Senate Bill No. 238–Committee on Taxation
February 23, 2001
____________
Referred to Committee on Taxation
SUMMARY—Makes various changes relating to tax on transfer of real property. (BDR 32‑138)
FISCAL NOTE: Effect on Local Government: Yes.
CONTAINS UNFUNDED MANDATE (§§ 4, 5)
(Requested by Affected Local Government)
~
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 certain rights for taxpayers of the tax on the transfer of real property; establishing provisions relating to the collection and enforcement of the tax on the transfer of real property; eliminating certain exemptions from the tax on the transfer of real property; 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 375 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 38, inclusive, of this act.
1-3 Sec. 2. Section 3 of this act may be cited as the Taxpayers’ Bill of
1-4 Rights for Taxes on the Transfer of Real Property.
1-5 Sec. 3. 1. The legislature hereby declares that each taxpayer has
1-6 the right:
1-7 (a) To be treated by officers and employees of the county recorder
1-8 with courtesy, fairness, uniformity, consistency and common sense.
1-9 (b) To a prompt response from the county recorder to each
1-10 communication from the taxpayer.
1-11 (c) To provide the minimum documentation and other information as
1-12 may reasonably be required by the county recorder to carry out his
1-13 duties.
1-14 (d) To written explanations of common errors, oversights and
1-15 violations that taxpayers experience and instructions on how to avoid
1-16 such problems.
1-17 (e) To be notified, in writing, by the county recorder whenever an
1-18 officer, employee or agent of the county recorder determines that the
2-1 taxpayer is entitled to an exemption or has been taxed or assessed more
2-2 than is required pursuant to this chapter.
2-3 (f) To written instructions indicating how the taxpayer may petition
2-4 for a refund for overpayment of taxes, interest or penalties imposed
2-5 pursuant to this chapter.
2-6 (g) To recover an overpayment of taxes paid pursuant to this chapter
2-7 promptly upon the final determination of such an overpayment.
2-8 (h) To obtain specific advice from the county concerning taxes
2-9 imposed by the county pursuant to this chapter.
2-10 (i) In any meeting with the county, including an audit, conference,
2-11 interview or hearing:
2-12 (1) To an explanation by an officer, agent or employee of the
2-13 county that describes the procedures to be followed and the rights of the
2-14 taxpayer thereunder;
2-15 (2) To be represented by himself or anyone who is otherwise
2-16 authorized by law to represent him before the county;
2-17 (3) To make an audio recording using the taxpayer’s equipment
2-18 and at the taxpayer’s expense; and
2-19 (4) To receive a copy of any document or audio recording made by
2-20 or in the possession of the county relating to the determination or
2-21 collection of any tax for which the taxpayer is assessed pursuant to this
2-22 chapter, upon payment of the actual cost to the county of making the
2-23 copy.
2-24 (j) To a full explanation of the authority of the county to assess a tax
2-25 or to collect delinquent taxes pursuant to this chapter, including, without
2-26 limitation, the procedures and notices for review and appeal that are
2-27 required for the protection of the taxpayer. An explanation which meets
2-28 the requirements of this section must also be included with each notice to
2-29 a taxpayer that an audit will be conducted by the county.
2-30 (k) To the immediate release of any lien which the county has placed
2-31 on real or personal property for the nonpayment of any tax pursuant to
2-32 this chapter when:
2-33 (1) The tax is paid;
2-34 (2) The period of limitation for collecting the tax expires;
2-35 (3) The lien is the result of an error by the county;
2-36 (4) The county determines that the taxes, interest and penalties are
2-37 secured sufficiently by a lien on other property;
2-38 (5) The release or subordination of the lien will not jeopardize the
2-39 collection of the taxes, interest and penalties;
2-40 (6) The release of the lien will facilitate the collection of the taxes,
2-41 interest and penalties; or
2-42 (7) The county determines that the lien is creating an economic
2-43 hardship.
2-44 (l) To be free from harassment and intimidation by an officer, agent
2-45 or employee of the county for any reason.
2-46 2. The provisions of this chapter governing the administration and
2-47 collection of taxes by the county must not be construed in such a manner
2-48 as to interfere or conflict with the provisions of this section or any
2-49 applicable regulations.
3-1 3. The provisions of this section apply to the administration and
3-2 collection of taxes pursuant to this chapter.
3-3 Sec. 4. The county recorder shall cause:
3-4 1. To be prepared in simple nontechnical terms a pamphlet setting
3-5 forth the Taxpayers’ Bill of Rights for Taxes on the Transfer of Real
3-6 Property.
3-7 2. A copy of the pamphlet to be distributed:
3-8 (a) To each taxpayer upon request; and
3-9 (b) With each notice to a taxpayer that an audit will be conducted by
3-10 the county recorder.
3-11 Sec. 5. The county shall provide each taxpayer who it determines
3-12 may be liable for taxes pursuant to this chapter with:
3-13 1. Simplified written instructions concerning the rights and
3-14 responsibilities of the taxpayer, including the:
3-15 (a) Keeping of records sufficient for audit purposes;
3-16 (b) Procedures for paying taxes pursuant to this chapter; and
3-17 (c) Procedures for challenging any liability for taxes, penalties or
3-18 interest and for requesting refunds of erroneously assessed taxes,
3-19 including the steps for appealing a denial thereof.
3-20 2. Information concerning the most common errors made by
3-21 taxpayers in similar situations with regard to the collection, reporting
3-22 and payment of taxes pursuant to this chapter.
3-23 Sec. 6. The county shall provide a taxpayer with a response to any
3-24 written request submitted by the taxpayer that relates a tax imposed
3-25 pursuant to this chapter within 30 days after it receives the request.
3-26 Sec. 7. A taxpayer is entitled to receive on any overpayment of taxes
3-27 imposed pursuant to this chapter a refund together with interest at a rate
3-28 determined pursuant to NRS 17.130. No interest is allowed on a refund
3-29 of any penalties or interest paid by a taxpayer.
