Amendment No. 844

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend the bill as a whole by renumbering sec. 4 as sec. 6 and adding new sections designated sections 4 and 5, following sec. 3, to read as follows:

"Sec. 4. 1. The legislature hereby finds and declares that:

(a) Those businesses that hold property of an interstate or intercounty nature which is valued for assessment purposes pursuant to NRS 361.320 are a stable and important component of the tax base of local governments;

(b) Because of economic forces at work over the years, the method of valuation and appraisal employed to assess property of an interstate or intercounty nature has resulted in the taxation of intangible personal property, while the method of valuation and appraisal employed to assess property of an intracounty nature has not resulted in the taxation of intangible personal property;

(c) The legislature hereby finds and determines that it is more equitable to establish the valuation for assessment purposes of all personal property in the same manner; and

(d) The gradual elimination of intangible personal property from the valuation and assessment of property of an interstate or intercounty nature should allow the natural growth of those businesses that hold such property to offset the elimination of intangible personal property from the tax base of local governments.

2. Notwithstanding the amendatory provisions of this act:

(a) For the fiscal year commencing July 1, 2000, the department of taxation must assess 100 percent of the value of intangible personal property of an interstate or intercounty nature as though the intangible personal property were real or tangible personal property.

(b) For the fiscal year commencing July 1, 2001, the department of taxation must assess 66.6 percent of the value of intangible personal property of an interstate or intercounty nature as though the intangible personal property were real or tangible personal property.

(c) For the fiscal year commencing July 1, 2002, the department of taxation must assess 33.3 percent of the value of intangible personal property of an interstate or intercounty nature as though the intangible personal property were real or tangible personal property.

(d) For the purposes of distributing the proceeds of the taxes included in the local government tax distribution account:

(1) For the fiscal years commencing July 1, 2001, and July 1, 2002, if the assessed value of all property of an interstate or intercounty nature assessed pursuant to subsections 2 and 3 that is allocated to a county is less than 100 percent of the assessed value of all property of an interstate or intercounty nature that was allocated to that county for the fiscal tax year commencing July 1, 1999, the department of taxation shall adjust the allocation of the assessed value of all property of an interstate or intercounty nature for that county in a manner that will ensure that the allocation remains at least equal to the assessed value for the fiscal tax year commencing July 1, 1999.

(2) For the fiscal year commencing July 1, 2003, if the assessed value of all property of an interstate or intercounty nature assessed pursuant to NRS 361.320 that is allocated to a county is less than 100 percent of the assessed value of all property of an interstate or intercounty nature that was allocated to that county for the fiscal tax year commencing July 1, 1999, the department of taxation shall adjust the allocation of the assessed value of all property of an interstate or intercounty nature for that county in a manner that will ensure that the allocation remains at least equal to the assessed value for the fiscal year commencing July 1, 1999.

Sec. 5. 1. The committee shall monitor the implementation of this act and conduct an interim study of the current system of taxation of those businesses, whether centrally or locally assessed as of June 30, 1999, that are engaged, in whole or in part, in any of the following activities:

(a) Railroad, sleeping car, private car, street railway or traction;

(b) Scheduled or unscheduled air transport;

(c) Telegraph, telephone or telecommunications;

(d) Natural gas transmission and distribution;

(e) Electric light and power; or

(f) Railway express.

2. On or before February 15, 2001, the committee shall prepare a report of its findings and recommendations and submit the report to the director of the legislative counsel bureau for transmittal to the senate and assembly committees on taxation of the 71st session of the Nevada legislature for their review.

3. The chairman of the committee may appoint a subcommittee to assist in conducting the study. Any subcommittee appointed by the chair of the committee shall consist of members of the committee, members of the advisory committee to the committee and members of businesses described in subsection 1. Any subcommittee appointed pursuant to this subsection shall report its findings to the committee on or before October 1, 2000.

4. The report required pursuant to subsection 2 must include:

(a) An evaluation of whether the current system of taxation used to assess taxes upon those businesses described in subsection 1 is fair and equitable, including the method of assessment and application of the property tax, when compared with the system of taxation used to assess taxes upon other businesses in this state;

(b) An evaluation of the extent to which local governments in this state rely upon the revenues obtained from the current system of taxation used to assess taxes upon those businesses described in subsection 1, including, without limitation, an evaluation of the manner in which the tax bases of the local governments are affected by that system;

(c) An evaluation of the impact of the changes made by the provisions of this act upon revenues of local governments and upon the tax base relied upon by each local government for its revenue;

(d) An evaluation of the extent to which any local government or agency of the state provides services that compete with the businesses described in subsection 1;

(e) An evaluation of any alternative system of taxation that could be used to assess taxes upon the businesses described in subsection 1 that:

(1) Does not create substantially more or less revenue for local governments, in the aggregate, than would otherwise be available if the system of taxation were not changed;

(2) Provides for a source of revenue for local governments that is as stable and reliable as possible; and

(3) Is fair and equitable to the businesses described in subsection 1 as compared to the current system of taxation used to assess taxes upon all businesses in this state; and

(f) A recommendation from the committee regarding whether a change to the system of taxation used to assess taxes upon the businesses described in subsection 1 is advisable and, if so, the alternative system of taxation which would ensure the most fair and equitable result possible.

5. As used in this section, "committee" has the meaning ascribed to it in NRS 218.5388.".

Amend sec. 4, page 5, by deleting line 7 and inserting:

"Sec. 6. 1. This section and sections 1, 3 and 5 of this act become effective on July 1, 1999, for the purpose of authorizing the department of taxation to take all actions necessary to carry out the provisions of this act in a timely manner, and on July 1, 2000, for all other purposes.

2. Sections 2 and 4 of this act become effective on July 1, 1999.".

Amend the title of the bill, third line, after "taxation;" by inserting:

"directing the legislative committee to study the distribution among local governments of revenue from state and local taxes to conduct a study; requiring that a report of the recommendations and findings of the study be presented to the 71st session of the Nevada legislature;".

Amend the summary of the bill to read as follows: