As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 363B.015
to 363B.050 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2003, 20th Special Session, 141 ; A 2005, 22nd Special Session,
139 )
“Business activity”
means the performance of a service or engagement in a trade for profit.
(Added to NRS by 2005, 22nd Special Session, 137 )
“Commission” means the Nevada
Tax Commission.
(Added to NRS by 2003, 20th Special Session, 141 )
“Employer” means any employer
who is required to pay a contribution pursuant to NRS 612.535 for any calendar quarter with respect to any
business activity of the employer, except a financial institution, an
Indian tribe, a nonprofit organization, a political subdivision or any
person who does not supply a product or service, but who only consumes a
service. For the purposes of this section:
1. “Financial institution” has the meaning ascribed to it in NRS
363A.050 .
2. “Indian tribe” includes any entity described in subsection 10
of NRS 612.055 .
3. “Nonprofit organization” means a nonprofit religious,
charitable, fraternal or other organization that qualifies as a
tax-exempt organization pursuant to 26 U.S.C. § 501(c).
4. “Political subdivision” means any entity described in
subsection 9 of NRS 612.055 .
(Added to NRS by 2003, 20th Special Session, 141 ; A 2005, 2480 ; 2005, 22nd Special Session, 139 )
“Employment” has the meaning
ascribed to it in NRS 612.065 to
612.145 , inclusive.
(Added to NRS by 2003, 20th Special Session, 141 )
“Taxpayer” means any person
liable for the tax imposed by this chapter.
(Added to NRS by 2003, 20th Special Session, 141 )
ADMINISTRATION
The Department shall:
1. Administer and enforce the provisions of this chapter, and may
adopt such regulations as it deems appropriate for those purposes.
2. Deposit all taxes, interest and penalties it receives pursuant
to this chapter in the State Treasury for credit to the State General
Fund.
(Added to NRS by 2003, 20th Special Session, 141 )
1. Each person responsible for maintaining the records of a
taxpayer shall:
(a) Keep such records as may be necessary to determine the amount
of the liability of the taxpayer pursuant to the provisions of this
chapter;
(b) Preserve those records for 4 years or until any litigation or
prosecution pursuant to this chapter is finally determined, whichever is
longer; and
(c) Make the records available for inspection by the Department
upon demand at reasonable times during regular business hours.
2. The Department may by regulation specify the types of records
which must be kept to determine the amount of the liability of a taxpayer
pursuant to the provisions of this chapter.
3. Any person who violates the provisions of subsection 1 is
guilty of a misdemeanor.
(Added to NRS by 2003, 20th Special Session, 141 )
1. To verify the accuracy of any return filed or, if no return is
filed by a taxpayer, to determine the amount required to be paid, the
Department, or any person authorized in writing by the Department, may
examine the books, papers and records of any person who may be liable for
the tax imposed by this chapter.
2. Any person who may be liable for the tax imposed by this
chapter and who keeps outside of this State any books, papers and records
relating thereto shall pay to the Department an amount equal to the
allowance provided for state officers and employees generally while
traveling outside of the State for each day or fraction thereof during
which an employee of the Department is engaged in examining those
documents, plus any other actual expenses incurred by the employee while
he is absent from his regular place of employment to examine those
documents.
(Added to NRS by 2003, 20th Special Session, 141 )
The Executive Director may request
from any other governmental agency or officer such information as he
deems necessary to carry out the provisions of this chapter. If the
Executive Director obtains any confidential information pursuant to such
a request, he shall maintain the confidentiality of that information in
the same manner and to the same extent as provided by law for the agency
or officer from whom the information was obtained.
(Added to NRS by 2003, 20th Special Session, 142 )
1. Except as otherwise provided in this section and NRS 360.250
, the records and files of the
Department concerning the administration of this chapter are confidential
and privileged. The Department, and any employee engaged in the
administration of this chapter or charged with the custody of any such
records or files, shall not disclose any information obtained from the
Department’s records or files or from any examination, investigation or
hearing authorized by the provisions of this chapter. Neither the
Department nor any employee of the Department may be required to produce
any of the records, files and information for the inspection of any
person or for use in any action or proceeding.
2. The records and files of the Department concerning the
administration of this chapter are not confidential and privileged in the
following cases:
(a) Testimony by a member or employee of the Department and
production of records, files and information on behalf of the Department
or a taxpayer in any action or proceeding pursuant to the provisions of
this chapter if that testimony or the records, files or information, or
the facts shown thereby, are directly involved in the action or
proceeding.
(b) Delivery to a taxpayer or his authorized representative of a
copy of any return or other document filed by the taxpayer pursuant to
this chapter.
