requires two-thirds majority vote (§§ 2, 5)                                              

                                                                                                  

 

Assembly Bill No. 158–Assemblyman Parks

 

February 15, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Increases tax on transient lodging to fund artistic and cultural programs. (BDR 18‑1001)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxation; increasing the mandatory tax on the rental of transient lodging; providing for the use of the additional revenue for artistic and cultural programs; creating the account for artistic and cultural programs; 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. Chapter 233C of NRS is hereby amended by adding thereto

1-2  a new section to read as follows:

1-3    1.  The account for artistic and cultural programs is hereby created in

1-4  the state general fund. The director of the council shall administer the

1-5  account. The council shall allocate money in the account for appropriate

1-6  artistic and cultural programs and for no other purpose.

1-7    2.  The money in the account must not be used to replace or supplant

1-8  funding available from other sources. The money in the account does not

1-9  lapse to the state general fund at the end of any fiscal year.

1-10    Sec. 2.  NRS 244.3352 is hereby amended to read as follows:

1-11    244.3352  1.  The board of county commissioners:

1-12    (a) In a county whose population is 400,000 or more, shall impose a tax

1-13  at a rate of [2] 3 percent; and

1-14    (b) In a county whose population is less than 400,000, shall impose a

1-15  tax at the rate of [1] 2 percent,

1-16  of the gross receipts from the rental of transient lodging in that county

1-17  upon all persons in the business of providing lodging. This tax must be

1-18  imposed by the board of county commissioners in each county, regardless

1-19  of the existence or nonexistence of any other license fee or tax imposed on

1-20  the revenues from the rental of transient lodging. The ordinance imposing

2-1  the tax must include a schedule for the payment of the tax and the

2-2  provisions of subsection 4.

2-3    2.  The tax imposed pursuant to subsection 1 must be collected and

2-4  administered pursuant to NRS 244.335.

2-5    3.  The tax imposed pursuant to subsection 1 may be collected from the

2-6  paying guests and may be shown as an addition to the charge for the rental

2-7  of transient lodging. The person providing the transient lodging is liable to

2-8  the county for the tax whether or not it is actually collected from the paying

2-9  guest.

2-10    4.  If the tax imposed pursuant to subsection 1 is not paid within the

2-11  time set forth in the schedule for payment, the county shall charge and

2-12  collect in addition to the tax:

2-13    (a) A penalty of not more than 10 percent of the amount due, exclusive

2-14  of interest, or an administrative fee established by the board of county

2-15  commissioners, whichever is greater; and

2-16    (b) Interest on the amount due at the rate of not more than 1.5 percent

2-17  per month or fraction thereof from the date on which the tax became due

2-18  until the date of payment.

2-19    5.  As used in this section, “gross receipts from the rental of transient

2-20  lodging” does not include the tax imposed and collected from paying

2-21  guests pursuant to this section or NRS 268.096.

2-22    Sec. 3.  NRS 244.3354 is hereby amended to read as follows:

2-23    244.3354  The proceeds of the tax imposed pursuant to NRS 244.3352

2-24  and any applicable penalty or interest must be distributed as follows:

2-25    1.  In a county whose population is 400,000 or more:

2-26    (a) Three-eighths of the first 1 percent of the proceeds must be paid to

2-27  the department of taxation for deposit with the state treasurer for credit to

2-28  the fund for the promotion of tourism.

2-29    (b) Except as otherwise provided in this paragraph, one-third of the

2-30  proceeds must be paid to the department of taxation for deposit with the

2-31  state treasurer for credit to the account for artistic and cultural programs

2-32  created pursuant to section 1 of this act. Before paying the money to the

2-33  department of taxation pursuant to this paragraph, the county treasurer

2-34  shall deduct and retain 5 percent of the money for deposit in the county

2-35  general fund as a commission for collecting the tax.

