SB 431 — Revises provisions relating to the excise tax on live entertainment. (BDR 32-692)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 13) EXEMPT (Reprinted with amendments adopted on MayApril 29,21, 2025) SECONDFIRST REPRINT S.B.

making an appropriation;

resales of admission to certain facilities where live entertainment is provided to - *SB431_R2**SB431_R1* – 2 – collect and remit the tax if, in the immediately preceding calendar year or the current calendar year, the facilitator had more than $100,000 of gross receipts from certain transactions or made or facilitated 200 or more sales transactions, on the facilitator’s own behalf or on behalf of a reseller, unless the facilitator enters into an agreement with a reseller whereby the reseller agrees to assume responsibility for facilitator is not liable for the collectionpayment of the tax under certain circumstances.ch a Section 9 of this bill authorizes the Department of Taxation to adopt regulations requiring certain persons who receive a fee in exchange for listing or advertising resales for a reseller of admission to certain facilities where live entertainment is provided but who do not collect money or other consideration from a customer to impose, collect and impositionremit the tax if 200 or more sales transactions result from referrals made by the person or the cumulative gross receipts of sales resExisting law requires the tax.excise tax imposed on admission to live entertainment events to be collected by the Nevada Gaming Control Board or the Department, depending on whether the live entertainment was provided at a licensed gaming establishment.

Section(NRS 8368A.110, of368A.140) thisExisting billlaw providesrequires thatthe suchBoard aand facilitatorthe isDepartment notto liabledeposit all taxes, interest and penalties received from the tax in the State Treasury for credit to the paymentState General Fund, except that, on or before October 1 of each year, the taxDepartment underis certainrequired circumstances.to deposit $150,000 from the Arts Council as a continuing appropriation.

regulations(NRS requiring368A.220) certainSection persons13.5 whoof receivethishe aNevada feebill inrequires exchangeone-ninth forof listingall ortaxes, advertisinginterest resalesand forpenalties areceived resellerfrom ofthe admissiontax toafter certainthe facilitiesdistribution whereto livethe entertainmentNevada isArts providedCouncil, butto whobe dodistributed notto collectthe moneyregional ortransportation othercommission considerationin from a customercounty towhose impose,population collectis and700,000 remit the tax if 200 or more sales(currently transactionsonly resultClark fromCounty) referralsfor madeuse byfor the personoperation orand themaintenance cumulative gross receipts of salesa resultingpublic fromtransit suchsystem. referrals exceed $100,000.

Existing law requires the excise tax imposed on admission to live entertainment events,events. commonly referred to as the live entertainment tax, to be collected by the entertainment was provided at a licensed gaming establishment.

(NRS 368A.110, 368A.140) Existing law requires the Board and the Department to deposit all taxes, interest and penalties received from the live entertainment tax in the State Treasury for credit to the State General Fund, except that, on or before October 1 of each year, the Department is required to deposit $150,000 from the taxes, interest and penalties it receives in the State Treasury for credit to the Nevada Arts Council as a continuing appropriation.

(NRS 368A.220) Sections 13.5 and 13.9 of this bill entertainment tax for a taxable period beginning on or after January 1, 2026, after subtracting the amount of the distribution to the Nevada Arts Council, must be distributed to the regional transportation commission in a county whose population is 700,000 or more (currently only Clark County) for use for the operation and maintenance of a public transit system.

Sections 13.6, 13.9 and 14 of this bill provide that if a certain ballot question for the imposition of a sales and use tax to provide certain funding for that regional transportation commission is not submitted or approved by the voters of such a county before January 1, 2029, the distribution increase to one-ninth of all taxes, interest and penalties received from the live entertainment tax for a taxable period beginning on or after July 1, 2029, after subtracting the amount of the distribution to the Nevada Arts Council.

Section 13.8 of this bill makes an appropriation to the Department of Taxation for certain expenses to implement the provisions of this bill.

Sections 2-6 and 12 of this bill define certain terms relevant to the tax on admission to live entertainment events.

For the purposes of this - *SB431_R2* – 3 – section, control shall be presumed to exist if any person directly or indirectly owns, controls, holds with the power to vote or holds proxies representing 10 percent or more of the voting securities of any other person.

- *SB431_R1* – 3 – (a) Directly or indirectly does one or more of the following to facilitate the resale of admission to any facility in this State where live entertainment is provided:

- *SB431_R2* – 4 – (8) Provides or offers customer service to a marketplace reseller or the customers of a marketplace reseller, or accepts or assists with taking orders, returns or exchanges of admission to any facility in this State where live entertainment is provided which was resold by a marketplace reseller;

and - *SB431_R1* – 4 – (b) Directly or indirectly does one or more of the following to facilitate a sale:

and - *SB431_R2* – 5 – (b) Do one or more of the activities listed in paragraph (b) of subsection 1.