3-30 Sec. 8. In the adoption of regulations, policies of enforcement and
3-31 policies for auditing of taxpayers, with respect to all taxes and fees
3-32 administered pursuant to this chapter, the Nevada tax commission shall
3-33 apply the following principles:
3-34 1. Forms, instructions and regulations governing the computation of
3-35 the amount of tax due must be brief and easily understood.
3-36 2. In cases where another authority, such as the United States or this
3-37 state, also imposes a tax upon the same property or revenue, the
3-38 mechanism for collecting the tax imposed by the county must be as
3-39 nearly compatible with the collection of the other taxes as is feasible.
3-40 3. Unless a change is made necessary by statute or to preserve
3-41 compatibility with a tax imposed by another authority, the forms,
3-42 instructions and regulations must remain the same from year to year, to
3-43 make the taxpayer’s liability as predictable as is feasible.
3-44 4. Exemptions or waivers, where permitted by statute, must be
3-45 granted:
3-46 (a) Equitably among eligible taxpayers; and
3-47 (b) As sparingly as is consistent with the legislative intent, to retain
3-48 the broadest feasible base for the tax affected.
4-1 5. Audits and other procedures for enforcement must be applied as
4-2 uniformly as is feasible, not only as among persons subject to a
4-3 particular tax but also as among different taxes.
4-4 6. Collection of taxes due must be pursued in an equitable manner,
4-5 so that every taxpayer pays the full amount imposed by law.
4-6 Sec. 9. 1. The county recorder may audit all records related to the
4-7 collection and calculation of a tax imposed pursuant to this chapter. If
4-8 the county recorder deems it necessary to conduct an audit, the audit
4-9 must be completed within 3 years after the date the tax was originally
4-10 recorded.
4-11 2. The county recorder may issue subpoenas to require the
4-12 production of documents necessary for him to determine the amount of
4-13 tax due pursuant to this chapter or to determine whether a person
4-14 qualifies for an exemption from taxes pursuant to this chapter. The
4-15 county recorder may have the subpoenas served, and upon application of
4-16 the district attorney, to any court of competent jurisdiction, enforced in
4-17 the manner provided by law for the service and enforcement of
4-18 subpoenas in a civil action.
4-19 Sec. 10. 1. If an audit is conducted by the county recorder
4-20 pursuant to the provisions of this chapter, the date on which the audit
4-21 will be completed must be included in the notice to the taxpayer that the
4-22 audit will be conducted.
4-23 2. The date on which the audit will be completed may be extended by
4-24 the county recorder if the county recorder gives prior written notice of
4-25 the extension to the taxpayer. The notice must include an explanation of
4-26 the reason or reasons that the extension is required.
4-27 3. If, after the audit, the county recorder determines that delinquent
4-28 taxes are due, interest and penalties may not be imposed for the period of
4-29 the extension if the taxpayer did not request the extension or was not
4-30 otherwise the cause of the extension.
4-31 Sec. 11. If an officer, employee or agent of the county recorder
4-32 determines that a taxpayer is entitled to an exemption or has been taxed
4-33 or assessed more than is required by law, he shall give written notice of
4-34 that determination to the taxpayer. The notice must:
4-35 1. Be given within 30 days after the officer, employee or agent makes
4-36 his determination or, if the determination is made as a result of an audit,
4-37 within 30 days after the completion of the audit; and
4-38 2. If appropriate, include instructions indicating the manner in
4-39 which the taxpayer may petition for a refund of any overpayment.
4-40 Sec. 12. Any amount determined to be refundable by the county
4-41 recorder after an audit must be refunded to the taxpayer. If it is not
4-42 possible to determine who paid the tax, the refund must be split equally
4-43 between the seller and buyer.
4-44 Sec. 13. The county recorder may charge a person a fee established
4-45 by ordinance for each check returned to the county recorder because the
4-46 person had insufficient money or credit with the drawee to pay the check
4-47 or because the person stopped payment on the check.
4-48 Sec. 14. 1. Except as otherwise provided in subsection 2, if a
4-49 taxpayer proves to the satisfaction of the county that he has relied to his
5-1 detriment on written advice provided to him by an officer, agent or
5-2 employee of the county recorder or on an opinion of the district attorney
5-3 or attorney general:
5-4 (a) The county may waive any tax, penalty and interest owed by the
5-5 taxpayer if the taxpayer meets the criteria adopted by regulation; and
5-6 (b) If a waiver is granted pursuant to paragraph (a), the county shall
5-7 prepare and maintain on file a statement which contains:
5-8 (1) The reason for the waiver;
5-9 (2) The amount of the tax, penalty and interest owed by the
5-10 taxpayer;
5-11 (3) The amount of the tax, penalty and interest waived by the
5-12 county; and
5-13 (4) The facts and circumstances which led to the waiver.
5-14 2. If a person proves to the satisfaction of the county that he has in
5-15 good faith remitted taxes imposed pursuant to this chapter in reliance
5-16 upon written advice provided by an officer, agent or employee of the
5-17 county recorder, an opinion of the district attorney or attorney general,
5-18 or the written results of an audit of his records conducted by the county
5-19 recorder, the county may not require the taxpayer to pay delinquent
5-20 taxes, penalties or interest if the county determines after the completion
5-21 of a subsequent audit that the taxes the taxpayer remitted were deficient.
5-22 Sec. 15. 1. If a hearing officer designated by the county finds that
5-23 the failure of a person to make a payment of a tax imposed pursuant to
5-24 this chapter is the result of circumstances beyond his control and
5-25 occurred despite the exercise of ordinary care and without intent to evade
5-26 payment, the county may waive all or part of any interest or penalty, or
5-27 both, that would otherwise be charged to the person pursuant to this
5-28 chapter for such failure to pay.
