Senate Joint Resolution No. 20–Committee on


Government Affairs

FILE NUMBER........

SENATE JOINT RESOLUTION—Proposing to amend the Constitution of the State of

Nevada to provide requirements for the enactment of property and sales tax

exemptions.

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

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

of the Constitution of the State of Nevada to read as follows:

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

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

consumption of tangible personal property sold at retail unless the

Legislature:

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

economic purpose;

(b) Restricts the eligibility for the exemption solely to the intended

beneficiaries of the exemption;

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

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

otherwise receive revenue from the tax from which the exemption would

be granted;

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

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

principal on any outstanding bonds or any other obligations for which

revenue from the tax from which the exemption would be granted was

pledged; and

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

similar as practicable for similar classes of taxpayers.

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

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

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

purpose of the exemption is still valid and that the exemption is being

used effectively.

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