AB10_EN

Assembly Bill No. 10–Joint Rules Committee

CHAPTER..........

AN ACT relating to taxation; revising the formula for the distribution of certain revenues among local governments; providing for an adjustment to the base allocation of certain local governments; extending the date for expiration of the legislative committee to study distribution among local governments of revenue from state and local taxes; requiring the advisory committee to the committee to conduct a study; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 360.680 is hereby amended to read as follows:

360.680 1. On or before July 1 of each year, the executive director

shall allocate to each enterprise district an amount equal to the amount that

the enterprise district received from the account in the immediately

preceding fiscal year.

2. Except as otherwise provided in NRS 360.690 and 360.730, the

executive director, after subtracting the amount allocated to each

enterprise district pursuant to subsection 1, shall allocate to each local

government or special district which is eligible for an allocation from the

account pursuant to NRS 360.670 an amount from the account that is

equal to the amount allocated to the local government or special district

for the preceding fiscal year , minus any excess amount allocated

pursuant to subsection 4 of NRS 360.690, multiplied by one plus the

percentage change in the Consumer Price Index (All Items) for the year

ending on December 31 immediately preceding the year in which the

allocation is made.

Sec. 2. NRS 360.690 is hereby amended to read as follows:

360.690 1. Except as otherwise provided in NRS 360.730, the

executive director shall estimate monthly the amount each local

government, special district and enterprise district will receive from the

account pursuant to the provisions of this section.

2. The executive director shall establish a base monthly allocation for

each local government, special district and enterprise district by dividing

the amount determined pursuant to NRS 360.680 for each local

government, special district and enterprise district by 12 and the state

treasurer shall, except as otherwise provided in subsections 3, 4 and 5,

remit monthly that amount to each local government, special district and

enterprise district.

3. If, after making the allocation to each enterprise district for the

month, the executive director determines there is not sufficient money

available in the county’s subaccount in the account to allocate to each

local government and special district the base monthly allocation

determined pursuant to subsection 2, he shall prorate the money in the

county’s subaccount and allocate to each local government and special

district an amount equal to the percentage of the amount that the local

government or special district received from the total amount which was

distributed to all local governments and special districts within the county

for the fiscal year immediately preceding the year in which the allocation

is made. The state treasurer shall remit that amount to the local

government or special district.

4. Except as otherwise provided in subsection 5, if the executive

director determines that there is money remaining in the county’s

subaccount in the account after the base monthly allocation determined

pursuant to subsection 2 has been allocated to each local government,

special district and enterprise district, he shall immediately determine and

allocate each:

(a) Local government’s share of the remaining money by:

(1) Multiplying one-twelfth of the sum of:

(I) Twenty-five percent of the amount allocated pursuant to NRS

360.680 multiplied by [one plus] the sum of the [:

(I) Percentage] average percentage of change in the population of

the local government for the fiscal year immediately preceding the year in

which the allocation is made and the 4 fiscal years immediately preceding

the year in which the allocation is made, as certified by the governor

pursuant to NRS 360.285 , except as otherwise provided in subsection 6 [;

and

(II) Average] , and the average percentage of change in the

assessed valuation of the taxable property in the local government,

including assessed valuation attributable to a redevelopment agency but

excluding the portion attributable to the net proceeds of minerals, over the

year in which the allocation is made, as projected by the department

pursuant to NRS 361.390, and the 4 fiscal years immediately preceding the

year in which the allocation is made; and

(II) Seventy-five percent of the amount allocated pursuant to

NRS 360.680 multiplied by one plus the sum of the average percentage

of change in the population of the local government for the fiscal year

immediately preceding the year in which the allocation is made and the

4 fiscal years immediately preceding the year in which the allocation is

made, as certified by the governor pursuant to NRS 360.285, except as

otherwise provided in subsection 6, and the average percentage of

change in the assessed valuation of the taxable property in the local

government, including assessed valuation attributable to a

redevelopment agency but excluding the portion attributable to the net

proceeds of minerals, over the year in which the allocation is made, as

projected by the department pursuant to NRS 361.390, and the 4 fiscal

years immediately preceding the year in which the allocation is made;

and

(2) Using the figure calculated pursuant to subparagraph (1) to

calculate and allocate to each local government an amount equal to the

proportion that the figure calculated pursuant to subparagraph (1) bears to

the total amount of the figures calculated pursuant to subparagraph (1) of

this paragraph and subparagraph (1) of paragraph (b), respectively, for the

local governments and special districts located in the same county

multiplied by the total amount available in the subaccount; and

(b) Special district’s share of the remaining money by:

