Nac: Chapter 366 - Tax On Special Fuel

Link to law: http://www.leg.state.nv.us/nac/NAC-366.html
Published: 2015

[Rev. 7/15/2015 11:20:36 AM]

[NAC-366 Revised Date: 8-15]

CHAPTER 366 - TAX ON SPECIAL FUEL

GENERAL PROVISIONS

366.005            Definitions.

366.0065          Special mobile equipment:

“Incidentally operated or moved upon a highway” interpreted; vehicles not

specified in statutory definition.

366.0066          When special fuel is considered to

be exported fuel.

LICENSES

366.0067          Application for license: Federal

identification number required.

366.0068          Special fuel exporters: Licensure;

exportation to additional jurisdictions.

366.0069          Special fuel transporters:

Licensure; expiration, suspension or revocation of license; prohibited acts;

administrative fines.

366.007            Refusal, suspension, cancellation

or revocation of license: Grounds; requests for informal review and

administrative hearing.

366.0075          Expiration of license; application

for renewal; administrative fine.

366.008            Certain carriers required to obtain

temporary permits for special fuel.

366.009            Sale of special fuel to certain

suppliers or dealers without collecting tax prohibited.

SECURITY FOR PAYMENT

366.010            Amount required for initial 2 years

of operation.

366.020            Amount required for years following

initial 2 years of operation.

366.030            Request for reduction in amount

required.

366.035            Reinstatement of original

requirement following reduction in amount: “Lack of faithful performance”

interpreted.

366.040            Amount required for habitually

delinquent supplier or dealer.

366.050            Amount required after notification

of cancellation of surety bond.

366.060            Bond required from habitually

delinquent special fuel user.

COLLECTION AND PAYMENT

366.090            Electronic submission of tax

return: General requirements; receipt.

366.093            Electronic submission of tax

return: Submission and approval of application.

366.098            Delinquent filing fees, penalties

and interest: Date of delivery of tax return; amended tax return.

366.100            Date when payment is deemed

received.

366.102            Problems with mail service

considered when determining timeliness of payment.

366.106            Deficiency in tax return deemed

failure to file.

366.108            Retention of fee for collecting tax

prohibited under certain circumstances.

REFUNDS

366.210            Fuel consumed off public highways

of this State.

366.220            Fuel consumed by vehicle with

auxiliary equipment: Standard refund.

366.222            Fuel consumed by vehicle with

auxiliary equipment: Request for refund based on actual use of auxiliary

equipment.

366.224            Fuel consumed by vehicle with

auxiliary equipment: Request for refund based on average consumption of fuel

used to operate auxiliary equipment for fleet of vehicles.

366.226            Fuel consumed by vehicle with

auxiliary equipment: Requirements to obtain, eligibility for, maximum amount of

and application of refund.

366.230            Fuel which has not been dyed used

to operate certain vehicles with refrigeration units.

366.240            Fuel used to operate vehicle in

idle not exempt.

366.250            Applications for and restrictions

on refunds.

RECORDS

366.300            Records of shipment: Contents.

366.310            Records of shipment: Compliance

with requirement concerning color and concentration of dye.

366.315            Records of exporter: Form and

contents.

366.320            Records of transporter: Form and

contents.

INDIAN TRIBES

366.350            Agreement with governing body of

tribe for collection of taxes.

366.355            Taxable sales on reservation:

Collection of tax by supplier; refund of tax to tribe.

PENALTIES AND ENFORCEMENT

366.400            Violation of statute, regulation or

order: Imposition, amount and payment of administrative fine.

366.410            Fraudulent use of special fuel:

Imposition, amount, reduction and payment of administrative fine.

366.420            Failure of seller or distributor to

control access to dyed special fuel: Imposition, amount and payment of

administrative fine.

366.430            Order to seal special fuel pump or

metered pipes and hoses of rack: Issuance; delivery to sheriff.

MISCELLANEOUS PROVISIONS

366.800            Fee for issuance of identifying

device.

 

 

GENERAL PROVISIONS

      NAC 366.005  Definitions. (NRS 366.110)  As used

in this chapter, unless the context otherwise requires:

     1.  “Apportioned” means that a commercial

vehicle:

     (a) Is registered in a manner that authorizes the

vehicle to travel in more than one jurisdiction, as indicated by the list of

jurisdictions on the certificate of registration; and

     (b) Pays registration fees based on the percentage

of operation in each jurisdiction.

     2.  “Base-plated” means that a vehicle is

registered in the State of Nevada and displays a Nevada license plate.

     3.  “Department” means the Department of

Motor Vehicles.

     4.  “Export” means to sell or distribute

outside this State special fuel or other petroleum products that are received

in this State. The term does not include selling or distributing special fuel

or other petroleum products within a reservation.

     5.  “Good standing” means that a taxpayer is

in compliance with the rules and regulations of the Department and does not owe

any payments or delinquent tax returns to any state, district, territory or

possession of the United States, or a foreign country.

     6.  “Governing body” means the governmental

entity that has the authority to make decisions on behalf of a tribe.

     7.  “Habitually delinquent” means the

commission by a special fuel user, special fuel supplier or special fuel dealer

of any of the following violations at least twice within 1 year or any two of

the following violations at least once within 1 year:

     (a) The failure to file a monthly tax return during

the period prescribed in NRS 366.380,

366.383 or 366.386, unless the Department

finds that:

          (1) The failure was caused by circumstances

beyond the control of the special fuel user, special fuel supplier or special

fuel dealer and occurred notwithstanding the exercise of ordinary care; and

          (2) The special fuel user, special fuel

supplier or special fuel dealer has paid all penalties and interest imposed by

the Department because of the failure to file the tax return during the

prescribed period.

     (b) The failure to submit to the Department payment

of the tax on special fuel collected pursuant to NRS 366.540 during the period

prescribed in that section.

     (c) The failure to submit to the Department the

payment of any additional or estimated assessments imposed by the Department

pursuant to NRS 360A.060, 360A.100, 360A.120 or 360A.130 during the period

prescribed in the relevant section.

     8.  “Motor vehicle fuel” has the meaning

ascribed to it in NRS 365.060.

     9.  “Other petroleum products” includes any

petroleum-based substance, other than motor vehicle fuel or special fuel, that

is used in the propulsion of motor vehicles, motor boats or aircraft,

including, without limitation, fuel for jet or turbine-powered aircraft.

     10.  “Reservation” means any land that:

     (a) Is located within the boundaries of this State;

and

     (b) Is set aside for use by a tribe, including,

without limitation:

          (1) An Indian reservation;

          (2) An Indian colony;

          (3) Any land which is owned in fee by or held

in trust for a tribe; and

          (4) Any other land which is under the

jurisdiction of a tribe.

     11.  “Retailer” has the meaning ascribed to

it in NRS 366.058.

     12.  “Special fuel” has the meaning ascribed

to it in NRS 366.060.

     13.  “Special fuel dealer” has the meaning

ascribed to it in NRS 366.062.

