Correspondence and speech transcript regarding Nevada Senate Bill #154, on the taxation of commercial amusement, 1983

February 18, 1983 Enclosed you will find a copy of Senate Bill #154, which has been submitted to the State Senate. We suggest that you do whatever possible to defeat it. Sincerely, NEVADA THEATRE CORPORATION LPlreosydi dKeanttz LK: rt COPIES SENT TO: Mr. Horst Schmidt Cragin Industries 5201 W. Charleston Blvd. Las Vegas, Nevada 89102 Mr. Jack Myhill Syufy Enterprises 150 Golden Gate Ave. San Francisco, CA 94102 Mr. Pat Agosta Nevada Drive-in Theatre 4337 W. Indian School Rd. Suite DI Phoenix, Arizona 850 31 Mr. Erwin Glass Four Star Theatre 112 N. 4th St. Las Vegas, Nevada 89101 Challenge Games of Nevada 3140 Polaris Ave. Las Vegas, Nevada 89102 ATTN: Sheila Mr. Bob Roberts Roberts & Co. 3909 S. Maryland Pkwy. Las Vegas, Nevada 89109 fffPl 1SS3 S . B . 1 5 4 SENATE BILL NO. 154?COMMITTEE ON TAXATION FEBRUARY 14, 1983 \ Referred to Committee on Taxation SUMMARY?Imposes stale taxes on commercial amusement devices and on other forms of entertainment. (BDR 32-644) FISCAL NOTE: Effect on Local Government: No. E f f e c t on the State or on industrial Insurance: No. EXPLANATION?Mailer in italics ii new; mailer in bracken [ ] is material lo be omilted. AN ACT relating to taxation; imposing a tax on commercial amusement devices and a tax on gross receipts derived from admission and other charges at establishments where entertainment is furnished; providing the rates of these taxes and for their collection and enforcement; providing penalties; and providing other matters properly relating thereto. THE PEOPLE OF THE STATE OF NEVADA. REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 1 Section 1. Chapter 364 of NRS is hereby amended by adding 2 thereto the provisions set forth as sections 2 to 17, inclusive, of this 3 act. 4 Sec. 2. As used in sections 2 to 11, inclusive, of this act, unless the 5 context otherwise requires, the words and terms defined in sections 3 6 and 4 of this act have the meanings ascribed to them in those sections. 7 Sec. 3. 1. "Commercial amusement device" means any device 8 which: 9 (a) Consists of mechanical, electrical or'electronic parts, or any com- 10 bination of them; 11 (b) Is designed for the amusement of the player or operator and is 12 complete in itself, having as its purpose the production or creation of 13 a game of skill, amusement, entertainment or test of strength, whether 14 or not any motivating force involved is furnished by the player or the 15 device. 16 (c) Is played or operated for a consideration, whether or not that 17 consideration is paid by inserting or depositing any coin, slug, token or 18 thing of value into the device. V . 2 1 2. The term includes any electronic "video game" or other amuse- 2 men/ device which is part of or connected to any device or machine 3 and which is played or operated in connection with the purchase of any 4 service or tangible personal property from that device or machine. 5 3. The' term does not include: ' . 6 (a) Any device for which a gaming license is required. 7 (b) Any device which is owned for personal use in the home of the 8 owner. 9 Sec. 4. 1. "Display or operate" means to exhibit a commercial 10 amusement device for use or operation by the public for a consider- 11 at ion. 12 2. The term includes the use or operation of a commercial amuse- 13 ment device by the members of any private club, lodge, fraternal soci- 14 ety or other similar organization whose membership is limited to a 15 portion of the public. 16 Sec. 5. J. There is hereby imposed upon each commercial amuse- 17 ment device displayed or operated in this stae an annuaI tax of S250. 18 If a commercial amusement device is replaced by another, the replace- 19 ment is not considered a different amusement device for the purpose of 20 imposing this tax. 21 2. The department of taxation shall collect the tax: 22 (a) Annually on or before June 20, for the ensuing fiscal year begin- 23 ning July 1, from the owner or operator of the amusement device 24 whose operation is continuing. ? 25 (b) In advance from an owner or operator who begins operation or 26 puts additional commercial amusement devices into play during the fis- 27 cat year, prorated monthly after July 31. 28 Sec. 6. The department of taxation shall adopt regulations neces- 29 sary for the administration of sections 2 to 11, inclusive, of this act, 30 including without limitation, regulations which provide for the design, 31 production and placement of stickers or other evidences of payment of 32 the lax. 33 Sec. 7. " 1. In order to obtain evidence of any violation of sections 34 2 to 11. inclusive, of this act, the department of taxation, its agents, 35 and all peace officers and revenue-collecting officers of this state may 36 visit and inspect any place where they may have reason to believe any 37 commercial amusement device upon which the tax has not been paid is 38 displayed or operated. 39 2. Sheriffs, within their counties, and all other police officers of 40 this state shall assist in the enforcement of sections 2 to 11, inclusive, 41 of this act without further compensation. 