2-36    (c) The remaining proceeds must be transmitted to the county treasurer

2-37  for deposit in the county school district’s fund for capital projects

2-38  established pursuant to NRS 387.328, to be held and expended in the same

2-39  manner as other money deposited in that fund.

2-40    2.  In a county whose population is less than 400,000:

2-41    (a) [Three-eighths] Three-sixteenths of the proceeds must be paid to

2-42  the department of taxation for deposit with the state treasurer for credit to

2-43  the fund for the promotion of tourism.

2-44    (b) [Five-eighths] Five-sixteenths of the proceeds must be deposited

2-45  with the county fair and recreation board created pursuant to NRS

2-46  244A.599 or, if no such board is created, with the board of county

2-47  commissioners, to be used to advertise the resources of that county related

2-48  to tourism, including available accommodations, transportation,

3-1  entertainment, natural resources and climate, and to promote special events

3-2  related thereto.

3-3    (c) Thirty-nine eightieths of the proceeds must be paid to the

3-4  department of taxation for deposit with the state treasurer for credit to

3-5  the account for artistic and cultural programs.

3-6    (d) One-eightieth of the proceeds must be deducted and retained by

3-7  the county treasurer for deposit in the county general fund as a

3-8  commission for collecting the tax.

3-9    Sec. 4.  NRS 244.3359 is hereby amended to read as follows:

3-10    244.3359  1.  A county whose population is 400,000 or more shall not

3-11  impose a new tax on the rental of transient lodging or increase the rate of

3-12  an existing tax on the rental of transient lodging after March 25, 1991,

3-13  except pursuant to NRS 244.3351 and 244.3352.

3-14    2.  A county whose population is 100,000 or more but less than

3-15  400,000 shall not impose a new tax on the rental of transient lodging or

3-16  increase the rate of an existing tax on the rental of transient lodging after

3-17  March 25, 1991[.] , except pursuant to NRS 244.3352.

3-18    3.  The legislature hereby declares that the limitation imposed by

3-19  subsection 2 will not be repealed or amended except to allow the

3-20  imposition of an increase in such a tax for [the] :

3-21    (a) The promotion of tourism [or for the] ;

3-22    (b) The construction or operation of tourism facilities by a convention

3-23  and visitors authority[.] ; or

3-24    (c) The promotion of artistic and cultural programs.

3-25    Sec. 5.  NRS 268.096 is hereby amended to read as follows:

3-26    268.096  1.  The city council or other governing body of each

3-27  incorporated city:

3-28    (a) In a county whose population is 400,000 or more, shall impose a tax

3-29  at a rate of [2] 3 percent; and

3-30    (b) In a county whose population is less than 400,000, shall impose a

3-31  tax at the rate of [1] 2 percent,

3-32  of the gross receipts from the rental of transient lodging in that city upon

3-33  all persons in the business of providing lodging. This tax must be imposed

3-34  by the city council or other governing body of each incorporated city,

3-35  regardless of the existence or nonexistence of any other license fee or tax

3-36  imposed on the revenues from the rental of transient lodging. The

3-37  ordinance imposing the tax must include a schedule for the payment of the

3-38  tax and the provisions of subsection 4.

3-39    2.  The tax imposed pursuant to subsection 1 must be collected and

3-40  administered pursuant to NRS 268.095.

3-41    3.  The tax imposed pursuant to subsection 1 may be collected from the

3-42  paying guests and may be shown as an addition to the charge for the rental

3-43  of transient lodging. The person providing the transient lodging is liable to

3-44  the city for the tax whether or not it is actually collected from the paying

3-45  guest.

3-46    4.  If the tax imposed pursuant to subsection 1 is not paid within the

3-47  time set forth in the schedule for payment, the city shall charge and collect

3-48  in addition to the tax:

4-1    (a) A penalty of not more than 10 percent of the amount due, exclusive

4-2  of interest, or an administrative fee established by the governing body,

4-3  whichever is greater; and

4-4    (b) Interest on the amount due at the rate of not more than 1.5 percent

4-5  per month or fraction thereof from the date on which the tax became due

4-6  until the date of payment.

