state of nevada - department of taxation

STATE OF NEVADA

DEPARTMENT OF TAXATION

Web Site: https://tax.nv.gov

Call Center: (866) 962-3707

LAS VEGAS OFFICE

700 E. Warm Springs Rd, Suite 200

Las Vegas, Nevada 89119

Phone (702) 486-2300

Fax (702) 486-2373

JOE LOMBARDO

Governor

GEORGE KELESIS

Chair, Nevada Tax Commission

SHELLIE HUGHES

Executive Director

CARSON CITY OFFICE

3850 Arrowhead Dr., 2

Floor

Carson City, Nevada 89706

Phone: (775) 684-2000

Fax: (775) 684-2020

RENO OFFICE

4600 Kietzke Lane, Suite L235

Reno, NV 89502

Phone: (775) 687-9999

Fax: (775) 688-1303

Page 1 of 4 ADM-C004

V2023.3

Posted 7/15/24

NOTICE OF INTENT TO ACT UPON A

REGULATION

Notice of Hearing for the Adoption of

LCB File No. R045-24

Nevada Tax Commission

The Nevada Tax Commission will hold a Public Hearing at 9:00 a.m. on Wednesday, August 14,

2024. The purpose of the hearing is to receive comments from all interested parties regarding the

adoption of the regulation that pertains to LCB File No. R045-24.

You may attend this meeting at either of the following physical locations:

Nevada Department of Taxation

700 E. Warm Springs Road, 1st Floor

Las Vegas, Nevada 89119

Legislative Counsel Bureau

401 South Carson Street, Room 2135

Carson City, NV 89701

The following information is provided pursuant to the requirements of NRS 233B.0603:

1. Need and purpose of the proposed regulations or amendments

Proposed permanent regulation R045-24, repeals regulations relating to the remittance of the

state estate tax; and provides other matters properly relating thereto.

This Regulation is necessary to comport with recent changes to Federal and State estate tax laws.

The estate tax is not currently imposed or collected in Nevada and this Regulation repeals

provisions which otherwise require documentation and payment with the Department of

Taxation.

Page 2 of 4 ADM-C004

V2023.1

2. How to obtain the approved or revised text of regulations prepared by LCB

You may obtain a copy of the proposed permanent regulation by writing to the Nevada

Department of Taxation, 3850 Arrowhead Drive, 2

Floor, Carson City, Nevada 89706; or by calling

the office at (775) 684-2059. The proposed permanent regulation is also available for review and

download on the Department of Taxation website at https://tax.nv.gov/ or on the Nevada Legislature

website at https://www.leg.state.nv.us/.

3. Methods used in determining the impact on a small business

The agency used informed, reasonable judgment in determining that there will not be an impact on

small businesses due to the nature of the regulation changes. The Department prepared a small

business impact questionnaire that was forwarded to the Interested Parties List which is maintained by

the Department. No comment was returned by members of the public.

The Department will continue to accept input on the impact of the proposed permanent regulation on

small businesses through the regulatory process. No respondents indicated that this regulation would

have a direct and significant economic burden upon a small business.

The Department held a workshop for concerned members of the public to state their concerns and

submit correspondence regarding the regulation. No members of the public expressed concern about

impacts to small businesses.

4. Estimated economic effect of regulation on businesses and the public

a. Adverse and beneficial effects

The proposed permanent regulation does not present any reasonable, foreseeable or anticipated

adverse economic effects on small businesses or the public.

b. Immediate and long-term effects

The proposed permanent regulation does not present any reasonable, foreseeable or anticipated

immediate or long-term economic effects on small businesses or the public.

5. Cost for enforcement of the regulations

The proposed permanent regulation does not present any significant, foreseeable or anticipated cost or

decrease in costs

for

enforcement.

6. Overlap or duplication of other state or local governmental agencies

The proposed permanent regulation does not overlap or duplicate any regulation of other state or local

governmental entities.

7. Regulation required by federal law

Not Applicable

8. More stringent than federal regulations

The Department is not aware of any similar federal regulations of the same activity in which the state

regulations are more stringent.

9. New or increases in existing

fees

The proposed permanent regulation does not include new fees or increase an existing fee.

Persons wishing to comment on the proposed action of the Nevada Tax Commission may appear at

the above scheduled public hearing or may address their comments, data, views, or arguments, in

written form, to the Nevada Tax Commission, 3850 Arrowhead Drive, 2

Floor, Carson City, Nevada

89706. Written submissions must be received at least two weeks prior to the above scheduled public

hearing.

Under NRS 233B.064(2), when adopting any regulation, the Agency, if requested to do so by an

interested person, either prior to adoption or within 30 days thereafter, shall issue a concise

statement of the principal reasons for and against its adoption and incorporation, and its reason for

overruling the consideration urged against its adoption.

A copy of the Notice and the proposed permanent regulation to be adopted and/or amended is on

file and has been posted at the following location: The Department of Taxation - 3850 Arrowhead

Drive, 2

Floor, Carson City, Nevada 89706.

Members of the public may inspect these documents during regular business hours at the above location.

Additional copies of the notice and proposed permanent regulation to be adopted and/or amended are

available at the below locations.

The text of the proposed permanent regulation will include the entire text of any section of the Nevada

Administrative Code, which is proposed for amendment or repeal. Copies will be mailed to members

of the public upon request. A

reasonable

fee may be charged for copies if deemed necessary.

Notice has been EMAILED/MAILED for posting at the following locations:

Department of Taxation - 4600 Kietzke Lane, Building L, Ste 235, Reno, Nevada; Department of

Taxation - 700 E. Warm Springs Rd, Ste 200, Las Vegas, Nevada; The Legislative Building – 401 S.

Carson St., Carson City, Nevada and 555 E. Washington Ave. # 4400, Las Vegas, Nevada; The

Nevada State Library -100 Stewart Street, Carson City, Nevada; Interested Parties Group; and the

Mailing List maintained by the Department. Notice of this meeting was posted on the Department of

Taxation website at https://tax.nv.gov/, on the Legislative website at https://www.leg.state.nv.us/,

and the Nevada Public Notice Website at https://notice.nv.gov/.

In compliance with the Americans with Disabilities Act, individuals requiring special accommodations to

participate in this hearing should notify Tina Padovano at 775-684-2096 or [email protected] at

least 3 days before the hearing. In order to comply with the security procedures of the Department, you

will be required to show identification and sign a visitor’s log prior to entering the meeting room.

If you need an accommodation in order to communicate during the hearing, the Department will provide

one at no cost to you. Arrangements for an interpreter should be made as soon as possible, but no later

than 14 days before the scheduled meeting. Please contact Tina Padovano at 775-684-2096 at least 14

days in advance to request an interpreter in your preferred language. You may also submit your request to

[email protected].

Page 4 of 4 ADM-C004

V2023.1

Si necesita una ayuda para comunicarse durante la audiencia, el Departamento se lo proporcionará sin

costo alguno. Los trámites para conseguir un intérprete deben hacerse lo antes posible, pero a más tardar

14 días antes de la cita programada. Por favor, póngase en contacto con Tina Padovano al 775-684-2096

con al menos 14 días de anticipación para solicitar un intérprete en su idioma de preferencia. También

puede solicitarlo a través de [email protected].nv.us.

--1--

LCB Draft of Proposed Regulation R045-24

PROPOSED REGULATION OF THE

NEVADA TAX COMMISSION

LCB File No. R045-24

April 11, 2024

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

AUTHORITY: § 1, NRS 360.090, 375A.150 and 375A.800.

