SB 428 — Proposes to exempt sales of diapers from sales and use taxes and analogous taxes upon approval by the voters. (BDR 32-1033)

S.B.Senate Bill No.

428428–Senators SENATEFlores, BNeal; ILL N O.

428–SBuck, ENATORSDonate, FLORESDondero ,Loop, ND. EAL;

DHarris, ONATEOhrenschall, ,Pazina, DScheible ONDEROand LSpearman OOP,Joint D.Sponsors:

HARRIS,Assemblymen OHRENSCHALLD’Silva, ,Torres, PAZINAGonzález; AND S CHEIBLE M ARCH 27, 2023 ____________ JOINT S PONSORS :

ASSEMBLYMENAnderson, D’SBrown-May, ILVA,Dickman, TORRESGurr, ,C.H. GONZÁLEZ ;

AMiller, NDERSONOrentlicher, ,Peters, ROWNTaylor -MAYand ,Yurek DICKMANCHAPTER.......... , GURR , C.H.

ILLER, O RENTLICHER , ETERS , AYLOR AND Y UREK ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Proposes to exempt sales of diapers from sales and use taxes and analogous taxes upon approval by the voters.

(BDR 32-1033) FISCAL NOTE:

EfEffect on the State:

Yes.

May have Fiscal Impact.

~ EXPLANATION – Matter in bolded italics is new;

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

LegislativeLegThe Counsel’snonadministrative Digest:provisions of the Sales and Use Tax Act of 1955 (part of chapter 372 of NRS) were approved by the voters by a referendum and therefore cannot be amended, annulled, repealed, set aside, suspended or in any way made inoperative except by the direct vote of the people.

The(Nev. nonadministrative provisions of the Sales and Use Tax Act of 1955 (part of chapter 372 of NRS) were approved by the voters by a referendum and therefore cannot be amended, annulled, repealed, set aside, suspended or in any way made inoSections 2-9 of this bill require the submission of a question to the voters at the 2024 General Election of whether the Sales and Use Tax Act of 1955 should be amended to provide an exemption for diapers.

SectionConst. 10 of this bill construes the term “diaper” for the purposes of the exemption to include all types of child and adult diapers.

SectionsArt. 11 and 12 of this bill amend the Local School Support Tax - *SB428* – 2 – Law to provide an identical exemption.

This19, tax§ exemption1) becomesSections effective2-9 of Januarythis 1,bill 2025,require andthe expiressubmission byof limitationa onquestion Decemberto 31,the 2050,voters onlyat if the votersGeneral Election inof 2024.mentwhether to the Sales and Use Tax Act of 1955 atshould thebe Generalterm Any“diaper” amendmentfor to the Localpurposes Schoolof Supportthe Taxexemption Law, including exemptions, also applies to otherinclude salesall andtypes useof taxeschild imposedande underadult existingdiapers. law.

(NRSSections 354.705,11 374A.020, 376A.060, 377.040, 377A.030, 377B.110, 543.600 and various12 specialof andthis localbill acts)amend Therefore, if the votersLocal approveSchool theSupport exemptionTax ofLaw diapersto proposedprovide exemptan fromidentical allexemption. sales and use taxes currently contemplated under existing law.

This tax exemption becomes effective of January 1, 2025, and expires by limitation on December 31, 2050, only if the voters approve the amendment to the Sales and Use Tax Act of 1955 at the General EleAny amendment to the Local School Support Tax Law, including exemptions, also applies to other sales and use taxes imposed under existing law.

(NRS 354.705, 374A.020, 376A.060, 377.040, 377A.030, 377B.110, 543.600 and various special and local acts) Therefore, if the voters approve the exemption of diapers proposed by this bill, from January 1, 2025, through December 31, 2050, diapers will be exempt from all sales and use taxes currently contemplated under existing law.

EXPLANATION – Matter in bolded italics is new;

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

Will achieve a bona fide social or economic purpose and that the benefits of the exemption are expected to exceed any adverse - 82nd Session (2023) – 2 – effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted;

and 2.government to pay, when due, all interest and principal on anya local outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.

Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.

providing for sales -definingtaxcertainviterms;or *SB428*providingr –openaltiesiofor 3violation, – and useother taxes;matters properly relating thereto.” approved March 29, 1955, as amended.

providingTHE forPEOPLE theOF mannerTHE ofSTATE collection;OF NEVADA DO ENACT AS FOLLOWS:

definingSection certain1. terms;

providing penalties for violation, and other matters properly relating thereto.” approved March 29, 1955, as amended.

6 THE PEOPLE OF THE STATE OF NEVADA DO ENACT AS FOLLOWS:

9 Section 1.

Sec.- 82nd Session (2023) – 3 – imposed by this act the gross receipts from sales and the storage, use or other consumption of:

56.1.

1.

There are exempted from the taxes imposed by this act the gross receipts from sales and the storage, use or other consumption of:

(3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician,physician,y dentist or podiatric physician;

(a) “Medicine” means any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body and which is commonly recognized as a substance or - *SB428* – 4 – preparation intended for such use.

(1)appliance.Any Any auditory, ophthalmic or ocular device or appliance.(2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.