AB219 - Revises provisions relating to the use of the proceeds of the tax on live entertainment. (BDR 32-652)

EXEMPT (Reprinted with amendments adopted on April 18, 2025) FIRST REPRINT A.B. 219 - *AB219_R1* ASSEMBLY BILL NO. 219–ASSEMBLYMEMBERS WATTS; CONSIDINE, D’SILVA, GOULDING AND NGUYEN PREFILED FEBRUARY 3, 2025 ____________ JOINT SPONSORS: SENATORS DOÑATE; AND NGUYEN ____________ Referred to Committee on Revenue SUMMARY—Revises provisions relating to the use of the proceeds of the tax on live entertainment. (BDR 32-652) FISCAL NOTE: Effect on Local Government: No. 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; revising the amount of the tax on live entertainment that is required to be distributed to the Nevada Arts Council; requiring the Nevada Arts Council to use a portion of such distributions to make grants to certain persons; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law imposes an excise tax on admission to any facility in this State 1 where live entertainment is provided, at a rate of 9 percent of the admission charge. 2 Under existing law, the tax is required to be added to the purchase of the admission 3 and paid by the purchaser at the time of purchase. (NRS 368A.200) If the live 4 entertainment is provided at a licensed gaming establishment, the person licensed to 5 conduct gaming at the establishment is required to pay the tax to the Nevada 6 Gaming Control Board. If the live entertainment is not provided at a licensed 7 gaming establishment, the person collecting the tax from purchasers is required to 8 remit the tax to the Department of Taxation. (NRS 368A.110, 368A.140) Existing 9 law requires the Board and the Department to deposit all taxes, interest and 10 penalties received from the excise tax on live entertainment in the State Treasury 11 for credit to the State General Fund, except that, on or before October 1 of each 12 year, the Department is required to deposit $150,000 from the taxes, interest and 13 penalties it receives in the State Treasury for credit to the Nevada Arts Council as a 14 continuing appropriation. (NRS 368A.220) This bill revises the amount of the 15 excise tax on live entertainment that is required to be deposited in the State 16 Treasury for credit to the Nevada Arts Council by requiring that: (1) an amount 17 equal to 1 percent of such taxes, and the interest and penalties on such taxes, 18 – 2 – - *AB219_R1* received by the Board and the Department in the immediately preceding fiscal year 19 be deposited in the State Treasury for credit to the Nevada Arts Council; and (2) 20 any additional amount of such taxes, and the interest and penalties on such taxes, be 21 deposited in the State Treasury for credit to the State General Fund. This bill 22 requires the Nevada Arts Council to use at least 90 percent of the amount of such 23 taxes credited to the Nevada Arts Council to make grants to artists and local arts 24 agencies in this State. This bill states the intent of the Legislature that the amount of 25 such taxes credited to the Nevada Arts Council not be used to replace or supplant 26 funding available from other sources. 27 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 368A.220 is hereby amended to read as 1 follows: 2 368A.220 1. Except as otherwise provided in this section: 3 (a) Each taxpayer who is a licensed gaming establishment shall 4 file with the Board, on or before the 15th day of each month, a 5 report showing the amount of all taxable receipts for the preceding 6 month or the month in which the taxable events occurred. The report 7 must be in a form prescribed by the Board. 8 (b) All other taxpayers shall file with the Department, on or 9 before the last day of each month, a report showing the amount of 10 all taxable receipts for the preceding month. The report must be in a 11 form prescribed by the Department. 12 2. The Board or the Department, if it deems it necessary to 13 ensure payment to or facilitate the collection by the State of the tax 14 imposed by NRS 368A.200, may require reports to be filed not later 15 than 10 days after the end of each calendar quarter. 16 3. Each report required to be filed by this section must be 17 accompanied by the amount of the tax that is due for the period 18 covered by the report. 19 4. Except as otherwise provided in this subsection, the Board 20 and the Department shall deposit all taxes, interest and penalties 21 they receive pursuant to this chapter in the State Treasury for credit 22 to [the State General Fund. On or before October 1 of each year, the 23 Department shall deposit $150,000 from the taxes, interest and 24 penalties it receives pursuant to this chapter in the State Treasury for 25 credit to the] : 26 (a) The Nevada Arts Council created by NRS 233C.025 [.] until 27 the amount deposited in the State Treasury for credit to the 28 Nevada Arts Council is equal to 1 percent of all taxes, interest and 29 penalties received by the Department and the Board pursuant to 30 this chapter in the immediately preceding fiscal year. [The] At 31 least 90 percent of the amount deposited in the State Treasury for 32 credit to the Nevada Arts Council pursuant to this [subsection] 33 – 3 – - *AB219_R1* paragraph [is hereby authorized for expenditure] must be used by 1 the Nevada Arts Council [as a continuing appropriation.] to provide 2 grants to artists and local arts agencies in this State. 3 (b) The State General Fund after the requirement of 4 paragraph (a) has been satisfied. 5 5. It is the intent of the Legislature that money deposited in 6 the State Treasury for credit to the Nevada Arts Council pursuant 7 to this section not be used to replace or supplant funding available 8 from other sources, including, without limitation, legislative 9 appropriations. 10 6. As used in this section, “local arts agency” means a public 11 or private nonprofit organization with the primary purpose of 12 making arts and culture more accessible to the public by 13 supporting local artists, art programming or local organizations 14 focused on arts and culture. 15 Sec. 2. This act becomes effective on July 1, 2025. 16 H