AB 453 — Revises provisions relating to taxation. (BDR 32-895)

Every retailer maintaining a place of business in this State and making sales of specified digital products for use in this State, not exempted by this chapter, shall, at the time of - *AB453_R1* – 12 – making the sales or, if the use of the specified digital products is not then taxable hereunder, at the time the use becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the Nevada Tax Commission.

The tax required pursuant to this chapter to be collected by the retailer from the purchaser must be displayed separately from the list price, the price advertised in the premises, - *AB453* – 12 – the marked price, or any other price on the sales check or other proof of sale.

Is engaged in the business of commercial broadcasting, rebroadcasting, transmitting, retransmitting, licensing, - *AB453_R1* – 13 – relicensing, distributing, redistributing or exhibiting specified digital products, in whole or in part, to another person or persons;

If a purchaser who gives a resale certificate makes any use of the specified digital products other than the commercial - *AB453* – 13 – broadcasting, rebroadcasting, transmitting, retransmitting, licensing, relicensing, distributing, redistributing or exhibiting of the specified digital products, in whole or in part, to another person or persons in the regular course of business, the use is taxable as of the time any of the specified digital products is first so stored or used.

- *AB453_R1* – 14 – Sec.

- *AB453* – 14 – 1.

- *AB453_R1* – 15 – (2) Provide services that are otherwise required to be provided by a local government, this State or the Federal Government;

(4) Operate a school, college or university located in this State that conducts regular classes and provides courses of study required for accreditation or licensing by the State Board of - *AB453* – 15 – Education or the Commission on Postsecondary Education, or for membership in the Northwest Accreditation Commission or accreditation by the Northwest Commission on Colleges and Universities;

- *AB453_R1* – 16 – Sec.

- *AB453* – 16 – Sec.

or - *AB453_R1* – 17 – (c) Accepts a certificate of exemption from a purchaser who claims an entity-based exemption, the subject of the transaction sought to be covered by the certificate is actually received by the purchaser at a location operated by the seller, and the Department provides, and posts on a website or other Internet site that is operated or administered by or on behalf of the Department, a certificate of exemption which clearly and affirmatively indicates that the claimed exemption is not available.

- *AB453* – 17 – 2.

If a purchaser certifies in writing to a seller that the specified digital products purchased will be used in a manner or for a purpose entitling the seller to regard the gross receipts from the sale as exempted by this chapter from the computation of the - *AB453_R1* – 18 – amount of the taxes imposed by this chapter, and uses the specified digital products in some other manner or for some other purpose, the purchaser shall be liable for payment of the tax as if the purchaser were a retailer making a retail sale of the specified digital products at the time of such use, and the cost of the specified digital products to the purchaser shall be deemed the gross receipts from such retail sale.

Any return required to be filed by this section must - *AB453* – 18 – be combined with any return required to be filed pursuant to the provisions of chapters 372 and 374 of NRS.

- *AB453_R1* – 19 – (3) A sale pertains to the county in this State in which the retail sale of specified digital products takes place as determined pursuant to section 23 of this act.

In the case of a return filed by a purchaser, the return must show the total sales price of the specified digital products - *AB453* – 19 – purchased by the purchaser, the use of which became subject to the tax imposed by section 24 of this act during the preceding reporting period and indicate the county in this State in which the specified digital products were first used, stored or consumed.

- *AB453_R1* – 20 – (c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the tax which was not reported or was reported for the wrong county or $3,000, whichever is less.

- *AB453* – 20 – 2.

- *AB453_R1* – 21 – 5.

If the records of a retailer indicate that a bad debt may be allocated among other states that are members of the Streamlined - *AB453* – 21 – Sales and Use Tax Agreement, the retailer may allocate the bad debt among those states.

- *AB453_R1* – 22 – (b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the deduction claimed or $1,000, whichever is less.

- *AB453* – 22 – (c) “Certified service provider” has the meaning ascribed to it in NRS 360B.060.

- *AB453_R1* – 23 – Sec.

- *AB453* – 23 – Sec.

In the case of persons who are habitually delinquent in their obligations under this chapter, the amount of the security may not be greater than three times the average actual tax due quarterly of persons filing returns for quarterly periods, five times the average actual tax due monthly of persons filing returns for - *AB453_R1* – 24 – monthly periods or seven times the average actual tax due annually of persons filing returns for annual periods.

