SB 29 — Revises provisions related to refunds of overpayments of taxes. (BDR 32-216)

S.B.Senate Bill No.

2929–Committee SENATEon BILLRevenue NOand .Economic Development CHAPTER..........

29–COMMITTEE ON REVENUE AND ECONOMIC DEVELOPMENT (ON B EHALF OF THE D EPARTMENT OF TAXATION ) PREFILED N OVEMBER 16, 2022 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises provisions related to refunds of overpayments of taxes.

(BDR 32-216) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

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

Existing law provides that a taxpayer is entitled to receive interest on any refund owed to the taxpayer on an overpayment of taxes.

(NRS 360.2935) SectionSectiony 1 of this bill prohibits interest on a refund of any tax which was over-collected by the taxpayer and which the taxpayer is required to refund to the person from whom the tax was initially collected.

Sections 2 and 3 of this bill make conforminghomconforming changes to reflect that interest is not allowed on any refund of such a tax.

Section 4 of this bill provides that the provisions of this bill apply to any refund of an overpayment of such a tax issued by the Department of Taxation on or after July 1, 2023, regardless of the period for which the tax was paid or the date on which a claim for a refund was submitted to the Department.

EXPLANATION – Matter in bolded italics is new;

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

Except as otherwise provided in this title, a taxpayer is entitled to receive on any overpayment of taxes, after the - *SB29* – 2 – offset required by NRS 360.320 has been made, a refund together with interest at a rate determined pursuant to NRS 17.130.

Except as otherwise provided in this section, NRS 360.320 or any other specific statute, and notwithstanding the provisions of subsection 1 of NRS 360.2935, interest must be paid upon an overpayment of any tax provided for in chapter 362, 363A, 363B, 363C, 363D, 369, 370, 372, 372B, 374, 377, 377A, 377C or 377D of NRS, any of the taxes provided for in NRS 372A.290, any fee provided for in NRS 444A.090, 482.313, 482C.230 or 482C.240, or any assessment provided for in NRS 585.497, at the - 82nd Session (2023) – 2 – rate of 0.25 percent per month from the last day of the calendar month following the period for which the overpayment was made.

(a) In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if the person has not already filed a claim, is notified by the Department that a claim may be filed or the date upon which the claim is certified to the State Board of Examiners, whichever is earlier.ear(b) In the case of a credit, to the same date as that to which interest is computed on the tax or the amount against which the credit is applied.

(b) In the case of a credit, to the same date as that to which interest is computed on the tax or the amount against which the credit is applied.

The amendatory provisions of this act apply to any refund of an overpayment of taxes issued by the Department of -Taxation *SB29*on –or 3after –July 1, 2023, regardless of the period for which the tax was paid or the date on which a claim for a refund wasrwas which submitted to the Department.

H~~~~~ 23 - *SB29*82nd Session (2023)