USA Statutes : nevada
Title : Title 32 - REVENUE AND TAXATION
Chapter : CHAPTER 370 - TOBACCO: LICENSES AND TAXES; SUPERVISION OF MANUFACTURERS
 As used in NRS 370.001 to 370.430 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 370.005 to 370.055
, inclusive, have the meanings ascribed
to them in those sections.

      (Added to NRS by 1977, 782; A 1983, 708; 1989, 1517; 1999, 1667
; 2005, 1192 )
 “Basic cost of
cigarettes” means the manufacturer’s invoice cost of cigarettes by carton
to the wholesale dealer in the quantity last purchased, less all
allowances in an amount not exceeding 2.5 percent of the invoice cost of
cigarettes by carton, plus the full value of any cigarette revenue stamps
that are affixed to the packages, packets or containers of cigarettes, if
not included in the invoice cost of cigarettes by carton.

      (Added to NRS by 1989, 1514; A 1993, 2473)
 “Cigarette” means all rolled
tobacco or substitutes therefor wrapped in paper or any substitute other
than tobacco, irrespective of size or shape and whether or not the
tobacco is flavored, adulterated or mixed with any other ingredient.

      [Part 1:192:1947; A 1951, 124]—(NRS A 1977, 782; 1989, 1517)
 “Cigarette package”
means the individual pack, box or other container that contains a
cigarette. The term does not include a container that itself contains
other containers, such as a carton of cigarettes.

      (Added to NRS by 2005, 1185 )

 “Cigarette vending machine operator” means any retail dealer licensed to
sell only Nevada stamped cigarettes by means of coin-operated machines
anywhere in Nevada.

      (Added to NRS by 1965, 1245; A 1977, 782; 2005, 1192 )
 “Consumer” means any person who
comes into possession of cigarettes in this state as a final user for any
purpose other than offering them for sale as a wholesale or retail dealer.

      [Part 1:192:1947; A 1951, 124]—(NRS A 1973, 1006; 1977, 782)
 “Contraband
cigarettes” means any:

      1.  Counterfeit cigarettes; or

      2.  Cigarettes:

      (a) Exported from or imported into this State, or mailed, shipped,
delivered, sold, exchanged, transported, distributed or held for
distribution within the borders of this State by any person in violation
of any of the provisions of this chapter; or

      (b) In any way held in the possession or constructive possession of
any person not authorized under this chapter to possess or constructively
possess the cigarettes.

      (Added to NRS by 1973, 1005; A 1977, 782; 2005, 1192 )
 “Cost to the
wholesale dealer” means the basic cost of cigarettes to the wholesale
dealer, except as otherwise provided in this chapter.

      (Added to NRS by 1989, 1514; A 1993, 2473)
 “Counterfeit
cigarettes” means any cigarettes or cigarette packages:

      1.  Bearing false manufacturing labels;

      2.  Bearing counterfeit stamps; or

      3.  Meeting any combination of the descriptions contained in
subsections 1 and 2.

      (Added to NRS by 2005, 1185 )
 “Counterfeit stamp”
means any stamp that:

      1.  Falsely depicts a stamp approved by the Department or a tax
stamp authorized pursuant to the laws of any other state governing the
taxation of cigarettes; or

      2.  Was not sold by the Department or its agents or pursuant to the
laws of any other state governing the taxation of cigarettes.

      (Added to NRS by 2005, 1185 )


      1.  “Delivery sale” means any sale of cigarettes, whether the
seller is located within or outside of the borders of this State, to a
consumer in this State for which:

      (a) The purchaser submits the order for the sale by means of a
telephonic or other method of voice transmission, the mail or any other
delivery service, or the Internet or any other on-line service; or

      (b) The cigarettes are delivered by mail or the use of another
delivery service.

      2.  For the purpose of this section, any sale of cigarettes to a
natural person in this State who does not hold a current license as a
wholesale or retail dealer constitutes a sale to a consumer.

      (Added to NRS by 2005, 1185 )
 “Delivery service” means
any person engaged in the commercial delivery of letters, packages or
other containers.

      (Added to NRS by 2005, 1185 )
 “License” means a license issued
pursuant to NRS 370.001 to 370.430
, inclusive, that authorizes the holder
to conduct business as a manufacturer or a wholesale or retail dealer.

      (Added to NRS by 2005, 1185 )
 “Licensee” means the holder of a
license.

      (Added to NRS by 2005, 1185 )
 “Manufacturer” means any
person who:

      1.  Manufactures, fabricates, assembles, processes or labels a
finished cigarette; or

      2.  Imports, whether directly or indirectly, a finished cigarette
into the United States for sale or distribution in this State.

      (Added to NRS by 2005, 1185 )
 “Place of business”
means, for a person engaged in business as:

      1.  A wholesale dealer, any location from which cigarettes are
distributed or where cigarettes are warehoused, stored or affixed with
stamps; or

      2.  A retail dealer, any store, stand, outlet or other location
through which cigarettes are distributed or sold to a consumer.

      (Added to NRS by 2005, 1185 )
 “Retail dealer” means any
person, whether located within or outside of the borders of this State,
who sells or distributes cigarettes to a consumer within the State.

      (Added to NRS by 1973, 1005; A 1977, 783; 2005, 1192 )
 “Sale” or “to sell”
includes any of the following:

      1.  To exchange, barter, possess or traffic in;

      2.  To solicit or receive an order for;

      3.  To keep or expose for sale;

      4.  To deliver for value;

      5.  To peddle;

      6.  To possess with intent to sell;

      7.  To transfer to anyone for sale or resale;

      8.  To possess or transport in contravention of the provisions of
NRS 370.001 to 370.430 , inclusive;

      9.  To traffic in for any consideration, promised or obtained
directly or indirectly; or

      10.  To procure or allow to be procured for any reason.

      (Added to NRS by 1965, 1245; A 1977, 783; 1983, 708)
 “Sale at wholesale”
means a bona fide transfer of title to cigarettes for a valuable
consideration, made in the ordinary course of trade or in the usual
conduct of the wholesale dealer’s business, to a retail dealer for the
purpose of resale.

      (Added to NRS by 1989, 1514)
 “Secretary” means the Secretary
of the United States Department of the Treasury.

      (Added to NRS by 2005, 1185 )
 “Shipping container”
means a container in which cigarettes are shipped in connection with a
delivery sale.

      (Added to NRS by 2005, 1186 )
 “Shipping documents”
means bills of lading, airbills or any other documents used to evidence
an undertaking by a delivery service to deliver letters, packages or
other containers.

      (Added to NRS by 2005, 1186 )
 “Stamp” means the indicia required
to be placed on a cigarette package that evidences payment of the taxes
on cigarettes imposed pursuant to NRS 370.0751 and 370.165 .

      (Added to NRS by 2005, 1186 )
 “Wholesale dealer” means:

      1.  Any person, whether located within or outside of the borders of
this State, who:

      (a) Brings, sends, or causes to be brought or sent into this State
any unstamped cigarettes purchased from the manufacturer or another
wholesale dealer; and

      (b) Stores, sells or otherwise disposes of those cigarettes within
the State.

      2.  Any person who manufactures or produces cigarettes within this
State and who sells or distributes them within the State.

      3.  Any person, whether located within or outside of the borders of
this State, who acquires cigarettes solely for the purpose of bona fide
resale to retail dealers in this State or to other persons in this State
for the purpose of resale only.

      (Added to NRS by 1965, 1245; A 1977, 783; 1989, 1517; 2005, 1192
)

 [Replaced in revision by NRS 370.413 .]


 The provisions of NRS 370.001 to 370.430 ,
inclusive, do not apply to:

      1.  Common carriers while engaged in interstate commerce which sell
or furnish cigarettes on their trains, buses or airplanes;

      2.  A person entering this state with a quantity of cigarettes for
household or personal use which is exempt from federal import duty; and

      3.  A duty-free sales enterprise as defined in 19 U.S.C. §
1555(b)(8)(D) that:

      (a) Operates pursuant to the provisions of 19 U.S.C. § 1555(b); and

      (b) To the extent it sells cigarettes, only sells cigarettes that
are duty-free merchandise as defined in 19 U.S.C. § 1555(b)(8)(E).

      [17:192:1947; 1943 NCL § 6528.17] + [5:178:1953]—(NRS A 1983, 709;
1999, 1667 ; 2001, 2135 )


      1.  The governing body of an Indian reservation or Indian colony
may impose an excise tax on any cigarettes sold on the reservation or
colony.

      2.  If an excise tax is imposed, the governing body may establish
procedures for collecting the excise tax from any cigarette dealer
authorized to do business on the reservation or colony.

      (Added to NRS by 1977, 782)
 All
taxes paid under the provisions of this chapter are direct taxes upon the
consumer and are precollected for convenience only. Taxes paid by persons
other than the consumer are advances, and shall be added to the selling
price of the cigarettes.

      (Added to NRS by 1977, 782)

Licenses; Tax; Administration


      1.  A person shall not engage in business as a wholesale dealer in
the State of Nevada unless he first secures a license to engage in that
activity from the Department.

      2.  A person shall not engage in business as a retail dealer in the
State of Nevada unless he first secures a license to engage in that
activity from the Department.

      3.  A manufacturer shall not sell any cigarettes to a wholesale
dealer in the State of Nevada unless he first secures a license to engage
in that activity from the Department.

      4.  A separate license is required to engage in each of the
activities described in this section.

      [2:192:1947; 1943 NCL § 6528.02]—(NRS A 1973, 1006; 1975, 1714;
1977, 783; 2005, 1193 )
 The Department shall create and maintain on its Internet website
and otherwise make available for public inspection a list of all:

      1.  Currently valid licenses and the identity of the licensees
holding those licenses; and

      2.  Indian tribes on whose reservations or colonies cigarettes or
other products made from tobacco are sold and, pursuant to NRS 370.515
, from which the Department does not
collect the tax imposed by this chapter on such cigarettes or other
products made from tobacco sold on the reservations or colonies.

Ê The Department shall update the list at least once each month.

      (Added to NRS by 2005, 1186 )


      1.  Each applicant for a wholesale dealer’s license must, and each
person licensed as a wholesale dealer shall keep on hand at all times
cigarettes of a wholesale value of at least $10,000.

      2.  The provisions of this section do not apply to any person who
was a wholesale dealer on June 30, 1973.

      [Part 4:192:1947; 1943 NCL § 6528.04]—(NRS A 1973, 1006; 1977, 784;
1991, 2280)


      1.  No license may be issued, maintained or renewed:

      (a) If the applicant for the license or any combination of persons
directly or indirectly owning, in the aggregate, more than 10 percent of
the ownership interests if the applicant:

             (1) Owes $500 or more in delinquent cigarette taxes;

             (2) Had a license as a manufacturer or as a wholesale or
retail dealer revoked by the Department within the past 2 years;

             (3) Has been convicted of a crime relating to the sale of
stolen or counterfeit cigarettes or stamps or the receipt of stolen
cigarettes;

             (4) Is a manufacturer who has:

                   (I) Imported any cigarettes into the United States in
violation of 19 U.S.C. § 1681a; or

                   (II) Imported or manufactured any cigarettes that do
not fully comply with the Federal Cigarette Labeling and Advertising Act,
15 U.S.C. §§ 1331 et seq.; or

             (5) Is a nonparticipating manufacturer who is not in full
compliance with subsection 2 of NRS 370A.140 .

      (b) Unless the applicant for the license certifies in writing,
under penalty of perjury, that the applicant will comply fully with the
provisions of chapter 370A of NRS.

      2.  As used in this section:

      (a) “Manufacturer of tobacco products” has the meaning ascribed to
it in NRS 370A.060 .

      (b) “Nonparticipating manufacturer” means any manufacturer of
tobacco products that is not a participating manufacturer.

      (c) “Participating manufacturer” has the meaning ascribed to it in
NRS 370A.080 .

      (Added to NRS by 2005, 1186 )
 An application for a license
must:

      1.  Be made to the Department on forms prescribed by the Department.

      2.  Include the name and address of the applicant. If the applicant
is a firm, association or partnership, the application must include the
names and addresses of each of its members. If the applicant is a
corporation, the application must include the names and addresses of the
president, vice president, secretary and managing officer or officers.

