S.B. 200
- *SB200*
SENATE BILL NO. 200–SENATOR HANSEN
FEBRUARY 11, 2025
____________
Referred to Committee on Revenue and
Economic Development
SUMMARY—Authorizes, under certain circumstances, the
reimbursement of costs incurred by certain counties
related to certain activities that are subject to the
excise tax on live entertainment. (BDR 32-115)
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, under certain
circumstances, the reimbursement of costs incurred by
certain smaller counties related to certain activities
provided by a tax-exempt organization or nonprofit
corporation that are subject to the excise tax on live
entertainment; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
With certain exceptions, existing law imposes an excise tax on admission to 1
certain areas or premises, whether indoor or outdoor, where live entertainment is 2
provided. (Chapter 368A of NRS) Under existing law, with certain exceptions, all 3
taxes, interest and penalties received from the tax on live entertainment are required 4
to be deposited in the State Treasury for credit to the State General Fund. (NRS 5
368A.220) Depending on the number of tickets that are offered for sale or other 6
distribution, the tax on live entertainment does not apply under existing law to 7
certain activities provided by a nonprofit religious, charitable, fraternal or other 8
organization that qualifies as a tax-exempt organization pursuant to certain federal 9
law or a nonprofit corporation organized or existing under certain state law. (NRS 10
368A.090, 368A.200) 11
If such a tax-exempt organization or nonprofit corporation provides an activity 12
that is taxable as live entertainment in a county whose population is less than 9,000 13
(currently Esmeralda, Eureka, Lander, Lincoln, Mineral, Pershing and Storey 14
Counties) and the number of tickets to the activity offered for sale or other 15
distribution is 15,000 or more, this bill, with certain exceptions, authorizes the 16
board of county commissioners of the county to submit an application to the 17
Department of Taxation for reimbursement of costs incurred by the county related 18
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to the activity. This bill prohibits such a board of county commissioners from 19
requesting reimbursement for: (1) any costs related to the activity that were paid 20
for, or for which the county was reimbursed, by the tax-exempt organization or 21
nonprofit corporation; (2) indirect or incidental costs incurred by the county related 22
to the activity in an amount more than 20 percent of the total direct costs incurred 23
by the county related to the activity; and (3) more than $750,000 in total direct, 24
indirect and incidental costs incurred by the county in a fiscal year related to 25
activities for which the county is authorized to apply for reimbursement of costs 26
under this bill. Finally, this bill: (1) requires the Executive Director of the 27
Department of Taxation to review any such application for completeness and 28
compliance with the requirements of this bill and to submit any complete and 29
compliant application to the Nevada Tax Commission for approval or denial; (2) 30
authorizes the payment of the amount of the reimbursement approved by the 31
Nevada Tax Commission to the applicable county from the State General Fund; and 32
(3) authorizes a board of county commissioners to appeal any denial of such an 33
application by the Nevada Tax Commission. 34
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 a new section to read as follows: 2
1. Except as otherwise provided in this section, if a nonprofit 3
religious, charitable, fraternal or other organization that qualifies 4
as a tax-exempt organization pursuant to 26 U.S.C. § 501(c), or a 5
nonprofit corporation organized or existing under the provisions 6
of chapter 82 of NRS, provides an activity that is taxable under 7
this chapter in a county whose population is less than 9,000 and 8
the number of tickets to the activity offered for sale or other 9
distribution is 15,000 or more, the board of county commissioners 10
of the county may submit an application to the Department for 11
reimbursement of costs that were incurred by the county related to 12
the activity. 13
2. Any application submitted by a board of county 14
commissioners pursuant to this section: 15
(a) Must be submitted to the Department, on a form prescribed 16
by the Department, not later than 90 days after the date on which 17
the activity concludes. 18
(b) Must include, without limitation: 19
(1) An itemized list of any direct costs incurred by the 20
county related to the activity for which the county is applying for 21
reimbursement; 22
(2) An itemized list of any costs related to the activity that 23
were paid for, or for which the county was reimbursed, by the tax-24
exempt organization or nonprofit corporation that provided the 25
activity; and 26
(3) Any other information required by the Department. 27
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(c) May include an itemized list of indirect or incidental costs 1
incurred by the county related to the activity for which the county 2
is applying for reimbursement. 3
3. A board of county commissioners shall not request 4
reimbursement pursuant to this section for: 5
(a) Any costs related to the activity that were paid for, or for 6
which the county was reimbursed, by the tax-exempt organization 7
or nonprofit corporation that provided the activity. 8
(b) Indirect or incidental costs incurred by the county related 9
to the activity in an amount that exceeds 20 percent of the total 10
direct costs incurred by the county related to the activity. 11
(c) More than $750,000 in total direct, indirect and incidental 12
costs that were incurred by the county in any 1 fiscal year related 13
to activities for which the county is authorized to apply for 14
reimbursement of costs pursuant to this section. 15
4. The Executive Director shall review any application 16
submitted pursuant to this section to determine whether the 17
application is complete and complies with the requirements of this 18
section. If the Executive Director requests any additional 19
information relating to the application from the board of county 20
commissioners, the board of county commissioners must submit 21
such information not later than 15 days after the Executive 22
Director makes such a request. 23
5. If the Executive Director determines that an application 24
submitted pursuant to this section is complete and complies with 25
the requirements of this section, the Executive Director shall 26
submit the application to the Nevada Tax Commission for 27
approval or denial. If the Nevada Tax Commission: 28
(a) Approves the application, the State Controller shall 29
transfer the amount of the reimbursement approved by the Nevada 30
Tax Commission from the State General Fund to the county 31
treasurer of the county that submitted the application for deposit 32
in the county general fund. 33
(b) Denies the application, the board of county commissioners 34
that submitted the application may appeal the denial, in writing, to 35
the Nevada Tax Commission within 30 days after the denial of the 36
application. The board of county commissioners may not appeal 37
the denial of an application pursuant to this paragraph more than 38
once. 39
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