     14.  “Special fuel exporter” has the meaning

ascribed to it in NRS 366.065.

     15.  “Special fuel supplier” has the meaning

ascribed to it in NRS 366.070.

     16.  “Special fuel transporter” has the

meaning ascribed to it in NRS

366.075.

     17.  “Special fuel user” has the meaning

ascribed to it in NRS 366.080.

     18.  “Tribal member” includes an enrolled

member of a tribe.

     19.  “Tribe” means any tribe, band, nation or

group of Indians that is recognized by the Federal Government as having a

government-to-government relationship with the United States.

     (Supplied in codification; A by Dep’t of Motor Veh.

& Pub. Safety, 3-28-96; R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R106-01,

12-17-2001; R144-03, 1-16-2004; R150-08, 12-17-2008)

      NAC 366.0065  Special mobile equipment: “Incidentally operated or moved upon a

highway” interpreted; vehicles not specified in statutory definition. (NRS 366.085, 366.110, 366.203)

     1.  As used in NRS 366.085, the Department will

interpret the term “incidentally operated or moved upon a highway” to mean the

operation of:

     (a) A motor vehicle in an emergency situation, as

determined by emergency personnel, including, without limitation, a law

enforcement agency or other appropriate authority;

     (b) Construction equipment to patch a roadway that

is operated subject to the terms of a contract for a specific project;

     (c) Snow removal equipment to clear snow from

highways during or immediately following inclement weather; or

     (d) Special mobile equipment on a public highway

that is not a controlled-access highway as defined in NRS 484A.060, if the special

mobile equipment travels not more than 5 miles from the point at which the

special mobile equipment initially entered the public highway.

     2.  As used in NRS 366.085, the term “special

mobile equipment” does not include:

     (a) Any truck that:

          (1) Is used as a water truck on any portion of

a public highway; or

          (2) Was originally designed and manufactured

as a vehicle to carry cargo;

     (b) Any vehicle:

          (1) That is used to sweep any portion of a

public highway;

          (2) That was originally designed and

manufactured to transport persons or property;

          (3) To which machinery for sweeping is mounted

or attached; or

          (4) That has the capability of traveling long

distances over a controlled access highway;

     (c) Any trailer; or

     (d) Any farm machinery or implements of husbandry.

     3.  As used in NRS 366.203, the Department will

interpret the term “incidentally operated or moved upon a highway” to mean the

operation or movement upon a highway of special mobile equipment that is:

     (a) Exempted by 26 U.S.C. § 4041 from any tax

imposed by that statute; or

     (b) Described in Treas. Reg. § 48.4041-8(b)(2)(i)

or Treas. Reg. § 48.4041-8(b)(2)(ii).

     (Added to NAC by Dep’t of Motor Veh. by R139-01, eff. 6-25-2002;

A by R008-06, 5-4-2006; R079-07, 1-30-2008; R098-14, 10-24-2014)

      NAC 366.0066  When special fuel is considered to be exported fuel. (NRS 366.110)  For the

purposes of this chapter and chapter 366

of NRS, special fuel must be off-loaded in another state or jurisdiction to be

considered exported fuel.

     (Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

LICENSES

      NAC 366.0067  Application for license: Federal identification number required. (NRS 366.110, 366.220, 366.240)

     1.  An application for a license to operate

as a special fuel dealer, special fuel supplier, special fuel user, special

fuel exporter or special fuel transporter must include the federal

identification number of the applicant’s business.

     2.  As used in this section, “federal

identification number” means:

     (a) Federal taxpayer identification number;

     (b) Federal employer identification number; or

     (c) Any other identification number issued by the

Internal Revenue Service.

     (Added to NAC by Dep’t of Motor Veh. by R133-06, eff. 9-18-2006;

A by R150-08, 12-17-2008)

      NAC 366.0068  Special fuel exporters: Licensure; exportation to additional

jurisdictions. (NRS 366.110, 366.220, 366.240)

     1.  An applicant for a special fuel

exporter’s license issued pursuant to the provisions of NRS 366.240 must submit to the

Department an application on a form provided by the Department.

     2.  An application submitted pursuant to this

section must be accompanied by a list of the states or other jurisdictions to

which the applicant wishes to export and proof satisfactory to the Department

that the applicant is licensed or registered to import special fuel or other

petroleum products into each state and other jurisdiction to which the

applicant wishes to export such fuel or products.

     3.  Except as otherwise provided in

subsection 2 of NRS 366.240, the

Department will issue a special fuel exporter’s license upon receipt and

approval of:

     (a) A completed application; and

     (b) Any proof required by the Department pursuant

to subsection 2.

     4.  If a special fuel exporter wishes to

export to a state or other jurisdiction in which he or she was not licensed or

registered to import special fuel or other petroleum products when he or she

submitted an original application pursuant to this section, the special fuel

exporter must file an addendum to the original application providing proof

satisfactory to the Department of his or her licensure or registration to

import special fuel or other petroleum products into each state or other

jurisdiction to which he or she wishes to export such fuel or products and the

date on which such licensure or registration became effective. The Department

will notify the special fuel exporter of the date on which he or she may begin

exporting to that state or other jurisdiction upon receipt and approval of any

proof required by the Department pursuant to this subsection.

     (Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004;

A by R150-08, 12-17-2008)

      NAC 366.0069  Special fuel transporters: Licensure; expiration, suspension or

revocation of license; prohibited acts; administrative fines. (NRS 366.110, 366.220, 366.240)

     1.  An applicant for a special fuel

transporter’s license issued pursuant to the provisions of NRS 366.240 must submit to the

Department an application on a form provided by the Department.

     2.  An application submitted pursuant to this

section must be accompanied by a list of the states and other jurisdictions to

which the applicant wishes to transport and proof satisfactory to the

Department of the valid registration of each vehicle which the applicant will

use in the transportation of special fuel, whether the vehicle is apportioned

or base-plated.

     3.  Except as otherwise provided in

subsection 2 of NRS 366.240, the

Department will issue a special fuel transporter’s license upon receipt and

approval of:

     (a) A completed application; and

     (b) Any proof required by the Department pursuant

to subsection 2.

     4.  A special fuel supplier, special fuel

dealer or special fuel exporter shall not conduct business with an unlicensed

special fuel transporter. A special fuel supplier, special fuel dealer or

special fuel exporter who conducts business with an unlicensed special fuel

transporter is subject to an administrative fine imposed by the Department

pursuant to NRS 366.740.

     5.  A special fuel transporter who conducts

business with a special fuel supplier, special fuel dealer or special fuel

exporter must provide proof of licensure pursuant to this chapter upon the

request of the special fuel supplier, special fuel dealer or special fuel

exporter.

     6.  A special fuel transporter shall, upon

the expiration, suspension or revocation of his or her license, immediately

notify his or her customers who are special fuel suppliers, special fuel

dealers or special fuel exporters of the expiration, suspension or revocation

of the license.

