With certain exceptions, existing law imposes an excise tax on admission to certain areas or premises, whether indoor or outdoor, where live entertainment is provided. (Chapter 368A of NRS) Under existing law, with certain exceptions, all taxes, interest and penalties received from the tax on live entertainment are required to be deposited in the State Treasury for credit to the State General Fund. (NRS 368A.220) Depending on the number of tickets that are offered for sale or other distribution, the tax on live entertainment does not apply under existing law to certain activities provided by a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to certain federal law or a nonprofit corporation organized or existing under certain state law. (NRS 368A.090, 368A.200)
If such a tax-exempt organization or nonprofit corporation provides an activity that is taxable as live entertainment in a county whose population is less than 9,000 (currently Esmeralda, Eureka, Lander, Lincoln, Mineral, Pershing and Storey Counties) and the number of tickets to the activity offered for sale or other distribution is 15,000 or more, this bill, with certain exceptions, authorizes the board of county commissioners of the county to submit an application to the Department of Taxation for reimbursement of costs incurred by the county related to the activity. This bill prohibits such a board of county commissioners from requesting reimbursement for: (1) any costs related to the activity that were paid for, or for which the county was reimbursed, by the tax-exempt organization or nonprofit corporation; (2) indirect or incidental costs incurred by the county related to the activity in an amount more than 20 percent of the total direct costs incurred by the county related to the activity; and (3) more than $750,000 in total direct, indirect and incidental costs incurred by the county in a fiscal year related to activities for which the county is authorized to apply for reimbursement of costs under this bill. Finally, this bill: (1) requires the Executive Director of the Department of Taxation to review any such application for completeness and compliance with the requirements of this bill and to submit any complete and compliant application to the Nevada Tax Commission for approval or denial; (2) authorizes the payment of the amount of the reimbursement approved by the Nevada Tax Commission to the applicable county from the State General Fund; and (3) authorizes a board of county commissioners to appeal any denial of such an application by the Nevada Tax Commission.