A REGULATION relating to taxation; repealing regulations relating to the remittance of the

state estate tax; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

The Nevada Constitution authorizes the Legislature to impose by law an estate tax but

limits the amount of any such estate tax to the amount of a credit authorized by federal law to

reduce the federal estate tax liability with respect to an estate by the amount of any state estate

taxes paid with respect to that estate. (Nev. Const. Art. 10, § 4) Existing law imposes such a state

estate tax on the transfer of the taxable estate of a person who resided in this State at the time of

his or her death or a person who resided outside this State at the time of his or her death but who

owned property sitused in this State at that time. (Chapter 375A of NRS) However, the

Economic Growth and Tax Relief Reconciliation Act of 2001 gradually reduced the credit

against federal estate tax liability for any state estate taxes paid with respect to an estate until

such credit was eliminated beginning January 1, 2005. (Pub. L. No. 107-16) Thus, estate tax is

not currently imposed or collected by this State, but estate tax would be required to be imposed

and collected by this State if a federal credit were ever reenacted. This regulation repeals existing

regulations governing the payment of estate tax to this State and the documentation required to

be filed with such a payment. (NAC 375A.010, 375A.020, 375A.030)

Section 1. NAC 375A.010, 375A.020 and 375A.030 are hereby repealed.

TEXT OF REPEALED SECTIONS

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LCB Draft of Proposed Regulation R045-24

375A.010 “Department” defined. (NRS 360.090, 375A.800) As used in this chapter,

unless the context otherwise requires, “Department” means the Department of Taxation.

375A.020 Documentation of tax due on transfer of certain taxable estates; remittance

of tax. (NRS 360.090, 375A.150, 375A.800)

1. The documentation required pursuant to NRS 375A.150 includes, without limitation:

(a) A copy of the first page of Form 706 of the Internal Revenue Service;

(b) If the decedent owned any property in another state, a copy of any pertinent schedules

showing the allocation of property belonging to each state and proof of payment for the portion

of the estate tax of each state;

Service, a copy of the deferred payment plan and a copy of the acceptance and approval of the

deferred payment plan by the Internal Revenue Service; and

(d) A copy of each amended Form 706 of the Internal Revenue Service, if any, and the

appropriate reconciliation.

2. A personal representative who is required to file documentation with the Department

pursuant to NRS 375A.150 shall remit any applicable tax, interest and penalty owed to the

Department pursuant to chapter 375A of NRS at the time the personal representative files the

documentation required pursuant to NRS 375A.150.

375A.030 Conditions governing remittance of tax due, additional tax, interest and

penalty; waiver of penalty. (NRS 360.090, 375A.170, 375A.800)

1. A personal representative who has obtained from the Internal Revenue Service an

extension of time for filing Form 706 of the Internal Revenue Service shall remit an estimated

--3--

LCB Draft of Proposed Regulation R045-24

amount of tax due the Department pursuant to chapter 375A of NRS with the copy of the

extension filed with the Department pursuant to NRS 375A.155.

2. If a personal representative who has obtained from the Internal Revenue Service an

extension of time for filing Form 706 of the Internal Revenue Service files Form 706 within the

time authorized in the extension and the personal representative owes additional tax to the

Department pursuant to chapter 375A of NRS, the personal representative shall remit the tax and

any interest owed to the Department pursuant to chapter 375A of NRS with the documentation

required pursuant to NRS 375A.150.

3. If a personal representative who has obtained from the Internal Revenue Service an

extension of time for filing Form 706 of the Internal Revenue Service files Form 706 after the

time authorized in the extension and the personal representative owes additional tax to the

Department pursuant to chapter 375A of NRS, the personal representative shall remit the tax, any

interest and any penalty owed to the Department pursuant to chapter 375A of NRS with the

documentation required pursuant to NRS 375A.150.

4. If a personal representative fails to file the return provided for in NRS 375A.150 within

the time specified in that section or the extension specified in NRS 375A.155, his or her:

(a) Obtaining an extension of time for filing Form 706 of the Internal Revenue Service from

the Internal Revenue Service; and

(b) Remitting an estimated amount of tax due the Department pursuant to chapter 375A of

NRS with the copy of the extension filed with the Department pursuant to NRS 375A.155,

 shall be deemed to constitute reasonable cause for the purposes of NRS 375A.170 and the

personal representative is not required to pay a penalty pursuant to NRS 375A.170.

--4--

LCB Draft of Proposed Regulation R045-24

5. The Department shall waive the penalty for failure to file a timely return imposed

pursuant to NRS 375A.170 if the personal representative provides documentation to the

Department proving that a similar penalty for failure to file timely the federal estate tax return

was waived by the Internal Revenue Service.