     7.  A special fuel transporter, upon the

expiration, suspension or revocation of his or her license, shall not transport

special fuel into, out of or within the State pursuant to NRS 366.720. A special fuel

transporter who violates the provisions of this subsection is subject to an

administrative fine pursuant to NRS

366.740 for each such transport.

     8.  The Department may, as necessary to

administer the provisions of this chapter and chapter 366 of NRS, notify the special

fuel suppliers, special fuel dealers and special fuel exporters of the

expiration, suspension or revocation of the license of a special fuel

transporter.

     (Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004;

A by R150-08, 12-17-2008)

      NAC 366.007  Refusal, suspension, cancellation or revocation of license:

Grounds; requests for informal review and administrative hearing. (NRS 366.110, 366.220, 366.240, 366.250, 366.350)

     1.  Except as otherwise provided in chapter 366 of NRS, the Department will

refuse to issue to or renew a license of, or will suspend, cancel or revoke a

license issued pursuant to NRS

366.240, to a person if the person:

     (a) Fails to provide complete and accurate

information on the application for licensure as required by the Department;

     (b) Provides false or misleading information on the

application for licensure required by the Department;

     (c) Makes a material misstatement of fact on the

application; or

     (d) Is delinquent, without having received an

extension, in the payment of a tax on special fuel or any other petroleum

products in any state, district, territory or possession of the United States,

or a foreign country.

     2.  If the Department refuses to issue or

renew a license or suspends, cancels or revokes a license pursuant to this

section or NRS 366.240, the

applicant or licensee may request an informal review by the Department at which

the applicant or licensee must demonstrate why the Department should take a

different action. If, after the informal review, the Department does not revise

its action to the satisfaction of the applicant or licensee, the applicant or

licensee may request a hearing before the Department pursuant to NRS 366.250.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R150-08, 12-17-2008)

      NAC 366.0075  Expiration of license; application for renewal; administrative

fine. (NRS

366.110, 366.220, 366.260, 366.740)

     1.  Except as otherwise provided in

subsection 2, any license issued by the Department pursuant to this chapter and

chapter 366 of NRS expires on:

     (a) December 31 of the calendar year in which it is

issued if the license was issued on or after January 1 and before July 1.

     (b) December 31 of the calendar year following the

calendar year in which it is issued if the license was issued on or after July

1 and before January 1.

     2.  A special fuel user’s license issued

pursuant to NRS 366.240 expires

on December 31 of the year in which it is issued.

     3.  An application to renew a license must be

submitted to the Department not later than December 1 of the calendar year in

which the license is set to expire. An application for renewal will be deemed

submitted:

     (a) If the application is sent by mail through the

United States mail or a third-party delivery service in an envelope properly

addressed to an office of the Department and with proper postage prepaid, on

the date of the postmark or the date on which the application was deposited

with the delivery service.

     (b) If the application is submitted by any other

means, including, without limitation, electronically or by facsimile, on the

date the Department receives the application.

     4.  The Department will not be responsible

for an application that is received late because of an error made by the

applicant or the Department, including, without limitation, a system failure.

     5.  The Department will impose an

administrative fine for an application that is received late in the following

amounts:



     (a) If received 1 to 7

calendar days late.............................................................





                   $100







     (b) If received 8 to

14 calendar days late..........................................................





                     200







     (c) If received 15 to

22 calendar days late.........................................................





                     300







     (d) If received more

than 22 calendar days late................................................





                     400







     (e) If received after

the date on which the license expired................................





                     500





     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.008  Certain carriers required to obtain temporary permits for special

fuel. (NRS

366.110, 366.223)  A

carrier who has obtained a temporary permit pursuant to NRS 706.521 to operate:

     1.  A vehicle which has a declared gross

weight in excess of 26,000 pounds and which is not registered pursuant to NRS 482.482; or

     2.  A vehicle which is registered by another

entity under an agreement between the Department and the other entity pursuant

to NRS 706.826,

Ê must obtain a

temporary permit for special fuel pursuant to NRS 366.223 unless the carrier is

licensed by another entity under an agreement between the Department and the other

entity pursuant to NRS 366.175.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.009  Sale of special fuel to certain suppliers or dealers without

collecting tax prohibited. (NRS 366.110)  A

special fuel supplier or special fuel dealer who has been informed by the Department

that another special fuel supplier or special fuel dealer is not licensed

pursuant to chapter 366 of NRS shall

not sell special fuel to that unlicensed special fuel supplier or special fuel

dealer without collecting the tax imposed by NRS 366.190.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by R096-00, 3-1-2001)

SECURITY FOR PAYMENT

      NAC 366.010  Amount required for initial 2 years of operation. (NRS 366.110, 366.235)

     1.  Except as otherwise provided in NAC 366.030 and 366.040,

the Department will fix the amount of security required pursuant to NRS 366.235 for an applicant for,

or the holder of:

     (a) A special fuel supplier’s license at three

times the estimated maximum monthly tax, but not less than $1,000.

     (b) A special fuel dealer’s license at three times

the estimated maximum monthly tax, but not less than $100.

     2.  During the initial 2 years that a special

fuel supplier or special fuel dealer operates his or her business, the

Department will review his or her monthly tax returns filed pursuant to NRS 366.383 or 366.386 every 6 months to determine

whether the estimated maximum monthly tax is accurate. If the Department

determines that the estimated maximum monthly tax is not accurate, the

Department will revise the amount of security required in accordance with its

review. If the Department increases the amount of security required, the

special fuel supplier or special fuel dealer shall increase his or her security

as required by the Department within 60 days after notification of the

increase.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

      NAC 366.020  Amount required for years following initial 2 years of operation.

(NRS

366.110, 366.235)  The

Department will review annually the estimated maximum monthly tax for each

special fuel supplier or special fuel dealer who has operated his or her

business for at least 2 years before the review is conducted. The Department

will review the monthly tax returns of the special fuel supplier or special

fuel dealer for the 24 months immediately preceding the review to determine

whether the estimated monthly tax is sufficient. If the Department determines

that the estimated monthly tax is not sufficient, the Department will increase

the amount of security required for that special fuel supplier or special fuel

dealer in accordance with its review. Except as otherwise provided in NAC 366.030 and 366.040,

the increased amount of security must equal at least three times the increased

estimated maximum monthly tax, but not less than $1,000 for a special fuel

supplier or $100 for a special fuel dealer, as appropriate.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

      NAC 366.030  Request for reduction in amount required. (NRS 366.110, 366.235)

     1.  A special fuel supplier or special fuel

dealer who complies with the requirements set forth in subsection 2 may submit

a written request to the Department for a reduction in the amount of security

required pursuant to NRS 366.235

if the required amount would otherwise be more than $5,000. Upon receipt of

such a request, the Department may reduce the required amount to an amount

which is:

     (a) Not less than twice the amount of the maximum

monthly tax the supplier or dealer reported to the Department during the 2

years immediately preceding his or her request for a reduction; or

     (b) Equal to $5,000,

Ê whichever is

greater.

