Senate Joint Resolution No. 1–Joint Rules Committee

 

FILE NUMBER..........

 

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.

 

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

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

 of the Constitution of the State of Nevada to read as follows:

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

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

 use or consumption of tangible personal property sold at retail

 unless the Legislature:

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

 or economic purpose;

   (b) Restricts the eligibility for the exemption solely to the

 intended beneficiaries of the exemption;

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

 adverse effect on the finances of the state or any local government

 that would otherwise receive revenue from the tax from which the

 exemption would be granted;

   (d) Determines that the exemption will not impair adversely the

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

 interest and principal on any outstanding bonds or any other

 obligations for which revenue from the tax from which the

 exemption would be granted was pledged; or

   (e) Ensures that the requirements for claiming the exemption are

 as similar as practicable for similar classes of taxpayers.

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

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

 personal property sold at retail at least once every 6 years to

 determine whether the purpose of the exemption is still valid and

 that the exemption is being used effectively.

 

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