requires two-thirds majority vote (§ 3)                                                   

                                                                                                  

 

Assembly Bill No. 457–Assemblymen Beers
and Goldwater

 

March 19, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Revises provisions governing distribution of basic vehicle privilege tax revenue to increase amount allocated for educational purposes. (BDR 43‑1152)

 

FISCAL NOTE:            Effect on Local Government: Yes.

                                    Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxation; revising the provisions governing the distribution of the basic vehicle privilege tax revenue to increase the amount allocated for educational purposes; specifying the educational purposes for which the additional allocation may be used; allowing an increase in the amount of revenue from taxes ad valorem that certain larger counties may receive to offset the reduction in revenue resulting from the reallocation; 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 482.180 is hereby amended to read as follows:

1-2    482.180  1.  The motor vehicle fund is hereby created as an agency

1-3  fund. Except as otherwise provided in subsection 4 or by a specific statute,

1-4  all money received or collected by the department must be deposited in the

1-5  state treasury for credit to the motor vehicle fund.

1-6    2.  The interest and income on the money in the motor vehicle fund,

1-7  after deducting any applicable charges, must be credited to the state

1-8  highway fund.

1-9    3.  Any check accepted by the department in payment of vehicle

1-10  privilege tax or any other fee required to be collected pursuant to this

1-11  chapter must, if it is dishonored upon presentation for payment, be charged

1-12  back against the motor vehicle fund or the county to which the payment

1-13  was credited, in the proper proportion.

1-14    4.  [All money] Money received or collected by the department for the

1-15  basic vehicle privilege tax for vehicles not subject to the provisions of

1-16  chapter 706 of NRS and not engaged in interstate or intercounty

1-17  operation, that was collected for:

2-1    (a) A county whose population is 40,000 or more:

2-2       (1) One-half must be deposited in the local government tax

2-3  distribution account, created by NRS 360.660, for credit to that county;

2-4  and

2-5       (2) One-half must be deposited in the state distributive school

2-6  account.

2-7    (b) A county whose population is less than 40,000, must be deposited in

2-8  the local government tax distribution account, created by NRS 360.660, for

2-9  credit to [the appropriate county pursuant to subsection 6.] that county.

2-10    5.  Money for the administration of the provisions of this chapter must

2-11  be provided by direct legislative appropriation from the state highway

2-12  fund, upon the presentation of budgets in the manner required by law. Out

2-13  of the appropriation, the department shall pay every item of expense.

2-14    6.  The privilege tax collected on vehicles subject to the provisions of

2-15  chapter 706 of NRS and engaged in interstate or intercounty operation

2-16  must be distributed among the counties and the state distributive school

2-17  account in the following percentages:

 

2-18  ................ Carson City  [1.07] .535 percent..........    Lyon......... 2.90 percent

2-19  .................... Churchill  5.21 percent.....................    Mineral..... 2.40 percent

2-20  .......................... Clark  [22.54] 11.27 percent......    Nye.......... 4.09 percent

2-21  ..................... Douglas  [2.52] 1.26 percent.........    Pershing.... 7.00 percent

2-22  ........................... Elko  [13.31] 6.655 percent.....    Storey......   .19 percent

2-23  .................. Esmeralda  2.52 percent.....................    Washoe[12.24] 6.12 percent

2-24  ....................... Eureka  3.10 percent.....................    White Pine5.66 percent

2-25  ................... Humboldt  8.25 percent..............    State distributive school

2-26  ....................... Lander  3.88 percent.....................                           account  25.84 percent

2-27  ...................... Lincoln  3.12 percent.....................

 

2-28  The distributions made to counties must be allocated among local

2-29  governments within the respective counties pursuant to the provisions of

2-30  NRS 482.181.

2-31    7.  The department shall withhold 6 percent from the amount of

2-32  privilege tax collected by the department as a commission. From the

2-33  amount of privilege tax collected by a county assessor, the state controller

2-34  shall credit 1 percent to the department as a commission and remit 5

2-35  percent to the county for credit to its general fund as commission for the

2-36  services of the county assessor.

2-37    8.  When the requirements of this section and NRS 482.181 have been

2-38  met, and when directed by the department, the state controller shall transfer

2-39  monthly to the state highway fund any balance in the motor vehicle fund.

2-40    9.  If a statute requires that any money in the motor vehicle fund be

2-41  transferred to another fund or account, the department shall direct the

2-42  controller to transfer the money in accordance with the statute.

2-43    Sec. 2.  NRS 482.180 is hereby amended to read as follows:

2-44    482.180  1.  The motor vehicle fund is hereby created as an agency

2-45  fund. Except as otherwise provided in subsection 4 or by a specific statute,

2-46  all money received or collected by the department must be deposited in the

2-47  state treasury for credit to the motor vehicle fund.

3-1    2.  The interest and income on the money in the motor vehicle fund,

3-2  after deducting any applicable charges, must be credited to the state

3-3  highway fund.

3-4    3.  Any check accepted by the department in payment of vehicle

3-5  privilege tax or any other fee required to be collected pursuant to this

3-6  chapter must, if it is dishonored upon presentation for payment, be charged

3-7  back against the motor vehicle fund or the county to which the payment

3-8  was credited, in the proper proportion.

