Assembly Bill No. 137–Committee on Ways and
Means
(On Behalf of State Planning Commission for
the
New Construction, Design, Maintenance and
Repair of School Facilities)
February 14, 2001
____________
Referred to Committee on Taxation
SUMMARY—Makes changes relating to statutory
limitation on total ad valorem tax levy. (BDR 32‑1069)
FISCAL NOTE: Effect on Local Government: No.
~
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 taxation; providing an exception to the statutory limitation on the
total ad valorem tax levy; 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 361.453
is hereby amended to read as follows:
1-2 361.453 1. Except as otherwise provided in this section
and NRS
1-3 354.705, 354.723 and
450.760, the total ad valorem tax levy for all public
1-4 purposes must not exceed
$3.64 on each $100 of assessed valuation, or a
1-5 lesser or greater amount
fixed by the state board of examiners if the state
1-6 board of examiners is
directed by law to fix a lesser or greater amount for
1-7 that fiscal year.
1-8 2. Any levy imposed by the
legislature for the repayment of bonded
1-9 indebtedness or the
operating expenses of the State of Nevada and any levy
1-10 imposed by the board of
county commissioners pursuant to NRS 387.195
1-11 that is in excess of 50
cents on each $100 of assessed valuation of taxable
1-12 property within the county
must not be included in calculating the
1-13 limitation set forth in
subsection 1 on the total ad valorem tax levied within
1-14 the boundaries of the
county, city or unincorporated town, if, in a county
1-15 whose population is 25,000
or less, or in a city or unincorporated town
1-16 located within that county:
1-17 (a) The combined tax rate certified by the Nevada tax commission
was
1-18 at least $3.50 on each $100
of assessed valuation on June 25, 1998;
2-1 (b) The governing body of that county, city or unincorporated town
2-2 proposes to its registered
voters an additional levy ad valorem above the
2-3 total ad valorem tax levy
for all public purposes set forth in subsection 1;
2-4 (c) The proposal specifies the amount of money to be derived, the
2-5 purpose for which it is to
be expended and the duration of the levy; and
2-6 (d) The proposal is approved by a majority of the voters voting on
the
2-7 question at a general
election or a special election called for that purpose.
2-8 3. If the voters of this state or of a local government approve
a levy of
2-9 ad valorem taxes or approve a bond issuance or other debt that is
to be
2-10 repaid by the levy of ad valorem taxes, the amount of the levy of
ad
2-11 valorem taxes that results must not be included in calculating the
2-12 limitation in subsection 1 on the total ad valorem tax levy for all
public
2-13 purposes if the ballot question contains a clear statement which
sets forth
2-14 the amount of the levy and explains that the levy will be exempt
from the
2-15 limitation set forth in subsection 1.
2-16 4. The duration of the additional levy ad valorem
levied pursuant to
2-17 subsection 2 must not exceed
5 years. The governing body of the county,
2-18 city or unincorporated town
may discontinue the levy before it expires and
2-19 may not thereafter reimpose
it in whole or in part without following the
2-20 procedure required for its
original imposition set forth in subsection 2.
2-21 [4.] 5. A special election may be held pursuant to
subsection 2 only if
2-22 the governing body of the
county, city or unincorporated town determines,
2-23 by a unanimous vote, that an
emergency exists. The determination made by
2-24 the governing body is
conclusive unless it is shown that the governing
2-25 body acted with fraud or a
gross abuse of discretion. An action to challenge
2-26 the determination made by
the governing body must be commenced within
2-27 15 days after the governing
body’s determination is final. As used in this
2-28 subsection, “emergency”
means any unexpected occurrence or combination
2-29 of occurrences which
requires immediate action by the governing body of
2-30 the county, city or
unincorporated town to prevent or mitigate a substantial
2-31 financial loss to the
county, city or unincorporated town or to enable the
2-32 governing body to provide an
essential service to the residents of the
2-33 county, city or
unincorporated town.
2-34 Sec. 2. NRS 361.4547 is hereby amended to read as follows:
2-35 361.4547 [1.] After the approval of the final budgets for
the various
2-36 local governments as defined
in NRS 354.474 and their submission to the
2-37 department, for examination
and approval, the Nevada tax commission
2-38 shall certify to the board
of county commissioners of each of the several
2-39 counties the combined tax
rate necessary to produce the amount of revenue
2-40 required by the approved
budgets, and shall certify that combined rate, to
2-41 each of the boards of county
commissioners.
