Revises provisions relating to certain taxes assessed at the registration of a motor vehicle. (BDR 32-762)

A.B. 313

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ASSEMBLY BILL NO. 313–ASSEMBLYMEMBER KOENIG

FEBRUARY 27, 2025
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Referred to Committee on Revenue

SUMMARY—Revises provisions relating to certain taxes assessed
at the registration of a motor vehicle. (BDR 32-762)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to taxation; creating an exemption from the
governmental services taxes on a vehicle registered by a
person who is a volunteer firefighter; revising provisions
relating to certain exemptions from governmental services
taxes on vehicle registrations; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the imposition of a governmental services tax for the 1
privilege of operating any vehicle upon the public hig hways of this State , which is 2
included in the fees to register a vehicle. (NRS 371.030, 371.040) Existing law 3
imposes the tax based on the valuation of a vehicle, which is generally determined 4
on the basis of 35 percent of the manufacturer’s suggested reta il price in Nevada. 5
(NRS 371.050) Existing law provides for exemptions from the governmental 6
services tax to a surviving spouse, a person who is blind and a veteran, not to 7
exceed the determined valuations of $1,000, $3,000 and $2,000, respectively. (NRS 8
371.101, 371.102, 371.103) Section 1 of this bill creates such an exemption for a 9
person who is a volunt eer firefighter, not to exceed a determined valuation of 10
$8,750. Section 1 further provides that: (1) the exemption cannot be claimed in 11
more than one county; (2) the claimant is required to file an affidavit with the 12
Department of Motor Vehicles in the county where the exemption is claime d 13
attesting that he or she is a resident of the county and a current volunteer firefighter; 14
(3) the claimant is required to provide certain verification that he or she is a 15
volunteer firefighter; (4) the exemption ends the fiscal year beginning after the 16
claimant ceases to be a volunteer firefighter; and (5) the exemption m ust be 17
adjusted each fiscal year based on the Consumer Price Index (All Items). 18
Existing law further provides that : (1) the governmental services tax 19
exemptions given to a surviving spo use, a person who is blind and a veteran are 20
required to be claimed annually at any time on or before the date the tax is due ; and 21
(2) a claimant is required to immediately notify the Department when he or she no 22
longer qualifies for such an exemption or f ace a penalty. (NRS 371.105, 371.106) 23

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Sections 2 and 3 of this bill make these provisions applicable to a governmental 24
services tax exemption given to person who is a volunteer firefighter. 25

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 371 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. Vehicles registered by a person who is a volunteer 3
firefighter, not to exceed the amou nt of $8,750 determined 4
valuation, are exempt from taxation, but the exemption must not 5
be allowed to anyone but bona fide residents of this State, and 6
must be filed in but one county in this State on account of that 7
person. 8
2. The person claiming the ex emption must file with the 9
Department in the county where the exemption is claimed an 10
affidavit declaring his or her residency, that he or she currently 11
serves as a volunteer firefighter and that the exemption has been 12
claimed in no other county in this State for that year. The affidavit 13
must be made before the county assessor or a notary public. After 14
the filing of the original affidavit, the county assessor shall, except 15
as otherwise provided in this subsection, mail a form for renewal 16
of the exemption to the person each year following a year in which 17
the exemption was allowed for that person. The form must be 18
designed to facilitate its return by mail by the person claiming the 19
exemption. If so requested by the person claiming the exemption, 20
the county ass essor may provide the form to the person by 21
electronic means in lieu of by mail. 22
3. Upon first claiming the exemption, the claimant shall 23
furnish to the Department: 24
(a) An identification card which indicates that the claimant 25
currently serves as a volunteer firefighter; or 26
(b) A letter from the chief officer of a volunteer or 27
combination fire department certifying the claimant as a volunteer 28
firefighter. 29
4. A person is not entitled to the exemption provided by this 30
section in any fiscal year beginning after the person ceases to be a 31
volunteer firefighter. 32
5. Beginning with the Fiscal Year 2027-2028, the monetary 33
amount in subsection 1 must be adjusted for each fiscal year by 34
adding to each amount the product of the amount multiplied by 35
the percentage increase in the Consumer Price Index (All Items) 36
from December 2025 to the December preceding the fiscal year for 37
which the adjustment is calculated. 38

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6. As used in this section, “volunteer firefighter” means a 1
person who serves actively in an unpaid capacity in a volunteer or 2
combination fire department within this S tate as a firefighter for 3
the benefit or safety of the public. 4
Sec. 2. NRS 371.105 is hereby amended to read as follows: 5
371.105 Claims pursuant to NRS 371.101, 371.102, 371.103 or 6
371.104 or section 1 of this act for tax exemption on the 7
governmental services tax and designations of any amount to be 8
credited t o the Gift Account for the Veterans Home in Southern 9
Nevada or the Gift Account for the Veterans Home in Northern 10
Nevada pursuant to NRS 371.1035 must be filed annually at any 11
time on or before the date when payment of the tax is due. All 12
exemptions provided for in this section must not be in an amount 13
which gives the taxpayer a total exemption greater than that to 14
which the taxpayer is entitled during any fiscal year. 15
Sec. 3. NRS 371.106 is hereby amended to read as follows: 16
371.106 1. Whenever any vehicle ceases to be exempt from 17
taxation under NRS 371.101, 371.102, 371.103 or 371.104 or 18
section 1 of this act because the owner no longer meets the 19
requirements for the exemption provided in those sections, its owner 20
shall immediately notify the Department of the fact. 21
2. If a person fails to notify the Department as required by 22
subsection 1 and as a result of such failure is all owed a tax 23
exemption to which he or she is not entitled, there shall be added to 24
and collected with the tax otherwise due a penalty equal to double 25
the amount of the tax. If the person’s failure is fraudulent and results 26
in his or her receiving a tax exemp tion to which he or she is not 27
entitled, the person is also guilty of a gross misdemeanor. 28

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