(1) Multiplying one-twelfth of the sum of:

(I) Twenty-five percent of the amount allocated pursuant to NRS

360.680 multiplied by [one plus] the average change in the assessed

valuation of the taxable property in the special district, including assessed

valuation attributable to a redevelopment agency but excluding the portion

attributable to the net proceeds of minerals, over the 5 fiscal years

immediately preceding the year in which the allocation is made; and

(II) Seventy-five percent of the amount allocated pursuant to

NRS 360.680 multiplied by one plus the average change in the assessed

valuation of the taxable property in the special district, including

assessed valuation attributable to a redevelopment agency but excluding

the portion attributable to the net proceeds of minerals, over the 5 fiscal

years immediately preceding the year in which the allocation is made;

and

(2) Using the figure calculated pursuant to subparagraph (1) to

calculate and allocate to each special district an amount equal to the

proportion that the figure calculated pursuant to subparagraph (1) bears to

the total amount of the figures calculated pursuant to subparagraph (1) of

this paragraph and subparagraph (1) of paragraph (a), respectively, for the

local governments and special districts located in the same county

multiplied by the total amount available in the subaccount.

The state treasurer shall remit the amount allocated to each local

government or special district pursuant to this subsection.

5. The executive director shall not allocate any amount to a local

government or special district pursuant to subsection 4, unless the amount

distributed and allocated to each of the local governments and special

districts in the county in each preceding month of the fiscal year in which

the allocation is to be made was at least equal to the base monthly

allocation determined pursuant to subsection 2. If the amounts distributed

to the local governments and special districts in the county for the

preceding months of the fiscal year in which the allocation is to be made

were less than the base monthly allocation determined pursuant to

subsection 2 and the executive director determines there is money

remaining in the county’s subaccount in the account after the distribution

for the month has been made, he shall:

(a) Determine the amount by which the base monthly allocations

determined pursuant to subsection 2 for each local government and special

district in the county for the preceding months of the fiscal year in which

the allocation is to be made exceeds the amounts actually received by the

local governments and special districts in the county for the same period;

and

(b) Compare the amount determined pursuant to paragraph (a) to the

amount of money remaining in the county’s subaccount in the account to

determine which amount is greater.

If the executive director determines that the amount determined pursuant to

paragraph (a) is greater, he shall allocate the money remaining in the

county’s subaccount in the account pursuant to the provisions of

subsection 3. If the executive director determines that the amount of

money remaining in the county’s subaccount in the account is greater, he

shall first allocate the money necessary for each local government and

special district to receive the base monthly allocation determined pursuant

to subsection 2 and the state treasurer shall remit that money so allocated.

The executive director shall allocate any additional money in the county’s

subaccount in the account pursuant to the provisions of subsection 4.

6. The percentage change calculated pursuant to paragraph (a) of

subsection 4 must:

(a) If the Bureau of the Census of the United States Department of

Commerce issues population totals that conflict with the totals certified by

the governor pursuant to NRS 360.285, be an estimate of the change in

population for the calendar year, based upon the population totals issued

by the Bureau of the Census.

(b) If a new method of determining population is established pursuant to

NRS 360.283, be adjusted in a manner that will result in the percentage

change being based on population determined pursuant to the new method

for both the fiscal year in which the allocation is made and the fiscal year

immediately preceding the year in which the allocation is made.

7. On or before February 15 of each year, the executive director shall

provide to each local government, special district and enterprise district a

preliminary estimate of the revenue it will receive from the account for

that fiscal year.

8. On or before March 15 of each year, the executive director shall:

(a) Make an estimate of the receipts from each tax included in the

account on an accrual basis for the next fiscal year in accordance with

generally accepted accounting principles, including an estimate for each

county of the receipts from each tax included in the account; and

(b) Provide to each local government, special district and enterprise

district an estimate of the amount that local government, special district or

enterprise district would receive based upon the estimate made pursuant to

paragraph (a) and calculated pursuant to the provisions of this section.

9. A local government, special district or enterprise district may use

the estimate provided by the executive director pursuant to subsection 8 in

the preparation of its budget.

Sec. 3. NRS 360.690 is hereby amended to read as follows: