A contractor's license expired 45 days ago in Nevada. What penalty must they pay in addition to renewal fees to reinstate?
Correct Answer
C) 100% of renewal fee
Nevada imposes a penalty equal to 100% of the renewal fee for licenses renewed more than 30 days after expiration.
Why This Is the Correct Answer
Nevada law imposes a penalty equal to 100% of the renewal fee for licenses that are renewed more than 30 days after expiration. Because this contractor's license expired 45 days ago (exceeding the 30-day grace window), they must pay the full renewal fee plus an additional penalty equal to 100% of that renewal fee — effectively doubling the cost of renewal.
Why the Other Options Are Wrong
Option A: 25% of renewal fee
A 25% penalty does not correspond to Nevada's statutory penalty structure for late license renewal beyond the 30-day window. Nevada uses a 100% penalty (not 25%) once the 30-day grace period has passed. A 25% penalty might be confused with penalty structures in other states.
Option B: No additional penalty
No additional penalty applies only within the first 30 days after expiration. Since this license expired 45 days ago — 15 days past the 30-day no-penalty window — a penalty is now mandatory. Choosing 'no penalty' ignores the 30-day threshold entirely.
Option D: 50% of renewal fee
A 50% penalty does not match Nevada's statutory requirement. Nevada's law prescribes a 100% penalty (equal to the full renewal fee) for renewals more than 30 days late — not 50%. This figure might be confused with penalty structures from other states or other Nevada licensing contexts.
Memory Technique
Nevada late renewal rule: '30 days free, then you pay double.' Think of it as a parking meter — free for 30 minutes, then a ticket equal to your original cost. The 45-day scenario in this question puts you well past the grace period, so the 100% penalty applies.
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