requires two-thirds majority vote (§§ 4, 9)                                                                                                            

                                                                                                  

 

Senate Bill No. 464–Committee on Taxation

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Revises provisions relating to vessels. (BDR 32‑1240)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           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 vessels; revising the provisions governing the administration of the exemption from certain taxes on the sale of tangible personal property to be shipped outside this state to include the sale of a vessel to a nonresident under certain circumstances; providing for the computation of certain taxes on certain sales of used vessels; excluding the value of a vessel taken in trade from the sales price of a vessel for the purposes of certain taxes; requiring the Department of Motor Vehicles to issue a special permit for the movement of a vessel under certain circumstances; exempting a motorboat that has been documented pursuant to federal law from the requirement of obtaining a title pursuant to the provisions governing watercraft; requiring the Division of Wildlife of the State Department of Conservation and Natural Resources to collect certain taxes upon the sale or use of motorboats under certain circumstances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 372.7263 is hereby amended to read as

1-2  follows:

1-3  372.7263  In administering the provisions of NRS 372.335, the

1-4  Department shall apply the exemption for the sale of tangible

2-1  personal property delivered by the vendor to a forwarding agent for

2-2  shipment out of state to include:

2-3  1.  The sale of a vehicle or vessel to a nonresident to whom a

2-4  special movement permit has been issued by the Department of

2-5  Motor Vehicles pursuant to subsection 1 of NRS 482.3955; and

2-6  2.  The sale of farm machinery and equipment, as defined in

2-7  NRS 374.286, to a nonresident who submits proof to the vendor that

2-8  the farm machinery and equipment will be delivered out of state not

2-9  later than 15 days after the sale.

2-10      Sec. 2.  Chapter 374 of NRS is hereby amended by adding

2-11  thereto the provisions set forth as sections 3 and 4 of this act.

2-12      Sec. 3.  “Vessel” has the meaning ascribed to it in

2-13  NRS 488.035.

2-14      Sec. 4.  1.  In computing the tax on the sale of a vessel by a

2-15  seller who is not required to be registered with the Department of

2-16  Taxation, the Division shall, if an authorized appraisal is

2-17  submitted:

2-18      (a) Require the submission of a copy of the bill of sale that is:

2-19          (1) Notarized; or

2-20          (2) Witnessed by an employee of the Division.

2-21      (b) Use as the sales price of the vessel the greater of:

2-22          (1) The amount stated on the authorized appraisal;

2-23          (2) The cost of the vessel as evidenced by the copy of the bill

2-24  of sale; or

2-25          (3) One hundred dollars.

2-26      2.  The Division shall prepare and make available a form for

2-27  an authorized appraisal.

2-28      3.  The Division shall retain a copy of each appraisal and bill

2-29  of sale submitted pursuant to subsection 1 with its record of the

2-30  collection of the tax.

2-31      4.  A fee of not more than $10 may be charged and collected

2-32  for each authorized appraisal made.

2-33      5.  The Board of Wildlife Commissioners shall adopt

2-34  regulations establishing an appropriate schedule of depreciation

2-35  for vessels.

2-36      6.  If an authorized appraisal is not submitted, the Division

2-37  shall establish the sales price of the vessel as its depreciated value

2-38  as determined in accordance with the schedule of depreciation

2-39  adopted pursuant to subsection 5. To determine the original price

2-40  from which depreciation is calculated, the Division shall use:

2-41      (a) The manufacturer’s suggested retail price in this state,

2-42  excluding options and extras, as of the time the particular model

2-43  of vessel is first offered for sale in this state;

3-1  (b) If the vessel is specially constructed, the original retail

3-2  price to the original purchaser of the vessel as evidenced by such

3-3  document or documents as the Division may require; or

3-4  (c) If the provisions of paragraph (a) or (b) do not apply, its

3-5  own estimate from any available information.

3-6  7.  As used in this section:

3-7  (a) “Authorized appraisal” means an appraisal of the value of

3-8  a vessel that:

3-9       (1) Is determined by an employee of the Division based on

3-10  the lowest value of comparable vessels as estimated in the most

3-11  recent edition of the National Automobile Dealers Association

3-12  Consumer Marine Appraisal Guide; or

3-13          (2) If the value of the vessel is not set forth in the National

3-14  Automobile Dealers Association Consumer Marine Appraisal

3-15  Guide, is made by a dealer or manufacturer who has been issued a

3-16  dealer’s certificate of number by the Division.

3-17      (b) “Division” means the Division of Wildlife of the State

3-18  Department of Conservation and Natural Resources.

3-19      Sec. 5.  NRS 374.020 is hereby amended to read as follows:

3-20      374.020  [Except where] As used in this chapter, unless the

3-21  context otherwise requires, the [definitions given] words and terms

3-22  defined in NRS 374.025 to 374.107, inclusive, [govern the

3-23  construction of this chapter.] and section 3 of this act have the

3-24  meanings ascribed to them in those sections.

3-25      Sec. 6.  NRS 374.040 is hereby amended to read as follows:

3-26      374.040  1.  “Occasional sale,” except as otherwise provided

3-27  in subsection 2, includes:

3-28      (a) A sale of property not held or used by a seller in the course

3-29  of an activity for which he is required to hold a seller’s permit,

3-30  provided [such] the sale is not one of a series of sales sufficient in

3-31  number, scope and character to constitute an activity requiring the

3-32  holding of a seller’s permit.

3-33      (b) Any transfer of all or substantially all the property held or

3-34  used by a person in the course of such an activity when after [such]

3-35  the transfer the real or ultimate ownership of [such] the property is

3-36  substantially similar to that which existed before [such] the transfer.

3-37      2.  The term does not include the sale of a vehicle or vessel

3-38  other than the sale or transfer of a used vehicle or vessel to the

3-39  seller’s spouse, child, grandchild, parent, grandparent, brother or

3-40  sister. For the purposes of this section, the relation of parent and

3-41  child includes adoptive and illegitimate children and stepchildren.

3-42      3.  For the purposes of this section, stockholders, bondholders,

3-43  partners or other persons holding an interest in a corporation or

3-44  other entity are regarded as having the “real or ultimate ownership”

3-45  of the property of [such] the corporation or other entity.

4-1  Sec. 7.  NRS 374.070 is hereby amended to read as follows:

4-2  374.070  1.  “Sales price” means the total amount for which

4-3  tangible property is sold, valued in money, whether paid in money

4-4  or otherwise, without any deduction on account of any of the

4-5  following:

4-6  (a) The cost of the property sold.

4-7  (b) The cost of the materials used, labor or service cost, interest

4-8  charged, losses, or any other expenses.

4-9  (c) The cost of transportation of the property before its purchase.

4-10      2.  The total amount for which property is sold includes all of

4-11  the following:

4-12      (a) Any services that are a part of the sale.

4-13      (b) Any amount for which credit is given to the purchaser by the

4-14  seller.

4-15      3.  “Sales price” does not include any of the following:

4-16      (a) Cash discounts allowed and taken on sales.

4-17      (b) The amount charged for property returned by customers

4-18  when the entire amount charged therefor is refunded [either] in cash

4-19  or credit[; but] , except that this exclusion does not apply in any

4-20  instance when the customer, in order to obtain the refund, is

4-21  required to purchase other property at a price greater than the

4-22  amount charged for the property that is returned.

4-23      (c) The amount charged for labor or services rendered in

4-24  installing or applying the property sold.

4-25      (d) The amount of any tax , [(]not including[, however,] any

4-26  manufacturers’ or importers’ excise tax , [)] imposed by the United

4-27  States upon or with respect to retail sales, whether imposed upon the

4-28  retailer or the consumer.

4-29      (e) The amount of any tax imposed by the State of Nevada upon

4-30  or with respect to the storage, use or other consumption of tangible

4-31  personal property purchased from any retailer.

4-32      (f) The amount of any allowance against the selling price given

4-33  by a retailer for the value of a used vehicle or vessel which is taken

4-34  in trade on the purchase of another vehicle[.] or vessel.

4-35      4.  For the purpose of a sale of a vehicle or vessel by a seller

4-36  who is not required to be registered with the Department of

4-37  Taxation, the sales price is the value established in the manner set

4-38  forth in NRS 374.112[.] or section 4 of this act.

4-39      Sec. 8.  NRS 374.7273 is hereby amended to read as follows:

4-40      374.7273  In administering the provisions of NRS 374.340, the

4-41  Department shall apply the exemption for the sale of tangible

4-42  personal property delivered by the vendor to a forwarding agent for

4-43  shipment out of state to include:

5-1  1.  The sale of a vehicle or vessel to a nonresident to whom a

5-2  special movement permit has been issued by the Department of

5-3  Motor Vehicles pursuant to subsection 1 of NRS 482.3955; and

5-4  2.  The sale of farm machinery and equipment, as defined in

5-5  NRS 374.286, to a nonresident who submits proof to the vendor that

5-6  the farm machinery and equipment will be delivered out of state not

5-7  later than 15 days after the sale.

5-8  Sec. 9.  NRS 482.3955 is hereby amended to read as follows:

5-9  482.3955  1.  The Department shall issue to any dealer,

5-10  distributor, rebuilder or other person, upon request, and upon

5-11  payment of a fee of $8.25, a special permit, in a form to be

5-12  determined by the Department, for the movement of any vehicle or

5-13  vessel to sell outside the State of Nevada, or for the movement

5-14  outside the State of any vehicle or vessel purchased by a

5-15  nonresident. The permit must be affixed to the vehicle or vessel to

5-16  be so moved in a manner and position to be determined by the

5-17  Department, and expires 15 days after its issuance.

5-18      2.  The Department may issue a permit to a resident of this state

5-19  who desires to move an unregistered vehicle within the State upon

5-20  the payment of a fee of $8.25. The permit is valid for 24 hours.

5-21      3.  The Department shall, upon the request of a charitable

5-22  organization which intends to sell a vehicle which has been donated

5-23  to the organization, issue to the organization a permit for the

5-24  operation of the vehicle until the vehicle is sold by the organization.

5-25  The Department shall not charge a fee for the issuance of the permit.

5-26      4.  As used in this section, “vessel” has the meaning ascribed

5-27  to it in NRS 488.035.

5-28      Sec. 10.  NRS 488.065 is hereby amended to read as follows:

5-29      488.065  1.  Every motorboat on the waters of this state must

5-30  be numbered and titled, except as otherwise provided in subsection

5-31  4 and NRS 488.175.

5-32      2.  Upon receipt of an original application for a certificate of

5-33  ownership or for transfer of a certificate of ownership on an

5-34  undocumented motorboat, the Division of Wildlife of the State

5-35  Department of Conservation and Natural Resources may assign an

5-36  appropriate builder’s hull number to the motorboat whenever there

5-37  is no builder’s number thereon, or when the builder’s number has

5-38  been destroyed or obliterated. The builder’s number must be

5-39  permanently marked on an integral part of the hull which is

5-40  accessible for inspection.

5-41      3.  A person shall not operate or give permission for the

5-42  operation of any motorboat on the waters of this state unless:

5-43      (a) The motorboat is numbered in accordance with the

5-44  provisions of this chapter[, with applicable federal law] or with the

5-45  federally approved numbering system of another state;

6-1  (b) The certificate of number awarded to the motorboat is in

6-2  effect;

6-3  (c) The identifying number set forth in the certificate of number

6-4  is displayed on each side of the bow of the motorboat; and

6-5  (d) A valid certificate of ownership has been issued to the owner

6-6  of any motorboat required to be numbered under this chapter.

6-7  4.  Any person who purchases or otherwise owns a motorboat

6-8  before January 1, 1972, is not required to obtain title for the

6-9  motorboat until he transfers any portion of his ownership in the

6-10  motorboat to another person.

6-11      Sec. 11.  NRS 488.085 is hereby amended to read as follows:

6-12      488.085  The owner of any motorboat already covered by a

6-13  number in [full force and] effect which has been awarded to it

6-14  pursuant to [then operative federal law or] a federally approved

6-15  numbering system of another state [shall] must record the number

6-16  [prior to] before operating the motorboat on the waters of this state

6-17  in excess of the 90‑day reciprocity period provided for in NRS

6-18  488.175. [Such recordation shall] The recordation must be in the

6-19  manner and pursuant to the procedure required for the award of a

6-20  number under NRS 488.075, but no additional or substitute number

6-21  [shall] may be issued.

6-22      Sec. 12.  NRS 488.175 is hereby amended to read as follows:

6-23      488.175  1.  Except as otherwise provided in subsection 2, a

6-24  motorboat need not be numbered pursuant to the provisions of this

6-25  chapter if it is:

6-26      (a) Already covered by a number in effect which has been

6-27  awarded or issued to it pursuant to [federal law or] a federally

6-28  approved numbering system of another state if the boat has not been

6-29  on the waters of this state for a period in excess of 90 consecutive

6-30  days.

6-31      (b) A motorboat from a country other than the United States

6-32  temporarily using the waters of this state.

6-33      (c) A public vessel of the United States, a state or a political

6-34  subdivision of a state.

6-35      (d) A ship’s lifeboat.

6-36      (e) A motorboat belonging to a class of boats which has been

6-37  exempted from numbering by the Division of Wildlife of the State

6-38  Department of Conservation and Natural Resources after the

6-39  Division has found:

6-40          (1) That the numbering of motorboats of that class will not

6-41  materially aid in their identification; and

6-42          (2) If an agency of the Federal Government has a numbering

6-43  system applicable to the class of motorboats to which the motorboat

6-44  in question belongs, that the motorboat would also be exempt from

6-45  numbering if it were subject to the federal law.

7-1  2.  The Division of Wildlife may, by regulation, provide for the

7-2  issuance of exempt numbers for motorboats not required to be

7-3  registered under the provisions of this chapter.

7-4  3.  A motorboat need not be titled pursuant to the provisions of

7-5  this chapter, if it is [already covered] :

7-6  (a) Covered by a certificate of ownership which has been

7-7  awarded or issued to it pursuant to the title system of another state

7-8  [.] ; or

7-9  (b) Documented pursuant to Chapter 121 of Title 46 of the

7-10  United States Code.

7-11      Sec. 13.  NRS 488.1797 is hereby amended to read as follows:

7-12      488.1797  1.  Before the issuance of any certificate of

7-13  ownership, the Division of Wildlife of the State Department of

7-14  Conservation and Natural Resources shall obtain a statement in

7-15  writing signed by the transferee or transferor, showing:

7-16      (a) The date of the sale or other transfer of ownership of the

7-17  motorboat.

7-18      (b) The name and address of the seller or transferor.

7-19      (c) The name and address of the buyer or transferee.

7-20      2.  If the seller is not a retailer registered with the Department

7-21  of Taxation, the Division of Wildlife shall collect the taxes

7-22  imposed by or pursuant to title 32 of NRS upon the sale or use of

7-23  the motorboat. The Division of Wildlife may retain 6 percent of the

7-24  amount collected to cover its administrative costs of collecting

7-25  the taxes and shall remit the remaining amount collected to the

7-26  Department of Taxation.

7-27      3.  Upon receipt of the properly endorsed certificate of

7-28  ownership, the certificate of number and the required fee [and] , the

7-29  statement of information, and the taxes payable, if any, the

7-30  Division of Wildlife shall issue a new certificate of ownership and a

7-31  new certificate of number to the transferee. The previous number

7-32  may be reassigned to the transferee.

7-33      Sec. 14.  1.  This section and sections 2, 10, 11 and 12 of this

7-34  act become effective upon passage and approval.

7-35      2.  Section 4 of this act becomes effective upon passage and

7-36  approval for the purpose of adopting regulations and on July 1,

7-37  2004, for all other purposes.

7-38      3.  Sections 1, 3, 5 to 9, inclusive, and 13 of this act become

7-39  effective on January 1, 2004.

 

7-40  H