4-7    5.  As used in this section, “gross receipts from the rental of transient

4-8  lodging” does not include the tax imposed or collected from paying guests

4-9  pursuant to this section or NRS 244.3352.

4-10    Sec. 6.  NRS 268.0962 is hereby amended to read as follows:

4-11    268.0962  The proceeds of the tax imposed pursuant to NRS 268.096

4-12  and any applicable penalty or interest must be distributed as follows:

4-13    1.  In a county whose population is 400,000 or more:

4-14    (a) Three-eighths of the first 1 percent of the proceeds must be paid to

4-15  the department of taxation for deposit with the state treasurer for credit to

4-16  the fund for the promotion of tourism.

4-17    (b) Except as otherwise provided in this paragraph, one-third of the

4-18  proceeds must be paid to the department of taxation for deposit with the

4-19  state treasurer for credit to the account for artistic and cultural programs

4-20  created pursuant to section 1 of this act. Before paying the money to the

4-21  department of taxation pursuant to this paragraph, the city treasurer

4-22  shall deduct and retain 5 percent of the money for deposit in the city

4-23  general fund as a commission for collecting the tax.

4-24    (c) The remaining proceeds must be transmitted to the county treasurer

4-25  for deposit in the county school district’s fund for capital projects

4-26  established pursuant to NRS 387.328, to be held and expended in the same

4-27  manner as other money deposited in that fund.

4-28    2.  In a county whose population is less than 400,000:

4-29    (a) [Three-eighths] Three-sixteenths of the proceeds must be paid to

4-30  the department of taxation for deposit with the state treasurer for credit to

4-31  the fund for the promotion of tourism.

4-32    (b) [Five-eighths] Five-sixteenths of the proceeds must be deposited

4-33  with the county fair and recreation board created pursuant to NRS

4-34  244A.599 or, if no such board is created, with the city council or other

4-35  governing body of the incorporated city, to be used to advertise the

4-36  resources of that county or incorporated city related to tourism, including

4-37  available accommodations, transportation, entertainment, natural resources

4-38  and climate, and to promote special events related thereto.

4-39    (c) Thirty-nine eightieths of the proceeds must be paid to the

4-40  department of taxation for deposit with the state treasurer for credit to

4-41  the account for artistic and cultural programs.

4-42    (d) One-eightieth of the proceeds must be deducted and retained by

4-43  the city treasurer for deposit in the city general fund as a commission for

4-44  collecting the tax.

4-45    Sec. 7.  NRS 268.0968 is hereby amended to read as follows:

4-46    268.0968  1.  Except as otherwise provided in NRS 268.096 and

4-47  268.801 to 268.808, inclusive, a city located in a county whose population

4-48  is 400,000 or more shall not impose a new tax on the rental of transient

5-1  lodging or increase the rate of an existing tax on the rental of transient

5-2  lodging after March 25, 1991.

5-3    2.  Except as otherwise provided in NRS 268.096 and 268.7845, a city

5-4  located in a county whose population is 100,000 or more but less than

5-5  400,000 shall not impose a new tax on the rental of transient lodging or

5-6  increase the rate of an existing tax on the rental of transient lodging after

5-7  March 25, 1991.

5-8    3.  The legislature hereby declares that the limitation imposed by

5-9  subsection 2 will not be repealed or amended except to allow the

5-10  imposition of an increase in such a tax for:

5-11    (a) The promotion of tourism;

5-12    (b) The construction or operation of tourism facilities by a convention

5-13  and visitors authority; [or]

5-14    (c) The acquisition, establishment, construction or expansion of one or

5-15  more railroad grade separation projects[.] ; or

5-16    (d) The promotion of artistic and cultural programs.

5-17    Sec. 8.  This act becomes effective on July 1, 2001.

 

5-18  H