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).

1-1 Section 1. Chapter 361 of NRS is hereby amended by adding thereto a

1-12 reflected in the value of real property or tangible personal property.

2-1 3. The attributes of real property, such as zoning, location, view and

2-2 geographic features, are not intangible personal property and must be

2-3 considered in valuing the real property, if appropriate.

2-4 Sec. 2. NRS 361.260 is hereby amended to read as follows:

2-5 361.260 1. Each year, the county assessor, except as otherwise

2-43 depreciation and obsolescence. The factor for improvements must be

3-1 adopted by the Nevada tax commission. The factor for land must be

3-2 developed by the county assessor and approved by the commission. The

3-3 factor for land must be so chosen that the median ratio of the assessed value

3-4 of the land to the taxable value of the land in each area subject to the factor

3-5 is not less than 30 percent nor more than 35 percent.

3-6 [7.] 6. The county assessor shall reappraise all real property at least

3-7 once every 5 years.

3-8 [8.] 7. Each county assessor shall submit a written request to the board

3-9 of county commissioners and the governing body of each of the local

3-10 governments located in the county which maintain a unit of government

3-11 that issues building permits for a copy of each building permit that is

3-12 issued. Upon receipt of such a request, the governing body shall direct the

3-13 unit which issues the permits to provide a copy of each permit to the county

3-14 assessor within a reasonable time after issuance.

3-15 Sec. 3. NRS 361.320 is hereby amended to read as follows:

3-16 361.320 1. At the regular session of the Nevada tax commission

3-42 other property.

4-1 4. The Nevada tax commission shall adopt formulas, and cause them to

4-2 be incorporated in its records, providing the method or methods pursued in

4-3 fixing and establishing the taxable value of all [franchises and] property

4-4 assessed by it. The formulas must be adopted and may be changed from

4-5 time to time upon its own motion or when made necessary by judicial

4-6 decisions, but the formulas must in any event show all the elements of value

4-7 considered by the commission in arriving at and fixing the value for any

4-8 class of property assessed by it. These formulas must take into account, as

4-9 indicators of value, the company’s income [, stock and debt,] and the cost

4-10 of its assets [.] , but the taxable value may not exceed the cost of

4-11 replacement as appropriately depreciated.

4-12 5. If two or more persons perform separate functions that collectively

4-13 are needed to deliver electric service to the final customer and the property

4-14 used in performing the functions would be centrally assessed if owned by

4-15 one person, the Nevada tax commission shall establish its valuation and

4-16 apportion the valuation among the several counties in the same manner as

4-17 the valuation of other centrally assessed property. The Nevada tax

4-18 commission shall determine the proportion of the tax levied upon the

4-19 property by each county according to the valuation of the contribution of

4-20 each person to the aggregate valuation of the property. This subsection

4-21 does not apply to qualified facilities, as defined in 18 C.F.R. § 292.101,

4-22 which were constructed before July 1, 1997.

4-23 6. As used in this section, "company" means any person, company,

4-24 corporation or association engaged in the business described.

4-25 7. All other property must be assessed by the county assessors, except

4-26 as otherwise provided in NRS 361.321 and 362.100 and except that the

4-27 valuation of land and mobile homes must be established for assessment

4-28 purposes by the Nevada tax commission as provided in NRS 361.325.

4-29 8. On or before November 1 of each year, the department shall forward

4-30 a tax statement to each private car line company based on the valuation

4-31 established pursuant to this section and in accordance with the tax levies of

4-32 the several districts in each county. The company shall remit the ad

4-33 valorem taxes due on or before December 15 to the department which shall

4-34 allocate the taxes due each county on a mile-unit basis and remit the taxes

4-35 to the counties no later than January 31. The portion of the taxes which is

4-36 due the state must be transmitted directly to the state treasurer. A company

4-37 which fails to pay the tax within the time required shall pay a penalty of 10

4-38 percent of the tax due or $5,000, whichever is greater, in addition to the

4-39 tax. Any amount paid as a penalty must be deposited in the state general

4-40 fund. The department may, for good cause shown, waive the payment of a

4-41 penalty pursuant to this subsection. As an alternative to any other method

4-42 of recovering delinquent taxes provided by this chapter, the attorney

4-43 general may bring a civil action in a court of competent jurisdiction to

5-1 recover delinquent taxes due pursuant to this subsection in the manner

5-2 provided in NRS 361.560.