     2.  A special fuel supplier or special fuel

dealer who has filed tax returns with the Department pursuant to chapter 366 of NRS for 3 or more calendar

years may submit a request pursuant to subsection 1 if he or she:

     (a) Has filed punctually the tax returns required

by NRS 366.383 or 366.386 for the 3 preceding

calendar years;

     (b) Has paid punctually all taxes and assessments

due the State of Nevada for the 3 preceding calendar years;

     (c) Has not been deemed habitually delinquent

within the 3 preceding calendar years; and

     (d) Has been audited by the Department within the 2

preceding calendar years.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001; A by Dep’t of Motor Veh.

by R150-08, 12-17-2008)

      NAC 366.035  Reinstatement of original requirement following reduction in

amount: “Lack of faithful performance” interpreted. (NRS 366.110, 366.235)  As used

in subsection 6 of NRS 366.235,

the Department will interpret the term “lack of faithful performance” to mean a

failure to make any payment owed pursuant to this chapter or chapter 366 of NRS in a timely manner.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.040  Amount required for habitually delinquent supplier or dealer. (NRS 366.110, 366.235)

     1.  If the Department determines that a

special fuel supplier or special fuel dealer is habitually delinquent, the

Department will increase the amount of security required from that special fuel

supplier or special fuel dealer to five times the estimated maximum monthly

tax.

     2.  If the Department increases the amount of

security required, the special fuel supplier or special fuel dealer shall

increase his or her security as required by the Department within 60 days after

notification of the increase.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

      NAC 366.050  Amount required after notification of cancellation of surety

bond. (NRS

366.110, 366.235, 366.350)

     1.  If the Department is notified that a

surety bond of a special fuel supplier or special fuel dealer has been or may

be cancelled, the Department will review the monthly tax returns of that

special fuel supplier or special fuel dealer:

     (a) For the 24 months immediately preceding the

review; or

     (b) If the special fuel supplier or special fuel

dealer has been in business less than 24 months, for the period he or she has

operated his or her business,

Ê to determine

the amount of security he or she will be required to provide.

     2.  Within 15 days after the Department

receives notice that the bond has been or may be cancelled, the Department will

notify the special fuel supplier or special fuel dealer of the amount of

security required to retain his or her license. If the special fuel supplier or

special fuel dealer does not provide the security required by the Department

within 15 days after receiving notice of the amount of security required, the

Department will revoke the license of the special fuel supplier or special fuel

dealer.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

12-15-94, eff. 7-1-95; A 3-28-96; R096-00, 3-1-2001)

      NAC 366.060  Bond required from habitually delinquent special fuel user. (NRS 366.110, 366.235)

     1.  If a special fuel user is required to

provide a bond pursuant to subsection 2 of NRS 366.235, the amount of the bond

required will be the greater of:

     (a) The total taxable gallons of special fuel

claimed on the most recent tax return of the special fuel user multiplied by

the tax rate determined pursuant to NRS

366.190, multiplied by 3; or

     (b) $2,500.

     2.  The bond required pursuant to subsection

1 must be maintained by the special fuel user:

     (a) The first time a special fuel user is found to

be habitually delinquent, for 12 months.

     (b) The second time a special fuel user is found to

be habitually delinquent, for 24 months.

     (c) The third time a special fuel user is found to

be habitually delinquent and for any subsequent finding of habitual

delinquency, for 36 months.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

COLLECTION AND PAYMENT

      NAC 366.090  Electronic submission of tax return: General requirements;

receipt. (NRS

366.110, 366.383)

     1.  Except as otherwise provided in NAC 366.093, a special fuel supplier shall

electronically submit the tax return required pursuant to the provisions of NRS 366.383:

     (a) On or before July 1, 2006, if the special fuel

supplier:

          (1) Receives 1,000,000 gallons or more of

special fuel for which taxes must be paid pursuant to subsection 2 of NRS 366.383 during a monthly period;

or

          (2) Receives 5,000,000 gallons or more of any

type of special fuel during a monthly period.

     (b) On or before January 1, 2007, if the special

fuel supplier has not electronically submitted the form pursuant to paragraph

(a) and the supplier:

          (1) Receives 100,000 gallons or more but less

than 1,000,000 gallons of special fuel for which taxes must be paid pursuant to

subsection 2 of NRS 366.383

during a monthly period; or

          (2) Receives 1,000,000 gallons or more but

less than 5,000,000 gallons of any type of special fuel during a monthly

period.

     (c) On or before January 1, 2008, if the special

fuel supplier has not electronically submitted the form pursuant to paragraph

(a) or (b).

     2.  The return required pursuant to

subsection 1 must be:

     (a) Submitted in a format prescribed by the

Department; and

     (b) Accompanied by the payment of any tax that the

special fuel supplier is required to remit with the return.

     3.  The payment of any tax that the special

fuel supplier is required to remit with the return must be made using an

electronic transfer of money.

     4.  A return filed pursuant to subsection 1

shall be deemed received by the Department after:

     (a) The return is accessible to the Department; and

     (b) The Department has received the payment of any

tax that the special fuel supplier was required to remit with the return.

     (Added to NAC by Dep’t of Motor Veh. by R142-04, eff.

10-4-2004; A by R008-06, 5-4-2006)

      NAC 366.093  Electronic submission of tax return: Submission and approval of

application. (NRS

366.110, 366.383)

     1.  Before a special fuel supplier may submit

a tax return pursuant to the provisions of NAC 366.090,

the special fuel supplier shall submit to the Department an application for the

electronic submission of the return required pursuant to the provisions of NRS 366.383 on a form prescribed by

the Department.

     2.  If the application submitted by a special

fuel supplier pursuant to subsection 1 is accurate and complete, the Department

will approve the application of the special fuel supplier for the electronic

submission of the return required pursuant to the provisions of NRS 366.383.

     3.  A special fuel supplier shall not file a

return pursuant to the provisions of NAC 366.090

until the Department has approved the application submitted by the supplier

pursuant to subsection 2.

     (Added to NAC by Dep’t of Motor Veh. by R142-04, eff.

10-4-2004)

      NAC 366.098  Delinquent filing fees, penalties and interest: Date of delivery

of tax return; amended tax return. (NRS 366.110, 366.395)  For the

purposes of NRS 366.395:

     1.  If an envelope containing a tax return is

not stamped with a cancellation mark by the United States Postal Service or the

postal service of any other country, the Department will consider the date of

delivery to be the date on which it is received.

     2.  If a tax return is hand-delivered or

faxed to the Department before the close of business for the day, the date of

delivery is the date on which it is received, or if it is received after

closure, the following business day.

     3.  If an amended tax return is received by

the Department after the date on which the tax was due:

     (a) The taxpayer will not be required to pay a

delinquent filing fee if the original tax return and payment of tax owed on the

original tax return was timely received by the Department.