      3.  Specify the location, by street and number, of the principal
place of business of the applicant and of the premises for which the
license is sought.

      4.  Specify any other information the Department may require.

      5.  Except as otherwise provided in NRS 370.001 to 370.430 ,
inclusive, be accompanied by the required license fee.

      6.  Be accompanied by a certified copy of the certificate required
by NRS 602.010 or any renewal
certificate required by NRS 602.035 .

      [Part 4:192:1947; 1943 NCL § 6528.04]—(NRS A 1971, 1165; 1975,
1714; 1977, 784; 2001, 812 ; 2005, 1193 )
 The Department may issue a wholesale
cigarette dealer’s license without payment of fees to any applicant who
is authorized to do business on an Indian reservation or Indian colony or
upon a military or other federal reservation.

      [Part 10:192:1947; A 1951, 124]—(NRS A 1975, 1714; 1977, 784)
 Each cigarette dealer’s license
issued under this chapter shall set forth:

      1.  The name of the person to whom it is issued. If the license is
issued under a fictitious name, the license shall also set forth the name
of each of the persons conducting the business under the fictitious name.

      2.  The location, by street and number, of the premises for which
the license is issued.

      [5:192:1947; 1943 NCL § 6528.05]—NRS A 1977, 784)
 Each holder
of a cigarette dealer’s license shall:

      1.  Sign his license or cause an authorized representative to sign
it.

      2.  Post the license in a conspicuous place in the premises for
which it was issued.

Ê Licenses issued under the provisions of this chapter are
nontransferable, except that upon prior written notice to the Department
the location of the premises for which it was issued may be changed.

      [6:192:1947; 1943 NCL § 6528.06]—(NRS A 1965, 301; 1971, 1165;
1975, 1714; 1977, 784)


      1.  A current license as a:

      (a) Manufacturer authorizes the holder thereof to sell cigarettes
anywhere within the borders of this State to a wholesale dealer who holds
a current license.

      (b) Wholesale dealer authorizes the holder thereof to:

             (1) Purchase cigarettes from any manufacturer or wholesale
dealer who holds a current license; or

             (2) Sell cigarettes anywhere within the borders of this
State to any Indian tribe listed by the Department pursuant to NRS
370.085 or any wholesale or retail
dealer who holds a current license.

      (c) Retail dealer authorizes the holder thereof to:

             (1) Purchase cigarettes from any wholesale dealer who holds
a current license; or

             (2) Sell cigarettes anywhere within the borders of this
State to any consumer.

      2.  No person who holds a current license as a:

      (a) Manufacturer may sell cigarettes within the borders of this
State to any person other than a wholesale dealer who holds a current
license.

      (b) Wholesale or retail dealer may purchase cigarettes for sale
within the borders of this State or sell cigarettes within the borders of
this State except as authorized pursuant to subsection 1.

      [Part 9:192:1947; A 1949, 598; 1943 NCL § 6528.09]—(NRS A 1965,
1246; 2005, 1194 )
[Effective through June 30, 2007.]

      1.  The Department shall not charge license fees for a retail
cigarette dealer’s license.

      2.  An annual license fee of $150 shall be charged for each
wholesale cigarette dealer’s license. If any license, other than the
renewal of a delinquent license, is issued at any time during the year
other than on January 1, the licensee shall pay a proportionate part of
the annual fee for the remainder of the year, but not less than 25
percent of the annual license fee.

      3.  Wholesale cigarette dealer’s license fees are due and payable
on January 1 of each year. If the annual license fee is not paid by
January 15, the license is cancelled automatically.

      4.  A wholesale cigarette dealer’s license which is cancelled for
nonpayment of the annual license fee may be renewed at any time by the
payment of the fee plus a 5 percent penalty thereon.

      [7:192:1947; 1943 NCL § 6528.07]—(NRS A 1977, 785)

[Effective July 1, 2007.]

      1.  Each license issued by the Department is valid only for the
calendar year for which it is issued, and must be renewed annually.

      2.  The Department shall not charge any license fees for a
manufacturer’s or retail dealer’s license.

      3.  An annual license fee of $150 must be charged for each
wholesale dealer’s license. If such a license is issued at any time
during the year other than on January 1, except for the renewal of a
delinquent license pursuant to subsection 5, the licensee shall pay a
proportionate part of the annual fee for the remainder of the year, but
not less than 25 percent of the annual license fee.

      4.  The fees for a wholesale dealer’s license are due and payable
on January 1 of each year. If the annual license fee is not paid by
January 15, the license is cancelled automatically.

      5.  A wholesale dealer’s license which is cancelled for nonpayment
of the annual license fee may be renewed at any time by the payment of
the fee plus a 5 percent penalty thereon.

      [7:192:1947; 1943 NCL § 6528.07]—(NRS A 1977, 785; 2005, 1194
, effective July 1, 2007)


      1.  Except as otherwise provided in this section, each licensed
wholesale cigarette dealer shall furnish a bond executed by him as
principal, and by a corporation qualified under the laws of this state as
surety, payable to the State of Nevada and conditioned upon the payment
of all excise taxes required to be precollected by him under the
provisions of this chapter. Each bond must be in a principal sum equal to
the largest amount of tax precollected by the wholesale cigarette dealer
in any quarter of the preceding year, or if the information to establish
that amount is not available, then in a sum required from a licensee
operating under conditions deemed comparable by the Department. No bond
may be for less than $1,000. When cash or a savings certificate,
certificate of deposit or investment certificate is used, the amount must
be rounded up to the next larger integral multiple of $100.

      2.  Except as otherwise provided in this section, each licensed
wholesale cigarette dealer who wishes to defer payment on the purchase of
revenue stamps or metered machine impressions shall furnish a bond
executed by him as principal, and by a corporation qualified under the
laws of this state as surety, payable to the State of Nevada and
conditioned upon the payment of all deferred payments for revenue stamps
and metered machine impressions. Each bond must be in a principal sum
equal to the maximum amount of revenue stamps or metered machine
impressions which the wholesale dealer may have unpaid at any time. No
bond may be for less than $1,000. When cash or a savings certificate,
certificate of deposit or investment certificate is used, the amount must
be rounded up to the next larger integral multiple of $100.

      3.  In lieu of a bond a licensed wholesale cigarette dealer may
deposit with the Department, under such terms as the Department may
prescribe, a like amount of lawful money of the United States or any
other form of security authorized by NRS 100.065 . If security is provided in the form of a
savings certificate, certificate of deposit or investment certificate,
the certificate must state that the amount is unavailable for withdrawal
except upon order of the Department. The Department shall deposit all
cash and bonds of the United States or of the State of Nevada received
pursuant to this subsection with the State Treasurer as custodian.

      4.  Upon application and a satisfactory showing, the Department may
increase or decrease the amount of a bond required by subsection 1 or 2,
based on the amount of excise tax precollected or payments deferred,
respectively, by the wholesale cigarette dealer.

      5.  The Department may waive the requirement of the bond required
by subsection 1 or 2, whenever a licensed wholesale cigarette dealer has
maintained a satisfactory record of payment of excise taxes or deferred
payments, respectively, for a period of 5 consecutive years.

      (Added to NRS by 1961, 676; A 1967, 855; 1975, 1714; 1977, 785;
1989, 1072, 2184, 2190)
 This chapter does not prohibit any county, city or town in the
State of Nevada from requiring licenses before a person engages in
business as a wholesale dealer or retail dealer in cigarettes.

      [Part 9:192:1947; A 1949, 598; 1943 NCL § 6528.09]—(NRS A 1973,
1006)
 There is hereby
levied a tax upon the purchase or possession of cigarettes by a consumer
in the State of Nevada at the rate of 40 mills per cigarette. The tax may
be represented and precollected by the affixing of a revenue stamp or
other approved evidence of payment to each package, packet or container
in which cigarettes are sold. The tax must be precollected by the
wholesale or retail dealer, and must be recovered from the consumer by
adding the amount of the tax to the selling price. Each person who sells
cigarettes at retail shall prominently display on his premises a notice
that the tax is included in the selling price and is payable under the
provisions of this chapter.

      (Added to NRS by 1977, 782; A 1985, 470; 1987, 1789; 1989, 2185,
2191; 1991, 287; 2003, 20th Special Session, 169 )
 Except as otherwise provided in this chapter,
it is unlawful for any person to give, sell or offer to give or sell any
cigarettes in this state unless there is affixed to each of the packages,
packets or containers an adhesive Nevada cigarette revenue stamp or a
similar stamp affixed by a metered stamping machine approved by and
registered with the Department for the amount of the tax on all of the
cigarettes contained in the package or other container.

      [Part 8:192:1947; A 1949, 598; 1951, 124; 1953, 142]—(NRS A 1959,
116; 1961, 675; 1969, 1131; 1975, 1715; 1983, 709; 1985, 470)


      1.  Except as otherwise provided in subsection 2 or a regulation of
the Department:

      (a) No person, other than a wholesale dealer that receives
unstamped cigarette packages directly from a person who holds a current
permit to engage in business as a manufacturer or importer of cigarettes
issued pursuant to 26 U.S.C. § 5713, may possess an unstamped cigarette
package.

      (b) Any person who ships unstamped cigarette packages into this
State other than to a wholesale dealer who holds a current license shall
first file with the Department a notice of that shipment.

      2.  Subsection 1 does not apply to any common or contract carrier
who is transporting cigarettes in compliance with the provisions of NRS
370.295 .

      (Added to NRS by 2005, 1186 )


      1.  The Department shall:

      (a) Design suitable stamps for the purpose of this chapter which
meet the requirements of this section; and

      (b) From time to time, have as many revenue stamps printed as may
be required.

      2.  Each stamp must be designed to permit the identification of the
dealer who affixed the stamp to a package or other container of
cigarettes. The dealer must be identified by a number or other mark on
the stamp. The Department shall maintain, for not less than 3 years after
the date the stamp is provided to the dealer, a record of the information
necessary to identify the dealer by examining the stamp. Upon request,
the Department shall provide to any person the information maintained
pursuant to this subsection.

      3.  The use of a metered stamping machine approved by and
registered with the Department shall be subject to such regulations as
prescribed by the Department.

      [3:192:1947; A 1951, 124] + [Part 8:192:1947; A 1949, 598; 1951,
124; 1953, 142] + [Part 10:192:1947; A 1951, 124]—(NRS A 1971, 1165;
1975, 1715; 2001, 2135 )


      1.  The Department may sell Nevada cigarette revenue stamps to a
licensed dealer. As payment for the stamps, the Department shall deduct
from the excise tax collected from the dealer the actual cost incurred by
the Department for the stamps and for making the sale.

      2.  Payment for the revenue stamps or metered machine impressions
must be made at the time of purchase unless the wholesale dealer has been
authorized to defer payments by the Department. A wholesale dealer may
apply to the Department for authorization to defer payments for revenue
stamps or metered machine impressions at any time.

      3.  The Department may provide by regulation for payment of the tax
by manufacturers without the use of stamps on gifts or samples sent into
Nevada when plainly marked “Tax Paid.”

      [Part 8:192:1947; A 1949, 598; 1951, 124; 1953, 142] + [Part
10:192:1947; A 1951, 124] + [10.1:192:1947; added 1951, 124]—(NRS A 1971,
1165; 1975, 1715; 1977, 785; 1983, 320; 1989, 2185)
 A
wholesale dealer may apply to the Department to fix the maximum amount of
revenue stamps or metered machine impressions which the wholesale dealer
may have unpaid at any time. Upon receipt of the application and the bond
or bonds required pursuant to NRS 370.155 , the Department shall fix an amount for the
wholesale dealer.

      (Added to NRS by 1989, 2184)


      1.  The amount owing for revenue stamps and metered machine
impressions for which payment was deferred in any calendar month is due
on or before the 25th day of the following calendar month. Payment must
be made by a remittance payable to the Department.

      2.  Upon request of the wholesale dealer for good cause shown, the
Department may grant an extension of the due date of any deferred payment
for a period not exceeding 5 days.

      3.  The Department may suspend without prior notice the privilege
to defer payment for the purchase of revenue stamps and metered machine
impressions or may reduce the maximum amount of revenue stamps or metered
machine impressions which the wholesale dealer may have unpaid at any
time if:

      (a) The wholesale dealer fails to pay for stamps or impressions at
the times required by subsection 1;

      (b) The bond or bonds required pursuant to NRS 370.155 are cancelled or become void, impaired or
unenforceable for any reason; or

      (c) The Department determines that any deferred payments are in
jeopardy of not being paid.

      (Added to NRS by 1989, 2184)


      1.  The Department is authorized to appoint the sheriff of any
county and officers of incorporated cities to act as its agents in the
sale of Nevada cigarette revenue stamps.

      2.  The sheriff and city officers shall:

      (a) Serve as such agent without additional compensation; and

      (b) On or before the last day of the month following the month in
which the sale of cigarette stamps occurred, make a return of all
receipts collected from sales of cigarette revenue stamps to the
Department, accompanied by a remittance payable to the order of the
Department.

      [Part 10:192:1947; A 1951, 124]—(NRS A 1957, 230; 1965, 301; 1971,
1166; 1975, 1716)


      1.  A wholesale dealer whose stamping facilities are located within
the borders of this State shall affix stamps to all applicable cigarette
packages received at those stamping facilities within 20 days after
receipt. A wholesale dealer may set aside, without affixing stamps, only
that part of the stock of the wholesale dealer that is identified for
sale or distribution outside of the borders of this State. A wholesale
dealer must identify any stock to be set aside pursuant to this
subsection within 20 days after the receipt of that stock.

      2.  A wholesale dealer may affix stamps only to cigarette packages
that the wholesale dealer has received directly from a person who holds a
current permit to engage in business as a manufacturer or importer of
cigarettes issued pursuant to 26 U.S.C. § 5713.

      3.  If a wholesale dealer maintains stocks of unstamped cigarette
packages as authorized pursuant to subsection 1, those unstamped
cigarette packages must be stored separately from stamped cigarette
packages and must not be transferred by the wholesale dealer to another
facility of the wholesale dealer within the borders of this State or to
any other person within the borders of this State.

      4.  A person shall not affix stamps to any cigarette packages
except upon the premises described in the license of a wholesale dealer
or upon other premises where authorized by regulation.

      [Part 8:192:1947; A 1949, 598; 1951, 124; 1953, 142]—(NRS A 1973,
1006; 1977, 786; 1993, 2473; 2005, 1194 )
 In the sale of any cigarette revenue stamps or any metered
machine settings to a licensed cigarette dealer, the Department and its
agents shall allow the purchaser a discount of 0.5 percent against the
amount of excise tax otherwise due for the services rendered in affixing
cigarette revenue stamps or metered machine impressions to the cigarette
packages.

      [12:192:1947; A 1949, 598; 1951, 124; 1955, 360]—(NRS A 1961, 676;
1971, 1166; 1975, 1716; 1977, 786; 1983, 320; 1991, 2293; 2003, 20th
Special Session, 19 )
 Upon the written
authorization of the State Board of Examiners, any spoiled or unusable
stamps in the possession of the Department shall be destroyed. The
written authorization of the State Board of Examiners shall set forth the
number, denomination and face value of the stamps.

      [18.1:192:1947; added 1951, 124]—(NRS A 1971, 1166; 1975, 1716)


      1.  The Department may adopt regulations establishing:

      (a) Reporting requirements for manufacturers and wholesale dealers;
and

      (b) Procedures for the electronic submission of reports required
pursuant to any reporting requirements established under paragraph (a).

      2.  Any regulations adopted pursuant to subsection 1 relating to
reporting requirements for manufacturers must provide for submission to
the Department periodic reports of:

      (a) The quantity of cigarette packages that were distributed or
shipped to another manufacturer or to a wholesale dealer within the
borders of this State during the reporting period, and the name and
address of each person to whom those products were distributed or shipped;

      (b) The quantity of cigarette packages that were distributed or
shipped to another facility of the same manufacturer within the borders
of this State during the reporting period; and

      (c) The quantity of cigarette packages that were distributed or
shipped within the borders of this State to Indian tribes or
instrumentalities of the Federal Government during the reporting period,
and the name and address of each person to whom those products were
distributed or shipped.

      3.  Any regulations adopted pursuant to subsection 1 relating to
reporting requirements for wholesale dealers must provide for submission
to the Department periodic reports of:

      (a) The inventory of stamped and unstamped cigarette packages held
by the wholesale dealer for sale or distribution within the borders of
this State on hand at the beginning of the reporting period;

      (b) The inventory of cigarette packages held by the wholesale
dealer for sale or distribution outside of the borders of this State on
hand at the beginning of the reporting period;

      (c) The quantity of stamped cigarette packages held for sale or
distribution within the borders of this State that were received by the
wholesale dealer from another person during the reporting period, and the
name and address of each person from whom those products were received;

      (d) The quantity of cigarette packages held for sale or
distribution outside of the borders of this State that were received by
the wholesale dealer from another person during the reporting period, and
the name and address of each person from whom those products were
received;

      (e) The quantity of cigarette packages to which Nevada stamps were
affixed that were distributed or shipped to another wholesale dealer or
to a retail dealer within the borders of this State during the reporting
period, and the name and address of each person to whom those products
were distributed or shipped;

      (f) The quantity of cigarette packages to which Nevada stamps were
affixed that were distributed or shipped to another facility of the same
wholesale dealer within the borders of this State during the reporting
period;

      (g) The quantity of stamped cigarette packages that were
distributed or shipped within the borders of this State to Indian tribes
or instrumentalities of the Federal Government during the reporting
period, and the name and address of each person to whom those products
were distributed or shipped;

      (h) The quantity of cigarette packages held for distribution
outside of the borders of this State that were distributed or shipped
outside of the borders of this State during the reporting period;

      (i) The inventory of stamped and unstamped cigarette packages held
for sale or distribution within the borders of this State on hand at the
end of the reporting period;

      (j) The inventory of cigarette packages held for sale or
distribution outside of the borders of this State on hand at the end of
the reporting period;

      (k) The number of each type of stamp on hand at the beginning of
the reporting period;

      (l) The number of each type of stamp purchased or received during
the reporting period;

      (m) The number of each type of stamp applied during the reporting
period; and

      (n) The number of each type of stamp on hand at the end of the
reporting period.

      4.  Any reports required by regulations adopted pursuant to
subsection 1 must be:

      (a) Submitted on forms provided by the Department; and

      (b) Provided separately for each of the facilities operated by the
manufacturer or wholesale dealer.

      5.  In each report required by regulations adopted pursuant to
subsection 1, the information required must be itemized so as to disclose
clearly:

      (a) The quantities of stamped and unstamped cigarettes to which the
report applies; and

      (b) The brand and style of cigarettes to which the report applies.

      6.  The reporting period for any reports required by regulations
adopted pursuant to subsection 1 must be for a duration of not less than
1 month and not more than 3 months.

      (Added to NRS by 2005, 1187 )


      1.  Each dealer authorized to purchase or affix cigarette revenue
stamps shall report to the Department:

      (a) The inventory of all cigarettes in his possession or control at
the close of business on the last day of each month.

      (b) The total value of all cigarette revenue stamps affixed by him
upon cigarette packages sold in or shipped into the State by him during
the preceding month.

      2.  The report must be made by the 25th day of the month following
shipments upon forms to be provided by the Department.

      3.  The dealer may be allowed 5 additional days to file his report,
if he makes prior written application to the Department and the
Department finds good cause for extension.

      4.  If, during the preceding month, the dealer affixed cigarette
revenue stamps upon cigarette packages imported into the United States,
he shall file with the report a copy of each certificate submitted
pursuant to 19 U.S.C. § 1681a(c) with regard to the cigarette packages.

      [Part 15:192:1947; A 1949, 598; 1943 NCL § 6528.15]—(NRS A 1971,
1166; 1975, 1716; 1977, 786; 1991, 2280; 2001, 2136 )


      1.  If any dealer in cigarettes upon which a precollected or
advance tax is required to be paid fails to file any report required
pursuant to NRS 370.240 with the
Department or its agents on or before the date due, the Department may
suspend his license until the report is received and found to be correct.

      2.  The Department may temporarily suspend or permanently revoke
the license of any licensee for violating, or causing or permitting to be
violated, any of the provisions of NRS 370.001 to 370.430 ,
inclusive, or any regulations adopted for the administration or
enforcement of any of those provisions.

      3.  The Department shall permanently revoke the license of any
licensee convicted of any felony pursuant to NRS 370.405 .

      [16.1:192:1947; added 1951, 124]—(NRS A 1965, 1246; 1973, 1006;
1975, 1716; 1977, 786; 1983, 709; 2005, 1195 )


      1.  Each:

      (a) Wholesale dealer shall maintain copies of invoices or
equivalent documentation for each of its facilities for every transaction
in which the wholesale dealer is the seller, purchaser, consignor,
consignee or recipient of cigarettes. The invoices or documentation must
indicate the name and address of the consignor, seller, purchaser or
consignee, and the quantity by brand and style of the cigarettes involved
in the transaction.

      (b) Retail dealer shall maintain copies of invoices or equivalent
documentation for every transaction in which the retail dealer receives
or purchases cigarettes at each of its facilities. The invoices or
documentation must indicate the name and address of the wholesale dealer
from whom, or the address of another facility of the same retail dealer
from which, the cigarettes were received, and the quantity of each brand
and style of the cigarettes received in the transaction.

      (c) Manufacturer shall maintain copies of invoices or equivalent
documentation for each of its facilities for every transaction in which
the manufacturer is the seller, purchaser, consignor, consignee or
recipient of cigarettes. The invoices or documentation must indicate the
name and address of the consignor, seller, purchaser or consignee, and
the quantity by brand and style of the cigarettes involved in the
transaction.

      2.  The records required by this section must be preserved on the
premises described in the license of the manufacturer, wholesale dealer
or retail dealer in such a manner as to ensure permanency and
accessibility for inspection at reasonable hours by authorized personnel
of the Department. With the permission of the Department, manufacturers,
wholesale dealers and retail dealers with multiple places of business may
retain centralized records, but shall transmit duplicates of the invoices
or the equivalent documentation to each place of business within 24 hours
after the request of the Executive Director or his designee.

      3.  The records required by this section must be retained for not
less than 3 years after the date of the transaction unless the Department
authorizes, in writing, their earlier removal or destruction.

      (Added to NRS by 1971, 1164; A 1973, 1007; 1975, 1717; 1977, 786;
1993, 2473; 2005, 1195 )


      1.  Each manufacturer, wholesale dealer and retail dealer shall
provide to the Executive Director and his designees and to the Secretary
or his designee, upon request, access to all the reports and records
required by NRS 370.001 to 370.430
, inclusive. The Department at its sole
discretion may share the records and reports required by those sections
with law enforcement officials of the Federal Government, this State,
other states, Indian tribes or international authorities.

      2.  Except as otherwise provided in this subsection, the reports
submitted by licensees pursuant to NRS 370.001 to 370.430 ,
inclusive, are public records. Any information contained in those reports
about quantities of cigarettes by brand must not be released to anyone
other than persons permitted access to those reports pursuant to
subsection 1.

      3.  The Department may audit the records of each dealer to
determine whether the manufacturer, wholesale dealer or retail dealer has
complied with the provisions of NRS 370.001 to 370.430 ,
inclusive.

      (Added to NRS by 1971, 1164; A 1973, 1007; 1975, 1717; 1977, 787;
1983, 709; 2005, 1196 )


      1.  All taxes and license fees imposed by the provisions of NRS
370.001 to 370.430 , inclusive, less any refunds granted as
provided by law, must be paid to the Department in the form of
remittances payable to the Department.

      2.  The Department shall:

      (a) As compensation to the State for the costs of collecting the
taxes and license fees, transmit each month the sum the Legislature
specifies from the remittances made to it pursuant to subsection 1 during
the preceding month to the State Treasurer for deposit to the credit of
the Department. The deposited money must be expended by the Department in
accordance with its work program.

      (b) From the remittances made to it pursuant to subsection 1 during
the preceding month, less the amount transmitted pursuant to paragraph
(a), transmit each month the portion of the tax which is equivalent to 35
mills per cigarette to the State Treasurer for deposit to the credit of
the Account for the Tax on Cigarettes in the State General Fund.

      (c) Transmit the balance of the payments each month to the State
Treasurer for deposit in the Local Government Tax Distribution Account
created by NRS 360.660 .

      (d) Report to the State Controller monthly the amount of
collections.

      3.  The money deposited pursuant to paragraph (c) of subsection 2
in the Local Government Tax Distribution Account is hereby appropriated
to Carson City and to each of the counties in proportion to their
respective populations and must be credited to the respective accounts of
Carson City and each county.

      [Part 15:192:1947; A 1949, 598; 1943 NCL § 6528.15]—(NRS A 1961,
675; 1965, 1222; 1967, 1372; 1969, 234, 334, 1131; 1971, 1166, 2087;
1975, 1717; 1981, 257, 286, 302; 1983, 390, 709, 1949; 1985, 471, 1618;
1987, 1790; 1989, 312, 1921, 2185, 2189, 2191; 1991, 287; 1997, 3287;
1999, 17 ; 2003, 20th Special Session, 169 )


      1.  Every retail dealer making a sale to a customer shall, at the
time of sale, see that each package, packet or container has the Nevada
cigarette revenue stamp or metered stamping machine indicia properly
affixed.

      2.  Every cigarette vending machine operator placing cigarettes in
his coin-operated cigarette vending machines for sale to the ultimate
consumers shall at the time of placing them in his machine see that each
package, packet or container has the Nevada cigarette revenue stamp or
metered stamping machine indicia properly affixed.

      3.  No unstamped packages, packets or containers of cigarettes may
lawfully be accepted or held in the possession of any person, except as
authorized by law or regulation. For the purposes of this subsection,
“held in possession” means:

      (a) In the actual possession of the person; or

      (b) In the constructive possession of the person when cigarettes
are being transported or held for him or for his designee by another
person. Constructive possession is deemed to occur at the location of the
cigarettes being transported or held.

      4.  Any cigarettes found in the possession of any person except a
person authorized by law or regulation to possess them, which do not bear
indicia of Nevada excise tax stamping, must be seized by the Department
or any of its agents, and caused to be stamped by a licensed cigarette
dealer, or confiscated and sold by the Department or its agents to the
highest bidder among the licensed wholesale dealers in this state after
due notice to all licensed Nevada wholesale dealers has been given by
mail to the addresses contained in the Department’s records. If there is
no bidder, or in the opinion of the Department the quantity of the
cigarettes is insufficient, or for any other reason such disposition
would be impractical, the cigarettes must be destroyed or disposed of as
the Department may see fit. The proceeds of all sales must be classed as
revenues derived under the provisions of NRS 370.001 to 370.430 ,
inclusive.

      5.  Any cigarette vending machine in which unstamped cigarettes are
found may be so seized and sold to the highest bidder.

      [9.1:192:1947; added 1951, 124] + [13:192:1947; A 1951, 124; 1955,
17]—(NRS A 1965, 1246; 1971, 1168; 1973, 1007; 1975, 1718; 1977, 787;
1983, 711)


      1.  Upon proof satisfactory to the Department, refunds shall be
allowed for the face value of the cigarette revenue stamp tax paid, less
any discount previously allowed, upon cigarettes that are sold to:

      (a) The United States Government for Army, Air Force, Navy or
Marine Corps purposes and are shipped to a point within this state to a
place which has been lawfully ceded to the United States Government for
Army, Air Force, Navy or Marine Corps purposes;

      (b) Veterans’ hospitals for distribution or sale to disabled
service or ex-servicemen interned therein, but not to civilians or
civilian employees;

      (c) Any person if sold and delivered on an Indian reservation or
colony where an excise tax has been imposed which is equal to or greater
than the rate of the cigarette tax imposed under this chapter; or

      (d) An Indian if sold and delivered on an Indian reservation or
colony where no excise tax has been imposed or the excise tax is less
than the rate of the cigarette tax imposed under this chapter.

      2.  Upon proof satisfactory to the Department, refunds shall be
allowed to cigarette dealers, or to manufacturers or their
representatives, for the face value of the cigarette revenue stamp tax
paid, less any discount previously allowed upon cigarettes destroyed
because the cigarettes had become stale. Applications for refunds shall
be submitted in an amount of not less than $15 and shall be accompanied
by an affidavit of the applicant setting forth:

      (a) The number of packages of cigarettes destroyed for which refund
is claimed;

      (b) The date or dates on which the cigarettes were destroyed and
the place where destroyed;

      (c) That the cigarettes were actually destroyed because they had
become stale;

      (d) By whom the cigarettes were destroyed; and

      (e) Other information which the Department may require.

      3.  Upon proof satisfactory to the Department, refunds may be
allowed to licensed wholesale cigarette dealers for the face value of the
cigarette metered machine stamp tax paid, less any discount previously
allowed upon:

      (a) The balance of unused stamps on the descending register of a
cigarette meter machine destroyed by fire, if the cigarette meter
counting positions can be determined by the manufacturer of the meter
stamping machine;

      (b) Cigarettes which were stamped on their carton covers because of
stamping machine failure to open the carton and stamp the cigarette
packs; or

      (c) Cigarettes which were not stamped but were registered on the
machine as being stamped because of failure of the meter counters.

      4.  Any refund shall be paid as other claims against the State are
paid.

      [Part 14:192:1947; A 1949, 598; 1951, 124; 1953, 101]—(NRS A 1959,
371; 1960, 1; 1965, 301; 1973, 1008; 1975, 1719; 1977, 788)


      1.  A wholesale dealer shall not export cigarettes unless they bear
revenue stamps in accordance with NRS 370.170 and 370.180
to any out-of-state destination other than by a licensed common or
contract carrier.

      2.  No cigarette revenue stamp tax is required on any cigarettes
exported from Nevada by a wholesale dealer to a person authorized by the
state of destination to possess untaxed or unstamped cigarettes. Each
wholesale dealer may set aside such portion of his stock of cigarettes as
is not intended to be sold or given away in this state and it will not be
necessary to affix Nevada cigarette revenue stamps or metered machine
impressions.

      3.  Every wholesale dealer shall, at the time of shipping or
delivering any unstamped cigarettes to a point outside of this state,
make a duplicate invoice and transmit such duplicate invoice to the
Department, at Carson City, not later than the 15th day of the following
month.

      4.  Within 30 days after any wholesale dealer ships any unstamped
cigarettes to any destination outside Nevada, the dealer shall send to
the state of destination a written notice of the fact of such shipment
and whatever other information is required by such state.

      5.  If a wholesale dealer fails to comply with the requirements of
this section, the Department may suspend or revoke his license or permit,
as provided in subsection 2 of NRS 370.250 .

      [Part 14:192:1947; A 1949, 598; 1951, 124; 1953, 101]—(NRS A 1973,
1009; 1975, 1720)
 Except for a consumer, every person who transports cigarettes
upon the public highways, roads or streets of this state shall have in
his actual possession invoices or delivery tickets for such cigarettes,
which shall show the true name and address of the consignor or seller,
the true name of the consignee or purchaser and the quantity and brands
of the cigarettes so transported.

      (Added to NRS by 1973, 1005)


      1.  If any unstamped cigarettes are consigned to or purchased by
any person in this State, such purchaser or consignee must be a person
authorized by this chapter to possess unstamped cigarettes.

      2.  If invoices or delivery tickets for unstamped cigarettes are
lacking, if the name or address of the consignee or purchaser is
falsified or if the purchaser or consignee is not authorized by this
chapter to possess unstamped cigarettes, the cigarettes transported are
subject to seizure and sale under the provisions of NRS 370.270 .

      3.  Transportation of cigarettes through this State from a point
outside this State to a point in some other state is not a violation of
this section if the person transporting the cigarettes has in his
possession adequate invoices or delivery tickets which give the true name
and address of the out-of-state seller or consignor and the out-of-state
purchaser or consignee.

      4.  In any case where the Department, its duly authorized agent or
any peace officer of the State has knowledge or reasonable grounds to
believe that any vehicle is transporting cigarettes in violation of this
chapter, the Department, agent or peace officer may stop the vehicle and
inspect it for contraband cigarettes.

      (Added to NRS by 1973, 1005; A 1975, 1720; 2005, 1196 )
 No tax-free cigarettes shall be sold or otherwise
distributed in any way by any coin-operated cigarette vending machine.

      [Part 14:192:1947; A 1949, 598; 1951, 124; 1953, 101]—(NRS A 1973,
1009)
 A
manufacturer of cigarettes who wishes to sell cigarettes in packages that
contain other than 20 cigarettes must so notify the Department not less
than 90 days before he may sell those packages of cigarettes in this
state.

      (Added to NRS by 1989, 2183)

Delivery Sales


      1.  A person shall not accept an order for a delivery sale unless
the person first obtains a license as a retail dealer.

      2.  A person who accepts an order for a delivery sale shall comply
with all of the requirements of this chapter and chapters 370A , 372 and 374 of NRS, and all other laws of this State generally
applicable to sales of cigarettes that occur entirely within this State.

      (Added to NRS by 2005, 1188 )


      1.  A person shall not cause the mailing or shipment of cigarettes
in connection with an order for a delivery sale unless the person
accepting the order first:

      (a) Obtains from the prospective purchaser a certification which
includes:

             (1) Reliable confirmation that the purchaser is at least 18
years of age; and

             (2) A statement signed by the prospective purchaser in
writing and under penalty of perjury which:

                   (I) Certifies the prospective purchaser’s address and
date of birth;

                   (II) Confirms that the prospective purchaser
understands that signing another person’s name to such certification is
illegal and that sales of cigarettes to children under 18 years of age
are illegal under the laws of this State; and

                   (III) Confirms that the prospective purchaser desires
to receive mailings from a tobacco company.

      (b) Makes a good faith effort to verify the information contained
in the certification provided by the prospective purchaser pursuant to
paragraph (a) against any federal or commercially available database
established for that purpose.

      (c) Sends to the prospective purchaser, by electronic mail or other
means, a notice which meets the requirements of subsection 2 and requests
confirmation that the order for the delivery sale was placed by the
prospective purchaser.

      (d) Receives from the prospective purchaser confirmation, pursuant
to the request described in paragraph (c), that such person placed the
order for the delivery sale.

      (e) Receives payment for the delivery sale from the prospective
purchaser by a credit or debit card that has been issued in that
purchaser’s name.

      2.  The notice required by paragraph (c) of subsection 1 must
include:

      (a) A prominent and clearly legible statement that the sale of
cigarettes to children under 18 years of age is illegal;

      (b) A prominent and clearly legible statement that the sale of
cigarettes is restricted to persons who provide verifiable proof of age
in accordance with this section; and

      (c) A prominent and clearly legible statement that sales of
cigarettes are taxable under this chapter, and an explanation of how the
tax has been or is to be paid with respect to the delivery sale.

      3.  Persons accepting orders for delivery sales may request that
prospective purchasers provide their electronic mail addresses.

      (Added to NRS by 2005, 1188 )


      1.  A person who causes the mailing or shipment of cigarettes in
connection with an order for a delivery sale shall:

      (a) Use a method of mailing or shipping that obligates the delivery
service to carry out the provisions of NRS 370.329 ;

      (b) Provide to the delivery service retained to deliver the
delivery sale evidence that all taxes levied by this State with respect
to the delivery sale have been paid to this State; and

      (c) Include as part of the shipping documents:

             (1) A copy of the retail dealer’s license authorizing the
delivery sale; and

             (2) A clear and conspicuous statement providing as follows:



DELIVERY SALE OF CIGARETTES: NEVADA LAW PROHIBITS SHIPPING TO CHILDREN
UNDER 18 YEARS OF AGE AND REQUIRES THE PAYMENT OF ALL APPLICABLE TAXES.



      2.  A person who accepts an order for a delivery sale and delivers
the cigarettes without using a third-party delivery service shall comply
with all the requirements of NRS 370.329 applicable to a delivery service.

      (Added to NRS by 2005, 1189 )
 Not
later than the 10th day of each calendar month, each person who has
mailed, shipped or otherwise delivered cigarettes in connection with a
delivery sale during the previous calendar month, except a delivery
service, shall create and maintain records containing the following
information relating to every such delivery sale:

      1.  The name and address of the person to whom the delivery sale
was made; and

      2.  The quantity and brands of cigarettes that were sold in the
delivery sale.

Ê The records required by this section must be provided to the Department
at the Department’s request and must be retained for not less than 3
years after the date of the applicable transaction unless the Department,
in writing, authorizes the records to be removed or destroyed at an
earlier time.

      (Added to NRS by 2005, 1190 )


      1.  Except as otherwise provided in subsection 2, a delivery
service shall:

      (a) Before delivering a shipping container in connection with a
delivery sale:

             (1) Ensure that the shipping documents include the documents
required by paragraph (c) of subsection 1 of NRS 370.325 ; and

             (2) Obtain the evidence required by paragraph (b) of
subsection 1 of NRS 370.325 regarding
the cigarettes in the shipping container.

      (b) When delivering a shipping container in connection with a
delivery sale, require:

             (1) The purchaser placing the order for the delivery sale,
or an adult designated by that purchaser, to sign to accept delivery of
the shipping container; and

             (2) Proof, in the form of valid identification that was
issued by a governmental entity and bears a photograph of the person who
signs to accept delivery of the shipping container, demonstrating:

                   (I) That the person is either the addressee or the
adult designated by the addressee; and

                   (II) If the person appears to be under 27 years of
age, that the person is at least 18 years of age.

      2.  A delivery service is required to comply with the provisions of
subsection 1 only if the delivery service:

      (a) Is obligated to do so under a method of shipping;

      (b) Delivers any container pursuant to shipping documents
containing the statement described in paragraph (c) of subsection 1 of
NRS 370.325 ; or

      (c) Delivers any container that the delivery service otherwise has
reason to know contains cigarettes sold pursuant to a delivery sale.

      (Added to NRS by 2005, 1190 )

Use Tax


      1.  Except as otherwise provided in subsection 3, a tax is hereby
levied and imposed upon the use of cigarettes in this state.

      2.  The amount of the use tax is 40 mills per cigarette.

      3.  The use tax does not apply where:

      (a) Nevada cigarette revenue stamps have been affixed to cigarette
packages as required by law.

      (b) Tax exemption is provided for in this chapter.

      [1:178:1953]—(NRS A 1959, 117; 1961, 676; 1969, 1132; 1983, 711;
1985, 473; 1987, 1737; 1989, 2188, 2191; 1991, 287; 2003, 20th Special
Session, 169 )
 Every person using or
consuming cigarettes subject to taxation on the use thereof under the
provisions of NRS 370.350 shall pay
such tax and make such reports thereon to the Department under such
regulations as may be prescribed by the Department.

      [2:178:1953]—(NRS A 1973, 1009; 1975, 1721)

Sale of Cigarettes by Wholesale Dealer


      1.  A wholesale dealer shall not engage in predatory pricing with
intent to injure competitors or destroy or lessen competition
substantially by:

      (a) Advertising, offering to sell or selling at wholesale,
cigarettes at less than the cost to the wholesale dealer; or

      (b) Offering any rebate or concession in price or giving any rebate
or concession in price in connection with the sale of cigarettes.

      2.  A retail dealer shall not engage in predatory pricing with the
intent to injure competitors or destroy or lessen competition
substantially by:

      (a) Inducing, attempting to induce, procuring or attempting to
procure the purchase of cigarettes at a price less than the cost to the
wholesale dealer; or

      (b) Inducing, attempting to induce, procuring or attempting to
procure any rebate or concession in connection with the purchase of
cigarettes.

      3.  A person who violates the provisions of this section shall be
punished by a fine of not more than $50 for each offense.

      4.  Evidence of:

      (a) An advertisement, an offer to sell or the sale of cigarettes by
a wholesale dealer at less than the cost to him;

      (b) An offer of a rebate in price, the giving of a rebate in price,
an offer of a concession or the giving of a concession in connection with
the sale of cigarettes; or

      (c) The inducement, attempt to induce, procurement or attempt to
procure the purchase of cigarettes at a price less than the cost to the
wholesale dealer,

Ê is prima facie evidence of intent and likelihood to injure competition
and to destroy or lessen competition substantially.

      (Added to NRS by 1989, 1514; A 1993, 2473)
 The
Executive Director may adopt regulations for the enforcement of NRS
370.371 to 370.379 , inclusive.

      (Added to NRS by 1989, 1515; A 1993, 2474)
 In determining the cost of cigarettes to a wholesale dealer:

      1.  A fractional part of a cent amounting to 1/10 of 1 cent or more
in cost to the wholesale dealer per carton of 10 packages of cigarettes
must be rounded off to the next higher cent.

      2.  The invoice cost of cigarettes purchased at a forced sale,
bankruptcy sale, closeout sale or other sale outside of the ordinary
channels of trade must not be used to justify a price lower than the
replacement cost of cigarettes to the wholesale dealer in the quantity
last purchased through the ordinary channels of trade.

      (Added to NRS by 1989, 1515; A 1993, 2474)
 In advertisements, offers for sale or sales involving two
or more items, at least one of which is cigarettes, at a combined price,
and in advertisements, offers for sale or sales involving the giving of a
concession, the wholesale dealer’s selling price must not be below the
cost to the wholesale dealer of the cigarettes included in such
transactions and the invoice cost of all other articles, products,
commodities and concessions included in the advertisements, offers for
sale or sales, whether the cost is paid by the retail dealer, the
wholesale dealer or any other person.

      (Added to NRS by 1989, 1515)
 A wholesale dealer who sells cigarettes bought
from another wholesale dealer to a retail dealer, or for use or
consumption, shall be deemed to be making a sale at wholesale.

      (Added to NRS by 1989, 1515; A 1993, 2475)
 The provisions
of NRS 370.371 to 370.379 , inclusive, do not apply to a sale at
wholesale made:

      1.  As an isolated transaction and not in the usual course of
business;

      2.  When cigarettes are advertised, offered for sale or sold in a
bona fide clearance sale for the purpose of discontinuing trade in the
cigarettes, and the advertisement, offer to sell or sale states the
reason therefor and the quantity of cigarettes advertised, offered for
sale or to be sold;

      3.  When cigarettes are advertised, offered for sale or sold as
imperfect or damaged and the advertising, offer to sell or sale states
the reason therefor and the quantity of cigarettes advertised, offered
for sale or to be sold;

      4.  When cigarettes are sold upon the final liquidation of a
business; or

      5.  When cigarettes are advertised, offered for sale or sold by a
fiduciary or other officer acting under the order or direction of a court.

      (Added to NRS by 1989, 1515)


      1.  A wholesale dealer may advertise, offer to sell or sell
cigarettes at a price made in good faith to meet the lawful price of a
competitor who is rendering the same type of service and is selling the
same article at cost to him as a wholesale dealer.

      2.  The price of cigarettes advertised, offered for sale or sold
under an exception specified in NRS 370.3735 or at a bankruptcy sale is not the price of a
competitor for the purposes of this section.

      3.  In the absence of proof of the price of a competitor, the
lowest cost to the wholesale dealer determined by a survey of costs that
is made in accordance with recognized statistical and cost-accounting
practices for a trade area shall be deemed the price of a competitor.

      (Added to NRS by 1989, 1516; A 1993, 2475)
 A
contract made by a person in violation of any of the provisions of NRS
370.371 to 370.379 , inclusive, is void and no recovery thereon
may be made.

      (Added to NRS by 1989, 1516)


      1.  An action may be maintained in any court of competent
jurisdiction to prevent, restrain or enjoin a violation or threatened
violation of any provision of NRS 370.371 to 370.379 ,
inclusive. An action may be instituted by any person injured by a
violation or threatened violation of NRS 370.371 to 370.379 ,
inclusive, or by the Attorney General upon the request of the Executive
Director. If in such an action, a violation or threatened violation is
established, the court shall enjoin and restrain, or otherwise prohibit
the violation or threatened violation. In such an action it is not
necessary that actual damages to the plaintiff be alleged or proved, but
where alleged and proved, the plaintiff, in addition to injunctive relief
and costs of the suit, including reasonable attorney’s fees, may recover
from the defendant the actual damages sustained by the plaintiff.

      2.  If no injunctive relief is sought or required, any person
injured by a violation of the provisions of NRS 370.371 to 370.379 ,
inclusive, may maintain an action for damages and costs, including
attorney’s fees, in any court of competent jurisdiction.

      (Added to NRS by 1989, 1516)


      1.  The Department may suspend or revoke the license of a retail or
wholesale dealer who violates the provisions of NRS 370.371 to 370.379 ,
inclusive, or any regulation adopted thereunder, after notice to the
licensee and a hearing as prescribed by the Department.

      2.  The Department, upon a finding that the licensee has failed to
comply with any provision of NRS 370.371 to 370.379 ,
inclusive, or any regulation adopted by the Executive Director, shall, in
the case of a first offender, suspend the license of the licensee for not
less than 5 nor more than 20 consecutive business days. If the Department
finds the offender has been guilty of willful and persistent violations,
it may suspend for not more than 6 months or revoke the person’s license.

      3.  A person whose license has been revoked may apply to the
Department at the end of 1 year for a reinstatement of his license. The
Department may reinstate the license if the Department determines that
the licensee will comply within the provisions of this chapter and the
regulations adopted by the Department.

      4.  A person whose license has been suspended or revoked shall not
sell cigarettes or permit cigarettes to be sold during the period of
suspension or revocation on the premises occupied by him or upon other
premises controlled by him. The expiration, transfer, surrender,
continuance, renewal or extension of a license issued pursuant to this
chapter does not bar or abate any disciplinary proceedings or action.

      (Added to NRS by 1989, 1517)

Penalties and Enforcement


      1.  It is unlawful for a person, with the intent to defraud the
State:

      (a) To alter, forge or counterfeit any license, stamp or cigarette
tax meter impression provided for in this chapter;

      (b) To have in his possession any forged, counterfeited, spurious
or altered license, stamp or cigarette tax meter impression, with the
intent to use the same, knowing or having reasonable grounds to believe
the same to be such;

      (c) To have in his possession one or more cigarette stamps or
cigarette tax meter impressions which he knows have been removed from the
pieces of packages or packages of cigarettes to which they were affixed;

      (d) To affix to any piece of a package or package of cigarettes a
stamp or cigarette tax meter impression which he knows has been removed
from any other piece of a package or package of cigarettes; or

      (e) To have in his possession for the purpose of sale cigarettes
which do not bear indicia of the State of Nevada excise tax stamping.
Presence of the cigarettes in a cigarette vending machine is prima facie
evidence of the purpose to sell.

      2.  A person who violates any of the provisions of subsection 1 is
guilty of a category C felony and shall be punished as provided in NRS
193.130 .

      [3.1:192:1947; added 1951, 124]—(NRS A 1965, 1246; 1967, 562; 1971,
1168; 1979, 1467; 1995, 1271; 2005, 1197 )


      1.  It is unlawful for a person, with the intent to defraud the
State:

      (a) To fail to keep or make any record, return, report or
inventory, or keep or make any false or fraudulent record, return, report
or inventory, required pursuant to NRS 370.080 to 370.329 ,
inclusive, or any regulations adopted for the administration or
enforcement of those provisions;

      (b) To refuse to pay any tax imposed pursuant to NRS 370.080 to 370.329 ,
inclusive, or attempt in any manner to evade or defeat the tax or the
payment thereof;

      (c) To alter, forge or otherwise counterfeit any stamp;

      (d) To sell or possess for the purpose of sale any counterfeit
stamp;

      (e) To have in his possession any counterfeit stamp, with the
intent to use the counterfeit stamp, knowing or having reasonable grounds
to believe the stamp to be a counterfeit stamp;

      (f) To have in his possession any stamp which he knows has been
removed from any cigarette package to which it was affixed;

      (g) To affix to any cigarette package a stamp which he knows has
been removed from any other cigarette package; or

      (h) To fail to comply with any requirement of NRS 370.080 to 370.329 ,
inclusive.

      2.  A person who violates any of the provisions of subsection 1 is
guilty of a category C felony and shall be punished as provided in NRS
193.130 .

      (Added to NRS by 2005, 1191 )


      1.  A wholesale or retail dealer shall not affix a Nevada cigarette
revenue stamp or a metered machine impression upon a package, carton,
packet or other container of cigarettes which:

      (a) Does not meet the requirements of the Federal Cigarette
Labeling and Advertising Act, 15 U.S.C. §§ 1331 et seq., for the
placement of labels, warnings or any other information required by that
Act to be placed upon a container of cigarettes sold within the United
States;

      (b) Is labeled as “for export only,” “U.S. tax exempt,” “for use
outside the U.S.” or with similar wording indicating that the
manufacturer did not intend for the product to be sold in the United
States;

      (c) Has been altered by the unauthorized addition or removal of
wording, labels or warnings described in paragraph (a) or (b);

      (d) Has been exported from the United States after January 1, 2000,
and imported into the United States in violation of 26 U.S.C. § 5754;

      (e) Has been imported into the United States in violation of 19
U.S.C. § 1681a;

      (f) Was manufactured, packaged or imported by a person who has not
complied with 15 U.S.C. § 1335a with regard to the cigarettes;

      (g) Violates a federal trademark or copyright law; or

      (h) Violates any other federal statute or regulation or with
respect to which any federal statute or regulation has been violated.

      2.  A wholesale or retail dealer shall not:

      (a) Affix Nevada cigarette revenue stamps or metered machine
impressions on;

      (b) Sell or distribute in this state; or

      (c) Possess in this state with the intent to sell or distribute in
this state,

Ê cigarettes manufactured for export outside the United States.

      3.  The Department may impose a penalty on a wholesale or retail
dealer who violates subsection 1 or 2 as follows:

      (a) For the first violation, a penalty of $5,000.

      (b) For each subsequent violation, a penalty of $10,000.

      4.  Notwithstanding any other provision of law, the Department
shall seize and destroy cigarettes upon which a revenue stamp or metered
machine impression was placed in violation of subsection 1 or 2.

      5.  As used in this section, “cigarettes manufactured for export
outside the United States” means cigarettes contained in a package or
carton which indicates that the cigarettes are tax exempt and for use
outside the United States.

      (Added to NRS by 1999, 1666 ; A 2001, 2136 )
080 to 370.315 ,
inclusive.  Except as otherwise provided in NRS 370.380 and 370.382 ,
any person violating any of the provisions of NRS 370.080 to 370.315 ,
inclusive, is guilty of a gross misdemeanor.

      [Part 16:192:1947; 1943 NCL § 6528.16]—(NRS A 1965, 1247; 1967,
563; 1971, 1169; 2005, 1197 )
321 to 370.329 ,
inclusive.  A person who:

      1.  Knowingly violates any of the provisions of NRS 370.321 to 370.329 ,
inclusive; or

      2.  Knowingly and falsely submits a certification pursuant to
paragraph (a) of subsection 1 of NRS 370.323 in the name of another person,

Ê is guilty of a category C felony and shall be punished as provided in
NRS 193.130 .

      (Added to NRS by 2005, 1192 )
350 or 370.360 .
 Any person who:

      1.  Willfully fails, neglects or refuses to make any report
required by NRS 370.350 or 370.360
, or required by rules and regulations
lawfully promulgated under the provisions of NRS 370.350 or 370.360 ;
or

      2.  Knowingly makes any false statement in any such report,

Ê is guilty of a misdemeanor.

      [4:178:1953]—(NRS A 1967, 563; 1989, 1597)


      1.  It is unlawful for any person knowingly to sell or to possess
for the purpose of sale any counterfeit cigarettes. The presence of
counterfeit cigarettes in a cigarette vending machine is prima facie
evidence of the purpose to sell those cigarettes.

      2.  A person who violates any provision of subsection 1 is guilty
of:

      (a) For the first offense involving less than 400 cigarettes, a
misdemeanor.

      (b) For each subsequent offense involving less than 400 cigarettes,
a category D felony and shall be punished as provided in NRS 193.130
.

      (c) For the first offense involving 400 or more cigarettes, a gross
misdemeanor.

      (d) For each subsequent offense involving 400 or more cigarettes, a
category C felony and shall be punished as provided in NRS 193.130 .

      (Added to NRS by 2005, 1192 )
 Except as otherwise provided in NRS 370.405
, any person exporting, importing,
possessing or constructively possessing contraband cigarettes is guilty
of a gross misdemeanor.

      (Added to NRS by 1973, 1006; A 2005, 1197 )
 In
order to obtain evidence of any violation of this chapter, the
Department, its agents, and all peace officers and revenue-collecting
officers of this State may enter and inspect, without a warrant during
normal business hours and with a warrant at any other time:

      1.  The facilities and records of any manufacturer, wholesale
dealer or retail dealer; and

      2.  Any other place where they may have reason to believe
contraband cigarettes are stored, warehoused or kept for sale.

      (Added to NRS by 1965, 301; A 1975, 1714; 2005, 1193 )—(Substituted in revision for NRS 370.065)


      1.  The Department, its agents, sheriffs within their respective
counties and all other peace officers of the State of Nevada shall seize
any counterfeit stamps and any contraband cigarettes and machinery used
to manufacture contraband cigarettes, found or located in the State of
Nevada.

      2.  A sheriff or other peace officer who seizes stamps, cigarettes
or machinery pursuant to this section shall provide written notification
of the seizure to the Department not later than 5 working days after the
seizure. The notification must include the reason for the seizure.

      3.  After consultation with the Department, the sheriff or other
peace officer shall transmit the cigarettes to the Department if:

      (a) The cigarettes, except for revenue stamps or metered machine
impressions being properly affixed as required by this chapter, comply
with all state and federal statutes and regulations; and

      (b) The Department approves the transmission of the cigarettes.

      4.  Upon receipt of the cigarettes, the Department shall dispose of
the cigarettes as provided in subsection 4 of NRS 370.270 .

      5.  The sheriff or other peace officer who seizes any stamps,
cigarettes or machinery pursuant to this section shall:

      (a) Destroy the stamps and machinery; and

      (b) If he does not transmit the cigarettes to the Department,
destroy the cigarettes.

      (Added to NRS by 1973, 1005; A 1975, 1721; 2001, 2137 ; 2005, 1197 )
 All fixtures,
equipment and other materials and personal property on the premises of
any wholesale or retail dealer who, with intent to defraud the State:

      1.  Fails to keep or make any record, return, report or inventory
required pursuant to NRS 370.080 to
370.329 , inclusive;

      2.  Keeps or makes any false or fraudulent record, return, report
or inventory required pursuant to NRS 370.080 to 370.329 ,
inclusive;

      3.  Refuses to pay any tax imposed pursuant to NRS 370.080 to 370.329 ,
inclusive; or

      4.  Attempts in any manner to evade or defeat the requirements of
NRS 370.080 to 370.329 , inclusive,

Ê is subject to forfeiture pursuant to NRS 179.1156 to 179.119 ,
inclusive.

      (Added to NRS by 2005, 1191 )
 In addition to any other penalty authorized by law:

      1.  The Department may:

      (a) Impose a civil penalty of $1,000 on any person who knowingly:

             (1) Omits, neglects or refuses to:

                   (I) Comply with any duty imposed upon him pursuant to
the provisions of NRS 370.080 to
370.315 , inclusive; or

                   (II) Do or cause to be done any of the things required
pursuant to those provisions; or

             (2) Does anything prohibited by the provisions of NRS
370.080 to 370.315 , inclusive.

      (b) Impose on each person who violates any of the provisions of NRS
370.321 to 370.329 , inclusive, a civil penalty of:

             (1) Not more than $1,000 for the first violation; and

             (2) Not less than $1,000 nor more than $5,000 for each
subsequent violation.

      2.  Any person who fails to pay any tax imposed pursuant to the
provisions of NRS 370.080 to 370.329
, inclusive, within the time prescribed
by law or regulation shall pay a penalty of 500 percent of the tax due
but unpaid, in addition to the tax.

      (Added to NRS by 2005, 1190 )
 Any dealer who exports cigarettes which do not
bear revenue stamps from Nevada to a person in another state who is not
authorized by that state to possess unstamped cigarettes is guilty of a
gross misdemeanor.

      (Added to NRS by 1973, 1006; A 1977, 789)

OTHER PRODUCTS MADE FROM TOBACCO
 As used in NRS 370.440 to 370.503 ,
inclusive, unless the context otherwise requires:

      1.  “Retail dealer” means any person who is engaged in selling
products made from tobacco, other than cigarettes, to customers.

      2.  “Sale” means any transfer, exchange, barter, gift, offer for
sale, or distribution for consideration of products made from tobacco,
other than cigarettes.

      3.  “Ultimate consumer” means a person who purchases a product made
from tobacco, other than cigarettes, for his household or personal use
and not for resale.

      4.  “Wholesale dealer” means any person who:

      (a) Brings or causes to be brought into this State products made
from tobacco, other than cigarettes, purchased from the manufacturer or a
wholesale dealer and who stores, sells or otherwise disposes of those
products within this State;

      (b) Manufactures or produces products made from tobacco, other than
cigarettes, within this State and who sells or distributes those products
within this State to other wholesale dealers, retail dealers or ultimate
consumers; or

      (c) Purchases products made from tobacco, other than cigarettes,
solely for the purpose of bona fide resale to retail dealers or to other
persons for the purpose of resale only.

      5.  “Wholesale price” means:

      (a) Except as otherwise provided in paragraph (b), the established
price for which a manufacturer sells a product made from tobacco, other
than cigarettes, to a wholesale dealer before any discount or other
reduction is made.

      (b) For a product made from tobacco, other than cigarettes, sold to
a retail dealer or an ultimate consumer by a wholesale dealer described
in paragraph (b) of subsection 4, the established price for which the
product is sold to the retail dealer or ultimate consumer before any
discount or other reduction is made.

      (Added to NRS by 1983, 707; A 1991, 655, 2281; 1997, 1504; 2001,
1595 )


      1.  Except as otherwise provided in subsection 2, a person shall
not engage in the business of a wholesale dealer or retail dealer in this
State unless he first obtains a license as a wholesale dealer or retail
dealer from the Department. A person may be licensed as a wholesale
dealer and as a retail dealer.

      2.  A person who wishes to engage in the business of a retail
dealer is not required to obtain a license as a retail dealer pursuant to
this section if he is licensed as a retail cigarette dealer pursuant to
this chapter.

      3.  Any person who violates any of the provisions of this section
is guilty of a misdemeanor.

      (Added to NRS by 1997, 1503)


      1.  Except as otherwise provided in subsection 2, there is hereby
imposed upon the purchase or possession of products made from tobacco,
other than cigarettes, by a customer in this State a tax of 30 percent of
the wholesale price of those products.

      2.  The provisions of subsection 1 do not apply to those products
which are:

      (a) Shipped out of the State for sale and use outside the State; or

      (b) Displayed or exhibited at a trade show, convention or other
exhibition in this State by a manufacturer or wholesale dealer who is not
licensed in this State.

      3.  This tax must be collected and paid by the wholesale dealer to
the Department, in accordance with the provisions of NRS 370.465 , after the sale or distribution of those
products by the wholesale dealer. The wholesale dealer is entitled to
retain 0.5 percent of the taxes collected to cover the costs of
collecting and administering the taxes if the taxes are paid in
accordance with the provisions of NRS 370.465 .

      4.  Any wholesale dealer who sells or distributes any of those
products without paying the tax provided for by this section is guilty of
a misdemeanor.

      (Added to NRS by 1983, 707; A 1997, 1504; 2001, 1596 ; 2003, 20th Special Session, 19 )

 It is unlawful for any person to sell or offer to sell any products made
from tobacco, other than cigarettes, on which the tax is not paid as
provided for in NRS 370.450 .

      (Added to NRS by 1983, 707; A 2001, 1596 )


      1.  A wholesale dealer shall, not later than 20 days after the end
of each month, submit to the Department a report on a form prescribed by
the Department setting forth each sale of products made from tobacco,
other than cigarettes, that the wholesale dealer made during the previous
month.

      2.  Each report submitted pursuant to this section on or after
August 20, 2001, must be accompanied by the tax owed pursuant to NRS
370.450 for products made from tobacco,
other than cigarettes, that were sold by the wholesale dealer during the
previous month.

      3.  The Department may impose a penalty on a wholesale dealer who
violates any of the provisions of this section as follows:

      (a) For the first violation within 7 years, a fine of $1,000.

      (b) For a second violation within 7 years, a fine of $5,000.

      (c) For a third or subsequent violation within 7 years, revocation
of the license of the wholesale dealer.

      (Added to NRS by 1997, 1504; A 2001, 1596 )
 A wholesale
dealer must obtain from each manufacturer or wholesale dealer who is not
licensed in this State itemized invoices of all products made from
tobacco, other than cigarettes, purchased from and delivered by the
manufacturer or wholesale dealer who is not licensed in this State. The
wholesale dealer must obtain from the manufacturer or wholesale dealer
who is not licensed in this State separate invoices for each purchase
made. The invoice must include:

      1.  The name and address of the manufacturer or wholesale dealer
who is not licensed in this State;

      2.  The name and address of the wholesale dealer;

      3.  The date of the purchase; and

      4.  The quantity and wholesale price of those products.

      (Added to NRS by 1983, 707; A 1997, 1505; 2001, 1597 )


      1.  Every wholesale dealer must keep at his place of business
complete and accurate records for that place of business, including
copies of all invoices of products made from tobacco, other than
cigarettes, which he holds, purchases and delivers, distributes or sells
in this State. All records must be preserved for at least 3 years after
the date of purchase or after the date of the last entry made on the
record.

      2.  Every retail dealer shall keep at his place of business
complete and accurate records for that place of business, including
copies of all itemized invoices or purchases of such products purchased
and delivered from wholesale dealers. The invoices must show the name and
address of the wholesale dealer and the date of the purchase. All records
must be preserved for at least 3 years after the date of the purchase.

      (Added to NRS by 1983, 708; A 2001, 1597 )


      1.  The Department shall allow a credit of 30 percent of the
wholesale price, less a discount of 0.5 percent for the services rendered
in collecting the tax, for products made from tobacco, other than
cigarettes, upon which the tax has been paid pursuant to NRS 370.450
and that may no longer be sold. If the
products have been purchased and delivered, a credit memo of the
manufacturer is required for proof of returned merchandise.

      2.  A credit must also be granted for any products made from
tobacco, other than cigarettes, shipped from this State and destined for
retail sale and consumption outside the State on which the tax has
previously been paid. A duplicate or copy of the invoice is required for
proof of the sale outside the State.

      3.  A wholesale dealer may claim a credit by filing with the
Department the proof required by this section. The claim must be made on
a form prescribed by the Department.

      (Added to NRS by 1983, 708; A 1989, 1597; 2001, 1597 ; 2003, 20th Special Session, 20 )


      1.  All amounts of tax required to be paid to the State pursuant to
NRS 370.440 to 370.490 , inclusive, must be paid to the Department in
the form of remittances payable to the Department.

      2.  The Department shall deposit these payments with the State
Treasurer for credit to the Account for the Tax on Products Made From
Tobacco, Other Than Cigarettes, in the State General Fund.

      (Added to NRS by 1983, 708)


      1.  The governing body of an Indian reservation or Indian colony
may impose an excise tax on any product made from tobacco, other than
cigarettes, sold on the reservation or colony.

      2.  If an excise tax is imposed, the governing body may establish
procedures for collecting the excise tax from any retail dealer
authorized to do business on the reservation or colony.

      (Added to NRS by 1991, 655)


      1.  Upon proof satisfactory to the Department, a refund must be
allowed for the taxes paid pursuant to NRS 370.450 , upon products made from tobacco other than
cigarettes, that are sold to:

      (a) The United States Government for the purposes of the Army, Air
Force, Navy or Marine Corps and are shipped to a point within this state
to a place which has been lawfully ceded to the United States Government
for the purposes of the Army, Air Force, Navy or Marine Corps;

      (b) Veterans’ hospitals for distribution or sale to disabled
servicemen or ex-servicemen interned therein, but not to civilians or
civilian employees;

      (c) Any person if sold and delivered on an Indian reservation or
colony where an excise tax has been imposed which is equal to or greater
than the rate of the tax imposed pursuant to NRS 370.501 ; or

      (d) An Indian if sold and delivered on an Indian reservation or
colony where no excise tax has been imposed or the excise tax is less
than the rate of the tax imposed pursuant to NRS 370.501 .

      2.  Any refund must be paid as other claims against the State are
paid.

      (Added to NRS by 1991, 2280)



MISCELLANEOUS PROVISIONS


      1.  A retail dealer shall pay a wholesale dealer for all cigarettes
and other tobacco products purchased from the wholesale dealer:

      (a) If the cigarettes or other tobacco products were delivered to
the retail dealer on or after the 1st day of the month but before the
16th day of the month, on or before the 29th day of the same month; and

      (b) If the cigarettes or other tobacco products were delivered to
the retail dealer on or after the 16th day of the month but before the
1st day of the next month, on or before the 14th day of the next month.

      2.  A wholesale dealer shall not extend credit or otherwise allow a
retail dealer to violate the provisions of subsection 1.

      3.  The Department may impose a penalty on a wholesale dealer who
violates the provision of subsection 2 as follows:

      (a) For the first violation, a penalty of $500.

      (b) For a second or subsequent violation, if paragraph (c) does not
apply, a penalty of $1,000.

      (c) For a third or subsequent violation within any 12-month period,
a penalty of $5,000 or suspension or revocation of the license of the
wholesale dealer, or both.

      4.  Pursuant to a written complaint or upon its own motion, the
Department shall investigate an alleged violation of subsection 2. The
Department shall give notice to the alleged violator and conduct a
hearing, if warranted by the investigation. The Department may assess a
penalty pursuant to subsection 3, if it determines that the wholesale
dealer violated the provisions of subsection 2.

      (Added to NRS by 1987, 1789; A 1989, 285)


 The Department may make
all necessary regulations for the administration and enforcement of this
chapter, including:

      1.  Necessary regulations for the keeping of records to ensure
compliance with this chapter by persons dealing in both taxable and
exempt cigarettes.

      2.  Regulations authorizing persons other than dealers to possess
unstamped cigarettes.

      3.  Regulations relating to the licensing of wholesale dealers and
retail dealers.

      [Part 16:192:1947; 1943 NCL § 6528.16]—(NRS A 1971, 1165; 1975,
1714; 1977, 783; 1997, 1505)
 The Department shall not
collect the tax imposed by this chapter on cigarettes or other products
made from tobacco sold on an Indian reservation or Indian colony if:

      1.  The governing body of the reservation or colony imposes an
excise tax pursuant to NRS 370.0751 or
370.501 ;

      2.  The excise tax imposed is equal to or greater than the tax
imposed pursuant to this chapter; and

      3.  The governing body of the colony or reservation submits a copy
of the ordinance imposing the excise tax to the Department.

      (Added to NRS by 1991, 655)
  Nothing in this chapter
shall operate to abridge the rights of any Indian, individual or tribe,
or to infringe upon the sovereignty of any Indian tribe, organized under
the Indian Reorganization Act (25 U.S.C. §§ 476 et seq.).

      (Added to NRS by 1973, 1006)—(Substituted in revision for NRS
370.075)


      1.  Except as otherwise provided in subsection 2, a person may
institute a civil action in a court of competent jurisdiction for
appropriate injunctive relief if the person:

      (a) Sells, distributes or manufactures cigarettes; and

      (b) Sustains direct economic or commercial injury as a result of a
violation of NRS 370.080 to 370.329
, inclusive, 370.380 , 370.382 ,
370.385 , 370.395 , 370.405 or
370.410 .

      2.  Nothing in this section authorizes an action against this
State, a political subdivision of this State, or an officer, employee or
agency thereof.

      (Added to NRS by 2001, 2135 ; A 2005, 1198 )


      1.  The Attorney General or the district attorney of the proper
county may investigate and prosecute any civil or criminal violation of
this chapter.

      2.  Sheriffs, within their counties, and all other peace officers
of the State of Nevada shall, without further compensation, assist in the
enforcement of this chapter.

      [18:192:1947; 1943 NCL § 6528.18]—(NRS A 2005, 1198 )

SUPERVISION OF MANUFACTURERS OF TOBACCO PRODUCTS
 The Legislature finds that:

      1.  Violations of the provisions of chapter 370A of NRS threaten the integrity of the Master
Settlement Agreement, the fiscal soundness of the State and public health.

      2.  The enactment of the procedural enhancements set forth in NRS
370.600 to 370.705 , inclusive, will aid in the enforcement of the
provisions of chapter 370A of NRS and
thereby safeguard the Master Settlement Agreement, the fiscal soundness
of the State and public health.

      (Added to NRS by 2005, 374 )
 As used in NRS 370.600 to 370.705 ,
inclusive, unless the context otherwise requires, the words and terms
defined in NRS 370.610 to 370.660
, inclusive, have the meanings ascribed
to them in those sections.

      (Added to NRS by 2005, 374 )
 “Brand family” means all
styles of cigarettes sold under the same trademark and differentiated
from one another by means of additional modifiers or descriptors,
including, but not limited to, “menthol,” “lights,” “kings” and “100s,”
and includes any brand name, whether or not occurring alone or in
conjunction with any other word, any trademark, logo, symbol, motto,
selling message or recognizable pattern of colors, or any other indicia
of product identification identical or similar to, or identifiable with,
a previously known brand of cigarettes.

      (Added to NRS by 2005, 374 )
 “Cigarette” has the meaning
ascribed to it in NRS 370A.050 .

      (Added to NRS by 2005, 374 )
 “Directory” means the directory
created pursuant to NRS 370.675 .

      (Added to NRS by 2005, 374 )
 “Distributor” means a person
that is authorized to affix stamps to cigarette packages pursuant to this
chapter or any person that is required to pay the taxes on cigarettes
imposed pursuant to this chapter.

      (Added to NRS by 2005, 374 )

 “Manufacturer of tobacco products” has the meaning ascribed to it in NRS
370A.060 .

      (Added to NRS by 2005, 374 )
 “Master
Settlement Agreement” has the meaning ascribed to it in NRS 370A.070
.

      (Added to NRS by 2005, 374 )

 “Nonparticipating manufacturer” means any manufacturer of tobacco
products that is not a participating manufacturer.

      (Added to NRS by 2005, 374 )
 “Participating
manufacturer” has the meaning ascribed to it in NRS 370A.080 .

      (Added to NRS by 2005, 374 )
 “Qualified escrow
fund” has the meaning ascribed to it in NRS 370A.090 .

      (Added to NRS by 2005, 375 )
 “Stamp” means the indicia required
to be placed on a cigarette package that evidences payment of the taxes
on cigarettes imposed pursuant to this chapter.

      (Added to NRS by 2005, 375 )
 “Units sold” has the meaning
ascribed to it in NRS 370A.120 .

      (Added to NRS by 2005, 375 )


      1.  A manufacturer of tobacco products whose cigarettes are sold in
this State, whether or not directly or through a distributor, retailer or
similar intermediary or intermediaries shall, not later than April 30 of
each year, execute and deliver to the Attorney General and the
Department, on a form provided by the Department, a certification which
certifies under penalty of perjury that, as of the date of that
certification, the manufacturer of tobacco products is either:

      (a) A participating manufacturer; or

      (b) In full compliance with subsection 2 of NRS 370A.140 , including any quarterly installment
payments required pursuant to NRS 370.690 .

      2.  Except as otherwise provided in NRS 370.670 :

      (a) A participating manufacturer shall include in its certification
pursuant to this section a list of its brand families. The participating
manufacturer shall update that list at least 30 calendar days before it
adds to or modifies its brand families by executing and delivering a
supplemental certification to the Attorney General and the Department.

      (b) A nonparticipating manufacturer shall, in its certification
pursuant to this section:

             (1) Include:

                   (I) A list of all of its brand families and the number
of units sold for each brand family that were sold in the State during
the preceding calendar year; and

                   (II) A list of all of its brand families that have
been sold in the State at any time during the current calendar year;

             (2) Indicate, by an asterisk, any brand family sold in the
State during the preceding calendar year that is no longer being sold in
the State as of the date of the certification; and

             (3) Identify, by name and address, any other manufacturer of
those brand families in the preceding or current calendar year.

Ê A nonparticipating manufacturer shall update the information required
by this paragraph at least 30 calendar days before it adds to or modifies
its brand families by executing and delivering a supplemental
certification to the Attorney General and the Department.

      3.  In addition to the requirements of subsection 2, the
certification of a nonparticipating manufacturer pursuant to this section
must certify:

      (a) That the nonparticipating manufacturer is registered to do
business in the State or has appointed a resident agent for service of
process and provided notice thereof as required by NRS 370.680 ;

      (b) That the nonparticipating manufacturer has:

             (1) Established and continues to maintain a qualified escrow
fund; and

             (2) Executed a qualified escrow agreement governing the
qualified escrow fund that has been reviewed and approved by the Attorney
General;

      (c) That the nonparticipating manufacturer is in full compliance
with chapter 370A of NRS and any
regulations adopted pursuant thereto;

      (d) The name, address and telephone number of the financial
institution where the nonparticipating manufacturer has established the
qualified escrow fund required pursuant to chapter 370A of NRS and any regulations adopted pursuant
thereto;

      (e) The account number of that qualified escrow fund and any
subaccount number for this State;

      (f) The amount the nonparticipating manufacturer placed in that
qualified escrow fund for cigarettes sold in the State during the
preceding calendar year, the date and amount of each such deposit, and
such evidence or verification as may be deemed necessary by the
Department to confirm the information required by this paragraph; and

      (g) The amount and date of any withdrawal or transfer of money the
nonparticipating manufacturer made at any time from that qualified escrow
fund or from any other qualified escrow fund into which it ever made
escrow payments pursuant to chapter 370A of
NRS and any regulations adopted pursuant thereto.

      (Added to NRS by 2005, 375 )

 A manufacturer of tobacco products:

      1.  Shall not include a brand family in its certification pursuant
to NRS 370.665 unless, if the
manufacturer is:

      (a) A participating manufacturer, the manufacturer affirms that the
brand family is to be deemed to be its cigarettes for the purposes of
calculating its payments under the Master Settlement Agreement for the
relevant year, in the volume and shares determined pursuant to the Master
Settlement Agreement; or

      (b) A nonparticipating manufacturer, the manufacturer affirms that
the brand family is to be deemed to be its cigarettes for the purposes of
chapter 370A of NRS.

Ê This subsection must not be construed as limiting or otherwise
affecting the right of the State to maintain that a brand family
constitutes cigarettes of a different manufacturer of tobacco products
for the purposes of calculating payments under the Master Settlement
Agreement or for the purposes of chapter 370A of NRS.

      2.  Shall maintain all invoices and documentation of sales, and any
other information relied upon by the manufacturer for its certification
pursuant to NRS 370.665 , for at least 5
years, unless the manufacturer is otherwise required by law to maintain
them for a greater period.

      (Added to NRS by 2005, 376 )


      1.  The Department shall create and maintain on its Internet
website and otherwise make available for public inspection a directory
that lists, except as otherwise provided in NRS 370.600 to 370.705 ,
inclusive, all manufacturers of tobacco products that have provided
current and accurate certifications conforming to the requirements of NRS
370.600 to 370.705 , inclusive, and all brand families that are
listed in those certifications. The Department:

      (a) Shall not include or retain in the directory the name or brand
families of any nonparticipating manufacturer that has failed to provide
the required certification or whose certification the Department
determines is not in compliance with NRS 370.600 to 370.705 ,
inclusive, unless the Department has determined that the violation has
been cured to its satisfaction.

      (b) Shall not include or retain in the directory a manufacturer of
tobacco products or brand family if the Department concludes, for a
nonparticipating manufacturer, that:

             (1) Any escrow payment required pursuant to chapter 370A
of NRS for any period for any brand family,
whether or not listed by the nonparticipating manufacturer, has not been
fully paid into a qualified escrow fund governed by a qualified escrow
agreement which has been approved by the Attorney General; or

             (2) Any outstanding final judgment, including any interest
thereon, for a violation of chapter 370A of
NRS has not been fully satisfied for that manufacturer or brand family.

      2.  The Department shall update the directory as necessary to
correct mistakes and to add or remove a manufacturer of tobacco products
or brand family to keep the directory in conformity with the requirements
of NRS 370.600 to 370.705 , inclusive.

      3.  Any determination of the Department not to include in or to
remove from the directory a manufacturer of tobacco products or brand
family is a final decision for the purposes of judicial review.

      (Added to NRS by 2005, 376 )


      1.  Any nonresident or foreign nonparticipating manufacturer that
has not registered to do business in the State as a foreign corporation
or other business entity must, as a condition precedent to having its
brand families included or retained in the directory, appoint and
continually engage without interruption the services of an agent in this
State to act as its agent for the service of process on whom all process,
in any action or proceeding against it concerning or arising out of the
enforcement of this chapter, may be served in any manner authorized by
law. Such service constitutes legal and valid service of process on the
nonparticipating manufacturer. The nonparticipating manufacturer shall
provide the name, address, phone number and proof of the appointment and
availability of such agent to, and to the satisfaction of, the Attorney
General and the Department.

      2.  A nonparticipating manufacturer shall provide notice to the
Attorney General and the Department at least 30 calendar days before the
termination of the authority of an agent appointed pursuant to this
section and shall provide proof to the satisfaction of the Attorney
General and the Department of the appointment of a new agent not less
than 5 calendar days before the termination of appointment of an existing
agent. If an agent terminates his appointment as an agent, the
nonparticipating manufacturer shall notify the Attorney General and the
Department of that termination within 5 calendar days and include with
that notification proof to the satisfaction of the Attorney General and
the Department of the appointment of a new agent.

      3.  Any nonparticipating manufacturer whose cigarettes are sold in
this State and who has not appointed and engaged an agent as required by
this section shall be deemed to have appointed the Secretary of State as
an agent and may be proceeded against in courts of this State by service
of process upon the Secretary of State, except that the appointment of
the Secretary of State as an agent does not satisfy the condition
precedent for having the brand families of the nonparticipating
manufacturer included or retained in the directory.

      (Added to NRS by 2005, 377 )


      1.  Not later than 20 calendar days after the end of each calendar
quarter, and more frequently if so directed by the Department, each
distributor shall submit such information as the Department requires to
facilitate compliance with the provisions of NRS 370.600 to 370.705 ,
inclusive, including, without limitation, a list by brand family of the
total number of cigarettes or, in the case of “roll-your-own” tobacco,
the equivalent unit count, for which the distributor affixed stamps
during the previous calendar quarter or otherwise paid the tax due for
those cigarettes. The distributor shall maintain for at least 5 years,
and make available to the Department, all invoices and documentation of
sales of all cigarettes of nonparticipating manufacturers and any other
information relied upon in reporting to the Department.

      2.  The Department may disclose to the Attorney General any
information received pursuant to NRS 370.600 to 370.705 ,
inclusive, and requested by the Attorney General for purposes of
determining compliance with and enforcing the provisions of NRS 370.600
to 370.705 , inclusive. The Department and Attorney
General shall share with each other the information received pursuant to
the provisions of NRS 370.600 to
370.705 , inclusive, and may share such
information with other federal, state or local agencies only for purposes
of enforcement of those provisions, the provisions of chapter 370A of NRS or the corresponding laws of other states.

      3.  The Department may require at any time from a nonparticipating
manufacturer proof, from the financial institution in which that
manufacturer has established a qualified escrow fund for the purpose of
compliance with chapter 370A of NRS, of the
amount of money in that fund, exclusive of interest, the amount and date
of each deposit to that fund, and the amount and date of each withdrawal
from that fund.

      4.  In addition to the information otherwise required to be
submitted pursuant to NRS 370.600 to
370.705 , inclusive, the Department may
require a distributor or manufacturer of tobacco products to submit any
additional information, including, without limitation, samples of the
packaging or labeling of each brand family, as is necessary to enable the
Department to determine whether a manufacturer of tobacco products is in
compliance with the provisions of NRS 370.600 to 370.705 ,
inclusive.

      5.  Every distributor shall provide to the Department and update as
necessary an electronic mail address for receiving any notifications
required to carry out NRS 370.600 to
370.705 , inclusive.

      (Added to NRS by 2005, 377 )


      1.  To promote compliance with the provisions of NRS 370A.140
, the Department may adopt regulations
requiring a manufacturer of tobacco products to make the escrow deposits
required by NRS 370A.140 in quarterly
installments during the year in which the sales covered by those deposits
are made. The Department may require the production of information
sufficient to enable the Department to determine the adequacy of the
amount of each quarterly installment.

      2.  The Department may adopt such regulations as it deems necessary
to carry out the provisions of NRS 370.600 to 370.705 ,
inclusive.

      (Added to NRS by 2005, 378 )


      1.  It is unlawful for any person to:

      (a) Affix a stamp to a package or other container of cigarettes of
a manufacturer of tobacco products or brand family which is not included
in the directory; or

      (b) Sell, or offer or possess for sale, in this State cigarettes of
a manufacturer of tobacco products or brand family not included in the
directory.

      2.  A person who violates any provision of subsection 1 is guilty
of a gross misdemeanor.

      3.  In addition to any other penalty authorized by law, the
Department may impose on each person who violates any provision of
subsection 1 a civil penalty for each such violation of not more than
$5,000 or 500 percent of the retail value of the cigarettes involved in
the violation, whichever is greater.

      4.  Any violation of subsection 1 constitutes a deceptive trade
practice for the purposes of NRS 598.0903 to 598.0999 , inclusive.

      5.  For the purposes of this section, each stamp affixed to and
each sale or offer to sell cigarettes in violation of subsection 1
constitutes a separate violation.

      (Added to NRS by 2005, 378 )


      1.  The Attorney General, on behalf of the Department, may bring an
action in the district court of this State to:

      (a) Enjoin any threatened or actual violation of the provisions of
NRS 370.600 to 370.705 , inclusive, by a distributor and to compel the
distributor to comply with those provisions; or

      (b) Enforce any of the provisions of NRS 370.600 to 370.705 ,
inclusive.

      2.  In any action brought by the State to enforce the provisions of
NRS 370.600 to 370.705 , inclusive, the State is entitled to recover
any costs of investigation, expert witness fees, costs of the action and
reasonable attorney’s fees.

      3.  If a court determines that a person has violated any provision
of NRS 370.600 to 370.705 , inclusive, the court shall order any profits,
gain, gross receipts or other benefit from the violation to be disgorged
and paid to the State Treasurer for deposit in the State General Fund.

      4.  The remedies and penalties provided in NRS 370.600 to 370.705 ,
inclusive, are cumulative to each other and to the remedies and penalties
available under any other law of this State.

      (Added to NRS by 2005, 379 )


      1.  If a court of competent jurisdiction finds that the provisions
of NRS 370.600 to 370.705 , inclusive, conflict and cannot be harmonized
with the provisions of chapter 370A of NRS,
then the provisions of chapter 370A of NRS
shall be deemed to control.

      2.  If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of NRS 370.600 to
370.705 , inclusive, causes chapter 370A
of NRS to no longer constitute a qualifying
or model statute, as those terms are defined in the Master Settlement
Agreement, then that portion of NRS 370.600 to 370.705 ,
inclusive, shall be deemed to be invalid.

      3.  If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of NRS 370.600 to
370.705 , inclusive, is for any reason
held to be invalid, unlawful or unconstitutional, that decision shall be
deemed not to affect the validity of the remaining portions of NRS
370.600 to 370.705 , inclusive, or any part thereof.

      (Added to NRS by 2005, 379 )