5-3 Sec. 4. 1. The legislature hereby finds and declares that it is more

5-4 equitable to establish the valuation for assessment purposes of all types of

5-5 property without considering the value of intangible personal property and

5-6 that the incremental elimination of intangible personal property from the

5-7 valuation and assessment of all property in the State of Nevada is desirable

5-8 to allow the orderly assessment and collection of ad valorem taxes.

5-9 2. Notwithstanding the amendatory provisions of this act, intangible

5-10 personal property must continue to be assessed pursuant to the provisions

5-11 of chapter 361 of NRS as those provisions existed before the enactment of

5-12 the amendatory provisions of this act, except that:

5-13 (a) For the fiscal year commencing July 1, 2000, the assessed value of

5-14 the intangible personal property must be reduced by 5 percent;

5-15 (b) For the fiscal year commencing July 1, 2001, the assessed value of

5-16 the intangible personal property must be reduced by 10 percent;

5-17 (c) For the fiscal year commencing July 1, 2002, the assessed value of

5-18 the intangible personal property must be reduced by 40 percent; and

5-19 (d) For the fiscal year commencing July 1, 2003, the assessed value of

5-20 the intangible personal property must be reduced by 70 percent.

5-21 Sec. 5. 1. The committee shall monitor the implementation of this

5-22 act and conduct an interim study of the current system of taxation of those

5-23 businesses, whether centrally or locally assessed as of June 30, 1999, that

5-24 are engaged, in whole or in part, in any of the following activities:

5-25 (a) Railroad, sleeping car, private car, street railway or traction;

5-26 (b) Scheduled or unscheduled air transport;

5-27 (c) Telegraph, telephone or telecommunications;

5-28 (d) Natural gas transmission and distribution;

5-29 (e) Electric light and power; or

5-30 (f) Railway express.

5-31 2. On or before February 15, 2001, the committee shall prepare a

5-32 report of its findings and recommendations and submit the report to the

5-33 director of the legislative counsel bureau for transmittal to the senate and

5-34 assembly committees on taxation of the 71st session of the Nevada

5-35 legislature for their review.

5-36 3. The chairman of the committee may appoint a subcommittee to

5-37 assist in conducting the study. Any subcommittee appointed by the chair of

5-38 the committee shall consist of members of the committee, members of the

5-39 advisory committee to the committee, other representatives of local

5-40 government and members of businesses described in subsection 1. Any

5-41 subcommittee appointed pursuant to this subsection shall report its findings

5-42 to the committee on or before October 1, 2000.

5-43 4. The report required pursuant to subsection 2 must include:

6-1 (a) An evaluation of whether the current system of taxation used to

6-2 assess taxes upon those businesses described in subsection 1 is fair and

6-3 equitable, including the method of assessment and application of the

6-4 property tax, when compared with the system of taxation used to assess

6-5 taxes upon other businesses in this state;

6-6 (b) An evaluation of the extent to which local governments in this state

6-7 rely upon the revenues obtained from the current system of taxation used to

6-8 assess taxes upon those businesses described in subsection 1, including,

6-9 without limitation, an evaluation of the manner in which the tax bases of the

6-10 local governments are affected by that system;

6-11 (c) An evaluation of the impact of the changes made by the provisions

6-12 of this act upon revenues of local governments and upon the tax base relied

6-13 upon by each local government for its revenue;

6-14 (d) An evaluation of the extent to which any local government or agency

6-15 of the state provides services that compete with the businesses described in

6-16 subsection 1;

6-17 (e) An evaluation of any alternative system of taxation that could be

6-18 used to assess taxes upon the businesses described in subsection 1 that:

6-19 (1) Does not create substantially more or less revenue for local

6-20 governments, in the aggregate, than would otherwise be available if the

6-21 system of taxation were not changed;

6-22 (2) Provides for a source of revenue for local governments that is as

6-23 stable and reliable as possible; and

6-24 (3) Is fair and equitable to the businesses described in subsection 1 as

6-25 compared to the current system of taxation used to assess taxes upon all

6-26 businesses in this state; and

6-27 (f) A recommendation from the committee regarding whether a change

6-28 to the system of taxation used to assess taxes upon the businesses described

6-29 in subsection 1 is advisable and, if so, the alternative system of taxation

6-30 which would ensure the most fair, equitable, stable and reliable result

6-31 possible.

6-32 5. As used in this section, "committee" has the meaning ascribed to it

6-33 in NRS 218.5388.

6-34 Sec. 6. 1. This act becomes effective July 1, 1999.

6-35 2. Section 4 of this act expires by limitation on June 30, 2004.