5-29 2. A person seeking relief from payment of interest or penalty
5-30 pursuant to this section must file a statement signed under oath setting
5-31 forth the facts upon which he bases his claim.
5-32 3. The county shall disclose, upon the request of any person:
5-33 (a) The name of the person to whom relief was granted pursuant to
5-34 this section; and
5-35 (b) The amount of the relief.
5-36 Sec. 16. 1. Except as otherwise provided in this chapter:
5-37 (a) All decisions of the county made pursuant to this chapter are final
5-38 unless appealed to the Nevada tax commission.
5-39 (b) Any person who is aggrieved by a decision of the county made
5-40 pursuant to this chapter may appeal the decision by filing a notice of
5-41 appeal with the county within 30 days after service of the decision upon
5-42 that person.
5-43 2. Service of a decision made by the county pursuant to this chapter
5-44 must be made personally or by certified mail. If service is made by
5-45 certified mail:
5-46 (a) The decision must be enclosed in an envelope which is addressed
5-47 to the taxpayer at his address as it appears in the records of the county.
6-1 (b) It is deemed to be complete at the time the appropriately addressed
6-2 envelope containing the decision is deposited with the United States
6-3 Postal Service.
6-4 3. The Nevada tax commission may review all decisions made by the
6-5 county that are not otherwise appealed to the commission pursuant to
6-6 this section.
6-7 4. The Nevada tax commission may reverse, affirm or modify any
6-8 decision of the county that is:
6-9 (a) Appealed to the commission by a taxpayer pursuant to this section;
6-10 or
6-11 (b) Reviewed by the commission pursuant to this section.
6-12 5. A decision of the Nevada tax commission is a final decision for the
6-13 purposes of judicial review. The county recorder or any other employee
6-14 or representative of the county recorder shall not seek judicial review of
6-15 such a decision.
6-16 6. The Nevada tax commission shall provide by regulation for:
6-17 (a) Notice to be given to each county of any decision upon an appeal
6-18 to the commission that the commission determines is likely to affect the
6-19 revenue of the county or other local government. The regulations must
6-20 specify the form and contents of the notice and requirements for the
6-21 number of days before a meeting of the commission that the notice must
6-22 be transmitted. If the parties to the appeal enter into a stipulation as to
6-23 the issues that will be heard on appeal, the commission shall transmit a
6-24 copy of the notice to the district attorney of each county which the
6-25 commission determines is likely to be affected by the decision. Upon
6-26 receipt of such a notice, the district attorney shall transmit a copy of the
6-27 notice to each local government within the county which the commission
6-28 determines is likely to be affected by the decision. If there is no such
6-29 stipulation, the commission shall transmit a copy of the notice,
6-30 accompanied by the names of the parties and the amount on appeal, if
6-31 any, to the governing bodies of the counties and other local governments
6-32 which the commission determines are likely to be affected by the
6-33 decision.
6-34 (b) The manner in which a county or other local government which is
6-35 not a party to such an appeal may become a party, and the procedure for
6-36 its participation in the appeal.
6-37 7. A county or other local government that is a party and is aggrieved
6-38 by the decision of the Nevada tax commission may seek judicial review of
6-39 the decision.
6-40 Sec. 17. Except as otherwise provided in this section, any appeal to
6-41 the Nevada tax commission which is taken by a taxpayer concerning his
6-42 liability for a tax imposed pursuant to this chapter must be heard during
6-43 a session of the commission which is open to the public. A hearing on
6-44 such an appeal may be closed to the public if the taxpayer requests that it
6-45 be closed.
6-46 Sec. 18. 1. If a person is delinquent in the payment of any tax
6-47 imposed pursuant to this chapter or has not paid the amount of a
6-48 deficiency determination, the county may bring an action in a court of
6-49 this state, a court of any other state or a court of the United States to
7-1 collect the delinquent or deficient amount, penalties and interest. The
7-2 action:
7-3 (a) May not be brought if the decision that the payment is delinquent
7-4 or that there is a deficiency determination is on appeal to the Nevada tax
7-5 commission pursuant to section 16 of this act.
7-6 (b) Must be brought not later than 3 years after the payment became
7-7 delinquent or the determination became final or within 5 years after the
7-8 last recording of an abstract of judgment or of a certificate constituting a
7-9 lien for tax owed.
7-10 2. The district attorney shall prosecute the action. The provisions of
7-11 NRS and the Nevada Rules of Civil Procedure and Nevada Rules of
7-12 Appellate Procedure relating to service of summons, pleadings, proofs,
7-13 trials and appeals are applicable to the proceedings. In the action, a writ
7-14 of attachment may issue. A bond or affidavit is not required before an
7-15 attachment may be issued.
7-16 3. In the action, a certificate by the county recorder showing the
7-17 delinquency is prima facie evidence of:
7-18 (a) The determination of the tax or fee or the amount of the tax or fee;
7-19 (b) The delinquency of the amounts; and
7-20 (c) The compliance by the county recorder with all the procedures
7-21 required by law related to the computation and determination of the
7-22 amounts.
7-23 Sec. 19. In an action relating to a tax imposed pursuant to this
7-24 chapter, process must be served:
7-25 1. In accordance with the requirements for service of process in the
7-26 Nevada Rules of Civil Procedure; or
7-27 2. By serving both the buyer and seller at their place of residence in
7-28 this state.
7-29 Sec. 20. 1. If, with respect to a tax administered pursuant to this
7-30 chapter, a person:
7-31 (a) Fails to pay the tax when due according to the declaration of value
7-32 filed with the county recorder at the time he records his deed;
7-33 (b) Fails to pay a deficiency determination when due; or
7-34 (c) Defaults on a payment pursuant to a written agreement with the
7-35 county recorder,
7-36 the county recorder may, within 3 years after the amount is due, file in
7-37 the office of the clerk of any court of competent jurisdiction an
7-38 application for the entry of a summary judgment for the amount due.
7-39 2. An application for the entry of summary judgment must be
7-40 accompanied by a certificate specifying:
7-41 (a) The amount required to be paid, including any interest and
7-42 penalties due;
7-43 (b) The name and address of the person liable for the payment, as they
7-44 appear on the records of the county recorder;
7-45 (c) The basis for the determination of the county recorder of the
7-46 amount due; and
7-47 (d) That the county recorder has complied with the applicable
7-48 provisions of law in relation to the determination of the amount required
7-49 to be paid.
8-1 3. The application must include a request that judgment be entered
8-2 against the person in the amount required to be paid as set forth in the
8-3 certificate.
8-4 Sec. 21. The county clerk, immediately upon the filing of the
8-5 application and certificate pursuant to section 20 of this act, shall enter a
8-6 judgment for the county against the person liable for the payment in the
8-7 amount required to be paid, together with any penalties and interest due
8-8 as set forth in the certificate. The county shall serve a copy of the
8-9 judgment, together with the application and the certificate, upon the
8-10 person against whom the judgment is entered, either by personal service
8-11 or by mailing a copy to his last known address as it appears in the
8-12 records of the county recorder.
8-13 Sec. 22. Upon request of the county, execution must issue upon the
8-14 judgment in the same manner as execution may issue upon other
8-15 judgments, and sales must be held under the execution, as provided in
8-16 chapter 21 of NRS.
8-17 Sec. 23. 1. An abstract of the judgment, or a copy thereof, may be
8-18 recorded in the office of the county recorder of any county.
8-19 2. From the time it is recorded, the abstract of judgment or copy
8-20 thereof becomes a lien upon all real and personal property in that county
8-21 owned by the judgment debtor at the time, or which he may afterward
8-22 acquire, until the lien expires. The lien has the force, effect and priority
8-23 of a judgment lien and continues for 5 years after the date of the
8-24 judgment so entered by the county clerk unless sooner released or
8-25 otherwise discharged.
8-26 Sec. 24. The lien may, within 5 years after the date of the judgment
8-27 or within 5 years after the last extension of the lien in a manner provided
8-28 in this chapter, be extended by recording in the office of the county
8-29 recorder an abstract or copy of the judgment, and from the time of that
8-30 recording, the lien must be extended upon the property in that county for
8-31 5 years unless sooner released or otherwise discharged.
8-32 Sec. 25. 1. If any tax or fee imposed pursuant to this chapter is not
8-33 paid when due, the county may, within 3 years after the date that the tax
8-34 or fee was due, record a certificate in the office of any county recorder
8-35 which states:
8-36 (a) The amount of the tax or fee and any interest or penalties due;
8-37 (b) The name and address of the person who is liable for the amount
8-38 due as they appear on the records of the county; and
8-39 (c) That the county has complied with all procedures required by law
8-40 for determining the amount due.
8-41 2. From the time of the recording of the certificate, the amount due,
8-42 including interest and penalties, constitutes a lien upon all real and
8-43 personal property in the county owned by the person or acquired by him
8-44 afterwards and before the lien expires. The lien has the effect and
8-45 priority of a judgment lien and continues for 5 years after the time of the
8-46 recording of the certificate unless sooner released or otherwise
8-47 discharged.
8-48 3. Within 5 years after the date of the recording of the certificate or
8-49 within 5 years after the date of the last extension of the lien pursuant to
9-1 this subsection, the lien may be extended by recording a new certificate
9-2 in the office of the county recorder of any county. From the time of
9-3 recording, the lien is extended to all real and personal property in the
9-4 county owned by the person or acquired by him afterwards for 5 years,
9-5 unless sooner released or otherwise discharged.
9-6 Sec. 26. 1. The county may release all or any portion of the
9-7 property subject to a lien imposed by the county or subordinate the lien to
9-8 other liens and encumbrances if it determines that the amount, interest
9-9 and penalties are secured sufficiently by a lien on other property or that
9-10 the release or subordination of the lien will not jeopardize the collection
9-11 of the amount, interest and penalties.
9-12 2. A certificate by the county stating that any property has been
9-13 released from the lien, or that the lien has been subordinated to other
9-14 liens and encumbrances, is conclusive evidence that the property has
9-15 been released or that the lien has been subordinated.
9-16 Sec. 27. 1. The amounts, including interest and penalties, required
9-17 to be paid by any person pursuant to this chapter must be satisfied first
9-18 if:
9-19 (a) The person is insolvent;
9-20 (b) The person makes a voluntary assignment of his assets;
9-21 (c) The estate of the person in the hands of executors, administrators
9-22 or heirs, before distribution, is insufficient to pay all the debts due from
9-23 the deceased; or
9-24 (d) The estate and effects of an absconding, concealed or absent
9-25 person required to pay any amount by force of such a revenue act are
9-26 levied upon by process of law.
9-27 2. This section does not give the county a preference over:
9-28 (a) Any recorded lien that attached before the date when the amounts
9-29 required to be paid became a lien; or
9-30 (b) Any costs of administration, funeral expenses, expenses of
9-31 personal illness, family allowances or debts preferred pursuant to federal
9-32 law or wages as provided in NRS 150.220.
9-33 Sec. 28. 1. The county or its authorized representative may issue a
9-34 warrant for the enforcement of a lien and for the collection of any
9-35 delinquent tax or fee which is administered pursuant to this chapter:
9-36 (a) Within 3 years after the person is delinquent in the payment of the
9-37 tax or fee; or
9-38 (b) Within 5 years after the last recording of an abstract of judgment
9-39 or of a certificate constituting a lien for the tax or fee.
9-40 2. The warrant must be directed to a sheriff or constable and has the
9-41 same effect as a writ of execution.
9-42 3. The warrant must be levied and sale made pursuant to the warrant
9-43 in the same manner and with the same effect as a levy of and a sale
9-44 pursuant to a writ of execution.
9-45 Sec. 29. 1. The county may pay or advance to the sheriff or
9-46 constable the same fees, commissions and expenses for acting upon the
9-47 warrant as are provided by law for acting upon a writ of execution. The
9-48 county must approve the fees for publication in a newspaper. Approval
9-49 from a court is not required for the publication.
10-1 2. The fees, commissions and expenses are the obligation of the
10-2 person against whom the warrant is issued.
10-3 Sec. 30. The order of a county to lock and seal a place of business
10-4 must be delivered to the sheriff of the county in which the business is
10-5 located who shall assist in the enforcement of the order.
10-6 Sec. 31. 1. If any person is delinquent in the payment of any tax or
10-7 fee administered pursuant to this chapter or if a determination has been
10-8 made against him which remains unpaid, the county may:
10-9 (a) Not later than 3 years after the payment became delinquent or the
10-10 determination became final; or
10-11 (b) Not later than 5 years after the last recording of an abstract of
10-12 judgment or of a certificate constituting a lien for tax owed,
10-13 give a notice of the delinquency and a demand to transmit personally or
10-14 by registered or certified mail to any person, including, without
10-15 limitation, any officer or department of this state or any political
10-16 subdivision or agency of this state, who has in his possession or under
10-17 his control any credits or other personal property belonging to the
10-18 delinquent taxpayer, or owing any debts to the delinquent taxpayer or
10-19 person against whom a determination has been made which remains
10-20 unpaid, or owing any debts to the delinquent taxpayer or that person. In
10-21 the case of any state officer, department or agency, the notice must be
10-22 given to the officer, department or agency before the county presents the
10-23 claim of the delinquent taxpayer to the state controller.
10-24 2. A state officer, department or agency which receives such a notice
10-25 may satisfy any debt owed to it by that person before it honors the
10-26 county’s notice.
10-27 3. After receiving the demand to transmit, the person notified by the
10-28 demand may not transfer or otherwise dispose of the credits, other
10-29 personal property, or debts in his possession or under his control at the
10-30 time he received the notice until the county consents to a transfer or
10-31 other disposition.
10-32 4. Every person notified by a demand to transmit shall, within 10
10-33 days after receipt of the demand to transmit, inform the county of, and
10-34 transmit to the county all such credits, other personal property, or debts
10-35 in his possession, under his control or owing by him within the time and
10-36 in the manner requested by the county. Except as otherwise provided in
10-37 subsection 5, no further notice is required to be served upon that person.
10-38 5. If the property of the delinquent taxpayer consists of a series of
10-39 payments owed to him, the person who owes or controls the payments
10-40 shall transmit the payments to the county until otherwise notified by the
10-41 county. If the debt of the delinquent taxpayer is not paid within 1 year
10-42 after the county issued the original demand to transmit, the county shall
10-43 issue another demand to transmit to the person responsible for making
10-44 the payments informing him to continue to transmit payments to the
10-45 county or that his duty to transmit the payments to the county has ceased.
10-46 6. If the notice of the delinquency seeks to prevent the transfer or
10-47 other disposition of a deposit in a bank or credit union or other credits or
10-48 personal property in the possession or under the control of a bank, credit
10-49 union or other depository institution, the notice must be delivered or
11-1 mailed to the branch or office of the bank, credit union or other
11-2 depository institution at which the deposit is carried or at which the
11-3 credits or personal property is held.
11-4 7. If any person notified by the notice of delinquency makes any
11-5 transfer or other disposition of the property or debts required to be
11-6 withheld or transmitted, to the extent of the value of the property or the
11-7 amount of the debts thus transferred or paid, he is liable to the county for
11-8 any indebtedness due pursuant to this chapter from the person with
11-9 respect to whose obligation the notice was given if solely by reason of the
11-10 transfer or other disposition the county is unable to recover the
11-11 indebtedness of the person with respect to whose obligation the notice
11-12 was given.
11-13 Sec. 32. In administering the provisions of section 31 of this act, the
11-14 county shall determine as early as possible whether there have been
11-15 withheld or transmitted sufficient liquid assets to satisfy the claim of the
11-16 county. As soon as the county determines that the assets have been
11-17 withheld or transmitted, the county shall consent to a transfer or other
11-18 disposition of all assets in excess of that amount.
11-19 Sec. 33. 1. If a person who is liable for any tax or fee administered
11-20 by the county sells any portion of his business or stock of goods not in the
11-21 ordinary course of business or quits the business, his successors or
11-22 assignees shall:
11-23 (a) If the business or stock of goods was purchased for money,
11-24 withhold from the purchase price the amount due; or
11-25 (b) If the business or stock of goods was not purchased for money,
11-26 withhold a sufficient portion of the assets of the business or stock of
11-27 goods which, if sold, would equal the amount due,
11-28 until the former owner provides the successors or assignees with a receipt
11-29 or certificate from the county showing that he paid the amount due.
11-30 2. A successor or assignee who fails to withhold the amount required
11-31 pursuant to subsection 1 becomes personally liable for the payment of the
11-32 amount required to be withheld by him to the extent of the consideration
11-33 paid for the business or stock of goods, valued in money.
11-34 3. The county shall issue a certificate of the amount due to the
11-35 successor or assignee:
11-36 (a) Not later than 60 days after receiving a written request from the
11-37 successor or assignee for such a certificate; or
11-38 (b) Not later than 60 days after the date the records of the former
11-39 owner are made available for audit,
11-40 whichever period expires later, but not later than 90 days after receiving
11-41 the request.
11-42 4. If the county fails to mail the certificate, the successor or assignee
11-43 is released from any further obligation to withhold any portion of the
11-44 purchase price, business or stock of goods.
11-45 5. The time within which the obligation of the successor or assignee
11-46 may be enforced begins when the person who is liable for the tax or fee
11-47 sells or assigns all or any portion of his business or stock of goods or
11-48 when the determination against the person becomes final, whichever
11-49 event occurs later.
12-1 Sec. 34. 1. At any time within 3 years after any person has become
12-2 delinquent in the payment of any tax imposed pursuant to this chapter,
12-3 the county may seize any property, real or personal, of the person and
12-4 sell the property, or a sufficient part of it, at public auction to pay the
12-5 amount due, together with any interest or penalties imposed for the
12-6 delinquency and any costs incurred on account of the seizure and sale.
12-7 2. Any seizure made to collect a tax due may be only of the property
12-8 of the person not exempt from execution under the provisions of law.
12-9 Sec. 35. The county may adopt ordinances which set forth the
12-10 manner in which a person who does not owe any tax to the county may
12-11 claim an ownership interest in property transmitted to or seized by the
12-12 county. The ordinances must set forth:
12-13 1. The procedures the person must follow to assert such a claim; and
12-14 2. The circumstances under which the county will honor the claim.
12-15 Sec. 36. 1. Notice of the sale and the time and place of the sale
12-16 must be given to the person who is delinquent in the payment of taxes
12-17 pursuant to this chapter in writing at least 10 days before the date set for
12-18 the sale in the following manner:
12-19 (a) The notice must be enclosed in an envelope addressed to the
12-20 person at his last known address or place of business in this state. It must
12-21 be deposited in the United States mail, postage prepaid.
12-22 (b) The notice must also be published for at least 10 days before the
12-23 date set for the sale in a newspaper of general circulation published in
12-24 the county in which the property seized is to be sold. If there is no
12-25 newspaper of general circulation in the county, notice must be posted in
12-26 three public places in the county 10 days before the date set for the sale.
12-27 2. The notice must contain:
12-28 (a) A description of the property to be sold;
12-29 (b) A statement of the amount due, including interest, penalties and
12-30 costs;
12-31 (c) The name of the person who is delinquent in the payment; and
12-32 (d) A statement that unless the amount due, interest, penalties and
12-33 costs are paid on or before the time fixed in the notice for the sale, the
12-34 property, or so much of it as is necessary, will be sold in accordance with
12-35 law and the notice.
12-36 Sec. 37. 1. At the sale, the county shall sell the property in
12-37 accordance with law and the notice and deliver to the purchaser a bill of
12-38 sale for the personal property and a deed for any real property sold. The
12-39 bill of sale or deed vests the interest or title of the person liable for the
12-40 amount in the purchaser.
12-41 2. The unsold portion of any property seized may be left at the place
12-42 of sale at the risk of the person liable for the amount.
12-43 Sec. 38. 1. If, upon the sale, the money received exceeds the total
12-44 of all amounts, including interest, penalties and costs due the county, the
12-45 county shall return the excess to the person liable for the amounts and
12-46 obtain his receipt.
12-47 2. If any person having an interest in or lien upon real property
12-48 being transferred files with the county, before the sale, a notice of his
12-49 interest or lien, the county shall withhold any excess pending a
13-1 determination of the rights of the respective parties to it by a court of
13-2 competent jurisdiction.
13-3 3. If the receipt of the person liable for the amount is not available,
13-4 the county shall deposit the excess money with the county treasurer, as
13-5 trustee for the owner, subject to the order of the person liable for the
13-6 amount, his heirs, successors or assigns.
13-7 Sec. 39. NRS 375.010 is hereby amended to read as follows:
13-8 375.010 The following terms, wherever used or referred to in this
13-9 chapter, have the following meaning unless a different meaning clearly
13-10 appears in the context:
13-11 1. “Buyer” means a person or other legal entity acquiring title to any
13-12 estate or present interest in real property in this state by deed, including,
13-13 without limitation, a grantee or other transferee of real property.
13-14 2. “Deed” means every instrument in writing, except a last will and
13-15 testament, whatever its form, and by whatever name it is known in law, by
13-16 which title to any estate or present interest in real property, including a
13-17 water right, permit, certificate or application, is conveyed or transferred to,
13-18 and vested in, another person, but does not include a lease for any term of
13-19 years , [or] an easement[.] , a mortgage instrument which encumbers real
13-20 property and does not convey title, an affidavit of surviving tenant or a
13-21 conveyance of a right of way.
13-22 3. “Escrow” means the delivery of a deed by the seller into the hands
13-23 of a third person, including an attorney, title company, real estate broker or
13-24 other person engaged in the business of administering escrows for
13-25 compensation, to be held by the third person until the happening of a
13-26 contingency or performance of a condition, and then to be delivered by the
13-27 third person to the buyer.
13-28 4. “Seller” means a person or other legal entity transferring title to any
13-29 estate or present interest in real property in this state by deed, including,
13-30 without limitation, a grantor or other transferor of real property.
13-31 5. “Value” means:
13-32 (a) In the case of any deed not a gift, the amount of the full[, actual
13-33 consideration] purchase price paid or to be paid for the real property . [,
13-34 excluding the amount of any lien or liens assumed.]
13-35 (b) In the case of a gift, or any deed with nominal consideration or
13-36 without stated consideration, the estimated [price the real property would
13-37 bring in an open market and under the then prevailing market conditions in
13-38 a sale between a willing seller and a willing buyer, both conversant with
13-39 the property and with prevailing general price levels.] fair market value of
13-40 the property.
13-41 As used in this section, “estimated fair market value” means the
13-42 estimated price the real property would bring on the open market in a
13-43 sale between a willing buyer and a willing seller. Such price may be
13-44 derived from the assessor’s appraised value, the purchase price, the
13-45 amount able to be borrowed against the property without reserve for
13-46 construction or improvements, or an independent appraiser, whichever is
13-47 highest.
14-1 Sec. 40. NRS 375.030 is hereby amended to read as follows:
14-2 375.030 1. If any deed evidencing a transfer of title subject to the tax
14-3 imposed by NRS 375.020 and, if applicable, NRS 375.025, is offered for
14-4 recordation, the county recorder shall compute the amount of the tax due
14-5 and shall collect that amount before acceptance of the deed for recordation.
14-6 2. The buyer and seller are jointly and severally liable for the payment
14-7 of the taxes imposed by NRS 375.020 and 375.025 and any penalties and
14-8 interest imposed pursuant to subsection 3. The escrow holder is not liable
14-9 for the payment of the taxes imposed by NRS 375.020 and 375.025 or any
14-10 penalties or interest imposed pursuant to subsection 3.
14-11 3. If after recordation of the deed, the county recorder disallows an
14-12 exemption that was claimed at the time the deed was recorded or through
14-13 audit or otherwise determines that an additional amount of tax is due, the
14-14 county recorder shall promptly notify the person who requested the
14-15 recording of the deed, and the buyer or seller, or both, of the additional
14-16 amount of tax due. [In addition to the additional amount determined to be
14-17 due,] If the additional amount of tax is not paid within 30 days after the
14-18 date the buyer is notified, the county recorder shall impose a penalty of 10
14-19 percent of the additional amount due in addition to interest at the rate of 1
14-20 1/2 percent per month, or portion thereof, of the additional amount due
14-21 calculated from the date of the original recordation of the deed on which
14-22 the additional amount is due through the date on which the additional
14-23 amount due, penalty and interest are paid to the county recorder.
14-24 4. This section does not prohibit a buyer and seller from agreeing by
14-25 contract or otherwise that one party or the other will be responsible for the
14-26 payment of the tax due pursuant to this chapter, but such an agreement
14-27 does not affect the ability of the county recorder to collect the tax and any
14-28 penalties and interest from either the buyer or the seller.
14-29 Sec. 41. NRS 375.070 is hereby amended to read as follows:
14-30 375.070 1. [The] At the end of each quarter, the county recorder
14-31 shall retain an amount equal to 5 percent of the proceeds of the total
14-32 amount collected from the real property transfer tax imposed pursuant to
14-33 this chapter and credit that amount to the office of the county recorder to
14-34 be used only to administer taxes pursuant to this chapter. The county
14-35 recorder shall transmit the remaining proceeds of the real property
14-36 transfer tax [at the end of each quarter] in the following manner:
14-37 (a) An amount equal to that portion of the proceeds which is equivalent
14-38 to 10 cents for each $500 of value or fraction thereof must be transmitted to
14-39 the state treasurer who shall deposit that amount in the account for low-
14-40 income housing created pursuant to NRS 319.500.
14-41 (b) In a county whose population is more than 400,000, an amount
14-42 equal to that portion of the proceeds which is equivalent to 60 cents for
14-43 each $500 of value or fraction thereof must be transmitted to the county
14-44 treasurer for deposit in the county school district’s fund for capital projects
14-45 established pursuant to NRS 387.328, to be held and expended in the same
14-46 manner as other money deposited in that fund.
14-47 (c) The remaining proceeds must be transmitted to the state treasurer for
14-48 deposit in the local government tax distribution account created by NRS
15-1 360.660 for credit to the respective accounts of Carson City and each
15-2 county.
15-3 2. In addition to any other authorized use of the proceeds it receives
15-4 pursuant to subsection 1, a county or city may use the proceeds to pay
15-5 expenses related to or incurred for the development of affordable housing
15-6 for families whose income does not exceed 80 percent of the median
15-7 income for families residing in the same county, as that percentage is
15-8 defined by the United States Department of Housing and Urban
15-9 Development. A county or city that uses the proceeds in that manner must
15-10 give priority to the development of affordable housing for persons who are
15-11 disabled or elderly.
15-12 3. The expenses authorized by subsection 2 include, but are not limited
15-13 to:
15-14 (a) The costs to acquire land and developmental rights;
15-15 (b) Related predevelopment expenses;
15-16 (c) The costs to develop the land, including the payment of related
15-17 rebates;
15-18 (d) Contributions toward down payments made for the purchase of
15-19 affordable housing; and
15-20 (e) The creation of related trust funds.
15-21 Sec. 42. NRS 375.090 is hereby amended to read as follows:
15-22 375.090 The tax imposed by NRS 375.020 and 375.025 does not apply
15-23 to:
15-24 1. [Any transaction wherein an interest in real property is encumbered
15-25 for the purposes of securing a debt.
15-26 2.] A transfer of title to or from the United States, any territory or state
15-27 or any agency, department, instrumentality or political subdivision thereof.
15-28 [3.] 2. A transfer of title recognizing the true status of ownership of
15-29 the real property.
15-30 [4.] 3. A transfer of title without consideration from one joint tenant
15-31 or tenant in common to one or more remaining joint tenants or tenants in
15-32 common.
15-33 [5.] 4. A transfer of title to community property without consideration
15-34 when held in the name of one spouse to both spouses as joint tenants or
15-35 tenants in common, or as community property.
15-36 [6.] 5. A transfer of title between spouses, including gifts.
15-37 [7.] 6. A transfer of title between spouses to effect a property
15-38 settlement agreement or between former spouses in compliance with a
15-39 decree of divorce.
15-40 [8.] 7. A transfer of title to [or from] a trust, if the transfer is made
15-41 without consideration[.
15-42 9. Transfers, assignments or conveyances of unpatented mines or
15-43 mining claims.
15-44 10.] and is made to or from a person related to the trustor in the first
15-45 degree of consanguinity or to or from trustors.
15-46 8. A transfer, assignment or other conveyance of real property to a
15-47 corporation or other business organization if the person conveying the
15-48 property owns 100 percent of the corporation or organization to which the
15-49 conveyance is made.
