REQUIRES TWO-THIRDS MAJORITY VOTE
(§§ 7, 8)
A.B. 362
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ASSEMBLY BILL NO. 362–ASSEMBLYMEMBER CONSIDINE
MARCH 4, 2025
____________
Referred to Committee on Revenue
SUMMARY—Provides for taxes on the sale or transfer of a
controlling interest in an entity which possesses an
interest in real property. (BDR 32-687)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; providing for the imposition,
collection, administration and enforcement of taxes on the
sale or transfer of a controlling interest in an entity which
possesses an interest in real property in this State;
providing penalties; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law imposes several taxes, known as real property transfer taxes, on 1
each deed by which lands, tenements or other realty are assigned, transferred or 2
otherwise conveyed to, or vested in, another person, or land sale installment 3
contract, if the consideration or value of the interest or property conveyed exceeds 4
$100. The amount of the real property transfer taxes owed is required to be 5
computed on the basis of the value of the transferred real property. (NRS 375.020, 6
375.023, 375.026) Existing law provides for the disposition and use of the proceeds 7
of the real property transfer taxes for specific purposes, including: (1) deposit in the 8
State General Fund; (2) deposit in the Account for Affordable Housing; (3) deposit 9
in the Local Government Tax Distribution Account for credit to the accounts of 10
each county; (4) deposit in the county school district’s fund for capital projects, 11
with respect to proceeds collected in a county whose population is 700,000 or 12
more; and (5) transmittal to the State Treasurer for use by the Division of Plant 13
Health and Compliance of the State Department of Agriculture. (NRS 375.023, 14
375.026, 375.070) 15
Section 8 of this bill imposes taxes on the sale or transfer of a controlling 16
interest in an entity which possesses, directly or indirectly, an interest in real 17
property in this State when the value of the real property interest exceeds $100. 18
Section 8 imposes the taxes at the same rate as the existing real property transfer 19
taxes and requires the taxes to be computed based on the value of the entity’s 20
interest in the real property, which corresponds to the estimated fair market value of 21
the real property. Section 9 of this bill requires the person who conveys a 22
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controlling interest in an entity which is subject to the tax to file a return and remit 23
the tax to the Department of Taxation on or before the last day of the month 24
immediately following the month in which the sale or transfer was made. Section 25
10 of this bill authorizes the Department to extend the time within which the tax is 26
required to be paid, upon application and for good cause shown. Section 11 of this 27
bill requires the Department to deposit the taxes, interest and penalties collected in 28
the Controlling Interest Transfer Tax Account and requires the State Controller to 29
dispose of those taxes, interest and penalties in the same manner as the 30
corresponding real property transfer taxes. Section 12 of this bill exempts certain 31
transfers of the controlling interest in an entity from the taxes imposed by section 8. 32
Section 23 of this bill makes it a misdemeanor to willfully falsely declare the 33
estimated fair market value of real property on a return filed pursuant to section 9. 34
Sections 3 and 4 of this bill define the terms “estimated fair market value” and 35
“taxpayer,” respectively, for the purposes of the provisions governing the taxes 36
imposed by section 8. 37
Section 25 of this bill requires money from the taxes imposed by section 8 38
which is received by the Division of Plant Health and Compliance to be allocated 39
for disbursement to each county in proportion to the money collected with respect 40
to real property in that county: (1) for use by the State Department of Agriculture 41
for programs on the exclusion, detection and control of invasive species and 42
endemic pests and weeds; and (2) to make grants to local governments and 43
nonprofit organizations for the control or management of such species, pests 44
and weeds. 45
Sections 5-7, 13-22 and 24 of this bill provide for the administration and 46
enforcement of the taxes imposed by section 8. 47
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 32 of NRS is hereby amended by adding 1
thereto a new chapter to consist of the provisions set forth as 2
sections 2 to 24, inclusive, of this act. 3
Sec. 2. As used in this chapter, unless the context otherwise 4
requires, the words and terms defined in sections 3 and 4 of this 5
act have the meanings ascribed to them in those sections. 6
Sec. 3. “Estimated fair market value” means the estimated 7
price the real property would bring on the open market in a sale 8
between a willing buyer and a willing seller. Such price must be 9
derived from the assessor’s taxable value or the prior purchasing 10
price, if the prior purchase was within the 5 years immediately 11
preceding the date of valuation, whichever is higher. 12
Sec. 4. “Taxpayer” means any person liable for a tax 13
imposed by this chapter. 14
Sec. 5. The Department shall administer and enforce the 15
