CHAPTER........

Whereas, It is vitally important to the economy of a county and to the

general welfare of the inhabitants of the county that the board of county

commissioners have the ability and discretion to impose a tax or tax

increase upon certain products, such as jet fuel, which are sold within the

borders of the county; and

Whereas, The imposition of a tax or tax increase upon jet fuel by a

board of county commissioners has ramifications beyond the borders of the

county because such an increase may cause an increase in airfare prices that

results in a decrease in the accessibility of affordable air service for

residents of the State of Nevada and tourists and other visitors from outside

the state; and

Whereas, The accessibility of affordable air service in the State of

Nevada is crucial to the vitality of tourism, one of the primary industries in

this state, and hence is crucial to the economy of the State of Nevada and

the general welfare of the inhabitants of this state; and

Whereas, A fine line separates a reasonable tax imposed upon jet fuel

to maintain or increase the general welfare of the inhabitants of a county

from an unduly burdensome tax imposed upon jet fuel that adversely affects

the tourism industry in Nevada and decreases the economy of this state and

the general welfare of its inhabitants; and

Whereas, A board of county commissioners is in the best position to

determine the county’s need for revenue and whether such revenue should

come from a tax or tax increase upon jet fuel, and when making such a

determination should consider whether imposing a tax or tax increase upon

jet fuel crosses the line from reasonable and appropriate tax to unduly

burdensome tax; and

Whereas, It is the intent of the legislature by adopting this act to

increase the amount of discretion a board of county commissioners has to

impose a tax or tax increase upon jet fuel but it is not the intent of the

legislature to authorize a county to impose unduly burdensome taxes which

have a detrimental effect upon the tourism industry in the State of Nevada;

and

Whereas, The legislature trusts that a board of county commissioners

will consider the effects of a tax or tax increase upon jet fuel on the price of

air travel and the tourism industry in this state and will consult with the

airline industry when considering the imposition or increase of such a tax

before it exercises the discretion granted in this act; now, therefore,

Section 1. NRS 365.203 is hereby amended to read as follows:

1. 365.203 1. A board of county commissioners may by ordinance, but

1. adoption of the ordinance imposing the tax.

Sec. 2. NRS 371.045 is hereby amended to read as follows:

1. 371.045 1. A board of county commissioners may by ordinance, but

1. engaged in interstate or intercounty operations.
2. 2. A county may combine this question with questions submitted

1. combination thereof.

1. 3. A special election may be held only if the board of county

1. commissioners determines, by a unanimous vote, that an emergency exists.

1. The determination made by the board is conclusive unless it is shown that

1. the board acted with fraud or a gross abuse of discretion. An action to

1. challenge the determination made by the board must be commenced within

1. 15 days after the board’s determination is final. As used in this subsection,

1. "emergency" means any unexpected occurrence or combination of

1. occurrences which requires immediate action by the board of county

1. commissioners to prevent or mitigate a substantial financial loss to the

1. county or to enable the board to provide an essential service to the residents

1. of the county.

1. 4. Collection of the tax imposed pursuant to this section must not

1. commence earlier than the first day of the second calendar month after

1. adoption of the ordinance imposing the tax.

1. 5. Except as otherwise provided in subsection 6 and NRS 371.047, the

1. county shall use the proceeds of the tax to pay the cost of:

1. (a) Projects related to the construction and maintenance of sidewalks,

1. streets, avenues, boulevards, highways and other public rights of way used

1. primarily for vehicular traffic, including, without limitation, overpass

1. projects, street projects or underpass projects, as defined in NRS

1. 244A.037, 244A.053 and 244A.055, within the boundaries of the county or

1. within 1 mile outside those boundaries if the board of county

1. commissioners finds that such projects outside the boundaries of the county

1. will facilitate transportation within the county;

1. (b) Payment of principal and interest on notes, bonds or other

1. obligations incurred to fund projects described in paragraph (a); or

1. (c) Any combination of those uses.

1. 6. The county may expend the proceeds of the supplemental privilege

1. tax authorized by this section and NRS 371.047, or any borrowing in

1. anticipation of that tax, pursuant to an interlocal agreement between the

1. county and the regional transportation commission of the county with

1. respect to the projects to be financed with the proceeds of the tax.

