REQUIRES TWO-THIRDS MAJORITY VOTE (§ 4)          exempt

                                                 (Reprinted with amendments adopted on April 18, 2003)

 

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; 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

1-5  personal property delivered by the vendor to a forwarding agent for

1-6  shipment out of state to include:

2-1  1.  The sale of a vehicle to a nonresident to whom a special

2-2  movement permit has been issued by the Department of Motor

2-3  Vehicles pursuant to subsection 1 of NRS 482.3955; [and]

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

2-5  NRS 374.286, to a nonresident who submits proof to the vendor that

2-6  the farm machinery and equipment will be delivered out of state not

2-7  later than 15 days after the sale [.] ; and

2-8  3.  The sale of a vessel to a nonresident who submits proof to

2-9  the vendor that the vessel will be delivered out of state not later

2-10  than 15 days after the sale.

2-11      Sec. 2.  Chapter 374 of NRS is hereby amended by adding

2-12  thereto the provisions set forth as sections 3 and 4 of this act.

2-13      Sec. 3.  “Vessel” has the meaning ascribed to it in

2-14  NRS 488.035.

2-15      Sec. 4.  1.  In computing the tax on the sale of a vessel by a

2-16  seller who is not required to be registered with the Department of

2-17  Taxation, the Division:

2-18      (a) May require the submission of a copy of the bill of sale.

2-19      (b) Shall use as the sales price of the vessel the greater of:

2-20          (1) The amount stated on the authorized appraisal;

2-21          (2) The cost of the vessel as evidenced by the copy of the bill

2-22  of sale; or

2-23          (3) One hundred dollars.

2-24      2.  The Division shall prepare and make available a form for

2-25  an authorized appraisal.

2-26      3.  The Division shall retain a copy of each appraisal and bill

2-27  of sale submitted pursuant to subsection 1 with its record of the

2-28  collection of the tax.

2-29      4.  A fee of not more than $10 may be charged and collected

2-30  for each authorized appraisal made.

2-31      5.  The Board of Wildlife Commissioners may adopt

2-32  regulations as necessary to carry out the provisions of this section.

2-33      6.  As used in this section:

2-34      (a) “Authorized appraisal” means an appraisal of the value of

2-35  a vessel that:

2-36          (1) Is determined by an employee of the Division based on

2-37  the lowest value of comparable vessels as estimated in the most

2-38  recent edition of the National Automobile Dealers Association

2-39  Consumer Marine Appraisal Guide; or

2-40          (2) If the value of the vessel is not set forth in the National

2-41  Automobile Dealers Association Consumer Marine Appraisal

2-42  Guide, is made by a dealer or manufacturer who has been issued a

2-43  dealer’s certificate of number by the Division.

2-44      (b) “Division” means the Division of Wildlife of the State

2-45  Department of Conservation and Natural Resources.

3-1  Sec. 5.  NRS 374.020 is hereby amended to read as follows:

3-2  374.020  [Except where] As used in this chapter, unless the

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

3-4  defined in NRS 374.025 to 374.107, inclusive, [govern the

3-5  construction of this chapter.] and section 3 of this act have the

3-6  meanings ascribed to them in those sections.

3-7  Sec. 6.  NRS 374.040 is hereby amended to read as follows:

3-8  374.040  1.  “Occasional sale,” except as otherwise provided

3-9  in subsection 2, includes:

3-10      (a) A sale of property not held or used by a seller in the course

3-11  of an activity for which he is required to hold a seller’s permit,

3-12  provided [such] the sale is not one of a series of sales sufficient in

3-13  number, scope and character to constitute an activity requiring the

3-14  holding of a seller’s permit.

3-15      (b) Any transfer of all or substantially all the property held or

3-16  used by a person in the course of such an activity when after [such]

3-17  the transfer the real or ultimate ownership of [such] the property is

3-18  substantially similar to that which existed before [such] the transfer.

3-19      2.  The term does not include the sale of a vehicle or vessel

3-20  other than the sale or transfer of a used vehicle or vessel to the

3-21  seller’s spouse, child, grandchild, parent, grandparent, brother or

3-22  sister. For the purposes of this section, the relation of parent and

3-23  child includes adoptive and illegitimate children and stepchildren.

3-24      3.  For the purposes of this section, stockholders, bondholders,

3-25  partners or other persons holding an interest in a corporation or

3-26  other entity are regarded as having the “real or ultimate ownership”

3-27  of the property of [such] the corporation or other entity.

3-28      Sec. 7.  NRS 374.070 is hereby amended to read as follows:

3-29      374.070  1.  “Sales price” means the total amount for which

3-30  tangible property is sold, valued in money, whether paid in money

3-31  or otherwise, without any deduction on account of any of the

3-32  following:

3-33      (a) The cost of the property sold.

3-34      (b) The cost of the materials used, labor or service cost, interest

3-35  charged, losses, or any other expenses.

3-36      (c) The cost of transportation of the property before its purchase.

3-37      2.  The total amount for which property is sold includes all of

3-38  the following:

3-39      (a) Any services that are a part of the sale.

3-40      (b) Any amount for which credit is given to the purchaser by the

3-41  seller.

3-42      3.  “Sales price” does not include any of the following:

3-43      (a) Cash discounts allowed and taken on sales.

3-44      (b) The amount charged for property returned by customers

3-45  when the entire amount charged therefor is refunded [either] in cash

4-1  or credit[; but] , except that this exclusion does not apply in any

4-2  instance when the customer, in order to obtain the refund, is

4-3  required to purchase other property at a price greater than the

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

4-5  (c) The amount charged for labor or services rendered in

4-6  installing or applying the property sold.

4-7  (d) The amount of any tax , [(]not including[, however,] any

4-8  manufacturers’ or importers’ excise tax , [)] imposed by the United

4-9  States upon or with respect to retail sales, whether imposed upon the

4-10  retailer or the consumer.

4-11      (e) The amount of any tax imposed by the State of Nevada upon

4-12  or with respect to the storage, use or other consumption of tangible

4-13  personal property purchased from any retailer.

4-14      (f) The amount of any allowance against the selling price given

4-15  by a retailer for the value of a used vehicle or vessel which is taken

4-16  in trade on the purchase of another vehicle[.] or vessel.

4-17      4.  For the purpose of a sale of a vehicle or vessel by a seller

4-18  who is not required to be registered with the Department of

4-19  Taxation, the sales price is the value established in the manner set

4-20  forth in NRS 374.112[.] or section 4 of this act.

4-21      Sec. 8.  NRS 374.7273 is hereby amended to read as follows:

4-22      374.7273  In administering the provisions of NRS 374.340, the

4-23  Department shall apply the exemption for the sale of tangible

4-24  personal property delivered by the vendor to a forwarding agent for

4-25  shipment out of state to include:

4-26      1.  The sale of a vehicle to a nonresident to whom a special

4-27  movement permit has been issued by the Department of Motor

4-28  Vehicles pursuant to subsection 1 of NRS 482.3955; [and]

4-29      2.  The sale of farm machinery and equipment, as defined in

4-30  NRS 374.286, to a nonresident who submits proof to the vendor that

4-31  the farm machinery and equipment will be delivered out of state not

4-32  later than 15 days after the sale [.] ; and

4-33      3.  The sale of a vessel to a nonresident who submits proof to

4-34  the vendor that the vessel will be delivered out of state not later

4-35  than 15 days after the sale.

4-36      Sec. 9.  NRS 488.065 is hereby amended to read as follows:

4-37      488.065  1.  Every motorboat on the waters of this state must

4-38  be numbered and titled, except as otherwise provided in subsection

4-39  4 and NRS 488.175.

4-40      2.  Upon receipt of an original application for a certificate of

4-41  ownership or for transfer of a certificate of ownership on an

4-42  undocumented motorboat, the Division of Wildlife of the State

4-43  Department of Conservation and Natural Resources may assign an

4-44  appropriate builder’s hull number to the motorboat whenever there

4-45  is no builder’s number thereon, or when the builder’s number has

5-1  been destroyed or obliterated. The builder’s number must be

5-2  permanently marked on an integral part of the hull which is

5-3  accessible for inspection.

5-4  3.  A person shall not operate or give permission for the

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

5-6  (a) The motorboat is numbered in accordance with the

5-7  provisions of this chapter[, with applicable federal law] or with the

5-8  federally approved numbering system of another state;

5-9  (b) The certificate of number awarded to the motorboat is in

5-10  effect;

5-11      (c) The identifying number set forth in the certificate of number

5-12  is displayed on each side of the bow of the motorboat; and

5-13      (d) A valid certificate of ownership has been issued to the owner

5-14  of any motorboat required to be numbered under this chapter.

5-15      4.  Any person who purchases or otherwise owns a motorboat

5-16  before January 1, 1972, is not required to obtain title for the

5-17  motorboat until he transfers any portion of his ownership in the

5-18  motorboat to another person.

5-19      Sec. 10.  NRS 488.085 is hereby amended to read as follows:

5-20      488.085  The owner of any motorboat already covered by a

5-21  number in [full force and] effect which has been awarded to it

5-22  pursuant to [then operative federal law or] a federally approved

5-23  numbering system of another state [shall] must record the number

5-24  [prior to] before operating the motorboat on the waters of this state

5-25  in excess of the 90‑day reciprocity period provided for in NRS

5-26  488.175. [Such recordation shall] The recordation must be in the

5-27  manner and pursuant to the procedure required for the award of a

5-28  number under NRS 488.075, but no additional or substitute number

5-29  [shall] may be issued.

5-30      Sec. 11.  NRS 488.175 is hereby amended to read as follows:

5-31      488.175  1.  Except as otherwise provided in subsection 2, a

5-32  motorboat need not be numbered pursuant to the provisions of this

5-33  chapter if it is:

5-34      (a) Already covered by a number in effect which has been

5-35  awarded or issued to it pursuant to [federal law or] a federally

5-36  approved numbering system of another state if the boat has not been

5-37  on the waters of this state for a period in excess of 90 consecutive

5-38  days.

5-39      (b) A motorboat from a country other than the United States

5-40  temporarily using the waters of this state.

5-41      (c) A public vessel of the United States, a state or a political

5-42  subdivision of a state.

5-43      (d) A ship’s lifeboat.

5-44      (e) A motorboat belonging to a class of boats which has been

5-45  exempted from numbering by the Division of Wildlife of the State

6-1  Department of Conservation and Natural Resources after the

6-2  Division has found:

6-3       (1) That the numbering of motorboats of that class will not

6-4  materially aid in their identification; and

6-5       (2) If an agency of the Federal Government has a numbering

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

6-7  in question belongs, that the motorboat would also be exempt from

6-8  numbering if it were subject to the federal law.

6-9  2.  The Division of Wildlife may, by regulation, provide for the

6-10  issuance of exempt numbers for motorboats not required to be

6-11  registered under the provisions of this chapter.

6-12      3.  A motorboat need not be titled pursuant to the provisions of

6-13  this chapter, if it is [already covered] :

6-14      (a) Covered by a certificate of ownership which has been

6-15  awarded or issued to it pursuant to the title system of another state

6-16  [.] ; or

6-17      (b) Documented pursuant to Chapter 121 of Title 46 of the

6-18  United States Code.

6-19      Sec. 12.  NRS 488.1797 is hereby amended to read as follows:

6-20      488.1797  1.  Before the issuance of any certificate of

6-21  ownership, the Division of Wildlife of the State Department of

6-22  Conservation and Natural Resources shall obtain a statement in

6-23  writing signed by the transferee or transferor, showing:

6-24      (a) The date of the sale or other transfer of ownership of the

6-25  motorboat.

6-26      (b) The name and address of the seller or transferor.

6-27      (c) The name and address of the buyer or transferee.

6-28      2.  If the seller is not a retailer registered with the Department

6-29  of Taxation, the Division of Wildlife shall collect the taxes

6-30  imposed by or pursuant to title 32 of NRS upon the sale or use of

6-31  the motorboat. The Division of Wildlife may retain 10 percent

6-32  of the amount collected to cover its administrative costs of

6-33  collecting the taxes and shall remit the remaining amount

6-34  collected to the Department of Taxation.

6-35      3.  Upon receipt of the properly endorsed certificate of

6-36  ownership, the certificate of number and the required fee [and] , the

6-37  statement of information, and the taxes payable, if any, the

6-38  Division of Wildlife shall issue a new certificate of ownership and a

6-39  new certificate of number to the transferee. The previous number

6-40  may be reassigned to the transferee.

6-41      Sec. 13.  1.  This section and section 2 of this act become

6-42  effective upon passage and approval.

6-43      2.  Section 4 of this act becomes effective upon passage and

6-44  approval for the purpose of adopting regulations and on January 1,

6-45  2005, for all other purposes.

7-1  3.  Sections 9, 10 and 11 of this act become effective on

7-2  January 1, 2004.

7-3  4.  Sections 1, 3, 5 to 8, inclusive, and 12 of this act become

7-4  effective on January 1, 2005.

 

7-5  H