Is made through any physical or electronic marketplace owned, operated or controlled by a marketplace facilitator, even if the reseller would not have been required to collect and remit the - *SB431_R1* – 5 – tax imposed by this chapter had the resale not been made through such marketplace;

(a) The marketplace facilitator and the marketplace reseller have entered into a written agreement whereby the marketplace - *SB431_R2* – 6 – reseller assumes responsibility for the collection and remittance of the tax imposed by NRS 368A.200 for resales made by the marketplace reseller through the marketplace facilitator;

 Upon request of the Department, a marketplace facilitator shall provide to the Department a report containing the name of each - *SB431_R1* – 6 – marketplace reseller with whom the marketplace facilitator has entered into an agreement pursuant to this subsection and such other information as the Department determines is necessary to ensure that each marketplace reseller with whom the marketplace facilitator has entered into an agreement pursuant to this subsection has registered with the Department to collect and remit the tax imposed by NRS 368A.200.

Except as otherwise provided in subsection 3, in administering the provisions of this chapter, the Department shall not hold a marketplace facilitator liable for the payment of any tax - *SB431_R2* – 7 – imposed by this chapter which is attributable to a resale made or facilitated on behalf of a marketplace reseller who is not an affiliate of the marketplace facilitator if the marketplace facilitator provides proof satisfactory to the Department that the resale was made before January 1, 2028.

The relief from liability provided pursuant to subsection 2 for the 2026 and 2027 calendar years, respectively, must not exceed 5 percent of the total tax imposed by NRS 368A.200 owed - *SB431_R1* – 7 – for the calendar year on the taxable receipts of the marketplace facilitator from resales made or facilitated by the marketplace facilitator for one or more marketplace resellers.

- *SB431_R2* – 8 – (a) Posts a conspicuous notice on each platform of the referrer that includes all of the following:

- *SB431_R1* – 8 – (3) Information informing the purchaser that the notice is provided under the requirements of this section;

- *SB431_R2* – 9 – 4.

(b) “Referral” means the transfer though telephone, an Internet link or other means by a referrer of a potential customer to a reseller who advertises or lists on a platform of the referrer - *SB431_R1* – 9 – the resale of admission to any facility in this State where live entertainment is provided.

- *SB431_R2* – 10 – (b) The right of a taxpayer to seek a refund pursuant to NRS 368A.250 to 368A.340, inclusive.

- *SB431_R1* – 10 – Sec.

(b) For live entertainment provided by an escort who is escorting one or more persons at a location or locations in this State, - *SB431_R2* – 11 – 9 percent of the total amount, expressed in terms of money, of consideration paid for the live entertainment provided by the escort.

§ 501(c), or by a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS, are not taxable pursuant to this section, only if - *SB431_R1* – 11 – the number of tickets to the live entertainment which are offered for sale or other distribution to patrons, either directly or indirectly through a partner, subsidiary, client, affiliate or other collaborator, is less than 7,500.

- *SB431_R2* – 12 –  If the resale of admission to any facility in this State where live entertainment is provided is an occasional sale, such a resale is exempt from the payment of any additional amount of excise tax pursuant to this subsection.

For the purposes of this subsection, an “occasional sale” is a resale of admission to a facility in this State where live entertainment is provided by a person who is not engaged in the business of reselling such admission, provided that such resale is not one of a series of resales sufficient in number, - *SB431_R1* – 12 – scope and character to constitute the activity of engaging in the business of making such resales.

- *SB431_R2* – 13 – (i) Music performed by musicians who move constantly through the audience if no other form of live entertainment is afforded to the patrons.

- *SB431_R1* – 13 – (l) Food and product demonstrations provided at a shopping mall, a craft show or an establishment that sells grocery products, housewares, hardware or other supplies for the home.

- *SB431_R2* – 14 – [(c)] (b) “Operator” includes, without limitation, a person who operates a facility where live entertainment is provided or who presents, produces or otherwise provides live entertainment.

(a) Each taxpayer who is a licensed gaming establishment shall file with the Board, on or before the 15th day of each month, a report showing the amount of all taxable receipts for the preceding - *SB431_R1* – 14 – month or the month in which the taxable events occurred.

[On or before October 1 of each year, the] Except as otherwise provided in subsection 5, the State Controller shall distribute monthly 1/36one-ninth of all fees, taxes, interest and penalties which derive from the tax imposed pursuant to this chapter to the regional transportation commission created in a county whose population is 700,000 or more.

13.6.

NRS 368A.220 is hereby amended to read as follows:

368A.220 1.

Except as otherwise provided in this section: