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From YouTube: 2/23/2022 - Joint Interim Standing Committee on Revenue
Description
This is the second meeting in 2022. Please see agenda for details.
For agenda and additional meeting information: https://www.leg.state.nv.us/App/Calendar/A/
Videos of archived meetings are made available as a courtesy of the Nevada Legislature.
The videos are part of an ongoing effort to keep the public informed of and involved in the legislative process.
All videos are intended for personal use and are not intended for use in commercial ventures or political campaigns.
Closed Captioning is Auto-Generated and is not an official representation of what is being spoken.
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A
A
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who
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like
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committee's
agenda
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final
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Any
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today,
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a
roll
call
vote
in
the
future.
If
there
is
one
there
will
be
a
public
comment
period
at
the
beginning
and
at
the
end
of
the
meeting
and
a
public
comment
will
be
limited
to
three
minutes
per
person.
Public
comment
may
be
provided
in
four
different
ways,
all
of
which
are
listed
on
the
agenda.
A
If
you
have
been
able
to
download
the
agenda,
the
first
way
is
by
calling
a
phone
number,
which
is
669,
968,
33
and
then
entering
a
meeting
id
of
874,
2190,
9349
and
then
pressing
pound
or
the
hashtag
sign.
The
second
way
is
by
emailing
the
interim
revenue
committee,
which
is
rev
interim
at
lcvstate.nv.us.
A
And
with
that,
I
will
go
ahead
and
open
up
for
public
comments.
Bps
is
there
anyone
on
the
line
for
public
comment.
H
G
G
A
Okay,
thank
you
for
that,
and
so
this
is
a
quick
reminder
to
committee
and
presenters
because
we're
in
the
zoom
feature,
the
chat
feature
can
only
be
used
for
technical
assistance
with
bps.
It
is
not
to
be
used
for
any
communication
between
members,
presenters
or
individuals
unless
requesting
technical
assistance
from
bps.
A
If
someone
uses
the
chat
feature
in
the
during
the
meeting,
it
creates
a
an
open
meeting
law
issue,
and
so
we
ask
that
you
don't
use
the
chat
unless
it's
for
technical
assistance
and
if
there's
any
questions
or
something
that
needs
to
be
said,
you'll
have
to
probably
ask
that.
A
So
with
that
being
said,
we
will
go
ahead
and
move
to
agenda
item
number
four.
I
believe,
which
is
our
presentation
on
streamline
sales
and
use
tax
agreement,
which
is
suda.
I
want
to
let
the
members
know.
Today's
meeting
is,
I
think,
is
going
to
be
an
interesting
conversation.
I
wanted
to
focus
on
educating
the
members
on
what
suda
and
then
on
the
second
half
of
the
agenda.
Also
educating
on
what
is
you
know
this?
A
What's
liquor
tax
and
then
really
getting
into
a
conversation
about
you
know
in
with
the
division
with
lobbyists
and
also
with
fiscal
staff,
because
I
wanted
to
have
a
well-rounded
conversation
so
that
we
could,
you
know,
have
a
little
bit
more
thorough
vetting
of
some
of
the
questions
and
ideas
that
we
may
be
thinking
through,
and
so
with
that
being
said,
I
will
introduce
craig
johnson
executive
director
of
streamline
sales
tax
governing
board,
in
which
I
am
an
executive
member.
C
Yes,
you
are
senator
neil
and
we
very
much
appreciate
your
membership
and
participation
on
the
executive
committee.
So
do
I
need
to
share
my
screen
or
is
my
screen
being
shown.
C
C
Okay,
so
I'll
go
ahead
and
get
started,
then
again,
thank
you
for
the
opportunity,
senator
neil,
the
members
of
the
interim
committee
for
letting
me
come
and
talk
to
you
a
little
bit
about
streamlined
sales
tax.
My
name
is
craig
johnson.
I'm
the
executive
director
and
I've
been
the
executive
director
for
the
last
nine
plus
years.
Prior
to
my
leadership,
of
the
streamlined
sales
tax
governing
board.
I
did
work
for
the
wisconsin
department
of
revenue.
I
was
there
for
almost
24
years
before
moving
to
to
streamlaw
so
see.
C
If
I
can
advance
these
slides
see
if
they
go
there,
we
go
okay,
so
because
of
the
kind
of
the
limited
time
that
we
have
today,
this
is
going
to
be
a
very
high
level
overview,
but
I
certainly
would
encourage
any
of
you
to
to
reach
out
with
any
questions
or
if
you
want
additional
information.
Anything
I
mentioned
today
feel
free.
C
My
contact
information
is
in
the
in
the
presentation,
the
powerpoint
slides,
but
what
you
have
on
your
screen
now
are
the
kind
of
the
topics
that
I'll
be
covering
with
respect
to
the
key
features,
I'm
going
to
mention
a
few
of
them,
and
I've
also
been
asked
to
provide
a
few
more
details
on
some
of
those
that
are
related
to
sourcing
and
the
sales
tax
holidays
in
particular.
C
Also
talk
a
little
bit
about
the
wayfarer
decision
and
how
that
has
really
changed
the
landscape
in
the
sales
tax
arena
and
how
it's
really
it's
one
more
thing
for
you
as
legislators
to
to
try
to
make
sure
that
you
keep
in
mind
as
you're
looking
at
sales
tax
changes
because
of
the
broad
implication
it
can
have
not
only
on
your
own
in-state
businesses,
but
also
on
remote
sellers
as
well.
So
let's
talk
about
what
is
streamlined
sales
tax,
I
mean
keep
in
mind.
We
are
a
voluntary
organization.
C
No
state
has
to
join,
no
business
has
to
participate,
but
we
are
really
focused
on
making
the
sales
tax
system
simpler
and
more
uniform
throughout
the
country,
and-
and
I'm
going
to
talk
about
why
that's
important
shortly,
but
our
organization
was
initially
developed
by
the
national
conference
of
state
legislatures,
the
national
governors
association
back
in
late
99
early
2000,
and
they
recognized
that
something
needed
to
be
done
to
simplify
and
modernize
the
sales
tax
systems
in
the
country.
C
C
After
all,
we
have
to
keep
in
mind
sales
tax
collections
rely
very
heavily
on
voluntary
compliance
and
the
easier
and
clearer
that
we
can
make
our
laws
and
the
way
that
you
can
make
your
laws
as
states
the
more
likely
that
you're
going
to
be
receiving
the
the
correct
amounts
of
revenue,
so
who's
involved
with
streamline.
We
are
100
funded
by
the
dues
paid
by
our
24
member
states.
We
are
also
completely
controlled
by
our
member
states.
C
I
work
for
you
and
the
other
23
member
states
that
we
have
nevada,
is
and
and
has
been
a
full
member
since
april
1st
of
2008,
and
you
have
been
represented
by
both
state
legislators
as
well
as
tax
administrators.
As
senator
neil
said,
she
is
an
elected
member
of
our
10
person.
Executive
committee
and
again
on
behalf
of
streamline,
certainly
appreciate
her
willingness
to
serve
on
the
committee.
C
We
believe
from
a
streamlined
perspective
that
having
both
tax
administrators
and
elected
officials
participating
in
the
leadership
of
the
organization,
it's
important
to
make
sure
that
we
are
able
to
consider
the
various
perspectives
as
we
develop
issues.
Tax
administrators
and
state
legislators
in
the
business
community
may
not
always
have
the
same
views,
but
we're
able
to
all
work
together
and
work
through
and
find
compromises
to
help
the
organization
move
forward.
I
have
also
found-
and
again
my
history
was
with
the
wisconsin
department
of
revenue
when
I
first
got
involved
with
streamline.
C
You
know
as
legislators,
you
set
the
laws
and-
and
I
would
suggest
that,
as
you
set
the
laws,
especially
now,
especially
in
a
post-warfare
world,
you
really
try
to
work
as
closely
as
possible
with
your
tax
administrators
to
make
sure
those
laws
are
administered.
Administerable
tax
administrators
have
a
wealth
of
knowledge
when
it
comes
to
implementing
laws,
and
they
can
certainly
help
ensure
you
know
that
the
legislation
will
be
administerable
when
enacted.
C
We
have
also-
and
we
do
continue
to
encourage
participation
and
have
participation
from
the
local
governmental
unit
associations
that
includes
the
u.s
conference
of
mayors,
the
national
league
of
cities,
government
finance
officers,
association,
national
association
of
counties.
They
all
participate
with
us
and
have
an
interest
from
a
local
sales
tax
perspective.
On
what
happens
within
streamline,
I
would
also
stress
the
importance
of
the
business
community
and
the
partnership
really
that
we
have
with
them.
C
You
know
one
of
the
reasons
sst
works
as
well
as
it
does
is
because
of
that
partnership
and
the
level
of
trust
that
we
have
with
the
business
community.
You
know
if
states
are
going
to
make
changes.
States
really
need
to
understand
what
needs
to
be
changed
and
businesses
are
probably
in
the
best
spot,
to
help
states
understand
those
changes
and
what
the
impact
of
those
changes
will
be
as
well.
C
This
is
a
map
right
now
of
our
current
membership.
All
of
the
I
want
to
call
it
the
the
light
blue
colored
states,
those
are
all
of
our
full
member
states,
and
again
we
have
23
full
member
states.
The
state
of
tennessee
you'll
see,
isn't
even
a
lighter
color.
They
are
an
associate
member
state.
C
So
let's
talk
about
streamlining
and
why
we
do
it
and
what
we,
what
our
goals
were,
as
we
were
moving
forward
when
streamlined
first
started
our
goal
when,
when
streamline
started,
really
was
to
overturn
the
quill
and
the
ballast
test
decisions,
the
physical
presence
requirement
states
recognized
that
you
know
the
undue
burdens
on
interstate
commerce
and
we
wanted
to
reduce
those
burdens.
You
know
as
as
were
discussed
and
as
were
mentioned
in
the
quill
decision
back
in
1992,
and
it's
extremely
important
to
keep
in
mind.
C
You
know
the
whole
undue
burden
issue,
especially
in
this
post-warfare
world,
and
how
all
sellers
around
the
country
can
be
affected
by
any
change
that
you
make
within
your
state.
When
streamline
first
started,
the
states
were
seeing
significant
losses
in
tax
revenue.
E-Commerce
was
growing
states,
weren't,
able
to
effectively
and
efficiently
administer
their
use
tax
laws.
C
Yes,
they
could
go
out
and
pursue
sellers
or
purchasers
and
impose
use
tax
requirements
and
issue
assessments,
but
the
more
efficient
and
easier
way
to
do
it
would
be
to
have
the
sellers
collect
that
tax
at
the
time
of
sale.
At
the
same
time,
your
own
brick
and
mortar
stores
were
suffering
from
a
lack
of
level
playing
field
anytime.
They
had
to
compete
with
a
remote
seller
that
remote
seller
that
didn't
have
physical
presence
in
nevada
was
able
to
sell
their
product
without
charging
sales
tax.
C
Your
brick
and
mortar
store
had
to
charge
a
tax,
so
two
products
being
sold
for
the
same
price.
One
has
to
charge
tax
one
doesn't
if
you're
a
purchaser,
and
you
don't
realize
that
you're
still
supposed
to
pay
that
use
tax.
What
are
you
going
to
do
you're
going
to
purchase
if
it's
the
same
product
at
the
lowest
possible
cost,
so
that
was
a
that
was
something
that
the
states
were
facing
at
the
time
streamlined
started,
see
it
looks
like
my
screen
might
be
hung
up
there.
C
We
go
so
let's
talk
about
what
things
make
the
system
burdensome
and
the
business
community
really
helped
us
identify
really
what
the
pain
points
or
what
the
burdens
were
in
the
in
the
sales
tax
system.
This
slide
and
the
next
slide
both
kind
of
lay
out
what
what
some
of
those
pain
points
are
and
as
as
you
look
at
these
lists,
I
would
ask
you
to
think
about
your
constituents,
many
of
whom
are
selling
in
multiple
states
and
due
to
the
wayfarer
ruling.
C
Now
they
have
to
comply
with
each
one
of
those
state's
laws
and
think
about
the
burdens
it
would
place
on
them
if
every
other
state
and
local
jurisdiction
did
things
differently
than
what
was
being
done
in
nevada.
I'd
also
ask
you
to
think
about
as
you're
looking
at
changes
to
your
sales
tax
laws,
keep
in
mind
that
the
less
uniform
the
laws
are
amongst
the
states
in
these
areas,
the
more
difficult
it's
going
to
be
for
sellers
really
and
purchasers
to
voluntarily
comply
and
collect
and
remit.
C
C
C
Some
of
the
other
things
that
that
the
business
community
identified
made
the
sales
tax
systems
burdensome
throughout
the
country
are
listed
on
this
slide
again,
I'm
not
gonna,
not
gonna,
go
through
them
all,
but
I
will
tell
you
that
each
one
of
these
items
have
been
addressed
in
the
streamlined
sales
and
use
tax
agreement.
We
worked
with
the
business
community
and
the
states
to
come
up
with
a
solution
to
to
help
ease
or
remove
those
burdens.
C
C
So
we're
trying
to
be
very
careful
that-
and
I
think,
we've
reached
a
very
good
balance
and
you'll
see
that
most
of
the
simplification
and
uniformity
provisions
that
we've
adopted
relate
to
the
administration
side
definition
side,
things
like
that,
but
in
no
place
in
the
streamlined
sales
and
use
tax
agreement
do
we
ever
tell
a
state
you
have
to
tax
this
or
you
can't
tax
that
that
is
entirely
up
to
to
each
of
the
states
and
then
obviously,
we
also
wanted
to
use
technology
to
help
help
retailers
and
to
to
remove
the
the
burdens
that
they
were
facing.
C
The
discussions
about
our
goals
and
trying
to
reach
resolutions
went
on
for
for
some
time.
Eventually
it
resulted
in
the
development
of
the
streamlined
sales
and
use
tax
agreement.
This
agreement
continues
to
evolve.
It
is
not
static.
C
We
need
to
keep
up
with
changes.
We
need
to
be
addressing
new
issues
as
they
come
up,
you'll
see
with
respect
to
the
the
agreement
itself
and
we'll
move
into
talking
a
little
bit
about
that.
This
is
what
the
agreement
looks
like.
This
is
the
cover
of
it,
and
I
mentioned
to
you
that
it
has
evolved
over
time
and
that
there's
been
a
number
of
changes
and
you,
as
you
can
see
on
the
screen.
C
The
agreement
itself
has
been
amended
every
single
year
since
it
has
been
since
it
was
initially
adopted
in
2002
and
again
that's
because
we
learn
things
the
business
community
brings
new
issues
to
us.
States
bring
new
issues
to
us
and
we
need
to
to
continue
to
to
be
reactive
to
that
and
in
some
cases,
being
proactive
to
it
as
well.
C
Not
every
amendment
that
we
make
in
the
agreement
requires
a
state
to
change
its
laws.
For
example,
sometimes
we
make
amendments
that
will
produce
a
toggle
or
develop
a
new
toggle
that'll
allow
states
some
additional
flexibility
states
have
been
doing
things
in
a
certain
manner.
If
we
adopt
a
toggle,
it's
only
those
states
that
want
to
take
advantage
of
the
new
toggle
that
would
need
to
adopt
that
or
make
some
type
of
a
a
legislative
change.
C
This
is
the
debate
really
the
table
of
contents
of
the
streamline
sales
and
use
tax
agreement.
You'll
see,
there's
all
kinds
of
issues
that
have
been
addressed
and
again
the
majority
of
these
issues
were
brought
to
us
by
the
business
community
and
said:
hey,
look.
We
need
to
do
something
in
these
areas.
C
C
Now,
let's
talk
about
some
of
the
the
features
again
and
again.
There's
this
is
a
list
of
just
a
few
of
the
main
features
state
level
administrations.
You
have
a
central
administration
agency
which
is
for
nevada.
It's
your
your
department
of
taxation.
They
are
the
ones
that
administer
the
state
and
local
taxes.
C
They
are
the
ones
that
the
return
gets
filed
with
they
take
care
of
distributing
those
monies
out
to
the
various
local
jurisdictions.
They
handle
the
audits.
Every
local
jurisdiction
doesn't
have
to
go
into
an
audit
and
a
taxpayer
doesn't
have
to
face
audits
for
multiple
local,
multiple
jurisdictions,
common
state
and
local
tax
bases.
This
is
an
extremely
important
piece
of
of
streamline
and
basically,
what
it
says
is:
if
you
have
something
that's
going
to
be
taxed
at
the
state
level,
it's
going
to
also
be
taxed
at
the
local
level.
C
If
there's
a
local
tax,
if
it's
exempt
at
the
state
level,
it's
going
to
be
exempt
at
the
local
level
again,
keep
in
mind,
there's
over
12
000
taxing
jurisdictions
throughout
the
country,
and
imagine
if
you
were
a
remote
seller,
shipping,
your
products
all
over
the
country
and
every
one
of
those
jurisdictions
included
or
excluded
something
different
from
their
from
their
tax
base.
Now,
amongst
the
states,
do
you
have
different
tax
bases?
C
Absolutely
some
states,
tax,
candy,
other
states,
don't
tax
candy
and
that's
perfectly
fine,
because
whatever
a
sell
or
a
state
people
uses
as
their
definition
of
candy.
It's
the
exact
same
definition
as
every
other
member
and
it's
a
matter
of
turning
a
tax
flag
on
or
off
for
a
state.
So
that's
that's!
C
Some
of
the
importance
of
the
the
uniform
definitions,
the
uniform
destination,
based
sourcing
rules
and
again
I
highlighted
that
because
we'll
we'll
talk
about
that
in
in
more
detail,
but
that's
really
who
has
the
right
to
impose
their
tax
on
the
on
a
particular
transaction
central
registration
system.
We've
set
up
a
registration
system
where
a
seller
can
come
in
and
they
can
register
for
one
or
all
of
our
states
by
filling
out
one
simple
online
application,
and
we
do
it
to
them
or
we
allow
them
to
do
this
at
no
cost.
C
I
mentioned
uniform
definitions
again
the
definitions
that
we've
developed
and
adopted
in
streamline.
They
are
the
exact
same
definitions
that
are
used
in
every
one
of
our
member
states.
Now
the
last
one.
That's
on
this
list
is
the
uniform
rules
for
sales
tax
holidays,
which
I
will
again
I
will
talk
about.
That
is
that
that
is
the
one
of
the
issues
that
has
created
a
compliance
issue
for
nevada,
with
report
with
the
requirements
of
the
streamlined
sales
and
use
tax
agreement
itself.
C
This
is
just
another
list
of
a
few
more
of
the
features,
and
again
I'm
not
going
through
all
of
these,
but
you
have
them
in
the
in
the
slides.
If
you
do
want
any
additional
information
about
them,
I
would
certainly
say
feel
free
to
reach
out
to
me.
I
would
think
you
could
also
reach
out
to
members
of
the
nevada
department
of
taxation
as
they
are.
They
are
very
familiar
with
with
these
as
well.
C
So
with
that
I'd
like
to
just
move
on
to
the
the
sourcing
rules,
the
sourcing
rules
really
kind
of
lay
out
in
a
hierarchy
type
format
how
or
what
state
is
entitled
to
receive
the
tax
on
a
particular
transaction
and
and
again
all
of
our
states
follow
these
same
sourcing
rules
when
it
comes
to
any
transactions
between
the
states.
There
are
options
where
a
state
can
have
and
use
what
we
call
an
origin-based
sourcing
regime
on
intra-state
transactions.
C
Only
so
if
they
stayed
within
the
border,
the
entire
transaction
was
within
the
border
of
nevada.
You
could
use
origin
based
sourcing
instead
of
destination
based
sourcing
and
again
destination.
Based
sourcing
basically
means
you
source
a
transaction
to
the
location
where
the
property
is
received,
where
possession
takes
place
by
the
by
the
customer.
So
that's
kind
of
the
underlying
premise
of
our
our
sourcing
rules
and
again
they
are
set
up
in
a
hierarchy
type
format.
C
So
you
start
at
the
top
and
work
your
way
down,
and
you
ask
yourself:
was
this
transaction
received
over
the
counter?
In
other
words,
did
you
walk
into
the
store
and
buy
it
and
hand
it
to
you?
The
answer
is:
yes,
that's
the
location
you
source
it
to
if
it
wasn't
handed
to
them
over
the
counter,
but
they
paid
for
it
and
everything
else,
and
then
you
delivered
it
to
them.
C
Then
you're
going
to
look
at
the
delivery
location.
Now,
what
happens?
If
you
don't
know
the
delivery,
location
or
the
seller
doesn't
know
the
delivery
location.
We've
addressed
that
in
in
bullets.
Three
and
four,
the
first
step
you
look
at
is:
do
you
have
an
address
as
a
seller
in
your
books
and
records
for
that
customer?
C
If
you
do
you'll
source
it
to
that
location
and
that
will
be
the
state,
local
jurisdiction
will
get
the
tax.
If
you
don't
have
anything
in
your
books
and
records,
but
you
got
something
during
the
consummation
of
the
sale,
so
they
bought
something
from
you
online
and
they
entered
in
an
address
at
that
point
in
time
you
can
use
that
sale
or
that
address
to
to
source
the
sale.
C
We
have
very
few
transactions
and
when
you
think
about
tangible
personal
property,
that's
being
delivered,
you
have
to
know
where
that's
going.
A
seller
needs
to
know
where
that's
going,
so
very
few
transactions
get
sourced
to
what
we
would
call
origin
or
the
location
from
from
where
they
were
shipped
and
when
you,
when
you
look
at
these
rules,
you
think
about
where
else.
Wouldn't
they
know
the
address.
C
You
know:
we've
we've
certainly
evolved
into
more
of
a
digital
economy
and
just
as
an
example,
think
about
how
you
purchased
music.
Many
years
ago
you
purchased
a
cd
or
for
those
of
you
that
are
a
little
older.
Like
me,
you,
you
purchased
a
eight
track
tape
or
you
purchased
a
cassette
tape,
but
you
purchased
something
in
a
tangible
form
and
it
was
shipped
to
you
or
you
walked
into
the
store
and
you
purchased
it
now.
In
many
cases,
you're
not
buying
a
tangible
item,
but
instead
you
do
a
digital
download.
C
You
know
sellers
don't
care,
and
in
many
case
they
don't
need
to
know
where
you
live
or
where
you
are
they're
going
to
charge
your
payment
instrument
and
your
payment
instrument
in
many
cases,
will
provide
a
five-digit
zip
code
as
some
sort
of
security,
verification,
that's
where
they
know
how
to
source
or
that's
how
they
know
what
state
that
transaction
should
be
sourced
to.
C
C
So
next
issue
I
want
to
talk
about
a
little
bit.
Is
the
sales
tax
holiday
rules
and
the
streamlined
sales
and
use
tax
agreement
contains
some
very
specific
rules
when
it
relates
when
it's
when
you're
talking
about
sales,
tax,
holidays
and
they're
extremely
important
from
a
uniformity
perspective,
you
know,
keep
in
mind
how
sellers
are
affected
by
sales
tax
holidays
and
what
they
have
to
do
to
set
up
their
system
to
adequately
program
for
these
types
of
issues.
So
you
have
a
product
that
was
normally
taxable
and
you're
going
to
exempt
it.
C
For,
let's
say
a
three-day
period
or
a
four-day
period,
they
have
to
go
back
into
their
systems
and
reprogram
them
to
turn
the
tax
off
on
those
items.
For
that
three
or
four
day
period,
then,
as
soon
as
that's
up,
they
have
to
go
back
in
and
turn
their
system
back
on,
so
that
they
start
taxing
it
or
else
they're
going
to
stop.
C
These
are
some
of
the
other
rules
that
we
have
in
place
for
sales
tax
holidays
from
a
uniformity
perspective.
You
know
many
of
these
issues
are
things
that
myself
included,
wouldn't
even
be
thinking
about
if
we
weren't
the
ones
that
would
have
to
have
to
implement
the
sales
tax
holiday
itself,
but
think
about
just
something
as
simple
as
time
zones.
C
So,
if
nevada
enacts
a
sales
tax
holiday
that
runs
from
this
date
to
this
date,
whose
time
zone,
if
I'm
a
seller,
that's
on
the
east
coast,
do
I
follow
nevada's
time
zone
or
do
I
follow
my
own
time
zone
that
says?
Oh
at
midnight,
my
time
it
expires,
or
do
I
follow
midnight
nevada
time?
You
know
those.
Those
sorts
of
things
are
are
extremely
important
to
sellers
again,
making
sure
that
they
can
comply
with
with
your
laws.
C
During
last
year's
annual
streamlined
compliance
reviews,
the
sales
tax
holiday
issue
in
nevada
was
identified
as
a
compliance
issue
and
indicated
from
members
of
the
business
community
as
well
as
my
staff,
I
mean
we're.
We
do
a
due
diligence
review
as
well
on
each
of
the
state's
compliance
to
make
sure
they're
following
the
requirements
of
the
agreement,
and
this
was
an
area
that
nevada
was
found
to
not
be
following
the
requirements
of
the
agreement.
C
The
reason
it
was
identified
is
kind
of
laid
out
on
the
on
the
screen
here
and
again.
If
you
think
back
to
those
previous
couple
screens,
I
had
about
some
of
the
sales
tax
holiday
requirements.
These
are
the
areas
that
that
nevada
sales
tax
holiday
violates
the
the
requirements
of
the
agreement.
C
I
heard
from
several
members
of
the
business
community
about
the
difficulties
that
was
causing
them
and
again
think
about
the
programming
issue.
Think
about
the
issue
of
making
sure
that
they
collect
the
adequate
documentation,
the
exemption
certificates
all
the
way
across
the
country
for
something
they're
shipping
into
nevada
for
those
nevada
day,
sales
tax
holidays.
C
Now
these
sellers,
I
mean
they
indicate
they're,
not
against
sales,
tax
holidays
or
the
benefits.
You
know
that
this
sales
tax
holiday
provided,
but
their
feeling
was
that
it
needs
to
be
done
properly
so
that
they
can
really
manage
it
from
a
a
seller's
perspective,
they're
worried
about
either
over
collecting
the
tax
and
then
being
faced
with
some
sort
of
class
action,
lawsuit
or
under
collecting
the
tax
and
being
forced
for
the
being
faced
with
the
kitam
lawsuit.
C
So
they
are
trying
to
to
get
it
right
and
that's
one
of
the
reasons
why
they
brought
this
to
the
attention
to
our
attention
and
that
they
are
more
than
happy
and
want
to
work
with
nevada
in
in
trying
to
to
resolve
this
issue.
C
My
staff
and
I
did
review
the
the
sales
tax
holiday
language
and
we
tried
to
identify
kind
of
some
alternatives
that
would
be
compliant
with
the
streamlined
sales
and
use
tax
agreement
and
also
accomplish
you
know,
at
least
in
part
of
the
intent
behind
the
legislation,
which
was,
as
my
understanding
is
at
least
partially
to
to
recognize.
You
know
the
certain
national
guard
members
and
the
help
that
they
have
provided.
You
know
during
the
pandemic
that
we're
facing.
C
We
have
just
recently
gone
over
some
of
these
options
with
senator
neil
and
some
folks
from
the
nevada
department
of
taxation,
and-
and
you
know,
we
recognize
that
these
re
these
options
to
resolve
it.
You
know
it's
going
to
take
or
may
take
a
legislative
change
or
likely
will
take
a
legislative
change,
and
we
also
recognize
that
you're
not
in
an
official
legislative
session
this
year.
C
So
that
presents
an
additional
challenge
for
you
guys
as
well,
but
we
are
glad
to
help
in
any
way
that
we
can
to
make
sure
that
your
you
know
the
legislative
attempt
is
accomplished
as
well
as
having
it
be
in
compliance
with
with
streamline
chair.
Neal,
are
you
okay?
If
I
continue
talking
a
little
bit
about
the
wayfarer
decision,.
A
C
Okay,
so
let's
talk
about
the
the
wayfarer
decision
a
little
bit
and
I
would
like
to
really
kind
of
put
into
context
how
important
this
decision
was
as
well
as
how
important
it
is
for
for
really
all
of
you
and
really
all
state
legislators
around
the
country,
to
really
keep
this
in
mind
when
looking
at
sales
tax
changes,
because,
as
a
result
of
this
decision,
states
got
remote
seller
collection
authority.
That
was
what
they're
looking
for.
C
But
at
the
same
time,
because
of
that
decision,
the
decisions
you
make
as
a
state
legislator
as
an
as
a
state
legislature
as
a
whole.
It
affects
retailers
across
the
entire
country
that
are
shipping
their
products
into
into
the
state
of
nevada.
C
At
the
same
time,
you
know
due
to
this
decision,
the
sales
tax
legislative
actions
in
all
the
other
states
impacts
all
of
your
constituents
that
are
located
in
nevada
that
are
shipping
their
products
into
those
other
states
as
well.
So
really,
I
have
to
all
be
thinking
about
this
and
keeping
this
in
mind
as
we're
making
these
types
of
changes
and
and
the
wide
impact
that
it
had.
C
You
know,
prior
to
wayfair,
you
really
only
impacted,
I'm
going
to
say
the
sellers
that
had
a
physical
presence,
a
footprint
in
the
state
of
nevada,
now
you're
you're,
impacting
the
sellers,
any
seller,
that's
shipping
products
into
nevada
if
they
exceed
your
your
economic
nexus
threshold.
So
so
what
did
the
wayfarer
decision
really
say?
I
mean
what
it
really
did.
Is
it
overturned
the
physical
presence
standard
that
had
been
in
place
since
the
quill
decision
in
in
1992
and
and
really
since
the
national
balance
hess
decision
in
1967?
C
So
this
is,
you
know,
50
plus
years,
that
sellers
had
gotten
used
to
following
this
physical
presence
requirement.
If
I
don't
have
physical
presence,
I
don't
have
to
collect
their
tax
that
was
kind
of
their
their
thought
process.
Now
you
have
this
economic
and
and
virtual
presence
test,
so
sellers
that
have
been
been
come
become
accustomed
to.
C
The
physical
presence
test
now
had
to
adjust
to
to
the
economic
nexus
or
the
the
virtual
presence
as
well.
C
Now
this
language
was
all
dicta
in
the
in
the
in
the
opinion,
because
again
remember
they
were
not
asked
to
rule
on
whether
or
not
south
dakota's
law
imposed
an
undue
burden,
but
they
took
about
a
page
and
a
half
of
their
opinion
to
talk
about
why
they
don't
think
south
dakota's
law
imposes
or
the
house
south
dakota's
law.
These
provisions
were
designed
to
prevent
the
discrimination
and
designed
to
prevent
undue
burdens
and
again
nevada
has
done
all
three
of
these.
C
You
put
in
your
safe
harbor,
you
put
in
your
your
economic
nexus
thresholds
you're,
not
applying
this
retroactive
and
you're
a
full
member
in
streamline,
and
that's
really
why
it's
extremely
important
to
I
want
to
say
to
fix
the
the
sales
tax
holiday
compliance
issue
that
you
have.
The
court
noted
these
specific
items
in
their
opinion
about
streamline
and
you'll,
see
that
it's
a
sixth
one
down
it
just
says
other
uniform
rules
and
that's
exactly
the
language
out
of
the
opinion
and
sales
tax
holidays
are
part
of
those
other
uniform
rules.
C
And
again
I
don't
want
the
someone
to
look
at
nevada
and
say
well,
because
nevada
doesn't
follow
the
sales
tax
rules.
You
know
they
haven't
met
criteria,
three,
which
is
full
membership
and
streamline.
You
still
have
full
membership
in
streamline,
but
this
is
something
that
definitely
could
be
an
area
that
could
could
come
forward
so
hopefully
we'll
be
able
to
to
get
that.
That
issue
addressed
and
again
the
decision
really
it
as
it
says,
open
the
door
to
require
sellers
without
a
physical
presence
to
collect
and
remain
your
tax.
C
You
meet
the
three
requirements
now
I
do
anticipate
and
some
of
you
may
be
aware.
There
is
a
court
case
that
has
been
started
in
the
with
the
state
of
louisiana,
where
a
taxpayer
is
making
an
argument
that
louisiana's
sales
tax
are
being
required
to
collect.
Louisiana's
sales
tax
is
imposing
an
undue
burden
on
them
and
therefore
it
violates
the
commerce
clause
that
case
is
in
it.
So
I'm
gonna
say
it's
in
its
infancy.
It's
you
know,
it
hasn't
been.
There
hasn't
been
any
briefings
or
anything
like
that
on
it.
C
So
as
a
result
of
the
wayfarer
decision,
every
state
moved
forward
with
what
we
call
economic
nexus
and
I
just
kind
of
want
to
level
level
set
this
a
little
bit
and
touch
briefly
on
what
what
economic
nexus
is.
Just
to
make
sure
everybody
understands
it,
especially
since
this
is
this
again,
is
really
what
significantly
impacts
remote
sellers
and
requires
them
to
collect
the
tax
in
in
many
of
the
states
post
wayfarer
than
what
they
had
been
previously
collecting
tax
in.
So
what
is
economic
nexus
and
again
think
back
to
the
wayfarer
decision?
C
We
had
traditional
nexus,
which
was
your
physical
presence.
Now
you
have
economic
nexus,
which
is
virtual
presence
through
some
level
of
sales
activity,
most
states,
I
believe,
nevada
included,
adopted
a
200
transaction
or
hundred
thousand
dollars
in
sales
type
threshold.
So,
if
you
exceed
either
one
of
those
you
do
need
to
collect
and
remit
the
nevada
sales
tax,
regardless
of
any
physical
presence
in
the
in
the
state
of
nevada.
I
will
tell
you
one
thing
that
we
have
learned
and
we'll
be
talking
about.
I
know
it's.
C
The
reason
for
that
is,
they've
we've
come
across
a
number
of
sellers
and
sellers
that
brought
it
to
our
attention
where
they
might
sell,
15
or
20
t-shirts
and
for
them
to
sell
200
t-shirts
into
the
state
of
nevada.
There's
a
total
gross
revenue
of
4
000
on
those
200
t-shirts
and
yet
they're
going
to
be
required
to
collect
and
remit
that
tax
and
the
question
is
for
the
amount
of
tax
they're,
calculating
collecting
and
remitting.
Does
that
create
some
type
of
undue
burden
on
them?
C
Since
the
wayfarer
decision,
every
state,
with
a
sales
tax,
has
now
enacted
an
economic
nexus
law,
as
it
indicates
there.
Missouri
is
the
last
one
and
theirs
becomes
effective
january
1st
of
2023,
but
their
legislation
has
passed
and
then
is
in
place
so
they're
in
the
process
of
doing
their
implementation.
C
Last
thing
I
want
to
touch
on
are
just
some
of
the
streamlined
successes
again
with
nevada
being
a
member
state.
I
think
it's
important,
for
you
know
for
all
of
you
to
to
to
understand
too
how
I'm
gonna
say
how
successful
we
have
been
and
how
we
have
grown.
C
C
We've
seen
over
a
400
percent
increase
since
the
wayfarer
decision
took
place
in
2018
and
we've
had
over
over
6
billion
dollars
collected
by
our
member
states
from
these
from
these
remote
sellers.
Now
to
put
that
growth
in
in
context
a
little
bit
for
the
state
of
nevada
for
2021
and
and
the
department
of
taxation
provides
me
some
statistics,
you
know
based
on
sellers
that
are
registered
through
streamline
and
what
their
collections
are
through.
The
first
three
quarters
of
2021
nevada's,
already
collected
about
65
million
dollars.
C
I
anticipate
that
that
number
will
be
somewhere
between
probably
90
and
100
million
dollars
for
the
year
now
to
look
at
the
amount
of
growth
that
we've
seen
recently
in
2020
nevada's
total
collections
from
this.
The
streamline
registered
sellers
was
about
61
million
so
from
2020
to
2021
you're.
Looking
at
going
from
about
61
million
up
to
close
to
potentially
100
million
in
2019,
the
collections
were,
I'm
going
to
say
only
32
million,
but
they
were
still.
They
were
32
million
dollars
2018.
They
were
only
15
million
dollars
and
from
2014
to
2017.
C
C
I
can
tell
you
that
our
certified
service
provider
program,
but
I'm
not
going
into
any
details
on
it,
but
we
have
certified
service
providers
and
they
will
have
collectively
they
will
have
remitted
over
a
billion
dollars
to
our
member
states
in
one
year,
so
they
are
growing
significantly
as
well,
which
again
is
exactly
what
we
want.
They're
out
there
helping
remote
sellers
make
sure
that
they
collect
and
remit
all
of
the
taxes
that
are
they're
legally
doing
owing
in
your
state.
C
So
with
that
chair,
chair
neal,
if
you
have
any
questions,
I'd
be
glad
to
take
those
from
you
as
well.
I
appreciate
your
attention.
A
I
I
just
have
a
question
about
the
registered.
E
And
I'm
sorry
if
I
missed
this,
if
you
covered
this,
but
the
you
know
who
they
are,
do
they
tend.
C
H
A
Out
about
how
they're
finding
out
about
becoming
a
certified.
C
Sure
so
I
mean
we
have,
we
have
all
kinds
of
sellers
in
your
right.
I
mean
they
don't
all
I
mean
I
can't
say
they
fall
into
a
similar
type
bucket.
A
lot
of
these
sellers.
I
will
tell
you
they
are.
They
are
remote
sellers.
They
are
sellers
that
are
shipping
their
product
across
the
country.
That,
prior
to
wayfarer,
did
not
have
a
legal
requirement
to
collect
and
remit
tax
in
in
many
of
the
states.
C
So
they
are
coming
forward
and
they
are
saying
look
we
need
to.
We
need
to
collect
they
register
through
streamline
and
again
it
makes
it
very
easy
for
them
to
to
register
and
they
can
add
states
as
they
need
to
so
they
may
maybe
they're
shipping
or
they
exceed
the
economic
nexus
thresholds
in
a
few
states
today
or
this
year
and
next
year,
as
they
continue
to
grow,
they
exceed
the
economic
nexus
in
other
states.
C
They
can
simply
go
into
our
registration
system,
click
a
box
and
add
that
state
and
start
collecting
for
that
state
as
well.
But
we
do
have
I
mean
we
do
have
some,
I'm
going
to
say
some
extremely
large
businesses
that
are
registered
through
streamline
that
are
collecting.
You
know
they
could
be
in
the
marketplace.
Facilitator
type
arena
nevada
does
have
they
get
a
list
they
can.
E
C
C
These
are
companies
that
have
a
tax
engine
that
they
integrate
with
the
seller's
online
order
or
order
entry
system,
and
so
when
an
order
gets
placed,
the
customer
puts
in
their
name
and
their
address
and
the
products
that
they're
going
to
buy
this
the
certified
service
provider
system.
Because
of
this
integration,
it
actually
goes
out
and
looks
at
it
says:
okay,
this
per
this
customer
is
buying
something
they
are
located
in
state
x.
C
Then
they
look
at
state
x's
sales
tax
rules,
their
taxability
rules,
says
okay,
they're
buying
a
desk,
that's
going
to
be
shipped
to
las
vegas
nevada,
they're,
going
to
look
at
it
and
say
is:
is
a
desk
taxable
in
nevada,
yes
or
no
so
they'll
say
yes,
they'll
determine
its
taxable.
Now
we're
shipping
it
to
las
vegas.
What
is
the
state
and
local
tax
rate?
And
they
will
provide
that
information?
They
will
kick
that
back
to
the
seller,
so
the
seller
knows
how
much
tax
to
collect.
C
Then
the
certified
service
provider
takes
that
information
and
they
compile
it
and
on
a
monthly
basis,
the
certified
service
provider
prepares
the
sales
tax
return
files,
their
return
with
each
one,
each
one
of
the
states
they
they're
registered
in
and
makes
the
remittance
to
make
that
remittance
what
they
do
is
they
contact
their
seller?
That's
that
has
a
contract
with
them
directly
and
said.
Okay,
for
this
month,
we
collected
x
amount
of
sales
tax
for
this
state,
this
state
and
this
state
they
make
one
transfer
to
the
certified
service
provider.
A
So,
mr
johnson,
I
have
two
questions
before
we
move
on
number
one.
You
said
that
states
were
removing
that
transaction
threshold
and
I
guess
my
first
thought
was
you
know:
does
that
weaken
the
economic
nexus
language
because
you
know
that
had
to
be
carefully
crafted.
That's
the
first
question
that
I
had
a
second.
C
Yeah,
well
I
mean
it
comes
down
to
to
whether
or
not
your
state
wants
to
look
at
a
seller
that
has
a
minimal,
I'm
going
to
say
very
low
dollar
sales,
but
maybe
high
volume
you
know.
Is
it
worth
the
time
and
effort
on
your
end
to
process
the
returns
and
everything
that
goes
with
it?
And
the
second
question
is-
or
the
second
concern
I
guess
is:
does
that
requirement
for
these
high
volume,
low
dollar
sellers?
C
C
I
think
that's
you
know,
and
that's
going
to
be,
I
think
part
of
the
issue
that
will
be.
I
don't
want
to
necessarily
say
resolve,
but
will
be
addressed
in
the
louisiana
litigation.
That's
going
on
now.
A
Okay,
thank
you
for
that
and
then
my
second
question
you
were
touching
on.
You
know
how
we're
shifting
into
this
virtual
kind
of
this
virtual
reality.
I
think
it's
a
little
bit
deeper
than
just
e-commerce.
I
was
having
a
conversation
with
the
administrator
yesterday
and
he
called
it.
The
metaverse-
and
I
was
just
like-
are
we
in
a
spider-man
movie
and
I
was
like
let's,
let's
file
the
snack
just
a
little
bit.
A
I
know
that
there's
a
lot
going
on,
but
when
I
think
about
what's
happening
within
digital
goods
and
digital
commerce,
now
now
folks
are
you
know
it's
gotten
to
the
point
where
you
have
digital
real
estate
and
you
can
sell
a
virtual
1600
acres,
which
I
think
is
awesome,
because
I
really
want
to
know
the
coordinates
of
it.
A
However,
I
I
you
know:
I've
been
moving
around
in
the
digital
goods
space
and
I
and
I
feel
that
it's
necessary
because
the
economy
is
growing
in
such
unique
ways
that
things
are
literally
becoming
intangible
and
I
wanted
to
know,
I
guess
just
brief
thoughts
on
you
know:
states
hesitancy.
It's
past,
I
believe
in
27
states,
but
there's
still
some
some
lukewarm
thoughts
around
it.
C
Well,
so
I
will,
I
will
take
you
back
to
when
my
my
days
in
wisconsin,
when
we
first
enacted
legislation
to
start
taxing
digital
products,
and
there
is
the
one
camp
that
looks
at
it
and
says.
Well,
if
you're
taxing
digital
products,
it's
a
tax
increase
because
you're
taxing
it
something
different
than
what
you
taxed
in
the
past
and
my
response
and
my
argument
to
that
is-
and
I
think
that's
part
of
the
hesitancy
of
states
doing
it.
But
my
response
is
no.
C
C
Nobody
had
a
problem,
taxing
that
now
you're
getting
the
exact
same
thing,
which
is
music
right
but
you're
getting
in
a
different
format,
you're
getting
in
a
digital
format,
and
I
think
it's
going
to
be
extremely
important
for
states
to
be
able
to
maintain
their
tax
base
as
we
continue
to
grow
and
as
the
amount
of
digital
and
virtual
I'm
going
to
say,
commerce
takes
place
and
as
it
continues
to
grow,
you
know
one
of
the
the
common
things,
and
you
mentioned
the
you
know
the
the
1600
virtual
acres
that
the
person
could
buy.
C
I
mean,
I
think,
there's
some
cheap
ones
out
there,
but
you
know
for
anything
that
potentially
has
value,
and
I
can't
I'm
still
trying
to
wrap
my
head
around
that
you
know
as
far
as
what
people
are
doing
with
that,
but
they're
buying
something
digitally
they're,
paying
a
price
and
they
feel
like
they're,
getting
something
in
return
and-
and
I
just
I
don't
know
where
that's
going
to
stop-
I
mean
there's
going
to
be
certain
things
that
you're
always
going
to
have
to
buy
in
a
tangible
format:
right,
clothing,
desk
furniture,
computer
things
like
that,
but
anything
that
you
can
do
that
is
providing
you
some
type
of
I'm
going
to
say
some
type
of
service.
C
Anything
like
that
could
potentially
move
completely
away
from
any
tangible
form
into
some
type
of
a
digital
form,
and
that's
what
I
think
we
need
to
be.
We
really
need
to
be
thinking
about.
As
I
mean
as
states,
you
know.
How
are
we
going
to
do
that?
Does
our
law
allow
us
to
to
tax
it?
I
know
that
you
have
some
I'm
going
to
say
some
unique
challenges
in
the
in
the
state
of
nevada.
C
You
know
with
your,
I
guess,
with
you
kind
of
like
you
with
your
taxpayer
bill
of
rights
laws
or
something
to
that
effect
where
you
know
for
you
to
to
begin
imposing
tax
on
something
new.
Isn't
there
something
where
there's
there's
some
sort
of
constitutional
amendment
or
it
takes
a
vote
of
the
people
to
do
that
or
that
can
be
very
challenging.
But
at
the
same
time,
your
if
your
tax
base
erodes
and
continues
to
erode
your
road
any
road.
C
The
bottom
line
is
you
need
a
certain
amount
of
money
to
to
be
able
to
provide
those
state
services,
and
you
get
to
a
point
where.
Well,
if
we
can't
tax
these,
you
know,
let's
assume,
that
cds
become
a
thing
of
the
past.
No
one
ever
buys
another
cd,
every
dollar
that
you
got
a
revenue
of
that
is
now
gone.
C
C
C
You
know,
and
people
don't
like
to
obviously
see
that
see
that
happen
either,
and
I
know
that
that's
a
that's,
a
challenge
that
that
you
guys
are
are
facing,
and
I
I
don't
envy
the
position
you're
in
on
that
either.
A
Thank
you.
Thank
you
for
your
comments.
I
seem
to
have
created
all
kinds
of
wonderful
thoughts.
Senator
tatro,
I
know
right
like
maybe
it
was
the
metaverse
okay,
but
senator.
D
And
then
as
well
as
is
there
anything
that
you
don't
think
should
be
taxed
and
do
you
look
at,
I
guess
it's
probably
more
of
a
policy
decision
on
our
end,
but
if
it's
not
requiring
services
or
or
some
cost
to
the
state,
should
we
be
taxing
that.
C
Yeah
so,
although
you
know,
although
I
would
say
your
revenues
have
have
gone
up
again,
keep
in
mind
that
this
is
this
is
tax
that
it
was
legally
doing
only
I
mean
so
that
commerce
had
been
there.
You
know,
I
would
say
that
you
would.
You
had
not
been
collecting
the
tax,
and
I
think
this
goes
back
to
a
report
that
dr
fox
did
early
on
for
national
conference.
C
State
legislators
and
the
governors,
association
and
streamlined
was
partied
to
that
as
well
trying
to
identify
the
the
revenue
that,
in
effect,
remote
sellers
were
not
collecting
tax
on
so
had
they
been
collecting
the
tax
all
along.
I
would
say
you
wouldn't
have
seen
that
type
of
of
a
growth.
So
that's
why?
C
I
think
that
you
have
to
say
your
tax
base
is
eroding
because
if
they
had
been
shipping,
those
cds
in
all,
along
and
collecting
the
tax
you'd
be
getting
it
and
you'd
see
that
number
go
down
because
they're
no
longer
collecting
the
tax
on
it,
because
now
they're
selling
it
in
a
digital
format.
So
that's
how
I
was
looking
at
it
from
the
the
tax
base
erosion.
As
far
as
you
know,
are
there
things
you
sh?
You
should
or
shouldn't
tax.
C
You
know
we
we
and
I
will
say
I
and
streamline
we
try
to
stay
out
of
you
know
those
decisions
I
would
agree.
I
mean
I
think
those
are
policy
decisions
that
each
of
the
each
of
the
states
needs
to
look
at.
You
know.
I
think
you
want
to
look
at
areas
to
it,
I'm
going
to
say
kind
of
try
to
avoid
any
sort
of
tax
pyramiding.
C
If
that
can
happen,
but
other
than
that
you
know
that
would
be
the
comments
that
I
would
I
would
have
in
that
area,
because
again
it's
an
area
we
try
to.
We
try
to
stay
out
of
as
well,
because
we
do
think
that
that
is
a
a
decision
for
the
state
legislators
to
be
making.
E
Thank
you
chair
and
thank
you
for
the
presentation,
your
question.
Actually,
I
created
a
few
more
questions
in
my
mind
and
so
wow
there's
there's
a
lot,
but
I'll
just
try
to
stick
to
two
and
they
are
kind
of
very
simplistic.
Almost
when
it
comes
to
the
crypto
universe,
for
lack
of
a
better
term.
Is
there
anybody
that
is
currently
involved
in
the
crypto
universe,
that
is
part
of
the
governing
body
or
that
is
participating
in
the
discussions
with
your
group.
C
E
E
There
anybody
that's
from
those
organizations
that
are
part
of
the
governing
board
or
part
of
the
the
discussion
groups
as
to
how
exactly
to
create
conform,
conforming
language
or
consistent
language.
Because
that's,
I
guess
that's
going
into
my
second
question.
That's
the
problem
that
I
have
is
that
it
seems
like
there's
so
many
different
languages
out
there
that
sometimes
it's
not.
It
doesn't
have
the
same
definition.
E
So
I'm
just
wondering
if
people
that
are
involved
in
the
crypto
universe,
for
payment
or
for
other
goods,
if
they're
also
part
of
the
discussions
when
kind
of
how
to
handle
this
across
the
state
as
being
is
being
discussed.
C
Yeah,
so
I
mean
we
haven't
anybody,
specifically
I'm
going
to
say
from
that
arena.
Now,
certainly
there
are.
There
are
members
when
we
think
about
you,
know
people
that
are
participating
in
in
streamline.
You
know,
you've
got
your
amazons
and
your
apples
and
your
microsoft
and
some
of
those
that
have
been
participating
or
have
participated
over
the
years
in
the
area
of
cryptocurrency
in
particular
and
non-fungible
tokens,
and
things
like
that.
We
actually
are
going
to
are
trying
to
get
a
couple
of
experts
to
come
into
our
governing
board
meeting
in
may.
C
That
will
be
in
tacoma
washington
to
give
us
a
presentation
on
it,
because
it's
it's
things
like,
as
I
said,
the
non-fungible
tokens.
I
I
can't
wrap
my
head
around
why
someone
would
buy
a
virtual,
I'm
going
to
say
a
virtual
product
unless
there's
something
behind
it,
there's
something
of
value
but
and
and
again
that
might
be
my
age
starting
to
show
that
I
can't
can't
wrap
around
it.
C
A
Chair,
thank
you
for
that
all
right.
So
I
want
to
thank
you,
mr
johnson,
for
your
presentation.
It
was
really
good
for
you
to
come
to
our
state
virtually
and
discuss
suda.
We
needed
that
conversation
being
that
we
found
ourselves
in
non-compliance.
J
C
Be
coming
to
your
state
physically
as
well
the
first
week
of
march,
I
will
be
in
the
las
vegas
area
to
participate
in
cost
conference.
They
are
having
there,
so
we
will
be
there
as
well
so
again
appreciate
the
opportunity.
A
All
righty,
thank
you,
so
we
will
move
on
to
agenda
item
number
five,
which
will
be
done
by
our
legislative
council,
mr
fernley,
which
is
the
presentation
on
the
1955
sales
tax
act
and
part
of
that
conversation,
as
you
just
heard
from
mr
johnson.
It
serves
as
a
limitation
in
our
state,
but
it's
very
important
to
help.
I
guess
the
committee
understand
how
it
works.
What
are
the
limitations
within
creation
of
policy?
B
Thank
you.
Thank
you,
chair
neil,
my
name
as
cherniel
mentioned,
my
name
is
brian
fernley,
I'm
the
legislative
council
in
the
legal
division
of
the
legislative
council
bureau
and
also
as
chair
neil
and
mr
johnson
mentioned
this.
This
is
kind
of
the
part
of
the
presentation
where
I
will
go
over.
B
You
know
the
limitations
that
nevada
does
have
in
enacting
changes
to
its
sales
and
use
tax
laws,
and
those
really
do
originate
from
the
sales
and
use
tax
act
of
1955
and
the
history
and
circumstances
under
which
that
act
was
was
passed
and
ultimately
approved
by
the
voters
at
the
general
election
in
1966.
B
The
history
of
the
sales
and
use
tax
act
of
1955
has
created
aspects
to
nevada's
sales
and
use
tax
laws
that
that
I
think,
do
make
nevada
unique
among
the
states
and,
as
mr
johnson
mentioned,
it
also
has
made
amending
nevada's
sales
and
use
tax
laws
more
complex
than
merely
presenting
a
bill
to
the
legislature
for
passage
and
for
passage
by
the
legislature
and
signature
by
the
governor.
B
I
will
go
over
that
history
and-
and
I
will
describe
how
that
history
affects
the
manner
in
which
changes
can
be
made
to
to
our
state's
sales
and
use
tax
laws.
So
the
first
sales
and
use
tax
enacted
in
nevada
was
the
sales
and
use
tax
act
of
1955..
B
The
act
also
imposed
a
corresponding
yeast
tax
of
two
percent
on
the
purchase
price
of
tangible
personal
property
purchased
outside
the
state
for
use,
storage
or
consumption
in
nevada.
The
act
did
contain
some
exemptions
from
the
tax
and
under
the
act.
The
proceeds
of
the
tax
were
required
to
be
deposited
in
the
state
general
fund
and
to
be
used
to
defund
state
government.
B
B
The
petition
did
gather
enough
signatures
for
the
act
to
be
placed
on
the
ballot
for
the
voters
of
the
state
to
vote
approval
or
disapproval
at
the
1956
general
election.
At
that
election,
the
act
was
approved
by
a
pretty
strong
majority,
with
69
percent
of
the
voters
in
favor
of
the
act
and
approximately
31
percent
opposed.
B
The
results
of
having
this
act
approved
at
a
referendum
of
the
voters
is
that,
under
section
1
of
article
19
of
the
nevada
constitution,
this
act
cannot
be
amended
or
repealed
by
action
of
the
legislature
it
to
amend
or
repeal
the
act
requires
a
submission
of
a
proposal
to
the
voters
at
an
election.
So,
even
if
the
legislature
were
to
act
to
amend
the
sales
and
use
tax
act,
it
would
have
to
be
presented
to
the
voters
at
an
election
to
vote
for
approval
or
disapproval
of
the
proposal.
B
B
B
Rather,
an
entirely
new
chapter
of
the
nrs
was
enacted,
chapter
374,
which,
even
though
it
was
largely
duplicative
of
the
sales
and
use
tax
act
of
1955
provided
entirely
within
the
chapter
for
the
imposition
collection
and
administration
of
the
lsst
in
in
matthews
versus
state
of
nevada.
In
1967,
the
nevada
supreme
court
upheld
the
constitutionality
of
the
lsst
against
a
challenge
that
argued
that
the
lst
was
really
an
amendment
to
the
sales
and
use
tax
act
and
thus
was
required
to
be
approved
by
the
voters.
B
At
an
election,
the
court
concluded
that
the
legislature
has
brought
authority
to
enact
laws
granted
by
the
nevada
constitution
and
narrowly
construed
the
prohibition
against
amending
state
statutes
approved
by
referendum
according
to
the
court.
The
lsst,
even
though
it
had
the
effect
of
increasing
the
sales
and
use
tax
rate
by
one
percent,
was
not
an
amendment
to
the
sales
and
use
tax
act.
In
the
court's
opinion,
it
was
very
important
that
the
tax
was
enacted
as
a
new
chapter
of
the
nrs.
B
So
the
the
implementation
of
the
lsst
was
not
dependent
in
any
way
on
the
provisions
of
the
of
the
sales
and
use
tax
act.
The
court
also
noted
that
the
lsst
on
its
face
did
not
make
any
amendments
to
the
text
of
the
sales
and
use
tax
act.
It
was
a
whole
new
chapter
that
did
not
touch
that
area.
B
That's
that
chapter
of
law
and
finally
the
court
did
note
that
the
purpose
of
the
lsst
was
different
from
the
sales
and
use
tax
act,
in
that
the
lsst
was
required
to
be
deposited
for
use
to
support
the
public
schools,
while
the
sales
and
use
tax
act
was
required
to
be
deposited
in
the
state
general
fund
for
general
government
governmental
purposes.
B
So
the
matthews
case
is
very
important
because
it
established
the
precedent
that
the
legislature
is
not
amending
the
sales
and
use
tax
act
such
that
a
vote
of
the
people
is
required
if
the
legislature
enacts
a
new
law.
That
does
not
make
amendments
to
the
text
of
the
sales
and
you
sex
act,
but
rather
creates
a
new
act,
a
new
law
that
is
complete
in
itself
and
does
not
require
referring
back
to
the
sales
and
use
tax
act
to
be
administered.
B
So
that
is
why
you've
seen
you
know,
laws
and
bills
proposed
by
the
legislature
that
create
entirely
new
chapters
that
do
seem
duplicative
of
the
sales
and
use
tax
act.
But
that
is
so
that
that
tax
is
is
really
a
new
law.
It's
a
it's
a
separate
sale,
a
sales
tax
rate
that
can
be
imposed
and
administered,
even
if
the
sales
and
use
tax
act
did
not
exist
so
and
and
kind
of
a
final
historical
note
for
the
1955
sales
and
use
tax
act
takes
us
to
1979..
B
The
legislature
proposed
a
ballot
question
under
the
nevada
constitution
to
amend
the
1995
1955
sales
and
use
tax
act
to
exempt
from
the
sales
and
use
taxes,
food
for
human
consumption
other
than
food
intended
for
immediate
consumption
and
importantly,
to
provide
that
the
legislature,
without
submitting
the
proposal
to
a
vote
of
the
people,
could
amend
administrative
aspects
of
the
sales
and
use
tax
act.
This
proposal
was
submitted
to
the
voters
at
a
special
election
held
on
june
5th
1979,
and
this
proposal
was
also
approved
by
the
voters.
B
B
So
with
that
history,
I
do
kind
of
want
to
summarize,
where
the
legislature
stands
now,
with
its
ability
to
enact
bills
relating
to
sales
and
use
taxes
and
what
does
or
does
not
need
to
be
submitted
to
a
vote
of
the
people.
B
With
that
vote,
the
legislature
does
have
the
authority
to
enact
additional
sales
and
use
tax
rates
so
long
as
the
law
enacting.
That
rate
does
not
on
its
face,
amend
the
sales
and
use
tax
is
complete
in
itself
and
does
not
require
any
reference
to
the
sales
and
use
tax
act
for
its
implementation
and
again
that
would
be
for
additional
sales
and
use
tax
rates
imposed
by
the
legislature.
B
There
also
may
be
different
requirements
for
sales
and
use
tax
rates
that
are
authorized
to
be
imposed
by
local
governments,
but
for
the
legislature
to
impose
an
additional
sales
tax
rate.
B
It
can
be
done
without
a
vote
of
a
people
so
long
as
it's
a
an
act
that
is
complete
in
itself
and
then
separate
from
the
sales
and
use
tax
act,
and
the
example
of
that
is
is
the
lsst
chapter
374
of
nrs,
which
is
a
new
chapter
that
contains
all
of
the
provisions
necessary
to
to
implement
that
tax
after
the
1979
special
election.
B
The
legislature
also
has
the
authority
to
amend
the
administrative
provisions
of
the
sales
and
use
tax
act
or
enact
new
provisions
of
the
act
that
can
be
characterized
as
administrative,
so
common
types
of
bills
in
this
area
are
those
bills
where
a
term
that
is
found
in
the
sales
and
use
tax
act
is
interpreted
for
the
purposes
of
administering
the
act.
So,
for
example,
if
an
exemption
uses
certain
terms
and
that
term
needs
to
that
term
needs
to
be
defined
or
interpreted
in
order
to
be
implemented.
B
That
is
an
administrative
change
and
the
legislature
can
define
the
term
interpret
the
term
as
an
administrative
provision
of
the
sales
and
use
tax
act
similar
you
know
similar.
Similarly,
you
know
provisions
governing
the
collection
of
the
tax
are
considered
administrative
provisions
and
can
be
done
without
submitting
a
vote.
Submitting
a
proposal
to
the
voters
and
and
those
types
of
provisions
would
be.
You
know
how
the
department
of
taxation
collects.
The
tax.
B
B
B
The
most
frequent
occurrence
that
I
have
experienced
is
when
the
legislature
enacts
new
product
exemptions,
exempts
products
from
the
sales
and
use
tax
act
with
a
new
exemption
in
order
to
provide
the
exemption
from
all
sales
and
use
tax
rates,
including
the
two
percent
general
fund
portion.
B
The
legislature
needs
to
propose
a
ballot
question
to
provide
the
exemption
from
that
two
percent
portion
and
and
in
the
bills
you
know
we'll.
We
usually
would
put
in
a
provision
that
submits
that
question
to
the
voters
and
then
makes
amendments
to
the
lsst
and
the
other
sales
and
use
tax
rates
contingent
upon
that
question
being
approved
by
the
voters,
as
mr
johnson
mentioned,
suda
does
require
that
the
tax
base
for
state
and
local
tax
rates
be
the
same.
B
So
when
we
are
enacting
exemptions,
it
is
important
to
know
that
you
need
to
exempt
the
you
need
to
enact
the
exemption
for
all
sales
and
use
tax
rates,
and
that's
what
triggers
the
requirement
to
submit
to
the
voters
is
you
need
to
exempt
it
from
the
two
percent
rate,
as
with
all
other
rates,
so
that
triggers
an
amendment
to
the
sales
and
use
tax
act
and
require
submission
to
the
voters
to
to
be
approved.
B
So
that
is
a
kind
of
history
of
the
sales
and
use
tax
act
of
1955
and
and
how
it
limits
the
legislature's
ability
to
make
changes
to
the
sales
and
use
tax
laws.
I'd
be
happy
to
answer
any
questions.
E
B
Yes,
yes,
and
many
of
the
many
of
the
exemptions
from
the
sales
and
use
tax
act
have
been
submitted
to
the
voters
and
been
approved
going
back
to
1979.
The
exemption
for
food
for
human
consumption
was
submitted
to
the
voters
and
approved
more
recently,
there
have
been
exemptions
from
for
for
medical
devices
that
have
been
submitted
to
the
voters
and
approved
the
proposal
to
exempt
feminine
feminine
hygiene.
B
Products
was
submitted
to
the
voters
and
approved
so
so,
if,
if
we're
enacting
a
a
new
exemption
where,
if
the
legislature
wants
to
exempt
a
a
a
product
that
is
not
currently
exempt
but
wants
to
exempt
it
from
the
sales
tax,
that's
an
amendment
to
the
act
and
would
need
to
be
submitted
to
the
voters.
B
If
there's
an
exemption
that
has
been
enacted,
for
example,
the
exemption
on
medical
devices
that
was
approved
by
the
voters,
the
legislature
can
define
those
terms
for
the
purpose
of
implementing
and
administering
the
act
so
and-
and
the
legislature
has
done
that,
where
an
exemption
is
enacted.
But
then
we
need
to
go
in
and
define
okay.
What
is
meant
by
a
medical
device
and
the
legislature
then,
can
go
in
and
define
those
terms
and
and
frequently
they
are
defined
in
accordance
with
definitions
provided
by
suda.
E
What
about
the
cases
where
we
we're
trying
to
attract
a
new
company
here
and
we're
we're
saying
that,
for
your
large,
your
large
new
structure
build
your
new
campus
that
you're
building
we're
going
to?
Let
you
exempt
sales
tax
on
the
materials
and
machinery
that's
being
brought
in.
So
that's
not
a
broad
product
base,
but
it's
specific
to
certain
companies
or
individuals.
B
And
I
think
there
are
two
kind
of
two
ways
that
that
is
done.
Most
of
the
sales
tax
abatements
that
have
been
enacted
for
economic
development
purposes
do
not
abate
the
state
two
percent
general
fund
tax
rate,
so
generally
the
the
businesses
that
receive
an
abatement
they
will
get.
You
know
they'll,
be
awarded
an
abatement
of
certain
sales
and
tax
sales
and
use
tax
rates,
but
the
law
provides
that
the
two
percent
sales
and
use
tax
act
rate
cannot
be
abated.
B
B
Exactly
well,
I
I
guess
I
would
say
when
an
abatement
is
awarded
either
by
the
office
of
economic
development
or
whatever
entity
is
awarding
an
abatement.
That
entity
cannot
award
an
abatement
of
the
state,
two
percent
sales
tax
rate
they
they.
So
what
ends
up
happening
is
the
abatement
is
of
sales
and
use
tax
rates
at
the
local
level.
A
Okay,
so
I
I
just
had
one
quick
question
that
I
think
popped
up
I
was
making.
I
was
making
the
list
based
on
the
history
that
you
brought
up
mr
fernley,
and
I
I
just
wanted
to
kind
of
put
this
question
out
there,
because,
when
you
think
about
the
matthews
case,
it
really
brought
home.
I
guess
you
know,
for
everybody,
everybody,
that's.
A
You
know
gone
to
law
school
and
suffered
through
constitutional
law,
which
was
one
of
my
favorite
classes
that
when
you
have
two
constitutional
provisions
that
are
in
conflict
with
each
other,
and
I
and
I
I
wanted
to
kind
of
draw
that
out
a
little
bit,
because
I
feel
it's
an
important
nuance.
A
But
that
has
happened
more
than
once
within
our
legislative
history
and
it
it
was
also.
I
think
something
that
we
were
kind
of
trying
to
hedge
our
bets
around
with
the
digital
goods
bill
that
I
had
and
we
looked
deeply
at
the
1955
sales
tax
act
to
try
to
determine
if
number
one
is
a
proper.
Is
it
correct?
Are
we
doing
everything
that
we
can
do
in
order
to
make
sure
that
this
legislation
won't
come
under
scrutiny?
A
And
so
I
wanted
you
to
just
in
a
very
small
way,
because
it
is
prior
legislation
that
had
a
hearing
how
the
1955
sales
tax
act
was
not
triggered
from
the
digital
goods
bill.
B
Certainly
yeah
I
can
I
can.
I
can
address
that
question
so
and-
and
I
think
it
goes
back
to
that-
the
digital
goods
bill
from
the
2019
session
and
the
2021
session
was
based
on
the
model
of
the
lsst
and
the
upholding
of
the
lsst
by
the
matthews
case,
in
that
it
was.
It
was
drafted
as
an
entirely
new
law
that
had
all
of
the
administrative
provisions
and
the
collection
provisions
in
in
that
chapter,
imposing
the
act
and
was
not
amending
the
sales
and
use
tax
act.
B
So
that's
why
those
bills
had
all
the
new
language
that
seemed
duplicative
of
the
sales
and
use
tax
act.
It
was
so
that
that
statute
could
be
complete
in
itself
as
the
lsst
was
and
could
stand
without
relying
on
the
sales
and
use
tax
act.
That
was
the
the
model
laid
out
with
the
lsst
and
the
matthews
case
for
how
to
enact
additional
sales
and
use
tax
rates
and,
and
that
is
kind
of
the
the
model
that
was
followed
with
those
bills.
A
And
thank
you
for
that.
I
I
super
appreciate
the
presentation
when
you
were
talking
I
was
just
like.
Should
we
have
put
in
the
givens
tax
restraint
initiative
that
that's
already
played
itself
out
in
2021,
wonderful
case
law
that
has
been
triggered
from
prior
activity
in
the
legislative
session?
So
I
appreciate
it
and-
and
I
just
want
to
let
the
members
know
like
a
lot
of
these
presentations.
I
know
when
you
see
the
agenda
you're
like
man,
that's
a
whole
lot.
A
When
you
see
the
writing
in
white
and
black
print
and
I'm
trying
to
give
you
guys
a
solid
foundation
so
that,
as
you
get
policy,
come
up
with
ideas
for
policy
or
even
when
you
travel
in
csl
csg,
like
for
revenue
purposes,
I'm
trying
to
give
you
that
solid
foundation
of
what
is
going
on
in
our
state
and
like
a
baseline
for
the
policy,
so
you
can
sit
because
I
think
it's
very
important
and
and
when
we're
in
legislative
session,
we
don't
have
time
to
to
do
this.
A
In
committee
we
don't,
and
so
I
want
to
kind
of
help
you
guys
understand
like.
Why
is
she
you
know
trying
to
do
professor
tax?
I'm
really
not
I'm
just
trying
to
kind
of
establish
a
place
for
you
guys
to
understand.
I
guess
something
that
I
love
severely,
but
moving
on
to
agenda
item
number
six
presentation
on
on
nevada
sales
and
tax
sales
and
use
tax
by
the
division
of
taxation.
H
Thank
you,
chair,
o'neill,
so
good
afternoon,
chair
neal
vice
chair
cohen
in
the
committee.
We
thank
you
for
having
the
department
of
taxation
here
today
to
present
on
sales
and
use
tax
and
also
on
liquor
tax.
My
name
is
shelly
hughes,
the
executive
director
for
the
department
of
taxation.
H
I
brought
with
me
today
my
team
of
subject
matter
experts
to
help
me
present
on
these
topics.
Jennifer
roebuck
is
the
deputies,
the
department's
deputy
executive
director
of
compliance
and
she
will
help
me
present
on
the
sales
and
use
tax
and
melissa
flatley
is
the
department's
chief
executive,
deputy
and
joe
lynn.
Smith
is
the
department's
ex
excise
tax
manager
and
they
will
present
on
liquor
tax,
which
is
the
next
agenda
item,
and
so,
if
deputy
roebuck,
if
you
can
please
share
your
screen.
H
H
The
department
is
responsible
for
also
appraising
property
values
of
interstate
inter
county
and
mining
properties,
and
we
establish
guidelines
for
county
assessors
recorders
and
treasurers.
We
review
local
government
budgets,
audits
and
pr.
We
prepare
the
audit
valorem
tax
rates.
We
advise
local
governments
on
the
budget,
act,
compliance
and
financial
management
matters,
and
we
have
a
demographer
that
certifies
the
annual
population
estimates
for
the
state
counties
and
incorporated
cities.
I
Thank
you,
director,
hughes
and
thank
you,
chair,
neil
in
the
committee
for
your
time
this
afternoon
also
really
appreciated
the
presentations
by
mr
johnson
and
mr
fernley
always
good
to
learn
more
things
about
what
we
do.
Every
day
for
the
record,
I'm
jennifer
roebuck
deputy
director
of
compliance
for
the
department
of
taxation.
I
Most
of
the
following
slides,
include
statutes
and
regulations.
The
department
refers
to
regularly
it
is
not
a
comprehensive
list.
It
is
meant
to
introduce
some
concepts
that
direct
some
of
our
functions.
As
director
hughes
mentioned,
one
of
the
19
tax
types
that
the
department
oversees
is
sales
tax,
chapter
372
of
the
nrs,
governs
sales
and
use
tax.
This
slide
includes
several
statutes
that
the
department
staff
use
when
explaining
sales
tax,
372
105,
imposes
the
sales
tax
on
gross
receipts
from
the
retail
sales
of
tangible
personal
property.
I
372.025
defines
gross
receipts
to
mean
the
sales
price
and
372.085
defines
tangible,
personal
property,
which
we
often
refer
to
as
tpp,
so
in
other
words,
sales
tax
is
applied
to
the
sales
price
of
tangible
personal
property.
Something
to
keep
in
mind
is
that
sales
tax
is
not
imposed
on
the
property
itself,
it
is
imposed
on
the
retail
sales
transaction.
I
Whether
or
not
a
sale
is
subject
to
sales
tax
is
one
of
the
more
common
questions
that
arise,
and
it
is
a
common
error
found
in
audit
nrs
372
155
says
that
all
gross
receipts
are
taxable
until
the
contrary
is
established
notice.
That
section
1
says
that
the
burden
of
the
proof
is
on
the
seller,
so
in
other
words,
all
sales
are
taxable
unless
specifically
exempted
by
statute.
I
I
I
If
the
purchaser
pays
the
sales
tax
and
possesses
a
receipt
showing
sales
tax
paid,
it
is
tempting
to
think
that
sales,
tax
and
use
tax
are
exactly
the
same.
However,
this
is
not
the
case.
The
simple
distinction
is
that
sales
tax
is
imposed
on
the
retailer
and
the
retailer
reports
and
pays
the
sales
tax
to
the
state
in
situations.
I
I'm
sorry,
while
use
tax
is
paid
by
a
consumer
directly
to
the
state
in
situations
when
the
sales
tax
was
not
paid.
So,
for
example,
if
you
buy
something
from
out
of
state
and
have
it
delivered
to
your
home
here
in
nevada,
it
is
possible
that
the
retailer
did
not
charge
sales
tax,
because
the
retailer
was
not
registered
to
do
so
in
nevada.
I
I
I
Repair,
labor
or
installation
labor
are
not
taxable
as
long
as
the
seller
itemizes
the
tpp
separately
from
the
labor.
Some
labor
is
taxable
as
part
of
a
taxable
sale,
so
these
transactions
need
to
be
examined
carefully.
The
amount
of
a
trade-in
does
not
reduce
a
taxable
sales
price,
because
the
trade
is
part
of
the
payment.
However,
there
is
a
specific
exemption
for
vehicle
trades
and,
by
the
way,
there's
a
partial
tax
credit
for
the
vessels
traded
in.
I
This
is
something
that
goes
back
to
what
mr
furley
was
talking
about,
where
the
the
vessel
trade
actually
only
reduces
it
to
the
two
percent,
which
is
which
is
required
by
law.
I
So
what
about
when
I,
as
a
private
individual,
want
to
sell
my
car
occasional
sales
are
exempt
from
sales
tax,
so
put
very
simply,
a
retailers
is
defined
as
a
person
making
more
than
two
retail
sales
in
a
12
month
period.
Note
that
there's
no
mention
of
exempting
private
party
sales.
It
is
really
based
on
the
number
of
sales.
So
as
long
as
I'm
not
selling
more
than
a
couple
of
cars
over
the
year,
I
don't
need
to
register
as
a
retailer
and
collect
sales
tax.
I
As
stated,
sales
for
resale
are
not
retail
sales.
When
a
business
makes
a
purchase
for
resale,
it
presents
a
resale
certificate.
The
seller
keeps
the
certificate
on
file.
In
case
of
audit,
the
purchaser
is
taking
responsibility
for
the
sales
tax
on
the
subsequent
sale
of
the
specific
tpp
on
the
certificate
or
if
the
used
or
they
pay
use
tax.
If
the
tpp
is
later
used
instead
of
resold.
I
I
Deducting
bad
debt
from
the
taxable
sales
is
rather
complex,
so
for
purposes
of
this
presentation
I
will
just
introduce
the
concept
put
simply
if
a
retailer
makes
a
sale
on
credit.
The
full
sales
price
is
reported
for
sales
tax
to
the
department
when
the
tpp
is
delivered
to
the
customer
note
that
the
retailer
has
not
necessarily
collected
the
full
sales
tax
at
the
time
of
the
sale.
If
the
purchaser
defaults,
the
seller
is
entitled
to
a
deduction
equal
to
the
unrealized
portion
of
the
taxable
sales
price.
I
I
I
I
The
definitions
are
very
involved,
so
it
is
not
cut
and
dry,
and
there
are
plenty
of
gray
areas
that
must
be
dealt
with.
Medicine
is
exempt
under
certain
circumstances.
For
example,
we
think
of
aspirin
as
medicine.
However,
you
should
be
paying
tax
when
you
buy
it
at
the
convenience
store
if
it
is
prescribed
or
provided
by
a
physician.
However,
that's
when
it
is
exempt
domestic
fuels
mean
any
matter
used
to
produce
domestic
heat.
So
here
is
another
example
where
the
same
item
may
be
exempt
or
taxable
depending
on
the
nature
of
the
sale.
I
Propane
purchased
to
heat
one's
home
is
exempt,
propane
used
to
cook
is
taxable
gas,
electricity
and
water
are
exempt
if
they're
delivered
to
consumers
through
mains
lines
or
pipes
and
again
keep
in
mind.
The
list
here
is
simplified
and
should
not
be
taken
at
face
value,
because
there
are
a
lot
of
complexities
involved.
I
This
slide
includes
some
sales
that
are
exempt
of
because
of
who
the
customer
is.
Retailers
are
expected
to
keep
reliable,
complete
records
as
assurance
that
the
actual
customer
is
exempt.
This
can
be
harder
than
it
seems
so.
For
example,
an
employee
of
the
state
who
is
traveling
for
work
has
lunch
at
a
restaurant
during
the
trip
this
employee
says
that
their
lunch
should
be
exempt
because
they're
on
business
and
they're
being
reimbursed
by
the
state
who's
exempt.
I
I
I
Finally,
there
are
some
non-profit
organizations
created
for
religious,
charitable
or
educational
purposes,
and
we
call
them
rce
that
must
go
through
an
application
review
process
before
receiving
approval
for
an
exemption
from
sales
and
use
tax.
The
rce
approval
letters
must
be
kept
by
the
retailer
to
support
the
exempt
sale.
The
letters
do
expire
and
the
rce
organization
must
renew
the
exempt
status.
I
I
I
I
So
it's
important
to
note
that
the
department
is
prohibited
from
sharing
any
taxpayer
reporting
information.
In
fact,
we
must
protect
the
identity
of
the
individual
taxpayers.
Even
in
the
case
of
reported
statistics,
we
do
accept
leads
and
we
do
accept
referrals
as
to
whether
a
particular
taxpayer
may
not
have
collected
and
remitted
sales
tax.
However,
we
cannot
release
the
results
of
any
leads
or
referrals.
I
I
So
here
we
have
a
couple
of
significant
common
types
of
retail
sales
that
have
evolved
substantially
over
the
past
few
decades
and
they're
so
common
that
we've
already
addressed
one
of
them,
the
downloaded
music,
many
types
of
tangible
personal
property
have
been
converted
to
digital
or
electronic
format
streaming
or
downloaded
games.
Music
reading
materials
movies
and
other
programs
were
originally
on
tangible
media
and
subject
to
sales
tax,
so
the
sales
of
digital
or
electronic
electronically
transmitted
entertainment
are
not
tangible,
personal
property
and
not
are
not
taxable
in
our
current
tax
structure
in
nevada.
I
So
on
the
other
side,
we
have
consumers
who
who
purchase
from
remote
or
online
retailers
who
are
not
registered
to
collect
nevada
sales
tax.
They
have
been
difficult
to
identify
for
payment
of
use
tax
unless
they're
a
business
becoming
a
full
member
of
streamlined
sales
tax
was
instrumental
in
receiving
sales
tax
due
to
nevada
by
way
of
central
service
provider
reporting
the
wayfarer
decision
in
2018
or
opinion
in
2018
led
to
the
passage
of
remote
sellers
and
marketplace
facilitators
laws
which
made
enormous
strides
in
closing
this
gap.
H
So
I'm
going
to
talk
a
little
bit
about
the
sales
tax
rates.
This
first
slide
here
is
discussing
the
legislative
history
of
the
sales
used
packs
act
since
brian
finally
discussed
this
already.
I
I
won't
go
into
further
detail
on
this
slide,
but
it's
just
for
your
review.
H
So
the
sales
and
use
tax
rate
is
comprised
of
four
components,
plus
any
local
option.
Taxes.
The
base
tax
rate
is
6.85
percent,
which
has
an
allocation
of
two
percent
that
goes
to
the
state
general
fund.
2.6
is
the
local
school
support
tax.
The
tax
received
is
distributed
to
school
districts
where
the
businesses
are
located.
H
H
H
H
H
H
H
The
current
rate
of
2.6
has
been
in
place
since
july.
First
2009
for
in-state
collections,
99.25
percent
is
distributed
to
the
county
of
origin
and
out
of
state
collections,
99.25
is
distributed
to
the
state
education
fund.
As
of
july
1st
2021.
H
H
The
basic
city
county
relief
tax
is
outlined
in
nrs
377.
The
rate
is
0.5
percent
and
was
enacted
in
the
1969
legislative
session.
Foreign
state
returns.
98.25
is
allocated
to
the
county
where
the
sale
is
made
for
out-of-state
returns.
98.25
is
allocated
based
upon
a
population
ratio
for
distribution
to
local
governments
through
the
consolidated
tax
program.
H
H
Supplemental
city,
county
relief
tax
is
outlined
in
nrs
354
in
377..
The
rate
is
1.75
percent
and
was
enacted
in
the
1981
legislative
session.
The
current
distribution
is
98.25,
which
goes
to
the
local
governments
through
the
consolidated
tax
programs,
distribution
formula
and
1.75
percent
is
distributed
to
the
state
general
fund.
H
H
H
I
I
I
We
have
several
opportunities
for
assistance
and
education
available
for
taxpayers
and
the
public.
We
are
in
the
process
of
reintroducing
ask
the
advisor
training,
both
in
person
and
virtually
as
a
couple
of
options
for
taxpayers
who
are
new
to
the
department
and
to
reporting
the
department
publishes
tax
notes,
technical
bulletins
and
faqs
on
a
wide
variety
of
topics.
I
I
I
The
total
gross
receipts
total
exempt
sales
and
total
taxable
sales
for
the
reporting
period
must
be
reported
in
each
county
that
the
sales
took
place.
There
is
also
a
column
to
report
purchases
for
use
tax
businesses
that
operate
solely
as
consumers
report.
Similarly,
however,
they
only
report
the
total
amount
of
purchases
reportable
for
use
tax
in
the
appropriate
county
on
a
consumer
use
tax
return.
I
Should
a
taxpayer
fail
to
report
timely
or
correctly,
there
are
penalties
and
interests
that
are
imposed.
Nrs
360
417
provides
authority
to
assess
penalty
and
interest
on
the
amount
of
unpaid
tax.
This
is
used
for
cases
when
the
tax
is
paid.
Late,
360
300
provides
authority
to
estimate
the
amount
of
tax
for
unfiled
periods
and
to
assess
penalty
and
interest
on
the
unpaid,
estimated
tax.
This
is
used
for
delinquent
periods,
and
that
is
no
return,
was
filed
at
all.
I
363.330
provides
authority
to
impose
an
additional
penalty
in
cases
where
the
department
finds
negligence
or
intentional
disregard
and
36340
provides
authority
to
assess
25
of
the
tax
due
to
fraud
or
evasion.
If
the
fraud
or
evasion
involves
vehicles,
vessels
or
aircraft,
the
penalty
is
three
times
the
tax.
I
I
It
should
be
noted
that
if
a
retailer
requests
a
refund
of
sales
tax
from
the
department,
it
must
be
verified
that
the
tax
was
refunded
or
not
collected
in
the
first
place
from
their
customer.
This
is
to
prevent
sales
tax,
both
collected
and
refunded,
from
enriching
the
retailer
by
that
amount.
The
retailer
must
demonstrate
that
over
over
collected
sales,
tax
was
refunded
to
the
customer
further.
If
a
retailer
over
collects
sales
tax
and
does
not
refund
the
customer,
the
over
collected
tax
must
be
remitted
to
the
state.
H
Thank
you
craig
johnson
earlier,
provided
an
overview
of
streamlined
sales
tax
agreement.
Nevada
became
a
full
member
to
the
governing
board
of
the
streamlined
sales
and
use
tax
agreement.
On
april
1st
2008.,
as
mr
johnson
stated,
the
purpose
of
the
agreement
is
to
simplify
and
modernize
sales
and
use
tax
administration
in
order
to
substantially
reduce
the
burden
of
tax
compliance.
H
Chapter
360b
of
the
nrs
is
known
as
the
simplified
sales
and
use
tax
administration
act
and
the
provisions
of
the
chapter
implement
the
streamlined
sales
and
use
tax
agreement.
In
mr
johnson's
presentation.
He
refers
to
sourcing
rules
in
nevada.
We
implemented
nrs
360b
360,
which
provides
that
the
sourcing
takes
place
where
the
sale
takes
place
or
where
the
delivery
occurs.
H
So
now
I
apologize
yeah
director.
A
A
I
On
it,
okay,
I
guess
I
get
to
do
all
the
talking
today,
just
kidding
okay,
so
deputy
director
jennifer
robeck
again,
this
slide
includes
authority
to
investigate
or
audit
the
books
of
taxpayers
to
assure
compliance.
Auditors
are
basically
checking
the
taxpayer's
homework.
They
don't
collect
any
money
as
part
of
their
duties.
I
Audit
selection
can
occur
for
a
number
of
reasons.
The
most
common
is
random
selection.
Once
a
taxpayer
has
been
selected,
the
audit
case
is
assigned
to
an
auditor
who
contacts
the
taxpayer
by
telephone.
They
discuss
the
audit
scope
and
any
necessary
records,
and
they
schedule
a
date
and
time
that's
convenient
for
both
parties.
For
the
audit
to
start
a
letter
to
confirm
is
sent
to
the
taxpayer
so
that
they
can
properly
prepare
for
the
audit.
I
The
audit
period
is
generally
three
years,
but
it
can
be
as
long
as
eight
years
if
the
taxpayer
did
not
file
returns.
Usually,
auditors
test
the
reporting
by
selecting
a
sample
of
transactions
to
review.
Auditors,
compare
the
taxpayers
books
with
what
was
reported
to
the
to
the
department
and
make
any
adjustments
if
errors
are
identified.
I
As
part
of
this
process,
auditors
assist
taxpayers
with
any
questions
and
in
most
cases
the
audit
goes
smoothly.
The
audit
concludes
with
an
exit
interview
when
an
auditor
explains
findings
advises
of
any
penalties
and
interest,
if
applicable,
and
explains
the
appeal
process.
The
auditor
mails
an
audit
report
that
explains
adjustments,
authority
and
recommendations
along
with
schedules
detailing
any
adjustments.
I
Nrs36095
provides
that
forms.
Instructions
and
regulations
must
be
brief
and
easy
to
understand
once
a
form
and
straightforward
instructions
are
provided,
they
should
not
change
unless
there
are
some
compelling
reason.
This
statute
also
requires
that
exemptions
or
waivers
must
be
equitable
and
while
being
consistent
with
legislative
intent,
retain
broader
space
for
the
affected
tax
audits
and
collection
activity
must
be
equitable
and
uniform.
This
is
intended
to
assure
every
taxpayer
pays
the
full
amount
composed
as
an
important
note.
Pursuant
to
360
145
department,
employees
cannot
be
evaluated
on
assessment
or
collection
amounts.
K
I
So
we
have
a
few
options
to
assist
taxpayers,
including
compromise
of
taxpayers,
liability,
possibility
to
waiver,
reduce
interest
and
penalty.
I
H
So,
in
order
to
wrap
this
up
quickly,
so
we
can
move
on
to
the
next
agenda
item.
I
just
wanted
to
let
you
know
that
the
rest
of
the
slides
discuss
the
department's
appeals
process,
how
a
taxpayer
can
request
an
advisory
opinion
that
explains
how
tax
applies
to
their
specific
situation,
and
then
it
we
have
a
little
bit
of
information
on
reports
and
publications
that
the
department
produces
and
then
I
wanted
to
give
a
sales,
an
update
on
the
sales
tax
holiday.
H
A
So,
thank
you,
director,
hughes
and
tax
team.
It
was
good
information.
I
believe
there
are
probably
lots
of
questions
we're
going
to
take
a
couple
and
then
because
I
want
to
try
to
move
the
liquor
and
be
respectful
of
the
other
folks
we
have
in
the
zoom,
which
will
complement
that
conversation.
E
Thank
you,
chair,
neil
and
I'll.
Just
try
to
do
one
or
two
questions.
I
will
not
do
all
of
them,
but
I'll
be
calling
you
guys.
I
thank
you
so
much
for
the
information.
I
know
there's
a
lot
there,
so
my
first
question
actually
has
to
do
with
the
taxpayer
bill
of
rights
that
you
mentioned.
My
I've
got
all
the
slides
together.
So
I'm
not
sure
exactly
what
number
it
was
for
your
specific
presentation,
but
for
my
notes
it
was
slide.
61
of
the
entire
packet.
You
mentioned
the
taxpayer
bill
of
rights.
E
I
Thank
you,
assemblyman
assemblywoman
anderson,
jennifer,
robeck,
deputy
director
for
the
department.
This
is
a
great
question.
It's
very
timely
because
of
our
the
recent
bill
that
passed
about
language,
so
the
department
is
currently
undergoing
a
review
of
the
various
publications
that
we
have
out
on
our
website,
as
well
as
the
information
that's
provided
to
taxpayers
over
the
phone
or
in
person.
Unfortunately,
we
do
have
a
number
of
staff
who
are
multilingual,
and
so
they
are
gracious
enough
to
help
us
out
with
that.
I
E
Yes,
there
go
ahead,
it's
all
good
and
then
also
just
wanted
to
double
check.
Make
sure
that
there's
also
handicap
compliant
that
if
we've
got
somebody
that
needs
braille
or
other
other
sorts
of
needs
such
as
that
there's
that
is
also
available,
so
just
wanted
to
put
that
in
there.
But
then.
The
second
question
I
had
kind
of
goes
back
to
what
mr
johnson
had
mentioned,
which
was
the
sales
tax
collection,
relies
on
voluntary
compliance,
and
I
feel,
like
that's,
also
kind
of
what
the
audit
information
was
talking
about.
I
I
You
know,
as
you
know,
the
the
like
many
agencies,
our
audit
section
is,
is
depleted
of
staff
not
totally,
but
we
we
have
done
a
number
of
audits
as
far
as
the
actual
number
we'll
have
to
follow
up
with
you
on
that,
I
can
tell
you
that
that
you
know,
as
I
mentioned
before,
department
staff
cannot
be
held
to
the
amount
that's
been
collected,
however,
they're
held
to
their
efficiency
as
well
as
their
thoroughness
when
they,
when
they
perform
audits.
That,
actually
is
my
background.
I
I
was
in
audit
for
10
12
years.
I
want
to
say-
and
so
that
is
something
that
is-
is
really
really
important
to
me,
as
well
as
trying
to
increase
the
number
of
audits,
as
well
as
the
the
level
of
of
education
and
training
that
each
auditor
receives
in
order
to
do
some
of
these
more
complex
audits,
including
the
various
taxes
as
well
as
these
marketplace,
facilitators
that
sort
of
thing,
these
very
large
taxpayers
that
we
have.
We
want
to
make
sure
that
everybody
has
an
equal
opportunity
to
be
audited.
A
A
I
just
have
one
really
the
retailer
statue,
which
says
that
you're
a
retailer,
if
there's
more
than
two
sales
in
a
year
and
12
months-
and
I
was
just
wondering
because
you
know
when
we
did
wayfair
it's
200
transactions,
and
so
that
just
sounded
like
maybe
there's
inequity
in
the
law
that
we
might
need
to
create
parody
around.
I'm
not
sure,
though,.
I
A
chair,
neal
deputy
director
jennifer
robeck,
if
I
can
probably
attempt
to
answer
your
question
there,
so
the
retail,
the
definition
of
retailer,
has
been
in
statute
for
for
a
number
of
years.
I
have
to
pull
it
up
and
see
exactly
how
long,
but
that
really
comes
down
to
the
taxpayers
who
have
a
presence
in
their
state
currently
and
so
the
the
200
transactions,
that's
more
specifically
for
the
remote
sellers
as
a
result
of
that
law
that
passed
in
2019.
I
A
All
right,
so,
are
there
any
additional
questions
on
the
sales
tax
sales
tax
portion,
we're
gonna,
move
to
liquor,
tax,
okay,
saying
none.
We
will
go
ahead
and
move
to,
because
department
of
tax
is
also
going
to
kick
off
the
conversation
on
liquor
tax.
A
But
I
wanted
to
give
a
special
note
here,
as
you
notice,
we
have
mr
hellerby
alfredo
alonso
and
mr
wadams
in
the
chat
and
the
reason
why
I
asked
these
three
lobbyists
to
be
in
the
chat
is
because
they
have
expertise
either
in
well,
579
or
just
in
broad
terms
with
liquor.
So
I
wanted
to.
A
I
asked
them
to
be
on
so
that
they
could
discuss
real
life
examples
on
how
it
works
and
also
provide
the
legislative
members
that
sit
on
the
committee,
additional
context
being
able
to
talk
to
the
department
of
taxation
and
ask
questions
and
also
be
able
to
talk
to
a
lobbyist,
who
is
directly
engaged
in
the
practice
of
it.
I
guess
that's
how
I'm
gonna
word
it,
but
they
have
expertise.
So
this
is,
I
wouldn't
say
this
is
unorthodox.
A
I'm
trying
to
have
a
well-rounded
conversation
on
this
topic
kind
of
the
same
way
where
we
had
brian
fernley
and
then
johnson,
I
kind
of
add
some
additional
context
and
within
sales
tax,
which
I
think
was
helpful
to
lift
up
the
topic
and
understanding.
A
So
I
wanted
to
say
that,
because
I
don't
want
anybody
to
be
alarmed,
I'm
just
trying
to
look
for
well-rounded
conversation
and
have
them
in
the
conversation
and
not
just
watching
it
on
youtube.
H
Thank
you,
chair
neal.
I
think
I'm
right
along
there
with
you
with
being
a
special
person.
My
name
is
shelly
hughes
executive
director
for
the
department
for
the
record.
I'm
going
to
turn
this
agenda
item
over
to
the
department's
chief
deputy,
melissa,
flatley
and
excise
tax
manager,
joe
lynn
smith.
F
F
All
right
so
consistent
with
the
agenda
description
for
our
presentation
today,
ms
smith,
and
I
will
give
an
overview
of
the
three-tier
system
that
regulates
the
distribution
and
sale
of
alcohol.
G
G
The
supplier
is
the
brewer
distiller
manufacturer
producer,
rectifier,
ventner
bottler
of
the
liquor
or
their
designated
agent
or
the
owner
of
the
liquor
when
it
is
first
transported
into
any
area
under
the
jurisdiction
of
the
united
states
government,
if
they
have
not
designated
an
importer
to
import
the
liquor
into
the
state
if
they
are
within
the
united
states,
but
outside
the
state.
The
supplier
is
again
the
brewer
distiller
manufacturer,
rectifier,
producer,
ventner
or
bottler
of
the
liquor
or
their
designated
agent.
G
G
G
The
majority
of
our
wholesalers
in
nevada
are
licensed
as
importers
and
wholesalers.
Anyone
who
holds
just
the
wholesaler's
license
can
only
purchase
their
liquor
from
another
in-state
wholesaler.
As
such,
there
are
very
few
in
nevada
who
just
have
an
import
who
have
a
wholesaler's
license,
and
third
is
the
retail
liquor
store
or
the
retailer
in
nevada.
A
retail
liquor
store
is
defined
as
an
establishment
where
beer,
wine
and
liquor
in
its
original
package
or
buy
the
drink
are
sold
to
a
consumer.
G
F
So,
although
the
general
rule
is
that
a
business
can
occupy
only
one
tier
of
the
three-tier
system,
nevada
law
has
created
several
exceptions
to
those
general
prohibitions
and
has
allowed
for
specific
types
of
businesses
that
are
both
supplier
and
retailer
and,
to
a
limited
extent,
distributor.
So
for
brew.
Pubs.
We've
listed
the
exceptions
here
and
I
can
provide
the
statutory
references
if
anyone
needs
them,
but
they're
contained
in
chapter
597
and
they
were
all
they've
all
been
amended.
F
G
So
for
liquor,
licensing
before
any
supplier
importer,
wholesaler,
brewer,
brewpub
craft
distiller
estate,
distiller,
winery
and
or
instructional
winemaker
may
possess
and
or
store
any
liquor
in
the
state.
They
must
first
obtain
a
state
liquor
license
which
is
issued
by
the
department
of
taxation
in
order
to
obtain
a
state
issued
liquor
license.
Applicants
except
for
suppliers
are
required
to
submit
their
application
to
either
the
city
or
the
county
in
which
their
business
will
be
located.
G
G
For
which
their
business
will
be
located,
this
then
begins
the
initial
review
and
approval
process.
Once
the
initial
review
process
has
been
completed,
the
department
receives
the
approved
packet
from
the
state
or
the
county,
along
with
any
of
the
required
document.
Documents
to
finalize
the
review
process,
collect
applicable,
bonds
fees
and
then
issue
the
license.
G
G
And
this
slide
represents
the
current
liquor
tax
rates,
licensing
fees
and
fines
issued.
Pursuant
to
the
liquor
awareness
program,
importer
wholesalers
pay
the
combination
of
the
license
fees.
The
importer
fee
is
determined
on
what
they'll
be
importing
it's
common
practice
for
importers
to
get
their
license,
so
they
can
import
and
sell
wine
beer
and
liquor
and
they
must
get
the
corresponding
wholesale
license.
So
the
product
can
be
sold.
G
G
Importers
of
liquor
must
pay
the
tax
after
receiving
the
liquor
in
the
state.
Currently,
all
suppliers
must
be
registered
and
hold
a
current
certificate
of
compliance.
Suppliers
can
ship
to
consumers
under
the
one
gallon
or
12
case
exemption.
The
supplier,
in
this
scenario,
is
required
to
report
and
pay
the
tax.
G
G
G
They
investigate
complaints
and
leads
involving
tobacco
and
liquor
issues
and
liquor
awareness,
fines.
They
build
cases
by
gathering
evidence,
maintaining
case
files,
prepare
investigation
and
audit
reports
and
represent
the
department
at
hearings.
Additionally,
the
investigators
work
closely
with
the
attorney
general's
office
to
ensure
compliance
with
the
tobacco
master
settlement
agreement.
F
It's
kind
of
unique
that
when
we
talk
about
liquor,
laws
they're
located
in
two
different
titles
of
the
nrs,
not
just
within
title
32,
so
title
32
is
the
taxation
title
and
in
chapter
369
are
the
statutes
on
intoxicating
liquor,
licenses
and
taxes,
and
those
are
the
provisions
where
the
department
is
authorized
to
license:
suppliers
and
wholesalers.
It
gives
the
rates
of
tax
and
it
talks
about
the
enforcement
by
the
department,
with
assistance
from
law
enforcement
in
certain
instances
on
the
other
side
of
so
not
on
this
slide.
F
Excuse
me
is
the
licensing
of
retail
establishments.
They're,
not
one
of
the
three
tier
exceptions
that
that
aren't
one
of
the
three
tier
exceptions
also
act
as
suppliers,
so
the
department
would
license
a
brewery,
for
instance,
or
a
brewpub,
but
they
don't
license
a
restaurant
that
serves
liquor.
All
of
those
licenses
are
done
at
the
local
government
level
outside
of
the
department.
F
On
the
other
side
of
the
slide,
chapter
597
is
located
in
title
52,
the
trade
regulations
and
practices
title
and
it's
sections
120
through
262
of
chapter
597,
the
statutes
there
are
incorporated
into
the
work
of
the
department,
but
are
not
enforced
by
the
department,
so
just
for
the
most
part.
So
these
statutes
concern
the
trade
practices
between
liquor
suppliers
and
wholesale
dealers,
as
well
as
the
limitations
and
exceptions
to
the
three-tier
system.
This
is
where
all
those
definitions
are
for
craft
distiller,
estate,
distiller
and
so
on.
F
F
There's
been
a
lot
of
innovation
in
the
alcohol,
alcoholic
or
liquor
beverage
area,
so
these
were
just
some
examples
of
things
that
we
brainstormed
to
talk
about,
how
they
fit
into
the
model.
It's
no
longer
limited
to
going
to
a
retailer
and
buying
a
bottle
of
alcohol
or
a
case
of
beer.
So
the
first
example
are
alcohol
pops.
F
So
your
popsicles,
the
department
has
been
presented
with
issues
on
licensing
for
manufacturing,
where
the
maker
of
the
popsicle
is
not
licensed
as
a
supplier
or
a
rectifier,
but
they're
producing
to
provide
these
alcohol
popsicles
to
retailers
for
resale.
So
there's
this
gray
area
of
how
they
fit
in
the
question
whether
they
can
sell
directly
to
the
public.
Is
it
like
a
bartender
selling
cocktails?
But
now
it's
different
because
they're
selling
to
a
retailer
and
a
retail
to
retail
sale
is
prohibited.
F
So
that's
an
area
that
has
been
addressed
for
a
while.
We
were
asked
to
talk
about
these
robot
bartenders
and
I
found
kind
of
two
different
models.
F
F
So
the
website
for
the
manufacturer
says
the
product
is
being
discontinued:
they're
refunding
customers
for
the
equipment
purchases,
but
they're
still
selling
the
pods
through
the
end
of
march.
Are
they
licensed
to
do
this
and
then
how
many
states
are
they
licensed
to
sell
alcohol?
So
it's
kind
of
the
outstanding
question,
but
the
second
model
doesn't
present
those
same
issues
where
it's
a
machine
that
mixes
the
alcohol
and
mixers
for
you.
F
But
the
machine
doesn't
come
or
the
pods
don't
come
with
liquor,
they're
only
the
mixers
and
then
you
add
bottles
of
alcohol
to
the
machine
to
mix
the
drinks.
So
your
the
customer
is
buying
the
liquor
at
a
retailer
to
add
to
the
machine
and
the
manufacturer
of
the
machine
may
be
selling
the
mixers
so
alcohol-free
and
it
doesn't
present
any
issues
for
liquor.
Tax.
F
F
How
is
that
done?
It's
simple
because
the
tax
is
actually
calculated
on
the
abv
of
the
cocktail,
so
it's
not
the
form
that
the
liquor
is
sold
in
so
much
as
the
concentration
of
liquor
in
the
in
the
can.
For
example,
I
did
some
searching
on
different
kinds
of
cocktails.
They
could
range
from
seven
and
a
half
percent
to
over
12
percent,
but
regardless
of
what
it's
called,
the
taxability
is
determined
by
the
abv.
F
It's
with
federal
law,
the
tax
and
alcohol
and
tobacco
tax
and
trade
bureau
or
ttb
does
provide
labeling
guidelines
for
suppliers
and,
although
they're
not
directly
incorporated
into
nevada
law,
the
department
will
sometimes
refer
to
those
in
determining
whether
something
is
beer
or
liquor,
for
example,
and
the
last
kind
of
new
product
that
we
wanted
to
talk
about
are
subscriptions
other
than
wine.
So
a
lot
of
us
are
familiar
with
wine
of
the
month
club,
but
they
also
have
whiskey
of
the
month.
Clubs
you
can
get.
G
So
during
the
2021
nevada
legislative
session,
changes
were
made
impacting
entities
who
manufacture
and
sell
alcoholic
beverage
in
the
state
of
nevada.
Nrs
369
was
amended
to
allow
an
in-state
retail
liquor
store
or
a
delivery
support
service.
Acting
on
behalf
of
the
retail
liquor
store
to
deliver
liquor
in
its
original
package
to
consumers
in
nevada,
the
following
requirements
must
be
met
for
the
sale
to
occur.
G
G
G
F
And
I
want
to
say
there
was
a
correction
to
the
data
on
this
slide
compared
to
what's
in
your
meeting
materials
when
the
slide
was
created.
The
figures
when
I
added
the
figures
for
fiscal
year,
20
and
21-
I
mistakenly
included
the
receipts
for
licenses
and
fines
and
the
slide
that
you're
seeing
on
the
screen
now
was
updated
to
reflect
only
the
tax
revenue
and
this
matches
the
numbers
provided
to
you
by
the
tax
team
on
page
123
of
your
materials
for
the
meeting,
as
well
as
the
annual
report
from
the
department
of
tax.
A
Thank
you
for
that
members,
any
questions
and
remember
that
your
questions
not
only
go
to
or
can
go
to,
department
of
tax,
but
also
to
alfredo
mr
hillerby
and
mr
waddums.
So
if
there
is
any
conversation
I
want
you
to
include
all
of
them.
A
E
Butter
all
right,
thank
you,
cheerio,
I'm
not
sure
who
should
answer
this
question
first,
so,
whether
it's
people
from
the
tax
department
or
alfredo
mike
or
jesse,
whichever
one
you
feel
it
should
go
to
my
first
one
has
to
do
with
the
compliance
investigators.
E
How
many
there
are
exactly-
and
I
just
wanted
to
make
sure
that
the
compliance
investigators
are
also
investigating
that
alcohol
and
cigarettes,
and
so
what
is
that
ratio?
How
is
that
enough?
Do
we
need
to
try
to
get
some
more
individuals
to
do
those
investigations?
E
F
F
Camera,
as
miss
just
said,
we
have
the
third
highest
ratio
of
investigators
to
retail
liquor
outlets
in
the
country.
They
are,
as
you
noted,
also
investigating
tobacco
and
liquor
at
the
same
time.
So
it
is
a
big
strain
on
the
investigators
that
we
have.
Your
second
part
of
your
question
had
to
do
with
whether
that
was
enough.
I
mean.
G
So,
as
our
figures
reflect,
we
were
I
referenced
just
the
liquor
that
did
not
include
the
liquor
retailers
and
it
also
did
not
include
the
tobacco
licensees
otp
licensees
enforcement
of
the
msa
settlement
agreement.
G
So
if
you
do
the
math,
it's
very
apparent
that
we,
it
would
behoove
the
state
if
we
could
possibly
obtain
some
more
investigators.
E
J
J
So
so,
and
again
I
won't
speak
for
for
tax.
I
think,
if
you
look
at
like
a
state
like
idaho,
they
are,
you
know.
In
fact,
most
of
the
western
states
are
vastly
different
from
how
we
sell
liquor
and
how
we
license
it.
J
For
instance,
idaho,
utah
washington
and
there
are
probably
others
that
are
abc
states
and
and
abc
states
mean
that
all
the
all
the
spirits
and-
and
I
think
it's
everything,
but
for
beer
and
and
in
some
cases
wine
are
sold
from
state
stores,
so
they're
able
to
sell
fund
through
those
sales.
To
give
you
an
idea,
the
and
those
of
you
that
have
sat
on
waze
know
this
to
be
true.
J
They
spend
a
little
bit
more
than
we
do.
I
think
it's
idaho
is
is
looking
at
about
27
million
for
next
year
alone
on
on
liquor
enforcement,
which
is
a
big
number
and-
and
I
wanted
to
clarify
a
couple
of
things
with
respect
to
the
delivery
of
liquor,
307
and
the
best
way.
To
probably
put
this
is
terms
change
over
the
years.
J
It's
our
lawyers
and
our
our
our
folks
position
that
it's
always
been
illegal
to
to
to
purchase
liquor
out
of
state
and
have
it
delivered
because
there's
no
way
to
collect
the
excise
tax,
as
you
heard
from
the
streamline
sales
tax
individual,
it's
hard
enough
to
collect
sales
tax,
it's
almost
impossible
to
require
anyone
to
sell
or
to
to
collect
excise
tax
except
suppliers
and
suppliers.
J
If
you
don't
do
this
right,
and
so
that's
in
the
statute
that
requires
them
to
collect
that
excise
tax,
that's
why
it's
always
been
since,
since
it
was
placed
in
the
statute
legal
for
wine
and
wine
and
wine
clubs
as
long
as
it's
either
the
winery
or
a
agent
of
the
winery.
That
can
do
that
section,
six
of
307.
Basically,
simply
it
simply
said
you
can't
get
a
certificate
of
compliance
in
the
state
of
nevada
if
you
are
just
a
retailer
in
the
state
of
california.
J
In
other
words,
you
can't
just
pretend
to
be
a
supplier.
Those
individuals
have
been
around
for
some
time
now.
Unfortunately,
in
fact,
the
court
case
called
chateau
vegas,
where
the
the
judge,
opined
with
southern
glazer,
went
in
spirits
that,
in
fact,
chateau
vegas
was
an
illegal
entity.
They
were,
they
were
acting
as
a
importer
wholesaler.
J
They
were
selling
wine
in
in
in
the
state
of
nevada.
There
was
no
custody,
so
they
had
no
agreement
with
the
wineries
whatsoever.
No
one
knew
where
they
actually
received
this
this
product,
and
there
was
no
excise
taxes
paid
on
it.
So
I
think
the
attempt
here
was
to
again
make
sure
that
in
a
state
like
ours,
where
the
the
enforcement
capabilities
are
limited,
that
you
can
in
fact
collect
those
taxes
and
do
so
efficiently
again
we're
very
different.
J
We
we
have
most
of
our
collection
of
of
excise
taxes
done
on
on
on-premise
sales.
That's
why
you
don't
see
those
those
numbers
go
up
like
they
did
around
the
country.
During
the
pandemic,
our
numbers
went
down
and
the
reason
they
went
down
in
a
lot
of
cases.
Some
of
our
wholesalers
had
dropped
drastically
because
of
our
on-premise
sales,
I.e,
casinos,
restaurants,
etc.
E
E
E
Is
there
a
way
to
possibly
target
utilizing
one
area
of
our
tax
to
be
able
to
actually
help
fund
more
investigators,
because
I
I
heard
clearly
that
it
is
the
people
that
are
the
good
suppliers
that
are
paying
the
taxes
that
are
actually
trying
to
help
our
state
pay
our
bills
that
are
complying
with
this
information,
but
how
many
bad
actors
do
we
have
out
there?
E
F
So
melissa,
flatley,
gpp
executive
director
for
the
record,
I
can
respond
to
the
first
part
of
your
question:
assemblywoman
anderson
about
the
rates,
so
it's
determined
by
the
alcohol
content
by
volume.
So,
regardless
of
how
big
the
package
is,
it's
still
the
abv.
F
So
that's
how
the
rate
is
standardized
and
we
had
it
on
the
slide.
It's
also
in
the
annual
report
with
what
those
rates
are
so,
for
example,
22
over
22
alcohol
content
by
volume,
so
over
44
proof
is
3.60
per
gallon.
F
F
I
hope
that
helps
clarify
that
part
as
to
the
second
part
of
the
question.
That
may
be
something
we
need
to
follow
up
on
or
if
it
really
is
truly
just
for
discussion.
I
don't
know
if
director
hughes
has
anything
to
add
on
that.
H
A
A
So
I
had
a
question
on
the
estate
distillery
popped
up
in
the
slides,
and
so
they
have
a
very
unique.
I
guess
it's
a
licensing
type.
So
the
way
I
understand
it
is
they
are
set
up.
They're
intended
to
you
know,
promote,
I
guess
investment,
but
then
they
also
use
agricultural
products
and
they
seem
to
kind
of
cross
over,
and
I
wanted
to
get
an
understanding
on,
like
I
guess,
more,
more
information
on
how
they
work
within
this
liquor
system.
G
This
is
jo
lynn,
smith,
so
the
operation
of
a
state
distillery
we
have
craft
distilleries.
The
estate
distilleries
for
lack
of
a
better
term
operate
in
a
couple
different
areas
of
the
three-tier
system.
They
are
able
to
manufacture
the
the
liquor
only
in
certain
quantities.
G
They
can
also
serve
and
sell
at
their
location.
The
liquor
that
they
have
manufactured
anything
else
would
still
go
through
the
three-tier
system
as
far
as
they
can
only
sell
to
a
wholesaler
who,
if
they
want
to
sell
it
into
a
retail
location,
they
can
sell,
obviously
by
the
bottle
in
their
own
location.
D
I'm
happy
to
sort
of
maybe
add
a
little
color
to
what
ms
smith
did,
because
she
gave
the
perfect
overview
and
having
actually
licensed
estate
distilleries.
Basically
how
you
know,
essentially
a
state
distillery
sits
functions
a
little
bit
differently
than
a
craft
distillery.
The
craft
distillery
takes
any
sort
of
products
and
makes
whiskey
whatever
it
is
an
estate
distiller
because
they
use
in-state
products,
so
they
grow
their
own
wheat,
I
guess
or
whatever
it
is.
They
barley
what
their
own
in-state
products
at
the
you
know.
Their
materials
are
all
from
in-state.
D
So
because
of
that,
then
they
bump
to
a
little
higher
level
of
privilege,
essentially
to
say:
okay,
get
a
little
higher
level
of
cap
room.
You
get
a
little
higher
level
of
ability
to
use
in-state
products.
So
it's
it's
a
little
bit
of
a
a
give
and
take
right
because
they
are
using
only
in-state
resources.
Predominantly
then
they
get
a
little
extra
room
to
be
a
little
bit
larger
functionally,
and
just
as
a
quick
note
of
the
side,
it
says
there
were
six
licenses.
D
A
So
can
you
guys,
when
you
guys,
when
you
guys
answer,
can
you
make
sure
that
you
identify
yourselves
because
the
secretary
is
getting
all.
A
A
Thank
you
so,
and
then
I
had
one
more
question
on
the.
I
think
it
was
in
the
conversation
on
307
about
the
well.
There
were
two.
There
were
two
conversations:
the
out-of-state
sales,
which
I
believe,
mr
alfredo
you
brought
up
and
then
what
was
on
the
slide-
and
I
guess
I'm
trying
to
get
more
of
an
understanding
on
the
history
for
the
out,
not
allowing
the
out
of
state
sales,
because
I
guess
the
thing
that
popped
them
up
to
mine.
There
was
if
you're
familiar,
there
was
like
a
tennessee.
A
There
was,
I
know,
nevada's
different.
There
was
a
tennessee
case
where
they
were
protecting
the
local,
pretty
much
the
local
retailers,
and
I
guess
in
my
mind,
initially
what
popped
up
was.
Why
isn't
that
a
p?
I
problem
right
like
how
are
we
able
to
do
that?
Maintain
that
what's
the
history
behind
the
protectionism.
J
So
I
I
I
can,
I
can
jump
in
and
answer
that
alfredo
alonso
madam
chair
and-
and
I
I
think
from
from
a
historical
standpoint
again,
we
didn't
have
internet.
You
know
many
years
ago.
Obviously
the
only
way
you
could
get
your
liquor
was
either
bringing
it
in
to
the
state
of
nevada
or
purchasing
it
and
having
it
shipped.
J
You
know,
obviously,
as
times
have
changed,
I
can
give
you
a
great
example
of
that
there
was
a
statute
that
was,
I
believe,
in
in
the
90s
that
was
specific
to
craft
distilleries
and
allowing
them
to
bring
in
allowing
someone
to
go
across
the
border
and
bring
in
liquor
that
they
just
purchased
on
their
visit
for
personal
use.
That
was
a
gallon
years
later.
We
we
then
looked
at
that
and
the
way
it
was
the
way
the
lawyers
would
look
at.
That
is
well
that
allows
anybody
to
ship
into
the
state.
J
J
That
is
the
the
either
the
individual
or
the
company
that
is
making
the
product,
and
then
they
are
selling
it
in
the
state
of
nevada
and
the
wholesaler
is
paying
the
tax
or
it
is
someone
who
is
importing
the
product
and
it
could
come
from
another
country,
their
various
ways,
to
import
both
internationally
and
nationally
and
again
that
importer
wholesaler
pays
the
tax
now
with
internet
sales.
J
J
It
never
intended
to
say
hey
it's
a
free
for
all
the
state
of
nevada
go
ahead
and
ship
in,
but
what
it
did
create
is
individuals
that
basically
started
selling
gray
market
and
any
supplier.
That
knows
this
issue
would
tell
you
right
away
that
that
that
that
affects
their
chain
of
custody
that
affects
their
that
their
product
and
its
integrity.
J
That
affects
whether
the
customer
is
getting
an
the
real
product
or
not,
because
it's
not
every
single
one
of
these
wholesalers
and
importers
have
an
either
an
agreement
or
or
in
europe.
It's
a
little
different
they're
they're,
almost
third
parties
that
sell
the
liquor,
but
they're
still
agreements
and
contracts
that
they
have
with
the
importer
wholesalers.
J
So
there's
always
a
a
chain
of
custody
department
of
tax
knows
exactly
what's
coming
in
how
it's
taxed.
They
ensure
that
the
tax
was
collected
before
it's
sold
to
the
public.
Unfortunately,
because
of
that
vendor
language,
you
started
seeing
all
these
individuals
pop
up
that
were
having
they
were
fake
wine
clubs.
They
never
had
the
authority
to
sell
that
wine
in
the
first
place.
They
were
in
many
cases.
In
one
case,
we
we
found
out
recently,
which
was
that
impetus
of
making
the
change
was
a
california
retailer
and
he
was
not.
J
J
Now
I
would
tell
you
that
some
of
the
retailers,
the
online
retailers
out
there
could
very
well
come
into
the
state
of
nevada
and
get
a
liquor
license
a
retail
liquor
license
and
they
could
continue
selling
the
problem
is
they
don't
want
to,
and
that
is
the
key
here
to
all
of
this
is
any
of
these
individuals.
Any
of
these
companies.
Total
wine
is
a
great
example.
Total
wine
is
is
based
in
in
another
state.
However,
they
are
also
licensed
in
nevada.
J
So
if
you
order
your
things
from
them,
you
can
have
the
wine
shipped.
You
can
pick
up
the
the
spirits
and
other
products
on
on
premises
and,
in
fact,
if
it
comes
from
another
state,
it
gets
shipped
right
to
your
local
store
and
you
can
pick
that
up.
So
there
are
ways
to
do
it
to
ensure
the
taxes
are
paid
and-
and
that
was
the
purpose
of
it.
I
hope
that
makes
sense.
A
It
does
it
does
mr
hillerby.
D
Thank
you,
madam
chair,
michael
hillerby,
with
kim
for
kroll.
The
only
thing
I
would
add
to
that.
I
think
part
of
your
question
was:
how
is
the
state
able
to
do
some
of
these
things
that
you
protect
the
and
I
can't
offer
legal
previously,
but
the
21st
amendment
for
the
state
and
that
saw
the
beginning
of
the
three-tiered
system,
so
it
gave
the
state
of
great
states
a
great
deal
of
leeway
and
how
they
regulate
with
public
health
and
other
concerns.
D
A
I
appreciate
that
and
then
members-
I
don't
know
if
you
had
any
questions,
but
I
I
have
one
more
to
department
of
tax.
So
one
of
the
type
of
licenses
is
that
instructional
wine
making
and
when
you
were
giving
your
example
about
the
kits
the
kits
that
come
into
the
state
like
you,
can
get
on
amazon
and
buy
a
kit,
that's
a
mixer,
so
it
has
the
alcohol
and
it
could
even
have
the
you
know
something
for
mojito
right.
A
How
is
that
treated
tax
wise?
Is
that
considered
an
instructional
kind
of
flicker,
even
though
it
has
a
kit?
That's
surrounding
it.
Does
it
fall
under?
Is
it
something
that
has
to
be
licensed
under?
I
believe
it's
five,
nine
seven,
two
four
five,
because
I
know
there's
crossover
and
that's
the
instructional.
It's
instructional
wine
making,
but
I'm
wondering
if
it
falls
in
that
category
or
is
it
just
a
free-for-all.
F
Melissa
flatley
chief
deputy
executive
director
for
the
department
of
tax,
so
with
the
facts
that
you've
provided
so
five
nine
597
245
is
limited
to
wine.
Making.
It
looks
like
it's
intended
to
address
learning
how
to
make
wine
at
the
premise
the
premises
of
a
company
and
being
able
to
make
your
own
liquor
really
and
then.
A
With
you
exactly
so,
that's
why
I'm
wondering
about
the
kit,
because
the
kit
can
it's?
Is
it
regulated?
Are
we
regulating
that
or
or
is
it
just
a
product,
that's
being
sold?
And
we
don't
we're
not
aware
of
it?
It's
just
kind
of
out
there
doing
what
it
does,
because
it's
happening
you
get
it
on
amazon
yeah.
I
know
this
because
I
got
a
legislator.
I
won't
name
that
person
a
gift,
but
they
could
make
their
own
their
own
their
own
spirits.
A
I
guess
that
you
say,
or
an
intercession
get
out
of
here
again.
F
So
you
haven't
given
us
the
leave,
don't
worry
so
I
think
the
distinction
is
wine
versus
spirits
so,
like
the
kit
you're
buying
you're,
not
making
wine
you're
making
a
cocktail,
so
I
don't
think
the
statute
on
instructional
winemaking
would
be
just
instructive
on
this,
but
or
but
whether
these
are
falling
outside
of
the
department's
regulation.
Quite
possibly,
I
don't
know
all
of
the
conditions
of
how
they're
being
sold,
but
that
kind
of
goes
into
the
same.
I
don't
know
where
the
origin
is,
so
is
it
being
shipped
into
the
state?
F
G
Yes,
so
again,
the
retail
liquor,
licensing,
those
are
overseen
by
the
city
and
county,
the
local
licensing.
Now,
if
we
were
to
get
a
lead
to
find
out
that
there
was
someone
who
was
making
deliveries
that
did
not
fit
into
this
scenario,
they
weren't
making
it
from
a
retailer.
It
was
outside
their
jurisdiction.
G
It
would
be
one
of
those
things
that
we
would
follow
up
with
the
local
licensing
authorities
and
let
them
know
what
we'd
found.
Also
more
than
likely,
we
would
pay
a
visit.
Our
investigators
would
pay
a
visit
if
there's
a
location
provided
and
any
liquor
that
they
had
that
was
being
sold
outside
the
three-tier
system
or
in
violation
of
the
three-tier
system.
The
that
liquor
would
be
seized.
F
The
this
is
melissa,
flatley
chief
deputy.
We
are
also
in
the
process
of
putting
together
regulations
on
liquor,
delivery.
The
it's
r068-21
and
I
believe,
we've
just
recently
in
the
last
two
weeks,
sent
out
the
small
business
impact
questionnaire
and
we'll
be
scheduling
a
workshop
on
that
regulation.
A
Thank
you
for
that
and
then
my
final
question
well.
Well,
I
had
a
question
on
craft
distillery,
but
I
I
had
a
question
when,
in
your
examples
you
were
talking
about
the
the
I
call
it
the
liquor
pop
but
there's
actually
like.
I
guess
it's
liquor
sorbet.
A
You
know
you
can
buy
like
a
little
container
of
ice
cream
and
I'm
assuming
it's
sorbet
or
some
version
of
sherbet
or
something,
but
it
it
has
liquor
in
it
and
I'm
assuming
that
it's
it's
treated
the
same
way
as
the
liquor
pop.
But
this
is
a
much
larger
I
guess
container,
because
it's
actually
in
an
ice
cream
and
to
me
it
crosses
over
into
a
food
item,
but
it's
also
liquor.
A
So
I
was
wondering
how
I
was
treated
first
of
all,
I
didn't
even
know
it
existed
until
a
couple
weeks
ago
I
have
a
very
special
group
of
human
beings
that
I
surround
myself
with
and
they
seem
to
find
all
these
very
unique
items
and
I'm
like
clearly
I
don't
go
into
the
frozen
section.
So
I'm
wondering
how
that's
being
treated
in
in
by
the
department
of
tax.
G
So
for
the
record
again,
jolynne
smith,
this
is
no
different
than
during
christmas.
You
see
the
the
eggnog
that
has
alcohol
in
it.
There's
other
food
products
that
have
it
and
there's
ice
creams.
There's
sorbet,
there's
a
I
can't.
I
don't
want
to
call
it
by
name,
but
it's
a
margarita,
but
it's
like
in
a
little
slushie.
G
A
D
D
They
described
between
chapter
369
and
597.,
the
last
below
the
point.
Investment
by
the
ag
and
local
law
enforcement
597
contains
some
really
robust
private
right
of
action
provisions
so
that
those
agreed
by
violations
by
anyone
in
that
three-tiered
system
or
outside
can
seek
monetary
damages.
Those
include
punitive
damages
and
in
some
cases
you
can
go
personally
after
officers
and
employees.
Just
that
was
important
for
the
committee
to
know
that
and
that's
an
important
part
of
the
way
the
three-tiered
system
works
and
that
there
is
a
fair
amount
of
private
right
of
action.
Again.
D
I
think
mr
alonzo
alluded
to
for
the
lawsuits,
one
in
particular
that
the
wholesalers
have
brought
against
someone
that
was
violating
that.
So
a
great
deal,
or
at
least
shouldn't,
say
a
great
deal,
a
certain
amount,
perhaps
significant
of
that
enforcement
ends
up
being
civilly
brought
by
people
who
are
aggrieved
by
that,
rather
than
necessarily
from
law
enforcement.
J
Yep,
madam
chair,
alfredo
alonso
again
yeah,
mr
hillary,
is
absolutely
right.
I
think
the
attempt
years
ago
was
because
nevada
again
had
a
unique
system
and
it
was
based
on
on
state
and
local
licensing,
and
you
know
my
I.
I
can't
say
enough
how
hard
the
tax
department
works
on
this
issue
with
very
few
people.
J
It's
amazing
that
they-
and
if
you
start
thinking
about
it,
they
they're
the
folks
that
have
to
regulate
illegal
liquor
at
our
convention
authority,
our
convention
center.
So
when
people-
and
they
do
this,
they
will
bring
in
liquor
sometimes
legally.
Sometimes
not.
It's
not
uncommon.
To
have
someone
from
that
level
to
you
know
providing
liquor
that
not
isn't
always
real
to
our
casinos
and
then
there's
you
know
at
the
lowest
level.
J
Is
the
guy
that
pulls
up
with
the
with
the
car
and
and
supplies
a
convenience
store
with
with
liquor
out
of
his
trunk.
So
it
is
it's
a
thing
it's
difficult
to
to
regulate,
but
they
do
a
phenomenal
job
considering
what
they
have
and-
and
I
I
think
where
it
makes
a
lot
of
sense
and
you
start
understanding
how
our
system
works.
It's
because,
for
instance,
mr
hillerby's
client,
every
single
time
they
drop
off
a
load
of
beer
at
their
wholesalers
in
nevada.
J
The
wholesalers
pay
the
tax
immediately
before
they
sell
a
a
drop.
