Assembly Bill No. 510–Assemblymen Freeman, Gibbons,
Williams and Giunchigliani

March 12, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions regarding residential construction tax for parks and impact fees. (BDR 22-1361)

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. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to local government finance; providing in skeleton form for the revision of provisions governing local government finance; expanding the residential construction tax for parks to include libraries; revising provisions governing impact fees to include construction and renovation of school buildings; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 278.4981 is hereby amended to read as follows:

1-2 278.4981 1. The ordinance adopted pursuant to NRS 278.4979 must

1-3 set forth the standards to be applied in determining the amount of land that

1-4 is required to be dedicated. The ordinance must contain standards

1-5 determining the amount, quality and location of land that is required to be

1-6 dedicated which are based upon the number and type of dwelling units or

1-7 structures, apartment houses or mobile home lots, or any combination

1-8 thereof, included in each subdivision or development and give due

1-9 consideration to the relative desirability and market value of the land that

1-10 may be included within the area of any particular proposed subdivision or

1-11 development.

1-12 2. The ordinance must, without limiting the general powers conferred

1-13 in this chapter, include the following:

1-14 (a) Provisions for the creation, in accordance with the applicable master

1-15 plan, of park districts or service areas which would serve neighborhoods or

1-16 communities of interest within the city or county.

2-1 (b) A delegation of authority to designated departments or agencies of

2-2 the city or county to select the location of the land areas to be dedicated for

2-3 park and playground purposes. The land to be dedicated for park and

2-4 playground purposes must be within the park district or service area

2-5 created pursuant to paragraph (a) in which the subdivision, apartment

2-6 house or mobile home lots are located.

2-7 (c) A provision limiting the amount of land required to be dedicated to

2-8 an amount of land having a fair market value, determined by independent

2-9 appraisal, which does not exceed the amount of any residential

2-10 construction tax which would otherwise have been collected under NRS

2-11 278.4983 [.] to provide neighborhood parks and facilities for parks.

2-12 (d) A provision for the transfer of title to the dedicated land upon the

2-13 issuance of building permits and the construction of the first unit of the

2-14 subdivision or development from which the land was dedicated.

2-15 The ordinance may also contain a provision allowing an increase in the

2-16 number of dwelling units or structures, apartment houses or mobile home

2-17 lots, or any combination of them, in the subdivision equal to the number

2-18 which would otherwise have been allowed on the land dedicated for parks

2-19 and playgrounds.

2-20 Sec. 2. NRS 278.4983 is hereby amended to read as follows:

2-21 278.4983 1. The city council of any city or the board of county

2-22 commissioners of any county which has adopted a master plan and

2-23 recreation plan, as provided in this chapter, which includes, as a part of the

2-24 plan, future or present sites for neighborhood parks or libraries may, by

2-25 ordinance, impose a residential construction tax pursuant to this section.

2-26 2. If imposed, the residential construction tax must be imposed on the

2-27 privilege of constructing apartment houses and residential dwelling units

2-28 and developing mobile home lots in the respective cities and counties. The

2-29 rate of the tax must not exceed 1 percent of the valuation of each building

2-30 permit issued, or [$1,000] $2,000 per residential dwelling unit or mobile

2-31 home lot, whichever is less. For the purpose of the residential construction

2-32 tax, the city council of the city or the board of county commissioners of the

2-33 county shall adopt an ordinance basing the valuation of building permits

2-34 on the actual costs of residential construction in the area.

2-35 3. The purpose of the tax is to raise revenue to enable the cities and

2-36 counties to provide neighborhood parks and libraries and facilities for

2-37 parks which are required by the residents of those apartment houses,

2-38 mobile homes and residences.

2-39 4. An ordinance enacted pursuant to subsection 1 must establish the

2-40 procedures for collecting the tax, set its rate, and determine the purposes

2-41 for which the tax is to be used, subject to the restrictions and standards

2-42 provided in this chapter. The ordinance must, without limiting the general

2-43 powers conferred in this chapter, also include:

3-1 (a) Provisions for the creation, in accordance with the applicable master

3-2 plan, of park districts or library districts which would serve neighborhoods

3-3 within the city or county.

3-4 (b) A provision for collecting the tax at the time a building permit for

3-5 the construction of any apartment houses, residential dwelling units or

3-6 mobile home lots is issued.

3-7 5. All [of] the residential construction taxes collected pursuant to the

3-8 provisions of this section and any ordinance enacted by a city council or

3-9 board of county commissioners, and all interest accrued on the money,

3-10 must be placed with the city treasurer or county treasurer in a special fund.

