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 Resolved by the Senate and Assembly of the State of Nevada,

1-2 Jointly, That a new section, designated section 6, be added to article 10

1-3 of the Constitution of the State of Nevada to read as follows:

1-4 Sec. 6. 1. The Legislature shall not enact an exemption from any

1-5 ad valorem tax on property or excise tax on the sale, storage, use or

1-6 consumption of tangible personal property sold at retail unless the

1-7 Legislature:

1-8 (a) Determines that the exemption will achieve a bona fide social or

1-9 economic purpose;

1-10 (b) Restricts the eligibility for the exemption solely to the intended

1-11 beneficiaries of the exemption;

1-12 (c) Determines that the exemption will not have a material adverse

1-13 effect on the finances of the state or any local government that would

1-14 otherwise receive revenue from the tax from which the exemption would

1-15 be granted;

2-1 (d) Determines that the exemption will not impair adversely the ability

2-2 of the state or a unit of government to pay, when due, all interest and

2-3 principal on any outstanding bonds or any other obligations for which

2-4 revenue from the tax from which the exemption would be granted was

2-5 pledged; and

2-6 (e) Ensures that the requirements for claiming the exemption are as

2-7 similar as practicable for similar classes of taxpayers.

2-8 2. The Legislature shall review any exemption from any tax on

2-9 property or on the sale, storage, use or consumption of tangible personal

2-10 property sold at retail at least once every 6 years to determine whether the

2-11 purpose of the exemption is still valid and that the exemption is being

2-12 used effectively.