1. 7. As used in this section, "based" has the meaning ascribed to it in

1. NRS 482.011.

Sec. 3. NRS 377A.020 is hereby amended to read as follows:

1. 377A.020 1. The board of county commissioners of any county may

1. effective before a question concerning the imposition of the tax is approved
2. by a majority of the registered voters of the county voting upon the

1. question which the board may submit to the voters at any general election.

1. A county may combine the questions for a public transit system and for the

1. construction, maintenance and repair of public roads with questions

1. any combination thereof. The board shall also submit to the voters at a

1. general election any proposal to increase the rate of the tax or change the

1. previously approved uses for the proceeds of the tax.

1. 3. Any ordinance enacted pursuant to this section must specify the date

1. on which the tax must first be imposed or on which an increase in the rate

1. of the tax becomes effective, which must not be earlier than the first day of

1. the second calendar month following the approval of the question by the

1. voters.

Sec. 4. NRS 244.3351 is hereby amended to read as follows:

1. 244.3351 1. Except as otherwise provided in subsection 2 of NRS

1. service to the residents of the county.
2. 3. The ordinance imposing the tax must include all the matters required

1. by NRS 244.3352 for the mandatory tax, must be administered in the same

1. manner, and imposes the same liabilities, except:

1. (a) Collection of the tax imposed pursuant to this section must not

1. commence earlier than the first day of the second calendar month after

1. adoption of the ordinance imposing the tax; and

1. collections to the county and may not retain any part of the tax as a

1. collection or administrative fee.

Sec. 5. NRS 278.710 is hereby amended to read as follows:

1. 278.710 1. A board of county commissioners may by ordinance, but

1. determined by the board of county commissioners, or 50 cents per square
2. foot on other new development. If so provided in the ordinance, a newly

1. developed lot for a mobile home shall be considered a single-family

1. dwelling unit of new residential development.

1. 4. The tax imposed pursuant to this section must be collected before

1. the time a certificate of occupancy for a building or other structure

1. constituting new development is issued, or at such other time as is specified

1. in the ordinance imposing the tax. If so provided in the ordinance, no

1. certificate of occupancy may be issued by any local government unless

1. proof of payment of the tax is filed with the person authorized to issue the

1. certificate of occupancy. Collection of the tax imposed pursuant to this

1. section must not commence earlier than the first day of the second calendar

1. month after adoption of the ordinance imposing the tax.

1. 5. In a county in which a tax has been imposed pursuant to paragraph

1. (a) of subsection 1, the revenue derived from the tax must be used

1. exclusively to pay the cost of:

1. (a) Projects related to the construction and maintenance of sidewalks,

1. streets, avenues, boulevards, highways and other public rights of way used

1. primarily for vehicular traffic, including, without limitation, overpass

1. projects, street projects and underpass projects, as defined in NRS

1. 244A.037, 244A.053 and 244A.055, within the boundaries of the county or

1. within 1 mile outside those boundaries if the board of county

1. commissioners finds that such projects outside the boundaries of the county

1. will facilitate transportation within the county;

1. (b) The principal and interest on notes, bonds or other obligations

1. incurred to fund projects described in paragraph (a); or

1. (c) Any combination of those uses.

1. 6. In a transportation district in which a tax has been imposed pursuant

1. to paragraph (b) of subsection 1, the revenue derived from the tax must be

1. used exclusively to pay the cost of:

1. (a) Projects related to the construction and maintenance of sidewalks,

1. streets, avenues, boulevards, highways and other public rights of way used

1. primarily for vehicular traffic, including, without limitation, overpass

1. projects, street projects and underpass projects, as defined in NRS

1. 244A.037, 244A.053 and 244A.055, within the boundaries of the district or

1. within such a distance outside those boundaries as is stated in the ordinance

1. imposing the tax, if the board of county commissioners finds that such

1. projects outside the boundaries of the district will facilitate transportation

1. within the district;

1. (b) The principal and interest on notes, bonds or other obligations

1. incurred to fund projects described in paragraph (a); or

1. (c) Any combination of those uses.

1. 7. The county may expend the proceeds of the tax authorized by this

1. section, or any borrowing in anticipation of the tax, pursuant to an

1. interlocal agreement between the county and the regional transportation

1. commission of the county with respect to the projects to be financed with

1. the proceeds of the tax.
2. 8. The provisions of chapter 278B of NRS and any action taken

1. pursuant to that chapter do not limit or in any other way apply to any tax

1. imposed pursuant to this section.

Sec. 6. This act becomes effective on July 1, 1999.

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