Nevada Administrative Code Chapter 366 - Tax on Special Fuel
🔹 General Provisions (NAC 366.005)
NAC 366.005 provides definitions essential for interpreting the regulations, such as:
"Special fuel": Any fuel used for the propulsion of motor vehicles, excluding gasoline.
"Dyed special fuel": Special fuel to which a dye has been added to indicate it is exempt from certain taxes.
🔹 Imposition of Tax (NAC 366.190)
NAC 366.190 mirrors NRS 366.190, imposing an excise tax on the sale or use of special fuels. The tax rates are:
Diesel: $0.23 per gallon.
Liquefied Petroleum Gas (LPG): $0.22 per gallon.
Compressed Natural Gas (CNG): $0.21 per gallon.
These rates are subject to change and may vary based on legislative amendments.
🔹 Exemptions (NAC 366.200)
Certain uses of special fuel are exempt from taxation under NAC 366.200, including:
Governmental Use: Sales to federal, state, or local government entities.
Public Transportation: Sales to entities operating public transportation systems.
Special Mobile Equipment: Sales for equipment not primarily used on highways.
Exemptions require proper documentation and approval from the Nevada Department of Taxation.
🔹 Collection and Payment (NAC 366.207)
NAC 366.207 outlines the responsibilities of special fuel suppliers regarding tax collection:
Collection: Suppliers must collect the applicable tax at the time of sale.
Exempt Sales: Suppliers should not collect tax on sales to exempt entities, provided proper documentation is presented.
Recordkeeping: Suppliers must maintain records of all transactions for audit purposes.
Failure to comply with these provisions may result in penalties.
🔹 Penalties and Enforcement (NAC 366.400)
NAC 366.400 establishes penalties for violations of the special fuel tax regulations:
Fraudulent Use: Imposing taxes on dyed fuel or using dyed fuel for taxable purposes can lead to fines and license suspensions.
Non-compliance: Failure to remit collected taxes or maintain required records may result in administrative actions.
The Nevada Department of Taxation enforces these regulations and has the authority to take disciplinary actions against violators.
🔹 Case Law
While specific case law directly interpreting NAC 366 is limited, general principles of administrative law apply:
Chevron Deference: Courts generally defer to the agency's interpretation of its own regulations unless it is unreasonable.
Due Process: Entities subject to penalties must be afforded notice and an opportunity to contest actions taken against them.
These principles ensure that the enforcement of special fuel tax regulations is fair and consistent with legal standards.
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