Senate Bill No. 455–Committee on Government Affairs

March 17, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes to certain fees and licenses concerning businesses. (BDR 31-891)

FISCAL NOTE: Effect on Local Government: Yes.

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 governments; revising the manner in which the revenue from certain fees for business licenses is calculated; revising the provisions for increasing certain taxes or fees on private enterprises; providing additional notification for certain types of changes in fees imposed upon private enterprises; 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 354.5989 is hereby amended to read as follows:

1-2 354.5989 1. A local government shall not increase any fee for a

1-3 business license or adopt a fee for a business license issued for revenue or

1-4 regulation, or both, except as permitted by this section. This prohibition

1-5 does not apply to fees:

1-6 (a) Imposed by hospitals, county airports, airport authorities, convention

1-7 authorities, the Las Vegas Valley Water District or the Clark County

1-8 Sanitation District;

1-9 (b) Imposed on public utilities for the privilege of doing business

1-10 pursuant to a franchise;

1-11 (c) For business licenses which are calculated as a fraction or percentage

1-12 of the gross revenue of the business;

1-13 (d) Imposed pursuant to NRS 244.348, 268.0973, 268.821 or 269.182;

1-14 or

2-1 (e) Regulated pursuant to NRS 354.59881 to 354.59889, inclusive.

2-2 2. The amount of revenue the local government derives or is allowed to

2-3 derive, whichever is greater, from all fees for business licenses except

2-4 [those] :

2-5 (a) The fees excluded by subsection 1, for the fiscal year ended on
2-6 June 30, 1991 [,] ; and

2-7 (b) The fees collected for a particular type of business during the

2-8 immediately preceding fiscal year ending on June 30 that a local

2-9 government will not collect in the next subsequent fiscal year,

2-10 is the base from which the maximum allowable revenue from such fees

2-11 must be calculated for the next subsequent fiscal year. To the base must be

2-12 added the sum of the amounts respectively equal to the product of the base

2-13 multiplied by the percentage increase in the population of the local

2-14 government added to the percentage increase in the Consumer Price Index

2-15 for the year ending on December 31 next preceding the year for which the

2-16 limit is being calculated. The amount so determined becomes the base for

2-17 computing the allowed increase for each subsequent year.

2-18 3. A local government may not increase any fee for a business license

2-19 which is calculated as a fraction or percentage of the gross revenue of the

2-20 business if its total revenues from such fees have increased during the

2-21 preceding fiscal year by more than the increase in the Consumer Price

2-22 Index during that preceding calendar year. The provisions of this

2-23 subsection do not apply to a fee imposed pursuant to NRS 244.348,

2-24 268.0973, 268.821 or 269.182, or regulated pursuant to NRS 354.59881 to

2-25 354.59889, inclusive.

2-26 4. A local government may submit an application to increase its

2-27 revenue from fees for business licenses beyond the amount allowable

2-28 [under] pursuant to this section to the Nevada tax commission, which may

2-29 grant the application only if it finds that [:

2-30 (a) Emergency conditions exist which impair the ability of the local

2-31 government to perform the basic functions for which it was created; or

2-32 (b) The] the rate of a business license of the local government is

2-33 substantially below that of other local governments in the state.

2-34 5. The provisions of this section apply to a business license regardless

2-35 of the fund to which the revenue from it is assigned. An ordinance or

2-36 resolution enacted by a local government in violation of the provisions of

2-37 this section is void.

2-38 6. As used in this section, "fee for a business license" does not include

2-39 a tax imposed on the revenues from the rental of transient lodging.

3-1 Sec. 2. NRS 364.200 is hereby amended to read as follows:

3-2 364.200 1. An ordinance adopted by a city or county after July 1,

3-3 1997, which imposes or increases a tax or fee on a private enterprise that is

3-4 measured by the income or revenue of the enterprise, including, without

3-5 limitation, any fee imposed for the regulation and licensing of a business or

3-6 occupation, must include a statement of:

3-7 (a) The need for and purpose of the ordinance.

3-8 (b) The intended use for the revenue to be obtained pursuant to the

3-9 ordinance.

3-10 2. An agenda that proposes such an ordinance must include a statement

3-11 indicating whether the proposed ordinance establishes a new tax or fee, or

3-12 increases an existing tax or fee.

3-13 3. If a city or county wishes to change a tax or fee on a private

3-14 enterprise that is not a tax or fee that is measured by the income or

3-15 revenue of the enterprise to a tax or fee that is measured by the income

3-16 or revenue of the enterprise, the city or county must send a written notice,

3-17 at least 14 days before the adoption of the ordinance that changes a tax

3-18 or fee on a private enterprise to a tax or fee that is measured by the

3-19 income or revenue of the enterprise, to each enterprise to which the

3-20 ordinance will apply.

3-21 Sec. 3. This act becomes effective upon passage and approval.

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