Existing law provides for the imposition of an excise tax at a rate of 9 percent of the admission charge on admission to certain facilities where live entertainment is provided. Existing law additionally provides that such a tax must be collected from the purchaser at the time of purchase, whether or not the admission is purchased for resale. (NRS 368A.200) Section 13 of this bill requires the excise tax imposed on admission to live entertainment events to also be imposed on each resale of admission by a reseller, other than an occasional sale. Section 13 requires a reseller to retain certain records and to provide a credit to a purchaser on the amount of tax owed on the resale of an admission based on the amount of tax paid by the reseller at the time of the initial purchase of the admission. Section 7 of this bill requires a person who directly or indirectly facilitates resales of admission to certain facilities where live entertainment is provided to collect and remit the tax if, in the immediately preceding calendar year or the current calendar year, the facilitator had more than $100,000 of gross receipts from certain transactions or made or facilitated 200 or more sales transactions, on the facilitator's own behalf or on behalf of a reseller, unless the facilitator enters into an agreement with a reseller whereby the reseller agrees to assume responsibility for the collection and imposition of the tax. Section 8 of this bill provides that such a facilitator is not liable for the payment of the tax under certain circumstances. Section 9 of this bill authorizes the Department of Taxation to adopt regulations requiring certain persons who receive a fee in exchange for listing or advertising resales for a reseller of admission to certain facilities where live entertainment is provided but who do not collect money or other consideration from a customer to impose, collect and remit the tax if 200 or more sales transactions result from referrals made by the person or the cumulative gross receipts of sales resulting from such referrals exceed $100,000. Existing law requires the excise tax imposed on admission to live entertainment events, commonly referred to as the live entertainment tax, to be collected by the Nevada Gaming Control Board or the Department, depending on whether the live entertainment was provided at a licensed gaming establishment. (NRS 368A.110, 368A.140) Existing law requires the Board and the Department to deposit all taxes, interest and penalties received from the live entertainment tax in the State Treasury for credit to the State General Fund, except that, on or before October 1 of each year, the Department is required to deposit $150,000 from the taxes, interest and penalties it receives in the State Treasury for credit to the Nevada Arts Council as a continuing appropriation. (NRS 368A.220) Sections 13.5 and 13.9 of this bill require that 1/36 of all taxes, interest and penalties received from the live entertainment tax for a taxable period beginning on or after January 1, 2026, after subtracting the amount of the distribution to the Nevada Arts Council, must be distributed to the regional transportation commission in a county whose population is 700,000 or more (currently only Clark County) for use for the operation and maintenance of a public transit system. Sections 13.6, 13.9 and 14 of this bill provide that if a certain ballot question for the imposition of a sales and use tax to provide certain funding for that regional transportation commission is not submitted or approved by the voters of such a county before January 1, 2029, the distribution of the live entertainment tax to the regional transportation commission must increase to one-ninth of all taxes, interest and penalties received from the live entertainment tax for a taxable period beginning on or after July 1, 2029, after subtracting the amount of the distribution to the Nevada Arts Council. Section 13.8 of this bill makes an appropriation to the Department of Taxation for certain expenses to implement the provisions of this bill. Sections 2-6 and 12 of this bill define certain terms relevant to the tax on admission to live entertainment events. Section 11 of this bill makes a conforming change to make these definitions applicable to this tax.

Statutes affected:
As Introduced: 368A.010, 368A.110, 368A.200
Reprint 1: 368A.010, 368A.110, 368A.200, 368A.220
Reprint 2: 368A.010, 368A.110, 368A.200, 368A.220
BDR: 368A.010, 368A.110, 368A.200