  1.  When the report of owners of livestock and sheep is approved by the [committee for assessing livestock] department as complete and accurate, the approval must be noted on the report. [The] A copy of the approved report must be [returned to the county assessor, or the department if it is administering the special tax, and a copy] sent to the board [, the department unless it is administering the special tax,] and the Nevada beef council.

     2.  If, as the result of a challenge of the accuracy of the report, any change is ordered in the report of owners of livestock and sheep after it has been approved by the [committee for assessing livestock,] department, each recipient of a copy of the report [or copy] must be notified of the change.”.

     Amend sec. 55, page 32, lines 6 and 7, by deleting:

“committee for assessing livestock.” and inserting:

“[committee for assessing livestock.] department.”.

     Amend sec. 60, page 32, line 46, by deleting “575.100 is” and inserting:

“575.090, 575.100 and 575.140 are”.

     Amend sec. 61, pages 32 and 33, by deleting lines 47 and 48 on page 32 and lines 1 and 2 on page 33, and inserting:

     “Sec. 61.  1.  This section and sections 1 to 10, inclusive, 11, 12, 14 to 25, inclusive, 27 to 44, inclusive, and 59 of this act become effective on July 1, 2001.

     2.  Sections 13 and 26 of this act become effective at 12:01 a.m. on July 1, 2001.

     3.  Section 10 of this act expires by limitation on June 30, 2003.

     4.  Section 10.5 of this act becomes effective at 12:02 a.m. on July 1, 2003.

     5.  Sections 45 to 58, inclusive, and 60 of this act become effective on July 1, 2004.”.

     Amend the text of repealed sections by adding the text of NRS 575.090 and 575.140.

     Amend the title of the bill by deleting the second line and inserting:

“certain property of nonresidents that is located in this state; repealing the provisions establishing the committee for assessing livestock; expanding”.