(c) Publication of statistics so classified as to prevent the
identification of a particular person or document.
(d) Exchanges of information with the Internal Revenue Service in
accordance with compacts made and provided for in such cases.
(e) Disclosure in confidence to the Governor or his agent in the
exercise of the Governor’s general supervisory powers, or to any person
authorized to audit the accounts of the Department in pursuance of an
audit, or to the Attorney General or other legal representative of the
State in connection with an action or proceeding pursuant to this
chapter, or to any agency of this or any other state charged with the
administration or enforcement of laws relating to taxation.
(f) Exchanges of information pursuant to subsection 3.
3. The Commission may agree with any county fair and recreation
board or the governing body of any county, city or town for the
continuing exchange of information concerning taxpayers.
(Added to NRS by 2003, 20th Special Session, 142 )
IMPOSITION AND COLLECTION
[Effective through June 30, 2007.]
1. There is hereby imposed an excise tax on each employer at the
rate of 0.63 percent of the wages, as defined in NRS 612.190 , paid by the employer during a calendar
quarter with respect to employment in connection with the business
activities of the employer.
2. The tax imposed by this section:
(a) Does not apply to any person or other entity or any wages this
State is prohibited from taxing under the Constitution, laws or treaties
of the United States or the Nevada Constitution.
(b) Must not be deducted, in whole or in part, from any wages of
persons in the employment of the employer.
3. Each employer shall, on or before the last day of the month
immediately following each calendar quarter for which the employer is
required to pay a contribution pursuant to NRS 612.535 :
(a) File with the Department a return on a form prescribed by the
Department; and
(b) Remit to the Department any tax due pursuant to this chapter
for that calendar quarter.
(Added to NRS by 2003, 20th Special Session, 142 ; A 2003, 20th Special Session,
230 ; 2005, 2081 ; 2005, 22nd Special Session, 139 )
[Effective July 1, 2007.]
1. There is hereby imposed an excise tax on each employer at the
rate of 0.65 percent of the wages, as defined in NRS 612.190 , paid by the employer during a calendar
quarter with respect to employment in connection with the business
activities of the employer.
2. The tax imposed by this section:
(a) Does not apply to any person or other entity or any wages this
State is prohibited from taxing under the Constitution, laws or treaties
of the United States or the Nevada Constitution.
(b) Must not be deducted, in whole or in part, from any wages of
persons in the employment of the employer.
3. Each employer shall, on or before the last day of the month
immediately following each calendar quarter for which the employer is
required to pay a contribution pursuant to NRS 612.535 :
(a) File with the Department a return on a form prescribed by the
Department; and
(b) Remit to the Department any tax due pursuant to this chapter
for that calendar quarter.
(Added to NRS by 2003, 20th Special Session, 142 ; A 2003, 20th Special Session,
230 ; 2005, 2081 ; 2005, 22nd Special Session, 139 , effective July 1, 2007)
1. Except as otherwise provided in subsection 2, an employer may
deduct from the total amount of wages reported and upon which the excise
tax is imposed pursuant to NRS 363B.110 any amount authorized pursuant to this
section that is paid by the employer for health insurance or a health
benefit plan for its employees in the calendar quarter for which the tax
is paid. The amounts for which the deduction is allowed include:
(a) For a self-insured employer, all amounts paid during the
calendar quarter for claims, direct administrative services costs,
including such services provided by the employer, and any premiums paid
for individual or aggregate stop-loss insurance coverage. An employer is
not authorized to deduct the costs of a program of self-insurance unless
the program is a qualified employee welfare benefit plan pursuant to the
Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.
(b) The premiums for a policy of health insurance or reinsurance
for a health benefit plan for employees.
(c) Any amounts which are:
(1) Paid by an employer to a Taft-Hartley trust which:
(I) Is formed pursuant to 29 U.S.C. § 186(c)(5); and
(II) Qualifies as an employee welfare benefit plan; and
(2) Considered by the Internal Revenue Service to be fully
tax deductible pursuant to the provisions of the Internal Revenue Code.
(d) Such other similar payments for health care or insurance for
health care for employees as are authorized by the Department.
2. An employer may not deduct from the wages upon which the excise
tax is imposed pursuant to NRS 363B.110 :
(a) Amounts paid for health care or premiums paid for insurance for
an industrial injury or occupational disease for which coverage is
required pursuant to chapters 616A to 616D
, inclusive, or 617 of NRS; or
(b) Any payments made by employees for health care or health
insurance or amounts deducted from the wages of employees for such health
care or insurance.