16-1 [11.] 9. A transfer, assignment or other conveyance of real property if
16-2 the owner of the property is related to the person to whom it is conveyed
16-3 within the first degree of consanguinity.
16-4 [12.] 10. The making, delivery or filing of conveyances of real
16-5 property to make effective any plan of reorganization or adjustment:
16-6 (a) Confirmed under the Bankruptcy Act, as amended, [Title 11 of
16-7 U.S.C.;] 11 U.S.C. §§ 101 et seq.;
16-8 (b) Approved in an equity receivership proceeding involving a railroad
16-9 as defined in the Bankruptcy Act; or
16-10 (c) Approved in an equity receivership proceeding involving a
16-11 corporation, as defined in the Bankruptcy Act , [; or
16-12 (d) Whereby a mere change in identity, form or place of organization is
16-13 effected, such as a transfer between a corporation and its parent
16-14 corporation, a subsidiary or an affiliated corporation,]
16-15 if the making, delivery or filing of instruments of transfer or conveyance
16-16 occurs within 5 years after the date of the confirmation, approval or
16-17 change.
16-18 [13.] 11. A mere change in identity, form or place of organization,
16-19 such as a transfer between a corporation and its parent corporation, a
16-20 subsidiary or an affiliated corporation if the affiliated corporation has
16-21 identical common ownership.
16-22 12. The making or delivery of conveyances of real property to make
16-23 effective any order of the Securities and Exchange Commission if:
16-24 (a) The order of the Securities and Exchange Commission in obedience
16-25 to which the transfer or conveyance is made recites that the transfer or
16-26 conveyance is necessary or appropriate to effectuate the provisions of
16-27 section 11 of the Public Utility Holding Company Act of 1935, 15 U.S.C. §
16-28 79k;
16-29 (b) The order specifies and itemizes the property which is ordered to be
16-30 transferred or conveyed; and
16-31 (c) The transfer or conveyance is made in obedience to the order.
16-32 [14.] 13. A transfer to [or from] an educational foundation. As used in
16-33 this subsection, “educational foundation” has the meaning ascribed to it in
16-34 subsection 3 of NRS 388.750.
16-35 [15.] 14. A transfer to [or from] a university foundation. As used in
16-36 this subsection, “university foundation” has the meaning ascribed to it in
16-37 subsection 3 of NRS 396.405.
16-38 [16.] 15. A transfer, assignment or other conveyance of real property
16-39 to a corporation sole from another corporation sole. As used in this
16-40 subsection, “corporation sole” means a corporation which is organized
16-41 pursuant to the provisions of chapter 84 of NRS.
16-42 Sec. 43. NRS 375.100 is hereby amended to read as follows:
16-43 375.100 The county recorder shall refuse to record any deed or
16-44 conveyance upon which a tax is imposed by this chapter if the tax has not
16-45 been paid[.] and is not subject to liability for refusing to record a deed or
16-46 conveyance for which a tax imposed pursuant to this chapter has not
16-47 been paid.
16-48 Sec. 44. NRS 388.750 is hereby amended to read as follows:
16-49 388.750 1. An educational foundation:
17-1 (a) Shall comply with the provisions of chapter 241 of NRS;
17-2 (b) Except as otherwise provided in subsection 2, shall make its records
17-3 public and open to inspection pursuant to NRS 239.010; and
17-4 (c) Is exempt from the tax on transfers of real property [pursuant to
17-5 subsection 14] to the extent set forth in subsection 13 of NRS 375.090.
17-6 2. An educational foundation is not required to disclose the names of
17-7 the contributors to the foundation or the amount of their contributions. The
17-8 educational foundation shall, upon request, allow a contributor to examine,
17-9 during regular business hours, any record, document or other information
17-10 of the foundation relating to that contributor.
17-11 3. As used in this section, “educational foundation” means a nonprofit
17-12 corporation, association or institution or a charitable organization that is:
17-13 (a) Organized and operated exclusively for the purpose of supporting
17-14 one or more kindergartens, elementary schools, junior high or middle
17-15 schools or high schools, or any combination thereof;
17-16 (b) Formed pursuant to the laws of this state; and
17-17 (c) Exempt from taxation pursuant to 26 U.S.C. § 501(c)(3).
17-18 Sec. 45. NRS 396.405 is hereby amended to read as follows:
17-19 396.405 1. A university foundation:
17-20 (a) Shall comply with the provisions of chapter 241 of NRS;
17-21 (b) Except as otherwise provided in subsection 2, shall make its records
17-22 public and open to inspection pursuant to NRS 239.010;
17-23 (c) Is exempt from the tax on transfers of real property [pursuant to
17-24 subsection 14] to the extent set forth in subsection 13 of NRS 375.090;
17-25 and
17-26 (d) May allow a president or an administrator of the university or
17-27 community college which it supports to serve as a member of its governing
17-28 body.
17-29 2. A university foundation is not required to disclose the name of any
17-30 contributor or potential contributor to the university foundation, the amount
17-31 of his contribution or any information which may reveal or lead to the
17-32 discovery of his identity. The university foundation shall, upon request,
17-33 allow a contributor to examine, during regular business hours, any record,
17-34 document or other information of the foundation relating to that
17-35 contributor.
17-36 3. As used in this section, “university foundation” means a nonprofit
17-37 corporation, association or institution or a charitable organization that is:
17-38 (a) Organized and operated exclusively for the purpose of supporting a
17-39 university or a community college;
17-40 (b) Formed pursuant to the laws of this state; and
17-41 (c) Exempt from taxation pursuant to 26 U.S.C. § 501(c)(3).
17-42 Sec. 46. The provisions of subsection 1 of NRS 354.599 do not apply
17-43 to any additional expenses of a local government that are related to the
17-44 provisions of this act.
17-45 Sec. 47. This act becomes effective on July 1, 2001.
17-46 H