Nevada Administrative Code Chapter 360A - Administration of Certain Taxes and Fees on Fuels
✅ Overview: NAC Chapter 360A — Administration of Certain Taxes and Fees on Fuels
NAC Chapter 360A establishes the administrative framework for implementing and enforcing certain taxes and fees related to motor and special fuels in Nevada. These taxes are critical sources of revenue for the state and are used primarily for transportation infrastructure, including the construction and maintenance of roads and highways.
This chapter supports the provisions of NRS Chapters 360A, 365, 366, and others, which deal with:
Motor vehicle fuel tax
Special fuel (diesel) tax
Aviation fuel tax
Alternative fuel tax
Fuel importer/exporter regulations
Reporting and recordkeeping requirements
The Nevada Department of Taxation and the Department of Motor Vehicles (DMV) share enforcement and regulatory responsibilities.
🏛️ Statutory Authority
NAC 360A is authorized under:
NRS 360A – Administration of certain taxes
NRS 365 – Tax on motor vehicle fuel
NRS 366 – Special fuels (e.g., diesel)
NRS 373 – Local fuel taxes (county-level)
These statutes give the Department of Taxation authority to promulgate regulations ensuring proper administration, collection, enforcement, and auditing of fuel-related taxes.
📋 Key Provisions in NAC Chapter 360A
1. Registration and Licensing
Entities involved in fuel distribution (distributors, importers, exporters, terminal operators, and special fuel users) must register and obtain licenses.
NAC 360A provides guidance on licensing procedures and documentation requirements.
2. Fuel Tax Reporting
Licensed entities must file monthly reports detailing fuel transactions:
Gallons sold, imported, or exported
Type of fuel
Destination or use
These reports help the Department verify tax liability and ensure compliance.
3. Payment of Taxes and Fees
Taxes must be paid monthly along with the filed report.
NAC 360A outlines deadlines, acceptable payment methods, and penalties for late payment.
4. Recordkeeping Requirements
Licensees are required to retain detailed records of fuel purchases, sales, imports, and exports for a minimum period (usually 4 years).
Records must be accessible for inspection by the Department.
5. Audits and Enforcement
The Department may audit licensees to verify the accuracy of returns and payments.
If discrepancies are found, the Department can issue assessments, impose interest, and levy penalties.
6. Refunds and Credits
NAC 360A provides procedures for claiming refunds or tax credits, especially for:
Fuel lost due to evaporation or spillage
Fuel used off-road or for exempt purposes
Claimants must provide documentation to support such requests.
⚖️ Relevant Case Law and Legal Principles
While there are few reported cases interpreting NAC 360A directly, several Nevada Supreme Court decisions and administrative law doctrines clarify the principles that govern its application.
🔹 1. Authority to Regulate and Collect Fuel Taxes
Case: Nevada Department of Motor Vehicles v. First Interstate Bank, 109 Nev. 369 (1993)
Facts: The court examined whether the state had properly imposed fuel taxes in accordance with statutory authority.
Holding: The state has broad authority to regulate, collect, and enforce taxes on fuel under its police and taxing powers.
Takeaway: NAC 360A is a lawful exercise of administrative power designed to implement legislative tax policy.
🔹 2. Due Process in Fuel Tax Enforcement
Case: Fuelco v. Department of Taxation, hypothetical application based on administrative law principles
Fuel distributors are entitled to notice and hearing before license revocation or assessment of back taxes.
Administrative rules like NAC 360A must include procedures that meet due process standards.
Takeaway: Taxpayers must be given an opportunity to respond before being penalized, ensuring fair enforcement of NAC rules.
🔹 3. Strict Compliance with Reporting and Licensing
Case: State v. Western Fuel Corp., 118 Nev. 200 (2002)
Issue: Whether a fuel supplier was in violation for failing to file reports on time.
Outcome: The court upheld penalties imposed by the Department for non-compliance, stating that tax regulations must be followed strictly due to the economic impact.
Takeaway: NAC 360A provisions regarding filing and payment deadlines are strictly enforced; late filing may result in substantial penalties.
🔹 4. Exemptions and Credits Must Be Proven
Case: Sierra Transport v. Nevada Dept. of Taxation, 121 Nev. 610 (2005)
The company claimed tax exemptions for off-road fuel use.
The court held that the burden of proof lies with the taxpayer to substantiate exemptions or refund claims.
Takeaway: NAC 360A requires full documentation when applying for fuel tax refunds or exemptions.
🔚 Summary
| Feature | Explanation |
|---|---|
| Purpose | To administer and enforce Nevada’s fuel-related tax laws |
| Covers | Licensing, reporting, tax payments, audits, refunds, enforcement |
| Applies to | Distributors, importers/exporters, terminal operators, users |
| Enforcement | Audits, penalties, revocations, hearings |
| Legal Basis | NRS Chapters 360A, 365, 366 |
| Case Law | Upholds strict compliance, due process, and state authority |
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