So
that
is
a
very
efficient
system.
That
tax
can
look
at
and
say.
Okay,
I
got
x
amount
of
dollars
in
excise
tax.
I
got
an
x
amount
of
product.
I
can.
I
can
audit
this
and
make
sure
that
it's
accurate
and
so
it
that's
that's
the
internal
workings
of
it
and
it
costs
the
taxpayer
very
little
money
right
now.
J
I
would
argue
we
probably
need
a
little
bit
more
help
on
the
enforcement
side,
but
at
least
this
way
you
kind
of
understand
where
everyone
fits
in
in
the
state
and
and
michael's
right,
sometimes
there's
no
choice
but
to
to
sue
civilly,
as
it
was
the
case
with
the
chateau
vegas
folks.
They
simply
kept
changing
companies,
and
so
every
time
tax
figured
out
who
they
were
next,
they
were
someone
else,
and
sometimes
you
have
no
choice.
A
Okay,
thank
you
for
that.
So
I
appreciate
this
conversation
I'll
do
I
don't
know
if
members
had
any
additional
questions,
but
I'm
gonna
move
to
the
next
topic.
I'm
going
to
let
fiscal
kind
of
briefly
discuss
the
next
agenda
item
because
we're
really
going
to
move
that
to
the
next
meeting.
But
mr
guindon.
K
Thank
you,
madam
chair
russell,
guindon,
chief
principal
fiscal,
deputy
analyst,
with
the
physical
analysis,
division,
legislative
council
and
sort
of
if
I,
if
you're
okay,
madam
chair
I'll,
just
sort
of
go
through
the
stuff
that
was
prepared
by
your
fiscal
division
staff,
that's
in
the
packet
and
perhaps
not
go
to
it
in
any
detail,
and
so
thus
I
won't
really
share
my
screen
unless,
after
I
go
through
it
all,
if
you
would
like
me
to
back
up
and
have
either
myself
or
my
colleagues
joe
reel
or
michael
now,
come
on
I'll
go
through
it.
K
So,
okay,
so
in
terms
of
ms
hughes,
is
the
executive
director
and
the
other
taxation
staff
that
have
presented
to
you
today
they
were
nice
enough
to
meet
with
us
in
terms
of
prepping
to
prepare
material
for
this
meeting
based
on
the
direction
we
got
from
chernio,
and
so
as
part
of
that
effort
was
to
since
we
have
varying
degrees
of
exposure
and
experience.
K
As
the
members
of
this
committee
coming
out
of
the
2021
session
and
here
being
on
at
this
interim-
and
hopefully
you
know
what
the
goal
is
that,
then
these
members
would
proceed
into
being.
Members
of
revenue
in
the
23
session
is
to
attempt
to
compile
some
additional
information
to
complement
the
information
that
was
presented
and
prepared
by
the
department
taxation.
K
So,
under
the
liquor
tax
agenda
item
you'll
see
in
the
packet
beginning
on
page
114
of
the
page
numbers
in
the
lower
corners.
K
Our
table
is
showing
the
liquor
tax
rates
by
the
the
different
rates
and
also
the
statutory
authority
when
they
were
originally
put
in
place,
and
this
would
be
under
the
alcohol
by
volume
per
gallon
tax
rate
structure,
as
well
as
just
some
additional
information
there
for
the
in
terms
of
the
notes
of
the
history
of
it
and
then
showing
you,
the
history
of
the
tax
rate
changes
since
this
alcohol
by
volume
per
gallon
structure
was
put
in
place
and
then
additionally,
beginning
on
page
121
again
in
the
lower
right
hand,
lower
right
hand,
corner
you'll,
see
we
compiled
information
going
all
the
way
back
to
fy1990.
K
In
terms
of
the
total
liquor
tax
collections,
the
total
general
fund
collections
and
the
total
gallons
and
letting
you
see
the
growth
rates,
as
well
as
the
the
the
effective
tax
rate
that
comes
out
of
those
tax
collections.
K
Because
again,
as
was
presented
to
you
right,
you
have
four
different
types
of
liquor:
category
with
four
very
different
tax
rates.
So
it
creates
interesting
dynamics
in
the
tax
collections
that
you'll
see
when
you
look
at
just
total
tax
collections
over
all
those
categories.
So
we
additionally
broke
out
the
gallons
by
the
different
tax
categories
going
back
to
fy
1990
as
well
as
then.
What
would
be
the
imputed
taxes?
Because
you
can
see
what
we
get
and
report
in
the
economic
forum
sheets
in
the
department.
K
Taxation
is
the
total
taxes
coming
from
all
four
types
of
the
four
different
liquor
taxes
and
so
and
then
there's
charts
sort
of
showing
you
some
of
that.
So
you
can
get
a
perspective
of
the
amount
of
gallons
in
relation
to
the
taxes
that
are
generated,
because
you
can
clearly
see
that
beer
has
the
the
highest
number
of
gallons,
but
since
they
have
the
lowest
tax
rate
per
gallon,
then
the
dynamics
of
the
gallons
in
relation
to
the
taxes
being
generated.
K
I
I
think,
is
important
information
to
keep
in
mind
with
regards
to
this
tax.
So
I
just
wanted
to
point
that
out
in
terms
of
again
working
with
chair
neil,
as
attempting
to
compile
some
additional
information
to
put
into
this
committee's
informational
record.
K
Also
on
the
sales
tax
agenda
item
you'll
see
as
in
nellis
there's
two
additional
exhibits.
That's
the
information
that
again
working
with
the
department
taxation.
K
We
extracted
the
pages
from
the
tax
expenditure
report
that
they're
required
to
prepare
pursuant
to
nrs360.137
for
just
the
abatements
subtractions
deductions
and
exemptions
for
the
sales
and
use
tax,
because
that's
a
bali,
I
think
somewhere
around
a
700
page
document.
So
we
don't
really
want
to
have
to
push
that
around
everybody.
K
K
And
then
the
members
of
the
revenue
committees
are
provided
copies
of
that.
And
so
this
is
the
sections
from
the
2021
session
report.
But
it's
been
updated
for
actions
for
the
21
session,
so
I
just
wanted
to
make
sure
that
the
members
knew
that
those
documents
out
there
and
what
we're
trying
to
do
as
staff
in
terms
of
working
on
the
chairs
direction
and
with
the
department
of
taxation
as
informational
content
that
is
available
to
the
members
of
the
committee.
K
So
then,
the
agenda
item
that
I
don't
plan
on
spending
a
lot
of
time
on
is
agenda.
Item
nine.
I
believe
or
excuse
me
eight
and
that's
just
the
tables
where,
if
you
recall
from
the
january
meeting,
we
went
through
and
showed
you
the
historical
total
general
fund
revenue
collections
from
fy
1990
through
fy
2021
and
then
with
the
forecast
for
fy,
22
and
23..
K
In
comparison
to
the
growth
of
statewide
population
and
and
using
the
consumer
price
index
as
an
inflation
measure,
and
so
then
we
put
that
into
an
inflation
adjusted
per
capita
metric
and
in
in
the
tabular
form.
But
then
you
have
the
charts
to
show
you
how
that
behaves
so
similarly
again,
working
with
chair
neil
is
that
thought
it
would
be
probably
informational
for
the
members
of
this
committee
as
well
as
anybody.
K
That's
watching
the
committee
as
a
non-member,
to
have
the
information
as
we
go
through
some
of
these
different
taxes
for
these
meetings.
So
what
you'll
find
for
the
information
in
the
packet
for
that
agenda
item
is
the
same
you'll
see
it
looks
like
this.
K
It's
the
same
tables
and
charts,
but
the
first
set
table
two
is
to
state
two
percent
sales
tax
and
that's
actually
an
interesting
one
to
look
at
because
right,
as
you
heard
mr
fernley
go
through
and
in
his
tax
eight
percent,
the
sales
tax
rate
has
been
two
percent
since
1955
when
it
was
put
in
place.
So
there
what's
changing
that
those
collections
is
not
tax
rate
changes
by
the
legislature.
K
You're
tr
that
transition
that,
as
we
talked
about
at
the
january
meeting,
was
discussed
here
as
to
the
tax
base,
can
be
changing
due
to
the
changing
products,
especially
moving
from
tangible
to
intangible
in
the
digital
form.
But
also,
as
was
discussed,
is
that
we've
seen
this
historical
trend
in
terms
of
also
sort
of
people's
consumption
of
their
income
being
allocated
more
to
services
versus
goods.
K
So
when
you
look
at
those
on
the
inflation-adjusted
per
capita
basis,
it's
sort
of
interesting
you
look
at
is
how
that's
kept
up
or
not,
and
on
an
inflation-adjusted
per
capita
basis,
and
then
we've
got
charts
in
there
showing
you
what
its
share
of
the
total
general
fund
revenues
are
over
time
and
you'll
see.
K
Some
of
the
moves
are
can
be
attributed
to
the
tax
changes
that
were
done
in
the
2003
session
and
the
2015
session,
as
well
as
actions
that
were
more
transitory
done
during
the
2009
session,
as
we
were
in
the
heart
of
the
great
recession
to
generate
additional
revenue
and
again
because
we
can't
change
the
two
percent
rate,
then,
as
the
there
are
decisions
made
to
make
changes
to
other
taxes
or
add
new
taxes
to
the
general
fund
revenue
structure,
then
the
two
percent
share
of
the
total
general
fund
is
going
to
go
down
and
that's
what
you
see
going
on
in
the
chart
and
that's
it
and
then.
K
Finally,
then
you
have
what
we
did
is
table
three
in
that
part
of
the
packet.
Is
the
state
general
fund
liquor
taxes?
So
it's
only
the
general
fund
portion,
so
exclusions
of
the
tax
on
liquor
over
22
percent
that
are
dedicated
to
local
governments,
to
the
sea
tax
or
the
liquor
abuse
program
account,
and
so
again
it
just
shows
you
the
30
plus
year
history
and
is
in
the
same
charts
and
that
inflation
adjusted
for
the
basis.
I
will
point
out
here
when
you
go:
look
at
the
inflation
adjusted
chart.
K
K
So
as
we
discussed
a
little
bit
in
january
and
I'll
just
make
the
comment
here
that
right
well,
it
has
been
discussed
here
today
that
this
taxes
is
on
gallons.
So
it's
it's!
It's
on
units,
not
a
measure
of
value
like
the
sales
tax
and
some
of
your
other
taxes.
So
that's
why
you
expect
to
have
the
behavior
that
you
see
here
that
it
has
sort
of
the
the
demographic
component
through
the
population.
Increa
increasing
over
time
and
obviously
some
share
that
violation
is
consuming
alcohol
and
then
clearly
right.
K
We
have
the
visitors
that
come
because
to
the
state,
primarily
due
to
the
the
gaming
hospitality
sector
that
we
have
in
the
state
of
nevada
and
so
that
helps
hold
up
the
demographic
side,
but
because
it's
based
on
units
not
value,
you
don't
have
an
inflationary
component
to
this
tax,
and
so
I
just
wanted
to
point
that
out
when
you
would
look
at
the
chart.
It's
actually
on
page
143
of
the
packet
that
you
see.
K
It
basically
go
down
consistently
over
time
and
then
you
start
go
up
due
to
the
2003
text
change
and
then
it
starts
going
down
again
and
inflation
just
per
capita
terms,
and
it
would
be
interesting
that
statistically,
we
don't
really
have
the
ability
to
do
that.
But
right
what's
helping
keep
that
probably
not
declining
even
more
than
you
see,
there
is
the
the
visitor
sector
that
the
state
has
and
right.
K
Some
portion
of
the
visitors
are
consumers
of
alcohol
products,
and
so
we
went,
I
think,
somewhere
from
around
it
was
around
19
million
visitors.
I
think
in
fy
1990
to
the
as
reported
by
the
las
vegas
convention
of
visitor
authorities
to
approximately
42
million
in
fy
19
before
the
pandemic.
So
right,
it's
it's
more
than
doubled
in
terms
of
that
30-year
period,
and
so
that's
obviously
going
to
help
hold
up
the
liquor
tax
on
this
inflation-adjusted
per
capita
basis.
K
Because
right
we
have
a
tax
structure
that
is
tied
to
the
visitors
through
the
liquor
tax,
as
well
as
one
could
make
the
same
argument
that
you
might
see
results
like
this
for
the
such
as
the
cigarette
tag
and
then
finally,
the
last
agenda
item.
There
was
the
tables
that
we
had
at
the
last
meeting
and
did
not
have
time
to
present
and
won't
go
through
here,
but
there
are
the
actual
versus
forecast
for
fy2022
tracking
tables.
K
So
these
tables
were
prepared
and
provided
to
the
committee
at
the
january
meeting
they're
being
provided
here
at
the
february
meeting,
and
the
difference
is
we've
added
one
more
month
of
actual
collections,
and
so
madame
chair
and
members
of
the
committees.
Possibly
it
will
be
more
informational
to
update
these
tables
and
present
them.
Perhaps
at
the
march
meeting,
because
we'll
be
getting
the
information
for
the
second
quarter
for
the
quarterly
taxes
here
at
the
end
of
this
month,
and
so
we
can
then
again
update
these
tables
with
the
actual
collections
through
february.
K
So
that
would
add
another
month
of
the
monthlies
and
add
the
second
quarter
of
the
quarterly.
So
at
the
march
meeting
we
would
be
able
to
come
in
and
basically
tell
you
where
the
actual
year-to-date
collections
are
in
relation
to
the
forecast,
with
a
little
more
than
half
of
the
fiscal
year
on
the
books.
K
In
terms
of
actual
questions,
and
so,
madam
chair,
that
was
the
comments
I
wanted
to
make
to
just
try
and
have
the
members
know
some
of
the
additional
material
that
we
had
prepared
in
terms
of
coordinating
with
staff
from
the
department
taxation
to
try
and
share
the
allocation
of
labor.
To
put
some
of
this
information
together,
based
on
your
direction
to
us
as
chair,
to
get
some
additional
information
into
this
committee's
record.
K
That
can
possibly
be
used.
This
interim,
as
well
as
continuing
in
it,
is
used
for
the
2023
session
and
so
I'll
make
the
offer,
as
your
legislative
staff,
to
any
of
the
members
that
if
you
do
have
a
chance
to
look
at
this
and
have
questions,
please
let
us
know
also
as
a
legislator,
if
you
would
like
us
to
be
able
to
go
through
this
with
you
in
a
separate
meeting
as
a
legislative
request.
Also,
please
let
us
know,
and
we
can
make
arrangements
to
do
that
and
with
that.
A
One
of
part
of
the
conversation
that
we're
having
in
the
interim
around
also
you
know
modernization
is,
is
examining
the
structure
of
the
tax,
specific
taxes
and
trying
to
see,
if
you
know
we're
capturing
the
growth
and
how
products
start
to
deviate
within
the
conversation
that
mr
ginnon
brought
up
about
the
liquor
tax
not
being
affected
per
se
by
inflation,
we
had
had
a
conversation
about,
should
there
be
a
certain
kind
of
blending
when
we
create
tax
policy
tax
policy?
A
That
is
not
that
kind
of
is
buffered
against
some
economic
activity,
such
as
inflation
and
whether
or
not
I
should
be
thinking
about
how
to
build
a
better,
better
tax
policy
that
supports
the
state
long
term.
It's
almost
like
I'm
kind
of
working.
My
I
won't
be
here
long
enough,
but
working
myself
out
of
a
revenue
position,
because
I'm
trying
to
figure
out,
as
I
said
in
the
first
meeting,
how
to
modernize,
how
to
stabilize
and
how
to
figure
out
what
the
tax
policy
should
be
going
forward.
A
That
gives
a
solid
foundation
for
our
state
so
that
we
are
not
every
session
going
back
and
looking
for
the
big
ticket
industry
to
tax,
and
so
I'm
looking
long
term
to
break
away
from
some
of
the
fragmentation
that
I
feel
exists
and
try
to
really
engage
in
revenue
policy.
That
kind
of
is
set
up
in
a
way
that
it
helps
our
state
as
we
grow
right.
A
If
we
know
trends,
if
we
know
what's
happening,
and
we
can
look
at
the
historical
landscape
of
well
here's
we,
we
can
see
20
years
of
behavior
economic
behavior.
It
really
does
help
to
guide
policy,
and
I
I
I
I
think
that
it
gets
lost
when
we,
you
know,
have
these
conversations.
A
But
I
wanted
to
bring
that
back
as
a
as
a
close,
so
that
when
you
look
at
when
you
look
at
the
charts,
the
reason
why
we're
providing
these
charts
to
you
is
because
economic
behavior
or
how
a
tax
is
responding
is
very
important
because
it
helps
to
figure
out.
What's
the
trend.
Where
is
it
going?
Do
we
need
to
do
anything?
Oh,
I
think
it
may
be
good,
so
we
can
leave
it,
as
is
because
this
was
a
sound
policy
that
doesn't
need
to
be
adjusted
or
tweaked.
A
But
in
order
to
have
that
conversation
we
have
to
look
at
the
data
and
then
be
able
to
critically
think
and
examine.
Is
that
true
or
not
right?
I
have
a
theory,
but
is
that
theory
correct
after
I
see
the
data
review
the
data
and
then
talk
through
the
data,
and
so
that's
what
we're
doing,
and
so
I
hope
that
helps,
and
so
what
we're
going
to
do
is
close.
This
meeting
we'll
we're
going
to
push
the
other
agenda
items
to
the
next
meeting.
A
But
what
we're
going
to
do
is
go
ahead
and
open
up
for
a
public
comment
and
I
will
turn
it
over
to
bps.
A
Okay,
thank
you
for
that.
So
members
before
I,
because
I
didn't
ask
if
anybody
had
any
questions,
I
don't
know
if
you
have
a
burning
question
that
you
have
right
now,
but
if
you
do,
we
could
take
that
really
quickly.
If
not
follow
up
with
fiscal
via
email.
A
Okay,
I'm
seeing
no
hands
all
right,
so
then
we
will
go
ahead
and
we
will
adjourn
the
interim
revenue
meeting.
I
thank
you
guys
for
your
time
and
patience
and
see
you
next
month.