A.B. 277
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ASSEMBLY BILL NO. 277–ASSEMBLYMEMBERS DELONG AND GURR
FEBRUARY 24, 2025
____________
Referred to Committee on Revenue
SUMMARY—Revises provisions relating to the confidentiality of
information relating to the tax on the net proceeds of
minerals in this State. (BDR 32-616)
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; authorizing the Department of
Taxation to disclose certain confidential information
relating to the taxation of the net proceeds of minerals
extracted in this State; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law creates the Department of Taxation, which has various powers and 1
duties related to the administration and collection of certain taxes, fees, assessments 2
and other amounts of money and the imposition of disciplinary actions. (Chapter 3
360 of NRS) Existing law makes confidential and privileged the records and files of 4
the Department concerning the administration and collection of those taxes, fees, 5
assessments and other amounts and the imposition of disciplinary action, but 6
authorizes the disclosure of such records and files under certain circumstances. 7
(NRS 360.255) Existing law provides for the taxation of the net proceeds of 8
minerals extracted in this State based upon the actual net proceeds from the 9
preceding calendar year. (NRS 362.100-362.240) Existing law requires the 10
Department to investigate and determine the net proceeds of all minerals extracted. 11
(NRS 362.100) In making the investigation and determination, existing law 12
requires the Department to compute the gross yield and net proceeds of the 13
extraction of all minerals using all obtainable data, evidence and reports, including 14
a certain statement required to be filed by every person extracting any mineral in 15
this State or receiving any royalty. (NRS 362.110, 362.120) This bill authorizes the 16
disclosure of the records and files of the Department concerning the administration 17
and collection of certain taxes, fees, assessments and other amounts and the 18
imposition of disciplinary action related to the computation of the gross yield and 19
net proceeds of the extraction of all minerals in this State. 20
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THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 360.255 is hereby amended to read as follows: 1
360.255 1. Except as otherwise provided in this section and 2
NRS 239.0115, 360.250 and 607.217, the records and files of the 3
Department concerning the administration or collection of any tax, 4
fee, assessment or other amount required by law to be collected or 5
the imposition of disciplinary action are confidential and privileged. 6
The Department, an employee of the Department and any other 7
person engaged in the administration or collection of any tax, fee, 8
assessment or other amount required by law to be collected or the 9
imposition of disciplinary action or charged with the custody of any 10
such records or files: 11
(a) Shall not disclose any information obtained from those 12
records or files; and 13
(b) May not be required to produce any of the records or files for 14
the inspection of any person or governmental entity or for use in any 15
action or proceeding. 16
2. The records and files of the Department concerning the 17
administration and collection of any tax, fee, assessment or other 18
amount required by law to be collected or the imposition of 19
disciplinary action are not confidential and privileged in the 20
following cases: 21
(a) Testimony by a member or employee of the Department and 22
production of records, files and information on behalf of the 23
Department or a person in any action or proceeding before 24
the Nevada Tax Commission, the State Board of Equalization, the 25
Department, a grand jury or any court in this State if that testimony 26
or the records, files or information, or the facts shown thereby, are 27
directly involved in the action or proceeding. 28
(b) Delivery to a person or his or her authorized representative 29
of a copy of any document filed by the person pursuant to the 30
provisions of any law of this State. 31
(c) Publication of statistics so classified as to prevent the 32
identification of a particular business or document. 33
(d) Exchanges of information with the Internal Revenue Service 34
in accordance with compacts made and provided for in such cases, 35
or disclosure to any federal agency, state or local law enforcement 36
agency, including, without limitation, the Cannabis Compliance 37
Board, or local regulatory agency that requests the information for 38
the use of the agency in a federal, state or local prosecution or 39
criminal, civil or regulatory investigation. 40
(e) Disclosure in confidence to: 41
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(1) The Governor or his or her agent in the exercise of the 1
Governor’s general supervisory powers; 2
(2) The Budget Division of the Office of Finance for use in 3
the projection of revenue; 4
(3) Any person authorized to audit the accounts of the 5
Department in pursuance of an audit; 6
(4) The Attorney General or other legal representative of the 7
State in connection with an action or proceeding relating to a 8
taxpayer or licensee; or 9
(5) Any agency of this or any other state charged with the 10
administration or enforcement of laws relating to workers’ 11
compensation, unemployment compensation, public assistance, 12
taxation, labor or gaming. 13
(f) Exchanges of information pursuant to an agreement between 14
the Nevada Tax Commission and any county fair and recreation 15
board or the governing body of any county, city or town. 16
(g) Upon written request made by a public officer of a local 17
government, disclosure of the name and address of a taxpayer or 18
licensee who must file a return with the Department. The request 19
must set forth the social security number of the taxpayer or licensee 20
about which the request is made and contain a statement signed by 21
the proper authority of the local government certifying that the 22
request is made to allow the proper authority to enforce a law to 23
recover a debt or obligation owed to the local government. Except 24
as otherwise provided in NRS 239.0115, the information obtained 25
by the local government is confidential and privileged and may not 26
be used or disclosed for any purpose other than the collection of a 27
debt or obligation owed to that local government. The Executive 28
Director may charge a reasonable fee for the cost of providing the 29
requested information. 30
(h) Disclosure of information as to amounts of any unpaid tax or 31
amounts of tax required to be collected, interest and penalties to 32
successors, receivers, trustees, executors, administrators, assignees 33
and guarantors, if directly interested. 34
(i) Disclosure of relevant information as evidence in an appeal 35
by the taxpayer from a determination of tax due if the Nevada Tax 36
Commission has determined the information is not proprietary or 37
confidential in a hearing conducted pursuant to NRS 360.247. 38
(j) Disclosure of the identity of a person and the amount of tax 39
assessed and penalties imposed against the person at any time after a 40
determination, decision or order of the Executive Director or other 41
officer of the Department imposing upon the person a penalty for 42
fraud or intent to evade a tax imposed by law becomes final or is 43
affirmed by the Nevada Tax Commission. 44
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(k) Disclosure of the identity of a licensee against whom 1
disciplinary action has been taken and the type of disciplinary action 2
imposed against the licensee at any time after a determination, 3
decision or order of the Executive Director or other officer of the 4
Department imposing upon the licensee disciplinary action becomes 5
final or is affirmed by the Nevada Tax Commission. 6
(l) Disclosure of information pursuant to subsection 2 of 7
NRS 370.257. 8
(m) With respect to an application for a registration certificate to 9
operate a medical marijuana establishment pursuant to chapter 453A 10
of NRS, as that chapter existed on June 30, 2020, or a license to 11
operate a marijuana establishment pursuant to chapter 453D of 12
NRS, as that chapter existed on June 30, 2020, which was submitted 13
on or after May 1, 2017, and on or before June 30, 2020, and 14
regardless of whether the application was ultimately approved, 15
disclosure of the following information: 16
(1) The identity of an applicant, including, without 17
limitation, any owner, officer or board member of an applicant; 18
(2) The contents of any tool used by the Department to 19
evaluate an applicant; 20
(3) The methodology used by the Department to score and 21
rank applicants and any documentation or other evidence showing 22
how that methodology was applied; and 23
(4) The final ranking and scores of an applicant, including, 24
without limitation, the score assigned to each criterion in the 25
application that composes a part of the total score of an applicant. 26
(n) Disclosure of the name of a licensee and the jurisdiction of 27
that licensee pursuant to chapter 453A or 453D of NRS, as those 28
chapters existed on June 30, 2020, and any regulations adopted 29
pursuant thereto. 30
(o) Disclosure of information related to the computation by the 31
Department of the gross yield and net proceeds for all minerals 32
extracted in this State as provided in NRS 362.120. 33
3. The Executive Director shall periodically, as he or she 34
deems appropriate, but not less often than annually, transmit to the 35
Administrator of the Division of Industrial Relations of the 36
Department of Business and Industry a list of the businesses of 37
which the Executive Director has a record. The list must include the 38
mailing address of the business as reported to the Department. 39
4. The Executive Director may request from any other 40
governmental agency or officer such information as the Executive 41
Director deems necessary to carry out his or her duties with respect 42
to the administration or collection of any tax, fee, assessment or 43
other amount required by law to be collected or the imposition of 44
disciplinary action. If the Executive Director obtains any 45
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confidential information pursuant to such a request, he or she shall 1
maintain the confidentiality of that information in the same manner 2
and to the same extent as provided by law for the agency or officer 3
from whom the information was obtained. 4
5. As used in this section: 5
(a) “Applicant” means any person listed on the application for a 6
registration certificate to operate a medical marijuana establishment 7
pursuant to chapter 453A of NRS, as that chapter existed on 8
June 30, 2020, or a license to operate a marijuana establishment 9
pursuant to chapter 453D of NRS, as that chapter existed on 10
June 30, 2020. 11
(b) “Disciplinary action” means any suspension or revocation of 12
a license, registration, permit or certificate issued by the Department 13
pursuant to this title or chapter 453A or 453D of NRS, as those 14
chapters existed on June 30, 2020, or any other disciplinary action 15
against the holder of such a license, registration, permit or 16
certificate. 17
(c) “Licensee” means a person to whom the Department has 18
issued a license, registration, permit or certificate pursuant to this 19
title or chapter 453A or 453D of NRS, as those chapters existed on 20
June 30, 2020. The term includes, without limitation, any owner, 21
officer or board member of an entity to whom the Department has 22
issued a license. 23
(d) “Records” or “files” means any records and files related to 24
an investigation or audit or a disciplinary action, financial 25
information, correspondence, advisory opinions, decisions of a 26
hearing officer in an administrative hearing and any other 27
information specifically related to a taxpayer or licensee. 28
(e) “Taxpayer” means a person who pays any tax, fee, 29
assessment or other amount required by law to the Department. 30
H