Nevada Administrative Code Chapter 372B - Taxes on Passenger Carriers
Nevada Administrative Code (NAC)
Chapter 372B — Taxes on Passenger Carriers
Overview:
Chapter 372B governs the taxation of passenger carriers in Nevada, which includes businesses providing transportation services such as buses, shuttles, and other commercial passenger vehicles. The rules set out tax obligations, registration requirements, recordkeeping, reporting, exemptions, and penalties.
1. Definitions and General Provisions (NAC 372B.010 – NAC 372B.030)
Key points:
Defines terms such as “passenger carrier,” “taxpayer,” “gross receipts,” and “operator.”
Clarifies which entities are subject to the tax, including private bus companies, airport shuttles, and charter services.
Establishes general provisions for compliance, reporting, and application of the law.
Why it matters:
Definitions ensure clarity about who must pay the tax and what activities are taxable, preventing misinterpretation or disputes.
2. Registration of Passenger Carriers (NAC 372B.040 – NAC 372B.080)
Key points:
Passenger carriers must register with the Nevada Department of Taxation before operating in the state.
Registration requires business information, fleet details, ownership information, and contact details.
Registration must be renewed periodically to maintain compliance.
Failure to register can result in fines, penalties, or suspension of business operations.
Why it matters:
Registration allows the state to track taxable entities, ensure proper tax collection, and facilitate enforcement.
3. Tax Imposition and Rates (NAC 372B.090 – NAC 372B.130)
Key points:
The chapter establishes tax rates on gross receipts from passenger transportation.
Rates may vary based on type of service, route, or ticket class.
Taxes are due periodically, usually monthly or quarterly.
Certain surcharges or fees may be included in the taxable base.
Why it matters:
Clearly defined rates ensure predictability for carriers and allow the state to collect revenue efficiently.
4. Filing and Payment of Taxes (NAC 372B.140 – NAC 372B.180)
Key points:
Carriers must file tax returns reporting gross receipts and taxable income.
Returns must be submitted by specified deadlines, with payment of taxes owed.
Late filings or payments incur interest and penalties.
Rules specify methods for filing returns electronically or in paper form.
Why it matters:
Timely filing ensures compliance and proper revenue collection, while penalties incentivize carriers to meet deadlines.
5. Recordkeeping Requirements (NAC 372B.190 – NAC 372B.230)
Key points:
Carriers must maintain records of passenger tickets, revenue, routes, and fleet operations.
Records must be retained for a specified period (often 4–5 years).
Documentation should be available for inspection by tax authorities upon request.
Proper records are required for audits, reconciliations, and claims of exemptions.
Why it matters:
Accurate recordkeeping allows the state to verify tax compliance, resolve disputes, and detect underreporting.
6. Exemptions and Adjustments (NAC 372B.240 – NAC 372B.270)
Key points:
Certain transportation services may be exempt from tax, such as government-operated buses or nonprofit transportation services.
Tax adjustments may apply if fares are refunded or trips are canceled.
Procedures for claiming exemptions require documentation and timely submission.
Adjustments may also be necessary for interstate transportation that is not fully taxable in Nevada.
Why it matters:
Exemptions and adjustments ensure fair taxation and prevent undue burden on services not intended to be taxed.
7. Audits and Enforcement (NAC 372B.280 – NAC 372B.310)
Key points:
The Department of Taxation may audit carriers to verify accuracy of returns and payments.
Noncompliance, underreporting, or falsifying records may result in fines, interest, or legal action.
Repeated violations may lead to revocation of registration or suspension of operations.
Carriers are required to cooperate with auditors and provide requested records promptly.
Why it matters:
Enforcement provisions maintain tax compliance and revenue integrity, protecting both the state and compliant businesses.
8. Appeals and Dispute Resolution (NAC 372B.320 – NAC 372B.350)
Key points:
Carriers may appeal assessments, penalties, or determinations issued by the Department of Taxation.
Appeals must include written requests and supporting documentation.
The Department reviews the case and issues a final administrative determination, which may be further appealed in court.
Deadlines and procedures are strictly defined to ensure timely resolution.
Why it matters:
This ensures fair treatment of taxpayers, provides a process for disputes, and prevents arbitrary or unjust tax enforcement.
✅ Summary of Key Rule Areas
| Rule Area | Main Purpose | Example “Case” |
|---|---|---|
| Definitions & General Provisions | Clarify taxable entities and activities | “Passenger carrier,” “gross receipts” |
| Registration of Carriers | Track taxable businesses | Registration with Department of Taxation |
| Tax Imposition & Rates | Set financial obligations | Gross receipts-based tax rates |
| Filing & Payment | Ensure timely tax collection | Monthly/quarterly returns, penalties for late payment |
| Recordkeeping Requirements | Enable audits and verification | Ticket sales, route logs, revenue documentation |
| Exemptions & Adjustments | Fair application of tax | Government or nonprofit exemptions, refunded fares |
| Audits & Enforcement | Maintain compliance | Fines, revocation, legal actions |
| Appeals & Dispute Resolution | Protect taxpayer rights | Written appeals, administrative review, court options |
RELATED Blog
comments