exempt

                                                  (Reprinted with amendments adopted on May 28, 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; 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; 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:

1-7  1.  The sale of a vehicle to a nonresident to whom a special

1-8  movement permit has been issued by the Department of Motor

1-9  Vehicles pursuant to subsection 1 of NRS 482.3955; [and]

1-10      2.  The sale of farm machinery and equipment, as defined in

1-11  NRS 374.286, to a nonresident who submits proof to the vendor that

2-1  the farm machinery and equipment will be delivered out of state not

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

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

2-4  the vendor that the vessel will be delivered out of state not later

2-5  than 15 days after the sale.

2-6  Sec. 2.  Chapter 374 of NRS is hereby amended by adding

2-7  thereto the provisions set forth as sections 3 and 4 of this act.

2-8  Sec. 3.  1.  Except as otherwise provided in subsection 2,

2-9  “vessel” means every description of watercraft used or capable of

2-10  being used as a means of transportation on water.

2-11      2.  The term does not include a canoe, float tube, kayak,

2-12  rubber raft or seaplane.

2-13      Sec. 4.  (Deleted by amendment.)

2-14      Sec. 5.  NRS 374.020 is hereby amended to read as follows:

2-15      374.020  [Except where] As used in this chapter, unless the

2-16  context otherwise requires, the [definitions given] words and terms

2-17  defined in NRS 374.025 to 374.107, inclusive, [govern the

2-18  construction of this chapter.] and section 3 of this act have the

2-19  meanings ascribed to them in those sections.

2-20      Sec. 6.  (Deleted by amendment.)

2-21      Sec. 7.  NRS 374.070 is hereby amended to read as follows:

2-22      374.070  1.  “Sales price” means the total amount for which

2-23  tangible property is sold, valued in money, whether paid in money

2-24  or otherwise, without any deduction on account of any of the

2-25  following:

2-26      (a) The cost of the property sold.

2-27      (b) The cost of the materials used, labor or service cost, interest

2-28  charged, losses, or any other expenses.

2-29      (c) The cost of transportation of the property before its purchase.

2-30      2.  The total amount for which property is sold includes all of

2-31  the following:

2-32      (a) Any services that are a part of the sale.

2-33      (b) Any amount for which credit is given to the purchaser by the

2-34  seller.

2-35      3.  “Sales price” does not include any of the following:

2-36      (a) Cash discounts allowed and taken on sales.

2-37      (b) The amount charged for property returned by customers

2-38  when the entire amount charged therefor is refunded [either] in cash

2-39  or credit[; but] , except that this exclusion does not apply in any

2-40  instance when the customer, in order to obtain the refund, is

2-41  required to purchase other property at a price greater than the

2-42  amount charged for the property that is returned.

2-43      (c) The amount charged for labor or services rendered in

2-44  installing or applying the property sold.

3-1  (d) The amount of any tax , [(]not including[, however,] any

3-2  manufacturers’ or importers’ excise tax , [)] imposed by the United

3-3  States upon or with respect to retail sales, whether imposed upon the

3-4  retailer or the consumer.

3-5  (e) The amount of any tax imposed by the State of Nevada upon

3-6  or with respect to the storage, use or other consumption of tangible

3-7  personal property purchased from any retailer.

3-8  (f) The amount of any allowance against the selling price given

3-9  by a retailer for the value of a used vehicle or vessel which is taken

3-10  in trade on the purchase of another vehicle[.] or vessel.

3-11      4.  For the purpose of a sale of a vehicle by a seller who is not

3-12  required to be registered with the Department of Taxation, the sales

3-13  price is the value established in the manner set forth in

3-14  NRS 374.112.

3-15      Sec. 8.  NRS 374.7273 is hereby amended to read as follows:

3-16      374.7273  In administering the provisions of NRS 374.340, the

3-17  Department shall apply the exemption for the sale of tangible

3-18  personal property delivered by the vendor to a forwarding agent for

3-19  shipment out of state to include:

3-20      1.  The sale of a vehicle to a nonresident to whom a special

3-21  movement permit has been issued by the Department of Motor

3-22  Vehicles pursuant to subsection 1 of NRS 482.3955; [and]

3-23      2.  The sale of farm machinery and equipment, as defined in

3-24  NRS 374.286, to a nonresident who submits proof to the vendor that

3-25  the farm machinery and equipment will be delivered out of state not

3-26  later than 15 days after the sale [.] ; and

3-27      3.  The sale of a vessel to a nonresident who submits proof to

3-28  the vendor that the vessel will be delivered out of state not later

3-29  than 15 days after the sale.

3-30      Sec. 9.  NRS 488.065 is hereby amended to read as follows:

3-31      488.065  1.  Every motorboat on the waters of this state must

3-32  be numbered and titled, except as otherwise provided in subsection

3-33  4 and NRS 488.175.

