Senate Joint Resolution No. 1–Joint Rules Committee

 

June 14, 2001

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Referred to Committee of the Whole

 

 

SUMMARY—Proposes to amend Nevada Constitution to provide requirements for enactment of property and sales tax exemptions. (BDR C‑28)

 

FISCAL NOTE:    Effect on Local Government: No.

                     Effect on the State or on Industrial Insurance: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

SENATE JOINT RESOLUTION—Proposing to amend the Constitution of the State of Nevada to provide requirements for the enactment of property and sales tax exemptions.

 

1-1    Resolved by the Senate and Assembly of the State of Nevada,

1-2  Jointly, That a new section, designated section 6, be added to article 10

1-3  of the Constitution of the State of Nevada to read as follows:

1-4  Sec. 6.  1.  The Legislature shall not enact an exemption from

1-5  any ad valorem tax on property or excise tax on the sale, storage,

1-6  use or consumption of tangible personal property sold at retail

1-7  unless the Legislature:

1-8  (a) Determines that the exemption will achieve a bona fide social

1-9  or economic purpose;

1-10  (b) Restricts the eligibility for the exemption solely to the

1-11  intended beneficiaries of the exemption;

1-12  (c) Determines that the exemption will not have a material

1-13  adverse effect on the finances of the state or any local government

1-14  that would otherwise receive revenue from the tax from which the

1-15  exemption would be granted;

1-16  (d) Determines that the exemption will not impair adversely the

1-17  ability of the state or a unit of government to pay, when due, all

1-18  interest and principal on any outstanding bonds or any other

1-19  obligations for which revenue from the tax from which the

1-20  exemption would be granted was pledged; or

1-21  (e) Ensures that the requirements for claiming the exemption are

1-22  as similar as practicable for similar classes of taxpayers.

2-1  2.  The Legislature shall review any exemption from any tax on

2-2  property or on the sale, storage, use or consumption of tangible

2-3  personal property sold at retail at least once every 6 years to

2-4  determine whether the purpose of the exemption is still valid and

2-5  that the exemption is being used effectively.

2-6  H