exempt

                                                 (Reprinted with amendments adopted on April 21, 2003)

 

Assembly Bill No. 514–Committee on Taxation

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Provides for enactment of certain provisions that are necessary to carry out Streamlined Sales and Use Tax Agreement. (BDR 32‑1292)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxation; providing for the enactment of certain provisions that are necessary to carry out the Streamlined Sales and Use Tax Agreement; providing for the electronic registration of sellers; establishing requirements for determining the place of sales for the purposes of sales and use taxes; establishing requirements for claiming an exemption from such taxes; providing for the electronic payment of such taxes; providing for the submission to the voters of questions relating to whether the Sales and Use Tax Act of 1955 should be amended to conform to the Agreement; 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 360.300 is hereby amended to read as follows:

1-2  360.300  1.  If a person fails to file a return or the Department

1-3  is not satisfied with the return or returns of any tax, contribution or

1-4  premium or amount of tax, contribution or premium required to be

1-5  paid to the State by any person, in accordance with the applicable

1-6  provisions of this chapter, chapter 360B, 362, 364A, 369, 370, 372,

1-7  372A, 374, 377, 377A or 444A of NRS, NRS 482.313, or chapter

1-8  585 or 680B of NRS as administered or audited by the Department,

2-1  it may compute and determine the amount required to be paid upon

2-2  the basis of:

2-3  (a) The facts contained in the return;

2-4  (b) Any information within its possession or that may come into

2-5  its possession; or

2-6  (c) Reasonable estimates of the amount.

2-7  2.  One or more deficiency determinations may be made with

2-8  respect to the amount due for one or for more than one period.

2-9  3.  In making its determination of the amount required to be

2-10  paid, the Department shall impose interest on the amount of tax

2-11  determined to be due, calculated at the rate and in the manner set

2-12  forth in NRS 360.417, unless a different rate of interest is

2-13  specifically provided by statute.

2-14      4.  The Department shall impose a penalty of 10 percent in

2-15  addition to the amount of a determination that is made in the case of

2-16  the failure of a person to file a return with the Department.

2-17      5.  When a business is discontinued, a determination may be

2-18  made at any time thereafter within the time prescribed in NRS

2-19  360.355 as to liability arising out of that business, irrespective of

2-20  whether the determination is issued before the due date of the

2-21  liability.

2-22      Sec. 2.  NRS 360.489 is hereby amended to read as follows:

2-23      360.489  1.  In determining the amount of [sales] :

2-24      (a) Sales tax due on a sale at retail, the rate of tax used must be

2-25  the sum of the rates of all taxes imposed upon sales at retail in :

2-26          (1) The county determined pursuant to the provisions of

2-27  sections 13 to 18, inclusive, of this act; or

2-28          (2) If those provisions do not apply to the sale, the county in

2-29  which the property is or will be delivered to the purchaser or his

2-30  agent or designee.

2-31      [2.  In determining the amount of use]

2-32      (b) Use tax due on the purchase of tangible personal property for

2-33  use, storage or other consumption in this state, the rate of tax used

2-34  must be the sum of the rates of all taxes imposed upon the use,

2-35  storage or other consumption of property in :

2-36          (1) The county determined pursuant to the provisions of

2-37  sections 13 to 18, inclusive, of this act; or

2-38          (2) If those provisions do not apply to the purchase, the

2-39  county in which the property is first used, stored or consumed.

2-40      2.  In determining the amount of taxes due pursuant to

2-41  subsection 1:

2-42      (a) The amount due must be computed to the third decimal

2-43  place and rounded to a whole cent using a method that rounds up

2-44  to the next cent if the numeral in the third decimal place is greater

2-45  than 4.

3-1  (b) A retailer may compute the amount due on a transaction

3-2  on the basis of each item involved in the transaction or a single

3-3  invoice for the entire transaction.

3-4  3.  On or before January 1 of each year the Department shall

3-5  transmit to each retailer to whom a permit has been issued a notice

3-6  which contains the provisions of subsections 1 and 2 and

3-7  NRS 372.365.

3-8  Sec. 3.  NRS 360.510 is hereby amended to read as follows:

3-9  360.510  1.  If any person is delinquent in the payment of any

3-10  tax or fee administered by the Department or if a determination has

3-11  been made against him which remains unpaid, the Department may:

3-12      (a) Not later than 3 years after the payment became delinquent

3-13  or the determination became final; or

3-14      (b) Not later than 6 years after the last recording of an abstract

3-15  of judgment or of a certificate constituting a lien for tax

3-16  owed,

3-17  give a notice of the delinquency and a demand to transmit

3-18  personally or by registered or certified mail to any person,

3-19  including, without limitation, any officer or department of this state

3-20  or any political subdivision or agency of this state, who has in his

3-21  possession or under his control any credits or other personal

3-22  property belonging to the delinquent, or owing any debts to the

3-23  delinquent or person against whom a determination has been made

3-24  which remains unpaid, or owing any debts to the delinquent or that

3-25  person. In the case of any state officer, department or agency, the

3-26  notice must be given to the officer, department or agency before

3-27  the Department presents the claim of the delinquent taxpayer to the

3-28  State Controller.

3-29      2.  A state officer, department or agency which receives such a

3-30  notice may satisfy any debt owed to it by that person before it

3-31  honors the notice of the Department.

3-32      3.  After receiving the demand to transmit, the person notified

3-33  by the demand may not transfer or otherwise dispose of the credits,

3-34  other personal property, or debts in his possession or under his

3-35  control at the time he received the notice until the Department

3-36  consents to a transfer or other disposition.

3-37      4.  Every person notified by a demand to transmit shall, within

3-38  10 days after receipt of the demand to transmit, inform the

3-39  Department of, and transmit to the Department all such credits,

3-40  other personal property, or debts in his possession, under his control

3-41  or owing by him within the time and in the manner requested by the

3-42  Department. Except as otherwise provided in subsection 5, no

3-43  further notice is required to be served to that person.

3-44      5.  If the property of the delinquent taxpayer consists of a series

3-45  of payments owed to him, the person who owes or controls the

4-1  payments shall transmit the payments to the Department until

4-2  otherwise notified by the Department. If the debt of the delinquent

4-3  taxpayer is not paid within 1 year after the Department issued the

4-4  original demand to transmit, the Department shall issue another

4-5  demand to transmit to the person responsible for making the

4-6  payments informing him to continue to transmit payments to

4-7  the Department or that his duty to transmit the payments to the

4-8  Department has ceased.

4-9  6.  If the notice of the delinquency seeks to prevent the transfer

4-10  or other disposition of a deposit in a bank or credit union or other

4-11  credits or personal property in the possession or under the control of

4-12  a bank, credit union or other depository institution, the notice must

4-13  be delivered or mailed to any branch or office of the bank, credit

4-14  union or other depository institution at which the deposit is carried

4-15  or at which the credits or personal property is held.

4-16      7.  If any person notified by the notice of the delinquency

4-17  makes any transfer or other disposition of the property or debts

4-18  required to be withheld or transmitted, to the extent of the value of

4-19  the property or the amount of the debts thus transferred or paid, he is

4-20  liable to the State for any indebtedness due pursuant to this chapter,

4-21  or chapter 360B, 362, 364A, 369, 370, 372, 372A, 374, 377, 377A

4-22  or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS

4-23  from the person with respect to whose obligation the notice was

4-24  given if solely by reason of the transfer or other disposition the State

4-25  is unable to recover the indebtedness of the person with respect to

4-26  whose obligation the notice was given.

4-27      Sec. 4.  Chapter 360B of NRS is hereby amended by adding

4-28  thereto the provisions set forth as sections 5 to 24, inclusive, of this

4-29  act.

4-30      Sec. 5.  “Purchaser” means a person to whom a sale of

4-31  tangible personal property is made.

4-32      Sec. 6.  “Registered seller” means a seller registered pursuant

4-33  to section 9 of this act.

4-34      Sec. 7.  “Retail sale” means any sale, lease or rental for any

4-35  purpose other than for resale, sublease or subrent.

4-36      Sec. 8.  “Tangible personal property” means personal

4-37  property which may be seen, weighed, measured, felt or touched,

4-38  or which is in any other manner perceptible to the senses.

4-39      Sec. 9.  1.  The Department shall, in cooperation with any

4-40  other states that are members of the Agreement, establish and

4-41  maintain a central, electronic registration system that allows a

4-42  seller to register to collect and remit the sales and use taxes

4-43  imposed in this state and in the other states that are members of

4-44  the Agreement.

5-1  2.  A seller who registers pursuant to this section agrees to

5-2  collect and remit sales and use taxes in accordance with the

5-3  provisions of this chapter, the regulations of the Department and

5-4  the applicable law of each state that is a member of the

5-5  Agreement, including any state that becomes a member of the

5-6  Agreement after the registration of the seller pursuant to this

5-7  section. The cancellation or revocation of the registration of a

5-8  seller pursuant to this section, the withdrawal of a state from the

5-9  Agreement or the revocation of the Agreement does not relieve a

5-10  seller from liability pursuant to this subsection to remit any taxes

5-11  previously or subsequently collected on behalf of a state.

5-12      3.  When registering pursuant to this section, a seller may:

5-13      (a) Elect to use a certified service provider as its agent to

5-14  perform all the functions of the seller relating to sales and use

5-15  taxes, other than the obligation of the seller to remit the taxes on

5-16  its own purchases;

5-17      (b) Elect to use a certified automated system to calculate the

5-18  amount of sales or use taxes due on its sales transactions;

5-19      (c) Under such conditions as the Department deems

5-20  appropriate, elect to use its own proprietary automated system to

5-21  calculate the amount of sales or use taxes due on its sales

5-22  transactions; or

5-23      (d) Elect to use any other method authorized by the

5-24  Department for performing the functions of the seller relating to

5-25  sales and use taxes.

5-26      4.  A seller who registers pursuant to this section agrees to

5-27  submit its sales and use tax returns, and to remit any sales and use

5-28  taxes due, to the Department at such times and in such a manner

5-29  and format as the Department prescribes by regulation.

5-30      5.  The registration of a seller and the collection and

5-31  remission of sales and use taxes pursuant to this section may not

5-32  be considered as a factor in determining whether a seller has a

5-33  nexus with this state for the purposes of determining his liability to

5-34  pay any tax imposed by this state.

5-35      Sec. 10.  1.  The Department shall post on a website or other

5-36  Internet site that is operated or administered by or on behalf of the

5-37  Department:

5-38      (a) The rates of sales and use taxes for this state and for each

5-39  local government in this state that imposes such taxes. The

5-40  Department shall identify this state and each local government

5-41  using the Federal Information Processing Standards developed by

5-42  the National Institute of Standards and Technology.

5-43      (b) Any change in those rates.

6-1  (c) Any amendments to the statutory provisions and

6-2  administrative regulations of this state governing the registration

6-3  of sellers and the collection of sales and use taxes.

6-4  (d) Any change in the boundaries of local governments in this

6-5  state that impose sales and use taxes.

6-6  (e) The list maintained pursuant to section 11 of this act.

6-7  (f) Any other information the Department deems appropriate.

6-8  2.  The Department shall make a reasonable effort to provide

6-9  sellers with as much advance notice as possible of any changes or

6-10  amendments required to be posted pursuant to subsection 1 and of

6-11  any other changes in the information posted pursuant to

6-12  subsection 1. Except as otherwise provided in section 12 of this

6-13  act, the failure of the Department to provide such notice and the

6-14  failure of a seller to receive such notice does not affect the

6-15  obligation of the seller to collect and remit any applicable sales

6-16  and use taxes.

6-17      Sec. 11.  1.  The Department shall maintain a list that

6-18  denotes for each five-digit and nine-digit zip code in this state the

6-19  combined rates of sales taxes and the combined rates of use taxes

6-20  imposed in the area of that zip code, and the applicable taxing

6-21  jurisdictions. If the combined rate of all the sales taxes or use

6-22  taxes respectively imposed within the area of a zip code is not the

6-23  same for the entire area of the zip code, the Department shall

6-24  denote in the list the lowest combined tax rates for the entire zip

6-25  code.

6-26      2.  If a street address does not have a nine-digit zip code or if

6-27  a registered seller is unable to determine the nine-digit zip code of

6-28  a purchaser after exercising due diligence to determine that

6-29  information, that seller may, except as otherwise provided in

6-30  subsection 3, apply the rate denoted for the five-digit zip code in

6-31  the list maintained pursuant to this section. For the purposes of

6-32  this subsection, there is a rebuttable presumption that a registered

6-33  seller has exercised due diligence if the seller has attempted to

6-34  determine the nine-digit zip code of a purchaser by using software

6-35  approved by the Department which makes that determination from

6-36  the street address and five-digit zip code of the purchaser.

6-37      3.  The list maintained pursuant to this section does not apply

6-38  to and must not be used for any transaction regarding which a

6-39  purchased product is received by the purchaser at the business

6-40  location of the seller.

6-41      Sec. 12.  The Department shall waive any liability of a

6-42  registered seller and a certified service provider acting on behalf

6-43  of a registered seller who, as a result of his reasonable reliance on

6-44  the information posted pursuant to section 10 of this act or his

7-1  compliance with subsection 2 of section 11 of this act, collects the

7-2  incorrect amount of any sales or use tax imposed in this state, for:

7-3  1.   The amount of the sales or use tax which the registered

7-4  seller and certified service provider fail to collect as a result of that

7-5  reliance; and

7-6  2.  Any penalties and interest on that amount.

7-7  Sec. 13.  As used in sections 13 to 18, inclusive, of this act:

7-8  1.  “Receive” means taking possession of or making the first

7-9  use of tangible personal property, whichever occurs first. The term

7-10  does not include possession by a shipping company on behalf of a

7-11  purchaser.

7-12      2.  “Transportation equipment” means:

7-13      (a) Locomotives and railcars used for the carriage of persons

7-14  or property in interstate commerce.

7-15      (b) Trucks and truck-tractors having a manufacturer’s gross

7-16  vehicle weight rating of more than 10,000 pounds, and trailers,

7-17  semitrailers and passenger buses that are:

7-18          (1) Registered pursuant to the International Registration

7-19  Plan, as adopted by the Department of Motor Vehicles pursuant to

7-20  NRS 706.826; or

7-21          (2) Operated under the authority of a carrier who is

7-22  authorized by the Federal Government to engage in the carriage

7-23  of persons or property in interstate commerce.

7-24      (c) Aircraft operated by an air carrier who is authorized by the

7-25  Federal Government or a foreign government to engage in the

7-26  carriage of persons or property in interstate or foreign commerce.

7-27      (d) Containers designed for use on and component parts

7-28  attached or secured to any of the items described in paragraph (a),

7-29  (b) or (c).

7-30      Sec. 14.  1.  Except as otherwise provided in this section, for

7-31  the purpose of determining the liability of a seller for sales and use

7-32  taxes, a retail sale shall be deemed to take place at the location

7-33  determined pursuant to sections 13 to 18, inclusive, of this act.

7-34      2.  Sections 13 to 18, inclusive, of this act do not:

7-35      (a) Affect any liability of a purchaser or lessee for a use tax.

7-36      (b) Apply to:

7-37          (1) The retail sale or transfer of watercraft, modular

7-38  homes, manufactured homes or mobile homes.

7-39          (2) The retail sale, other than the lease or rental, of motor

7-40  vehicles, trailers, semitrailers or aircraft that do not constitute

7-41  transportation equipment.

7-42      Sec. 15.  Except as otherwise provided in sections 13 to 18,

7-43  inclusive, of this act, the retail sale, excluding the lease or rental,

7-44  of tangible personal property shall be deemed to take place:

8-1  1.  If the property is received by the purchaser at a place of

8-2  business of the seller, at that place of business.

8-3  2.  If the property is not received by the purchaser at a place

8-4  of business of the seller:

8-5  (a) At the location indicated to the seller pursuant to any

8-6  instructions provided for the delivery of the property to the

8-7  purchaser or to another recipient who is designated by the

8-8  purchaser as his donee; or

8-9  (b) If no such instructions are provided and if known by the

8-10  seller, at the location where the purchaser or another recipient

8-11  who is designated by the purchaser as his donee, receives the

8-12  property.

8-13      3.  If subsections 1 and 2 do not apply, at the address of the

8-14  purchaser indicated in the business records of the seller that are

8-15  maintained in the ordinary course of the seller’s business, unless

8-16  the use of that address would constitute bad faith.

8-17      4.  If subsections 1, 2 and 3 do not apply, at the address of the

8-18  purchaser obtained during the consummation of the sale,

8-19  including, if no other address is available, the address of the

8-20  purchaser’s instrument of payment, unless the use of an address

8-21  pursuant to this subsection would constitute bad faith.

8-22      5.  In all other circumstances, at the address from which the

8-23  property was shipped or, if it was delivered electronically, at

8-24  the address from which it was first available for transmission by

8-25  the seller.

8-26      Sec. 16.  1.  Except as otherwise provided in this section and

8-27  sections 14, 17 and 18 of this act, the lease or rental of tangible

8-28  personal property shall be deemed to take place as follows:

8-29      (a) If the lease or rental requires recurring periodic payments,

8-30  for the purposes of:

8-31          (1) The first periodic payment, the location of the lease or

8-32  rental shall be deemed to take place at the location determined

8-33  pursuant to section 15 of this act; and

8-34          (2) Subsequent periodic payments, the location of the lease

8-35  or rental shall be deemed to take place at the primary location of

8-36  the property. For the purposes of this subparagraph, the primary

8-37  location of the property shall be deemed to be the address for the

8-38  property provided by the lessee and set forth in the records

8-39  maintained by the lessor in the ordinary course of business,

8-40  regardless of the intermittent use of the property at different

8-41  locations, unless the use of that address would constitute bad faith.

8-42      (b) If the lease or rental does not require recurring periodic

8-43  payments, the location of the lease or rental shall be deemed to

8-44  take place at the location determined pursuant to section 15 of this

8-45  act.

9-1  2.  This section does not apply to the determination of any

9-2  liability of a seller for any sales or use taxes imposed on:

9-3  (a) The acquisition of tangible personal property for lease; or

9-4  (b) Any accelerated or lump-sum payments made pursuant to a

9-5  lease or rental of tangible personal property.

9-6  Sec. 17.  1.  Except as otherwise provided in this section and

9-7  section 14 of this act, the lease or rental of motor vehicles, trailers,

9-8  semitrailers or aircraft that do not constitute transportation

9-9  equipment shall be deemed to take place:

9-10      (a) If the lease or rental requires recurring periodic payments,

9-11  at the primary location of the property. For the purposes of this

9-12  paragraph, the primary location of the property shall be deemed to

9-13  be the address for the property provided by the lessee and set forth

9-14  in the records maintained by the lessor in the ordinary course of

9-15  business, regardless of the intermittent use of the property at

9-16  different locations, unless the use of that address would constitute

9-17  bad faith.

9-18      (b) If the lease or rental does not require recurring periodic

9-19  payments, at the location determined pursuant to section 15 of this

9-20  act.

9-21      2.  This section does not apply to the determination of any

9-22  liability of a seller for any sales or use taxes imposed on:

9-23      (a) The acquisition of tangible personal property for lease; or

9-24      (b) Any accelerated or lump-sum payments made pursuant to a

9-25  lease or rental of tangible personal property.

9-26      Sec. 18.  Except as otherwise provided in section 14 of this

9-27  act, the lease or rental of transportation equipment shall be

9-28  deemed to take place at the location determined pursuant to

9-29  section 15 of this act.

9-30      Sec. 19.  1.  A purchaser may purchase tangible personal

9-31  property without paying to the seller at the time of purchase the

9-32  sales and use taxes that are due thereon if:

9-33      (a) The seller does not maintain a place of business in this

9-34  state; and

9-35      (b) The purchaser has obtained a direct pay permit pursuant to

9-36  the provisions of this section.

9-37      2.  A purchaser who wishes to obtain a direct pay permit must

9-38  file with the Department an application for such a permit that:

9-39      (a) Is on a form prescribed by the Department; and

9-40      (b) Sets forth such information as is required by the

9-41  Department.

9-42      3.  The application must be signed by:

9-43      (a) The owner if he is a natural person;

9-44      (b) A member or partner if the seller is an association or

9-45  partnership; or

10-1      (c) An executive officer or some other person specifically

10-2  authorized to sign the application if the seller is a corporation.

10-3  Written evidence of the signer’s authority must be attached to the

10-4  application.

10-5      4.  Any purchaser who obtains a direct pay permit pursuant to

10-6  this section shall:

10-7      (a) Determine the amount of sales and use taxes that are due

10-8  and payable to this state or a local government of this state upon

10-9  the purchase of tangible personal property from such a seller; and

10-10     (b) Report and pay those taxes to the appropriate authority.

10-11     5.  If a purchaser who has obtained a direct pay permit

10-12  purchases tangible personal property that will be available for use

10-13  digitally or electronically in more than one jurisdiction, he may, to

10-14  determine the amount of tax that is due to this state or to a local

10-15  government of this state, use any reasonable, consistent and

10-16  uniform method to apportion the use of the property among the

10-17  various jurisdictions in which it will be used that is supported by

10-18  the purchaser’s business records as they exist at the time of the

10-19  consummation of the sale.

10-20     Sec. 20.  1.  A purchaser who:

10-21     (a) Has not obtained a direct pay permit pursuant to section 19

10-22  of this act;

10-23     (b) Purchases tangible personal property that is subject to

10-24  sales and use taxes; and

10-25     (c) Has knowledge at the time of purchase that the purchased

10-26  property will be available for use digitally or electronically in more

10-27  than one jurisdiction,

10-28  shall give written notice of that fact to the seller at the time of

10-29  purchase. The notice must be given in a form required by the

10-30  Department.

10-31     2.  Notwithstanding the provisions of sections 13 to 18,

10-32  inclusive, of this act:

10-33     (a) Upon receipt of such a notice by a seller who does not

10-34  maintain a place of business in this state, the seller is relieved of

10-35  any liability to collect, pay or remit any use tax that is due and the

10-36  purchaser thereafter assumes the liability to pay that tax directly to

10-37  the appropriate authority.

10-38     (b) To determine the tax due to this state or to a local

10-39  government of this state:

10-40         (1) A purchaser who delivers a notice pursuant to

10-41  subsection 1 to a seller who does not maintain a place of business

10-42  in this state; and

10-43         (2) A seller who maintains a place of business in this state

10-44  and receives a notice pursuant to subsection 1,

11-1  may use any reasonable, consistent and uniform method to

11-2  apportion the use of the property among the various jurisdictions

11-3  in which it will be used that is supported by the business records of

11-4  the purchaser or seller as they exist at the time of the

11-5  consummation of the sale.

11-6      3.  Any notice given pursuant to subsection 1 applies to all

11-7  future sales of property made by the seller to the purchaser, except

11-8  for the sale of property that is specifically apportioned pursuant to

11-9  subsection 2 or to property that will not be used in multiple

11-10  jurisdictions, until the purchaser delivers a written notice of

11-11  revocation to the seller.

11-12     Sec. 21.  1.  A purchaser of direct mail must provide to the

11-13  seller at the time of the purchase:

11-14     (a) If the seller does not maintain a place of business in this

11-15  state:

11-16         (1) A form for direct mail approved by the Department;

11-17         (2) An informational statement of the jurisdictions to which

11-18  the direct mail will be delivered to recipients; or

11-19         (3) The direct pay permit of the purchaser issued pursuant

11-20  to section 19 of this act; or

11-21     (b) If the seller maintains a place of business in this state, an

11-22  informational statement of the jurisdictions to which the direct

11-23  mail will be delivered to recipients.

11-24     2.  Notwithstanding the provisions of sections 13 to 18,

11-25  inclusive, of this act:

11-26     (a) Upon the receipt pursuant to subsection 1 of:

11-27         (1) A form for direct mail by a seller who does not maintain

11-28  a place of business in this state:

11-29             (I) The seller is relieved of any liability for the

11-30  collection, payment or remission of any sales or use taxes

11-31  applicable to the purchase of direct mail by that purchaser from

11-32  that seller; and

11-33             (II) The purchaser is liable for any sales or use taxes

11-34  applicable to the purchase of direct mail by that purchaser from

11-35  that seller.

11-36  Any form for direct mail provided to a seller pursuant to this

11-37  subparagraph applies to all future sales of direct mail made by

11-38  that seller to that purchaser until the purchaser delivers a written

11-39  notice of revocation to the seller.

11-40         (2) An informational statement by any seller, the seller

11-41  shall collect, pay or remit any applicable sales and use taxes in

11-42  accordance with the information contained in that statement. In

11-43  the absence of bad faith, the seller is relieved of any liability to

11-44  collect, pay or remit any sales and use taxes other than in

11-45  accordance with that information received.