     (b) The taxpayer will be required to pay a

delinquent filing fee if the original tax return indicated that:

          (1) The taxpayer owed no tax, and the amended

tax return indicates that tax is owed;

          (2) The taxpayer did not purchase any special

fuel, and the amended tax return indicates that the taxpayer did purchase

special fuel; or

          (3) The taxpayer did not travel any miles in a

vehicle using special fuel, and the amended tax return indicates that the

taxpayer did travel in a vehicle using special fuel.

     4.  If additional tax is owed as the result

of an amended tax return, the taxpayer will be subject to penalties and

interest on the amount of the additional tax.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.100  Date when payment is deemed received. (NRS 366.110, 366.370)  Except

as otherwise provided in NAC 366.090, a payment by

a special fuel user, special fuel supplier or special fuel dealer of the tax

imposed by NRS 366.190 shall be

deemed received:

     1.  If delivered by mail, on the date shown

by the cancellation mark stamped by the United States Postal Service or the

postal service of any other country upon an envelope containing payment

properly addressed to the Department; or

     2.  If delivered by a private postal service,

on the business day preceding the date of actual delivery.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by R096-00, 3-1-2001; R142-04, 10-4-2004)

      NAC 366.102  Problems with mail service considered when determining timeliness

of payment. (NRS

366.110, 366.370)  In

determining whether payment of a tax is timely received, if it is known that

the postal service was inoperative at a certain time due to strikes, riots,

warfare, acts of God or other reasons, the Department will consider the

circumstances, and if there is any evidence of timely mailing, the Department

will accept that evidence and consider the mailing to have been made timely.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety

by R096-00, eff. 3-1-2001)

      NAC 366.106  Deficiency in tax return deemed failure to file. (NRS 366.110, 366.390)  If

the tax return filed by a special fuel supplier pursuant to NRS 366.383 does not include all

applicable reports and statements, the Department will consider the special

fuel supplier to have failed to file the tax return as required by NRS 366.383 and the special fuel

supplier is not entitled to the fee authorized by subsection 1 of NRS 366.390 for that month.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety

by R096-00, eff. 3-1-2001)

      NAC 366.108  Retention of fee for collecting tax prohibited under certain

circumstances. (NRS 366.110, 366.390)

     1.  If a special fuel supplier fails to

submit a tax return pursuant to NRS

366.383, the special fuel supplier is not entitled to retain any fee for

collecting the tax pursuant to NRS

366.390 if:

     (a) The tax return:

          (1) Became accessible to the Department

pursuant to the provisions of NAC 366.090; or

          (2) Was mailed,

Ê after the

last day of the month in which the return was required to be submitted to the

Department; or

     (b) The tax for which the tax return was prepared

was not included in the tax return or was filed after the last day of the month

specified in paragraph (a).

     2.  A person or entity who is not licensed as

a special fuel supplier pursuant to NRS

366.240 shall not retain any of the tax collected for special fuel as

authorized pursuant to NRS 366.390

for licensed suppliers.

     (Added to NAC by Dep’t of Motor Veh. by R106-01, eff.

12-17-2001; A by R142-04, 10-24-2004; R150-08, 12-17-2008)

REFUNDS

      NAC 366.210  Fuel consumed off public highways of this State. (NRS 366.110, 366.200, 366.650)

     1.  A special fuel user who consumes special

fuel in the propulsion of a motor vehicle off the public highways of this State

may obtain a refund of the tax paid pursuant to NRS 366.190 for that portion of the

special fuel purchased which is consumed off the public highways of this State.

     2.  A special fuel user who requests a refund

pursuant to subsection 1 must:

     (a) If the motor vehicle is equipped with a computer

or other device capable of computing the number of gallons of special fuel

consumed off the public highways of this State, submit to the Department the

information provided by the computer or other device as evidence of the amount

of special fuel consumed off the public highways of this State; or

     (b) If the motor vehicle is not equipped with a

computer or other device capable of computing the number of gallons of special

fuel consumed off the public highways of this State:

          (1) Compute the amount of special fuel

consumed off the public highways of this State by dividing the number of miles

the vehicle was operated off the public highways of this State by the average

number of miles traveled per gallon of special fuel consumed by the vehicle;

and

          (2) Submit to the Department the information

necessary to establish to the satisfaction of the Department that the

information used to make the computation required by subparagraph (1) is

accurate.

     3.  A special fuel user who wishes to obtain

a refund pursuant to this section must submit a request to the Department

within 12 months after the date of the payment of the tax.

     4.  A special fuel user must be licensed and

in good standing with the Department to be eligible for a refund pursuant to

this section.

     5.  Any request for a refund pursuant to this

section which is returned to the claimant by the Department because information

is missing or incomplete will be deemed not to have been received by the

Department.

     6.  Unless the claimant is notified otherwise

by the Department, all refunds made pursuant to this section must be applied

first to any outstanding amounts owed by the claimant to the Department.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by Dep’t of Motor Veh. by R101-05, 10-31-2005; R150-08, 12-17-2008)

      NAC 366.220  Fuel consumed by vehicle with auxiliary equipment: Standard

refund. (NRS

366.110, 366.200, 366.207, 366.650)

     1.  A special fuel user who is the operator

of a motor vehicle with auxiliary equipment set forth in this subsection may

obtain a refund of the tax paid pursuant to NRS 366.190 on the refundable fuel

that is used by the motor vehicle on the public highways of this State in the

following amounts:

     (a) Thirty percent for a:

          (1) Cement mixer;

          (2) Concrete pumper;

          (3) Mobile crane; or

          (4) Drill rig.

     (b) Twenty percent for a:

          (1) Commercial garbage, sanitation or refuse

truck;

          (2) Truck with an auxiliary pump for cleaning

sewers, cesspools or septic tanks; or

          (3) Sweeper truck.

     (c) Ten percent for any other motor vehicle with

auxiliary equipment used for a specific function when the vehicle is not

traveling on the highways of this State, including, without limitation, a dump

truck, a boom truck, a car carrier, a semi-truck wrecker, a refrigeration

truck, a line truck with a digger, a derrick or an aerial lift, a carpet

cleaning truck, a document shredding truck or a tank truck with a pneumatic

tank.

     2.  A special fuel user who is the operator

of a motor vehicle with auxiliary equipment may, pursuant to NAC 366.222, 366.224 or 366.226, request a refund greater than the percentage

provided for in this section.

     3.  As used in this section, “refundable

fuel”:

     (a) Means the total amount of special fuel

purchased by a person during the period specified in subsection 5 of NRS 366.207 for which taxes have

been paid pursuant to chapter 366 of

NRS, less any amount of that special fuel:

          (1) That is claimed by the person for another

exempt use;

          (2) For which any taxes are remitted to

another jurisdiction on behalf of the person; and

          (3) That is used during that period for any

other taxable use.

     (b) Does not include special fuel for which a

special fuel user has previously received a refund for credit.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R106-01, 12-17-2001;

R101-05, 10-31-2005; R150-08, 12-17-2008, eff. 1-1-2009)

      NAC 366.222  Fuel consumed by vehicle with auxiliary equipment: Request for

refund based on actual use of auxiliary equipment. (NRS 366.110, 366.200, 366.207, 366.650)

     1.  A taxpayer may request a refund of the

tax paid pursuant to NRS 366.190

based on actual use of auxiliary equipment that is greater than the standard

refund established pursuant to NAC 366.220.

     2.  A request for a refund made pursuant to NRS 366.190 must include, without

limitation, records:

     (a) Of the total number of hours of operation of

the vehicle;

     (b) Of the total amount of special fuel which has

not been dyed that was used to operate the motor vehicle;

     (c) Of the total number of miles recorded on the

odometer of the vehicle;

     (d) Of the total number of hours of operation of

the auxiliary equipment; and

     (e) That are based on data produced by a device

that is approved by the Department and may include, without limitation:

          (1) Data from a computer that is onboard a

vehicle;

          (2) Data from a device that receives

information from one or more global positioning satellites; or

          (3) Data from any other metering device that

records the information required by this subsection.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.224  Fuel consumed by vehicle with auxiliary equipment: Request for

refund based on average consumption of fuel used to operate auxiliary equipment

for fleet of vehicles. (NRS 366.110, 366.200, 366.207, 366.650)

     1.  A taxpayer may request a refund of the

tax paid pursuant to NRS 366.190

based on an average consumption of special fuel used to operate auxiliary

equipment of a fleet of vehicles that is greater than the standard refund

established pursuant to NAC 366.220.

     2.  A request pursuant to this section must

be accompanied by data obtained by testing the vehicles with auxiliary

equipment. If the data is accepted by the Department, the average fleet

consumption will be allowed for refund purposes for not more than 24 months.

The testing must:

     (a) Be conducted by an independent research group

that is approved by the Department.

     (b) Be conducted on each class of vehicle for which

a refund is sought.

     (c) Consist of at least three tests of fuel

consumption per vehicle.

     (d) Include the test results from:

          (1) For a fleet of 10 or less vehicles, at

least 4 vehicles;

          (2) For a fleet of at least 11 but not more

than 50 vehicles, at least 7 vehicles;

          (3) For a fleet of at least 51 but not more

than 100 vehicles, at least 10 vehicles; and

          (4) For a fleet of more than 100 vehicles, at

least 15 vehicles.

     (e) Yield test data that:

          (1) Identifies the actual amount of fuel

consumed exclusively by the vehicle and the auxiliary equipment;

          (2) Does not include fuel used while the

vehicle is idling or fuel used by an air-conditioning unit or other

nonauxiliary peripheral devices; and

          (3) Provides an average fleet consumption of

special fuel for auxiliary equipment in gallons per hour, calculated by

averaging the gallons of fuel consumed per hour for the auxiliary equipment on

each of the vehicles tested.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.226  Fuel consumed by vehicle with auxiliary equipment: Requirements

to obtain, eligibility for, maximum amount of and application of refund. (NRS 366.110, 366.200, 366.207, 366.650)

     1.  To obtain a refund pursuant to NAC 366.220, 366.222 or 366.224, a special fuel user must establish to the

satisfaction of the Department that:

     (a) The tax has been paid pursuant to NRS 366.190 on the special fuel for

which the special fuel user wishes to obtain a refund; and

     (b) The special fuel was used in this State to

operate auxiliary equipment that is mounted on the motor vehicle.

     2.  A vehicle with an air-conditioning unit

is not entitled to a refund pursuant to NAC 366.220,

366.222 or 366.224.

     3.  Notwithstanding any provision of NAC 366.220, 366.222 or 366.224 to the contrary, the amount of a refund

allowed for a special fuel user pursuant to this section may not exceed the

total amount of taxes paid by the special fuel user for special fuel.

     4.  A special fuel user who wishes to obtain

a refund pursuant to NAC 366.220, 366.222 or 366.224 must

submit a request to the Department within 12 months after the date of the

payment of the tax.

     5.  Any request for a refund pursuant to NAC 366.220, 366.222 or 366.224 that is returned to the claimant by the

Department as a result of missing or incomplete information will be deemed not

to have been received by the Department.

     6.  To be eligible for a refund pursuant to NAC 366.220, 366.222 or 366.224, a special fuel user must be licensed pursuant

to NRS 366.240 or licensed by

another entity under an agreement with the Department pursuant to NRS 366.175, and registered

pursuant to NRS 482.482 or

registered by another entity under an agreement with the Department pursuant to

NRS 706.826, and in good

standing with the Department.

     7.  Unless the claimant is notified otherwise

by the Department, all refunds made pursuant to NAC

366.220, 366.222 or 366.224

must be applied first to any outstanding amounts owed by the claimant to the

Department.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

      NAC 366.230  Fuel which has not been dyed used to operate certain vehicles

with refrigeration units. (NRS 366.110, 366.200, 366.650)

     1.  A special fuel user who uses special fuel

which has not been dyed to operate a vehicle with a refrigeration unit which is

equipped with an auxiliary motor and separate fuel tank may obtain a refund of

the tax paid pursuant to NRS 366.190

for the special fuel used to operate the refrigeration unit only if the special

fuel user provides to the Department a copy of the receipt obtained from the

person from whom the special fuel was purchased which states that the fuel was

placed in the fuel supply tank for the auxiliary motor and which indicates that

the tax was paid.

     2.  A special fuel user who purchases special

fuel which has not been dyed outside this State is not eligible for a refund

pursuant to NRS 366.190 for such

fuel. A place of purchase within this State must be reflected on every receipt

provided pursuant to subsection 1.

     3.  Any request for a refund of tax paid on

45 gallons or more of special fuel which has not been dyed must be accompanied

by proof of the capacity of the fuel supply tank.

     4.  Unless the claimant is notified otherwise

by the Department, all refunds made pursuant to this section must be applied

first to any outstanding amounts owed by the claimant to the Department.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R150-08, 12-17-2008)

      NAC 366.240  Fuel used to operate vehicle in idle not exempt. (NRS 366.110, 366.200)  The use

of special fuel to operate a motor vehicle in idle is not a use which is exempt

from the tax imposed by NRS 366.190.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by Dep’t of Motor Veh. by R150-08, 12-17-2008)

      NAC 366.250  Applications for and restrictions on refunds. (NRS 366.110, 366.650)

     1.  An applicant for a refund pursuant to NRS 366.650 must submit an

application to the Department. The refund must not be claimed on a tax return

submitted pursuant to NRS 366.383

or on a tax return submitted to another entity. The application must contain:

     (a) A statement affirming that the tax imposed

pursuant to NRS 366.190 was paid

to the person from whom the special fuel was purchased; and

     (b) A statement explaining why clear fuel was

purchased instead of dyed fuel.

     2.  An applicant for a refund pursuant to NRS 366.650 must also provide to

the Department evidence demonstrating that the applicant is eligible for the

refund. Such evidence may include, without limitation:

     (a) A spreadsheet, or copies thereof, showing the

information derived from original documents, including, without limitation,

invoices, receipts and vehicle logs, or receipts from the person from whom

special fuel was purchased showing the date of purchase and the number of

gallons purchased for an exempt purpose;

     (b) Records of each vehicle in which the special

fuel was used, including, without limitation, copies of the vehicle

registration, verification of vehicle fueling and a copy of the lease agreement

for any leased vehicle;

     (c) Inventory records for fuel storage tanks;

     (d) A copy of each tax return for special fuel

filed with any other entity, if any;

     (e) A form for power of attorney, if the applicant

is an agent of the taxpayer;

     (f) Copies of or a spreadsheet showing the

information derived from original driver records for each vehicle, including,

without limitation, fuel receipts, the driver’s log and other documents

maintained by the driver of each vehicle which show the number of miles

traveled by and the amount of special fuel purchased for vehicles in which the

special fuel was used, including, without limitation:

          (1) Beginning and ending odometer readings;

          (2) The total number of miles traveled;

          (3) The number of miles traveled off road; and

          (4) The total amount of special fuel purchased

in all jurisdictions; and

     (g) Any other records, receipts, invoices and other

papers required to be maintained pursuant to NRS 366.685 which the Department

requests.

     3.  Unless the Department has given the

taxpayer a waiver or the taxpayer has received a written waiver pursuant to §

P540.200 of the International Fuel Tax Agreement Procedures Manual,

January 2008 revision, from the base jurisdiction of the vehicle for which a

refund is sought, a refund pursuant to NRS 366.650 will not be made if:

     (a) The taxpayer failed to maintain records as

required by this chapter and chapter 366

of NRS; or

     (b) The taxpayer based calculations on

predetermined routes of travel.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

RECORDS

      NAC 366.300  Records of shipment: Contents. (NRS 366.110, 366.685, 366.692)

     1.  In addition to the information required

by NRS 366.692, a record of

shipment provided by a special fuel supplier must include:

     (a) The name and address of the carrier of the

special fuel;

     (b) The date the special fuel was delivered into

the motor vehicle, rail car, vessel or pipeline of the carrier of the special

fuel;

     (c) The type of special fuel delivered into the

motor vehicle, rail car, vessel or pipeline of the carrier of the special fuel;

and

     (d) The name, address and employer identification

number of the purchaser of the special fuel.

     2.  In addition to the information required

by subsection 1 and NRS 366.692,

if a special fuel supplier delivers special fuel to another special fuel

supplier or a purchaser F.O.B. the place of destination, as that term is

described in NRS 104.2319, the

record of shipment must include:

     (a) The address of each location to which the

special fuel will be delivered;

     (b) The date on which the special fuel will be

delivered to each location;

     (c) The type and quantity of special fuel which

will be delivered to each location; and

     (d) If the special fuel is to be delivered to a

person other than the purchaser, the name of that person.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96)

      NAC 366.310  Records of shipment: Compliance with requirement concerning color

and concentration of dye. (NRS 366.110, 366.692)  A

special fuel supplier may comply with the requirement set forth in paragraph

(d) of subsection 1 of NRS 366.692

concerning the color and concentration of the dye added to special fuel by

attaching to the record of shipment a copy of the notice required by 26 C.F.R.

Part 48.4082-2T.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96)

      NAC 366.315  Records of exporter: Form and contents. (NRS 366.110, 366.685)

     1.  The records required to be kept pursuant

to NRS 366.685 by a special fuel

exporter include, without limitation, records in the form of:

     (a) Delivery tickets;

     (b) Invoices;

     (c) Reports of other states and other jurisdictions

regarding the exports of the special fuel exporter to that state or

jurisdiction; and

     (d) Bills of lading or highway transportation

receipts.

     2.  Any report described in paragraph (c) of

subsection 1 must agree with the monthly statement submitted to the Department

pursuant to NRS 366.387.

     (Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004)

      NAC 366.320  Records of transporter: Form and contents. (NRS 366.110, 366.685)

     1.  The records required to be kept pursuant

to NRS 366.685 by a special fuel

transporter include, without limitation, records in the form of:

     (a) Delivery tickets;

     (b) Invoices;

     (c) Bills of lading or highway transportation

receipts;

     (d) Consortium reports;

     (e) Reports from an independently operated storage

facility;

     (f) Reports from a refinery; and

     (g) Any other relevant documents used to confirm

receipt or delivery of any product listed in subsection 1 of NRS 366.685.

     2.  Records and documents kept pursuant to

subsection 1 must include, without limitation:

     (a) An inventory for each storage tank used for storing

special fuel, including, without limitation:

          (1) The type of special fuel in each tank;

          (2) The gains and losses of special fuel for

each tank; and

          (3) The names of the shippers and receivers of

special fuel for each tank.

     (b) A record of import and export activity,

including, without limitation:

          (1) The actual number of barrels or gallons of

special fuel transported;

          (2) The origin and destination of special fuel

transported;

          (3) All exchanges and transfers of special

fuel;

          (4) All transaction dates of imports,

exchanges and transfers of special fuel; and

          (5) The types of special fuel imported and

exported.

     3.  As used in this section, “consortium”

means an association or combination of businesses which sell, transport, import

or export special fuel and which are engaged in a joint venture or doing

business under a cooperative agreement.

     (Added to NAC by Dep’t of Motor Veh. by R144-03, eff. 1-16-2004;

A by R150-08, 12-17-2008)

INDIAN TRIBES

      NAC 366.350  Agreement with governing body of tribe for collection of taxes. (NRS 366.110)

     1.  The Department may enter into an

agreement with the governing body of a tribe to provide for the collection of

taxes on taxable sales of special fuel that occur on the reservation of the

tribe.

     2.  An agreement entered into pursuant to

subsection 1:

     (a) Is valid for the period set forth in the

agreement, beginning on the date the agreement is executed; and

     (b) Will set forth:

          (1) The names and signatures of the parties to

the agreement;

          (2) The manner in which the taxes must be

calculated, including the method to be used to determine the percentage of

taxable sales to total sales of special fuel or any other method for allocating

the taxes that is agreed upon by the parties;

          (3) The method for reevaluating the manner in

which the taxes are calculated pursuant to subparagraph (2); and

          (4) The manner in which the parties may:

               (I) Verify the terms and conditions of

the agreement; and

               (II) Rescind the agreement.

     3.  As used in this section, “taxable sale”

means a sale of special fuel for which a tax is imposed pursuant to chapter 366 of NRS, other than a sale of

special fuel to a governing body or tribal member for exclusive use by the

governing body or tribal member.

     (Added to NAC by Dep’t of Motor Veh. by R106-01, eff.

12-17-2001)

      NAC 366.355  Taxable sales on reservation: Collection of tax by supplier;

refund of tax to tribe. (NRS 366.110)

     1.  If the governing body of a tribe does not

enter into an agreement pursuant to NAC 366.350, each

special fuel supplier who sells special fuel on the reservation of the tribe

shall collect the tax imposed on that sale pursuant to chapter 366 of NRS.

     2.  If a tribe specified in subsection 1 pays

the tax on the sale of special fuel pursuant to chapter 366 of NRS, the tribe may, in the

manner prescribed by the Department, apply to the Department for a refund of

the tax.

     3.  In determining the amount of a refund

pursuant to subsection 2, the Department will use a method of calculation that

is:

     (a) Prescribed by the Department; or

     (b) Set forth in an agreement entered into pursuant

to NAC 366.350.

     (Added to NAC by Dep’t of Motor Veh. by R106-01, eff.

12-17-2001)

PENALTIES AND ENFORCEMENT

      NAC 366.400  Violation of statute, regulation or order: Imposition, amount and

payment of administrative fine. (NRS 366.110, 366.740)

     1.  Except as otherwise provided in this

section, if the Department imposes an administrative fine pursuant to NRS 366.740, the Department will

impose that fine for violations occurring within the 3 years immediately

preceding the most recent violation according to the following schedule:

     (a) For the first offense, an administrative fine

of not less than $100 or more than $500.

     (b) For the second offense, an administrative fine

of not less than $500 or more than $1,000.

     (c) For the third offense, an administrative fine

of not less than $1,000 or more than $1,500.

     (d) For a fourth or subsequent offense, an

administrative fine of not less than $1,500 or more than $2,500.

Ê For the

purposes of paragraphs (b), (c) and (d), a notice of violation and directive to

cease from further violation issued by the Department shall be deemed to be a

first offense.

     2.  If the Department imposes an

administrative fine pursuant to NRS

366.740 for a violation of NRS

366.223 or 366.265, the

Department will, if the violation is:

     (a) A first offense, impose an administrative fine

of $500;

     (b) A second offense, impose an administrative fine

of $1,500;

     (c) A third offense, impose an administrative fine

of $2,000; or

     (d) A fourth or subsequent offense, impose an

administrative fine of $2,500.

     3.  The Department may impose an

administrative fine of not less than $1,500 or more than $2,500 for any

violation of NRS 366.207 or 366.220, subsection 2 of NRS 366.395 or subsection 3 of NRS 366.685.

     4.  Upon the failure of a person to pay an

administrative fine imposed pursuant to this section when the fine becomes due,

the Department may suspend, revoke or refuse to issue a license to that person

pursuant to the provisions of this chapter.

     (Added to NAC by Dep’t of Motor Veh. & Pub. Safety,

eff. 3-28-96; A by R096-00, 3-1-2001; A by Dep’t of Motor Veh. by R008-06, 5-4-2006;

R150-08, 12-17-2008)

      NAC 366.410  Fraudulent use of special fuel: Imposition, amount, reduction and

payment of administrative fine. (NRS 366.110, 366.735)

     1.  Except as otherwise provided in this

section, if the Department imposes an administrative fine pursuant to NRS 366.735, the Department will

impose that fine for violations occurring within the 4 years immediately

preceding the most recent violation according to the following schedule:

     (a) For a first offense, an administrative fine of

$2,500 and may suspend any license issued to the person pursuant to chapter 366 of NRS for not more than 30

days;

     (b) For a second offense, an administrative fine of

$5,000 and may suspend any license issued to the person pursuant to chapter 366 of NRS for not more than 60

days; or

     (c) For a third or subsequent offense, an

administrative fine of $10,000 and may revoke any license issued to the person

pursuant to chapter 366 of NRS for not

more than 1 year.

     2.  If the Department imposes an

administrative fine specified in subsection 1 and the person against whom the

fine is imposed submits evidence satisfactory to the Department establishing

just cause for reducing the amount of the administrative fine, the Department

may reduce the administrative fine to an amount that is equal to, if the

violation is:

     (a) A first offense, $1,000 or more but less than

$2,500;

     (b) A second offense, $2,500 or more but less than

$5,000; or

     (c) A third or subsequent offense, $5,000 or more

but less than $10,000.

     3.  A person who has been fined pursuant to NRS 366.735 shall pay the fine to

the Department not later than the date specified in the notice of violation,

unless he or she requests a hearing pursuant to subsection 2 of NRS 366.740.

     4.  In addition to any action taken pursuant

to subsection 1, upon the failure of a person to pay an administrative fine

imposed pursuant to this section when it becomes due, the Department may revoke

or refuse to issue a license to that person pursuant to chapter 366 of NRS.

     (Added to NAC by Dep’t of Motor Veh. by R008-06, eff. 5-4-2006)

      NAC 366.420  Failure of seller or distributor to control access to dyed

special fuel: Imposition, amount and payment of administrative fine. (NRS 366.110, 366.733)

     1.  Except as otherwise provided in this

section, if the Department imposes an administrative fine pursuant to NRS 366.733, the Department will

impose that fine for violations occurring within the 3 years immediately

preceding the most recent violation according to the following schedule:

     (a) For a first offense, an administrative fine of

not less than $2,500 and not more than $10,000.

     (b) For a second or subsequent offense, an

administrative fine of $10,000.

     2.  A person who has been fined pursuant to NRS 366.733 shall pay the fine to

the Department not later than the date specified in the notice of violation,

unless he or she requests a hearing pursuant to subsection 2 of NRS 366.740.

     3.  Upon the failure of a person to pay an

administrative fine imposed pursuant to this section or to pay any tax imposed

pursuant to chapter 366 of NRS when

the administrative fine or tax becomes due, the Department may:

     (a) Lock and seal the business of the person

pursuant to NRS 360A.365; or

     (b) Revoke or refuse to issue a license to that

person pursuant to chapter 366 of NRS.

     (Added to NAC by Dep’t of Motor Veh. by R008-06, eff. 5-4-2006)

      NAC 366.430  Order to seal special fuel pump or metered pipes and hoses of

rack: Issuance; delivery to sheriff. (NRS 366.110, 366.715, 366.750)

     1.  The Department may issue an order to seal

a special fuel pump of a retailer or special fuel dealer, or the metered pipes

and hoses of a rack of the special fuel dealer or special fuel supplier

pursuant to NRS 366.715 after

providing the required notice if the retailer, dealer or supplier has not shown

cause why the fuel pump or metered pipes and hoses of the rack should not be

sealed.

     2.  Upon issuing an order to seal a special

fuel pump, metered pipe or hoses pursuant to this section, the Department will

deliver a copy of the order to the sheriff of the county in which the retailer,

special fuel dealer or special fuel supplier is located for assistance with the

enforcement of the order.

     (Added to NAC by Dep’t of Motor Veh. by R150-08, eff.

12-17-2008)

MISCELLANEOUS PROVISIONS

      NAC 366.800  Fee for issuance of identifying device. (NRS 366.110, 366.265)  A

special fuel user must pay a fee of $6 to the Department for each identifying

device issued pursuant to subsection 1 of NRS 366.265 to defray the

administrative cost of issuing the identifying device.

     (Added to NAC by Dep’t of Motor Veh. by R030-13, eff.

10-4-2013)
Read Entire Law on www.leg.state.nv.us