USA Statutes : nevada
Title : Title 32 - REVENUE AND TAXATION
Chapter : CHAPTER 375B - GENERATION-SKIPPING TRANSFER TAX
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 375B.020
to 375B.050 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1989, 1495)
“Direct skip” means a
transfer as defined in 26 U.S.C. § 2612.
(Added to NRS by 1989, 1495)
“Federal credit” means the
maximum amount of the credit against the federal generation-skipping
transfer tax for state generation-skipping transfer tax allowed by 26
U.S.C. § 2604.
(Added to NRS by 1989, 1495)
“Generation-skipping transfer” has the meaning ascribed to it in 26
U.S.C. § 2611.
(Added to NRS by 1989, 1495)
The “person liable” for
paying the generation-skipping transfer tax is the person having
“personal liability” pursuant to 26 U.S.C. § 2603.
(Added to NRS by 1989, 1495)
IMPOSITION OF TAX
1. Except as otherwise provided in subsection 2, a tax is hereby
imposed on the generation-skipping transfer other than a direct skip,
that occurs at the same time as and as a result of the death of a person
in the amount of the maximum credit allowable against the federal
generation-skipping transfer tax for the payment of state
generation-skipping transfer taxes.
2. The tax imposed by subsection 1 is reduced by the apportioned
amount of the generation-skipping transfer taxes collected by another
state.
(Added to NRS by 1989, 1495)
If the generation-skipping transfer
includes property having a situs in this State and in another state the
portion of the federal credit which is attributable to the property
having a situs in Nevada must be determined in the following manner:
1. For the purpose of apportioning the federal credit, the gross
value of the property must be that value finally determined for the
purposes of the federal generation-skipping transfer tax.
2. The federal credit must be multiplied by the percentage which
the gross value of property having a situs in Nevada bears to the gross
value of the entire transfer which is subject to federal
generation-skipping transfer tax.
3. The product determined pursuant to subsection 2 is the portion
of the federal credit which is attributable to property having a situs in
Nevada.
(Added to NRS by 1989, 1496)
PAYMENTS AND DETERMINATIONS
1. The person liable for paying the generation-skipping transfer
tax imposed by NRS 375B.100 who is
required to file a United States estate and generation-skipping transfer
tax return or a United States gift and generation-skipping transfer tax
return shall file with the Department on or before the date the United
States tax return is required to be filed, a copy of the United States
tax return and any documentation concerning the amount owed to the State
of Nevada which is required by the Department.
2. The Department shall adopt regulations to require sufficient
documentation of the amount due to the State of Nevada pursuant to this
chapter.
(Added to NRS by 1989, 1496)
If the person
liable for the generation-skipping transfer tax has obtained an extension
of time for filing the United States estate and generation-skipping
transfer tax return or the United States gift and generation-skipping
transfer tax return, the filing required by NRS 375B.150 must be similarly extended until the end of
the period granted in the extension of time for filing the United States
tax return if a true copy of the United States extension is filed with
the Department.
(Added to NRS by 1989, 1496)
If the
person liable for the generation-skipping transfer tax files an amended
United States estate and generation-skipping transfer tax return or an
amended United States gift and generation-skipping transfer tax return,
he shall immediately file with the Department a true copy of the amended
United States tax return. If the person liable for the
generation-skipping transfer tax is required to pay an additional amount
pursuant to NRS 375B.100 because of
the changes on the amended return, he shall pay that additional amount,
together with any interest as provided in NRS 375B.250 , at the same time the amended return is
filed.
(Added to NRS by 1989, 1496)
1. Upon final determination of the federal generation-skipping
transfer tax due, the person liable for the tax shall, within 60 days
after that determination, give written notice of it to the Department. If
any additional tax is due under NRS 375B.100 by reason of this determination, the person
liable for the tax shall pay the tax, together with interest as provided
in NRS 375B.250 , at the same time he
files the notice.
2. The State of Nevada shall accept the determination by the
United States of the amount of the generation-skipping transfer without
further audit.
(Added to NRS by 1989, 1496)
If the return required by NRS 375B.150 is not filed within the time specified in
that section or the extension specified in NRS 375B.160 , the person liable for the tax shall pay,
except as otherwise provided in NRS 360.232 and 360.320 ,
and in addition to the interest provided in NRS 375B.250 , a penalty equal to 5 percent of the tax
due, as finally determined, for each month or portion of a month during
which that failure to file continues, not exceeding 25 percent in the
aggregate, unless it is shown that there was reasonable cause for the
failure to file. If a similar penalty for failure to file timely the
federal estate tax return is waived, that waiver shall be deemed to
constitute reasonable cause for purposes of this section.
(Added to NRS by 1989, 1497; A 1999, 2502 )
In the case of a false or
fraudulent return or failure to file a return, the Department may
determine the tax at any time.
