2005 Nevada Revised Statutes - Chapter 375B — Generation-Skipping Transfer Tax

CHAPTER 375B - GENERATION-SKIPPINGTRANSFER TAX

GENERAL PROVISIONS

NRS 375B.010 Definitions.

NRS 375B.020 Directskip defined.

NRS 375B.030 Federalcredit defined.

NRS 375B.040 Generation-skippingtransfer defined.

NRS 375B.050 Personliable defined.

IMPOSITION OF TAX

NRS 375B.100 Amountof tax imposed.

NRS 375B.110 Determinationof federal credit attributable to certain property situated in Nevada.

PAYMENTS AND DETERMINATIONS

NRS 375B.150 Return:Person liable for payment required to file; time for filing; regulations.

NRS 375B.160 Return:Extension of time for filing.

NRS 375B.170 Filingof amended return; additional tax.

NRS 375B.180 Determinationof tax due: Person liable to give notice of determination; additional tax;acceptance of determination by United States.

NRS 375B.190 Penaltyfor failure to file timely return; waiver.

NRS 375B.200 Determinationof tax upon failure to file return or upon filing of false or fraudulentreturn.

NRS 375B.210 Determinationof deficiency: Generally.

NRS 375B.220 Determinationof deficiency: Correction of erroneous determination.

NRS 375B.230 Determinationof deficiency: Appeal; action for modification of tax; notice of determination.

NRS 375B.240 Liabilityfor tax; time for payment.

NRS 375B.250 Intereston delinquent payments.

NRS 375B.260 Paymentto be applied to interest, penalty and tax.

NRS 375B.270 Bondfor payment of tax.

NRS 375B.280 Refundof overpayment.

COLLECTION OF TAX

NRS 375B.300 Actionto enforce claim for tax.

NRS 375B.310 Lienfor unpaid tax, interest or penalty; expiration and extinguishment of lien.

NRS 375B.320 Warrantfor enforcement of lien; levy and sale.

NRS 375B.330 Fees,commissions and expenses for enforcement of lien.

NRS 375B.340 Writof execution for enforcement of judgment.

NRS 375B.350 Timefor commencement of proceedings for collection.

NRS 375B.360 Certificateby Department prima facie evidence in proceeding for collection.

NRS 375B.370 Actionto prevent or enjoin collection of tax barred.

NRS 375B.380 Suitsfor collection in other states authorized; suits for collection by officers ofother states authorized.

NRS 375B.390 Remediesof State cumulative; no election of remedies.

DISTRIBUTION OF PROCEEDS

NRS 375B.400 Deposit,separate accounting and expenditure of proceeds.

NRS 375B.410 Authorizeduse of proceeds.

MISCELLANEOUS PROVISIONS

NRS 375B.450 Confidentialityof information and records; exceptions.

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GENERAL PROVISIONS

NRS 375B.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS375B.020 to 375B.050, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1989, 1495)

NRS 375B.020 Directskip defined. Direct skip means a transferas defined in 26 U.S.C. 2612.

(Added to NRS by 1989, 1495)

NRS 375B.030 Federalcredit defined. Federal credit means themaximum amount of the credit against the federal generation-skipping transfertax for state generation-skipping transfer tax allowed by 26 U.S.C. 2604.

(Added to NRS by 1989, 1495)

NRS 375B.040 Generation-skippingtransfer defined. Generation-skippingtransfer has the meaning ascribed to it in 26 U.S.C. 2611.

(Added to NRS by 1989, 1495)

NRS 375B.050 Personliable defined. The person liable forpaying the generation-skipping transfer tax is the person having personalliability pursuant to 26 U.S.C. 2603.

(Added to NRS by 1989, 1495)

IMPOSITION OF TAX

NRS 375B.100 Amountof tax imposed.

1. Except as otherwise provided in subsection 2, a taxis hereby imposed on the generation-skipping transfer other than a direct skip,that occurs at the same time as and as a result of the death of a person in theamount of the maximum credit allowable against the federal generation-skippingtransfer tax for the payment of state generation-skipping transfer taxes.

2. The tax imposed by subsection 1 is reduced by theapportioned amount of the generation-skipping transfer taxes collected byanother state.

(Added to NRS by 1989, 1495)

NRS 375B.110 Determinationof federal credit attributable to certain property situated in Nevada. If the generation-skipping transfer includes propertyhaving a situs in this State and in another state the portion of the federalcredit which is attributable to the property having a situs in Nevada must bedetermined in the following manner:

1. For the purpose of apportioning the federal credit,the gross value of the property must be that value finally determined for thepurposes of the federal generation-skipping transfer tax.

2. The federal credit must be multiplied by thepercentage which the gross value of property having a situs in Nevada bears tothe gross value of the entire transfer which is subject to federalgeneration-skipping transfer tax.

3. The product determined pursuant to subsection 2 isthe portion of the federal credit which is attributable to property having asitus in Nevada.

(Added to NRS by 1989, 1496)

PAYMENTS AND DETERMINATIONS

NRS 375B.150 Return:Person liable for payment required to file; time for filing; regulations.

1. The person liable for paying thegeneration-skipping transfer tax imposed by NRS375B.100 who is required to file a United States estate andgeneration-skipping transfer tax return or a United States gift andgeneration-skipping transfer tax return shall file with the Department on orbefore the date the United States tax return is required to be filed, a copy ofthe United States tax return and any documentation concerning the amount owedto the State of Nevada which is required by the Department.

2. The Department shall adopt regulations to requiresufficient documentation of the amount due to the State of Nevada pursuant tothis chapter.

(Added to NRS by 1989, 1496)

NRS 375B.160 Return:Extension of time for filing. If the personliable for the generation-skipping transfer tax has obtained an extension oftime for filing the United States estate and generation-skipping transfer taxreturn or the United States gift and generation-skipping transfer tax return,the filing required by NRS 375B.150must be similarly extended until the end of the period granted in the extensionof time for filing the United States tax return if a true copy of the UnitedStates extension is filed with the Department.

(Added to NRS by 1989, 1496)

NRS 375B.170 Filingof amended return; additional tax. If theperson liable for the generation-skipping transfer tax files an amended UnitedStates estate and generation-skipping transfer tax return or an amended UnitedStates gift and generation-skipping transfer tax return, he shall immediatelyfile with the Department a true copy of the amended United States tax return.If the person liable for the generation-skipping transfer tax is required topay an additional amount pursuant to NRS375B.100 because of the changes on the amended return, he shall pay thatadditional amount, together with any interest as provided in NRS 375B.250, at the same time theamended return is filed.

(Added to NRS by 1989, 1496)

NRS 375B.180 Determinationof tax due: Person liable to give notice of determination; additional tax;acceptance of determination by United States.

1. Upon final determination of the federalgeneration-skipping transfer tax due, the person liable for the tax shall,within 60 days after that determination, give written notice of it to theDepartment. If any additional tax is due under NRS 375B.100 by reason of thisdetermination, the person liable for the tax shall pay the tax, together withinterest as provided in NRS 375B.250,at the same time he files the notice.

2. The State of Nevada shall accept the determinationby the United States of the amount of the generation-skipping transfer withoutfurther audit.

(Added to NRS by 1989, 1496)

NRS 375B.190 Penaltyfor failure to file timely return; waiver. Ifthe return required by NRS 375B.150 isnot filed within the time specified in that section or the extension specifiedin NRS 375B.160, the person liable forthe tax shall pay, except as otherwise provided in NRS 360.232 and 360.320, and in addition to the interestprovided in NRS 375B.250, a penaltyequal to 5 percent of the tax due, as finally determined, for each month orportion of a month during which that failure to file continues, not exceeding25 percent in the aggregate, unless it is shown that there was reasonable causefor the failure to file. If a similar penalty for failure to file timely thefederal estate tax return is waived, that waiver shall be deemed to constitutereasonable cause for purposes of this section.

(Added to NRS by 1989, 1497; A 1999, 2502)

NRS 375B.200 Determinationof tax upon failure to file return or upon filing of false or fraudulentreturn. In the case of a false or fraudulentreturn or failure to file a return, the Department may determine the tax at anytime.

(Added to NRS by 1989, 1497)

NRS 375B.210 Determinationof deficiency: Generally.

1. In a case not involving a false or fraudulentreturn or failure to file a return, if the Department determines at any timeafter the tax is due, but not later than 4 years after the return is filedunless a longer period is provided by federal law, that the tax disclosed in anyreturn required to be filed by this chapter is less than the tax owed to theState of Nevada, a deficiency must be determined. That determination may alsobe made within such time after the expiration of the period as may be agreedupon in writing between the Department and the person liable for the tax.

2. For purposes of this section, a return filed beforethe last day prescribed by law for filing that return must be considered asfiled on that last day.

(Added to NRS by 1989, 1497; A 1991, 1409)

NRS 375B.220 Determinationof deficiency: Correction of erroneous determination. Ifa deficiency has been determined in an erroneous amount, the Department may,within 3 years after the erroneous determination was made, set aside thedetermination or issue an amended determination in the correct amount.

(Added to NRS by 1989, 1497)

NRS 375B.230 Determinationof deficiency: Appeal; action for modification of tax; notice of determination.

1. If it is claimed that a deficiency has beendetermined in an erroneous amount, any person who is liable for the tax mayappeal the determination to the Nevada Tax Commission pursuant to NRS 360.245. If the person who is liablefor the tax is aggrieved by the decision of the Commission on appeal, he may,within 3 years after the determination was made, bring an action against theState of Nevada in the district court having jurisdiction over the propertywhich was transferred to have the tax modified in whole or in part.