2-42 [2. If the voters of a school district approve an
additional levy of taxes
2-43 ad valorem pursuant to NRS 387.3285 or 387.3287 or the issuance of
2-44 bonds or other debt to be repaid by a levy of taxes ad valorem
throughout
2-45 the district, and the department finds for any fiscal year that the
additional
2-46 rate of tax required for this purpose, when added to the rates of
taxes ad
2-47 valorem authorized to be levied in the district by other local
governments
2-48 and the state for that fiscal year would cause the combined rate
within the
3-1 territory of any other local government to exceed the rate allowed
by NRS
3-2 361.453, the department shall determine:
3-3 (a) The amounts by which the
proposed levies for all of the other local
3-4 governments whose rates affect the territory have increased from the
3-5 previous year; and
3-6 (b) The portion of the amount
by which the combined rate would
3-7 exceed the rate allowed by NRS 361.453 that is directly attributable
to the
3-8 additional levy approved by the voters for the school district.
3-9 3. If the department determines that any portion of the amount by
3-10 which the combined rate would exceed the rate allowed by NRS 361.453
is
3-11 directly attributable to the additional levy approved by the voters
for the
3-12 school district, the school district shall:
3-13 (a) Reduce for the fiscal
year the amount levied pursuant to NRS
3-14 387.3285 or 387.3287, or both, if the proceeds of the levy are not
already
3-15 committed for debt service, by the amount determined by the
department to
3-16 be directly attributable to the school district;
3-17 (b) Transfer to the other
local government whose rate overlaps in that
3-18 territory an amount of money, determined by the department to be
directly
3-19 attributable to the school district, to reduce the combined rate to
the rate
3-20 allowed; or
3-21 (c) Determine and implement a
combination of the methods of
3-22 reduction allowed by paragraphs (a) and (b) that will result in the
reduction
3-23 of the combined rate by the amount determined by the department to
be
3-24 directly attributable to the school district.
3-25 4. If a school district determines that it will proceed pursuant to
3-26 paragraph (b) or (c) of subsection 3, the department shall calculate
the
3-27 transfers so as to minimize the total amount transferred, and each
local
3-28 government to which a transfer is made shall correspondingly reduce
its
3-29 rate and file a revised budget within the time allowed by subsection
6 of
3-30 NRS 361.455. The amounts transferred must be paid in installments,
within
3-31 30 days after each installment of property taxes is due.]
3-32 Sec. 3. NRS 361.455 is hereby amended to read as follows:
3-33 361.455 1. [Unless
individual tax rates are reduced pursuant to NRS
3-34 361.4547, immediately] Immediately upon adoption of the final
budgets, if
3-35 the combined tax rate
exceeds the limit imposed by NRS 361.453, the
3-36 chairman of the board of
county commissioners in each county concerned
3-37 shall call a meeting of the
governing boards of each of the local
3-38 governments within the
county for the purpose of establishing a combined
3-39 tax rate that conforms to
the statutory limit. The chairman shall convene
3-40 the meeting no later than
June 13 of each year.
3-41 2. The governing boards of
the local governments shall meet in public
3-42 session and the county clerk
shall keep appropriate records, pursuant to
3-43 regulations of the
department, of all proceedings. The costs of taking and
3-44 preparing the record of the
proceedings, including the costs of transcribing
3-45 and summarizing tape
recordings, must be borne by the county and
3-46 participating incorporated
cities in proportion to the final tax rate as
3-47 certified by the department.
The chairman of the board of county
3-48 commissioners or his
designee shall preside at the meeting. The governing
4-1 boards shall explore areas
of mutual concern so as to agree upon a
4-2 combined tax rate that does
not exceed the statutory limit.
4-3 3. The governing boards
shall determine final decisions by a
4-4 unanimous vote of all
entities present and qualified to vote, as defined in
4-5 this subsection. No ballot
may be cast on behalf of any governing board
4-6 unless a majority of the
individual board is present. A majority vote of all
4-7 members of each governing
board is necessary to determine the ballot cast
4-8 for that entity. All ballots
must be cast not later than the day following the
4-9 day the meeting is convened.
The district attorney is the legal adviser for
4-10 such proceedings.
