Senate Bill No. 529–Committee on Government Affairs

(On Behalf of Legislative Committee to Study the
Distribution Among Local Governments of
Revenue From State and Local Taxes)

March 22, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Requires segregation by use of proceeds for property tax levied within general improvement districts. (BDR 25-984)

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 general improvement districts; requiring segregation by the category of the use of the proceeds from property taxes levied within a district; clarifying that a board of trustees of a district may not continue the levy of tax that is used for capital expenditures or debt service on general obligations after those amounts are paid in full; 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 318.230 is hereby amended to read as follows:

1-2 318.230 1. To levy and collect taxes, the board shall determine, in

1-3 each year, the amount of money necessary to be raised by taxation, taking

1-4 into consideration other sources of revenue of the district, and shall fix a

1-5 rate of levy which, when levied upon every dollar of assessed valuation of

1-6 taxable property within the district, and together with other revenues, will

1-7 raise the amount required by the district annually to supply [funds] money

1-8 for paying :

1-9 (a) The expenses of organization and the costs of [acquiring,] operating

1-10 and maintaining the works and equipment of the district [, and promptly to

1-11 pay in full,] ; and

2-1 (b) The costs of acquiring the works and equipment of the district and,

2-2 when due, all interest on and principal of general obligation bonds and

2-3 other general obligations of the district.

2-4 In the event of accruing defaults or deficiencies, an additional levy may be

2-5 made as provided in NRS 318.235. The board shall identify separately the

2-6 rate of tax which is levied pursuant to paragraph (a) and the rate which

2-7 is levied pursuant to paragraph (b) and shall make such information

2-8 available to the public upon request. The board shall not continue to levy

2-9 a rate of tax pursuant to paragraph (b) after the cost to the district of

2-10 acquiring the particular work or equipment for which the rate was levied

2-11 has been recovered in full.

2-12 2. The board shall certify to the board of county commissioners, at the

2-13 same time as fixed by law for certifying thereto tax levies of incorporated

2-14 cities, the rate so fixed with directions that at the time and in the manner

2-15 required by law for levying taxes for county purposes such board of county

2-16 commissioners shall levy such tax upon the assessed valuation of all taxable

2-17 property within the district, in addition to such other taxes as may be levied

2-18 by such board of county commissioners at the rate so fixed and determined.

2-19 Sec. 2. NRS 318.235 is hereby amended to read as follows:

2-20 318.235 1. The board, in certifying annual levies, shall take into

2-21 account the maturing general obligation indebtedness for the ensuing year

2-22 as provided in its contracts, maturing general obligation bonds and interest

2-23 on such bonds, and deficiencies and defaults of prior years, and shall make

2-24 ample provision for the payment thereof.

2-25 2. In case the [moneys] money produced from such levies, together

2-26 with other revenues of the district, [are] is not sufficient punctually to pay

2-27 the annual installments on such obligations, and interest thereon, and to pay

2-28 defaults and deficiencies, the board shall make such additional levies of

2-29 taxes as may be necessary for such purposes, and, notwithstanding any

2-30 limitations, such taxes [shall] must be made and continue to be levied until

2-31 the general obligation indebtedness of the district [shall be] is fully paid [.]

2-32 but must not continue after that date.

2-33 Sec. 3. This act becomes effective on July 1, 1999.

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