2. The Department shall give notice of the deficiencydetermined, together with any penalty for failure to file a return, by personalservice or by mail to the person filing the return at the address stated in thereturn, or, if no return is filed, to the person liable for the tax. Copies ofthe notice of deficiency may in the same manner be given to such other personsas the Department deems advisable.

(Added to NRS by 1989, 1497; A 1999, 2502)

NRS 375B.240 Liabilityfor tax; time for payment. The tax imposed by NRS 375B.100:

1. Must be paid by the person liable for the tax.Liability for payment of the tax continues until the tax is paid.

2. Is due on or before the date the federalgeneration-skipping transfer tax imposed by 26 U.S.C. 2601 is due.

(Added to NRS by 1989, 1497)

NRS 375B.250 Intereston delinquent payments.

1. Except as otherwise provided in NRS 360.232 and 360.320, if the tax is paid after the duedate, the tax bears interest at the rate set by the Executive Director, fromthe due date of the return.

2. The Executive Director shall set and maintain therate of interest for late payments at the highest rate permissible pursuant toSection 4 of Article 10 of the Nevada Constitution.

(Added to NRS by 1989, 1497; A 1999, 2502)

NRS 375B.260 Paymentto be applied to interest, penalty and tax. Everypayment received by the Department on the tax imposed by NRS 375B.100 must be applied:

1. To any interest due on the tax;

2. To any penalty; and

3. If there is any balance, to the tax itself,

in thatorder.

(Added to NRS by 1989, 1498)

NRS 375B.270 Bondfor payment of tax.

1. If any person who is liable for the tax fails topay any portion of the tax imposed by NRS375B.100 on or before the date the tax is due, he must, on motion of theDepartment, be required by the district court having jurisdiction over thegeneration-skipping transfer to execute a bond to the State of Nevada in anamount equal to twice the amount of the tax due, with such sureties as thecourt may approve, conditioned upon the payment of the tax, plus interest onthe tax at the rate of interest set by the Executive Director pursuant to NRS 375B.250 commencing on the date thetax became due, unless otherwise provided in NRS360.232 and 360.320. The bond mustbe executed within a time certain to be fixed by the court and specified in thebond.

2. The bond must be filed in the office of the clerkof the court, and a certified copy must be immediately transmitted to theDepartment.

(Added to NRS by 1989, 1498; A 1999, 2502)

NRS 375B.280 Refundof overpayment.

1. Whenever the Department determines that anoverpayment of the tax due pursuant to NRS375B.100 has been made, the person who made payment or his estate isentitled to a refund of the amount erroneously paid on presentation of proofsatisfactory to the Department that he is entitled to a refund.

2. An application for the refund must be made to theDepartment within 1 year after the date the United States generation-skippingtransfer tax has been finally determined.

3. On proof satisfactory to the Department that theapplicant is entitled to a refund, the Department shall refund that amount plusinterest at the rate established pursuant to NRS 375B.250.

4. The amount of the refund must be paid from theGeneration-Skipping Transfer Tax Account in the State General Fund.

(Added to NRS by 1989, 1498)

COLLECTION OF TAX

NRS 375B.300 Actionto enforce claim for tax. The State mayenforce its claim for any tax imposed by NRS375B.100 and enforce the lien of the tax by a civil action in any court ofcompetent jurisdiction against any person liable for the tax or against anyproperty subject to the lien.

(Added to NRS by 1989, 1498)

NRS 375B.310 Lienfor unpaid tax, interest or penalty; expiration and extinguishment of lien.

1. The tax imposed by NRS 375B.100 becomes a lien upon thegeneration-skipping transfer on the date of the transfer and remains as suchuntil the tax, interest and penalties owed to the State are paid or the lien isotherwise discharged.

2. If a person who is liable for thegeneration-skipping transfer tax transfers property which was part of ageneration-skipping transfer to a bona fide purchaser or holder of a securityinterest the lien imposed by subsection 1 attaches at the moment of thetransfer to all of the property of the person liable for the tax includingproperty he acquires after the transfer, except the property which istransferred to a bona fide purchaser or a holder of a security interest. Thelien does not attach to the property transferred to a bona fide purchaser or aholder of a security interest but it attaches to the consideration received forthe property by the person who is liable for the tax.

3. The tax owed to the State of Nevada is a lien uponall generation-skipping transfers made during the period for which the returnis filed. If the lien is not extinguished or otherwise released or discharged,it expires 10 years after the date a determination of deficiency is issued if,within that period, no notice of the lien has been recorded or filed asprovided in NRS 360.450. Except asotherwise provided in this section, the provisions of NRS 360.420 to 360.560, inclusive, apply to the lien.

(Added to NRS by 1989, 1498)

NRS 375B.320 Warrantfor enforcement of lien; levy and sale. At anytime within 10 years after a person is delinquent in the payment of any taximposed pursuant to NRS 375B.100 orthe interest or penalty thereon, or within 10 years after the last recording orfiling of a notice of a lien for taxes, the Department may issue a warrant forthe enforcement of any liens and for the collection of any amount required tobe paid to the State. The warrant must be directed to any sheriff and has thesame effect as a writ of execution. The warrant must be levied and sale madepursuant to it in the same manner and with the same effect as a levy of andsale pursuant to a writ of execution.

(Added to NRS by 1989, 1499)

NRS 375B.330 Fees,commissions and expenses for enforcement of lien.

1. The Department may pay or advance to the sheriffthe same fees, commissions and expenses for his services as are provided by lawfor similar services pursuant to a writ of execution. The Department, and notthe court, shall approve the fees for publication in a newspaper.

2. The fees, commissions and expenses are obligationsof the person liable for the tax imposed pursuant to NRS 375B.100 and any interest and penaltythereon and may be collected from him by virtue of the warrant or in any othermanner provided for the collection of the tax.

(Added to NRS by 1989, 1499)

NRS 375B.340 Writof execution for enforcement of judgment.

1. At any time after the tax imposed by NRS 375B.100 is delinquent, the Departmentmay have a writ of execution issued for the enforcement of any judgmentrendered in respect to the tax.

2. The writ must be executed against any property ofthe person liable for payment of the tax, or against any property subject tothe lien for the tax.

3. The Department must not be charged a fee for theissuance of execution of the writ.

(Added to NRS by 1989, 1499)

NRS 375B.350 Timefor commencement of proceedings for collection. Proceedingsfor the collection of any tax imposed by NRS375B.100 may be commenced at any time after the tax is due and within 10years after the time a determination of deficiency is issued.

(Added to NRS by 1989, 1499; A 1995, 1090)

NRS 375B.360 Certificateby Department prima facie evidence in proceeding for collection. In any proceeding for the enforcement of the tax imposedby NRS 375B.100 a certificate by theDepartment showing the amount due is prima facie evidence of:

1. The imposition of the tax;

2. The fact that it is due; and

3. Compliance by the Department with all theprovisions of this chapter in relation to the computation and determination ofthe tax.

(Added to NRS by 1989, 1499)

NRS 375B.370 Actionto prevent or enjoin collection of tax barred. Noinjunction or other legal or equitable process must issue in any suit, actionor proceeding in any court against this state or any officer of this state toprevent or enjoin the collection of any tax imposed by NRS 375B.100.

(Added to NRS by 1989, 1499)

NRS 375B.380 Suitsfor collection in other states authorized; suits for collection by officers ofother states authorized. The Department maybring suits in the courts of other states to collect taxes payable under thischapter. An officer of another state which extends a like comity to this statemay sue for the collection of similar taxes in the courts of this state. Acertificate by the secretary of state of another state, under the great seal ofthat state, that an officer thereof has authority to collect itsgeneration-skipping transfer tax is conclusive evidence of the authority ofthat officer in any suit for the collection of those taxes in any court of thisstate.

(Added to NRS by 1989, 1499)

NRS 375B.390 Remediesof State cumulative; no election of remedies. Theremedies of the State for the enforcement of the tax imposed by NRS 375B.100 are cumulative, and noaction taken by the Department or any other state officer or agency constitutesan election by the State or any of its officers to pursue any remedy to theexclusion of any other remedy for which provision is made.

(Added to NRS by 1989, 1500)

DISTRIBUTION OF PROCEEDS

NRS 375B.400 Deposit,separate accounting and expenditure of proceeds.

1. The Department shall deposit all payments receivedpursuant to this chapter in the State General Fund.

2. The money deposited in the State General Fundpursuant to subsection 1 must be accounted for separately and may only beexpended upon legislative appropriation.

(Added to NRS by 1989, 1500)

NRS 375B.410 Authorizeduse of proceeds. The money collected pursuantto the provisions of this chapter must be used only for the purpose ofeducation, to be divided between the common schools and the Nevada System ofHigher Education for their support and maintenance.

(Added to NRS by 1989, 1500; A 1993, 399; 2005, 366)

MISCELLANEOUS PROVISIONS

NRS 375B.450 Confidentialityof information and records; exceptions. Allinformation and records acquired from the Internal Revenue Service of theUnited States Department of the Treasury by the Nevada Tax Commission, the Departmentor any of their employees pursuant to this chapter are confidential in natureand, except insofar as may be necessary for the enforcement of this chapter, asan employee of the Department has a need to know the information or as may bepermitted by this chapter, must not be disclosed.

(Added to NRS by 1989, 1500)