AB313 - Revises provisions relating to certain taxes assessed at the registration of a motor vehicle. (BDR 32-762)

A.B. 313 - *AB313* ASSEMBLY BILL NO. 313–ASSEMBLYMEMBER KOENIG FEBRUARY 27, 2025 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions relating to certain taxes assessed at the registration of a motor vehicle. (BDR 32-762) 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; creating an exemption from the governmental services taxes on a vehicle registered by a person who is a volunteer firefighter; revising provisions relating to certain exemptions from governmental services taxes on vehicle registrations; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes the imposition of a governmental services tax for the 1 privilege of operating any vehicle upon the public highways of this State, which is 2 included in the fees to register a vehicle. (NRS 371.030, 371.040) Existing law 3 imposes the tax based on the valuation of a vehicle, which is generally determined 4 on the basis of 35 percent of the manufacturer’s suggested retail price in Nevada. 5 (NRS 371.050) Existing law provides for exemptions from the governmental 6 services tax to a surviving spouse, a person who is blind and a veteran, not to 7 exceed the determined valuations of $1,000, $3,000 and $2,000, respectively. (NRS 8 371.101, 371.102, 371.103) Section 1 of this bill creates such an exemption for a 9 person who is a volunteer firefighter, not to exceed a determined valuation of 10 $8,750. Section 1 further provides that: (1) the exemption cannot be claimed in 11 more than one county; (2) the claimant is required to file an affidavit with the 12 Department of Motor Vehicles in the county where the exemption is claimed 13 attesting that he or she is a resident of the county and a current volunteer firefighter; 14 (3) the claimant is required to provide certain verification that he or she is a 15 volunteer firefighter; (4) the exemption ends the fiscal year beginning after the 16 claimant ceases to be a volunteer firefighter; and (5) the exemption must be 17 adjusted each fiscal year based on the Consumer Price Index (All Items). 18 Existing law further provides that: (1) the governmental services tax 19 exemptions given to a surviving spouse, a person who is blind and a veteran are 20 required to be claimed annually at any time on or before the date the tax is due; and 21 (2) a claimant is required to immediately notify the Department when he or she no 22 longer qualifies for such an exemption or face a penalty. (NRS 371.105, 371.106) 23 – 2 – - *AB313* Sections 2 and 3 of this bill make these provisions applicable to a governmental 24 services tax exemption given to person who is a volunteer firefighter. 25 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 371 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. Vehicles registered by a person who is a volunteer 3 firefighter, not to exceed the amount of $8,750 determined 4 valuation, are exempt from taxation, but the exemption must not 5 be allowed to anyone but bona fide residents of this State, and 6 must be filed in but one county in this State on account of that 7 person. 8 2. The person claiming the exemption must file with the 9 Department in the county where the exemption is claimed an 10 affidavit declaring his or her residency, that he or she currently 11 serves as a volunteer firefighter and that the exemption has been 12 claimed in no other county in this State for that year. The affidavit 13 must be made before the county assessor or a notary public. After 14 the filing of the original affidavit, the county assessor shall, except 15 as otherwise provided in this subsection, mail a form for renewal 16 of the exemption to the person each year following a year in which 17 the exemption was allowed for that person. The form must be 18 designed to facilitate its return by mail by the person claiming the 19 exemption. If so requested by the person claiming the exemption, 20 the county assessor may provide the form to the person by 21 electronic means in lieu of by mail. 22 3. Upon first claiming the exemption, the claimant shall 23 furnish to the Department: 24 (a) An identification card which indicates that the claimant 25 currently serves as a volunteer firefighter; or 26 (b) A letter from the chief officer of a volunteer or 27 combination fire department certifying the claimant as a volunteer 28 firefighter. 29 4. A person is not entitled to the exemption provided by this 30 section in any fiscal year beginning after the person ceases to be a 31 volunteer firefighter. 32 5. Beginning with the Fiscal Year 2027-2028, the monetary 33 amount in subsection 1 must be adjusted for each fiscal year by 34 adding to each amount the product of the amount multiplied by 35 the percentage increase in the Consumer Price Index (All Items) 36 from December 2025 to the December preceding the fiscal year for 37 which the adjustment is calculated. 38 – 3 – - *AB313* 6. As used in this section, “volunteer firefighter” means a 1 person who serves actively in an unpaid capacity in a volunteer or 2 combination fire department within this State as a firefighter for 3 the benefit or safety of the public. 4 Sec. 2. NRS 371.105 is hereby amended to read as follows: 5 371.105 Claims pursuant to NRS 371.101, 371.102, 371.103 or 6 371.104 or section 1 of this act for tax exemption on the 7 governmental services tax and designations of any amount to be 8 credited to the Gift Account for the Veterans Home in Southern 9 Nevada or the Gift Account for the Veterans Home in Northern 10 Nevada pursuant to NRS 371.1035 must be filed annually at any 11 time on or before the date when payment of the tax is due. All 12 exemptions provided for in this section must not be in an amount 13 which gives the taxpayer a total exemption greater than that to 14 which the taxpayer is entitled during any fiscal year. 15 Sec. 3. NRS 371.106 is hereby amended to read as follows: 16 371.106 1. Whenever any vehicle ceases to be exempt from 17 taxation under NRS 371.101, 371.102, 371.103 or 371.104 or 18 section 1 of this act because the owner no longer meets the 19 requirements for the exemption provided in those sections, its owner 20 shall immediately notify the Department of the fact. 21 2. If a person fails to notify the Department as required by 22 subsection 1 and as a result of such failure is allowed a tax 23 exemption to which he or she is not entitled, there shall be added to 24 and collected with the tax otherwise due a penalty equal to double 25 the amount of the tax. If the person’s failure is fraudulent and results 26 in his or her receiving a tax exemption to which he or she is not 27 entitled, the person is also guilty of a gross misdemeanor. 28 H