3-11 Except as otherwise provided in subsection 6, the money in the fund may

3-12 only be used for the acquisition, improvement and expansion of

3-13 neighborhood parks or libraries or the installation of facilities in existing

3-14 or neighborhood parks in the city or county. Money in the fund must be

3-15 expended for the benefit of the neighborhood from which it was collected.

3-16 6. If a neighborhood park or library has not been developed or

3-17 facilities have not been installed in an existing park in the park district

3-18 created to serve the neighborhood in which the subdivision or development

3-19 is located within 3 years after the date on which 75 percent of the

3-20 residential dwelling units authorized within that subdivision or

3-21 development first became occupied, all money paid by the subdivider or

3-22 developer, together with interest at the rate at which the city or county has

3-23 invested the money in the fund, must be refunded to the owners of the lots

3-24 in the subdivision or development at the time of the reversion on a pro rata

3-25 basis.

3-26 7. The limitation of time established pursuant to subsection 6 is

3-27 suspended for any period, not to exceed 1 year, during which this state or

3-28 the Federal Government takes any action to protect the environment or an

3-29 endangered species which prohibits, stops or delays the development of a

3-30 park or library or installation of facilities.

3-31 8. For the purposes of this section:

3-32 (a) "Facilities" means turf, trees, irrigation, playground apparatus,

3-33 playing fields, play areas, picnic areas, horseshoe pits and other

3-34 recreational equipment or appurtenances designed to serve the natural

3-35 persons, families and small groups from the neighborhood from which the

3-36 tax was collected.

3-37 (b) "Neighborhood park" means a site not exceeding 25 acres, designed

3-38 to serve the recreational and outdoor needs of natural persons, families and

3-39 small groups.

3-40 Sec. 3. Chapter 278B of NRS is hereby amended by adding thereto a

3-41 new section to read as follows:

3-42 The board of trustees of a school district may request a local

3-43 government in which the school district is located to impose impact fees

4-1 pursuant to this chapter to construct and renovate school buildings. The

4-2 board of trustees shall specify the areas of the county or city to be served

4-3 by the buildings to be erected or renovated.

4-4 Sec. 4. NRS 278B.020 is hereby amended to read as follows:

4-5 278B.020 "Capital improvement" means a:

4-6 1. Drainage project;

4-7 2. Sanitary sewer project;

4-8 3. Storm sewer project;

4-9 4. Street project; [or]

4-10 5. Water project [.] ; or

4-11 6. Construction or renovation of school buildings.

4-12 Sec. 5. NRS 278B.170 is hereby amended to read as follows:

4-13 278B.170 A capital improvements plan must include, by service area:

4-14 1. A description of the existing capital improvements and the costs to

4-15 upgrade, improve, expand or replace those improvements to meet existing

4-16 needs or more stringent safety, environmental or regulatory standards.

4-17 2. An analysis of the total capacity, level of current usage and

4-18 commitments for usage of capacity of the existing capital improvements.

4-19 3. A description of any part of the capital improvements or facility

4-20 expansions and the costs necessitated by and attributable to the new

4-21 development in the service area based on the approved land use

4-22 assumptions.

4-23 4. A table which establishes the specific level or quantity of use,

4-24 consumption, generation or discharge of a service unit for each category of

4-25 capital improvements or facility expansions.

4-26 5. An equivalency or conversion table which establishes the ratio of a

4-27 service unit to each type of land use, including but not limited to,

4-28 residential, commercial and industrial uses.

4-29 6. The number of projected service units which are required by the

4-30 new development within the service area based on the approved land use

4-31 assumptions.

4-32 7. The projected demand for capital improvements or facility

4-33 expansions required by new service units projected over a period not to

4-34 exceed [10] 20 years.

4-35 Sec. 6. NRS 278B.280 is hereby amended to read as follows:

4-36 278B.280 1. Impact fees must not be used for:

4-37 [1.] (a) The construction, acquisition or expansion of public facilities

4-38 or assets other than capital improvements or facility expansions which are

4-39 included in the capital improvements plan.

4-40 [2.] (b) The repair, operation or maintenance of existing or new capital

4-41 improvements or facility expansions.

5-1 [3.] (c) The upgrading, expansion or replacement of existing capital

5-2 improvements or facilities to serve existing development to meet more

5-3 stringent safety, environmental or regulatory standards.

5-4 [4.] (d) The upgrading, expansion or replacement of existing capital

5-5 improvements or facilities to provide better service to existing

5-6 development.

5-7 [5.] (e) The administrative and operating costs of the local government.

5-8 [6.] (f) Except as otherwise provided in NRS 278B.220, the payments

5-9 of principal and interest or other finance charges on bonds or other

5-10 indebtedness.

5-11 2. This section does not prohibit the use of impact fees to renovate

5-12 school buildings to serve the needs of new development.

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