provisions of this chapter and may adopt such regulations as it 16
deems appropriate for those purposes. 17
Sec. 6. 1. Each person responsible for maintaining the 18
records of a taxpayer shall: 19
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(a) Keep such records as may be necessary to determine the 1
amount of the liability of the taxpayer pursuant to the provisions 2
of this chapter; 3
(b) Preserve those records for 4 years or until any litigation or 4
prosecution pursuant to this chapter is finally determined, 5
whichever is longer; and 6
(c) Make the records available for inspection by the 7
Department upon demand at reasonable times during regular 8
business hours. 9
2. The Department may by regulation specify the types of 10
records which must be kept to determine the amount of the 11
liability of a taxpayer pursuant to the provisions of this chapter. 12
3. Any person who violates the provisions of subsection 1 is 13
guilty of a misdemeanor. 14
Sec. 7. 1. To verify the accuracy of any return filed or, if 15
no return is filed by a taxpayer, to determine the amount of the tax 16
required to be paid pursuant to this chapter, the Department, or 17
any person authorized in writing by the Department, may examine 18
the books, papers and records of any person who may be liable for 19
the tax imposed by this chapter. 20
2. Any person who may be liable for the tax imposed by this 21
chapter and who keeps outside of this State any books, papers and 22
records relating thereto shall pay to the Department an amount 23
equal to the allowance provided for state officers and employees 24
generally while traveling outside of the State for each day or 25
fraction thereof during which an employee of the Department is 26
engaged in examining those documents, plus any other actual 27
expenses incurred by the employee while he or she is absent from 28
his or her regular place of employment to examine those 29
documents. 30
Sec. 8. 1. There is hereby imposed a tax on the sale or 31
transfer of a controlling interest in any entity which possesses, 32
directly or indirectly, an interest in real property in this State when 33
the value of the interest in real property exceeds $100, at the rate 34
of: 35
(a) If the real property is located in a county whose population 36
is 700,000 or more, $1.25; and 37
(b) If the real property is located in a county whose population 38
is less than 700,000, 65 cents, 39
for each $500 of value, or fraction thereof, of the interest in 40
real property possessed, directly or indirectly, by the entity. 41
2. In addition to all other taxes imposed pursuant to this 42
section, there is hereby imposed a tax on the sale or transfer of a 43
controlling interest in any entity which possesses, directly or 44
indirectly, an interest in real property in this State when the value 45
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of the interest in real property exceeds $100, at the rate of $1.30 1
for each $500 of value, or fraction thereof, of the interest in real 2
property possessed, directly or indirectly, by the entity. 3
3. In addition to all other taxes imposed pursuant to this 4
section, there is hereby imposed a tax on the sale or transfer of a 5
controlling interest in any entity which possesses, directly or 6
indirectly, an interest in real property which is located in a county 7
whose board of county commissioners has imposed a tax pursuant 8
to NRS 375.026 when the value of the interest in real property 9
exceeds $100, at the rate which is an amount of cents per $500 of 10
value, or fraction thereof, of the interest in real property 11
possessed, directly or indirectly, by the entity that is equal to the 12
amount of cents per $500 of value, or fraction thereof, imposed by 13
the board of county commissioners of the county as the rate for 14
the tax pursuant to NRS 375.026. 15
4. The value of an entity’s interest in real property is: 16
(a) The estimated fair market value of the real property, if the 17
entity possesses, directly or indirectly, the entire interest in the real 18
property. 19
(b) If the entity possesses, directly or indirectly, less than the 20
entire interest in the real property, the estimated fair market value 21
of the real property multiplied by the ownership interest in the real 22
property possessed, directly or indirectly, by the entity, expressed 23
as a percentage. 24
5. A taxable sale or transfer of a controlling interest may 25
occur in one transaction or in a series of transactions. It is 26
presumed that transactions which occur within 6 months of each 27
other are a series of transactions. 28
6. A taxable sale or transfer of a controlling interest may be 29
made by one seller or transferor or may be made by a group of 30
sellers or transferors acting in concert. It is presumed that sellers 31
or transferors who are related to each other by blood or marriage 32
within the fourth degree of consanguinity are acting in concert. 33
Sec. 9. 1. On or before the last day of the month 34
immediately following the month in which the sale or transfer of a 35
controlling interest in an entity which is subject to any of the taxes 36
imposed by section 8 of this act occurs, the person conveying the 37
interest shall file with the Department a return on a form 38
prescribed by the Department and remit to the Department any tax 39
due pursuant to section 8 of this act. The return must separately: 40
(a) Identify each parcel of real property in this State in which 41
the entity possesses, directly or indirectly, an interest, including, 42
without limitation, the county in which the parcel is located; 43
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(b) State the estimated fair market value of each parcel of real 1
property in this State in which the entity possesses, directly or 2
indirectly, an interest; and 3
(c) State the amount of tax remitted with respect to each such 4
parcel. 5
2. Unless filed electronically, returns must be signed by the 6
person required to file the return or by his or her authorized agent 7
but need not be verified by oath. 8
Sec. 10. Upon written application made before the date on 9
which payment must be made, the Department may for good cause 10
extend by 30 days the time within which a taxpayer is required to 11
pay a tax imposed by this chapter. If the tax is paid during the 12
period of extension, no penalty or late charge may be imposed for 13
failure to pay at the time required, but the taxpayer shall pay 14
interest at the rate of 1 percent per month from the date on which 15
the amount would have been due without the extension until the 16
date of payment, unless otherwise provided in NRS 360.232 or 17
360.320. 18
Sec. 11. 1. The Department shall deposit all taxes, interest 19
and penalties required to be paid pursuant to section 8 of this act 20
in the Controlling Interest Transfer Tax Account, which is hereby 21
created in the State General Fund. The State Controller, acting 22
upon the collection data furnished by the Department shall, each 23
quarter: 24
(a) Transfer from the Controlling Interest Transfer Tax 25
Account 1 percent of all taxes, interest and penalties collected with 26
respect to each county during the preceding quarter to the 27
appropriate account in the State General Fund as compensation to 28
the State for the costs of collecting the tax. 29
(b) Determine an amount of money equal to any taxes, interest 30
and penalties collected during the preceding quarter with respect 31
to each county pursuant to subsection 2 of section 8 of this act, 32
less the amount transferred to the State General Fund pursuant to 33
paragraph (a), and transfer the amount determined to the State 34
General Fund. 35
(c) Determine an amount of money equal to any taxes, interest 36
and penalties collected during the preceding quarter with respect 37
to each county pursuant to subsection 3 of section 8 of this act, 38
less the amount transferred to the State General Fund pursuant to 39
paragraph (a), and transfer the amount determined to the 40
appropriate account in the State General Fund for use as required 41
by NRS 561.355. 42
(d) Determine an amount of money equal to any taxes, interest 43
and penalties collected during the preceding quarter with respect 44
to each county pursuant to subsection 1 of section 8 of this act, 45
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less the amount transferred to the State General Fund pursuant to 1
paragraph (a), and: 2
(1) Deposit an amount equal to that portion of the proceeds 3
which is equivalent to 10 cents for each $500 of value or fraction 4
thereof in the Account for Affordable Housing created pursuant to 5
NRS 319.500. 6
(2) For proceeds collected with respect to a county whose 7
population is 700,000 or more, transfer an amount equal to that 8
portion of the proceeds which is equivalent to 60 cents for each 9
$500 of value or fraction thereof to the Intergovernmental Fund 10
and remit the money to the county treasurer for deposit in the 11
county school district’s fund for capital projects established 12
pursuant to NRS 387.328, to be held and expended in the same 13
manner as other money deposited in that fund. 14
(3) Deposit the remaining proceeds in the Local 15
Government Tax Distribution Account created by NRS 360.660 16
for credit to the respective accounts of Carson City and each 17
county. 18
2. In addition to any other authorized use of the proceeds it 19
receives pursuant to subsection 1, a county or city may use the 20
proceeds to pay expenses related to or incurred for the 21
development of tier one affordable housing and tier two affordable 22
housing. A county or city that uses the proceeds in that manner 23
must give priority to the development of tier one affordable 24
housing and tier two affordable housing for persons who are 25
elderly or persons with disabilities. 26
3. The expenses authorized by subsection 2 include, without 27
limitation: 28
(a) The costs to acquire land and development rights; 29
(b) Related predevelopment expenses; 30
(c) The costs to develop the land, including the payment of 31
related rebates; 32
(d) Contributions toward down payments made for the 33
purchase of affordable housing; and 34
(e) The creation of related trust funds. 35
4. As used in this section: 36
(a) “Tier one affordable housing” has the meaning ascribed to 37
it in NRS 278.01902. 38
(b) “Tier two affordable housing” has the meaning ascribed to 39
it in NRS 278.01906. 40
Sec. 12. The taxes imposed by section 8 of this act do not 41
apply to a transfer of the controlling interest in an entity: 42
1. To the United States, any territory or state or any agency, 43
department, instrumentality or political subdivision thereof. 44
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2. Between former spouses in compliance with a decree of 1
divorce. 2
3. To or from a trust without consideration. 3
4. Which possesses, directly or indirectly, an interest in an 4
unpatented mine or mining claim, with respect to the unpatented 5
mine or mining claim. The taxes imposed by section 8 of this act 6
remain applicable with respect to other real property which the 7
entity possess. 8
5. To a corporation or other business organization if the 9
person making the transfer owns 100 percent of the corporation or 10
organization to which the transfer is made. 11
Sec. 13. If the Department determines that any tax, penalty 12
or interest has been paid more than once or has been erroneously 13
or illegally collected or computed, the Department shall set forth 14
that fact in the records of the Department and certify to the State 15
Board of Examiners the amount collected in excess of the amount 16
legally due and the person from whom it was collected or by whom 17
it was paid. If approved by the State Board of Examiners, the 18
excess amount collected or paid must, after being credited against 19
any amount then due from the person in accordance with NRS 20
360.236, be refunded to the person or his or her successors in 21
interest. 22
Sec. 14. 1. Except as otherwise provided in NRS 360.235 23
and 360.395: 24
(a) No refund may be allowed unless a claim for it is filed with 25
the Department within 3 years after the last day of the month 26
following the month in which the overpayment was made. 27
(b) No credit may be allowed after the expiration of the period 28
specified for filing claims for refund unless a claim for credit is 29
filed with the Department within that period. 30
2. Each claim must be in writing and must state the specific 31
grounds upon which the claim is founded. 32
3. Failure to file a claim within the time prescribed in this 33
chapter constitutes a waiver of any demand against the State on 34
account of overpayment. 35
4. Within 30 days after rejecting any claim in whole or in 36
part, the Department shall serve notice of its action on the 37
claimant in the manner prescribed for service of notice of a 38
deficiency determination. 39
Sec. 15. 1. Except as otherwise provided in this section, 40
NRS 360.320 or any other specific statute, interest must be paid 41
upon any overpayment of any amount of the taxes imposed by this 42
chapter at the rate set forth in, and in accordance with the 43
provisions of, NRS 360.2937. 44
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2. If the Department determines that any overpayment has 1
been made intentionally or by reason of carelessness, the 2
Department shall not allow any interest on the overpayment. 3
Sec. 16. 1. No injunction, writ of mandate or other legal or 4
equitable process may issue in any suit, action or proceeding in 5
any court against this State or against any officer of the State to 6
prevent or enjoin the collection under this chapter of a tax 7
imposed by this chapter or any amount of tax, penalty or interest 8
required to be collected. 9
2. No suit or proceeding may be maintained in any court for 10
the recovery of any amount alleged to have been erroneously or 11
illegally determined or collected unless a claim for refund or credit 12
has been filed. 13
Sec. 17. 1. Within 90 days after a final decision upon a 14
claim filed pursuant to this chapter is rendered by the Nevada Tax 15
Commission, the claimant may bring an action against the 16
Department on the grounds set forth in the claim in a court of 17
competent jurisdiction in Carson City, the county of this State 18
where the claimant resides or maintains his or her principal place 19
of business or a county in which any relevant proceedings were 20
conducted by the Department, for the recovery of the whole or any 21
part of the amount with respect to which the claim has been 22
disallowed. 23
2. Failure to bring an action within the time specified 24
constitutes a waiver of any demand against the State on account of 25
alleged overpayments. 26
Sec. 18. 1. If the Department fails to mail notice of action 27
on a claim within 6 months after the claim is filed, the claimant 28
may consider the claim disallowed and file an appeal with the 29
Nevada Tax Commission within 30 days after the last day of the 6-30
month period. If the claimant is aggrieved by the decision of the 31
Nevada Tax Commission rendered on appeal, the claimant may, 32
within 90 days after the decision is rendered, bring an action 33
against the Department on the grounds set forth in the claim for 34
the recovery of the whole or any part of the amount claimed as an 35
overpayment. 36
2. If judgment is rendered for the plaintiff, the amount of the 37
judgment must first be credited towards any tax due from the 38
plaintiff. 39
3. The balance of the judgment must be refunded to the 40
plaintiff. 41
Sec. 19. In any judgment, interest must be allowed at the rate 42
of 3 percent per annum upon the amount found to have been 43
illegally collected from the date of payment of the amount to the 44
date of allowance of credit on account of the judgment, or to a 45
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date preceding the date of the refund warrant by not more than 30 1