If the Department determines that any amount, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and certify to the State Board of Examiners the amount collected in - *AB453* – 24 – excess of the amount legally due and the person from whom it was collected or by whom paid.

- *AB453_R1* – 25 – 2.

- *AB453* – 25 – Sec.

Within 90 days after a final decision upon a claim filed pursuant to this chapter is rendered by the Nevada Tax Commission, the claimant may bring an action against the Department on the grounds set forth in the claim in a court of competent jurisdiction in Carson City, the county of this State where the claimant resides or maintains his or her principal place of business or a county in which any relevant proceedings were - *AB453_R1* – 26 – conducted by the Department, for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

- *AB453* – 26 – 2.

- *AB453_R1* – 27 – Sec.

(b) The collection and remittance of the tax imposed by section 33 of this act apply to every retailer whose activities have a - *AB453* – 27 – sufficient nexus with this State to satisfy the requirements of the United States Constitution.

- *AB453_R1* – 28 – Sec.

(5) Provides software development or research and development activities related to any activity described in this subsection, if such software development or research and - *AB453* – 28 – development activities are directly related to the physical or electronic marketplace provided by a marketplace provider;

- *AB453_R1* – 29 – (3) Charges, collects or otherwise receives selling fees, listing fees, referral fees, closing fees, fees for inserting or making available specified digital products on a marketplace or other consideration from the facilitation of a retail sale of specified digital products, regardless of ownership or control of the specified digital products that are the subject of the retail sale;

§ 522(5) who meets the definition of - *AB453* – 29 – “marketplace facilitator” provided in subsection 1, including, without limitation, by facilitating the retail sale of a software application of a marketplace seller which may be accessed through the digital platform owned, operated or controlled by the provider of direct broadcast satellite services or cable operator.

or - *AB453_R1* – 30 – 2.

(a) The marketplace facilitator and the marketplace seller have entered into a written agreement whereby the marketplace seller assumes responsibility for the collection and remittance of the tax - *AB453* – 30 – imposed by section 24 of this act, and the collection and remittance of the tax imposed by section 33 of this act, for retail sales made by the marketplace seller through the marketplace facilitator;

- *AB453_R1* – 31 – 3.

and - *AB453* – 31 – (b) The failure to collect and remit the correct tax on the retail sale was due to incorrect information provided to the marketplace facilitator by the marketplace seller.

- *AB453_R1* – 32 – 3.

- *AB453* – 32 – (a) The cumulative gross receipts from retail sales of tangible personal property and specified digital products to customers in this State resulting from referrals from a platform of the referrer are in excess of $100,000;

- *AB453_R1* – 33 – (1) A statement that tax imposed by sections 24 and 33 of this act is due on certain purchases;

and - *AB453* – 33 – (c) The referrer provides the Department with periodic reports in an electronic format and in the manner prescribed by the Department, which reports contain all of the following:

- *AB453_R1* – 34 – 4.

and - *AB453* – 34 – (IV) Does not collect money or other consideration from the customer for the transaction.

- *AB453_R1* – 35 – (a) Any claim, action, mandate, power, remedy or discretion of the Department, or an agent or designee of the Department.

- *AB453* – 35 – (5) Facilitates the retailer’s delivery of products or services to customers in this State by allowing the retailer’s customers to pick up or receive products or services sold by the retailer at an office, distribution facility, warehouse, storage place or similar place of business maintained by the component member in this State;

- *AB453_R1* – 36 – 3.

and (b) The collection and remittance of the tax imposed by section 33 of this act,  apply to every retailer who enters into an agreement with a resident of this State under which the resident, for a commission or other consideration based upon the sale of specified digital products by the retailer, directly or indirectly refers potential - *AB453* – 36 – customers, whether by a link on an Internet website or otherwise, to the retailer, if the cumulative gross receipts from sales by the retailer to customers in this State who are referred to the retailer by all residents with this type of an agreement with the retailer is in excess of $10,000 during the preceding four quarterly periods ending on the last day of March, June, September and December.

Such proof may consist of the sworn written statements of each resident with whom the retailer has an agreement stating that the resident did not engage in any solicitation in this State on behalf of the retailer during the - *AB453_R1* – 37 – preceding four quarterly periods ending on the last day of March, June, September and December, if the statements were obtained from each resident and provided to the Department in good faith.

