REQUIRES TWO-THIRDS MAJORITY VOTE (§ 6)
S.B. 444
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SENATE BILL NO. 444–COMMITTEE ON
REVENUE AND ECONOMIC DEVELOPMENT
MARCH 27, 2023
____________
Referred to Committee on Revenue and
Economic Development
SUMMARY—Revises provisions relating to the excise tax on live
entertainment. (BDR 32-602)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; imposing an excise tax on certain
resales of admission to live entertainment events;
repealing the exemption for certain athletic events
involving a professional team based in this State from the
excise tax on live entertainment; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law provides for the imposition of an excise tax at a rate of 9 percent 1
of the admission charge on admission to certain facilities where live entertainment 2
is provided. (NRS 368A.200) Existing law additionally provides that such a tax 3
must be collected from the purchaser at the time of purchase, whether or not the 4
admission is purchased for resale. Existing law exempts from this tax an athletic 5
contest, event or exhibition conducted by a professional team based in this State if 6
such a team is a participant in the contest, event or exhibition. (NRS 368A.200) 7
Section 6 of this bill eliminates the exemption from the tax of such an athletic 8
event. Section 6 requires the excise tax imposed on admission to live entertainment 9
events to also be imposed on each resale of admission by a reseller, other than an 10
occasional sale. Section 6 requires a reseller to retain certain records and to provide 11
a credit to a purchaser on the amount of tax owed on the resale of an admission 12
based on the amount of tax paid by the reseller at the time of the initial purchase of 13
the admission. Sections 2, 3 and 5 of this bill define certain terms relevant to 14
resellers. Section 4 of this bill makes a conforming change to indicate the proper 15
placement of sections 2 and 3 in the Nevada Revised Statutes. 16
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THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 368A of NRS is hereby amended by 1
adding thereto the provisions set forth as sections 2 and 3 of this act. 2
Sec. 2. “Resale” or “resell” means a transaction for the sale 3
of the admission to a facility in this State where live entertainment 4
is provided which occurs after the initial purchase of the 5
admission. The term includes, without limitation, a sale made in 6
person or by telephone, Internet website or any other means of 7
communication or exchange. 8
Sec. 3. “Reseller” means any person who resells the 9
admission to a facility in this State where live entertainment is 10
provided. 11
Sec. 4. NRS 368A.010 is hereby amended to read as follows: 12
368A.010 As used in this chapter, unless the context otherwise 13
requires, the words and terms defined in NRS 368A.020 to 14
368A.115, inclusive, and sections 2 and 3 of this act have the 15
meanings ascribed to them in those sections. 16
Sec. 5. NRS 368A.110 is hereby amended to read as follows: 17
368A.110 “Taxpayer” means: 18
1. Except as otherwise provided in [subsection] subsections 4 19
[,] and 5, if live entertainment that is taxable under this chapter is 20
provided at a licensed gaming establishment, the person licensed to 21
conduct gaming at that establishment. 22
2. Except as otherwise provided in subsections 3 , [and] 4 [,] 23
and 5, if live entertainment that is taxable under this chapter is not 24
provided at a licensed gaming establishment, the owner or operator 25
of the facility where the live entertainment is provided. 26
3. Except as otherwise provided in [subsection] subsections 4 27
[,] and 5, if live entertainment that is taxable under this chapter is 28
provided at a publicly owned facility or on public land, the person 29
who collects the taxable receipts. 30
4. If live entertainment that is taxable under this chapter is 31
provided by an escort, the escort or, if the escort works as an 32
employee, agent or independent contractor for an escort service, the 33
owner or operator of the escort service. 34
5. With respect to any tax which is due for the resale of the 35
admission to a facility in this State where live entertainment is 36
provided, the reseller. 37
Sec. 6. NRS 368A.200 is hereby amended to read as follows: 38
368A.200 1. Except as otherwise provided in this section, 39
there is hereby imposed an excise tax on admission to any facility in 40
this State where live entertainment is provided and on the charge for 41
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live entertainment provided by an escort at one or more locations in 1
this State. The rate of the tax is: 2
(a) Except as otherwise provided in paragraph (b), for admission 3
to a facility in this State where live entertainment is provided, 9 4
percent of the admission charge to the facility. 5
(b) For live entertainment provided by an escort who is 6
escorting one or more persons at a location or locations in this State, 7
9 percent of the total amount, expressed in terms of money, of 8
consideration paid for the live entertainment provided by the escort. 9
2. Amounts paid for: 10
(a) Admission charges collected and retained by a nonprofit 11
religious, charitable, fraternal or other organization that qualifies as 12
a tax-exempt organization pursuant to 26 U.S.C. § 501(c), or by a 13
nonprofit corporation organized or existing under the provisions of 14
chapter 82 of NRS, are not taxable pursuant to this section, only if 15
the number of tickets to the live entertainment which are offered for 16
sale or other distribution to patrons, either directly or indirectly 17
through a partner, subsidiary, client, affiliate or other collaborator, is 18
less than 7,500. 19
(b) Gratuities directly or indirectly remitted to persons employed 20
at a facility where live entertainment is provided are not taxable 21
pursuant to this section. 22
(c) Fees imposed, collected and retained by an independent 23
financial institution in connection with the use of credit cards or 24
debit cards to pay the admission charge to a facility where live 25
entertainment is provided are not taxable pursuant to this section. As 26
used in this paragraph, “independent financial institution” means a 27
financial institution that is not the taxpayer or an owner or operator 28
of the facility where the live entertainment is provided or an affiliate 29
of any of those persons. 30
3. The tax imposed by this section must be added to and 31
collected from the purchaser at the time of purchase, whether or not 32
the admission for live entertainment is purchased for resale. 33
4. Except as otherwise provided in this subsection, in addition 34
to the tax imposed pursuant to subsection 1 with respect to the 35