days. The date must be determined by the Department. 2
Sec. 20. A judgment may not be rendered in favor of the 3
plaintiff in any action brought against the Department to recover 4
any amount paid when the action is brought by or in the name of 5
an assignee of the person paying the amount or by any person 6
other than the person who paid the amount. 7
Sec. 21. 1. The Department may recover a refund or any 8
part thereof which is erroneously made and any credit or part 9
thereof which is erroneously allowed in an action brought in a 10
court of competent jurisdiction in Carson City or Clark County in 11
the name of the State of Nevada. 12
2. The action must be tried in Carson City or Clark County 13
unless the court, with the consent of the Attorney General, orders 14
a change of place of trial. 15
3. The Attorney General shall prosecute the action, and the 16
provisions of the Nevada Revised Statutes, the Nevada Rules of 17
Civil Procedure and the Nevada Rules of Appellate Procedure 18
relating to service of summons, pleadings, proofs, trials and 19
appeals are applicable to the proceedings. 20
Sec. 22. 1. If any amount in excess of $25 has been 21
illegally determined, either by the Department or by the person 22
filing the return, the Department shall certify that fact to the State 23
Board of Examiners, and the latter shall authorize the 24
cancellation of the amount upon the records of the Department. 25
2. If an amount not exceeding $25 has been illegally 26
determined, either by the Department or by the person filing the 27
return, the Department, without certifying that fact to the State 28
Board of Examiners, shall authorize the cancellation of the 29
amount upon the records of the Department. 30
Sec. 23. Any person who willfully falsely declares the 31
estimated fair market value of real property on a return filed 32
pursuant to section 9 of this act is guilty of a misdemeanor and 33
shall pay the amount of any additional tax required on account of 34
the falsification. 35
Sec. 24. The remedies of the State provided for in this 36
chapter are cumulative, and no action taken by the Department or 37
the Attorney General constitutes an election by the State to pursue 38
any remedy to the exclusion of any other remedy for which 39
provision is made in this chapter. 40
Sec. 25. NRS 561.355 is hereby amended to read as follows: 41
561.355 1. The following fees and money must be used by 42
the Division of Plant Health and Compliance of the Department 43
only for the purposes of carrying out the provisions of this chapter 44
and chapters 552, 554, 555 and 587 of NRS: 45
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(a) Except as otherwise provided in NRS 552.095 and 555.570, 1
fees and money collected pursuant to the provisions of chapters 552, 2
555 and 587 of NRS. 3
(b) Laboratory fees collected for the diagnosis of infectious, 4
contagious and parasitic diseases of bees, as authorized by NRS 5
561.305, and as are necessary pursuant to the provisions of chapter 6
552 of NRS. 7
(c) Laboratory fees collected for the diagnosis of infectious, 8
contagious and destructive diseases of agricultural commodities, and 9
infestations thereof by pests, as authorized by NRS 561.305, and as 10
may be necessary pursuant to the provisions of chapter 554 of NRS. 11
(d) Laboratory fees collected for the survey and identification of 12
insect pests, plant diseases and noxious weeds, as authorized by 13
NRS 561.305, and as may be necessary pursuant to the provisions of 14
NRS 555.005 to 555.249, inclusive. 15
(e) Laboratory fees collected for the testing of the purity and 16
germinating power of agricultural seeds, as authorized by NRS 17
561.305, and as may be necessary pursuant to the provisions of NRS 18
587.015 to 587.123, inclusive. 19
(f) Money received from a tax on the transfer of real property 20
imposed pursuant to NRS 375.026. 21
(g) Money received from a tax on the sale or transfer of a 22
controlling interest in an entity which possesses an interest in real 23
property imposed pursuant to section 8 of this act. 24
2. The money received pursuant to paragraph (f) or (g) of 25
subsection 1 must be allocated for disbursement to each county in 26
proportion to the amount of money collected with respect to real 27
property in that county and must only be used: 28
(a) By the Department for programs on the exclusion, detection 29
and control of: 30
(1) Invasive species; and 31
(2) Endemic pests and weeds designated by the Director; and 32
(b) For grants to local governments and nonprofit organizations 33
for the control or management of such species, pests and weeds. 34
3. As used in this section: 35
(a) “Invasive species” means any living organism not native to 36
this State that may present a threat to the economy, environment or 37
public health of this State. 38
(b) “Local government” has the meaning ascribed to it in 39
NRS 237.050. 40
Sec. 26. 1. This section becomes effective upon passage and 41
approval. 42
2. Sections 1 to 25, inclusive, of this act become effective: 43
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(a) Upon passage and approval for the purpose of adopting any 1
regulations and performing any other preparatory administrative 2
tasks that are necessary to carry out the provisions of this act; and 3
(b) On July 1, 2025, for all other purposes. 4
H