Senate Bill No. 381–Senator Jacobsen

 

CHAPTER..........

 

AN ACT relating to taxation; revising the definitions of “wholesale dealer” and “wholesale price” for the purpose of imposing the tax on products made from tobacco, other than cigarettes; requiring the payment of the tax after the sale of the products by a wholesale dealer; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1. NRS 370.440 is hereby amended to read as follows:

   370.440  As used in NRS 370.440 to 370.503, inclusive, unless the

context otherwise [provides:] requires:

   1.  “Retail dealer” means any person who is engaged in selling products

made from tobacco, other than cigarettes, to customers.

   2.  “Sale” means any transfer, exchange, barter, gift, offer for sale, or

distribution for consideration of products made from tobacco, other than

cigarettes.

   3.  “Ultimate consumer” means a person who purchases a product

made from tobacco, other than cigarettes, for his household or personal

use and not for resale.

   4.  “Wholesale dealer” means any person who [purchases products

made from tobacco, other than cigarettes, directly from the manufacturer or

who purchases those products from any other person who purchases them

from the manufacturer to sell to retail dealers and who serves retail outlets

from an established place of business including, but not limited to, the

maintenance of a warehouse for the storage and distribution of those

products.

   4.] :

   (a) Brings or causes to be brought into this state products made from

tobacco, other than cigarettes, purchased from the manufacturer or a

wholesale dealer and who stores, sells or otherwise disposes of those

products within this state;

   (b) Manufactures or produces products made from tobacco, other

than cigarettes, within this state and who sells or distributes those

products within this state to other wholesale dealers, retail dealers or

ultimate consumers; or

   (c) Purchases products made from tobacco, other than cigarettes,

solely for the purpose of bona fide resale to retail dealers or to other

persons for the purpose of resale only.

   5. “Wholesale price” means :

   (a) Except as otherwise provided in paragraph (b), the established

price for which a manufacturer sells a product made from tobacco, other

than cigarettes, to a wholesale dealer before any discount or other reduction

is made.

   (b) For a product made from tobacco, other than cigarettes, sold to a

retail dealer or an ultimate consumer by a wholesale dealer described in

paragraph (b) of subsection 3, the established price for which the product

is sold to the retail dealer or ultimate consumer before any discount or

other reduction is made.

 

   Sec. 2.  NRS 370.450 is hereby amended to read as follows:

   370.450  1.  Except as otherwise provided in subsection 2, there is

hereby imposed upon the purchase or possession of products made from

tobacco, other than cigarettes, by a customer in this state a tax of 30

percent of the wholesale price of those products.

   2.  The provisions of subsection 1 do not apply to those products which

are:

   (a) Shipped out of the state for sale and use outside the state; or

   (b) Displayed or exhibited at a trade show, convention or other

exhibition in this state by a manufacturer or wholesale dealer who is not

licensed in this state.

   3.  This tax must be collected and paid by the wholesale dealer to the

department [before] , in accordance with the provisions of NRS 370.465,

after the sale or distribution of those products [to the customer.] by the

wholesale dealer. The wholesale dealer is entitled to retain 2 percent of the

taxes collected to cover the costs of collecting and administering the taxes.

   4.  Any wholesale dealer who sells or distributes any of those products

without [first] paying the tax provided for by this section is guilty of a

misdemeanor.

   Sec. 3.  NRS 370.460 is hereby amended to read as follows:

   370.460  It is unlawful for any person to sell or offer to sell any

products made from tobacco, other than cigarettes, on which the tax [has

not been] is not paid as provided for in NRS 370.450.

   Sec. 4.  NRS 370.465 is hereby amended to read as follows:

   370.465  1.  A wholesale dealer [or retail dealer] shall, not later than

20 days after the end of each month, submit to the department [:

   (a) A list] a report on a form prescribed by the department setting forth

each [purchase] sale of products made from tobacco, other than cigarettes,

that [he] the wholesale dealer made during the previous month . [; and

   (b) A copy of the invoice for each such purchase that is required to be

provided to him pursuant to NRS 370.470.

   2.  The department shall maintain a record of the invoices for not less

than 3 years after the receipt of those invoices.]

