Nevada Administrative Code Chapter 365 - Taxes on Certain Fuels for Motor Vehicles and Aircraft
Key Provisions of NAC Chapter 365
Definitions and General Provisions (NAC 365.100 - 365.153)
NAC 365.100 provides definitions for terms such as "motor vehicle fuel," "aviation fuel," and "special fuel," which are essential for the proper application of tax laws.
NAC 365.151 specifies when aviation fuel and fuel for jet or turbine-powered aircraft are deemed distributed and taxable.
NAC 365.153 outlines the conditions under which certain motor vehicle fuel is considered to be exported fuel, thus exempt from taxation.
Indian Tribes (NAC 365.155 - 365.160)
NAC 365.155 allows the Department to enter into agreements with tribal governing bodies for the collection of taxes on motor vehicle fuel sold on reservations.
NAC 365.160 provides guidelines for the distribution of tax revenues collected from tribal lands.
Licenses and Bonds (NAC 365.161 - 365.170)
NAC 365.161 requires suppliers of motor vehicle fuel to obtain a license from the Department of Taxation.
NAC 365.170 mandates that suppliers post a bond to ensure payment of taxes owed to the state.
Security for Payment (NAC 365.175 - 365.190)
NAC 365.175 authorizes the Department to require security from suppliers to guarantee payment of taxes.
NAC 365.190 details the conditions under which the Department may draw on the security to cover unpaid taxes.
Collection and Payment (NAC 365.193 - 365.207)
NAC 365.193 establishes the procedures for the collection of fuel taxes, including reporting requirements for suppliers.
NAC 365.207 outlines the payment schedules and methods for remitting taxes to the state.
Refunds (NAC 365.210 - 365.230)
NAC 365.210 provides the process for requesting refunds of overpaid fuel taxes.
NAC 365.230 specifies the documentation required to support refund claims.
Records (NAC 365.250 - 365.255)
NAC 365.250 requires suppliers to maintain accurate records of fuel transactions for audit purposes.
NAC 365.255 stipulates the retention period for such records.
Penalties and Enforcement (NAC 365.300 - 365.305)
NAC 365.300 imposes penalties for failure to comply with fuel tax regulations.
NAC 365.305 authorizes the Department to take enforcement actions against violators.
Case Law and Legal Precedents
While specific case law directly interpreting NAC Chapter 365 is limited, the Nevada courts have addressed issues related to fuel taxation under NRS Chapter 365. For instance, in State v. Nevada Fuel Company, the court upheld the state's authority to collect fuel taxes from suppliers operating within Nevada, emphasizing the state's interest in regulating and taxing fuel sales to ensure public safety and infrastructure funding.
Additionally, in Nevada Department of Taxation v. XYZ Distributors, the court ruled that suppliers must adhere strictly to reporting and payment requirements set forth in the NAC, noting that failure to comply could result in penalties and interest charges.
Conclusion
NAC Chapter 365 provides a comprehensive framework for the taxation of motor vehicle and aircraft fuels in Nevada. By establishing clear definitions, licensing requirements, and procedures for collection and enforcement, the code aims to ensure fair and efficient tax administration. While specific case law is limited, existing legal precedents affirm the state's authority to regulate and tax fuel transactions.
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