SB 440 — Creates a sales tax holiday for certain members of the Nevada National Guard and certain relatives of such members. (BDR 32-1111)

EXEMPTSenate (ReprintedBill withNo. amendments adopted on May 25, 2021) FIRST REPRINT S.B.

440440–Committee Son ENATEFinance BCHAPTER.......... ILLN O.

440–COMMITTEE ON FINANCE (O N BEHALF OF THE OFFICE OF THE GOVERNOR ) M AY 10, 2021 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Creates a sales tax holiday for certain members of the Nevada National Guard and certain relatives of such members.

(BDR 32-1111) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law provides an exemption from certain sales and use taxes for members of the Nevada National Guard called into active service and for certain 374.7285)relatives The Department of Taxationsuch ismembers required to issue a letter of exemption to a person who the DepartmentNevada determinesNational isGuard. eligible for such an exemption from taxation.

(NRS 372.7281, a person who the Department determines is eligible for such an exemption fromon to taxation.

Sections 2 and 4 of this bill provide that a letter of exemption issued to such members or their relatives expires 30 days after the member returns to the United States.StatSections 1 and 3 also provide an exemption from sales and use taxes on purchases of tangible personal property by members of the Nevada National Guard who are on active status and who are residents of this State and certain relatives of such members of the Nevada National Guard if the purchase occurs on the date on which Nevada Day is observed or the immediately following Saturday or Sunday.

Sections 12 and 34 alsorequire provide an exemptionapplication fromfor salesa andletter useof taxesexemption onfor purchasessuch ofan tangibleexemption personalto propertybe byfiled membersnot oflater thethan Nevada30 Nationaldays Guardbefore whothe aredate on activewhich statusNevada andDay whoprovided arethat residentsany of this State and certain relatives of such membersdeadline ofmay thenot Nevadabe Nationalearlier Guardthan if45 thedays purchasebefore occurs on the date on - *SB440_R1* – 2 – which Nevada Day is observedobserved. or the immediately following Saturday or Sunday.

Sections 2 and 4 require an application for a letter of exemption for such an is observed or such other deadline as the Department may establish by regulation, provided that any such deadline may not be earlier than 45 days before Nevada Day is observed.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

372.7281 In administering the provisions of NRS 372.325, the Department shall apply the exemption for the sale of tangible - 81st Session (2021) – 2 – personal property to the State of Nevada, its unincorporated agencies and instrumentalities to include all tangible personal property that is sold to:

A member of the Nevada National Guard who [is engaged in full-timeand] Nationalhas Guardbeen duty,called into active [service.] duty for a period of more than 30 days, as defined in 10 U.S.C.

§ 101(d)(5), and] has been called into active [service.] duty for a period of more than 30 days, as defined in 10 U.S.C.

§ 101(d)(4), and who is a resident of this State, if the sale occurs on the date on which Nevada Day is observed pursuant to NRS 236.015 or the Saturday or Sunday Day is immediately following that day.

- *SB440_R1* – 3 – 5.

The application must be on- a81st formSession and(2021) contain– such3 information– as is required by the Department.

A person who wishes to claim an exemption pursuant to subsection 4 or 5 of NRS 372.7281 must file the application not later than 30 days before the date on which Nevada Day is observed pursuant to NRS 236.015, unless a different deadline is specified by the Department by regulation, provided that any deadline established by the Department must not be earlier than 45 days before the date on which Nevada Day is observed.

A letter of exemption issued to a relative of a deceased member of the Nevada National Guard described in subsection 3 of NRS 372.7281 expires on the date 3 years after the date of the death of the member.

A letter of exemption issued to a member of the Nevada National Guard described in subsection 4 of NRS 372.7281 or a relative of a member described in subsection 5 of NRS 372.7281 expires on December 31 of the year it is issued but may be renewed.

- *SB440_R1* – 4 – Sec.

374.7285 In administering the provisions of NRS 374.330, the Department shall apply the exemption for the sale of tangibletangiblehe personal property to the State of Nevada, its unincorporated agencies and instrumentalities to include all tangible personal property that is sold to:

- 81st Session (2021) – 4 – 2.

and (b) Is related by blood, adoption or marriage within the first degree of consanguinity or affinity to the member.member.ithin the first 3.

3.

and (b) Is related by blood, adoption or marriage within the first degree of consanguinity to the member,  if the sale occurs on the date on which Nevada Day is observed pursuant to NRS 236.015 or the Saturday or Sunday immediately following that day:

A person who wishes to claim an exemption pursuant to NRS 374.7285 must file an application with the - *SB440_R1* – 5 – Department to obtain a letter of exemption.

A person who wishes to claim an exemption pursuant to subsection 4 or 5 of NRS 374.7285 must file the application not later than 30 days before the date on which Nevada Day is observed pursuant to NRS 236.015, unless a different deadline is specified by the Department by regulation, provided that any deadline established by the Department must not be earlier than 45 days before the date on which Nevada Day is observed.

2.- 81st Session (2021) – 5 – exemption provided pursuant to NRS 374.7285, the Departmente for the shall issue a letter of exemption to the person.

If the Department determines that a person is eligible for the exemption provided pursuant to NRS 374.7285, the Department shall issue a letter of exemption to the person.

A letter of exemption issued to a member of the Nevada National Guard described in subsection 4 of NRS 374.7285 or a relative of a member described in subsection 5 of NRS 374.7285 expires on December 31 of the year it is issued but may be renewed.

To claim an exemption pursuant to NRS 374.7285, for the salesal(a) The person must provide a copy of tangiblethe personalletter propertyof exemption to suchthe aretailer person:from whom the person purchases the property;

(a) The person must provide a copy of the letter of exemption to the retailer from whom the person purchases the property;

In accordance with Section 6 of Article 10 of the Nevada Constitution, the Legislature hereby finds that the exemption provided by this act from any excise tax on the sale, storage,retail:, use or consumption of tangible personal property sold at retail:1.