In administering the provisions of this chapter, the Department shall construe the terms “seller,” “retailer” and - *AB453* – 37 – “retailer maintaining a place of business in this State” in accordance with the provisions of subsection 1.

- *AB453_R1* – 38 – (a) Resides in the same home or dwelling in this State as the member;

A letter of exemption issued to a - *AB453* – 38 – relative of a deceased member of the Nevada National Guard described in subsection 3 of section 102 of this act expires on the date 3 years after the date of the death of the member.

- *AB453_R1* – 39 – Sec.

- *AB453* – 39 – 2.

- *AB453_R1* – 40 – (a) Is required to:

Any retailer or other person who fails or refuses to furnish any return required to be made, or who fails or refuses to - *AB453* – 40 – furnish a supplemental return or other data required by the Department, or who renders a false or fraudulent return shall be fined not more than $500 for each offense.

In the determination of any case arising under this chapter, the rule of res judicata is applicable only if the liability - *AB453_R1* – 41 – involved is for the same period as was involved in another case previously determined.

The remedies of the State provided for in this chapter are cumulative, and no action taken by the Department or the Attorney General constitutes an election by the State to pursue - *AB453* – 41 – any remedy to the exclusion of any other remedy for which provision is made in this chapter.

360.261 Not later than 30 days after the Department or the Nevada Tax Commission makes a finding or ruling, or enters into an agreement with a retailer providing, that the provisions of chapters 372 and 374 of NRS and sections 2 to 117, inclusive, of this act relating to the imposition, collection and remittance of [the sales] a tax [, and the collection and remittance of the use tax,] do not apply to the retailer, despite the presence in this State of an office, - *AB453_R1* – 42 – distribution facility, warehouse or storage place or similar place of business which is owned or operated by the retailer or an affiliate of the retailer, whether the finding, ruling or agreement is written or oral and whether the finding, ruling or agreement is express or implied, the Department shall submit a report of the finding, ruling or agreement to the Director of the Legislative Counsel Bureau for transmittal to:

- *AB453* – 42 – (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.

If a person fails to file a return or the Department is not satisfied with the return or returns of any tax, contribution or premium or amount of tax, contribution or premium required to be paid to the State by any person, in accordance with the applicable provisions of this chapter, chapter 360B, 362, 363A, 363B, 363C, 363D, 369, 370, 372, 372A, 372B, 374, 377, 377A, 377C, 377D or 444A of NRS, NRS 482.313, 482C.230 or 482C.240, or chapter 585 or 680B of NRS [,] or sections 2 to 117, inclusive, of this act, as - *AB453_R1* – 43 – administered or audited by the Department, it may compute and determine the amount required to be paid upon the basis of:

360.417 Except as otherwise provided in NRS 360.232 and 360.320, and unless a different penalty or rate of interest is specifically provided by statute, any person who fails to pay any tax provided for in chapter 362, 363A, 363B, 363C, 363D, 369, 370, 372, 372B, 374, 377, 377A, 377C, 377D, 444A or 585 of NRS [,] or - *AB453* – 43 – sections 2 to 117, inclusive, of this act, any of the taxes provided for in NRS 372A.290, or any fee provided for in NRS 482.313, 482C.230 or 482C.240, and any person or governmental entity that fails to pay any fee provided for in NRS 360.787, to the State or a county within the time required, shall pay a penalty of not more than 10 percent of the amount of the tax or fee which is owed, as determined by the Department, in addition to the tax or fee, plus interest at the rate of 0.75 percent per month, or fraction of a month, from the last day of the month following the period for which the amount or any portion of the amount should have been reported until the date of payment.

If any person is delinquent in the payment of any tax or fee administered by the Department or if a determination has - *AB453_R1* – 44 – been made against the person which remains unpaid, the Department may:

Every person notified by a demand to transmit shall, within 10 days after receipt of the demand to transmit, inform the - *AB453* – 44 – Department of and transmit to the Department all such credits, other personal property or debts in his or her possession, under his or her control or owing by that person within the time and in the manner requested by the Department.

- *AB453_R1* – 45 – 6.

360B.030 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 360B.040 to - *AB453* – 45 – 360B.100, inclusive, and section 123 of this act have the meanings ascribed to them in those sections.

The Department shall provide public notification to consumers of tangible personal property [,] or specified digital products, including purchasers who are exempt from any sales and use taxes, of the practices of this State relating to - *AB453_R1* – 46 – the collection, use and retention of any personally identifiable information.

- *AB453* – 46 – Sec.

128.

NRS 363C.200 is hereby amended to read as follows:

363C.200 1.

For the privilege of engaging in a business in this State, a commerce tax is hereby imposed upon each business entity whose Nevada gross revenue in a taxable year exceeds [$4,000,000] $3,500,000 in an amount determined pursuant to NRS 363C.300 to 363C.560, inclusive.

The commerce tax is due and payable as provided in this section.

2.

Each business entity whose Nevada gross revenue in a taxable year exceeds [$4,000,000] $3,500,000 shall, on or before the 45th day immediately following the end of that taxable year, file with the Department a return on a form prescribed by the Department.

The Department shall not require a business entity whose Nevada gross revenue for a taxable year is [$4,000,000] $3,500,000 or less to file a return for that taxable year.

The return required by this subsection must include such information as is required by the Department.

3.

For the purposes of determining the amount of the commerce tax due pursuant to this chapter, the initial return filed by a business entity with the Department pursuant to subsection 2 must designate the business category in which the business entity is primarily engaged.

A business entity may not change the business category designated for that business entity unless the person applies to the Department to change such designation and the Department determines that the business is no longer primarily engaged in the designated business category.

4.

A business entity shall remit with the return the amount of commerce tax due pursuant to subsection 1.

Upon written application made before the date on which payment of the commerce tax due pursuant to this chapter must be made, the Department may for good cause extend by not more than 30 days the time within which a business entity is required to pay the commerce tax.

If the commerce tax is paid during the period of extension, no penalty or late charge may be imposed for failure to pay the commerce tax at the time required, but the business entity shall pay interest at the rate of 0.75 percent per month from the date on which the amount would have been due without the extension until the date of payment, unless otherwise provided in NRS 360.232 or 360.320.

128.

(Deleted by amendment.) Sec.

NRS(Deleted 363C.300by isamendment.) herebySec. amended to read as follows:

363C.300 Except as otherwise provided in this section, the commerce tax required to be paid by a business entity engaging in a business in this State is equal to the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the - *AB453* – 47 – business entity for the taxable year and multiplying that amount by the rate set forth in NRS 363C.310 to 363C.550, inclusive, for the business category in which the business entity is primarily engaged.

If the business entity cannot be categorized in a business category set forth in NRS 363C.310 to 363C.550, inclusive, the commerce tax required to be paid by that business entity is equal to the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by the rate set forth in NRS 363C.560.

Sec.

NRS(Deleted 363C.310by isamendment.) herebySec. amended to read as follows:

363C.310 1.

The agriculture, forestry, fishing and hunting business category (NAICS 11) includes all business entities primarily engaged in agricultural production or agricultural support activities, or both, including, without limitation, growing crops, raising animals, harvesting timber and harvesting fish and other animals from a farm, ranch or their natural habitats.

2.

Examples of business entities in this category include, without limitation, farms, ranches, dairies, greenhouses, nurseries, orchards and hatcheries.

3.

This category does not include business entities primarily engaged in agricultural research or administering programs for regulating and conserving land, minerals, wildlife or forest use.

4.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.063 percent.

Sec.

NRS(Deleted 363C.320by isamendment.) herebySec. amended to read as follows:

363C.320 1.

The mining, quarrying and oil and gas extraction business category (NAICS 21) includes all business entities primarily engaged in mining operations and mining support activities, including, without limitation, extracting:

(a) Naturally occurring mineral solids, such as coal and ores;

(b) Liquid minerals, such as crude petroleum;

and (c) Gases, such as natural gas.

2.

Examples of business entities in this category include, without limitation:

(a) Business entities operating mines, quarries or oil and gas wells on their own account or for others on a contract or fee basis.

(b) Mining support activities, including business entities that perform exploration or other mining services, or both, on a contract or fee basis, except geophysical surveying, mine site preparation and the construction of oil and gas pipelines.

- *AB453* – 48 – 3.

As used in subsections 1 and 2, the term “mining” includes quarrying, well operations and beneficiating, including, without limitation, crushing, screening, washing, flotation and other preparation customarily performed at a mine site or as a part of mining activity.

4.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.051 percent.

Sec.

NRS(Deleted 363C.330by isamendment.) herebySec. amended to read as follows:

363C.330 1.

