Senate Bill No. 383–Senator Schneider

March 12, 1999

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Referred to Committee on Taxation

 

SUMMARY—Makes various changes governing certain property assessed by Nevada tax commission. (BDR 32-939)

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 taxation; specifying certain properties that must be assessed by the Nevada tax commission; defining "property of an interstate or intercounty nature" for the purpose of determining whether a property must be assessed by the Nevada tax commission; 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. Chapter 361 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 "Property of an interstate or intercounty nature" means tangible

1-4 property that:

1-5 1. Physically crosses a county or state boundary; and

1-6 2. Is used directly in the operation of the business.

1-7 A company engaged in a business described in subsection 1 of NRS

1-8 361.320 that does not have property of an interstate or intercounty nature

1-9 must be assessed as provided in subsection 7 of NRS 361.320.

1-10 Sec. 2. NRS 361.010 is hereby amended to read as follows:

1-11 361.010 As used in this chapter, unless the context otherwise requires,

1-12 the words and terms defined in NRS 361.013 to 361.043, inclusive, and

1-13 section 1 of this act have the meanings ascribed to them in those sections.

1-14 Sec. 3. NRS 361.043 is hereby amended to read as follows:

1-15 361.043 "Taxable value" means:

1-16 1. The value of property of an interstate [and] or intercounty nature

1-17 determined in the manner provided in NRS 361.320 or 361.323.

2-1 2. The value of all other property determined in the manner provided in

2-2 NRS 361.227.

2-3 Sec. 4. NRS 361.320 is hereby amended to read as follows:

2-4 361.320 1. At the regular session of the Nevada tax commission

2-5 commencing on the first Monday in October of each year, the Nevada tax

2-6 commission shall establish the valuation for assessment purposes of any

2-7 property of an interstate [and] or intercounty nature [, which must in any

2-8 event include the property] used directly in the operation of all interstate

2-9 or intercounty railroad, sleeping car, private car, [street railway, traction,

2-10 telegraph,] natural gas transmission and distribution, water, telephone,

2-11 scheduled and unscheduled air transport, electric light and power

2-12 companies, together with their franchises, and the property and franchises

2-13 of all railway express companies operating on any common or contract

2-14 carrier in this state. This valuation must not include the value of vehicles as

2-15 defined in NRS 371.020.

2-16 2. Except as otherwise provided in subsection 3 and NRS 361.323, the

2-17 commission shall establish and fix the valuation of the franchise, if any, and

2-18 all physical property used directly in the operation of any such business of

2-19 any such company in this state, as a collective unit. If the company is

2-20 operating in more than one county, on establishing the unit valuation for the

2-21 collective property, the commission shall then determine the total aggregate

2-22 mileage operated within the state and within its several counties [,] and

2-23 apportion the mileage upon a mile-unit valuation basis. The number of

2-24 miles apportioned to any county are subject to assessment in that county

2-25 according to the mile-unit valuation established by the commission.

2-26 3. After establishing the valuation, as a collective unit, of a public

2-27 utility which generates, transmits or distributes electricity, the commission

2-28 shall segregate the value of any project in this state for the generation of

2-29 electricity which is not yet put to use. This value must be assessed in the

2-30 county where the project is located and must be taxed at the same rate as

2-31 other property.

2-32 4. The Nevada tax commission shall adopt formulas [, and cause them

2-33 to be incorporated] and incorporate them in its records, providing the

2-34 method or methods pursued in fixing and establishing the taxable value of

2-35 all franchises and property assessed by it. The formulas must be adopted

2-36 and may be changed from time to time upon its own motion or when made

2-37 necessary by judicial decisions, but the formulas must in any event show all

2-38 the elements of value considered by the commission in arriving at and

2-39 fixing the value for any class of property assessed by it. These formulas

2-40 must take into account, as indicators of value, the company’s income, stock

2-41 and debt, and the cost of its assets.

3-1 5. If two or more persons perform separate functions that collectively

3-2 are needed to deliver electric service to the final customer and the property

3-3 used in performing the functions would be centrally assessed if owned by

3-4 one person, the Nevada tax commission shall establish its valuation and

3-5 apportion the valuation among the several counties in the same manner as

3-6 the valuation of other centrally assessed property. The Nevada tax

3-7 commission shall determine the proportion of the tax levied upon the

3-8 property by each county according to the valuation of the contribution of

3-9 each person to the aggregate valuation of the property. This subsection

3-10 does not apply to [qualified facilities,] a qualifying facility, as defined in

3-11 18 C.F.R. § 292.101, which [were] was constructed before July 1, 1997.

3-12 6. As used in this section [, "company"] :

3-13 (a) "Company" means any person, company, corporation or association

3-14 engaged in the business described.

3-15 (b) "Commercial mobile radio service" has the meaning ascribed to it

3-16 in 47 C.F.R. § 20.3 as that section existed on January 1, 1998.

3-17 7. All other property , including, without limitation, that of any

3-18 company engaged in providing commercial mobile radio service, radio or

3-19 television transmission services or cable television services, must be

3-20 assessed by the county assessors, except as otherwise provided in NRS

3-21 361.321 and 362.100 and except that the valuation of land and mobile

3-22 homes must be established for assessment purposes by the Nevada tax

3-23 commission as provided in NRS 361.325.

3-24 8. On or before November 1 of each year, the department shall forward

3-25 a tax statement to each private car line company based on the valuation

3-26 established pursuant to this section and in accordance with the tax levies of

3-27 the several districts in each county. The company shall remit the ad

3-28 valorem taxes due on or before December 15 to the department which shall

3-29 allocate the taxes due each county on a mile-unit basis and remit the taxes

3-30 to the counties no later than January 31. The portion of the taxes which is

3-31 due the state must be transmitted directly to the state treasurer. A company

3-32 which fails to pay the tax within the time required shall pay a penalty of 10

3-33 percent of the tax due or $5,000, whichever is greater, in addition to the

3-34 tax. Any amount paid as a penalty must be deposited in the state general

3-35 fund. The department may, for good cause shown, waive the payment of a

3-36 penalty pursuant to this subsection. As an alternative to any other method

3-37 of recovering delinquent taxes provided by this chapter, the attorney

3-38 general may bring a civil action in a court of competent jurisdiction to

3-39 recover delinquent taxes due pursuant to this subsection in the manner

3-40 provided in NRS 361.560.

3-41 Sec. 5. This act becomes effective upon passage and approval.

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