(Added to NRS by 1989, 1497)
1. In a case not involving a false or fraudulent return or failure
to file a return, if the Department determines at any time after the tax
is due, but not later than 4 years after the return is filed unless a
longer period is provided by federal law, that the tax disclosed in any
return required to be filed by this chapter is less than the tax owed to
the State of Nevada, a deficiency must be determined. That determination
may also be made within such time after the expiration of the period as
may be agreed upon in writing between the Department and the person
liable for the tax.
2. For purposes of this section, a return filed before the last
day prescribed by law for filing that return must be considered as filed
on that last day.
(Added to NRS by 1989, 1497; A 1991, 1409)
If a deficiency has been determined in an erroneous
amount, the Department may, within 3 years after the erroneous
determination was made, set aside the determination or issue an amended
determination in the correct amount.
(Added to NRS by 1989, 1497)
1. If it is claimed that a deficiency has been determined in an
erroneous amount, any person who is liable for the tax may appeal the
determination to the Nevada Tax Commission pursuant to NRS 360.245 . If the person who is liable for the tax is
aggrieved by the decision of the Commission on appeal, he may, within 3
years after the determination was made, bring an action against the State
of Nevada in the district court having jurisdiction over the property
which was transferred to have the tax modified in whole or in part.
2. The Department shall give notice of the deficiency determined,
together with any penalty for failure to file a return, by personal
service or by mail to the person filing the return at the address stated
in the return, or, if no return is filed, to the person liable for the
tax. Copies of the notice of deficiency may in the same manner be given
to such other persons as the Department deems advisable.
(Added to NRS by 1989, 1497; A 1999, 2502 )
The tax imposed
by NRS 375B.100 :
1. Must be paid by the person liable for the tax. Liability for
payment of the tax continues until the tax is paid.
2. Is due on or before the date the federal generation-skipping
transfer tax imposed by 26 U.S.C. § 2601 is due.
(Added to NRS by 1989, 1497)
1. Except as otherwise provided in NRS 360.232 and 360.320 ,
if the tax is paid after the due date, the tax bears interest at the rate
set by the Executive Director, from the due date of the return.
2. The Executive Director shall set and maintain the rate of
interest for late payments at the highest rate permissible pursuant to
Section 4 of Article 10 of the Nevada Constitution.
(Added to NRS by 1989, 1497; A 1999, 2502 )
Every payment received by the Department on the tax imposed by NRS
375B.100 must be applied:
1. To any interest due on the tax;
2. To any penalty; and
3. If there is any balance, to the tax itself,
Ê in that order.
(Added to NRS by 1989, 1498)
1. If any person who is liable for the tax fails to pay any
portion of the tax imposed by NRS 375B.100 on or before the date the tax is due, he
must, on motion of the Department, be required by the district court
having jurisdiction over the generation-skipping transfer to execute a
bond to the State of Nevada in an amount equal to twice the amount of the
tax due, with such sureties as the court may approve, conditioned upon
the payment of the tax, plus interest on the tax at the rate of interest
set by the Executive Director pursuant to NRS 375B.250 commencing on the date the tax became due,
unless otherwise provided in NRS 360.232 and 360.320 .
The bond must be executed within a time certain to be fixed by the court
and specified in the bond.
2. The bond must be filed in the office of the clerk of the court,
and a certified copy must be immediately transmitted to the Department.
(Added to NRS by 1989, 1498; A 1999, 2502 )
1. Whenever the Department determines that an overpayment of the
tax due pursuant to NRS 375B.100 has
been made, the person who made payment or his estate is entitled to a
refund of the amount erroneously paid on presentation of proof
satisfactory to the Department that he is entitled to a refund.
2. An application for the refund must be made to the Department
within 1 year after the date the United States generation-skipping
transfer tax has been finally determined.
3. On proof satisfactory to the Department that the applicant is
entitled to a refund, the Department shall refund that amount plus
interest at the rate established pursuant to NRS 375B.250 .
4. The amount of the refund must be paid from the
Generation-Skipping Transfer Tax Account in the State General Fund.
(Added to NRS by 1989, 1498)
COLLECTION OF TAX
The State may
enforce its claim for any tax imposed by NRS 375B.100 and enforce the lien of the tax by a civil
action in any court of competent jurisdiction against any person liable
for the tax or against any property subject to the lien.
(Added to NRS by 1989, 1498)
1. The tax imposed by NRS 375B.100 becomes a lien upon the generation-skipping
transfer on the date of the transfer and remains as such until the tax,
interest and penalties owed to the State are paid or the lien is
otherwise discharged.
2. If a person who is liable for the generation-skipping transfer
tax transfers property which was part of a generation-skipping transfer
to a bona fide purchaser or holder of a security interest the lien
imposed by subsection 1 attaches at the moment of the transfer to all of
the property of the person liable for the tax including property he
acquires after the transfer, except the property which is transferred to
a bona fide purchaser or a holder of a security interest. The lien does
not attach to the property transferred to a bona fide purchaser or a
holder of a security interest but it attaches to the consideration
received for the property by the person who is liable for the tax.
3. The tax owed to the State of Nevada is a lien upon all
generation-skipping transfers made during the period for which the return
is filed. If the lien is not extinguished or otherwise released or
discharged, it expires 10 years after the date a determination of
deficiency is issued if, within that period, no notice of the lien has
been recorded or filed as provided in NRS 360.450 . Except as otherwise provided in this section,
the provisions of NRS 360.420 to
360.560 , inclusive, apply to the lien.
(Added to NRS by 1989, 1498)
At
any time within 10 years after a person is delinquent in the payment of
any tax imposed pursuant to NRS 375B.100 or the interest or penalty thereon, or
within 10 years after the last recording or filing of a notice of a lien
for taxes, the Department may issue a warrant for the enforcement of any
liens and for the collection of any amount required to be paid to the
State. The warrant must be directed to any sheriff and has the same
effect as a writ of execution. The warrant must be levied and sale made
pursuant to it in the same manner and with the same effect as a levy of
and sale pursuant to a writ of execution.
(Added to NRS by 1989, 1499)
1. The Department may pay or advance to the sheriff the same fees,
commissions and expenses for his services as are provided by law for
similar services pursuant to a writ of execution. The Department, and not
the court, shall approve the fees for publication in a newspaper.
2. The fees, commissions and expenses are obligations of the
person liable for the tax imposed pursuant to NRS 375B.100 and any interest and penalty thereon and may
be collected from him by virtue of the warrant or in any other manner
provided for the collection of the tax.
(Added to NRS by 1989, 1499)
1. At any time after the tax imposed by NRS 375B.100 is delinquent, the Department may have a
writ of execution issued for the enforcement of any judgment rendered in
respect to the tax.
2. The writ must be executed against any property of the person
liable for payment of the tax, or against any property subject to the
lien for the tax.
3. The Department must not be charged a fee for the issuance of
execution of the writ.
(Added to NRS by 1989, 1499)
Proceedings for the collection of any tax imposed by NRS 375B.100 may be commenced at any time after the tax
is due and within 10 years after the time a determination of deficiency
is issued.
(Added to NRS by 1989, 1499; A 1995, 1090)
In any proceeding for the enforcement of the
tax imposed by NRS 375B.100 a
certificate by the Department showing the amount due is prima facie
evidence of:
1. The imposition of the tax;
2. The fact that it is due; and
3. Compliance by the Department with all the provisions of this
chapter in relation to the computation and determination of the tax.
(Added to NRS by 1989, 1499)
No injunction or other legal or equitable process must issue in any
suit, action or proceeding in any court against this state or any officer
of this state to prevent or enjoin the collection of any tax imposed by
NRS 375B.100 .
(Added to NRS by 1989, 1499)
The
Department may bring suits in the courts of other states to collect taxes
payable under this chapter. An officer of another state which extends a
like comity to this state may sue for the collection of similar taxes in
the courts of this state. A certificate by the secretary of state of
another state, under the great seal of that state, that an officer
thereof has authority to collect its generation-skipping transfer tax is
conclusive evidence of the authority of that officer in any suit for the
collection of those taxes in any court of this state.
(Added to NRS by 1989, 1499)
The remedies of the State for the enforcement of the tax
imposed by NRS 375B.100 are
cumulative, and no action taken by the Department or any other state
officer or agency constitutes an election by the State or any of its
officers to pursue any remedy to the exclusion of any other remedy for
which provision is made.
(Added to NRS by 1989, 1500)
DISTRIBUTION OF PROCEEDS
1. The Department shall deposit all payments received pursuant to
this chapter in the State General Fund.
2. The money deposited in the State General Fund pursuant to
subsection 1 must be accounted for separately and may only be expended
upon legislative appropriation.
(Added to NRS by 1989, 1500)
The money collected
pursuant to the provisions of this chapter must be used only for the
purpose of education, to be divided between the common schools and the
Nevada System of Higher Education for their support and maintenance.
(Added to NRS by 1989, 1500; A 1993, 399; 2005, 366 )
MISCELLANEOUS PROVISIONS
All information and records acquired from the Internal
Revenue Service of the United States Department of the Treasury by the
Nevada Tax Commission, the Department or any of their employees pursuant
to this chapter are confidential in nature and, except insofar as may be
necessary for the enforcement of this chapter, as an employee of the
Department has a need to know the information or as may be permitted by
this chapter, must not be disclosed.
(Added to NRS by 1989, 1500)