42 Sec. 8. It is* unlawful for any person to display or operate a com- 43 mercial amusement device on which the tax has not been paid as i % 1 required by sections 2 to 11, inclusive, of this act and the regulations 2 adopted under them. ' 3 Sec. 9. Any person who, with intent to defraud the state: 4 1. Alters, forges or counterfeits any sticker or other evidence of 5 payment provided for in sections 2 to 11, inclusive, of this act; or 6 2. Has in his possession any forged, counterfeit, spurious or altered 7 sticker or other evidence of payment, with intent to use it, knowing or 8 having reason to know it to be forged, counterfeit, spurious or altered, 9 is guilty of a misdemeanor on the first offense and upon the second or 10 subsequent offense shall be punished by a fine of not more than 11 $10,000, or by imprisonment in the state prison for not less than 1 year 12 nor more than 10 years, or by both fine and imprisonment. 13 Sec. 10. Except as otherwise expressly provided in sections 2 to 11, 14 inclusive, of this act, any person who violates any of the provisions of 15 sections 2 to 11, inclusive, of this act, or knowingly violates any lawful 16 regulation of the department of taxation adopted under those sections 17 is guilty of a misdemeanor. 18 Sec. 11. 1. All taxes imposed and all amounts of tax required to 19 be paid to the state under sections 2 to 11, inclusive, of this act must 20 be paid to the department of taxation in the form of remittances pay- 21 able to the department. 22 2. The department shall deposit the payments with the state trea- 23 surer for credit to the account for the tax on commercial amusement 24 devices in the state general fund. 25 Sec. 12. There is hereby imposed a tax of 10 percent upon the 26 gross receipts of any person who derives them from the amounts 27 charged for: 28 1. Admission, whether by single ticket, season ticket or subscrip- 29 tior\y and including a cover charge for seats or tables; and 30 2. Food, drink, service and merchandise, 31 at any establishment where any kind of entertainment is provided to 32 members, guests or patrons. 33 Sec. 13. The tax imposed by section 12 of this act does not apply 34 to: 35 1. Any establishment where entertainment is provided solely by: 36 (a) Music produced by machine; 37 (b) Radio; or 38 (c) Television, except "closed<ircuit" television, 39 and no dancing is permitted. 40 2. Any establishment upon which a tax is imposed under Title 41 41 ofNRS. 42 3. Any establishment where the member, guest or patron is a par- 43 ticipant in the entertainment, as in, by way of example and not limita- 44 lion, bowling alleys, swimming pools, skating rinks and tennis courts. 1 4. Gross receipts described in section 12 of this act which are 2 devoted exclusively to charitable, religious or educational purposes or 3 inure exclusively to the benefit of: 4 (a) A volunteer fire department, nonprofit rescue organization, 5 museum or historical society; 6 (b).Civic, service, fraternal or veteran's organizations; or 7. (c) Any agricultural fair, if no part of the net earnings thereof inure 8 to the benefit of any stockholder or member of the association con- 9 ducting the fair and those earnings are used for the improvement, 10 maintenance and operation of the fair. 11 5. The gross receipts described in section 12 of this act of nonprofit 12 groups or associations organized to present or offer musical or theatrf- 13 cat events or an annual series of scheduled musical concerts. 14 Sec. 14. /. The department of taxation shall collect the tax 15 imposed by section 12 of this act. 16 * 2. Remittances due the department for gross receipts derived during 17 any calendar month are payable to the department not later than the 18 10th day of the following calendar month. Any person who fails to ppy 19 the tax due on or before the 10th day of the month shell pay a penalty 20 of 5 percent of the tax in addition to the tax, with interest at the rate 21 of 1 percent per month or fraction thereof from the date on which the 22 tax becomes due until the date of payment. 23 Sec. 15. I. The department of taxation shall adopt regulations 24 necessary for the administration of sections 12 to 17, inclusive, of this 25 act, including without limitation, regulations which prescribe: 26 (a) The form and contents of reports which must be made by tax- 27 payers and the time for making those reports. 28 (b) Requirements for maintaining and preserving records. 29 2. The department may audit the records of any person liable for 30 the tax imposed by section 12 of this act to determine that he has com- 31 plied with the provisions of sections 12 to 17, inclusive, of this act. 32 Sec. 16. Any person who violates any of the provisions of sections 33 12 to 15, inclusive, of this act or knowingly violates any lawful regula- 34 lion of the department of taxation adopted under those sections is 35 guilty of a misdemeanor. 36 Sec. 17. 1. AH taxes imposed and all amounts of tax required to 37 be paid to the state under sections 12 to 15, inclusive, of this act must 38 be paid to the department of taxation in the form of remittances pay- 39 able to the department. 40 2. The department shall deposit the payments with the state trea- 41 surer for credit to the account for the tax on entertainment in the state 42 general fund. ?