   2.  Each report submitted pursuant to this section on or after

August 20, 2001, must be accompanied by the tax owed pursuant to NRS

370.450 for products made from tobacco, other than cigarettes, that were

sold by the wholesale dealer during the previous month.

   3. The department may impose a penalty on a wholesale dealer [or retail

dealer] who violates any of the provisions of [subsection 1] this section as

follows:

   (a) For the first violation within 7 years, a fine of $1,000.

   (b) For a second violation within 7 years, a fine of $5,000.

   (c) For a third or subsequent violation within 7 years, revocation of the

license of the wholesale dealer . [or retail dealer.]

   Sec. 5.  NRS 370.470 is hereby amended to read as follows:

   370.470  [1.] A wholesale dealer must obtain from each manufacturer

or wholesale dealer who is not licensed in this state itemized invoices of all

products made from tobacco, other than cigarettes, purchased from and

delivered by the manufacturer or wholesale dealer who is not licensed in

this state. The wholesale dealer must obtain from the manufacturer or

wholesale dealer who is not licensed in this state separate invoices for each

purchase made. The invoice must include:

   [(a)] 1. The name and address of the manufacturer or wholesale dealer

who is not licensed in this state;

   [(b)] 2. The name and address of the wholesale dealer;

   [(c)] 3. The date of the purchase; and

   [(d)] 4. The quantity and wholesale price of those products.

   [2.  A retail dealer must obtain from each manufacturer or wholesale

dealer who is not licensed in this state itemized invoices of all products

made from tobacco, other than cigarettes, purchased from and delivered by

that manufacturer or wholesale dealer. The retail dealer must obtain from

the manufacturer or wholesale dealer who is not licensed in this state

separate invoices for each purchase made. The invoice must include:

   (a) The name and address of the manufacturer or wholesale dealer who

is not licensed in this state;

   (b) The name and address of the retail dealer;

   (c) The date of the purchase; and

   (d) The quantity and wholesale price of those products.]

   Sec. 6.  NRS 370.480 is hereby amended to read as follows:

   370.480  1.  Every wholesale dealer must keep at his place of business

complete and accurate records for that place of business, including copies

of all invoices of products made from tobacco, other than cigarettes, which

he holds, purchases and delivers , distributes or sells in this state. All

records must be preserved for at least 3 years after the date of purchase or

after the date of the last entry made on the record.

   2.  Every retail dealer shall keep at his place of business complete and

accurate records for that place of business, including copies of all itemized

invoices or purchases of such products purchased and delivered from

wholesale dealers. The invoices must show the name and address of the

wholesale dealer and the date of the purchase. All records must be

preserved for at least 3 years after the date of the purchase.

   Sec. 7.  NRS 370.490 is hereby amended to read as follows:

   370.490  1.  The department shall allow a credit of 30 percent of the

wholesale price, less a discount of 2 percent for the services rendered in

collecting the tax, for products made from tobacco, other than cigarettes,

upon which the tax has been paid pursuant to NRS 370.450 and that may

no longer be sold. If the products have been purchased and delivered, a

credit memo of the manufacturer is required for proof of returned

merchandise.

   2.  A credit must also be granted for any products made from tobacco,

other than cigarettes, shipped from this state and destined for retail sale and

consumption outside the state on which the tax has previously been paid. A

duplicate or copy of the invoice is required for proof of the sale outside the

state.

   3.  A wholesale dealer may claim a credit by filing with the department

the proof required by this section. The claim must be made on a form

prescribed by the department.

   Sec. 8.  The amendatory provisions of this act do not apply to offenses

that were committed before July 1, 2001.

   Sec. 9.  1.  Notwithstanding the provisions of NRS 370.450, as

amended by section 2 of this act, and NRS 370.465, as amended by section

4 of this act, a wholesale dealer is not required to pay any tax or report any

sales or purchases with respect to products made from tobacco, other than

cigarettes, if the purchase of such products was reported to the department

of taxation pursuant to NRS 370.465 as a purchase made before July 1,

2001, and the appropriate tax was remitted to the department with respect

to that purchase as required by NRS 370.450.

   2.  As used in this section, “wholesale dealer” has the meaning ascribed

to it in NRS 370.440, as amended by section 1 of this act.

   Sec. 10.  This act becomes effective on July 1, 2001.

 

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