4-11 4. The county clerk shall
immediately thereafter advise the department
4-12 of the results of the
ballots cast and the tax rates set for local governments
4-13 concerned. If the ballots
for the entities present at the meeting in the county
4-14 are not unanimous, the
county clerk shall transmit all records of the
4-15 proceedings to the
department within 5 days after the meeting.
4-16 5. If a unanimous vote is
not obtained and the combined rate in any
4-17 county together with the
established state tax rate exceeds the statutory
4-18 limit, the department shall
examine the record of the discussions and the
4-19 budgets of all local
governments concerned. On June 25 or, if June 25 falls
4-20 on a Saturday or Sunday, on
the Monday next following, the Nevada tax
4-21 commission shall meet to set
the tax rates for the next succeeding year for
4-22 all local governments so
examined. In setting the tax rates for the next
4-23 succeeding year the Nevada
tax commission shall not reduce that portion
4-24 of the proposed tax rate of
the county school district for the operation and
4-25 maintenance of public
schools.
4-26 6. Any local government
affected by a rate adjustment, made in
4-27 accordance with the
provisions of this section, which necessitates a budget
4-28 revision shall file a copy
of its revised budget by July 30 next after the
4-29 approval and certification
of the rate by the Nevada tax commission.
4-30 7. A copy of the
certificate of the Nevada tax commission sent to the
4-31 board of county
commissioners must be forwarded to the county auditor.
4-32 Sec. 4. NRS 354.598 is hereby amended to read as follows:
4-33 354.598 1. At the time and place advertised for public
hearing, or at
4-34 any time and place to which
the public hearing is from time to time
4-35 adjourned, the governing
body shall hold a public hearing on the tentative
4-36 budget, at which time
interested persons must be given an opportunity to
4-37 be heard.
4-38 2. At the public hearing,
the governing body shall indicate changes, if
4-39 any, to be made in the
tentative budget, and shall adopt a final budget by
4-40 the favorable votes of a
majority of all members of the governing body.
4-41 Except as otherwise provided
in this subsection, the final budget must be
4-42 adopted on or before June 1
of each year. The final budgets of school
4-43 districts must be adopted on
or before June 8 of each year and must be
4-44 accompanied by copies of the
written report and written procedure
4-45 prepared pursuant to
subsection 3 of NRS 385.351. Should the governing
4-46 body fail to adopt a final
budget that complies with the requirements of law
4-47 and the regulations of the
department of taxation on or before the required
4-48 date, the budget adopted and
approved by the department of taxation for
4-49 the current year, adjusted
as to content and rate in such a manner as the
5-1 department of taxation may
consider necessary, automatically becomes the
5-2 budget for the ensuing
fiscal year. When a budget has been so adopted by
5-3 default, the governing body
may not reconsider the budget without the
5-4 express approval of the
department of taxation. If the default budget creates
5-5 a combined ad valorem tax
rate in excess of the limit imposed by NRS
5-6 361.453, the Nevada tax
commission shall adjust the budget as provided in
5-7 NRS [361.4547 or]
361.455.
5-8 3. The final budget must be
certified by a majority of all members of
5-9 the governing body and a
copy of it, together with an affidavit of proof of
5-10 publication of the notice of
the public hearing, must be transmitted to the
5-11 Nevada tax commission. If a
tentative budget is adopted by default as
5-12 provided in subsection 2,
the clerk of the governing body shall certify the
5-13 budget and transmit to the
Nevada tax commission a copy of the budget,
5-14 together with an affidavit
of proof of the notice of the public hearing, if
5-15 that notice was published.
Certified copies of the final budget must be
5-16 distributed as determined by
the department of taxation.
5-17 4. Upon the adoption of the
final budget or the amendment of the
5-18 budget in accordance with
NRS 354.606, the several amounts stated in it as
5-19 proposed expenditures are
appropriated for the purposes indicated in the
5-20 budget.
5-21 5. No governing body may
adopt any budget which appropriates for
5-22 any fund any amount in
excess of the budget resources of that fund.
5-23 6. On or before January 1
of each school year, each school district
5-24 shall adopt an amendment to
its final budget after the count of pupils is
5-25 completed pursuant to
subsection 1 of NRS 387.1233. The amendment
5-26 must reflect any adjustments
necessary as a result of the completed count
5-27 of pupils.
5-28 Sec. 5. This act becomes effective upon passage and approval.
5-29 H