The utilities and telecommunications business category (NAICS 22 and 517, respectively) includes:

(a) All business entities primarily engaged in providing utility services, including, without limitation, electric power, natural gas, steam supply, water supply and sewage removal;

and (b) All business entities primarily engaged in providing telecommunications and the services related to that activity, including, without limitation, telephony, cable and satellite distribution services, Internet access and telecommunications reselling services.

2.

This category does not include business entities primarily engaged in waste management and remediation services that are described in NRS 363C.490.

3.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.136 percent.

Sec.

NRS(Deleted 363C.340by isamendment.) herebySec. amended to read as follows:

363C.340 1.

The construction business category (NAICS 23) includes all business entities primarily engaged in the construction of buildings or engineering projects, such as highways and utility systems.

Business entities engaged in the preparation of sites for new construction and business entities primarily engaged in subdividing land for sale as building sites also are included in this category.

2.

Examples of business entities in this category include, without limitation, general contractors, design-builders, construction managers, turnkey contractors, joint-venture contractors, specialty trade contractors, for-sale builders, speculative builders and merchant builders.

- *AB453* – 49 – 3.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.083 percent.

Sec.

NRS(Deleted 363C.350by isamendment.) herebySec. amended to read as follows:

363C.350 1.

The manufacturing business category (NAICS 31, 32 and 33) includes all business entities primarily engaged in the mechanical, physical or chemical transformation of materials, substances or components into new products.

2.

Examples of business entities in this category include, without limitation, milk bottling and pasteurizing, water bottling and processing, fresh fish packaging, apparel jobbing, contracting on materials owned by others, printing and related activities, ready- mixed concrete production, leather converting, grinding of lenses to prescription, wood preserving, electroplating, plating, metal heat, treating and polishing for the trade, lapidary work for the trade, fabricating signs and advertising displays, rebuilding or remanufacturing machinery, ship repair and renovation, machine shops and tire retreading.

3.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.091 percent.

Sec.

NRS(Deleted 363C.360by isamendment.) herebySec. amended to read as follows:

363C.360 1.

The wholesale trade business category (NAICS 42) includes all business entities primarily engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.101 percent.

Sec.

NRS(Deleted 363C.370by isamendment.) herebySec. amended to read as follows:

363C.370 1.

The retail trade business category (NAICS 44 and 45) includes all businesses primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting - *AB453* – 50 – [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.111 percent.

Sec.

NRS(Deleted 363C.380by isamendment.) herebySec. amended to read as follows:

363C.380 1.

The air transportation business category (NAICS 481) includes all business entities primarily engaged in providing air transportation of passengers or cargo, or both, using aircraft, such as an airplane and helicopter.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.058 percent.

Sec.

NRS(Deleted 363C.390by isamendment.) herebySec. amended to read as follows:

363C.390 1.

The rail transportation business category (NAICS 482) includes all business entities primarily engaged in providing rail transportation of passengers or cargo, or both, using railroad rolling stock.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.331 percent.

Sec.

NRS(Deleted 363C.400by isamendment.) herebySec. amended to read as follows:

363C.400 1.

The other transportation business category (NAICS 483, 485, 486, 487, 488, 491 and 492) includes all business entities primarily engaged in:

(a) Water transportation, including, without limitation, the transportation of passengers and cargo using watercraft;

(b) Transit and ground passenger transportation, including, without limitation, charter buses, school buses, interurban bus transportation, taxis and limousine services, street railroads, commuter rail and rapid transit;

(c) Pipeline transportation, including, without limitation, using transmission pipelines to transport products, such as crude oil, natural gas, refined petroleum products and slurry;

(d) Scenic and sightseeing transportation, including, without limitation, on land or the water, or in the air;

(e) Support activities for transportation, including, without limitation, air traffic control services, marine cargo handling, motor vehicle towing, railroad switching and terminals, and ship repair and - *AB453* – 51 – maintenance not done in a shipyard, such as floating drydock services in a harbor;

(f) Postal services, including, without limitation, the activities of the United States Postal Service and its subcontractors operating under a universal service obligation to provide mail services, deliver letters and small parcels, and rural post offices on contract to the United States Postal Service;

and (g) Courier and messenger services, including, without limitation, the provision of intercity, local or international delivery of parcels and documents without operating under a universal service obligation.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.129 percent.

Sec.

NRS(Deleted 363C.410by isamendment.) herebySec. amended to read as follows:

363C.410 1.

The truck transportation business category (NAICS 484) includes all business entities primarily engaged in providing over-the-road transportation of cargo using motor vehicles, such as a truck and tractor trailer.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.202 percent.

Sec.

NRS(Deleted 363C.420by isamendment.) herebySec. amended to read as follows:

363C.420 1.

The warehousing and storage business category (NAICS 493) includes all business entities primarily engaged in operating warehousing and storage facilitiesfor general merchandise, refrigerated goods and other warehouse products.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.128 percent.

Sec.

NRS(Deleted 363C.430by isamendment.) herebySec. amended to read as follows:

363C.430 1.

The publishing, software and data processing business category (NAICS 511, 512, 515 and 518) includes all business entities primarily engaged in:

(a) Publishing, except on the Internet, including, without limitation, the publishing of newspapers, magazines, other - *AB453* – 52 – periodicals and books, as well as directory and mailing list and software publishing;

(b) Motion picture and sound recording, including, without limitation, the production and distribution of motion pictures and sound recordings;

(c) Broadcasting, except on the Internet, including, without limitation, creating content or acquiring the right to distribute content and subsequently broadcast the content;

and (d) Data processing, hosting and related services, including, without limitation, the provision of infrastructure for hosting and data processing services.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.253 percent.

Sec.

NRS(Deleted 363C.440by isamendment.) herebySec. amended to read as follows:

363C.440 1.

The finance and insurance business category (NAICS 52) includes all business entities primarily engaged in financial transactions or in facilitating financial transactions.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.111 percent.

Sec.

NRS(Deleted 363C.450by isamendment.) herebySec. amended to read as follows:

363C.450 1.

The real estate and rental and leasing business category (NAICS 53) includes all business entities primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets, providing related services, managing real estate for others, selling, renting or buying real estate for others, and appraising real estate.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.25 percent.

Sec.

NRS(Deleted 363C.460by isamendment.) hereby- amended*AB453_R1* to– read47 as– follows:Sec.

363C.460 1.

The professional, scientificand technical services business category (NAICS 54) includes all business entities primarily engaged in performing professional, scientific and technical activities for others.

- *AB453* – 53 – 2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.181 percent.

Sec.

NRS(Deleted 363C.470by isamendment.) herebySec. amended to read as follows:

363C.470 1.

The management of companies and enterprises business category (NAICS 55) includes all business entities primarily engaged in:

(a) Holding the securities of, or other equity interests in, companies and enterprises for the purpose of owning a controlling interest or influencing management decisions;

or (b) Administering, overseeing and managing establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision-making role of the company or enterprise.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.137 percent.

Sec.

NRS(Deleted 363C.480by isamendment.) herebySec. amended to read as follows:

363C.480 1.

The administrative and support services business category (NAICS 561) includes all business entities primarily engaged in activities that support the day-to-day operations of other organizations.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.154 percent.

Sec.

NRS(Deleted 363C.490by isamendment.) herebySec. amended to read as follows:

363C.490 1.

The waste management and remediation services business category (NAICS 562) includes all business entities primarily engaged in the collection, treatment and disposal of waste materials.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.261 percent.

- *AB453* – 54 – Sec.

NRS(Deleted 363C.500by isamendment.) herebySec. amended to read as follows:

363C.500 1.

The educational services business category (NAICS 61) includes all businesses primarily engaged in providing instruction and training in a wide variety of subjects.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.281 percent.

Sec.

NRS(Deleted 363C.510by isamendment.) herebySec. amended to read as follows:

363C.510 1.

The health care and social assistance business category (NAICS 62) includes all business entities primarily engaged in providing health care and social assistance for natural persons.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.190 percent.

Sec.

NRS(Deleted 363C.520by isamendment.) herebySec. amended to read as follows:

363C.520 1.

The arts, entertainment and recreation business category (NAICS 71) includes all business entities primarily engaged in operating facilities or providing services to meet varied cultural, entertainment and recreational interests of their patrons.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.24 percent.

Sec.

NRS(Deleted 363C.530by isamendment.) herebySec. amended to read as follows:

363C.530 1.

The accommodation business category (NAICS 721) includes all business entities primarily engaged in providing lodging or short-term accommodations for travelers, vacationers and others.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.2 percent.

- *AB453* – 55 – Sec.

NRS(Deleted 363C.540by isamendment.) herebySec. amended to read as follows:

363C.540 1.

The food services and drinking places business category (NAICS 722) includes all business entities primarily engaged in preparing meals, snacks and beverages to customer order for immediate on-premises and off-premises consumption.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.194 percent.

Sec.

NRS(Deleted 363C.550by isamendment.) herebySec. amended to read as follows:

363C.550 1.

The other services business category (NAICS 81) includes all business entities primarily engaged in providing services not included in any of the business categories described in NRS 363C.310 to 363C.540, inclusive.

Business entities in this category are primarily engaged in activities such as repairing equipment and machinery, promoting or administering religious activities, grantmaking, advocacy, and providing dry cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services and dating services.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.142 percent.

Sec.

NRS(Deleted 363C.560by isamendment.) herebySec. amended to read as follows:

363C.560 1.

The unclassified business category includes any business entity not included in any of the business categories established by NRS 363C.310 to 363C.550, inclusive.

2.

The amount of the commerce tax for a business entity included in this category is the amount obtained by subtracting [$4,000,000] $3,500,000 from the Nevada gross revenue of the business entity for the taxable year and multiplying that amount by 0.128 percent.

Sec.

NRS(Deleted 368A.200by isamendment.) herebySec. amended to read as follows:

368A.200 1.

Except as otherwise provided in this section, there is hereby imposed an excise tax on admission to any facility in this State where live entertainment is provided and on the charge for live entertainment provided by an escort at one or more locations in this State.

The rate of the tax is:

- *AB453* – 56 – (a) Except as otherwise provided in paragraph (b), for admission to a facility in this State where live entertainment is provided, 9 percent of the admission charge to the facility.

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

2.

Amounts paid for:

(a) Admission charges collected and retained by a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.

§ 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 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.

(b) Gratuities directly or indirectly remitted to persons employed at a facility where live entertainment is provided are not taxable pursuant to this section.

(c) Fees imposed, collected and retained by an independent financial institution in connection with the use of credit cards or debit cards to pay the admission charge to a facility where live entertainment is provided are not taxable pursuant to this section.

As used in this paragraph, “independent financial institution” means a financial institution that is not the taxpayer or an owner or operator of the facility where the live entertainment is provided or an affiliate of any of those persons.

3.

The tax imposed by this section must be added to and collected from the purchaser at the time of purchase, whether or not the admission for live entertainment is purchased for resale.

4.

The tax imposed by subsection 1 does not apply to:

(a) Live entertainment that this State is prohibited from taxing under the Constitution, laws or treaties of the United States or the Nevada Constitution.

(b) Live entertainment that is governed by the Nevada Interscholastic Activities Association pursuant to chapter 385B of NRS or is provided or sponsored by an elementary school, junior high school, middle school or high school, if only pupils or faculty provide the live entertainment.

(c) An athletic contest, event, tournament or exhibition provided by an institution of the Nevada System of Higher Education, if students of such an institution are contestants in the contest, event, tournament or exhibition.

- *AB453* – 57 – (d) Live entertainment that is provided by or entirely for the benefit of a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.

§ 501(c), or a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS, only if 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.

(e) Any boxing contest or exhibition governed by the provisions of chapter 467 of NRS.

(f) Live entertainment that is not provided at a licensed gaming establishment if the facility in which the live entertainment is provided has a maximum occupancy of less than 200 persons.

(g) Live entertainment that is provided at a licensed gaming establishment that is licensed for less than 51 slot machines, less than 6 games, or any combination of slot machines and games within those respective limits, if the facility in which the live entertainment is provided has a maximum occupancy of less than 200 persons.

(h) Live entertainment that is provided at a trade show.

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

(j) Live entertainment that is provided at a licensed gaming establishment at private meetings or dinners attended by members of a particular organization or by a casual assemblage if the purpose of the event is not primarily for entertainment.

(k) Live entertainment that is provided in the common area of a shopping mall, unless the entertainment is provided in a facility located within the mall.

(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.

(m) Live entertainment that is incidental to an amusement ride, a motion simulator or a similar digital, electronic, mechanical or electromechanical attraction.

For the purposes of this paragraph, live entertainment shall be deemed to be incidental to an amusement ride, a motion simulator or a similar digital, electronic, mechanical or electromechanical attraction if the live entertainment is:

(1) Not the predominant element of the attraction;

and (2) Not the primary purpose for which the public rides, attends or otherwise participates in the attraction.

(n) A race scheduled at a race track in this State and sanctioned by the National Association for Stock Car Auto Racing, if two or - *AB453* – 58 – more such races are held at that race track during the same calendar year.

(o) [An athletic contest, event or exhibition conducted by a professional team based in this State if the professional team based in this State is a participant in the contest, event or exhibition.

(p)] Live entertainment that is provided by or entirely for the benefit of a governmental entity.

5.

As used in this section:

(a) “Affiliate” has the meaning ascribed to it in NRS 463.0133.

(b) “Maximum occupancy” means, in the following order of priority:

(1) The maximum occupancy of the facility in which live entertainment is provided, as determined by the State Fire Marshal or the local governmental agency that has the authority to determine the maximum occupancy of the facility;

(2) If such a maximum occupancy has not been determined, the maximum occupancy of the facility designated in any permit required to be obtained in order to provide the live entertainment;

or (3) If such a permit does not designate the maximum occupancy of the facility, the actual seating capacity of the facility in which the live entertainment is provided.

(c) “Operator” includes, without limitation, a person who operates a facility where live entertainment is provided or who presents, produces or otherwise provides live entertainment.

Sec.

(Deleted by amendment.) Sec.

157.3.

Chapter 218D of NRS is hereby amended by adding thereto a new section to read as follows:

TheAny provisionsstate oflegislation sectionsenacted 128on toor 155,after inclusive,the effective date of this actsection applywhich onlyauthorizes to a taxablestate year,agency asto definedissue intransferable NRStax 363C.080,credits beginningis onsubject orto afterthe Julyprovisions 1,of 2025.this section.

TheIf provisionsthe ofInterim sectionFinance 156Committee ofapproves thisa actrequest applyto onlytransfer money from the Account to taxableStabilize receiptsthe thatOperation areof collectedthe byState aGovernment taxpayerto the State General Fund pursuant to thesubsection provisions7 of chapterNRS 368A353.288 or the Legislature directly allocates money from the Account pursuant to subsection 8 of NRS on353.288 during a fiscal emergency, during the remainder of the fiscal year in which the transfer is approved or afterthe Julyallocation 1,is 2025.made and during the fiscal year immediately following the fiscal year in which the transfer is approved or the allocation is made:

(a) A state agency shall not issue transferable tax credits.

(b) Any transferable tax credits issued by a state agency before the date on which the transfer was approved or the allocation was made may not be applied to any state or local tax.

The expiration date for such transferable tax credits must be extended by the number of days that such transferable tax credits may not be applied to state and local taxes pursuant to this section.

3.

As used in this section, “fiscal emergency” means a fiscal emergency that has been declared by the Legislature, or the Interim Finance Committee if the Legislature is not in session, and the Governor.

157.7.

Chapter 353 of NRS is hereby amended by adding thereto a new section to read as follows:

If the Economic Forum forecasts that the revenue that will be collected by the State for general, unrestricted uses during the biennium that begins on July 1 of the year following the date on which the Economic Forum was empaneled will be less than the amount of such revenue collected during the immediately preceding biennium and the forecasted reduction in revenue - *AB453_R1* – 48 – exceeds 7 percent, it is the intent of the Legislature that the Legislature will review any transferable tax credits which the State is authorized to issue and consider if the amount of such transferable tax credits should be reduced.

Sec.

Sections 1 to 127, inclusive, and 159157.3 to 159, inclusive, of thisthi(a) actUpon becomepassage effective:and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

Sections 128 to 158,157, inclusive, of this act become effective on July 1, 2025.

- *AB453* – 59 – TEXT OF REPEALED SECTION 360B.483 “Specified digital products” construed.

“Specified digital products” means electronically transferred dig2.aldigital Asaudio usedworks, indigital thisaudiovisual section:iovisual works and digital books.

2.

As used in this section:

(b) “Digital audiovisual works” means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.

inimpression theof ordinarymotion, and(c) usual“Digital sensebooks” asmeans books.reworks that are generally recognized (d)in “Electronicallythe transferred”ordinary meansand obtainedusual bysense aas purchaserbooks. by means other than tangible storage media.

(d) “Electronically transferred” means obtained by a purchaser by means other than tangible storage media.

H - *AB453**AB453_R1*