12-1      (b) If a purchaser of direct mail does not comply with

12-2  subsection 1, the seller shall determine the location of the sale

12-3  pursuant to subsection 5 of section 15 of this act and collect, pay

12-4  or remit any applicable sales and use taxes. This paragraph does

12-5  not limit the liability of the purchaser for the payment of any of

12-6  those taxes.

12-7      3.  As used in this section, “direct mail” means printed

12-8  material delivered or distributed by the United States Postal

12-9  Service or another delivery service to a mass audience or to

12-10  addresses contained on a mailing list provided by a purchaser or

12-11  at the direction of a purchaser when the cost of the items

12-12  purchased is not billed directly to the recipients. The term includes

12-13  tangible personal property supplied directly or indirectly by the

12-14  purchaser to the seller of the direct mail for inclusion in the

12-15  package containing the printed material. The term does not

12-16  include multiple items of printed material delivered to a single

12-17  address.

12-18     Sec. 22.  Notwithstanding the provisions of any other specific

12-19  statute, if the boundary of a local government that has imposed a

12-20  sales or use tax is changed, any change in the rate of that tax

12-21  which results therefrom becomes effective on the first day of the

12-22  first calendar quarter that begins at least 60 days after the

12-23  effective date of the change in the boundary.

12-24     Sec. 23.  Notwithstanding the provisions of any other specific

12-25  statute, if any sales or use tax is due and payable on a Saturday,

12-26  Sunday or legal holiday, the tax may be paid on the next

12-27  succeeding business day.

12-28     Sec. 24.  Any invoice, billing or other document given to a

12-29  purchaser that indicates the sales price for which tangible

12-30  personal property is sold must state separately any amount

12-31  received by the seller for:

12-32     1.  Services that are necessary to complete the sale, including

12-33  delivery and installation charges;

12-34     2.  The value of exempt property given to the purchaser if

12-35  taxable and exempt property are sold as a single product or piece

12-36  of merchandise; and

12-37     3.  Credit given to the purchaser.

12-38     Sec. 25.  NRS 360B.030 is hereby amended to read as follows:

12-39     360B.030  As used in NRS 360B.010 to 360B.170, inclusive,

12-40  and sections 5 to 24, inclusive, of this act, unless the context

12-41  otherwise requires, the words and terms defined in NRS 360B.040

12-42  to 360B.100, inclusive, and sections 5 to 8, inclusive, of this act

12-43  have the meanings ascribed to them in those sections.

 

 

13-1      Sec. 26.  NRS 360B.070 is hereby amended to read as follows:

13-2      360B.070  “Sales tax” means the tax levied by section 19 of

13-3  chapter 397, Statutes of Nevada 1955, at page 766, and any similar

13-4  tax authorized by or pursuant to a specific statute[.] or special

13-5  legislative act of this state or the laws of another state that is a

13-6  member of the Agreement.

13-7      Sec. 27.  NRS 360B.080 is hereby amended to read as follows:

13-8      360B.080  “Seller” means any person making sales, leases or

13-9  rentals of tangible personal property . [or services.]

13-10     Sec. 28.  NRS 360B.100 is hereby amended to read as follows:

13-11     360B.100  “Use tax” means the tax levied by section 34 of

13-12  chapter 397, Statutes of Nevada 1955, at page 769, as amended by

13-13  section 3 of chapter 513, Statutes of Nevada 1985, at page 1562, and

13-14  any similar tax authorized by or pursuant to a specific statute[.] or

13-15  special legislative act of this state or the laws of another state that

13-16  is a member of the Agreement.

13-17     Sec. 29.  NRS 360B.110 is hereby amended to read as follows:

13-18     360B.110  The Nevada Tax Commission shall:

13-19     1.  Except as otherwise provided in NRS 360B.120, enter into

13-20  the Agreement.

13-21     2.  Act jointly with other states that are members of the

13-22  Agreement to establish standards for:

13-23     (a) Certification of a certified service provider;

13-24     (b) A certified automated system; [and]

13-25     (c) Performance of multistate sellers[.] ; and

13-26     (d) An address-based system for determining the applicable

13-27  sales and use taxes.

13-28     3.  Take all other actions reasonably required to implement the

13-29  provisions of NRS 360B.010 to 360B.170, inclusive, and sections 5

13-30  to 24, inclusive, of this act, and the provisions of the Agreement,

13-31  including, without limitation[:] , the:

13-32     (a) Adoption of regulations to carry out the provisions of NRS

13-33  360B.010 to 360B.170, inclusive[;] , and sections 5 to 24,

13-34  inclusive, of this act, and the provisions of the Agreement; and

13-35     (b) Procurement, jointly with other member states, of goods and

13-36  services.

13-37     4.  Represent, or have its designee represent, the State of

13-38  Nevada before the other states that are signatories to the Agreement.

13-39     5.  Designate not more than four delegates, who may be

13-40  members of the Commission, to represent the State of Nevada for

13-41  the purposes of reviewing or amending the Agreement.

13-42     Sec. 30.  NRS 361.186 is hereby amended to read as follows:

13-43     361.186  1.  A taxpayer may collect an admission fee for the

13-44  exhibition of fine art otherwise exempt from taxation pursuant to

13-45  NRS 361.068 if the taxpayer offers to residents of the State of

14-1  Nevada a discount of 50 percent from any admission fee charged to

14-2  nonresidents. The discounted admission fee for residents must be

14-3  offered at any time the exhibition is open to the public and

14-4  admission fees are being charged.

14-5      2.  Except as otherwise provided in subsection 5, if a taxpayer

14-6  collects a fee for the exhibition of fine art otherwise exempt from

14-7  taxation pursuant to NRS 361.068, the exemption pertaining to that

14-8  fine art for the fiscal year must be reduced by the net revenue

14-9  derived by the taxpayer for that fiscal year. The exemption

14-10  pertaining to fine art for a particular fiscal year must not be reduced

14-11  below zero, regardless of the amount of the net revenue derived by

14-12  the taxpayer for that fiscal year.

14-13     3.  A tax resulting from the operation of this section is due with

14-14  the tax otherwise due under the taxpayer’s first statement filed

14-15  pursuant to NRS 361.265 after the 15th day of the fourth month

14-16  after the end of the fiscal year in which the net revenue was received

14-17  or, if no such statement is required to be filed, under a statement of

14-18  the net revenue filed on or before the last day of the fourth month

14-19  after the end of that fiscal year.

14-20     4.  A taxpayer who is required to pay a tax resulting from the

14-21  operation of this section may receive a credit against the tax for any

14-22  donations made by the taxpayer to the State Arts Council, the

14-23  Division of Museums and History Dedicated Trust Fund established

14-24  pursuant to NRS 381.0031, a museum that provides exhibits

14-25  specifically related to nature or a museum that provides exhibits

14-26  specifically related to children, if the taxpayer:

14-27     (a) Made the donation before the date that either statement

14-28  required pursuant to subsection 3 is due; and

14-29     (b) Provides to the county assessor documentation of the

14-30  donation at the time that he files the statement required pursuant to

14-31  subsection 3.

14-32     5.  If a taxpayer qualifies for and avails himself of [both of] the

14-33  exemptions from taxation provided by NRS 361.068 and 374.291[,]

14-34  and section 57.1 of chapter 397, Statutes of Nevada 1955, the

14-35  reduction of the exemptions by the net revenue derived by the

14-36  taxpayer, as required pursuant to subsection 2 of this section , [and]

14-37  subsection 2 of NRS 374.2911[,] and subsection 2 of section 57.2

14-38  of chapter 397, Statutes of Nevada 1955, must be carried out in

14-39  such a manner that the total net revenue derived by the taxpayer is

14-40  first applied to reduce the [exemption] exemptions provided

14-41  pursuant to NRS 374.291[.] and section 57.1 of chapter 397,

14-42  Statutes of Nevada 1955. If the net revenue exceeds the amount of

14-43  the [exemption] exemptions provided pursuant to NRS 374.291[,]

14-44  and section 57.1 of chapter 397, Statutes of Nevada 1955, the

14-45  remaining net revenue must be applied to reduce the exemption

15-1  provided pursuant to NRS 361.068. If the net revenue is less than or

15-2  equal to the [exemption] exemptions provided pursuant to NRS

15-3  374.291 and section 57.1 of chapter 397, Statutes of Nevada 1955,

15-4  for that fiscal year, the exemption provided pursuant to NRS

15-5  361.068 must not be reduced.

15-6      6.  For the purposes of this section:

15-7      (a) “Direct costs of owning and exhibiting the fine art” does not

15-8  include any allocation of the general and administrative expense of a

15-9  business or organization that conducts activities in addition to the

15-10  operation of the facility in which the fine art is displayed, including,

15-11  without limitation, an allocation of the salary and benefits of a

15-12  senior executive who is responsible for the oversight of the facility

15-13  in which the fine art is displayed and who has substantial

15-14  responsibilities related to the other activities of the business or

15-15  organization.

15-16     (b) “Net revenue” means the amount of the fees collected for

15-17  exhibiting the fine art during that fiscal year less the following paid

15-18  or made during that fiscal year:

15-19         (1) The direct costs of owning and exhibiting the fine art; and

15-20         (2) The cost of educational programs associated with the

15-21  taxpayer’s public display of fine art, including the cost of meeting

15-22  the requirements of sub-subparagraph (IV) of subparagraph (1) of

15-23  paragraph (b) of subsection 5 of NRS 361.068.

15-24     Sec. 31.  NRS 361.186 is hereby amended to read as follows:

15-25     361.186  1.  A taxpayer may collect an admission fee for the

15-26  exhibition of fine art otherwise exempt from taxation pursuant to

15-27  NRS 361.068 if the taxpayer offers to residents of the State of

15-28  Nevada a discount of 50 percent from any admission fee charged to

15-29  nonresidents. The discounted admission fee for residents must be

15-30  offered at any time the exhibition is open to the public and

15-31  admission fees are being charged.

15-32     2.  Except as otherwise provided in subsection 5, if a taxpayer

15-33  collects a fee for the exhibition of fine art otherwise exempt from

15-34  taxation pursuant to NRS 361.068, the exemption pertaining to that

15-35  fine art for the fiscal year must be reduced by the net revenue

15-36  derived by the taxpayer for that fiscal year. The exemption

15-37  pertaining to fine art for a particular fiscal year must not be reduced

15-38  below zero, regardless of the amount of the net revenue derived by

15-39  the taxpayer for that fiscal year.

15-40     3.  A tax resulting from the operation of this section is due with

15-41  the tax otherwise due under the taxpayer’s first statement filed

15-42  pursuant to NRS 361.265 after the 15th day of the fourth month

15-43  after the end of the fiscal year in which the net revenue was received

15-44  or, if no such statement is required to be filed, under a statement of

16-1  the net revenue filed on or before the last day of the fourth month

16-2  after the end of that fiscal year.

16-3      4.  A taxpayer who is required to pay a tax resulting from the

16-4  operation of this section may receive a credit against the tax for any

16-5  donations made by the taxpayer to the State Arts Council, the

16-6  Division of Museums and History Dedicated Trust Fund established

16-7  pursuant to NRS 381.0031, a museum that provides exhibits

16-8  specifically related to nature or a museum that provides exhibits

16-9  specifically related to children, if the taxpayer:

16-10     (a) Made the donation before the date that either statement

16-11  required pursuant to subsection 3 is due; and

16-12     (b) Provides to the county assessor documentation of the

16-13  donation at the time that he files the statement required pursuant to

16-14  subsection 3.

16-15     5.  [If a taxpayer qualifies for and avails himself of both of the

16-16  exemptions from taxation provided by NRS 361.068 and 374.291,

16-17  the reduction of the exemptions by the net revenue derived by the

16-18  taxpayer, as required pursuant to subsection 2 of this section and

16-19  subsection 2 of NRS 374.2911, must be carried out in such a manner

16-20  that the total net revenue derived by the taxpayer is first applied to

16-21  reduce the exemption provided pursuant to NRS 374.291. If the net

16-22  revenue exceeds the amount of the exemption provided pursuant to

16-23  NRS 374.291, the remaining net revenue must be applied to reduce

16-24  the exemption provided pursuant to NRS 361.068. If the net revenue

16-25  is less than or equal to the exemption provided pursuant to NRS

16-26  374.291 for that fiscal year, the exemption provided pursuant to

16-27  NRS 361.068 must not be reduced.

16-28     6.] For the purposes of this section:

16-29     (a) “Direct costs of owning and exhibiting the fine art” does not

16-30  include any allocation of the general and administrative expense of a

16-31  business or organization that conducts activities in addition to the

16-32  operation of the facility in which the fine art is displayed, including,

16-33  without limitation, an allocation of the salary and benefits of a

16-34  senior executive who is responsible for the oversight of the facility

16-35  in which the fine art is displayed and who has substantial

16-36  responsibilities related to the other activities of the business or

16-37  organization.

16-38     (b) “Net revenue” means the amount of the fees collected for

16-39  exhibiting the fine art during that fiscal year less the following paid

16-40  or made during that fiscal year:

16-41         (1) The direct costs of owning and exhibiting the fine art; and

16-42         (2) The cost of educational programs associated with the

16-43  taxpayer’s public display of fine art, including the cost of meeting

16-44  the requirements of sub-subparagraph (IV) of subparagraph (1) of

16-45  paragraph (b) of subsection 5 of NRS 361.068.

17-1      Sec. 32.  Chapter 372 of NRS is hereby amended by adding

17-2  thereto the provisions set forth as sections 33 to 36, inclusive, of this

17-3  act.

17-4      Sec. 33.  This chapter must be administered in accordance

17-5  with the provisions of chapter 360B of NRS.

17-6      Sec. 34.  In determining the amount of taxes due pursuant to

17-7  this chapter:

17-8      1.  The amount due must be computed to the third decimal

17-9  place and rounded to a whole cent using a method that rounds up

17-10  to the next cent if the numeral in the third decimal place is greater

17-11  than 4.

17-12     2.  A retailer may compute the amount due on a transaction

17-13  on the basis of each item involved in the transaction or a single

17-14  invoice for the entire transaction.

17-15     Sec. 35.  1.  If a purchaser wishes to claim an exemption

17-16  from the taxes imposed by this chapter, the retailer shall obtain

17-17  such identifying information from the purchaser at the time of

17-18  sale as is required by the Department.

17-19     2.  The Department shall, to the extent feasible, establish an

17-20  electronic system for submitting a request for an exemption. A

17-21  purchaser is not required to provide a signature to claim an

17-22  exemption if the request is submitted electronically.

17-23     3.  The Department may establish a system whereby a

17-24  purchaser who is exempt from the payment of the taxes imposed

17-25  by this chapter is issued an identification number that can be

17-26  presented to the retailer at the time of sale.

17-27     4.  A retailer shall maintain such records of exempt

17-28  transactions as are required by the Department.

17-29     5.  Except as otherwise provided in this subsection, a retailer

17-30  who complies with the provisions of this section is not liable for

17-31  the payment of any tax imposed by this chapter if the purchaser

17-32  improperly claims an exemption. If the purchaser improperly

17-33  claims an exemption, the purchaser is liable for the payment of the

17-34  tax. The provisions of this subsection do not apply if the retailer

17-35  fraudulently fails to collect the tax or solicits a purchaser to

17-36  participate in an unlawful claim of an exemption.

17-37     Sec. 36.  1.  If a retailer is unable to collect all or part of the

17-38  sales price of a sale, he is entitled to receive a deduction from his

17-39  taxable sales for that bad debt.

17-40     2.  Any deduction that is claimed pursuant to this section may

17-41  not include interest.

17-42     3.  The amount of any deduction claimed must equal the

17-43  amount of a deduction that may be claimed pursuant to 26 U.S.C.

17-44  § 166 for that sale minus:

17-45     (a) Any finance charge or interest charged as part of the sale;

18-1      (b) Any sales or use tax charged on the sales price;

18-2      (c) Any amount not paid on the sales price because the

18-3  tangible personal property that was sold has remained in the

18-4  possession of the retailer until the full sales price is paid;

18-5      (d) Any expense incurred in attempting to collect the bad debt;

18-6  and

18-7      (e) The value of any property sold that has been repossessed by

18-8  the retailer.

18-9      4.  A bad debt may be claimed as a deduction on the return

18-10  that covers the period during which the bad debt is written off in

18-11  the business records of the retailer that are maintained in the

18-12  ordinary course of the retailer’s business and is eligible to be

18-13  claimed as a deduction pursuant to 26 U.S.C. § 166 or, if the

18-14  retailer is not required to file a federal income tax return, would

18-15  be eligible to be claimed as a deduction pursuant to 26 U.S.C. §

18-16  166.

18-17     5.  If a bad debt for which a deduction has been claimed is

18-18  subsequently collected in whole or in part, the tax on the amount

18-19  so collected must be reported on the return that covers the period

18-20  in which the collection is made.

18-21     6.  If the amount of the bad debt is greater than the amount of

18-22  the taxable sales reported for the period during which the bad debt

18-23  is claimed as a deduction, a claim for a refund may be filed

18-24  pursuant to NRS 372.630 to 372.720, inclusive, except that the

18-25  time within which the claim may be filed begins on the date on

18-26  which the return that included the deduction was filed.

18-27     7.  If the retailer has contracted with a certified service

18-28  provider for the remittance of the tax due under this chapter, the

18-29  service provider may, on behalf of the retailer, claim any

18-30  deduction to which the retailer is entitled pursuant to this section.

18-31  The service provider shall credit or refund the full amount of any

18-32  deduction or refund received pursuant to this section to the

18-33  retailer.

18-34     8.  For the purposes of reporting a payment received on a bad

18-35  debt for which a deduction has been claimed, the payment must

18-36  first be applied to the sales price of the property sold and the tax

18-37  due thereon, and then to any interest, service charge or other

18-38  charge that was charged as part of the sale.

18-39     9.  If the records of a retailer indicate that a bad debt may be

18-40  allocated among other states that are members of the Streamlined

18-41  Sales and Use Tax Agreement, the retailer may allocate the bad

18-42  debt among those states.

18-43     10.  Except as otherwise provided in subsection 11, upon

18-44  determining that a retailer has filed a return which contains one

19-1  or more violations of the provisions of this section, the Department

19-2  shall:

19-3      (a) For the first return of any retailer which contains one or

19-4  more violations, issue a letter of warning to the retailer which

19-5  provides an explanation of the violation or violations contained in

19-6  the return.

19-7      (b) For the first or second return, other than a return

19-8  described in paragraph (a), in any calendar year which contains

19-9  one or more violations, assess a penalty equal to the amount of the

19-10  deduction claimed or $1,000, whichever is less.

19-11     (c) For the third and each subsequent return in any calendar

19-12  year which contains one or more violations, assess a penalty of

19-13  three times the amount of the deduction claimed or $3,000,

19-14  whichever is less.

19-15     11.  For the purposes of subsection 10, if the first violation of

19-16  this section by any retailer was determined by the Department

19-17  through an audit which covered more than one return of the

19-18  retailer, the Department shall treat all returns which were

19-19  determined through the same audit to contain a violation or

19-20  violations in the manner provided in paragraph (a) of

19-21  subsection 10.

19-22     12.  As used in this section:

19-23     (a) “Bad debt” means a debt that may be deducted pursuant to

19-24  26 U.S.C. § 166.

19-25     (b) “Certified service provider” has the meaning ascribed to it

19-26  in NRS 360B.060.

19-27     Sec. 37.  NRS 372.123 is hereby amended to read as follows:

19-28     372.123  1.  If the State or a political subdivision of the State

19-29  enters into a contract pursuant to chapter 332 or 333 of NRS on or

19-30  after June 5, 2001, with a person who:

19-31     (a) Sells tangible personal property in this state; and

19-32     (b) Has not obtained a permit pursuant to NRS 372.125 [because

19-33  he does not maintain a place of business within this state,] or

19-34  registered pursuant to section 9 of this act,

19-35  the contract must include a provision requiring the person to obtain

19-36  a permit pursuant to NRS 372.125 or to register pursuant to section

19-37  9 of this act, and to [agree to] collect and pay the taxes imposed

19-38  pursuant to this chapter on the sale of tangible personal property in

19-39  this state. For the purposes of [the] a permit obtained pursuant to

19-40  NRS 372.125, the person shall be deemed to have a single place of

19-41  business in this state.

19-42     2.  The Department may require a state agency or local

19-43  government to submit such documentation as is necessary to ensure

19-44  compliance with this section.

 

20-1      Sec. 38.  NRS 372.125 is hereby amended to read as follows:

20-2      372.125  1.  Every person desiring to engage in or conduct

20-3  business as a seller within this state must register with the

20-4  Department pursuant to section 9 of this act or file with the

20-5  Department an application for a permit for each place of business.

20-6      2.  Every application for a permit must:

20-7      (a) Be made upon a form prescribed by the Department.

20-8      (b) Set forth the name under which the applicant transacts or

20-9  intends to transact business and the location of his place or places of

20-10  business.

20-11     (c) Set forth other information which the Department may

20-12  require.

20-13     3.  The application must be signed by [the] :

20-14     (a) The owner if he is a natural person; [in the case of an

20-15  association or partnership, by a]

20-16     (b) A member or partner[; in the case of a corporation, by an] if

20-17  the seller is an association or partnership; or

20-18     (c) An executive officer or some person specifically authorized

20-19  [by the corporation] to sign the application[, to which must be

20-20  attached the written evidence of his authority.] if the seller is a

20-21  corporation. Written evidence of the signer’s authority must be

20-22  attached to the application.

20-23     Sec. 39.  NRS 372.125 is hereby amended to read as follows:

20-24     372.125  1.  Every person desiring to engage in or conduct

20-25  business as a seller within this state must register with the

20-26  Department pursuant to section 9 of this act or file with the

20-27  Department an application for a permit for each place of business[.]

20-28  , unless he intends to sell vehicles and will make fewer than three

20-29  retail sales of vehicles during any 12-month period.

20-30     2.  Every application for a permit must:

20-31     (a) Be made upon a form prescribed by the Department.

20-32     (b) Set forth the name under which the applicant transacts or

20-33  intends to transact business and the location of his place or places of

20-34  business.

20-35     (c) Set forth other information which the Department may

20-36  require.

20-37     3.  The application must be signed by:

20-38     (a) The owner if he is a natural person;

20-39     (b) A member or partner if the seller is an association or

20-40  partnership; or

20-41     (c) An executive officer or some person specifically authorized

20-42  to sign the application if the seller is a corporation. Written evidence

20-43  of the signer’s authority must be attached to the application.

 

 

21-1      Sec. 40.  NRS 372.160 is hereby amended to read as follows:

21-2      372.160  A resale certificate relieves the seller from the burden

21-3  of proof only if taken in good faith from a person who [is] :

21-4      1.  Is engaged in the business of selling tangible personal

21-5  property [and who holds the permit provided for in NRS 372.125 to

21-6  372.180, inclusive, and who, at] ;

21-7      2.  Is registered pursuant to section 9 of this act or holds a

21-8  permit issued pursuant to NRS 372.135; and

21-9      3.  At the time of purchasing the tangible personal property,

21-10  intends to sell it in the regular course of business or is unable to

21-11  ascertain at the time of purchase whether the property will be sold or

21-12  will be used for some other purpose.

21-13     Sec. 41.  NRS 372.165 is hereby amended to read as follows:

21-14     372.165  1.  [The] A resale certificate must:

21-15     (a) Be signed by and bear the name and address of the

21-16  purchaser.

21-17     (b) Indicate that the purchaser is registered pursuant to section

21-18  9 of this act or contain the number of the permit issued to the

21-19  purchaser[.] pursuant to NRS 372.135.

21-20     (c) Indicate the general character of the tangible personal

21-21  property sold by the purchaser in the regular course of business.

21-22     2.  The certificate must be substantially in such form as the

21-23  Department may prescribe.

21-24     Sec. 42.  NRS 372.230 is hereby amended to read as follows:

21-25     372.230  A resale certificate relieves the person selling the

21-26  property from the burden of proof only if taken in good faith from a

21-27  person who [is] :

21-28     1.  Is engaged in the business of selling tangible personal

21-29  property [and who holds the permit provided for by NRS 372.125 to

21-30  372.180, inclusive, and who, at] ;

21-31     2.  Is registered pursuant to section 9 of this act or holds a

21-32  permit issued pursuant to NRS 372.135; and

21-33     3.  At the time of purchasing the tangible personal property,

21-34  intends to sell it in the regular course of business or is unable to

21-35  ascertain at the time of purchase whether the property will be sold or

21-36  will be used for some other purpose.

21-37     Sec. 43.  NRS 372.235 is hereby amended to read as follows:

21-38     372.235  1.  [The] A resale certificate must:

21-39     (a) Be signed and bear the name and address of the purchaser.

21-40     (b) Indicate that the purchaser is registered pursuant to section

21-41  9 of this act or contain the number of the permit issued to the

21-42  purchaser[.] pursuant to NRS 372.135.

21-43     (c) Indicate the general character of the tangible personal

21-44  property sold by the purchaser in the regular course of business.

22-1      2.  The certificate must be substantially in such form as the

22-2  Department may prescribe.

22-3      Sec. 44.  NRS 372.355 is hereby amended to read as follows:

22-4      372.355  Except as otherwise provided in NRS 372.380[,] or

22-5  required by the Department pursuant to section 9 of this act, the

22-6  taxes imposed by this chapter are payable to the Department

22-7  monthly on or before the last day of the month next succeeding each

22-8  month.

22-9      Sec. 45.  NRS 372.360 is hereby amended to read as follows:

22-10     372.360  Except as otherwise required by the Department

22-11  pursuant to section 9 of this act:

22-12     1.  On or before the last day of the month following each

22-13  reporting period, a return for the preceding period must be filed with

22-14  the Department in such form as the Department may prescribe. Any

22-15  return required to be filed by this section must be combined with

22-16  any return required to be filed pursuant to the provisions of

22-17  chapter 374 of NRS.

22-18     2.  For purposes of [the] :

22-19     (a) The sales tax a return must be filed by each seller. [For

22-20  purposes of the]

22-21     (b) The use tax a return must be filed by each retailer

22-22  maintaining a place of business in the state and by each person

22-23  purchasing tangible personal property, the storage, use or other

22-24  consumption of which is subject to the use tax, who has not paid the

22-25  use tax due . [to a retailer required to collect the tax.]

22-26     3.  Returns must be signed by the person required to file the

22-27  return or by his authorized agent but need not be verified by oath.

22-28     Sec. 46.  NRS 372.365 is hereby amended to read as follows:

22-29     372.365  1.  Except as otherwise required by the Department

22-30  pursuant to section 9 of this act or provided in sections 13 to 18,

22-31  inclusive, of this act:

22-32     (a) For the purposes of the sales tax:

22-33     [(a)] (1) The return must show the gross receipts of the seller

22-34  during the preceding reporting period.

22-35     [(b)] (2) The gross receipts must be segregated and reported

22-36  separately for each county to which a sale of tangible personal

22-37  property pertains.

22-38     [(c)] (3) A sale pertains to the county in this state in which the

22-39  tangible personal property is or will be delivered to the purchaser or

22-40  his agent or designee.

22-41     [2.] (b) For purposes of the use tax:

22-42     [(a)] (1) In the case of a return filed by a retailer, the return

22-43  must show the total sales price of the property purchased by him, the

22-44  storage, use or consumption of which property became subject to the

22-45  use tax during the preceding reporting period.

23-1      [(b)] (2) The sales price must be segregated and reported

23-2  separately for each county to which a purchase of tangible personal

23-3  property pertains.

23-4      [(c)] (3) If the property was [brought] :

23-5             (I) Brought into this state by the purchaser or his agent or

23-6  designee, the sale pertains to the county in this state in which the

23-7  property is or will be first used, stored or otherwise consumed.

23-8  [Otherwise,]

23-9             (II) Not brought into this state by the purchaser or his

23-10  agent or designee, the sale pertains to the county in this state in

23-11  which the property was delivered to the purchaser or his agent or

23-12  designee.

23-13     [3.] 2.  In case of a return filed by a purchaser, the return must

23-14  show the total sales price of the property purchased by him, the

23-15  storage, use or consumption of which became subject to the use tax

23-16  during the preceding reporting period and indicate the county in this

23-17  state in which the property was first used, stored or consumed.

23-18     [4.] 3.  The return must also show the amount of the taxes for

23-19  the period covered by the return and such other information as the

23-20  Department deems necessary for the proper administration of this

23-21  chapter.

23-22     [5.  If a retailer:

23-23     (a) Is unable to collect all or part of the sales price of a sale, the

23-24  amount of which was included in the gross receipts reported for a

23-25  previous reporting period; and

23-26     (b) Has taken a deduction on his federal income tax return

23-27  pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to

23-28  collect,

23-29  he is entitled to receive a credit for the amount of sales tax paid on

23-30  account of that uncollected sales price. The credit may be used

23-31  against the amount of sales tax that the retailer is subsequently

23-32  required to pay pursuant to this chapter.

23-33     6.  If the Internal Revenue Service of the Department of the

23-34  Treasury disallows a deduction described in paragraph (b) of

23-35  subsection 5 and the retailer claimed a credit on a return for a

23-36  previous reporting period pursuant to subsection 5, the retailer shall

23-37  include the amount of that credit in the amount of taxes reported

23-38  pursuant to subsection 4 in the first return filed with the Department

23-39  after the deduction is disallowed.

23-40     7.  If a retailer collects all or part of the sales price for which he

23-41  claimed a credit on a return for a previous reporting period pursuant

23-42  to subsection 5, he shall include:

23-43     (a) The amount collected in the gross receipts reported pursuant

23-44  to paragraph (a) of subsection 1; and

24-1      (b) The sales tax payable on the amount collected in the amount

24-2  of taxes reported pursuant to subsection 4,

24-3  in the first return filed with the Department after that collection.

24-4      8.] 4.  Except as otherwise provided in subsection [9,] 5, upon

24-5  determining that a retailer has filed a return which contains one or

24-6  more violations of the provisions of this section, the Department

24-7  shall:

24-8      (a) For the first return of any retailer which contains one or more

24-9  violations, issue a letter of warning to the retailer which provides an

24-10  explanation of the violation or violations contained in the return.

24-11     (b) For the first or second return, other than a return described in

24-12  paragraph (a), in any calendar year which contains one or more

24-13  violations, assess a penalty equal to the amount of the tax which was

24-14  not reported or was reported for the wrong county or $1,000,

24-15  whichever is less.

24-16     (c) For the third and each subsequent return in any calendar year

24-17  which contains one or more violations, assess a penalty of three

24-18  times the amount of the tax which was not reported or was reported

24-19  for the wrong county or $3,000, whichever is less.

24-20     [9.] 5. For the purposes of subsection [8,] 4, if the first violation

24-21  of this section by any retailer was determined by the Department

24-22  through an audit which covered more than one return of the retailer,

24-23  the Department shall treat all returns which were determined

24-24  through the same audit to contain a violation or violations in the

24-25  manner provided in paragraph (a) of subsection [8.] 4.

24-26     Sec. 47.  NRS 372.370 is hereby amended to read as follows:

24-27     372.370  [The]

24-28     1.  Except as otherwise provided in subsection 2, a taxpayer

24-29  shall deduct and withhold from the taxes otherwise due from him

24-30  1.25 percent of it to reimburse himself for the cost of collecting the

24-31  tax.

24-32     2.  The regulations adopted by the Department pursuant to

24-33  NRS 360B.110 may authorize the deduction and withholding from

24-34  the taxes otherwise due from a taxpayer such other amounts as

24-35  are required to carry out the Streamlined Sales and Use Tax

24-36  Agreement.

24-37     Sec. 48.  NRS 372.375 is hereby amended to read as follows:

24-38     372.375  [The]

24-39     1.  Except as otherwise required by the Department pursuant

24-40  to section 9 of this act, the person required to file [the] a return shall

24-41  deliver the return together with a remittance of the amount of the tax

24-42  due to the Department.

24-43     2.  The Department shall provide for the acceptance of credit

24-44  cards, debit cards or electronic transfers of money for the payment

24-45  of the tax due in the manner prescribed in NRS 353.1465.

25-1      Sec. 49.  NRS 372.380 is hereby amended to read as follows:

25-2      372.380  1.  [The] Except as otherwise provided in subsection

25-3  2 or required by the Department pursuant to section 9 of this act,

25-4  the reporting and payment period of a taxpayer whose taxable sales

25-5  do not exceed $10,000 per month is a calendar quarter.

25-6      2.  The Department, if it deems this action necessary in order to

25-7  insure payment to or facilitate the collection by the State of the

25-8  amount of taxes, may require returns and payment of the amount of

25-9  taxes for periods other than calendar months or quarters, depending

25-10  upon the principal place of business of the seller, retailer or

25-11  purchaser, as the case may be, or for other than monthly or quarterly

25-12  periods.

25-13     Sec. 50.  NRS 372.635 is hereby amended to read as follows:

25-14     372.635  Except as otherwise provided in NRS 360.235 and

25-15  360.395 [:] and section 36 of this act:

25-16     1.  No refund may be allowed unless a claim for it is filed with

25-17  the Department within 3 years after the last day of the month

25-18  following the close of the period for which the overpayment was

25-19  made.

25-20     2.  No credit may be allowed after the expiration of the period

25-21  specified for filing claims for refund unless a claim for credit is filed

25-22  with the Department within that period, or unless the credit relates

25-23  to a period for which a waiver is given pursuant to NRS 360.355.

25-24     Sec. 51.  NRS 372.7263 is hereby amended to read as follows:

25-25     372.7263  1.  In administering the provisions of NRS 372.335,

25-26  the Department shall apply the exemption for the sale of tangible

25-27  personal property delivered by the vendor to a forwarding agent for

25-28  shipment out of state to include:

25-29     [1.] (a) The sale of a vehicle to a nonresident to whom a special

25-30  movement permit has been issued by the Department of Motor

25-31  Vehicles pursuant to subsection 1 of NRS 482.3955; and

25-32     [2.] (b) The sale of farm machinery and equipment[, as defined

25-33  in NRS 374.286,] to a nonresident who submits proof to the vendor

25-34  that the farm machinery and equipment will be delivered out of state

25-35  not later than 15 days after the sale.

25-36     2.  As used in this section:

25-37     (a) “Agricultural use” has the meaning ascribed to it in

25-38  NRS 361A.030.

25-39     (b) “Farm machinery and equipment” means a farm tractor,

25-40  implement of husbandry, piece of equipment used for irrigation,

25-41  or a part used in the repair or maintenance of farm machinery

25-42  and equipment. The term does not include:

25-43         (1) A vehicle required to be registered pursuant to the

25-44  provisions of chapter 482 or 706 of NRS; or

26-1          (2) Machinery or equipment only incidentally employed for

26-2  the agricultural use of real property.

26-3      (c) “Farm tractor” means a motor vehicle designed and used

26-4  primarily for drawing an implement of husbandry.

26-5      (d) “Implement of husbandry” means a vehicle that is

26-6  designed, adapted or used for agricultural purposes, including,

26-7  without limitation, a plow, machine for mowing, hay baler,

26-8  combine, piece of equipment used to stack hay, till, harvest, handle

26-9  agricultural commodities or apply fertilizers, or other heavy,

26-10  movable equipment designed, adapted or used for agricultural

26-11  purposes.

26-12     Sec. 52.  NRS 372.740 is hereby amended to read as follows:

26-13     372.740  1.  The Department, or any person authorized in

26-14  writing by it, may examine the books, papers, records and

26-15  equipment of any person selling tangible personal property and any

26-16  person liable for the use tax and may investigate the character of the

26-17  business of the person to verify the accuracy of any return made, or,

26-18  if no return is made by the person, to ascertain and determine the

26-19  amount required to be paid.

26-20     2.  Any person selling or purchasing tangible personal property

26-21  in this state who [is] :

26-22     (a) Is required to [obtain] :

26-23         (1) Obtain a permit pursuant to NRS 372.125 or register

26-24  pursuant to section 9 of this act; or [to file]

26-25         (2) File a return pursuant to subsection 2 of NRS 372.360[,

26-26  and who keeps] ; and

26-27     (b) Keeps outside of this state his records, receipts, invoices and

26-28  other documents relating to sales he has made or the use tax due this

26-29  state,

26-30  shall pay to the Department an amount equal to the allowance

26-31  provided for state officers and employees generally while traveling

26-32  outside of the state for each day or fraction thereof during which an

26-33  employee of the Department is engaged in examining those

26-34  documents, plus any other actual expenses incurred by the employee

26-35  while he is absent from his regular place of employment to examine

26-36  those documents.

26-37     Sec. 53.  Chapter 374 of NRS is hereby amended by adding

26-38  thereto the provisions set forth as sections 54 to 57, inclusive, of this

26-39  act.

26-40     Sec. 54.  This chapter must be administered in accordance

26-41  with the provisions of chapter 360B of NRS.

26-42     Sec. 55.  In determining the amount of taxes due pursuant to

26-43  this chapter:

26-44     1.  The amount due must be computed to the third decimal

26-45  place and rounded to a whole cent using a method that rounds up

27-1  to the next cent if the numeral in the third decimal place is greater

27-2  than 4.

27-3      2.  A retailer may compute the amount due on a transaction

27-4  on the basis of each item involved in the transaction or a single

27-5  invoice for the entire transaction.

27-6      Sec. 56.  1.  If a purchaser wishes to claim an exemption

27-7  from the taxes imposed by this chapter, the retailer shall obtain

27-8  such identifying information from the purchaser at the time of

27-9  sale as is required by the Department.

27-10     2.  The Department shall, to the extent feasible, establish an

27-11  electronic system for submitting a request for an exemption. A

27-12  purchaser is not required to provide a signature to claim an

27-13  exemption if the request is submitted electronically.

27-14     3.  The Department may establish a system whereby a

27-15  purchaser who is exempt from the payment of the taxes imposed

27-16  by this chapter is issued an identification number that can be

27-17  presented to the retailer at the time of sale.

27-18     4.  A retailer shall maintain such records of exempt

27-19  transactions as are required by the Department.

27-20     5.  Except as otherwise provided in this subsection, a retailer

27-21  who complies with the provisions of this section is not liable for

27-22  the payment of any tax imposed by this chapter if the purchaser

27-23  improperly claims an exemption. If the purchaser improperly

27-24  claims an exemption, the purchaser is liable for the payment of the

27-25  tax. The provisions of this subsection do not apply if the retailer

27-26  fraudulently fails to collect the tax or solicits a purchaser to

27-27  participate in an unlawful claim of an exemption.

27-28     Sec. 57.  1.  If a retailer is unable to collect all or part of the

27-29  sales price of a sale, he is entitled to receive a deduction from his

27-30  taxable sales for that bad debt.

27-31     2.  Any deduction that is claimed pursuant to this section may

27-32  not include interest.

27-33     3.  The amount of any deduction claimed must equal the

27-34  amount of a deduction that may be claimed pursuant to 26 U.S.C.

27-35  § 166 for that sale minus:

27-36     (a) Any finance charge or interest charged as part of the sale;

27-37     (b) Any sales or use tax charged on the sales price;

27-38     (c) Any amount not paid on the sales price because the

27-39  tangible personal property that was sold has remained in the

27-40  possession of the retailer until the full sales price is paid;

27-41     (d) Any expense incurred in attempting to collect the bad debt;

27-42  and

27-43     (e) The value of any property sold that has been repossessed by

27-44  the retailer.

28-1      4.  A bad debt may be claimed as a deduction on the return

28-2  that covers the period during which the bad debt is written off in

28-3  the business records of the retailer that are maintained in the

28-4  ordinary course of the retailer’s business and is eligible to be

28-5  claimed as a deduction pursuant to 26 U.S.C. § 166 or, if the

28-6  retailer is not required to file a federal income tax return, would

28-7  be eligible to be claimed as a deduction pursuant to 26 U.S.C. §

28-8  166.

28-9      5.  If a bad debt for which a deduction has been claimed is

28-10  subsequently collected in whole or in part, the tax on the amount

28-11  so collected must be reported on the return that covers the period

28-12  in which the collection is made.

28-13     6.  If the amount of the bad debt is greater than the amount of

28-14  the taxable sales reported for the period during which the bad debt

28-15  is claimed as a deduction, a claim for a refund may be filed

28-16  pursuant to NRS 374.635 to 374.720, inclusive, except that the

28-17  time within which the claim may be filed begins on the date on

28-18  which the return that included the deduction was filed.

28-19     7.  If the retailer has contracted with a certified service

28-20  provider for the remittance of the tax due under this chapter, the

28-21  service provider may, on behalf of the retailer, claim any

28-22  deduction to which the retailer is entitled pursuant to this section.

28-23  The service provider shall credit or refund the full amount of any

28-24  deduction or refund received pursuant to this section to the

28-25  retailer.

28-26     8.  For the purposes of reporting a payment received on a bad

28-27  debt for which a deduction has been claimed, the payment must

28-28  first be applied to the sales price of the property sold and the tax

28-29  due thereon, and then to any interest, service charge or other

28-30  charge that was charged as part of the sale.

28-31     9.  If the records of a retailer indicate that a bad debt may be

28-32  allocated among other states that are members of the Streamlined

28-33  Sales and Use Tax Agreement, the retailer may allocate the bad

28-34  debt among those states.

28-35     10.  Except as otherwise provided in subsection 11, upon

28-36  determining that a retailer has filed a return which contains one

28-37  or more violations of the provisions of this section, the Department

28-38  shall:

28-39     (a) For the first return of any retailer which contains one or

28-40  more violations, issue a letter of warning to the retailer which

28-41  provides an explanation of the violation or violations contained in

28-42  the return.

28-43     (b) For the first or second return, other than a return

28-44  described in paragraph (a), in any calendar year which contains

29-1  one or more violations, assess a penalty equal to the amount of the

29-2  deduction claimed or $1,000, whichever is less.

29-3      (c) For the third and each subsequent return in any calendar

29-4  year which contains one or more violations, assess a penalty of

29-5  three times the amount of the deduction claimed or $3,000,

29-6  whichever is less.

29-7      11.  For the purposes of subsection 10, if the first violation of

29-8  this section by any retailer was determined by the Department

29-9  through an audit which covered more than one return of the

29-10  retailer, the Department shall treat all returns which were

29-11  determined through the same audit to contain a violation or

29-12  violations in the manner provided in paragraph (a) of

29-13  subsection 10.

29-14     12.  As used in this section:

29-15     (a) “Bad debt” means a debt that may be deducted pursuant to

29-16  26 U.S.C. § 166.

29-17     (b) “Certified service provider” has the meaning ascribed to it

29-18  in NRS 360B.060.

29-19     Sec. 58.  NRS 374.020 is hereby amended to read as follows:

29-20     374.020  Except where the context otherwise requires, the

29-21  definitions given in NRS 374.025 to [374.107,] 374.100, inclusive,

29-22  govern the construction of this chapter.

29-23     Sec. 59.  NRS 374.030 is hereby amended to read as follows:

29-24     374.030  1.  “Gross receipts” means the total amount of the

29-25  sale or lease or rental price, as the case may be, of the retail sales of

29-26  retailers, valued in money, whether received in money or otherwise,

29-27  without any deduction on account of any of the following:

29-28     (a) The cost of the property sold. However, in accordance with

29-29  such rules and regulations as the Department may prescribe, a

29-30  deduction may be taken if the retailer has purchased property for

29-31  some other purpose than resale, has reimbursed his vendor for tax

29-32  which the vendor is required to pay to the county or has paid the use

29-33  tax with respect to the property, and has resold the property before

29-34  making any use of the property other than retention, demonstration

29-35  or display while holding it for sale in the regular course of business.

29-36  If such a deduction is taken by the retailer, no refund or credit will

29-37  be allowed to his vendor with respect to the sale of the property.

29-38     (b) The cost of the materials used, labor or service cost, interest

29-39  paid, losses or any other expense.

29-40     (c) The cost of transportation of the property before its sale to

29-41  the purchaser.

29-42     2.  The total amount of the sale or lease or rental price includes

29-43  all of the following:

29-44     (a) Any services that are a part of the sale.

29-45     (b) All receipts, cash, credits and property of any kind.

30-1      (c) Any amount for which credit is allowed by the seller to the

30-2  purchaser.

30-3      3.  “Gross receipts” does not include any of the following:

30-4      (a) Cash discounts allowed and taken on sales.

30-5      (b) The sale price of property returned by customers when the

30-6  full sale price is refunded either in cash or credit, but this exclusion

30-7  does not apply in any instance when the customer, in order to obtain

30-8  the refund, is required to purchase other property at a price greater

30-9  than the amount charged for the property that is returned.

30-10     (c) The price received for labor or services used in installing or

30-11  applying the property sold.

30-12     (d) The amount of any tax, not including any manufacturers’ or

30-13  importers’ excise tax, imposed by the United States upon or with

30-14  respect to retail sales, whether imposed upon the retailer or the

30-15  consumer.

30-16     [(e) The amount of any allowance against the selling price given

30-17  by a retailer for the value of a used vehicle which is taken in trade

30-18  on the purchase of another vehicle.]

30-19     4.  For purposes of the sales tax, if the retailers establish to the

30-20  satisfaction of the Department that the sales tax has been added to

30-21  the total amount of the sale price and has not been absorbed by

30-22  them, the total amount of the sale price shall be deemed to be the

30-23  amount received exclusive of the tax imposed.

30-24     Sec. 60.  NRS 374.040 is hereby amended to read as follows:

30-25     374.040  1.  “Occasional sale ” [,” except as otherwise

30-26  provided in subsection 2,] includes:

30-27     (a) A sale of property not held or used by a seller in the course

30-28  of an activity for which he is required to hold a seller’s permit,

30-29  provided such sale is not one of a series of sales sufficient in

30-30  number, scope and character to constitute an activity requiring the

30-31  holding of a seller’s permit.

30-32     (b) Any transfer of all or substantially all the property held or

30-33  used by a person in the course of such an activity when after such

30-34  transfer the real or ultimate ownership of such property is

30-35  substantially similar to that which existed before such transfer.

30-36     2.  [The term does not include the sale of a vehicle other than

30-37  the sale or transfer of a used vehicle to the seller’s spouse, child,

30-38  grandchild, parent, grandparent, brother or sister. For the purposes

30-39  of this section, the relation of parent and child includes adoptive and

30-40  illegitimate children and stepchildren.

30-41     3.] For the purposes of this section, stockholders, bondholders,

30-42  partners or other persons holding an interest in a corporation or

30-43  other entity are regarded as having the “real or ultimate ownership”

30-44  of the property of such corporation or other entity.

 

31-1      Sec. 61.  NRS 374.055 is hereby amended to read as follows:

31-2      374.055  1.  “Retail sale” or “sale at retail” means a sale for

31-3  any purpose other than resale in the regular course of business of

31-4  tangible personal property. [The terms do not include a sale of

31-5  property that:

31-6      (a) Meets the requirements of subparagraphs (1) and (2) of

31-7  paragraph (a) of subsection 4 of NRS 374.291;

31-8      (b) Is made available for sale within 2 years after it is acquired;

31-9  and

31-10     (c) Is made available for viewing by the public or prospective

31-11  purchasers, or both, within 2 years after it is acquired, whether or

31-12  not a fee is charged for viewing it and whether or not it is also used

31-13  for purposes other than viewing.]

31-14     2.  The delivery in a county of tangible personal property by an

31-15  owner or former owner thereof or by a factor, or agent of such

31-16  owner, former owner or factor, if the delivery is to a consumer or

31-17  person for redelivery to a consumer, pursuant to a retail sale made

31-18  by a retailer not engaged in business in the county, is a retail sale in

31-19  the county by the person making the delivery. He shall include the

31-20  retail selling price of the property in his gross receipts.

31-21     Sec. 62.  NRS 374.060 is hereby amended to read as follows:

31-22     374.060  1.  “Retailer” includes:

31-23     (a) Every seller who makes any retail sale or sales of tangible

31-24  personal property, and every person engaged in the business of

31-25  making retail sales at auction of tangible personal property owned

31-26  by the person or others.

31-27     (b) Every person engaged in the business of making sales for

31-28  storage, use or other consumption or in the business of making sales

31-29  at auction of tangible personal property owned by the person or

31-30  others for storage, use or other consumption.

31-31     (c) Every person making any retail sale of a vehicle or more

31-32  than two retail sales of other tangible personal property during any

31-33  12‑month period, including sales made in the capacity of assignee

31-34  for the benefit of creditors, or receiver or trustee in bankruptcy.

31-35     2.  When the Department determines that it is necessary for the

31-36  efficient administration of this chapter to regard any salesmen,

31-37  representatives, peddlers or canvassers as the agents of the dealers,

31-38  distributors, supervisors or employers under whom they operate or

31-39  from whom they obtain the tangible personal property sold by them,

31-40  irrespective of whether they are making sales on their own behalf or

31-41  on behalf of such dealers, distributors, supervisors or employers, the

31-42  Department may so regard them and may regard the dealers,

31-43  distributors, supervisors or employers as retailers for purposes of

31-44  this chapter.

32-1      3.  A licensed optometrist or physician is a consumer of, and

32-2  shall not be considered, a retailer within the provisions of this

32-3  chapter, with respect to the ophthalmic materials used or

32-4  furnished by him in the performance of his professional services

32-5  in the diagnosis, treatment or correction of conditions of the

32-6  human eye, including the adaptation of lenses or frames for the

32-7  aid thereof.

32-8      Sec. 63.  NRS 374.060 is hereby amended to read as follows:

32-9      374.060  1.  “Retailer” includes:

32-10     (a) Every seller who makes any retail sale or sales of tangible

32-11  personal property, and every person engaged in the business of

32-12  making retail sales at auction of tangible personal property owned

32-13  by the person or others.

32-14     (b) Every person engaged in the business of making sales for

32-15  storage, use or other consumption or in the business of making sales

32-16  at auction of tangible personal property owned by the person or

32-17  others for storage, use or other consumption.

32-18     (c) Every person making [any retail sale of a vehicle or] more

32-19  than two retail sales of other tangible personal property during any

32-20  12‑month period, including sales made in the capacity of assignee

32-21  for the benefit of creditors, or receiver or trustee in bankruptcy.

32-22     2.  When the Department determines that it is necessary for the

32-23  efficient administration of this chapter to regard any salesmen,

32-24  representatives, peddlers or canvassers as the agents of the dealers,

32-25  distributors, supervisors or employers under whom they operate or

32-26  from whom they obtain the tangible personal property sold by them,

32-27  irrespective of whether they are making sales on their own behalf or

32-28  on behalf of such dealers, distributors, supervisors or employers, the

32-29  Department may so regard them and may regard the dealers,

32-30  distributors, supervisors or employers as retailers for purposes of

32-31  this chapter.

32-32     Sec. 64.  NRS 374.070 is hereby amended to read as follows:

32-33     374.070  1.  “Sales price” means the total amount for which

32-34  tangible property is sold, valued in money, whether paid in money

32-35  or otherwise, without any deduction on account of any of the

32-36  following:

32-37     (a) The cost of the property sold.

32-38     (b) The cost of the materials used, labor or service cost, interest

32-39  charged, losses, or any other expenses.

32-40     (c) The cost of transportation of the property before its purchase.

32-41     2.  The total amount for which property is sold includes all of

32-42  the following:

32-43     (a) Any services that are a part of the sale.

32-44     (b) Any amount for which credit is given to the purchaser by the

32-45  seller.

33-1      3.  “Sales price” does not include any of the following:

33-2      (a) Cash discounts allowed and taken on sales.

33-3      (b) The amount charged for property returned by customers

33-4  when the entire amount charged therefor is refunded either in cash

33-5  or credit; but this exclusion does not apply in any instance when the

33-6  customer, in order to obtain the refund, is required to purchase other

33-7  property at a price greater than the amount charged for the property

33-8  that is returned.

33-9      (c) The amount charged for labor or services rendered in

33-10  installing or applying the property sold.

33-11     (d) The amount of any tax , [(] not including [, however,] any

33-12  manufacturers’ or importers’ excise tax , [)] imposed by the United

33-13  States upon or with respect to retail sales, whether imposed upon the

33-14  retailer or the consumer.

33-15     (e) The amount of any tax imposed by the State of Nevada upon

33-16  or with respect to the storage, use or other consumption of tangible

33-17  personal property purchased from any retailer.

33-18     [(f) The amount of any allowance against the selling price given

33-19  by a retailer for the value of a used vehicle which is taken in trade

33-20  on the purchase of another vehicle.

33-21     4.  For the purpose of a sale of a vehicle by a seller who is not

33-22  required to be registered with the Department of Taxation, the sales

33-23  price is the value established in the manner set forth in

33-24  NRS 374.112.]

33-25     Sec. 65.  NRS 374.085 is hereby amended to read as follows:

33-26     374.085  “Storage, use or other consumption” does not include

33-27  [:

33-28     1.  The] the keeping, retaining or exercising any right or power

33-29  over tangible personal property for the purpose of subsequently

33-30  transporting it outside the State for use thereafter solely outside the

33-31  State, or for the purpose of being processed, fabricated or

33-32  manufactured into, attached to, or incorporated into, other tangible

33-33  personal property to be transported outside the State and thereafter

33-34  used solely outside the State . [; or

33-35     2.  The keeping, retaining or exercising any right or power over

33-36  tangible property that:

33-37     (a) Meets the requirements of subparagraphs (1) and (2) of

33-38  paragraph (a) of subsection 4 of NRS 374.291;

33-39     (b) Is made available for sale within 2 years after it is acquired;

33-40  and

33-41     (c) Is made available for viewing by the public or prospective

33-42  purchasers, or both, within 2 years after it is acquired, whether or

33-43  not a fee is charged for viewing it and whether or not it is also used

33-44  for purposes other than viewing.]

 

34-1      Sec. 66.  NRS 374.128 is hereby amended to read as follows:

34-2      374.128  1.  If the State or a political subdivision of the State

34-3  enters into a contract pursuant to chapter 332 or 333 of NRS on or

34-4  after June 5, 2001, with a person who:

34-5      (a) Sells tangible personal property in this state; and

34-6      (b) Has not obtained a permit pursuant to NRS 374.130 [because

34-7  he does not maintain a place of business within this state,] or

34-8  registered pursuant to section 9 of this act,

34-9  the contract must include a provision requiring the person to obtain

34-10  a permit pursuant to NRS 374.130 or to register pursuant to section

34-11  9 of this act, and to [agree to] collect and pay the taxes imposed

34-12  pursuant to this chapter on the sale of tangible personal property in

34-13  any county in this state. For the purposes of [the] a permit obtained

34-14  pursuant to NRS 374.130, the person shall be deemed to have a

34-15  place of business in each county in this state, but shall pay the fee

34-16  for a single permit.

34-17     2.  The Department may require a state agency or local

34-18  government to submit such documentation as is necessary to ensure

34-19  compliance with this section.

34-20     Sec. 67.  NRS 374.130 is hereby amended to read as follows:

34-21     374.130  1.  Every person desiring to engage in or conduct

34-22  business as a seller within a county shall register with the

34-23  Department pursuant to section 9 of this act or file with the

34-24  Department an application for a permit for each place of business,

34-25  unless he intends to sell vehicles and will make fewer than three

34-26  retail sales of vehicles during any 12-month period.

34-27     2.  Every application for a permit must:

34-28     (a) Be made upon a form prescribed by the Department.

34-29     (b) Set forth the name under which the applicant transacts or

34-30  intends to transact business and the location of his place or places of

34-31  business.

34-32     (c) Set forth such other information as the Department may

34-33  require.

34-34     3.  The application must be signed by [the] :

34-35     (a) The owner if he is a natural person; [in the case of an

34-36  association or partnership, by a]

34-37     (b) A member or partner[; in the case of a corporation, by an] if

34-38  the seller is an association or partnership; or

34-39     (c) An executive officer or some person specifically authorized

34-40  [by the corporation] to sign the application[, to which must be

34-41  attached the written evidence of his authority.] if the seller is a

34-42  corporation. Written evidence of the signer’s authority must be

34-43  attached to the application.

 

 

35-1      Sec. 68.  NRS 374.130 is hereby amended to read as follows:

35-2      374.130  1.  Every person desiring to engage in or conduct

35-3  business as a seller within a county shall register with the

35-4  Department pursuant to section 9 of this act or file with the

35-5  Department an application for a permit for each place of business . [,

35-6  unless he intends to sell vehicles and will make fewer than three

35-7  retail sales of vehicles during any 12-month period.]

35-8      2.  Every application for a permit must:

35-9      (a) Be made upon a form prescribed by the Department.

35-10     (b) Set forth the name under which the applicant transacts or

35-11  intends to transact business and the location of his place or places of

35-12  business.

35-13     (c) Set forth such other information as the Department may

35-14  require.

35-15     3.  The application must be signed by:

35-16     (a) The owner if he is a natural person;

35-17     (b) A member or partner if the seller is an association or

35-18  partnership; or

35-19     (c) An executive officer or some person specifically authorized

35-20  to sign the application if the seller is a corporation. Written evidence

35-21  of the signer’s authority must be attached to the application.

35-22     Sec. 69.  NRS 374.165 is hereby amended to read as follows:

35-23     374.165  [The] A resale certificate relieves the seller from the

35-24  burden of proof only if taken in good faith from a person who [is] :

35-25     1.  Is engaged in the business of selling tangible personal

35-26  property [and who holds the permit provided for in NRS 374.130 to

35-27  374.185, inclusive, and who, at] ;

35-28     2.  Is registered pursuant to section 9 of this act or holds a

35-29  permit issued pursuant to NRS 374.140; and

35-30     3.  At the time of purchasing the tangible personal property,

35-31  intends to sell it in the regular course of business or is unable to

35-32  ascertain at the time of purchase whether the property will be sold or

35-33  will be used for some other purpose.

35-34     Sec. 70.  NRS 374.170 is hereby amended to read as follows:

35-35     374.170  1.  [The certificate shall:] A resale certificate must:

35-36     (a) Be signed by and bear the name and address of the

35-37  purchaser.

35-38     (b) Indicate that the purchaser is registered pursuant to section

35-39  9 of this act or contain the number of the permit issued to the

35-40  purchaser[.] pursuant to NRS 374.140.

35-41     (c) Indicate the general character of the tangible personal

35-42  property sold by the purchaser in the regular course of business.

35-43     2.  The certificate [shall] must be substantially in such form as

35-44  the Department may prescribe.

 

36-1      Sec. 71.  NRS 374.235 is hereby amended to read as follows:

36-2      374.235  [The] A resale certificate relieves the person selling

36-3  the property from the burden of proof only if taken in good faith

36-4  from a person who [is] :

36-5      1.  Is engaged in the business of selling tangible personal

36-6  property [and who holds the permit provided for by NRS 374.130 to

36-7  374.185, inclusive, and who, at] ;

36-8      2.  Is registered pursuant to section 9 of this act or holds a

36-9  permit issued pursuant to NRS 374.140; and

36-10     3.  At the time of purchasing the tangible personal property,

36-11  intends to sell it in the regular course of business or is unable to

36-12  ascertain at the time of purchase whether the property will be sold or

36-13  will be used for some other purpose.

36-14     Sec. 72.  NRS 374.240 is hereby amended to read as follows:

36-15     374.240  1.  [The certificate shall:] A resale certificate must:

36-16     (a) Be signed and bear the name and address of the purchaser.

36-17     (b) Indicate that the purchaser is registered pursuant to section

36-18  9 of this act or contain the number of the permit issued to the

36-19  purchaser[.] pursuant to NRS 374.140.

36-20     (c) Indicate the general character of the tangible personal

36-21  property sold by the purchaser in the regular course of business.

36-22     2.  The certificate [shall] must be substantially in such form as

36-23  the Department may prescribe.

36-24     Sec. 73.  NRS 374.287 is hereby amended to read as follows:

36-25     374.287  1.  There are exempted from the taxes imposed by

36-26  this chapter the gross receipts from sales and the storage, use or

36-27  other consumption of:

36-28     (a) Prosthetic devices, orthotic appliances and ambulatory casts

36-29  for human use, and other supports and casts if prescribed or applied

36-30  by a licensed provider of health care, within his scope of practice,

36-31  for human use.

36-32     (b) Appliances and supplies relating to an ostomy.

36-33     (c) Products for hemodialysis.

36-34     (d) [Any ophthalmic or ocular device or appliance prescribed by

36-35  a physician or optometrist.

36-36     (e)] Medicines:

36-37         (1) Prescribed for the treatment of a human being by a person

36-38  authorized to prescribe medicines, and dispensed on a prescription

36-39  filled by a registered pharmacist in accordance with law;

36-40         (2) Furnished by a licensed physician, dentist or podiatric

36-41  physician to his own patient for the treatment of the patient;

36-42         (3) Furnished by a hospital for treatment of any person

36-43  pursuant to the order of a licensed physician, dentist or podiatric

36-44  physician; or

37-1          (4) Sold to a licensed physician, dentist, podiatric physician

37-2  or hospital for the treatment of a human being.

37-3      2.  As used in this section:

37-4      (a) “Medicine” means any substance or preparation intended for

37-5  use by external or internal application to the human body in the

37-6  diagnosis, cure, mitigation, treatment or prevention of disease or

37-7  affliction of the human body and which is commonly recognized as

37-8  a substance or preparation intended for such use. The term includes

37-9  splints, bandages, pads, compresses and dressings.

37-10     (b) “Medicine” does not include:

37-11         (1) Any auditory , ophthalmic or ocular device or appliance.

37-12         (2) Articles which are in the nature of instruments, crutches,

37-13  canes, devices or other mechanical, electronic, optical or physical

37-14  equipment.

37-15         (3) Any alcoholic beverage, except where the alcohol merely

37-16  provides a solution in the ordinary preparation of a medicine.

37-17         (4) Braces or supports, other than those prescribed or applied

37-18  by a licensed provider of health care, within his scope of practice,

37-19  for human use.

37-20     3.  Insulin furnished by a registered pharmacist to a person for

37-21  treatment of diabetes as directed by a physician shall be deemed to

37-22  be dispensed on a prescription within the meaning of this section.

37-23     Sec. 74.  NRS 374.360 is hereby amended to read as follows:

37-24     374.360  Except as otherwise provided in NRS 374.385[,] or

37-25  required by the Department pursuant to section 9 of this act, the

37-26  taxes imposed by this chapter are due and payable to the Department

37-27  monthly on or before the last day of the month next succeeding each

37-28  month.

37-29     Sec. 75.  NRS 374.365 is hereby amended to read as follows:

37-30     374.365  Except as otherwise required by the Department

37-31  pursuant to section 9 of this act:

37-32     1.  On or before the last day of the month following each

37-33  reporting period, a return for the preceding period must be filed with

37-34  the Department in such form as the Department may prescribe. Any

37-35  return required to be filed by this section must be combined with

37-36  any return required to be filed pursuant to the provisions of

37-37  chapter 372 of NRS.

37-38     2.  For purposes of [the] :

37-39     (a) The sales tax a return must be filed by every seller. [For

37-40  purposes of the]

37-41     (b) The use tax a return must be filed by every retailer

37-42  maintaining a place of business in the county and by every person

37-43  purchasing tangible personal property, the storage, use or other

37-44  consumption of which is subject to the use tax, who has not paid the

37-45  use tax due . [to a retailer required to collect the tax.]

38-1      3.  Returns must be signed by the person required to file the

38-2  return or by his authorized agent but need not be verified by oath.

38-3      Sec. 76.  NRS 374.370 is hereby amended to read as follows:

38-4      374.370  1.  Except as otherwise required by the Department

38-5  pursuant to section 9 of this act or provided in sections 13 to 18,

38-6  inclusive, of this act:

38-7      (a) For the purposes of the sales tax:

38-8      [(a)] (1) The return must show the gross receipts of the seller

38-9  during the preceding reporting period.

38-10     [(b)] (2) The gross receipts must be segregated and reported

38-11  separately for each county to which a sale of tangible personal

38-12  property pertains.

38-13     [(c)] (3) A sale pertains to the county in this state in which the

38-14  tangible personal property is or will be delivered to the purchaser or

38-15  his agent or designee.

38-16     [2.] (b) For purposes of the use tax:

38-17     [(a)] (1) In the case of a return filed by a retailer, the return

38-18  must show the total sales price of the property purchased by him, the

38-19  storage, use or consumption of which property became subject to the

38-20  use tax during the preceding reporting period.

38-21     [(b)] (2) The sales price must be segregated and reported

38-22  separately for each county to which a purchase of tangible personal

38-23  property pertains.

38-24     [(c)] (3) If the property was [brought] :

38-25             (I) Brought into this state by the purchaser or his agent or

38-26  designee, the sale pertains to the county in this state in which the

38-27  property is or will be first used, stored or otherwise consumed.

38-28  [Otherwise,]

38-29             (II) Not brought into this state by the purchaser or his

38-30  agent or designee, the sale pertains to the county in this state in

38-31  which the property was delivered to the purchaser or his agent or

38-32  designee.

38-33     [3.] 2.  In case of a return filed by a purchaser, the return must

38-34  show the total sales price of the property purchased by him, the

38-35  storage, use or consumption of which became subject to the use tax

38-36  during the preceding reporting period and indicate the county in this

38-37  state in which the property was first used, stored or consumed.

38-38     [4.] 3.  The return must also show the amount of the taxes for

38-39  the period covered by the return and such other information as the

38-40  Department deems necessary for the proper administration of this

38-41  chapter.

38-42     [5.  If a retailer:

38-43     (a) Is unable to collect all or part of the sales price of a sale, the

38-44  amount of which was included in the gross receipts reported for a

38-45  previous reporting period; and

39-1      (b) Has taken a deduction on his federal income tax return

39-2  pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to

39-3  collect,

39-4  he is entitled to receive a credit for the amount of sales tax paid on

39-5  account of that uncollected sales price. The credit may be used

39-6  against the amount of sales tax that the retailer is subsequently

39-7  required to pay pursuant to this chapter.

39-8      6.  If the Internal Revenue Service of the Department of the

39-9  Treasury disallows a deduction described in paragraph (b) of

39-10  subsection 5 and the retailer claimed a credit on a return for a

39-11  previous reporting period pursuant to subsection 5, the retailer shall

39-12  include the amount of that credit in the amount of taxes reported

39-13  pursuant to subsection 4 in the first return filed with the Department

39-14  after the deduction is disallowed.

39-15     7.  If a retailer collects all or part of the sales price for which he

39-16  claimed a credit on a return for a previous reporting period pursuant

39-17  to subsection 5, he shall include:

39-18     (a) The amount collected in the gross receipts reported pursuant

39-19  to paragraph (a) of subsection 1; and

39-20     (b) The sales tax payable on the amount collected in the amount

39-21  of taxes reported pursuant to subsection 4,

39-22  in the first return filed with the Department after that collection.

39-23     8.] 4.  Except as otherwise provided in subsection [9,] 5, upon

39-24  determining that a retailer has filed a return which contains one or

39-25  more violations of the provisions of this section, the Department

39-26  shall:

39-27     (a) For the first return of any retailer which contains one or more

39-28  violations, issue a letter of warning to the retailer which provides an

39-29  explanation of the violation or violations contained in the return.

39-30     (b) For the first or second return, other than a return described in

39-31  paragraph (a), in any calendar year which contains one or more

39-32  violations, assess a penalty equal to the amount of the tax which was

39-33  not reported or was reported for the wrong county or $1,000,

39-34  whichever is less.

39-35     (c) For the third and each subsequent return in any calendar year

39-36  which contains one or more violations, assess a penalty of three

39-37  times the amount of the tax which was not reported or was reported

39-38  for the wrong county or $3,000, whichever is less.

39-39     [9.] 5. For the purposes of subsection [8,] 4, if the first violation

39-40  of this section by any retailer was determined by the Department

39-41  through an audit which covered more than one return of the retailer,

39-42  the Department shall treat all returns which were determined

39-43  through the same audit to contain a violation or violations in the

39-44  manner provided in paragraph (a) of subsection [8.] 4.

 

40-1      Sec. 77.  NRS 374.375 is hereby amended to read as follows:

40-2      374.375  [The]

40-3      1.  Except as otherwise provided in subsection 2, a taxpayer

40-4  shall deduct and withhold from the taxes otherwise due from him

40-5  1.25 percent thereof to reimburse himself for the cost of collecting

40-6  the tax.

40-7      2.  The regulations adopted by the Department pursuant to

40-8  NRS 360B.110 may authorize the deduction and withholding from

40-9  the taxes otherwise due from a taxpayer such other amounts as

40-10  are required to carry out the Streamlined Sales and Use Tax

40-11  Agreement.

40-12     Sec. 78.  NRS 374.380 is hereby amended to read as follows:

40-13     374.380  [The]

40-14     1.  Except as otherwise required by the Department pursuant

40-15  to section 9 of this act, the person required to file [the] a return shall

40-16  deliver the return together with a remittance of the amount of the tax

40-17  due to the Department.

40-18     2.  The Department shall provide for the acceptance of credit

40-19  cards, debit cards or electronic transfers of money for the payment

40-20  of the tax due in the manner prescribed in NRS 353.1465.

40-21     Sec. 79.  NRS 374.385 is hereby amended to read as follows:

40-22     374.385  1.  [The] Except as otherwise provided in subsection

40-23  2 or required by the Department pursuant to section 9 of this act,

40-24  the reporting and payment period of a taxpayer whose taxable sales

40-25  do not exceed $10,000 per month is a calendar quarter.

40-26     2.  The Department, if it deems this action necessary in order to

40-27  insure payment to or facilitate the collection by the county of the

40-28  amount of taxes, may require returns and payment of the amount of

40-29  taxes for periods other than calendar months or quarters, depending

40-30  upon the principal place of business of the seller, retailer or

40-31  purchaser as the case may be, or for other than monthly or quarterly

40-32  periods.

40-33     Sec. 80.  NRS 374.640 is hereby amended to read as follows:

40-34     374.640  Except as otherwise provided in NRS 360.235 and

40-35  360.395[:] and section 57 of this act:

40-36     1.  No refund may be allowed unless a claim for it is filed with

40-37  the Department within 3 years after the last day of the month

40-38  following the close of the period for which the overpayment was

40-39  made.

40-40     2.  No credit may be allowed after the expiration of the period

40-41  specified for filing claims for refund unless a claim for credit is filed

40-42  with the Department within that period, or unless the credit relates

40-43  to a period for which a waiver is given pursuant to NRS 360.355.

 

 

41-1      Sec. 81.  NRS 374.7273 is hereby amended to read as follows:

41-2      374.7273  1.  In administering the provisions of NRS 374.340,

41-3  the Department shall apply the exemption for the sale of tangible

41-4  personal property delivered by the vendor to a forwarding agent for

41-5  shipment out of state to include:

41-6      [1.] (a) The sale of a vehicle to a nonresident to whom a special

41-7  movement permit has been issued by the Department of Motor

41-8  Vehicles pursuant to subsection 1 of NRS 482.3955; and

41-9      [2.] (b) The sale of farm machinery and equipment[, as defined

41-10  in NRS 374.286,] to a nonresident who submits proof to the vendor

41-11  that the farm machinery and equipment will be delivered out of state

41-12  not later than 15 days after the sale.

41-13     2.  As used in this section:

41-14     (a) “Agricultural use” has the meaning ascribed to it in

41-15  NRS 361A.030.

41-16     (b) “Farm machinery and equipment” means a farm tractor,

41-17  implement of husbandry, piece of equipment used for irrigation,

41-18  or a part used in the repair or maintenance of farm machinery

41-19  and equipment. The term does not include:

41-20         (1) A vehicle required to be registered pursuant to the

41-21  provisions of chapter 482 or 706 of NRS; or

41-22         (2) Machinery or equipment only incidentally employed for

41-23  the agricultural use of real property.

41-24     (c) “Farm tractor” means a motor vehicle designed and used

41-25  primarily for drawing an implement of husbandry.

41-26     (d) “Implement of husbandry” means a vehicle that is

41-27  designed, adapted or used for agricultural purposes, including,

41-28  without limitation, a plow, machine for mowing, hay baler,

41-29  combine, piece of equipment used to stack hay, till, harvest, handle

41-30  agricultural commodities or apply fertilizers, or other heavy,

41-31  movable equipment designed, adapted or used for agricultural

41-32  purposes.

41-33     Sec. 82.  NRS 374.785 is hereby amended to read as follows:

41-34     374.785  1.  All fees, taxes, interest and penalties imposed and

41-35  all amounts of tax required to be paid to counties under this chapter

41-36  must be paid to the Department in the form of remittances payable

41-37  to the Department.

41-38     2.  The Department shall deposit the payments in the State

41-39  Treasury to the credit of the Sales and Use Tax Account in the State

41-40  General Fund.

41-41     3.  The State Controller, acting upon the collection data

41-42  furnished by the Department, shall, each month, from the Sales and

41-43  Use Tax Account in the State General Fund:

41-44     (a) Transfer .75 percent of all fees, taxes, interest and penalties

41-45  collected in each county during the preceding month to the

42-1  appropriate account in the State General Fund as compensation to

42-2  the State for the costs of collecting the tax.

42-3      (b) Transfer .75 percent of all fees, taxes, interest and penalties

42-4  collected during the preceding month from out-of-state businesses

42-5  not maintaining a fixed place of business within this state to the

42-6  appropriate account in the State General Fund as compensation to

42-7  the State for the costs of collecting the tax.

42-8      (c) Determine for each county the amount of money equal to the

42-9  fees, taxes, interest and penalties collected in the county pursuant to

42-10  this chapter during the preceding month less the amount transferred

42-11  pursuant to paragraph (a).

42-12     (d) Transfer the total amount of taxes collected pursuant to this

42-13  chapter during the preceding month from out-of-state businesses not

42-14  maintaining a fixed place of business within this state, less the

42-15  amount transferred pursuant to paragraph (b), to the State

42-16  Distributive School Account in the State General Fund.

42-17     (e) Except as otherwise provided in NRS 387.528, transfer the

42-18  amount owed to each county to the Intergovernmental Fund and

42-19  remit the money to the credit of the county school district fund.

42-20     [4.  For the purpose of the distribution required by this section,

42-21  the occasional sale of a vehicle shall be deemed to take place in the

42-22  county to which the governmental services tax payable by the buyer

42-23  upon that vehicle is distributed.]

42-24     Sec. 83.  NRS 374A.020 is hereby amended to read as follows:

42-25     374A.020  1.  The collection of the tax imposed by NRS

42-26  374A.010 must be commenced on the first day of the first calendar

42-27  quarter that begins at least [30] 120 days after the last condition in

42-28  subsection 1 of NRS 374A.010 is met.

42-29     2.  The tax must be administered, collected and distributed in

42-30  the manner set forth in chapter 374 of NRS.

42-31     3.  The board of trustees of the school district shall transfer the

42-32  proceeds of the tax imposed by NRS 374A.010 from the county

42-33  school district fund to the fund described in NRS 354.6105 which

42-34  must be established by the board of trustees. The money deposited

42-35  in the fund described in NRS 354.6105 pursuant to this subsection

42-36  must be accounted for separately in that fund and must only be

42-37  expended by the board of trustees for the cost of the extraordinary

42-38  maintenance, extraordinary repair and extraordinary improvement of

42-39  school facilities within the county.

42-40     Sec. 84.  NRS 376A.060 is hereby amended to read as follows:

42-41     376A.060  Any ordinance enacted pursuant to NRS 376A.040

42-42  or 376A.050 must include:

42-43     1.  Provisions substantially identical to those contained in

42-44  chapter 374 of NRS, insofar as applicable.

43-1      2.  A provision that all amendments to chapter 374 of NRS after

43-2  the date of enactment of the ordinance, not inconsistent with the

43-3  chapter, automatically become a part of the ordinance imposing the

43-4  tax.

43-5      3.  A provision that specifies the date on which the tax is first

43-6  imposed or on which any change in the rate of the tax becomes

43-7  effective, which must be the first day of the first calendar quarter

43-8  that begins at least 120 days after the effective date of the

43-9  ordinance.

43-10     Sec. 85.  NRS 377.030 is hereby amended to read as follows:

43-11     377.030  1.  The board of county commissioners shall enact an

43-12  ordinance imposing a city-county relief tax.

43-13     2.  The ordinance enacted pursuant to this section must provide

43-14  that the city-county relief tax be imposed on the first day of the first

43-15  [month following] calendar quarter that begins at least 120 days

43-16  after the effective date of the ordinance.

43-17     Sec. 86.  NRS 377.055 is hereby amended to read as follows:

43-18     377.055  [1.] The Department shall monthly determine for

43-19  each county an amount of money equal to the sum of:

43-20     [(a)] 1.  Any fees and any taxes, interest and penalties which

43-21  derive from the basic city-county relief tax collected in that county

43-22  pursuant to this chapter during the preceding month, less the

43-23  corresponding amount transferred to the State General Fund

43-24  pursuant to subsection 3 of NRS 377.050; and

43-25     [(b)] 2.  That proportion of the total amount of taxes which

43-26  derive from that portion of the tax levied at the rate of one-half of 1

43-27  percent collected pursuant to this chapter during the preceding

43-28  month from out-of-state businesses not maintaining a fixed place of

43-29  business within this state, less the corresponding amount transferred

43-30  to the State General Fund pursuant to subsection 3 of NRS 377.050,

43-31  which the population of that county bears to the total population of

43-32  all counties which have in effect a city-county relief tax

43-33  ordinance,

43-34  and deposit the money in the Local Government Tax Distribution

43-35  Account created by NRS 360.660 for credit to the respective

43-36  subaccounts of each county.

43-37     [2.  For the purpose of the distribution required by this section,

43-38  the occasional sale of a vehicle shall be deemed to take place in the

43-39  county to which the governmental services tax payable by the buyer

43-40  upon that vehicle is distributed.]

43-41     Sec. 87.  NRS 377A.020 is hereby amended to read as follows:

43-42     377A.020  1.  The board of county commissioners of any

43-43  county may enact an ordinance imposing a tax for a public transit

43-44  system or for the construction, maintenance and repair of public

43-45  roads, or both, pursuant to NRS 377A.030. The board of county

44-1  commissioners of any county whose population is less than 400,000

44-2  may enact an ordinance imposing a tax to promote tourism pursuant

44-3  to NRS 377A.030.

44-4      2.  An ordinance enacted pursuant to this chapter may not

44-5  become effective before a question concerning the imposition of the

44-6  tax is approved by a majority of the registered voters of the county

44-7  voting upon the question which the board may submit to the voters

44-8  at any general election. A county may combine the questions for a

44-9  public transit system and for the construction, maintenance and

44-10  repair of public roads with questions submitted pursuant to NRS

44-11  244.3351, 278.710 or 371.045, or any combination thereof. The

44-12  board shall also submit to the voters at a general election any

44-13  proposal to increase the rate of the tax or change the previously

44-14  approved uses for the proceeds of the tax.

44-15     3.  Any ordinance enacted pursuant to this section must specify

44-16  the date on which the tax must first be imposed or on which an

44-17  increase in the rate of the tax becomes effective, which must [not be

44-18  earlier than] be the first day of the [second calendar month

44-19  following] first calendar quarter that begins at least 120 days after

44-20  the approval of the question by the voters.

44-21     Sec. 88.  NRS 377A.030 is hereby amended to read as follows:

44-22     377A.030  Except as otherwise provided in NRS 377A.110, any

44-23  ordinance enacted under this chapter must include provisions in

44-24  substance as follows:

44-25     1.  A provision imposing a tax upon retailers at the rate of not

44-26  more than:

44-27     (a) For a tax to promote tourism, one-quarter of 1 percent; or

44-28     (b) For a tax to establish and maintain a public transit system or

44-29  for the construction, maintenance and repair of public roads, or both,

44-30  one-half of 1 percent,

44-31  of the gross receipts of any retailer from the sale of all tangible

44-32  personal property sold at retail, or stored, used or otherwise

44-33  consumed, in a county.

44-34     2.  Provisions substantially identical to those contained in

44-35  chapter 374 of NRS, insofar as applicable.

44-36     3.  A provision that all amendments to chapter 374 of NRS after

44-37  the date of enactment of the ordinance, not inconsistent with this

44-38  chapter, automatically become a part of an ordinance imposing the

44-39  tax for public mass transportation and construction of public roads

44-40  or the tax to promote tourism in the county.

44-41     4.  A provision that the county shall contract before the

44-42  effective date of the ordinance with the Department to perform all

44-43  functions incident to the administration or operation of the tax in the

44-44  county.

45-1      5.  A provision that [exempts from the tax or any increase in the

45-2  tax the gross receipts from] a purchaser is entitled to a refund, in

45-3  accordance with the provisions of NRS 374.635 to 374.720,

45-4  inclusive, of the amount of the tax required to be paid that is

45-5  attributable to the tax imposed upon the sale of, and the storage,

45-6  use or other consumption in a county of, tangible personal property

45-7  used for the performance of a written contract for the construction of

45-8  an improvement to real property, entered into on or before the

45-9  effective date of the tax or the increase in the tax, or for which a

45-10  binding bid was submitted before that date if the bid was afterward

45-11  accepted, if under the terms of the contract or bid the contract price

45-12  or bid amount cannot be adjusted to reflect the imposition of the tax

45-13  or the increase in the tax.

45-14     Sec. 89.  NRS 377A.110 is hereby amended to read as follows:

45-15     377A.110  1.  Subject to the provisions of subsection 2, the

45-16  board may gradually reduce the amount of tax imposed pursuant to

45-17  this chapter for a public transit system or for the construction,

45-18  maintenance and repair of public roads, or both, as revenue from the

45-19  operation of the public transit system permits. The date on which

45-20  any reduction in the tax becomes effective must be the first day of

45-21  the first calendar quarter that begins at least 120 days after the

45-22  effective date of the ordinance reducing the amount of tax

45-23  imposed.

45-24     2.  No such taxing ordinance may be repealed or amended or

45-25  otherwise directly or indirectly modified in such a manner as to

45-26  impair any outstanding bonds issued under this chapter, or other

45-27  obligations incurred under this chapter, until all obligations, for

45-28  which revenues from the ordinance have been pledged or otherwise

45-29  made payable from such revenues pursuant to this chapter, have

45-30  been discharged in full, but the board may at any time dissolve the

45-31  regional transportation commission and provide that no further

45-32  obligations be incurred thereafter.

45-33     Sec. 90.  NRS 377B.100 is hereby amended to read as follows:

45-34     377B.100  1.  The board of county commissioners of any

45-35  county may by ordinance, but not as in a case of emergency, impose

45-36  a tax for infrastructure pursuant to this section and NRS 377B.110.

45-37     2.  An ordinance enacted pursuant to this chapter may not

45-38  become effective before a question concerning the imposition of the

45-39  tax is approved by a two-thirds majority of the members of the

45-40  board of county commissioners. Any proposal to increase the rate of

45-41  the tax or change the previously approved uses for the proceeds of

45-42  the tax must be approved by a two-thirds majority of the members

45-43  of the board of county commissioners. The board of county

45-44  commissioners shall not change a previously approved use for the

46-1  proceeds of the tax to a use that is not authorized for that county

46-2  pursuant to NRS 377B.160.

46-3      3.  An ordinance enacted pursuant to this section must:

46-4      (a) Specify the date on which the tax must first be imposed or on

46-5  which an increase in the rate of the tax becomes effective, which

46-6  must occur on the first day of the first month of the next calendar

46-7  quarter that is at least [60] 120 days after the date on which a two-

46-8  thirds majority of the board of county commissioners approved the

46-9  question.

46-10     (b) In a county whose population is 400,000 or more, provide

46-11  for the cessation of the tax not later than:

46-12         (1) The last day of the month in which the Department

46-13  determines that the total sum collected since the tax was first

46-14  imposed, exclusive of any penalties and interest, exceeds $2.3

46-15  billion; or

46-16         (2) June 30, 2025,

46-17  whichever occurs earlier.

46-18     4.  The board of county commissioners in a county whose

46-19  population is 400,000 or more and in which a water authority exists

46-20  shall review the necessity for the continued imposition of the tax

46-21  authorized pursuant to this chapter at least once every 10 years.

46-22     5.  Before enacting an ordinance pursuant to this chapter, the

46-23  board of county commissioners shall hold a public hearing regarding

46-24  the imposition of a tax for infrastructure. In a county whose

46-25  population is 400,000 or more and in which a water authority exists,

46-26  the water authority shall also hold a public hearing regarding the tax

46-27  for infrastructure. Notice of the time and place of each hearing must

46-28  be:

46-29     (a) Published in a newspaper of general circulation in the county

46-30  at least once a week for the 2 consecutive weeks immediately

46-31  preceding the date of the hearing. Such notice must be a display

46-32  advertisement of not less than 3 inches by 5 inches.

46-33     (b) Posted at the building in which the meeting is to be held and

46-34  at not less than three other separate, prominent places within the

46-35  county at least 2 weeks before the date of the hearing.

46-36     6.  Before enacting an ordinance pursuant to this chapter, the

46-37  board of county commissioners of a county whose population is less

46-38  than 400,000 or a county whose population is 400,000 or more and

46-39  in which no water authority exists,shall develop a plan for the

46-40  expenditure of the proceeds of a tax imposed pursuant to this

46-41  chapter for the purposes set forth in NRS 377B.160. The plan may

46-42  include a regional project for which two or more such counties have

46-43  entered into an interlocal agreement to expend jointly all or a

46-44  portion of the proceeds of a tax imposed in each county pursuant to

46-45  this chapter. Such a plan must include, without limitation, the date

47-1  on which the plan expires, a description of each proposed project,

47-2  the method of financing each project and the costs related to each

47-3  project. Before adopting a plan pursuant to this subsection, the

47-4  board of county commissioners of a county in which a regional

47-5  planning commission has been established pursuant to NRS

47-6  278.0262 shall transmit to the regional planning commission a list

47-7  of the proposed projects for which a tax for infrastructure may be

47-8  imposed. The regional planning commission shall hold a public

47-9  hearing at which it shall rank each project in relative priority.

47-10  The regional planning commission shall transmit its rankings to the

47-11  board of county commissioners. The recommendations of the

47-12  regional planning commission regarding the priority of the proposed

47-13  projects are not binding on the board of county commissioners. The

47-14  board of county commissioners shall hold at least one public hearing

47-15  on the plan. Notice of the time and place of the hearing must be

47-16  provided in the manner set forth in subsection 5. The plan must be

47-17  approved by the board of county commissioners at a public hearing.

47-18  Subject to the provisions of subsection 7, on or before the date on

47-19  which a plan expires, the board of county commissioners shall

47-20  determine whether a necessity exists for the continued imposition of

47-21  the tax. If the board determines that such a necessity does not exist,

47-22  the board shall repeal the ordinance that enacted the tax. If the board

47-23  of county commissioners determines that the tax must be continued

47-24  for a purpose set forth in NRS 377B.160, the board shall adopt, in

47-25  the manner prescribed in this subsection, a new plan for the

47-26  expenditure of the proceeds of the tax for such a purpose.

47-27     7.  No ordinance imposing a tax which is enacted pursuant to

47-28  this chapter may be repealed or amended or otherwise directly or

47-29  indirectly modified in such a manner as to impair any outstanding

47-30  bonds or other obligations which are payable from or secured by a

47-31  pledge of a tax enacted pursuant to this chapter until those bonds or

47-32  other obligations have been discharged in full.

47-33     Sec. 91.  NRS 377B.110 is hereby amended to read as follows:

47-34     377B.110  An ordinance enacted pursuant to this chapter must

47-35  include provisions in substance as follows:

47-36     1.  A provision imposing a tax upon retailers at the rate of not

47-37  more than:

47-38     (a) In a county whose population is 100,000 or more but less

47-39  than 400,000, one-eighth of 1 percent; or

47-40     (b) In all other counties, one-quarter of 1 percent,

47-41  of the gross receipts of any retailer from the sale of all tangible

47-42  personal property sold at retail, or stored, used or otherwise

47-43  consumed, in the county.

47-44     2.  Provisions substantially identical to those contained in

47-45  chapter 374 of NRS, insofar as applicable.

48-1      3.  A provision that all amendments to chapter 374 of NRS after

48-2  the date of enactment of the ordinance, not inconsistent with this

48-3  chapter, automatically become a part of an ordinance enacted

48-4  pursuant to this chapter.

48-5      4.  A provision stating the specific purpose for which the

48-6  proceeds of the tax must be expended.

48-7      5.  A provision that the county shall contract before the

48-8  effective date of the ordinance with the Department to perform all

48-9  functions incident to the administration or operation of the tax in the

48-10  county.

48-11     6.  A provision that [exempts from the tax or any increase in the

48-12  tax the gross receipts from] a purchaser is entitled to a refund, in

48-13  accordance with the provisions of NRS 374.635 to 374.720,

48-14  inclusive, of the amount of the tax required to be paid that is

48-15  attributable to the tax imposed upon the sale of, and the storage,

48-16  use or other consumption in a county of, tangible personal property

48-17  used for the performance of a written contract:

48-18     (a) Entered into on or before the effective date of the tax or the

48-19  increase in the tax; or

48-20     (b) For the construction of an improvement to real property for

48-21  which a binding bid was submitted before the effective date of the

48-22  tax or the increase in the tax if the bid was afterward

48-23  accepted,

48-24  if, under the terms of the contract or bid, the contract price or bid

48-25  amount cannot be adjusted to reflect the imposition of the tax or the

48-26  increase in the tax.

48-27     Sec. 92.  NRS 354.705 is hereby amended to read as follows:

48-28     354.705  1.  As soon as practicable after the Department takes

48-29  over the management of a local government, the Executive Director

48-30  shall:

48-31     (a) Determine the total amount of expenditures necessary to

48-32  allow the local government to perform the basic functions for which

48-33  it was created;

48-34     (b) Determine the amount of revenue reasonably expected to be

48-35  available to the local government; and

48-36     (c) Consider any alternative sources of revenue available to the

48-37  local government.

48-38     2.  If the Executive Director determines that the available

48-39  revenue is not sufficient to provide for the payment of required debt

48-40  service and operating expenses, he may submit his findings to the

48-41  Committee who shall review the determinations made by the

48-42  Executive Director. If the Committee determines that additional

48-43  revenue is needed, it shall prepare a recommendation to the Nevada

48-44  Tax Commission as to which one or more of the following

49-1  additional taxes or charges should be imposed by the local

49-2  government:

49-3      (a) The levy of a property tax up to a rate which when combined

49-4  with all other overlapping rates levied in the State does not exceed

49-5  $4.50 on each $100 of assessed valuation.

49-6      (b) An additional tax on transient lodging at a rate not to exceed

49-7  1 percent of the gross receipts from the rental of transient lodging

49-8  within the boundaries of the local government upon all persons in

49-9  the business of providing lodging. Any such tax must be collected

49-10  and administered in the same manner as all other taxes on transient

49-11  lodging are collected by or for the local government.

49-12     (c) Additional service charges appropriate to the local

49-13  government.

49-14     (d) If the local government is a county or has boundaries that are

49-15  conterminous with the boundaries of the county:

49-16         (1) An additional tax on the gross receipts from the sale or

49-17  use of tangible personal property not to exceed one quarter of 1

49-18  percent throughout the county. The ordinance imposing any such tax

49-19  must [include] :

49-20             (I) Include provisions in substance which comply with

49-21  the requirements of subsections 2 to 5, inclusive, of NRS 377A.030.

49-22             (II) Specify the date on which the tax must first be

49-23  imposed or on which a change in the rate of the tax becomes

49-24  effective, which must be the first day of the first calendar quarter

49-25  that begins at least 120 days after the effective date of the

49-26  ordinance.

49-27         (2) An additional governmental services tax of not more than

49-28  1 cent on each $1 of valuation of the vehicle for the privilege of

49-29  operating upon the public streets, roads and highways of the county

49-30  on each vehicle based in the county except those vehicles exempt

49-31  from the governmental services tax imposed pursuant to chapter 371

49-32  of NRS or a vehicle subject to NRS 706.011 to 706.861, inclusive,

49-33  which is engaged in interstate or intercounty operations. As used in

49-34  this subparagraph, “based” has the meaning ascribed to it in

49-35  NRS 482.011.

49-36     3.  Upon receipt of the plan from the Committee, a panel

49-37  consisting of three members of the Nevada Tax Commission

49-38  appointed by the Nevada Tax Commission and three members of the

49-39  Committee appointed by the Committee shall hold a public hearing

49-40  at a location within the boundaries of the local government in which

49-41  the severe financial emergency exists after giving public notice of

49-42  the hearing at least 10 days before the date on which the hearing will

49-43  be held. In addition to the public notice, the panel shall give notice

49-44  to the governing body of each local government whose jurisdiction

50-1  overlaps with the jurisdiction of the local government in which the

50-2  severe financial emergency exists.

50-3      4.  After the public hearing conducted pursuant to subsection 3,

50-4  the Nevada Tax Commission may adopt the plan as submitted or

50-5  adopt a revised plan. Any plan adopted pursuant to this section must

50-6  include the duration for which any new or increased taxes or charges

50-7  may be collected which must not exceed 5 years.

50-8      5.  Upon adoption of the plan by the Nevada Tax Commission,

50-9  the local government in which the severe financial emergency exists

50-10  shall impose or cause to be imposed the additional taxes and charges

50-11  included in the plan for the duration stated in the plan or until the

50-12  severe financial emergency has been determined by the Nevada Tax

50-13  Commission to have ceased to exist.

50-14     6.  The allowed revenue from taxes ad valorem determined

50-15  pursuant to NRS 354.59811 does not apply to any additional

50-16  property tax levied pursuant to this section.

50-17     7.  If a plan fails to satisfy the expenses of the local government

50-18  to the extent expected, the Committee shall report such failure to:

50-19     (a) The county for consideration of absorption of services; or

50-20     (b) If the local government is a county, to the next regular

50-21  session of the Legislature.

50-22     Sec. 93.  NRS 482.225 is hereby amended to read as follows:

50-23     482.225  1.  When application is made to the Department for

50-24  registration of a vehicle purchased [in this state from a person other

50-25  than a retailer required to be registered with the Department of

50-26  Taxation or of a vehicle purchased] outside this state and not

50-27  previously registered within this state where the registrant or owner

50-28  at the time of purchase was not a resident of or employed in this

50-29  state, the Department or its agent shall determine and collect any

50-30  sales or use tax due and shall remit the tax to the Department of

50-31  Taxation except as otherwise provided in NRS 482.260.

50-32     2.  If the registrant or owner of the vehicle was a resident of the

50-33  State, or employed within the State, at the time of the purchase of

50-34  that vehicle, it is presumed that the vehicle was purchased for use

50-35  within the State and the representative or agent of the Department of

50-36  Taxation shall collect the tax and remit it to the Department of

50-37  Taxation.

50-38     3.  Until all applicable taxes and fees are collected, the

50-39  Department shall refuse to register the vehicle.

50-40     4.  In any county whose population is less than 50,000, the

50-41  Department shall designate the county assessor as the agent of the

50-42  Department for the collection of any sales or use tax.

50-43     5.  If the registrant or owner desires to refute the presumption

50-44  stated in subsection 2 that he purchased the vehicle for use in this

50-45  state, he must pay the tax to the Department and then may submit

51-1  his claim for exemption in writing, signed by him or his authorized

51-2  representative, to the Department together with his claim for refund

51-3  of tax erroneously or illegally collected.

51-4      6.  If the Department finds that the tax has been erroneously or

51-5  illegally collected, the tax must be refunded.

51-6      Sec. 94.  Section 29 of the Local Government Tax Act of 1991,

51-7  being chapter 491, Statutes of Nevada 1991, as amended by chapter

51-8  426, Statutes of Nevada 1993, at page 1370, is hereby amended to

51-9  read as follows:

51-10     Sec. 29.  1.  Except as otherwise provided in this

51-11  section and in section 34 of this Act and in addition to all

51-12  other sales and use taxes, the Board of County

51-13  Commissioners of Churchill, Elko, Humboldt, Washoe and

51-14  Lander Counties and the Board of Supervisors of Carson City

51-15  may by ordinance, but not as in a case of emergency, impose

51-16  a tax at the rate of up to 1/4 of 1 percent of the gross receipts

51-17  of any retailer from the sale of all tangible personal property

51-18  sold at retail, or stored, used or otherwise consumed in the

51-19  county.

51-20     2.  The tax imposed pursuant to this section applies

51-21  throughout the county, including incorporated cities in the

51-22  county.

51-23     3.  The ordinance enacted pursuant to this section must

51-24  include provisions in substance as follows:

51-25     (a) Provisions substantially identical to those of the Local

51-26  School Support Tax Law, insofar as applicable.

51-27     (b) A provision that all amendments to the provisions of

51-28  the Local School Support Tax Law subsequent to the date of

51-29  enactment of the ordinance, not inconsistent with this section,

51-30  automatically become a part of the ordinance enacted

51-31  pursuant to subsection 1.

51-32     (c) A provision that the county shall contract before the

51-33  effective date of the ordinance enacted pursuant to subsection

51-34  1 with the Department to perform all functions incident to the

51-35  administration or operation of the tax imposed pursuant to

51-36  subsection 1.

51-37     (d) A provision that [exempts from the additional one

51-38  quarter of one percent tax increase authorized pursuant to this

51-39  section, the gross receipts from] a purchaser is entitled to a

51-40  refund, in accordance with the provisions of NRS 374.635

51-41  to 374.720, inclusive, of the amount of the tax required to be

51-42  paid that is attributable to the tax imposed upon the sale of,

51-43  and the storage, use or other consumption in a county of,

51-44  tangible personal property used for the performance of a

51-45  written contract for the construction of an improvement to

52-1  real property which was executed before July 30, 1991, or for

52-2  which a binding bid was submitted before that date if the bid

52-3  was afterward accepted, if under the terms of the contract or

52-4  bid the contract price or bid amount cannot be adjusted to

52-5  reflect the imposition of the additional tax pursuant to this

52-6  section.

52-7      (e) A provision that specifies the date on which the tax is

52-8  first imposed or on which any change in the rate of the tax

52-9  becomes effective, which must be the first day of the first

52-10  calendar quarter that begins at least 120 days after the

52-11  effective date of the ordinance.

52-12     4.  All fees, taxes, interest and penalties imposed and all

52-13  amounts of tax required to be paid to the county under this

52-14  section must be paid to the Department of Taxation in the

52-15  form of remittances made payable to the Department of

52-16  Taxation.

52-17     5.  The Department of Taxation shall deposit the

52-18  payments with the State Treasurer for credit to the tax

52-19  distribution fund for the county in which it was collected.

52-20     6.  Any ordinance enacted pursuant to this section is

52-21  deemed to include the provisions set forth in paragraph (d) of

52-22  subsection 3.

52-23     Sec. 95.  Section 9 of chapter 566, Statutes of Nevada 1993, at

52-24  page 2329, is hereby amended to read as follows:

52-25     Sec. 9. 1.  The Commission shall adopt a budget for its

52-26  operation and for each project it proposes for presentation to

52-27  the governing bodies. Each budget must be accompanied by a

52-28  proposed allocation of the net cost of the budget among the

52-29  governing bodies which must be based upon the benefit of the

52-30  commission or project to the jurisdiction of the governing

52-31  body or another equally appropriate indicator.

52-32     2.  Upon final determination and allocation of the costs

52-33  by agreement of the governing bodies, each governing body

52-34  shall include its portion of the costs in its budget for the

52-35  purposes of chapter 354 of NRS and shall fund its share of the

52-36  cost by:

52-37     (a) Issuing bonds pursuant to chapter 350 of NRS;

52-38     (b) Imposing an additional tax on the rental of transient

52-39  lodging;

52-40     (c) Upon approval by the voters, imposing an additional

52-41  tax upon retailers at a rate not exceeding one-half of 1 percent

52-42  of the gross receipts of any retailer from the sale of tangible

52-43  personal property sold at retail, or stored, used or otherwise

52-44  consumed in the county;

53-1      (d) Upon approval of the voters, levying a property tax

53-2  not exceeding 2 cents per $100 of assessed valuation on all

53-3  taxable property in the county; or

53-4      (e) Any combination of the options provided in

53-5  paragraphs (a) to (d), inclusive, including the issuance of

53-6  bonds which will be repaid from the revenue of one or more

53-7  of the taxes authorized in this section which may be treated as

53-8  pledged revenues for the purposes of NRS 350.020.

53-9      3.  If the county imposes a tax pursuant to paragraph (c)

53-10  of subsection 2 it shall include in the ordinance imposing the

53-11  tax:

53-12     (a) Provisions substantially identical to those contained in

53-13  chapter 374 of NRS;

53-14     (b) A provision stating that all amendments to chapter

53-15  374 of NRS after the date of enactment of the ordinance, not

53-16  inconsistent with the provisions of the ordinance,

53-17  automatically become a part of the ordinance;

53-18     (c) A provision that the county shall contract before the

53-19  effective date of the ordinance with the Department to

53-20  perform all functions incident to the administration or

53-21  operation of the tax in the county; and

53-22     (d) The date on which the tax must first be imposed,

53-23  which must [not be earlier than] be the first day of the

53-24  [second calendar month following] first calendar quarter

53-25  that begins at least 120 days after the adoption of the

53-26  ordinance by the governing body.

53-27     4.  The Commission is not entitled to a distribution of

53-28  revenue from the supplemental city-county relief tax.

53-29     Sec. 96.  Section 3 of the Elko County Hospital Tax Act, being

53-30  chapter 14, Statutes of Nevada 1997, at page 29, is hereby amended

53-31  to read as follows:

53-32     Sec. 3. 1.  The Board may enact an ordinance

53-33  imposing a tax for the construction of a hospital pursuant to

53-34  section 4 of this Act.

53-35     2.  A tax so imposed may be collected for not more than

53-36  4 years after the date upon which it is first imposed. The

53-37  ending date of the tax must be specified in the ordinance.

53-38     3.  An ordinance enacted pursuant to this act may not

53-39  become effective before a question concerning the imposition

53-40  of the tax is approved by a majority of the registered voters of

53-41  Elko County voting upon the question. The Board may

53-42  submit the question to the voters at a special election held at

53-43  the same time and places as a municipal election or at a

53-44  general election. The Board shall also submit to the voters at

53-45  such a special or general election any proposal to increase the

54-1  rate of the tax or change the previously approved uses for the

54-2  proceeds of the tax.

54-3      4.  Any ordinance enacted pursuant to this section must

54-4  specify the date on which the tax must first be imposed or on

54-5  which an increase in the rate of the tax becomes effective,

54-6  which must [not be earlier than] be the first day of the

54-7  [second calendar month following] first calendar quarter

54-8  that begins at least 120 days after the approval of the

54-9  question by the voters.

54-10     Sec. 97.  Section 4 of the Elko County Hospital Tax Act, being

54-11  chapter 14, Statutes of Nevada 1997, at page 30, is hereby amended

54-12  to read as follows:

54-13     Sec. 4.  Except as otherwise provided in section 12 of

54-14  this Act, any ordinance adopted pursuant to this Act, except

54-15  an ordinance authorizing the issuance of bonds or other

54-16  securities, must include provisions in substance as follows:

54-17     1.  A provision imposing a tax upon retailers at the rate

54-18  of not more than 1 percent of the gross receipts of any retailer

54-19  from the sale of all tangible personal property sold at retail, or

54-20  stored, used or otherwise consumed, in Elko County.

54-21     2.  Provisions substantially identical to those contained in

54-22  chapter 374 of NRS, insofar as applicable.

54-23     3.  A provision that all amendments to chapter 374 of

54-24  NRS after the date of enactment of the ordinance, not

54-25  inconsistent with this act, automatically become a part of an

54-26  ordinance imposing the taxes.

54-27     4.  A provision that the Board shall contract before the

54-28  effective date of the taxing ordinance with the Department to

54-29  perform all functions incident to the administration or

54-30  operation of the tax in the County.

54-31     5.  A provision that [exempts from the tax or any

54-32  increase in the tax the gross receipts from] a purchaser is

54-33  entitled to a refund, in accordance with the provisions of

54-34  NRS 374.635 to 374.720, inclusive, of the amount of the tax

54-35  required to be paid that is attributable to the tax imposed

54-36  upon the sale of, and the storage, use or other consumption in

54-37  a county of, tangible personal property used for the

54-38  performance of a written contract for the construction of an

54-39  improvement to real property, entered into on or before the

54-40  effective date of the tax or the increase in the tax, or for

54-41  which a binding bid was submitted before that date if the bid

54-42  was afterward accepted, if under the terms of the contract or

54-43  bid the contract price or bid amount cannot be adjusted to

54-44  reflect the imposition of the tax or the increase in the tax.

55-1      Sec. 98.  Section 13 of the Elko County Hospital Tax Act,

55-2  being chapter 14, Statutes of Nevada 1997, at page 32, is hereby

55-3  amended to read as follows:

55-4      Sec. 13. 1.  Subject to the provisions of subsection 2,

55-5  the Board may gradually reduce the amount of the tax

55-6  imposed pursuant to this Act. The date on which any

55-7  reduction in the tax becomes effective must be the first day

55-8  of the first calendar quarter that begins at least 120 days

55-9  after the effective date of the ordinance reducing the

55-10  amount of the tax imposed.

55-11     2.  No such taxing ordinance may be repealed or

55-12  amended or otherwise directly or indirectly modified in such

55-13  a manner as to impair any outstanding bonds issued pursuant

55-14  to this Act, or other obligations incurred pursuant to this Act,

55-15  until all obligations, for which revenues from the ordinance

55-16  have been pledged or otherwise made payable from such

55-17  revenues pursuant to this act, have been discharged in full.

55-18     Sec. 99.  Section 8A.080 of the Charter of Carson City, being

55-19  chapter 16, Statutes of Nevada 1997, at page 43, is hereby amended

55-20  to read as follows:

55-21     Sec. 8A.080  Required provisions of ordinance.  An

55-22  ordinance enacted pursuant to this article, except an

55-23  ordinance authorizing the issuance of bonds or other

55-24  securities, must include provisions in substance as follows:

55-25     1.  A provision imposing a tax of not more than one-

55-26  quarter of 1 percent of the gross receipts of any retailer from

55-27  the sale of all personal property sold at retail, or stored, used

55-28  or otherwise consumed in Carson City.

55-29     2.  Provisions substantially identical to those contained in

55-30  chapter 374 of NRS, insofar as applicable.

55-31     3.  A provision that an amendment to chapter 374 of

55-32  NRS after the date of enactment of the ordinance, not

55-33  inconsistent with this article, automatically becomes a part of

55-34  the ordinance imposing the tax.

55-35     4.  A provision that the Board shall contract before the

55-36  effective date of the ordinance with the Department to

55-37  perform all the functions incident to the administration or

55-38  operation of the tax in Carson City.

55-39     5.  A provision that [exempts from the tax the gross

55-40  receipts from] a purchaser is entitled to a refund, in

55-41  accordance with the provisions of NRS 374.635 to 374.720,

55-42  inclusive, of the amount of the tax required to be paid that is

55-43  attributable to the tax imposed upon the sale of tangible

55-44  personal property used for the performance of a written

56-1  contract for the construction of an improvement to real

56-2  property:

56-3      (a) That was entered into on or before the effective date

56-4  of the tax; or

56-5      (b) For which a binding bid was submitted before that

56-6  date if the bid was afterward accepted,

56-7  and pursuant to the terms of the contract or bid, the contract

56-8  price or bid amount may not be adjusted to reflect the

56-9  imposition of the tax.

56-10     6.  A provision that specifies the date on which the tax

56-11  is first imposed or on which any changes in the rate of the

56-12  tax becomes effective, which must be the first day of the first

56-13  calendar quarter that begins at least 120 days after the

56-14  effective date of the ordinance.

56-15     Sec. 100.  Section 24 of the Railroad Grade Separation Projects

56-16  Act, being chapter 506, Statutes of Nevada 1997, as last amended by

56-17  chapter 28, Statutes of Nevada 1999, at page 64, is hereby amended

56-18  to read as follows:

56-19     Sec. 24. 1.  The Board of County Commissioners of

56-20  Washoe County may by ordinance, but not as in a case of

56-21  emergency, impose a tax upon the retailers at the rate of not

56-22  more than one-eighth of 1 percent of the gross receipts of any

56-23  retailer from the sale of all tangible personal property sold at

56-24  retail, or stored, used or otherwise consumed in the county if:

56-25     (a) The City of Reno imposes a tax on the rental of

56-26  transient lodging pursuant to NRS 268.7845 in the maximum

56-27  amount allowed by that section; and

56-28     (b) The Board receives a written commitment from one or

56-29  more sources for the expenditure of not less than one-half of

56-30  the total cost of a project for the acquisition, establishment,

56-31  construction or expansion of railroad grade separation

56-32  projects in Washoe County, including the estimated proceeds

56-33  of the tax described in paragraph (a).

56-34     2.  An ordinance enacted pursuant to subsection 1 may

56-35  not become effective before a question concerning the

56-36  imposition of the tax is approved by a two-thirds majority of

56-37  the members of the Board of County Commissioners.

56-38     3.  An ordinance enacted pursuant to subsection 1 must

56-39  specify the date on which the tax must first be imposed which

56-40  must occur on the first day of the first month of the next

56-41  calendar quarter that is at least [60] 120 days after the date on

56-42  which a two-thirds majority of the Board of County

56-43  Commissioners approved the question.

56-44     4.  An ordinance enacted pursuant to subsection 1 must

56-45  include provisions in substance as follows:

57-1      (a) Provisions substantially identical to those contained in

57-2  chapter 374 of NRS, insofar as applicable.

57-3      (b) A provision that all amendments to chapter 374 of

57-4  NRS after the date of enactment of the ordinance, not

57-5  inconsistent with this section, automatically become a part of

57-6  an ordinance enacted pursuant to subsection 1.

57-7      (c) A provision stating the specific purpose for which the

57-8  proceeds of the tax must be expended.

57-9      (d) A provision that [exempts from the tax the gross

57-10  receipts from] a purchaser is entitled to a refund, in

57-11  accordance with the provisions of NRS 374.635 to 374.720,

57-12  inclusive, of the amount of the tax required to be paid that is

57-13  attributable to the tax imposed upon the sale of, and the

57-14  storage, use or other consumption in a county of, tangible

57-15  personal property used for the performance of a written

57-16  contract:

57-17         (1) Entered into on or before the effective date of the

57-18  tax; or

57-19         (2) For the construction of an improvement to real

57-20  property for which a binding bid was submitted before the

57-21  effective date of the tax if the bid was afterward

57-22  accepted,

57-23  if under the terms of the contract or bid the contract price or

57-24  bid amount cannot be adjusted to reflect the imposition of the

57-25  tax.

57-26     5.  No ordinance imposing a tax which is enacted

57-27  pursuant to subsection 1 may be repealed or amended or

57-28  otherwise directly or indirectly modified in such a manner as

57-29  to impair any outstanding bonds or other obligations which

57-30  are payable from or secured by a pledge of a tax enacted

57-31  pursuant to subsection 1 until those bonds or other obligations

57-32  have been discharged in full.

57-33     6.  All fees, taxes, interest and penalties imposed and all

57-34  amounts of tax required to be paid to the County pursuant to

57-35  this section must be paid to the Department of Taxation in the

57-36  form of remittances payable to the Department of Taxation.

57-37     7.  The Department of Taxation shall deposit the

57-38  payments with the State Treasurer for credit to the Sales and

57-39  Use Tax Account in the State General Fund.

57-40     8.  The State Controller, acting upon the collection data

57-41  furnished by the Department of Taxation, shall monthly:

57-42     (a) Transfer from the Sales and Use Tax Account to the

57-43  appropriate account in the State General Fund a percentage of

57-44  all fees, taxes, interest and penalties collected pursuant to this

57-45  section during the preceding month as compensation to the

58-1  state for the cost of collecting the taxes. The percentage to be

58-2  transferred pursuant to this paragraph must be the same

58-3  percentage as the percentage of proceeds transferred pursuant

58-4  to paragraph (a) of subsection 3 of NRS 374.785 but the

58-5  percentage must be applied to the proceeds collected pursuant

58-6  to this section only.

58-7      (b) Determine for the County an amount of money equal

58-8  to any fees, taxes, interest and penalties collected in or for the

58-9  county pursuant to this section during the preceding month,

58-10  less the amount transferred to the State General Fund

58-11  pursuant to paragraph (a).

58-12     (c) Transfer the amount determined for the County to the

58-13  intergovernmental fund and remit the money to the County

58-14  Treasurer.

58-15     9.  The County Treasurer shall deposit the money

58-16  received pursuant to subsection 8 in the County Treasury for

58-17  credit to a fund to be known as the Railroad Grade Separation

58-18  Projects Fund. The Railroad Grade Separation Projects Fund

58-19  must be accounted for as a separate fund and not as a part of

58-20  any other fund.

58-21     10.  The money in the Railroad Grade Separation

58-22  Projects Fund, including interest and any other income from

58-23  the Fund must be used by the Board of County

58-24  Commissioners for the cost of the acquisition, establishment,

58-25  construction or expansion of one or more railroad grade

58-26  separation projects, including the payment and prepayment of

58-27  principal and interest on notes, bonds or other obligations

58-28  issued to fund such projects.

58-29     Sec. 101.  Section 18 of the Douglas County Sales and Use Tax

58-30  Act of 1999, being chapter 37, Statutes of Nevada 1999, at page 83,

58-31  is hereby amended to read as follows:

58-32     Sec. 18. An ordinance enacted pursuant to this act,

58-33  except an ordinance authorizing the issuance of bonds or

58-34  other securities, must include provisions in substance as

58-35  follows:

58-36     1.  A provision imposing a tax of not more than one-

58-37  quarter of 1 percent of the gross receipts of any retailer from

58-38  the sale of all tangible personal property sold at retail or

58-39  stored, used or otherwise consumed in the County.

58-40     2.  Provisions substantially identical to those contained in

58-41  chapter 374 of NRS, insofar as applicable.

58-42     3.  A provision that an amendment to chapter 374 of

58-43  NRS enacted after the effective date of the ordinance, not

58-44  inconsistent with this act, automatically becomes part of the

58-45  ordinance imposing the tax.

59-1      4.  A provision that the Board shall contract before the

59-2  effective date of the ordinance with the Department to

59-3  perform all the functions incident to the administration or

59-4  operation of the tax in the County.

59-5      5.  A provision that [exempts from the tax the gross

59-6  receipts from] a purchaser is entitled to a refund, in

59-7  accordance with the provisions of NRS 374.635 to 374.720,

59-8  inclusive, of the amount of the tax required to be paid that is

59-9  attributable to the tax imposed upon the sale of tangible

59-10  personal property used for the performance of a written

59-11  contract for the construction of an improvement to real

59-12  property:

59-13     (a) That was entered into on or before the effective date

59-14  of the tax; or

59-15     (b) For which a binding bid was submitted before that

59-16  date if the bid was afterward accepted,

59-17  and pursuant to the terms of the contract or bid, the contract

59-18  price or bid amount may not be adjusted to reflect the

59-19  imposition of the tax.

59-20     6.  A provision that specifies the date on which the tax

59-21  is first imposed or on which any change in the rate of the

59-22  tax becomes effective, which must be the first day of the first

59-23  calendar quarter that begins at least 120 days after the

59-24  effective date of the ordinance.

59-25     Sec. 102.  Section 24 of chapter 364, Statutes of Nevada 2001,

59-26  at page 1716, is hereby amended to read as follows:

59-27     Sec. 24.  1.  This section, sections 1 to 13, inclusive,

59-28  and 17 to 23, inclusive, of this act become effective upon

59-29  passage and approval.

59-30     2.  [Sections 14, 15 and] Section 16 of this act [become]

59-31  becomes effective on the date this state becomes a member of

59-32  the streamlined sales and use tax agreement.

59-33     3.  Sections 14 and 15 of this act become effective on

59-34  January 1, 2006.

59-35     Sec. 103.  At the general election on November 2, 2004, a

59-36  proposal must be submitted to the registered voters of this state to

59-37  amend the Sales and Use Tax Act, which was enacted by the 47th

59-38  Session of the Legislature of the State of Nevada and approved by

59-39  the Governor in 1955, and subsequently approved by the people of

59-40  this state at the general election held on November 6, 1956.

59-41     Sec. 104.  At the time and in the manner provided by law, the

59-42  Secretary of State shall transmit the proposed act to the several

59-43  county clerks, and the county clerks shall cause it to be published

59-44  and posted as provided by law.

60-1      Sec. 105.  The proclamation and notice to the voters given by

60-2  the county clerks pursuant to law must be in substantially the

60-3  following form:

60-4      Notice is hereby given that at the general election on

60-5  November 2, 2004, a question will appear on the ballot for the

60-6  adoption or rejection by the registered voters of the State of the

60-7  following proposed act:

60-8  AN ACT to amend an Act entitled “An Act to provide

60-9  revenue for the State of Nevada; providing for sales and

60-10  use taxes; providing for the manner of collection; defining

60-11  certain terms; providing penalties for violation, and other

60-12  matters properly relating thereto.” approved March 29,

60-13  1955, as amended.

 

60-14  THE PEOPLE OF THE STATE OF NEVADA

60-15  DO ENACT AS FOLLOWS:

 

60-16     Section1. The above-entitled act, being chapter 397,

60-17  Statutes of Nevada 1955, at page 762, is hereby amended by

60-18  adding thereto a new section to be designated as section 56.3,

60-19  immediately following section 56.2, to read as follows:

60-20     Sec. 56.3. 1.  There are exempted from the taxes

60-21  imposed by this act the gross receipts from the sale of,

60-22  and the storage, use or other consumption in a county of,

60-23  farm machinery and equipment employed for the

60-24  agricultural use of real property.

60-25     2.  As used in this section:

60-26     (a) “Agricultural use” has the meaning ascribed to it

60-27  in NRS 361A.030.

60-28     (b) “Farm machinery and equipment” means a farm

60-29  tractor, implement of husbandry, piece of equipment

60-30  used for irrigation, or a part used in the repair or

60-31  maintenance of farm machinery and equipment. The

60-32  term does not include:

60-33         (1) A vehicle required to be registered pursuant to

60-34  the provisions of chapter 482 or 706 of NRS; or

60-35         (2) Machinery or equipment only incidentally

60-36  employed for the agricultural use of real property.

60-37     (c) “Farm tractor” means a motor vehicle designed

60-38  and used primarily for drawing an implement of

60-39  husbandry.

60-40     (d) “Implement of husbandry” means a vehicle that

60-41  is designed, adapted or used for agricultural purposes,

60-42  including, without limitation, a plow, machine for

60-43  mowing, hay baler, combine, piece of equipment used to

61-1  stack hay, till, harvest, handle agricultural commodities

61-2  or apply fertilizers, or other heavy, movable equipment

61-3  designed, adapted or used for agricultural purposes.

61-4      Sec.2. This act becomes effective on January 1, 2006.

61-5      Sec. 106.  The ballot page assemblies and the paper ballots to

61-6  be used in voting on the question must present the question in

61-7  substantially the following form:

61-8      Shall the Sales and Use Tax Act of 1955 be amended to

61-9  provide an exemption from the taxes imposed by this Act on

61-10  the gross receipts from the sale and the storage, use or other

61-11  consumption of farm machinery and equipment employed for

61-12  the agricultural use of real property?

61-13  Yes ¨          No ¨

61-14     Sec. 107.  The explanation of the question which must appear

61-15  on each paper ballot and sample ballot and in every publication and

61-16  posting of notice of the question must be in substantially the

61-17  following form:

 

61-18  (Explanation of Question)

61-19     The proposed amendment to the Sales and Use Tax Act of

61-20  1955 would exempt from the taxes imposed by this Act the

61-21  gross receipts from the sale and the storage, use or other

61-22  consumption of farm machinery and equipment employed for

61-23  the agricultural use of real property.

61-24     Sec. 108.  At the general election on November 2, 2004, a

61-25  proposal must be submitted to the registered voters of this state to

61-26  amend the Sales and Use Tax Act, which was enacted by the 47th

61-27  Session of the Legislature of the State of Nevada and approved by

61-28  the Governor in 1955, and subsequently approved by the people of

61-29  this state at the general election held on November 6, 1956.

61-30     Sec. 109.  At the time and in the manner provided by law, the

61-31  Secretary of State shall transmit the proposed act to the several

61-32  county clerks, and the county clerks shall cause it to be published

61-33  and posted as provided by law.

61-34     Sec. 110.  The proclamation and notice to the voters given by

61-35  the county clerks pursuant to law must be in substantially the

61-36  following form:

61-37     Notice is hereby given that at the general election on

61-38  November 2, 2004, a question will appear on the ballot for the

61-39  adoption or rejection by the registered voters of the State of the

61-40  following proposed act:

61-41  AN ACT to amend an Act entitled “An Act to provide

61-42  revenue for the State of Nevada; providing for sales and

61-43  use taxes; providing for the manner of collection; defining

61-44  certain terms; providing penalties for

62-1  violation, and other matters properly relating thereto.”

62-2  approved March 29, 1955, as amended.

 

62-3  THE PEOPLE OF THE STATE OF NEVADA

62-4  DO ENACT AS FOLLOWS:

 

62-5      Section1. Section 15 of the above-entitled act, being

62-6  chapter 397, Statutes of Nevada 1955, at page 765, is hereby

62-7  amended to read as follows:

62-8      Sec. 15.  1.  “Retailer” includes:

62-9      (a) Every seller who makes any retail sale or sales of

62-10  tangible personal property, and every person engaged in

62-11  the business of making retail sales at auction of tangible

62-12  personal property owned by the person or others.

62-13     (b) Every person engaged in the business of making

62-14  sales for storage, use or other consumption or in the

62-15  business of making sales at auction of tangible personal

62-16  property owned by the person or others for storage, use or

62-17  other consumption.

62-18     (c) Every person making more than two retail sales of

62-19  tangible personal property during any 12‑month period,

62-20  including sales made in the capacity of assignee for the

62-21  benefit of creditors, or receiver or trustee in bankruptcy.

62-22     2.  When the Tax Commission determines that it is

62-23  necessary for the efficient administration of this chapter to

62-24  regard any salesmen, representatives, peddlers or

62-25  canvassers as the agents of the dealers, distributors,

62-26  supervisors or employers under whom they operate or

62-27  from whom they obtain the tangible personal property sold

62-28  by them, irrespective of whether they are making sales on

62-29  their own behalf or on behalf of such dealers, distributors,

62-30  supervisors or employers, the Tax Commission may so

62-31  regard them and may regard the dealers, distributors,

62-32  supervisors or employers as retailers for purposes of this

62-33  chapter.

62-34     [3.  A licensed optometrist or physician and surgeon

62-35  is a consumer of, and shall not be considered, a retailer

62-36  within the provisions of this chapter, with respect to the

62-37  ophthalmic materials used or furnished by him in the

62-38  performance of his professional services in the diagnosis,

62-39  treatment or correction of conditions of the human eye,

62-40  including the adaptation of lenses or frames for the aid

62-41  thereof.]

62-42     Sec.2. Section 56.1 of the above-entitled act, being

62-43  chapter 397, Statutes of Nevada 1955, as added by chapter

63-1  306, Statues of Nevada 1969, at page 532, and amended by

63-2  chapter 627, Statutes of Nevada 1985, at page 2028, and

63-3  amended by chapter 404, Statutes of Nevada 1995, at page

63-4  1007, is hereby amended to read as follows:

63-5      Sec. 56.1.  1.  There are exempted from the taxes

63-6  imposed by this act the gross receipts from sales and the

63-7  storage, use or other consumption of:

63-8      (a) Prosthetic devices, orthotic appliances and

63-9  ambulatory casts for human use, and other supports and

63-10  casts if prescribed or applied by a licensed provider of

63-11  health care, within his scope of practice, for human use.

63-12     (b) Appliances and supplies relating to an ostomy.

63-13     (c) Products for hemodialysis.

63-14     (d) Any ophthalmic or ocular device or appliance

63-15  prescribed by a physician or optometrist.

63-16     (e) Medicines:

63-17         (1) Prescribed for the treatment of a human being

63-18  by a person authorized to prescribe medicines, and

63-19  dispensed on a prescription filled by a registered

63-20  pharmacist in accordance with law;

63-21         (2) Furnished by a licensed physician, dentist or

63-22  podiatric physician to his own patient for the treatment of

63-23  the patient;

63-24         (3) Furnished by a hospital for treatment of any

63-25  person pursuant to the order of a licensed physician,

63-26  dentist or podiatric physician; or

63-27         (4) Sold to a licensed physician, dentist, podiatric

63-28  physician or hospital for the treatment of a human being.

63-29     2.  As used in this section:

63-30     (a) “Medicine” means any substance or preparation

63-31  intended for use by external or internal application to the

63-32  human body in the diagnosis, cure, mitigation, treatment

63-33  or prevention of disease or affliction of the human body

63-34  and which is commonly recognized as a substance or

63-35  preparation intended for such use. The term includes

63-36  splints, bandages, pads, compresses and dressings.

63-37     (b) “Medicine” does not include:

63-38         (1) Any auditory [, ophthalmic or ocular] device or

63-39  appliance.

63-40         (2) Articles which are in the nature of instruments,

63-41  crutches, canes, devices or other mechanical, electronic,

63-42  optical or physical equipment.

63-43         (3) Any alcoholic beverage, except where the

63-44  alcohol merely provides a solution in the ordinary

63-45  preparation of a medicine.

64-1         (4) Braces or supports, other than those prescribed

64-2  or applied by a licensed provider of health care, within his

64-3  scope of practice, for human use.

64-4      3.  Insulin furnished by a registered pharmacist to a

64-5  person for treatment of diabetes as directed by a physician

64-6  shall be deemed to be dispensed on a prescription within

64-7  the meaning of this section.

64-8      Sec. 3.  This act becomes effective on January 1, 2006.

64-9      Sec. 111.  The ballot page assemblies and the paper ballots to

64-10  be used in voting on the question must present the question in

64-11  substantially the following form:

64-12     Shall the Sales and Use Tax Act of 1955 be amended to

64-13  provide an exemption from the taxes imposed by this Act on

64-14  the gross receipts from the sale and the storage, use or other

64-15  consumption of ophthalmic or ocular devices or appliances

64-16  prescribed by a physician or optometrist?

64-17  Yes ¨          No ¨

64-18     Sec. 112.  The explanation of the question which must appear

64-19  on each paper ballot and sample ballot and in every publication and

64-20  posting of notice of the question must be in substantially the

64-21  following form:

 

64-22  (Explanation of Question)

64-23     The proposed amendment to the Sales and Use Tax Act of

64-24  1955 would exempt from the taxes imposed by this Act the

64-25  gross receipts from the sale and the storage, use or other

64-26  consumption of ophthalmic or ocular devices or appliances

64-27  prescribed by a physician or optometrist.

64-28     Sec. 113.  At the general election on November 2, 2004, a

64-29  proposal must be submitted to the registered voters of this state to

64-30  amend the Sales and Use Tax Act, which was enacted by the 47th

64-31  Session of the Legislature of the State of Nevada and approved by

64-32  the Governor in 1955, and subsequently approved by the people of

64-33  this state at the general election held on November 6, 1956.

64-34     Sec. 114.  At the time and in the manner provided by law, the

64-35  Secretary of State shall transmit the proposed act to the several

64-36  county clerks, and the county clerks shall cause it to be published

64-37  and posted as provided by law.

64-38     Sec. 115.  The proclamation and notice to the voters given by

64-39  the county clerks pursuant to law must be in substantially the

64-40  following form:

64-41     Notice is hereby given that at the general election on

64-42  November 2, 2004, a question will appear on the ballot for the

64-43  adoption or rejection by the registered voters of the State of the

64-44  following proposed act:

65-1  AN ACT to amend an Act entitled “An Act to provide

65-2  revenue for the State of Nevada; providing for sales and

65-3  use taxes; providing for the manner of collection; defining

65-4  certain terms; providing penalties for violation, and other

65-5  matters properly relating thereto.” approved March 29,

65-6  1955, as amended.

 

65-7  THE PEOPLE OF THE STATE OF NEVADA

65-8  DO ENACT AS FOLLOWS:

 

65-9      Section1. Section 61.5 of the above-entitled act, being

65-10  chapter 397, Statutes of Nevada 1955, at page 762, as added

65-11  by chapter 466, Statutes of Nevada 1985, at page 1441, is

65-12  hereby amended to read as follows:

65-13     Sec. 61.5.  There are exempted from the taxes

65-14  imposed by this chapter the gross receipts from the sale

65-15  [of aircraft and major components] and the storage, use

65-16  or other consumption in this state of:

65-17     1.  Aircraft, aircraft engines and component parts of

65-18  aircraft [, such as engines and other components made for

65-19  use only in aircraft, to an air carrier which:

65-20     1.  Holds a certificate to engage in air transportation

65-21  issued pursuant to 49 U.S.C. § 1371 and is not solely a

65-22  charter air carrier or a supplemental air carrier as

65-23  described in Title 49 of the United States Code; and

65-24     2.  Maintains its central office in Nevada and bases a

65-25  majority of its aircraft in Nevada.] or aircraft engines

65-26  which are manufactured exclusively for use in aircraft,

65-27  sold or purchased for lease to a commercial air carrier

65-28  for use in the transportation of persons or property in

65-29  intrastate, interstate or foreign commerce pursuant to a

65-30  certificate or license issued to the air carrier authorizing

65-31  such transportation; and

65-32     2.  Machinery, tools and other equipment and parts

65-33  which are used exclusively in the repair, remodeling or

65-34  maintenance of aircraft, aircraft engines or component

65-35  parts of aircraft or aircraft engines which meet the

65-36  requirements of subsection 1.

65-37     Sec. 2.  This act becomes effective on January 1, 2006.

65-38     Sec. 116.  The ballot page assemblies and the paper ballots to

65-39  be used in voting on the question must present the question in

65-40  substantially the following form:

65-41     Shall the Sales and Use Tax Act of 1955 be amended to

65-42  revise and clarify the criteria used to determine which aircraft

65-43  and parts of aircraft are exempt from the taxes imposed by

66-1  this Act, including removing the requirement that an air

66-2  carrier must be based in Nevada to be eligible for the

66-3  exemption, and providing an exemption for certain machinery

66-4  and equipment used on eligible aircraft and parts of aircraft?

66-5  Yes ¨          No ¨

66-6      Sec. 117.  The explanation of the question which must appear

66-7  on each paper ballot and sample ballot and in every publication and

66-8  posting of notice of the question must be in substantially the

66-9  following form:

 

66-10  (Explanation of Question)

66-11     The proposed amendment to the Sales and Use Tax Act of

66-12  1955 revises and clarifies the criteria used to determine which

66-13  aircraft and parts of aircraft are exempt from the taxes

66-14  imposed by this Act, including removing the requirement that

66-15  an air carrier must be based in Nevada to be eligible for the

66-16  exemption, and providing an exemption for certain machinery

66-17  and equipment used on eligible aircraft and parts of aircraft.

66-18     Sec. 118.  At the general election on November 2, 2004, a

66-19  proposal must be submitted to the registered voters of this state to

66-20  amend the Sales and Use Tax Act, which was enacted by the 47th

66-21  Session of the Legislature of the State of Nevada and approved by

66-22  the Governor in 1955, and subsequently approved by the people of

66-23  this state at the general election held on November 6, 1956.

66-24     Sec. 119.  At the time and in the manner provided by law, the

66-25  Secretary of State shall transmit the proposed act to the several

66-26  county clerks, and the county clerks shall cause it to be published

66-27  and posted as provided by law.

66-28     Sec. 120.  The proclamation and notice to the voters given by

66-29  the county clerks pursuant to law must be in substantially the

66-30  following form:

66-31     Notice is hereby given that at the general election on

66-32  November 2, 2004, a question will appear on the ballot for the

66-33  adoption or rejection by the registered voters of the State of the

66-34  following proposed act:

66-35  AN ACT to amend an Act entitled “An Act to provide

66-36  revenue for the State of Nevada; providing for sales and

66-37  use taxes; providing for the manner of collection; defining

66-38  certain terms; providing penalties for violation, and other

66-39  matters properly relating thereto.” approved March 29,

66-40  1955, as amended.

 

66-41  THE PEOPLE OF THE STATE OF NEVADA

66-42  DO ENACT AS FOLLOWS:

 

67-1      Section1. The above-entitled Act, being chapter 397,

67-2  Statutes of Nevada 1955, at page 762, is hereby amended by

67-3  adding thereto a new section to be designated as section 61.6,

67-4  immediately following section 61.5, to read as follows:

67-5      Sec. 61.6.  1.  There are exempted from the taxes

67-6  imposed by this chapter the gross receipts from the sale,

67-7  furnishing or service of, and the storage, use or other

67-8  consumption in this state of:

67-9      (a) All engines and chassis of a professional racing

67-10  vehicle;

67-11     (b) All parts and components that are used to replace

67-12  or rebuild existing parts or components of any engine or

67-13  chassis of a professional racing vehicle;

67-14     (c) All motor vehicles used by professional racing

67-15  teams to transport professional racing vehicles or to

67-16  transport parts or components of professional racing

67-17  vehicles, including, without limitation, an engine and

67-18  chassis of a professional racing vehicle; and

67-19     (d) All motor vehicles used by a professional racing

67-20  team or sanctioning body to transport the business office

67-21  of the professional racing team or sanctioning body or to

67-22  transport a facility from which hospitality services are

67-23  provided.

67-24     2.  As used in this section:

67-25     (a) “Professional racing team” means a racing

67-26  operation that qualifies for the taxable year as an activity

67-27  engaged in for profit pursuant to the Internal Revenue

67-28  Code, Title 26 of the United States Code.

67-29     (b) “Professional racing motor vehicle” means any

67-30  motor vehicle which is used in a professional racing

67-31  competition and which is owned, leased or operated by a

67-32  professional racing team.

67-33     (c) “Sanctioning body” means an organization that

67-34  establishes an annual schedule of professional racing

67-35  events in which professional racing teams participate,

67-36  grants rights to conduct such events and establishes and

67-37  administers rules and regulations governing the persons

67-38  who conduct or participate in such events.

67-39     Sec. 2.  This act becomes effective on January 1, 2006.

67-40     Sec. 121.  The ballot page assemblies and the paper ballots to

67-41  be used in voting on the question must present the question in

67-42  substantially the following form:

67-43     Shall the Sales and Use Tax Act of 1955 be amended to

67-44  provide an exemption from the taxes imposed by this Act on

67-45  the gross receipts from the sale and the storage, use or other

68-1  consumption of engines and chassis, including replacement

68-2  parts and components for the engines and chassis, of

68-3  professional racing vehicles that are owned, leased or

68-4  operated by professional racing teams?

68-5  Yes ¨          No ¨

68-6      Sec. 122.  The explanation of the question which must appear

68-7  on each paper ballot and sample ballot and in every publication and

68-8  posting of notice of the question must be in substantially the

68-9  following form:

 

68-10  (Explanation of Question)

68-11     The proposed amendment to the Sales and Use Tax Act of

68-12  1955 would exempt from the taxes imposed by this Act the

68-13  gross receipts from the sale and the storage, use or other

68-14  consumption of engines and chassis, including replacement

68-15  parts and components for the engines and chassis, of

68-16  professional racing vehicles that are owned, leased or

68-17  operated by professional racing teams.

68-18     Sec. 123.  At the general election on November 2, 2004, a

68-19  proposal must be submitted to the registered voters of this state to

68-20  amend the Sales and Use Tax Act, which was enacted by the 47th

68-21  Session of the Legislature of the State of Nevada and approved by

68-22  the Governor in 1955, and subsequently approved by the people of

68-23  this state at the general election held on November 6, 1956.

68-24     Sec. 124.  At the time and in the manner provided by law, the

68-25  Secretary of State shall transmit the proposed act to the several

68-26  county clerks, and the county clerks shall cause it to be published

68-27  and posted as provided by law.

68-28     Sec. 125.  The proclamation and notice to the voters given by

68-29  the county clerks pursuant to law must be in substantially the

68-30  following form:

68-31     Notice is hereby given that at the general election on

68-32  November 2, 2004, a question will appear on the ballot for the

68-33  adoption or rejection by the registered voters of the State of the

68-34  following proposed act:

68-35  AN ACT to amend an Act entitled “An Act to provide

68-36  revenue for the State of Nevada; providing for sales and

68-37  use taxes; providing for the manner of collection; defining

68-38  certain terms; providing penalties for violation, and other

68-39  matters properly relating thereto.” approved March 29,

68-40  1955, as amended.

 

68-41  THE PEOPLE OF THE STATE OF NEVADA

68-42  DO ENACT AS FOLLOWS:

 

69-1      Section1.  The above-entitled Act, being chapter 397,

69-2  Statutes of Nevada 1955, at page 762, is hereby amended by

69-3  adding thereto two new sections to be designated as sections

69-4  57.1 and 57.2, respectively, immediately following section

69-5  57, to read as follows:

69-6      Sec. 57.1. 1.  Except as otherwise provided in

69-7  section 57.2 of chapter 397, Statutes of Nevada 1955,

69-8  there are exempted from the taxes imposed by this

69-9  chapter the gross receipts from the sale of, and the

69-10  storage, use or other consumption of, works of fine art

69-11  for public display.

69-12     2.  In determining whether a payment made

69-13  pursuant to a lease of a work of fine art is exempt under

69-14  subsection 1, the value for the purpose of paragraph (a)

69-15  of subsection 4 is the value of the work and not the value

69-16  of possession for the term of the lease, and the calendar

69-17  or fiscal year described in paragraph (a) of subsection 4

69-18  is the first full calendar or fiscal year, respectively, after

69-19  the payment is made.

69-20     3.  During the first full fiscal year following the

69-21  purchase of fine art for which a taxpayer receives the

69-22  exemption provided in this section, the taxpayer shall

69-23  make available, upon written request and without charge

69-24  to any public school as defined in NRS 385.007, private

69-25  school as defined in NRS 394.103 and parent of a child

69-26  who receives instruction in a home pursuant to NRS

69-27  392.070, one copy of a poster depicting the fine art that

69-28  the facility has on public display and that the facility

69-29  makes available for purchase by the public at the time of

69-30  the request.

69-31     4.  As used in this section:

69-32     (a) “Fine art for public display”:

69-33         (1) Except as otherwise provided in subparagraph

69-34  (2), means a work of art which:

69-35            (I) Is an original painting in oil, mineral,

69-36  water colors, vitreous enamel, pastel or other medium,

69-37  an original mosaic, drawing or sketch, an original

69-38  sculpture of clay, textiles, fiber, wood, metal, plastic,

69-39  glass or a similar material, an original work of mixed

69-40  media or a lithograph;

69-41            (II) Is purchased in an arm’s length

69-42  transaction for $25,000 or more, or has an appraised

69-43  value of $25,000 or more;

69-44            (III) Will be on public display in a public or

69-45  private art gallery, museum or other building or area in

70-1  this state for at least 20 hours per week during at least 35

70-2  weeks of the first full calendar year after the date on

70-3  which it is purchased or, if the facility displaying the fine

70-4  art disposes of it before the end of that year, during at

70-5  least two-thirds of the full weeks during which the

70-6  facility had possession of it, or if the gallery, museum, or

70-7  other building or area in which the fine art will be

70-8  displayed will not be opened until after the beginning of

70-9  the first full calendar year after the date on which the

70-10  fine art is purchased, these display requirements must

70-11  instead be met for the first full fiscal year after the date

70-12  of opening, and the date of opening must not be later

70-13  than 2 years after the purchase of the fine art being

70-14  displayed; and

70-15            (IV) Will be on display in a facility that is

70-16  available for group tours by pupils or students for at

70-17  least 5 hours on at least 60 days of the first full fiscal

70-18  year after the purchase of the fine art, during which the

70-19  facility in which it is displayed is open, by prior

70-20  appointment and at reasonable times, without charge;

70-21  and

70-22         (2) Does not include:

70-23            (I) A work of fine art that is a fixture or an

70-24  improvement to real property;

70-25            (II) Materials purchased by an artist for

70-26  consumption in the production of a work of art that is to

70-27  be a fixture or an improvement to real property;

70-28            (III) A work of fine art that constitutes a copy

70-29  of an original work of fine art, unless the work is a

70-30  lithograph that is a limited edition and that is signed and

70-31  numbered by the artist;

70-32            (IV) Products of filmmaking or photography,

70-33  including, without limitation, motion pictures;

70-34            (V) Literary works;

70-35            (VI) Property used in the performing arts,

70-36  including, without limitation, scenery or props for a

70-37  stage; or

70-38            (VII) Property that was created for a

70-39  functional use other than, or in addition to, its aesthetic

70-40  qualities, including, without limitation, a classic or

70-41  custom-built automobile or boat, a sign that advertises a

70-42  business, and custom or antique furniture, lamps,

70-43  chandeliers, jewelry, mirrors, doors or windows.

70-44     (b) “Public display” means the display of a work of

70-45  fine art where members of the public have access to the

71-1  work of fine art for viewing during publicly advertised

71-2  hours. The term does not include the display of a work of

71-3  fine art in an area where the public does not generally

71-4  have access, including, without limitation, a private

71-5  office, hallway or meeting room of a business, a room of

71-6  a business used for private lodging and a private

71-7  residence.

71-8      (c) “Pupil” means a person who:

71-9         (1) Is enrolled for the current academic year in a

71-10  public school as defined in NRS 385.007 or a private

71-11  school as defined in NRS 394.103; or

71-12         (2) Receives instruction in a home and is excused

71-13  from compulsory attendance pursuant to NRS 392.070.

71-14     (d) “Student” means a person who is enrolled for the

71-15  current academic year in:

71-16         (1) A community college or university; or

71-17         (2) A licensed postsecondary educational

71-18  institution as defined in NRS 394.099 and a course

71-19  concerning fine art.

71-20     Sec. 57.2. 1.  A taxpayer may collect an admission

71-21  fee for the exhibition of fine art otherwise exempt from

71-22  taxation on its sale, storage, use or other consumption

71-23  pursuant to section 57.1 of chapter 397, Statutes of

71-24  Nevada 1955, if the taxpayer offers to residents of the

71-25  State of Nevada a discount of 50 percent from any

71-26  admission fee charged to nonresidents. The discounted

71-27  admission fee for residents must be offered at any time

71-28  the exhibition is open to the public and admission fees

71-29  are being charged.

71-30     2.  If a taxpayer collects a fee for the exhibition of

71-31  fine art otherwise exempt from taxation on its sale,

71-32  storage, use or other consumption pursuant to section

71-33  57.1 of chapter 397, Statutes of Nevada 1955, and the fee

71-34  is collected during the first full fiscal year after the

71-35  purchase of the fine art, the exemption pertaining to that

71-36  fine art must be reduced by the net revenue derived by

71-37  the taxpayer for that first full fiscal year. The exemption

71-38  pertaining to fine art must not be reduced below zero,

71-39  regardless of the amount of the net revenue derived by

71-40  the taxpayer for that first full fiscal year.

71-41     3.  Any tax due pursuant to this section must be paid

71-42  with the first sales and use tax return otherwise required

71-43  to be filed by the taxpayer following the 15th day of the

71-44  fourth month after the end of the first full fiscal year

71-45  following the purchase of the fine art or, if no sales and

72-1  use tax return is otherwise required to be filed by the

72-2  taxpayer, with a sales and use tax return filed

72-3  specifically for this purpose on or before the last day of

72-4  the fourth month after the end of the first full fiscal year

72-5  following the purchase of the fine art.

72-6      4.  A taxpayer who is required to pay a tax resulting

72-7  from the operation of this section may receive a credit

72-8  against the tax for any donations made by the taxpayer

72-9  to the State Arts Council, the Division of Museums and

72-10  History Dedicated Trust Fund established pursuant to

72-11  NRS 381.0031, a museum that provides exhibits

72-12  specifically related to nature or a museum that provides

72-13  exhibits specifically related to children, if the taxpayer:

72-14     (a) Made the donation before the date that either

72-15  return required pursuant to subsection 3 is due; and

72-16     (b) Provides the Department documentation of the

72-17  donation at the time that he files the return required

72-18  pursuant to subsection 3.

72-19     5.  For the purposes of this section:

72-20     (a) “Direct costs of owning and exhibiting the fine

72-21  art” does not include any allocation of the general and

72-22  administrative expense of a business or organization that

72-23  conducts activities in addition to the operation of the

72-24  facility in which the fine art is displayed, including,

72-25  without limitation, an allocation of the salary and

72-26  benefits of a senior executive who is responsible for the

72-27  oversight of the facility in which the fine art is displayed

72-28  and who has substantial responsibilities related to the

72-29  other activities of the business or organization.

72-30     (b) “Net revenue” means the amount of the fees

72-31  collected for exhibiting the fine art during the fiscal year

72-32  less the following paid or made during the fiscal year:

72-33         (1) The direct costs of owning and exhibiting the

72-34  fine art; and

72-35         (2) The cost of educational programs associated

72-36  with the taxpayer’s public display of fine art, including

72-37  the cost of meeting the requirements of sub-

72-38  subparagraph (IV) of subparagraph (1) of paragraph (a)

72-39  of subsection 4 of section 57.1 of chapter 397, Statutes of

72-40  Nevada 1955.

72-41     Sec. 2.  Section 6 of the above-entitled Act, being

72-42  chapter 397, Statutes of Nevada 1955, at page 763, is hereby

72-43  amended to read as follows:

72-44     Sec. 6.  1.  “Retail sale” or “sale at retail” means a

72-45  sale for any purpose other than resale in the regular course

73-1  of business of tangible personal property. The terms do

73-2  not include a sale of property that:

73-3      (a) Meets the requirements of subparagraphs (1) and

73-4  (2) of paragraph (a) of subsection 4 of section 57.1 of

73-5  chapter 397, Statutes of Nevada 1955;

73-6      (b) Is made available for sale within 2 years after it is

73-7  acquired; and

73-8      (c) Is made available for viewing by the public or

73-9  prospective purchasers, or both, within 2 years after it is

73-10  acquired, whether or not a fee is charged for viewing it

73-11  and whether or not it is also used for purposes other than

73-12  viewing.

73-13     2.  The delivery in this state of tangible personal

73-14  property by an owner or former owner thereof or by a

73-15  factor, or agent of such owner, former owner or factor, if

73-16  the delivery is to a consumer or person for redelivery to a

73-17  consumer, pursuant to a retail sale made by a retailer not

73-18  engaged in business in this state, is a retail sale in this state

73-19  by the person making the delivery. He shall include the

73-20  retail selling price of the property in his gross receipts.

73-21     Sec. 3.  Section 7 of the above-entitled Act, being

73-22  chapter 397, Statutes of Nevada 1955, at page 763, is hereby

73-23  amended to read as follows:

73-24     Sec. 7.  “Storage” includes any keeping or retention

73-25  in this state for any purpose except sale in the regular

73-26  course of business or subsequent use solely outside this

73-27  state of tangible personal property purchased from a

73-28  retailer. The term does not include keeping, retaining or

73-29  exercising any right or power over tangible property

73-30  that:

73-31     1.  Meets the requirements of subparagraphs (1) and

73-32  (2) of paragraph (a) of subsection 4 of section 57.1 of

73-33  chapter 397, Statutes of Nevada 1955;

73-34     2.  Is made available for sale within 2 years after it is

73-35  acquired; and

73-36     3.  Is made available for viewing by the public or

73-37  prospective purchasers, or both, within 2 years after it is

73-38  acquired whether or not a fee is charged for viewing it

73-39  and whether or not it is also used for purposes other than

73-40  viewing.

73-41     Sec. 4.  This act becomes effective on January 1, 2006.

 

 

74-1      Sec. 126.  The ballot page assemblies and the paper ballots to

74-2  be used in voting on the question must present the question in

74-3  substantially the following form:

74-4      Shall the Sales and Use Tax Act of 1955 be amended to

74-5  provide an exemption from the taxes imposed by this Act on

74-6  the gross receipts from the sale and the storage, use or other

74-7  consumption of works of fine art for public display?

74-8  Yes ¨          No ¨

74-9      Sec. 127.  The explanation of the question which must appear

74-10  on each paper ballot and sample ballot and in every publication and

74-11  posting of notice of the question must be in substantially the

74-12  following form:

 

74-13  (Explanation of Question)

74-14     The proposed amendment to the Sales and Use Tax Act of

74-15  1955 would exempt from the taxes imposed by this Act the

74-16  gross receipts from the sale and the storage, use or other

74-17  consumption of works of fine art for public display.

74-18     Sec. 128.  At the general election on November 2, 2004, a

74-19  proposal must be submitted to the registered voters of this state to

74-20  amend the Sales and Use Tax Act, which was enacted by the 47th

74-21  Session of the Legislature of the State of Nevada and approved by

74-22  the Governor in 1955, and subsequently approved by the people of

74-23  this state at the general election held on November 6, 1956.

74-24     Sec. 129.  At the time and in the manner provided by law, the

74-25  Secretary of State shall transmit the proposed act to the several

74-26  county clerks, and the county clerks shall cause it to be published

74-27  and posted as provided by law.

74-28     Sec. 130.  The proclamation and notice to the voters given by

74-29  the county clerks pursuant to law must be in substantially the

74-30  following form:

74-31     Notice is hereby given that at the general election on

74-32  November 2, 2004, a question will appear on the ballot for the

74-33  adoption or rejection by the registered voters of the State of the

74-34  following proposed act:

74-35  AN ACT to amend an Act entitled “An Act to provide

74-36  revenue for the State of Nevada; providing for sales and

74-37  use taxes; providing for the manner of collection; defining

74-38  certain terms; providing penalties for violation, and other

74-39  matters properly relating thereto.” approved March 29,

74-40  1955, as amended.

 

74-41  THE PEOPLE OF THE STATE OF NEVADA

74-42  DO ENACT AS FOLLOWS:

 

75-1      Section1.  The above-entitled Act, being chapter 397,

75-2  Statutes of Nevada 1955, at page 762, is hereby amended by

75-3  adding thereto three new sections to be designated as sections

75-4  18.2, 47.4 and 47.5, respectively, immediately following

75-5  sections 18.1 and 47, respectively, to read as follows:

75-6      Sec. 18.2. “Vehicle” has the meaning ascribed to it

75-7  in NRS 482.135.

75-8      Sec. 47.4. 1.  For the purposes of this section,

75-9  “authorized appraisal” means an appraisal of the value

75-10  of a motor vehicle made by:

75-11     (a) An employee of the Department of Motor

75-12  Vehicles on its behalf;

75-13     (b) A county assessor or his employee as an agent of

75-14  the Department of Motor Vehicles;

75-15     (c) A person licensed by the Department of Motor

75-16  Vehicles as a dealer; or

75-17     (d) An independent appraiser authorized by the

75-18  Department of Motor Vehicles.

75-19     2.  When computing the tax on the sale of a vehicle

75-20  by a seller who is not required to be registered by the

75-21  Department of Taxation, the Department of Motor

75-22  Vehicles or the county assessor as an agent of the

75-23  Department of Taxation shall, if an authorized appraisal

75-24  is submitted, use as the vehicle’s sales price the amount

75-25  stated on the authorized appraisal or $100, whichever is

75-26  greater.

75-27     3.  The Department of Motor Vehicles shall establish

75-28  by regulation the procedure for appraising vehicles and

75-29  shall establish and make available a form for an

75-30  authorized appraisal.

75-31     4.  The Department of Motor Vehicles shall retain a

75-32  copy of the appraisal considered pursuant to subsection

75-33  2 with its record of the collection of the tax.

75-34     5.  A fee which does not exceed $10 may be charged

75-35  and collected for each authorized appraisal made. Any

75-36  money so collected by the Department of Motor Vehicles

75-37  for such an appraisal made by its employees must be

75-38  deposited with the State Treasurer to the credit of the

75-39  Motor Vehicle Fund. Any money so collected by a county

75-40  assessor must be deposited with the county treasurer to

75-41  the credit of the county’s general fund.

75-42     6.  If an authorized appraisal is not submitted, the

75-43  Department of Motor Vehicles or the county assessor as

75-44  an agent of the Department of Taxation shall establish

75-45  the sales price as a value which is based on the

76-1  depreciated value of the vehicle as determined in

76-2  accordance with the schedule in section 47.5 of chapter

76-3  397, Statutes of Nevada 1955. To determine the original

76-4  price from which the depreciation is calculated, the

76-5  Department of Motor Vehicles shall use:

76-6      (a) The manufacturer’s suggested retail price in

76-7  Nevada, excluding options and extras, as of the time the

76-8  particular make and year model is first offered for sale

76-9  in Nevada;

76-10     (b) If the vehicle is specially constructed, the original

76-11  retail price to the original purchaser of the vehicle as

76-12  evidenced by such document or documents as the

76-13  Department may require;

76-14     (c) The procedures set forth in subsections 3 and 4 of

76-15  NRS 371.050; or

76-16     (d) If none of these applies, its own estimate from

76-17  any available information.

76-18     Sec. 47.5. 1.  Except as provided in subsection 2,

76-19  for the purpose of computing the tax on the sale of a

76-20  vehicle by a seller who is not required to be registered

76-21  with the Department of Taxation in the manner provided

76-22  for in subsection 6 of section 47.4 of chapter 397,

76-23  Statutes of Nevada 1955, a vehicle must be depreciated

76-24  according to the following schedule:

76-25                                              Percentage of

76-26  Age                                      Initial Value

76-27  New.................................. 100 percent

76-28  1 year................................. 85 percent

76-29  2 years................................ 75 percent

76-30  3 years................................ 65 percent

76-31  4 years................................ 60 percent

76-32  5 years................................ 55 percent

76-33  6 years................................ 50 percent

76-34  7 years................................ 45 percent

76-35  8 years................................ 40 percent

76-36  9 years................................ 35 percent

76-37  10 years............................. 30 percent

76-38  11 years............................. 25 percent

76-39  12 years............................. 20 percent

76-40  13 years............................. 15 percent

76-41  14 years or more............... 10 percent

 

76-42     2.  The amount of depreciation calculated under

76-43  subsection 1 must be rounded to the nearest whole

77-1  multiple of $20 and the depreciated value must not be

77-2  reduced below $100.

77-3      Sec. 2.  Section 11 of the above-entitled Act, being

77-4  chapter 397, Statutes of Nevada 1955, at page 764, is hereby

77-5  amended to read as follows:

77-6      Sec. 11.  1.  “Sales price” means the total amount

77-7  for which tangible property is sold, valued in money,

77-8  whether paid in money or otherwise, without any

77-9  deduction on account of any of the following:

77-10     (a) The cost of the property sold.

77-11     (b) The cost of materials used, labor or service cost,

77-12  interest charged, losses, or any other expenses.

77-13     (c) The cost of transportation of the property prior to

77-14  its purchase.

77-15     2.  The total amount for which property is sold

77-16  includes all of the following:

77-17     (a) Any services that are a part of the sale.

77-18     (b) Any amount for which credit is given to the

77-19  purchaser by the seller.

77-20     3.  “Sales price” does not include any of the

77-21  following:

77-22     (a) Cash discounts allowed and taken on sales.

77-23     (b) The amount charged for property returned by

77-24  customers when the entire amount charged therefor is

77-25  refunded either in cash or credit; but this exclusion shall

77-26  not apply in any instance when the customer, in order to

77-27  obtain the refund, is required to purchase other property at

77-28  a price greater than the amount charged for the property

77-29  that is returned.

77-30     (c) The amount charged for labor or services rendered

77-31  in installing or applying the property sold.

77-32     (d) The amount of any tax , [(]not including[,

77-33  however,] any manufacturers’ or importers’ excise tax , [)]

77-34  imposed by the United States upon or with respect to retail

77-35  sales, whether imposed upon the retailer or the consumer.

77-36     (e) The amount of any allowance against the selling

77-37  price given by a retailer for the value of a used vehicle

77-38  that is taken in trade on the purchase of another vehicle.

77-39     4.  For the purpose of a sale of a vehicle by a seller

77-40  who is not required to be registered with the Department

77-41  of Taxation, the sales price is the value established in the

77-42  manner set forth in section 47.4 of chapter 397, Statutes

77-43  of Nevada 1955.

78-1      Sec. 3.  Section 12 of the above-entitled Act, being

78-2  chapter 397, Statutes of Nevada 1955, at page 764, is hereby

78-3  amended to read as follows:

78-4      Sec. 12.  1.  “Gross receipts” means the total

78-5  amount of the sale or lease or rental price, as the case may

78-6  be, of the retail sales of retailers, valued in money,

78-7  whether received in money or otherwise, without any

78-8  deduction on account of any of the following:

78-9      (a) The cost of the property sold. However, in

78-10  accordance with such rules and regulations as the Tax

78-11  Commission may prescribe, a deduction may be taken if

78-12  the retailer has purchased property for some other purpose

78-13  than resale, has reimbursed his vendor for tax which the

78-14  vendor is required to pay to the State or has paid the use

78-15  tax with respect to the property, and has resold the

78-16  property [prior to] before making any use of the property

78-17  other than retention, demonstration or display while

78-18  holding it for sale in the regular course of business. If such

78-19  a deduction is taken by the retailer, no refund or credit will

78-20  be allowed to his vendor with respect to the sale of the

78-21  property.

78-22     (b) The cost of the materials used, labor or service

78-23  cost, interest paid, losses or any other expense.

78-24     (c) The cost of transportation of the property [prior to]

78-25  before its sale to the purchaser.

78-26     2.  The total amount of the sale or lease or rental price

78-27  includes all of the following:

78-28     (a) Any services that are a part of the sale.

78-29     (b) All receipts, cash, credits and property of any kind.

78-30     (c) Any amount for which credit is allowed by the

78-31  seller to the purchaser.

78-32     3.  “Gross receipts” does not include any of the

78-33  following:

78-34     (a) Cash discounts allowed and taken on sales.

78-35     (b) [Sale] The sale price of property returned by

78-36  customers when the full sale price is refunded either in

78-37  cash or credit , [;] but this exclusion [shall] does not apply

78-38  in any instance when the customer, in order to obtain the

78-39  refund, is required to purchase other property at a price

78-40  greater than the amount charged for the property that is

78-41  returned.

78-42     (c) The price received for labor or services used in

78-43  installing or applying the property sold.

78-44     (d) The amount of any tax , [(]not including[,

78-45  however,] any manufacturers’ or importers’ excise tax , [)]

79-1  imposed by the United States upon or with respect to retail

79-2  sales, whether imposed upon the retailer or the consumer.

79-3      (e) The amount of any allowance against the selling

79-4  price given by a retailer for the value of a used vehicle

79-5  which is taken in trade on the purchase of another

79-6  vehicle.

79-7      4.  For purposes of the sales tax, if the retailers

79-8  establish to the satisfaction of the Tax Commission that

79-9  the sales tax has been added to the total amount of the sale

79-10  price and has not been absorbed by them, the total amount

79-11  of the sale price shall be deemed to be the amount

79-12  received exclusive of the tax imposed.

79-13     Sec. 4.  Section 15 of the above-entitled Act, being

79-14  chapter 397, Statutes of Nevada 1955, at page 765, is hereby

79-15  amended to read as follows:

79-16     Sec. 15.  1.  “Retailer” includes:

79-17     (a) Every seller who makes any retail sale or sales of

79-18  tangible personal property, and every person engaged in

79-19  the business of making retail sales at auction of tangible

79-20  personal property owned by the person or others.

79-21     (b) Every person engaged in the business of making

79-22  sales for storage, use or other consumption or in the

79-23  business of making sales at auction of tangible personal

79-24  property owned by the person or others for storage, use or

79-25  other consumption.

79-26     (c) Every person making any retail sale of a vehicle

79-27  or more than two retail sales of other tangible personal

79-28  property during any 12‑month period, including sales

79-29  made in the capacity of assignee for the benefit of

79-30  creditors, or receiver or trustee in bankruptcy.

79-31     2.  When the Tax Commission determines that it is

79-32  necessary for the efficient administration of this chapter to

79-33  regard any salesmen, representatives, peddlers or

79-34  canvassers as the agents of the dealers, distributors,

79-35  supervisors or employers under whom they operate or

79-36  from whom they obtain the tangible personal property sold

79-37  by them, irrespective of whether they are making sales on

79-38  their own behalf or on behalf of such dealers, distributors,

79-39  supervisors or employers, the Tax Commission may so

79-40  regard them and may regard the dealers, distributors,

79-41  supervisors or employers as retailers for purposes of this

79-42  chapter.

79-43     3.  A licensed optometrist or physician and surgeon is

79-44  a consumer of, and shall not be considered, a retailer

79-45  within the provisions of this chapter, with respect to the

80-1  ophthalmic materials used or furnished by him in the

80-2  performance of his professional services in the diagnosis,

80-3  treatment or correction of conditions of the human eye,

80-4  including the adaptation of lenses or frames for the aid

80-5  thereof.

80-6      Sec. 5.  Section 18.1 of the above-entitled Act, being

80-7  chapter 397, Statutes of Nevada 1955, at page 766, is hereby

80-8  amended to read as follows:

80-9      Sec. 18.1  NRS 372.035 is hereby amended to read as

80-10  follows:

80-11     372.035  1.  “Occasional sale” includes:

80-12     (a) A sale of property not held or used by a seller in

80-13  the course of an activity for which he is required to hold a

80-14  seller’s permit, [provided such] if the sale is not one of a

80-15  series of sales sufficient in number, scope and character to

80-16  constitute an activity requiring the holding of a seller’s

80-17  permit.

80-18     (b) Any transfer of all or substantially all the property

80-19  held or used by a person in the course of such an activity

80-20  when after [such] the transfer the real or ultimate

80-21  ownership of [such] the property is substantially similar to

80-22  that which existed before [such] the transfer.

80-23     2.  The term does not include the sale of a vehicle

80-24  other than the sale or transfer of a used vehicle to the

80-25  seller’s spouse, child, grandchild, parent, grandparent,

80-26  brother or sister. For the purposes of this section, the

80-27  relation of parent and child includes adoptive and

80-28  illegitimate children and stepchildren.

80-29     3.  For the purposes of this section, stockholders,

80-30  bondholders, partners or other persons holding an interest

80-31  in a corporation or other entity are regarded as having the

80-32  “real or ultimate ownership” of the property of such

80-33  corporation or other entity.

80-34     Sec. 6.  This act becomes effective on January 1, 2006.

80-35     Sec. 131.  The ballot page assemblies and the paper ballots to

80-36  be used in voting on the question must present the question in

80-37  substantially the following form:

80-38     Shall the Sales and Use Tax Act of 1955 be amended to provide

80-39  an exemption from the taxes imposed by this Act on the gross

80-40  receipts from the sale and the storage, use or other consumption of

80-41  the value of any used vehicle taken in trade on the purchase of

80-42  another vehicle and to remove the exemption from those taxes for

80-43  occasional sales of vehicles except where such sales are between

80-44  certain family members?

80-45  Yes ¨          No ¨

81-1      Sec. 132.  The explanation of the question which must appear

81-2  on each paper ballot and sample ballot and in every publication and

81-3  posting of notice of the question must be in substantially the

81-4  following form:

 

81-5  (Explanation of Question)

81-6      The proposed amendment to the Sales and Use Tax Act of

81-7  1955 would exempt from the taxes by this Act the gross

81-8  receipts from the sale and the storage, use or other

81-9  consumption of the value of any used vehicle taken in trade

81-10  on the purchase of another vehicle and remove the exemption

81-11  from those taxes for occasional sales of vehicles except where

81-12  such sales are between certain family members.

81-13     Sec. 133.  If a majority of the votes cast on the question

81-14  submitted to the voters pursuant to section 105, 110, 115, 120, 125

81-15  or 130 of this act is yes, the respective amendment to the Sales and

81-16  Use Tax Act of 1955 becomes effective on January 1, 2006. If less

81-17  than a majority of votes cast on a question is yes, the question fails

81-18  and that amendment to the Sales and Use Tax Act of 1955 does not

81-19  become effective.

81-20     Sec. 134.  All general election laws not inconsistent with this

81-21  act are applicable.

81-22     Sec. 135.  Any informalities, omissions or defects in the

81-23  content or making of the publications, proclamations or notices

81-24  provided for in this act and by the general election laws under which

81-25  this election is held must be so construed as not to invalidate the

81-26  adoption of any proposed act by a majority of the registered voters

81-27  voting on the question if it can be ascertained with reasonable

81-28  certainty from the official returns transmitted to the office of the

81-29  Secretary of State whether the proposed amendment was adopted by

81-30  a majority of those registered voters.

81-31     Sec. 136.  1.  Except as otherwise provided in this section, the

81-32  Department of Taxation shall waive the amount of any sales and use

81-33  taxes, and any penalties and interest thereon, otherwise due in this

81-34  state from a seller at the time the seller registers pursuant to section

81-35  9 of this act if the seller:

81-36     (a) During the year 2005:

81-37         (1) Did not hold a seller’s permit issued pursuant to chapter

81-38  372 or 374 of NRS; and

81-39         (2) Was not registered as a retailer pursuant to chapter 372 or

81-40  374 of NRS;

81-41     (b) Registers pursuant to section 9 of this act no later than

81-42  December 31, 2006; and

82-1      (c) Remains registered pursuant to section 9 of this act for at

82-2  least 36 months and collects and remits to this state all sales and use

82-3  taxes due in this state for that period.

82-4  Each statutory period of limitation applicable to any procedure or

82-5  proceeding for the collection or enforcement of any sales or use tax

82-6  due from a seller at the time the seller registers as provided in

82-7  paragraph (b) is tolled for 36 months from the commencement of

82-8  that registration.

82-9      2.  The Department of Taxation shall not, pursuant to this

82-10  section, waive any liability of a seller:

82-11     (a) Regarding any matter for which the seller received notice of

82-12  the commencement of an audit which, including any related

82-13  administrative and judicial procedures, has not been finally resolved

82-14  before the registration of the seller pursuant to section 9 of this act.

82-15     (b) For any sales and use taxes collected by the seller or paid or

82-16  remitted to the State before the registration of the seller pursuant to

82-17  section 9 of this act.

82-18     (c) For any fraud or material misrepresentation of a material fact

82-19  committed by the seller.

82-20     (d) For any sales or use taxes due from the seller in his capacity

82-21  as a buyer and not as a seller.

82-22     3.  For the purposes of this section, the words and terms defined

82-23  in NRS 360B.040 to 360B.100, inclusive, as amended by this act,

82-24  have the meanings ascribed to them in those sections.

82-25     Sec. 137.  The amendatory provisions of sections 83, 84, 85, 87

82-26  to 92, inclusive, and 94 to 101, inclusive, of this act do not apply to

82-27  any ordinance enacted before January 1, 2006.

82-28     Sec. 138.  1.  NRS 374.107, 374.112 and 374.113 are hereby

82-29  repealed.

82-30     2.  NRS 374.286 is hereby repealed.

82-31     3.  NRS 374.291 and 374.2911 are hereby repealed.

82-32     4.  NRS 374.322 is hereby repealed.

82-33     5.  NRS 374.323 is hereby repealed.

82-34     Sec. 139.  1.  This section and section 102 of this act become

82-35  effective upon passage and approval.

82-36     2.  Sections 103 to 135, inclusive, of this act become effective

82-37  on July 1, 2003.

82-38     3.  Sections 1 to 29, inclusive, 32 to 38, inclusive, 40 to 50,

82-39  inclusive, 52 to 57, inclusive, 66, 67, 69 to 72, inclusive, 74 to 80,

82-40  inclusive, 83, 84, 85, 87 to 92, inclusive, 94 to 101, inclusive, 136

82-41  and 137 of this act become effective:

82-42     (a) Upon passage and approval for the purposes of adopting

82-43  regulations and performing any other preparatory administrative

82-44  tasks that are necessary to carry out the provisions of this act; and

82-45     (b) On January 1, 2006, for all other purposes.

83-1      4.  Section 39 of this act becomes effective on January 1, 2006,

83-2  only if the proposal submitted pursuant to sections 128 to 132,

83-3  inclusive, of this act is approved by the voters at the general election

83-4  on November 2, 2004.

83-5      5.  Sections 58, 59, 60, 63, 64, 68, 82, 86 and 93 and subsection

83-6  1 of section 138 of this act become effective on January 1, 2006,

83-7  only if the proposal submitted pursuant to sections 128 to 132,

83-8  inclusive, of this act is not approved by the voters at the general

83-9  election on November 2, 2004.

83-10     6.  Section 30 of this act becomes effective on January 1, 2006,

83-11  only if the proposal submitted pursuant to sections 123 to 127,

83-12  inclusive, of this act is approved by the voters at the general election

83-13  on November 2, 2004.

83-14     7.  Sections 31, 61 and 65 and subsection 3 of section 138 of

83-15  this act become effective on January 1, 2006, only if the proposal

83-16  submitted pursuant to sections 123 to 127, inclusive, of this act is

83-17  not approved by the voters at the general election on November 2,

83-18  2004.

83-19     8.  Sections 62 and 73 of this act become effective on

83-20  January 1, 2006, only if the proposal submitted pursuant to sections

83-21  108 to 112, inclusive, of this act is not approved by the voters at the

83-22  general election on November 2, 2004.

83-23     9.  Sections 51 and 81 and subsection 2 of section 138 of this

83-24  act becomes effective on January 1, 2006, only if the proposal

83-25  submitted pursuant to sections 103 to 107, inclusive, of this act is

83-26  not approved by the voters at the general election on November 2,

83-27  2004.

83-28     10.  Subsection 4 of section 138 of this act becomes effective

83-29  on January 1, 2006, only if the proposal submitted pursuant to

83-30  sections 113 to 117, inclusive, of this act is not approved by the

83-31  voters at the general election on November 2, 2004.

83-32     11.  Subsection 5 of section 138 of this act becomes effective

83-33  on January 1, 2006, only if the proposal submitted pursuant to

83-34  sections 118 to 122, inclusive, of this act is not approved by the

83-35  voters at the general election on November 2, 2004.

 

83-36  LEADLINES OF REPEALED SECTIONS

 

83-37     374.107  “Vehicle” defined.

83-38     374.112  Procedure for computing tax on sale of vehicle by

83-39   seller who is not required to be registered.

83-40     374.113  Schedule of depreciation for tax on sale of vehicle.

84-1      374.286  Farm machinery and equipment.

84-2      374.291  Works of fine art for public display: General

84-3   requirements.

84-4      374.2911  Works of fine art for public display: Collection of

84-5   admission fee for exhibition.

84-6      374.322  Aircraft, aircraft engines and component parts of

84-7   aircraft.

84-8      374.323  Engines, chassis, parts and components of

84-9   professional racing vehicles; certain vehicles used by

84-10   professional racing team or sanctioning body.

 

84-11  H