3-9    4.  [All money] Money received or collected by the department for the

3-10  basic vehicle privilege tax for vehicles not subject to the provisions of

3-11  chapter 706 of NRS and not engaged in interstate or intercounty

3-12  operation, that was collected for:

3-13    (a) A county whose population is 40,000 or more, must be deposited in

3-14  the state distributive school account.

3-15    (b) A county whose population is less than 40,000, must be deposited in

3-16  the local government tax distribution account, created by NRS 360.660, for

3-17  credit to [the appropriate county pursuant to subsection 6.] that county.

3-18    5.  Money for the administration of the provisions of this chapter must

3-19  be provided by direct legislative appropriation from the state highway

3-20  fund, upon the presentation of budgets in the manner required by law. Out

3-21  of the appropriation, the department shall pay every item of expense.

3-22    6.  The privilege tax collected on vehicles subject to the provisions of

3-23  chapter 706 of NRS and engaged in interstate or intercounty operation

3-24  must be distributed among the counties and the state distributive school

3-25  account in the following percentages:

 

3-26  .............. [Carson City  1.07 percent]...................    Lyon......... 2.90 percent

3-27  .................... Churchill  5.21 percent.....................    Mineral..... 2.40 percent

3-28  ........................ [Clark  22.54 percent]..................    Nye.......... 4.09 percent

3-29  .................... [Douglas  2.52 percent]...................    Pershing.... 7.00 percent

3-30  .......................... [Elko  13.31 percent]..................    Storey......   .19 percent

3-31  .................. Esmeralda  2.52 percent.....................    Washoe.. 12.24 percent

3-32  ....................... Eureka  3.10 percent.....................    White Pine5.66 percent

3-33  ................... Humboldt  8.25 percent.....................    State distributive school

3-34  ....................... Lander  3.88 percent.....................                           account  51.68 percent

3-35  ...................... Lincoln          3.12 percent

 

3-36  The distributions made to counties must be allocated among local

3-37  governments within the respective counties pursuant to the provisions of

3-38  NRS 482.181.

3-39    7.  The department shall withhold 6 percent from the amount of

3-40  privilege tax collected by the department as a commission. From the

3-41  amount of privilege tax collected by a county assessor, the state controller

3-42  shall credit 1 percent to the department as a commission and remit 5

3-43  percent to the county for credit to its general fund as commission for the

3-44  services of the county assessor.

3-45    8.  When the requirements of this section and NRS 482.181 have been

3-46  met, and when directed by the department, the state controller shall transfer

3-47  monthly to the state highway fund any balance in the motor vehicle fund.

4-1    9.  If a statute requires that any money in the motor vehicle fund be

4-2  transferred to another fund or account, the department shall direct the

4-3  controller to transfer the money in accordance with the statute.

4-4    Sec. 3.  Chapter 354 of NRS is hereby amended by adding thereto a

4-5  new section to read as follows:

4-6    1.  In addition to the allowed revenue from taxes ad valorem

4-7  determined pursuant to NRS 354.59811, the board of county

4-8  commissioners of each county whose population is 40,000 or more, may

4-9  levy a tax ad valorem on all taxable property in the county at a rate not to

4-10  exceed the rate necessary to produce an amount of revenue equal to the

4-11  revenue that the county estimates would have been received from the

4-12  basic vehicle privilege tax by the county, and all local governments,

4-13  special districts and enterprise districts within the county, if the county

4-14  had been eligible to receive a portion of the revenue from the basic

4-15  vehicle privilege tax pursuant to NRS 482.180 for the fiscal year for

4-16  which the allowed revenue from taxes ad valorem is being calculated. If

4-17  a local government, including the county, determines that an additional

4-18  levy is not required to make up the revenue, the portion of the levy

4-19  allocated to that entity must not be levied.

4-20    2.  The estimate must be calculated by cumulatively increasing the

4-21  amount of revenue that the county and each of the local governments

4-22  and districts within the county received for fiscal year 2000-2001

4-23  pursuant to NRS 482.180 by 6 percent for each year between fiscal year

4-24  2000-2001 and the fiscal year for which the tax will be levied pursuant to

4-25  subsection 1.

4-26    3.  The county shall distribute the revenue from any tax levied

4-27  pursuant to subsection 1 to the local governments, special districts and

4-28  enterprise districts within the county and the county treasury in the same

4-29  proportion that the revenue from the basic vehicle privilege tax was

4-30  distributed to those entities for fiscal year 2000-2001, except that an

4-31  entity that has determined that an additional levy is not required

4-32  pursuant to subsection 1 must not receive a share of the distribution.

4-33    4.  A school district that receives a distribution of money pursuant to

4-34  subsection 3 shall deposit a portion of the distribution equal to the

4-35  amount of the basic vehicle privilege tax whose allocation to the school

4-36  district pursuant to NRS 482.180 for fiscal year 2000-2001 was based on

4-37  the amount of the property tax levy attributable to its debt service in the

4-38  county treasury to the credit of the fund for capital projects established

4-39  under subsection 1 of NRS 387.328 or the school district’s debt service

4-40  fund.

4-41    Sec. 4.  NRS 354.476 is hereby amended to read as follows:

4-42    354.476  As used in NRS 354.470 to 354.626, inclusive, and section 3

4-43  of this act, unless the context otherwise requires, the words and terms

4-44  defined in NRS 354.478 to 354.580, inclusive, have the meanings ascribed

4-45  to them in those sections.

4-46    Sec. 5.  Chapter 387 of NRS is hereby amended by adding thereto a

4-47  new section to read as follows:

4-48    1.  Money deposited in the state distributive school account pursuant

4-49  to the provisions of NRS 482.180 must be accounted for separately and

5-1  distributed monthly among the several county school districts by the

5-2  superintendent of public instruction in the same proportion that the total

5-3  salaries paid to all educational personnel in each county bears to the

5-4  total salaries paid to all educational personnel in all counties.

5-5    2.  On or before June 1 of each year, the superintendent of public

5-6  instruction shall determine the estimated percentage of increase in the

5-7  salaries of all educational personnel in all the counties that could be

5-8  fully funded by the money he estimates will be distributed during the

5-9  fiscal year beginning on the next July 1. The estimated percentage of

5-10  increase may not exceed 2 percent per year.

5-11    3.  Each school district shall use the money distributed pursuant to

5-12  subsection 1 to increase the salaries of the educational personnel in the

5-13  district by the percentage of increase determined by the superintendent of

5-14  public instruction pursuant to subsection 2 for the year for which the

5-15  percentage was established. Each school district may use any revenue not

5-16  necessary to fund the salary increases for expenses relating to the

5-17  recruitment of educational personnel.

5-18    Sec. 6.  NRS 387.124 is hereby amended to read as follows:

5-19    387.124  Except as otherwise provided in NRS 387.528:

5-20    1.  On or before August 1, November 1, February 1 and May 1 of each

5-21  year, the superintendent of public instruction shall, except as otherwise

5-22  provided in subsections 2 and 3[,] and section 5 of this act, apportion the

5-23  state distributive school account in the state general fund among the several

5-24  county school districts and charter schools in amounts approximating one-

5-25  fourth of their respective yearly apportionments less any amount set aside

5-26  as a reserve. The apportionment to a school district, computed on a yearly

5-27  basis, equals the difference between the basic support and the local funds

5-28  available pursuant to NRS 387.1235, minus all the funds attributable to

5-29  pupils who reside in the county but attend a charter school. No

5-30  apportionment may be made to a school district if the amount of the local

5-31  funds exceeds the amount of basic support. The apportionment to a charter

5-32  school, computed on a yearly basis, is equal to the sum of the basic support

5-33  per pupil in the county in which the pupil resides plus the amount of local

5-34  funds available per pupil pursuant to NRS 387.1235 and all other funds

5-35  available for public schools in the county in which the pupil resides. If the

5-36  apportionment per pupil to a charter school is more than the amount to be

5-37  apportioned to the school district in which a pupil who is enrolled in the

5-38  charter school resides, the school district in which the pupil resides shall

5-39  pay the difference directly to the charter school.

5-40    2.  The governing body of a charter school may submit a written

5-41  request to the superintendent of public instruction to receive, in the first

5-42  year of operation of the charter school, an apportionment 30 days before

5-43  the apportionment is required to be made pursuant to subsection 1. Upon

5-44  receipt of such a request, the superintendent of public instruction may

5-45  make the apportionment 30 days before the apportionment is required to be

5-46  made. A charter school may receive all four apportionments in advance in

5-47  its first year of operation.

5-48    3.  If the state controller finds that such an action is needed to maintain

5-49  the balance in the state general fund at a level sufficient to pay the other

6-1  appropriations from it, he may pay out the apportionments monthly, each

6-2  approximately one-twelfth of the yearly apportionment less any amount set

6-3  aside as a reserve. If such action is needed, the state controller shall submit

6-4  a report to the department of administration and the fiscal analysis division

6-5  of the legislative counsel bureau documenting reasons for the action.

6-6    Sec. 7.  NRS 387.175 is hereby amended to read as follows:

6-7    387.175  The county school district fund is composed of:

6-8    1.  All local taxes for the maintenance and operation of public schools.

6-9    2.  All money received from the Federal Government for the

6-10  maintenance and operation of public schools.

6-11    3.  Apportionments by this state as provided in NRS 387.124.

6-12    4.  Distributions made pursuant to section 5 of this act.

6-13    5.  Any other receipts, including gifts, for the operation and

6-14  maintenance of the public schools in the county school district.

6-15    Sec. 8.  1.  This section and sections 1, 3, 4, 6 and 7 of this act

6-16  become effective on July 1, 2001.

6-17    2.  Section 5 of this act becomes effective upon passage and approval

6-18  for the purpose of requiring the superintendent of public instruction to

6-19  determine the estimated percentage of increase in salaries on or before
June 1, 2001, and on July 1, 2001, for all other purposes.

6-20    3.  Section 1 of this act expires by limitation on June 30, 2002.

6-21    4.  Section 2 of this act becomes effective on July 1, 2002.

 

6-22  H