3. If the amount of the deduction allowed pursuant to this section
to an employer for a calendar quarter exceeds the amount of reported
wages for that calendar quarter, the excess amount of that deduction may
be carried forward to the following calendar quarter until the deduction
is exhausted. An employer claiming the deduction allowed pursuant to this
section shall, upon the request of the Department, explain the amount
claimed to the satisfaction of the Department and provide the Department
with such documentation as the Department deems appropriate for that
purpose.
4. As used in this section:
(a) “Claims” means claims for those categories of health care
expenses that are generally deductible by employees on their individual
federal income tax returns pursuant to the provisions of 26 U.S.C. § 213
and any federal regulations relating thereto, if those expenses had been
borne directly by those employees.
(b) “Direct administrative services costs” means, if borne directly
by a self-insured employer and reasonably allocated to the direct
administration of claims:
(1) Payments for medical or office supplies that will be
consumed in the course of the provision of medical care or the direct
administration of claims;
(2) Payments to third-party administrators or independent
contractors for the provision of medical care or the direct
administration of claims;
(3) Rent and utility payments for the maintenance of medical
or office space used for the provision of medical care or the direct
administration of claims;
(4) Payments for the maintenance, repair and upkeep of
medical or office space used for the provision of medical care or the
direct administration of claims;
(5) Salaries and wages paid to medical, clerical and
administrative staff and other personnel employed to provide medical care
or directly to administer claims; and
(6) The depreciation of property other than medical or
office supplies, used for the provision of medical care or the direct
administration of claims.
(c) “Employee welfare benefit plan” has the meaning ascribed to it
in 29 U.S.C. § 1002.
(d) “Employees” means employees whose wages are included within the
measure of the excise tax imposed upon an employer by NRS 363B.110 , and their spouses, children and other
dependents who qualify for coverage under the terms of the health
insurance or health benefit plan provided by that employer.
(e) “Health benefit plan” means a health benefit plan that covers
only those categories of health care expenses that are generally
deductible by employees on their individual federal income tax returns
pursuant to the provisions of 26 U.S.C. § 213 and any federal regulations
relating thereto, if those expenses had been borne directly by those
employees.
(f) “Self-insured employer” means an employer that provides a
program of self-insurance for its employees.
(Added to NRS by 2005, 22nd Special Session, 137 )
1. An employer that qualifies pursuant to the provisions of NRS
360.750 is entitled to an exemption of
50 percent of the amount of tax otherwise due pursuant to NRS 363B.110
during the first 4 years of its
operation.
2. If a partial abatement from the taxes otherwise due pursuant to
NRS 363B.110 is approved by the
Commission on Economic Development pursuant to NRS 360.750 , the partial abatement must be administered
and carried out in the manner set forth in NRS 360.750 .
(Added to NRS by 2003, 20th Special Session, 144 )
Upon written application made before the
date on which payment must be made, the Department may for good cause
extend by 30 days the time within which a taxpayer is required to pay the
tax imposed by this chapter. If the tax is paid during the period of
extension, no penalty or late charge may be imposed for failure to pay at
the time required, but the taxpayer shall pay interest at the rate of 1
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
.
(Added to NRS by 2003, 20th Special Session, 144 )
OVERPAYMENTS AND REFUNDS
If the Department determines that any tax, 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 excess of the amount legally due and the person from
whom it was collected or by whom it was paid. If approved by the State
Board of Examiners, the excess amount collected or paid must be credited
on any amounts then due from the person under this chapter, and the
balance refunded to the person or his successors in interest.
(Added to NRS by 2003, 20th Special Session, 144 )
1. Except as otherwise provided in NRS 360.235 and 360.395 :
(a) No refund may be allowed unless a claim for it is filed with
the Department within 3 years after the last day of the month following
the calendar quarter for which the overpayment was made.
(b) No credit may be allowed after the expiration of the period
specified for filing claims for refund unless a claim for credit is filed
with the Department within that period.
2. Each claim must be in writing and must state the specific
grounds upon which the claim is founded.
3. Failure to file a claim within the time prescribed in this
chapter constitutes a waiver of any demand against the State on account
of overpayment.
4. Within 30 days after rejecting any claim in whole or in part,
the Department shall serve notice of its action on the claimant in the
manner prescribed for service of notice of a deficiency determination.
(Added to NRS by 2003, 20th Special Session, 144 )
1. Except as otherwise provided in this section and NRS 360.320
, interest must be paid upon any
overpayment of any amount of the taxes imposed by this chapter at the
rate of 0.5 percent per month, or fraction thereof, from the last day of
the calendar month following the calendar quarter for which the
overpayment was made. No refund or credit may be made of any interest
imposed upon the person making the overpayment with respect to the amount
being refunded or credited.
2. The interest must be paid:
(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 he
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.
(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.
3. If the Department determines that any overpayment has been made
intentionally or by reason of carelessness, the Department shall not
allow any interest on the overpayment.
(Added to NRS by 2003, 20th Special Session, 144 )
1. No injunction, writ of mandate or other legal or equitable
process may issue in any suit, action or proceeding in any court against
this state or against any officer of the State to prevent or enjoin the
collection under this chapter of the tax imposed by this chapter or any
amount of tax, penalty or interest required to be collected.
2. No suit or proceeding may be maintained in any court for the
recovery of any amount alleged to have been erroneously or illegally
determined or collected unless a claim for refund or credit has been
filed.
(Added to NRS by 2003, 20th Special Session, 145 )
1. Within 90 days after a final decision upon a claim filed
pursuant to this chapter is rendered by the 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 principal place of
business or a county in which any relevant proceedings were 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.
2. Failure to bring an action within the time specified
constitutes a waiver of any demand against the State on account of
alleged overpayments.
(Added to NRS by 2003, 20th Special Session, 145 )
1. If the Department fails to mail notice of action on a claim
within 6 months after the claim is filed, the claimant may consider the
claim disallowed and file an appeal with the Commission within 30 days
after the last day of the 6-month period. If the claimant is aggrieved by
the decision of the Commission rendered on appeal, the claimant may,
within 90 days after the decision is rendered, bring an action against
the Department on the grounds set forth in the claim for the recovery of
the whole or any part of the amount claimed as an overpayment.
2. If judgment is rendered for the plaintiff, the amount of the
judgment must first be credited towards any tax due from the plaintiff.
3. The balance of the judgment must be refunded to the plaintiff.
(Added to NRS by 2003, 20th Special Session, 145 )
In any judgment, interest must be allowed at the
rate of 6 percent per annum upon the amount found to have been illegally
collected from the date of payment of the amount to the date of allowance
of credit on account of the judgment, or to a date preceding the date of
the refund warrant by not more than 30 days. The date must be determined
by the Department.
(Added to NRS by 2003, 20th Special Session, 145 )
A judgment may not be rendered
in favor of the plaintiff in any action brought against the Department to
recover any amount paid when the action is brought by or in the name of
an assignee of the person paying the amount or by any person other than
the person who paid the amount.
(Added to NRS by 2003, 20th Special Session, 145 )
1. The Department may recover a refund or any part thereof which
is erroneously made and any credit or part thereof which is erroneously
allowed in an action brought in a court of competent jurisdiction in
Carson City or Clark County in the name of the State of Nevada.
2. The action must be tried in Carson City or Clark County unless
the court, with the consent of the Attorney General, orders a change of
place of trial.
3. The Attorney General shall prosecute the action, and the
provisions of NRS, the Nevada Rules of Civil Procedure and the Nevada
Rules of Appellate Procedure relating to service of summons, pleadings,
proofs, trials and appeals are applicable to the proceedings.
(Added to NRS by 2003, 20th Special Session, 146 )
1. If any amount in excess of $25 has been illegally determined,
either by the Department or by the person filing the return, the
Department shall certify this fact to the State Board of Examiners, and
the latter shall authorize the cancellation of the amount upon the
records of the Department.
2. If an amount not exceeding $25 has been illegally determined,
either by the Department or by the person filing the return, the
Department, without certifying this fact to the State Board of Examiners,
shall authorize the cancellation of the amount upon the records of the
Department.
(Added to NRS by 2003, 20th Special Session, 146 )
MISCELLANEOUS PROVISIONS
1. A person shall not:
(a) Make, cause to be made or permit to be made any false or
fraudulent return or declaration or false statement in any return or
declaration with intent to defraud the State or to evade payment of the
tax or any part of the tax imposed by this chapter.
(b) Make, cause to be made or permit to be made any false entry in
books, records or accounts with intent to defraud the State or to evade
the payment of the tax or any part of the tax imposed by this chapter.
(c) Keep, cause to be kept or permit to be kept more than one set
of books, records or accounts with intent to defraud the State or to
evade the payment of the tax or any part of the tax imposed by this
chapter.
2. Any person who violates the provisions of subsection 1 is
guilty of a gross misdemeanor.
(Added to NRS by 2003, 20th Special Session, 146 )
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 any remedy to the exclusion of any other remedy
for which provision is made in this chapter.
(Added to NRS by 2003, 20th Special Session, 144 )
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