initial sale of admission to any facility in this State where live 36
entertainment is provided, the tax imposed pursuant to subsection 37
1 shall also be collected by a reseller from the purchaser at the 38
time of resale of the admission to a facility in this State where live 39
entertainment is provided. A reseller must maintain records 40
documenting the admission charge and tax paid by the reseller for 41
the initial purchase of the admission and the admission charge 42
and tax collected when the reseller resells the admission. The 43
reseller shall pass through to the purchaser the amount of the tax 44
imposed pursuant to this section which was paid by the reseller at 45
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the time of the initial purchase by giving the purchaser a credit on 1
the amount of tax owed pursuant to this section on the resale, 2
except that the amount of the credit may not exceed: 3
(a) The amount of tax paid pursuant to this section on the 4
initial purchase of the admission by the reseller; or 5
(b) The amount of tax owed pursuant to this section on the 6
resale of the admission. 7
If the resale or admission to any facility in this State where live 8
entertainment is provided is an occasional sale, as defined in NRS 9
372.035, such a resale is exempt from the payment of any 10
additional amount of excise tax pursuant to this subsection. 11
5. The tax imposed by subsection 1 does not apply to: 12
(a) Live entertainment that this State is prohibited from taxing 13
under the Constitution, laws or treaties of the United States or the 14
Nevada Constitution. 15
(b) Live entertainment that is governed by the Nevada 16
Interscholastic Activities Association pursuant to chapter 385B of 17
NRS or is provided or sponsored by an elementary school, junior 18
high school, middle school or high school, if only pupils or faculty 19
provide the live entertainment. 20
(c) An athletic contest, event, tournament or exhibition provided 21
by an institution of the Nevada System of Higher Education, if 22
students of such an institution are contestants in the contest, event, 23
tournament or exhibition. 24
(d) Live entertainment that is provided by or entirely for the 25
benefit of a nonprofit religious, charitable, fraternal or other 26
organization that qualifies as a tax-exempt organization pursuant to 27
26 U.S.C. § 501(c), or a nonprofit corporation organized or existing 28
under the provisions of chapter 82 of NRS, only if the number of 29
tickets to the live entertainment which are offered for sale or other 30
distribution to patrons, either directly or indirectly through a partner, 31
subsidiary, client, affiliate or other collaborator, is less than 7,500. 32
(e) Any boxing contest or exhibition governed by the provisions 33
of chapter 467 of NRS. 34
(f) Live entertainment that is not provided at a licensed gaming 35
establishment if the facility in which the live entertainment is 36
provided has a maximum occupancy of less than 200 persons. 37
(g) Live entertainment that is provided at a licensed gaming 38
establishment that is licensed for less than 51 slot machines, less 39
than 6 games, or any combination of slot machines and games 40
within those respective limits, if the facility in which the live 41
entertainment is provided has a maximum occupancy of less than 42
200 persons. 43
(h) Live entertainment that is provided at a trade show. 44
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(i) Music performed by musicians who move constantly through 1
the audience if no other form of live entertainment is afforded to the 2
patrons. 3
(j) Live entertainment that is provided at a licensed gaming 4
establishment at private meetings or dinners attended by members of 5
a particular organization or by a casual assemblage if the purpose of 6
the event is not primarily for entertainment. 7
(k) Live entertainment that is provided in the common area of a 8
shopping mall, unless the entertainment is provided in a facility 9
located within the mall. 10
(l) Food and product demonstrations provided at a shopping 11
mall, a craft show or an establishment that sells grocery products, 12
housewares, hardware or other supplies for the home. 13
(m) Live entertainment that is incidental to an amusement ride, a 14
motion simulator or a similar digital, electronic, mechanical or 15
electromechanical attraction. For the purposes of this paragraph, live 16
entertainment shall be deemed to be incidental to an amusement 17
ride, a motion simulator or a similar digital, electronic, mechanical 18
or electromechanical attraction if the live entertainment is: 19
(1) Not the predominant element of the attraction; and 20
(2) Not the primary purpose for which the public rides, 21
attends or otherwise participates in the attraction. 22
(n) A race scheduled at a race track in this State and sanctioned 23
by the National Association for Stock Car Auto Racing, if two or 24
more such races are held at that race track during the same calendar 25
year. 26
(o) [An athletic contest, event or exhibition conducted by a 27
professional team based in this State if the professional team based 28
in this State is a participant in the contest, event or exhibition. 29
(p)] Live entertainment that is provided by or entirely for the 30
benefit of a governmental entity. 31
[5.] 6. As used in this section: 32
(a) “Affiliate” has the meaning ascribed to it in NRS 463.0133. 33
(b) “Maximum occupancy” means, in the following order of 34
priority: 35
(1) The maximum occupancy of the facility in which live 36
entertainment is provided, as determined by the State Fire Marshal 37
or the local governmental agency that has the authority to determine 38
the maximum occupancy of the facility; 39
(2) If such a maximum occupancy has not been determined, 40
the maximum occupancy of the facility designated in any permit 41
required to be obtained in order to provide the live entertainment; or 42
(3) If such a permit does not designate the maximum 43
occupancy of the facility, the actual seating capacity of the facility 44
in which the live entertainment is provided. 45
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(c) “Operator” includes, without limitation, a person who 1
operates a facility where live entertainment is provided or who 2
presents, produces or otherwise provides live entertainment. 3
Sec. 7. 1. This section becomes effective upon passage and 4
approval. 5
2. Sections 1 to 6, inclusive, of this act become effective: 6
(a) Upon passage and approval for the purpose of adopting any 7
regulations and performing any other preparatory administrative 8
tasks that are necessary to carry out the provisions of this act; and 9
(b) On January 1, 2024, for all other purposes. 10
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