3-34      2.  Upon receipt of an original application for a certificate of

3-35  ownership or for transfer of a certificate of ownership on an

3-36  undocumented motorboat, the Division of Wildlife of the State

3-37  Department of Conservation and Natural Resources may assign an

3-38  appropriate builder’s hull number to the motorboat whenever there

3-39  is no builder’s number thereon, or when the builder’s number has

3-40  been destroyed or obliterated. The builder’s number must be

3-41  permanently marked on an integral part of the hull which is

3-42  accessible for inspection.

3-43      3.  A person shall not operate or give permission for the

3-44  operation of any motorboat on the waters of this state unless:

4-1  (a) The motorboat is numbered in accordance with the

4-2  provisions of this chapter[, with applicable federal law] or with the

4-3  federally approved numbering system of another state;

4-4  (b) The certificate of number awarded to the motorboat is in

4-5  effect;

4-6  (c) The identifying number set forth in the certificate of number

4-7  is displayed on each side of the bow of the motorboat; and

4-8  (d) A valid certificate of ownership has been issued to the owner

4-9  of any motorboat required to be numbered under this chapter.

4-10      4.  Any person who purchases or otherwise owns a motorboat

4-11  before January 1, 1972, is not required to obtain title for the

4-12  motorboat until he transfers any portion of his ownership in the

4-13  motorboat to another person.

4-14      Sec. 10.  NRS 488.085 is hereby amended to read as follows:

4-15      488.085  The owner of any motorboat already covered by a

4-16  number in [full force and] effect which has been awarded to it

4-17  pursuant to [then operative federal law or] a federally approved

4-18  numbering system of another state [shall] must record the number

4-19  [prior to] before operating the motorboat on the waters of this state

4-20  in excess of the 90‑day reciprocity period provided for in NRS

4-21  488.175. [Such recordation shall] The recordation must be in the

4-22  manner and pursuant to the procedure required for the award of a

4-23  number under NRS 488.075, but no additional or substitute number

4-24  [shall] may be issued.

4-25      Sec. 11.  NRS 488.175 is hereby amended to read as follows:

4-26      488.175  1.  Except as otherwise provided in subsection 2, a

4-27  motorboat need not be numbered pursuant to the provisions of this

4-28  chapter if it is:

4-29      (a) Already covered by a number in effect which has been

4-30  awarded or issued to it pursuant to [federal law or] a federally

4-31  approved numbering system of another state if the boat has not been

4-32  on the waters of this state for a period in excess of 90 consecutive

4-33  days.

4-34      (b) A motorboat from a country other than the United States

4-35  temporarily using the waters of this state.

4-36      (c) A public vessel of the United States, a state or a political

4-37  subdivision of a state.

4-38      (d) A ship’s lifeboat.

4-39      (e) A motorboat belonging to a class of boats which has been

4-40  exempted from numbering by the Division of Wildlife of the State

4-41  Department of Conservation and Natural Resources after the

4-42  Division has found:

4-43          (1) That the numbering of motorboats of that class will not

4-44  materially aid in their identification; and

5-1       (2) If an agency of the Federal Government has a numbering

5-2  system applicable to the class of motorboats to which the motorboat

5-3  in question belongs, that the motorboat would also be exempt from

5-4  numbering if it were subject to the federal law.

5-5  2.  The Division of Wildlife may, by regulation, provide for the

5-6  issuance of exempt numbers for motorboats not required to be

5-7  registered under the provisions of this chapter.

5-8  3.  A motorboat need not be titled pursuant to the provisions of

5-9  this chapter, if it is [already covered] :

5-10      (a) Covered by a certificate of ownership which has been

5-11  awarded or issued to it pursuant to the title system of another state

5-12  [.] ; or

5-13      (b) Documented pursuant to Chapter 121 of Title 46 of the

5-14  United States Code.

5-15      Sec. 12.  NRS 488.1797 is hereby amended to read as follows:

5-16      488.1797  1.  Before the issuance of any certificate of

5-17  ownership, the Division of Wildlife of the State Department of

5-18  Conservation and Natural Resources shall obtain a statement in

5-19  writing signed by the transferee or transferor, showing:

5-20      (a) The date of the sale or other transfer of ownership of the

5-21  motorboat.

5-22      (b) The name and address of the seller or transferor.

5-23      (c) The name and address of the buyer or transferee.

5-24      2.  Upon receipt of [the] :

5-25      (a) The properly endorsed certificate of ownership [, the] ;

5-26      (b) The certificate of number and the required fee [and] ;

5-27      (c) The statement of information [,]; and

5-28      (d) Proof that the applicable taxes have been paid,

5-29  the Division of Wildlife shall issue a new certificate of ownership

5-30  and a new certificate of number to the transferee. The previous

5-31  number may be reassigned to the transferee.

5-32      Sec. 13.  1.  This section and sections 9, 10 and 11 of this act

5-33  become effective on January 1, 2004.

5-34      2.  Sections 1 to 8, inclusive, and 12 of this act become

5-35  effective on January 1, 2005.

 

5-36  H