(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 457–Assemblymen Beers
and Goldwater

 

March 19, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Temporarily revises provisions governing distribution of portion of basic governmental services tax revenue to increase amount allocated for educational purposes. (BDR S‑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; temporarily revising the provisions governing the distribution of a portion of the basic governmental services tax revenue to increase the amount allocated for educational purposes; 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; making an appropriation; 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. The Legislature hereby finds and declares that a general

1-2  law cannot be made applicable for the provisions of this act because of the

1-3  economic and geographic diversity of the local governments of this state,

1-4  the unusual growth patterns in certain of those local governments and the

1-5  special conditions experienced in certain counties related to the need to

1-6  provide basic services.

1-7    Sec. 2.  Notwithstanding the provisions of chapter 482 of NRS to the

1-8  contrary:

1-9    1.  For the fiscal year beginning on July 1, 2001, one-half of all money

1-10  received or collected by the Department of Motor Vehicles and Public

1-11  Safety for the basic governmental services tax for:

1-12  (a) Vehicles not subject to the provisions of chapter 706 of NRS and not

1-13  engaged in interstate or intercounty operation, for Clark, Douglas and

1-14  Washoe counties and Carson City must be deposited in the state

1-15  distributive school account after the portion of those tax proceeds required

1-16  by NRS 482.181 has been distributed to the school districts in those

1-17  counties.

2-1    (b) Vehicles subject to the provisions of chapter 706 of NRS and

2-2  engaged in interstate or intercounty operation that would otherwise be

2-3  distributed to Clark, Douglas and Washoe counties and Carson City

2-4  pursuant to subsection 6 of NRS 482.180 must be deposited in the state

2-5  distributive school account after the portion of those tax proceeds required

2-6  by NRS 482.181 has been distributed to the school districts in those

2-7  counties.

2-8    2.  For the fiscal year beginning on July 1, 2002, all money received or

2-9  collected by the Department of Motor Vehicles and Public Safety for the

2-10  basic governmental services tax for:

2-11  (a) Vehicles not subject to the provisions of chapter 706 of NRS and not

2-12  engaged in interstate or intercounty operation, for Clark, Douglas and

2-13  Washoe counties and Carson City must be deposited in the state

2-14  distributive school account after the portion of those tax proceeds required

2-15  by NRS 482.181 has been distributed to the school districts in those

2-16  counties.

2-17  (b) Vehicles subject to the provisions of chapter 706 of NRS and

2-18  engaged in interstate or intercounty operation that would otherwise be

2-19  distributed to Clark, Douglas and Washoe counties and Carson City

2-20  pursuant to subsection 6 of NRS 482.180 must be deposited in the state

2-21  distributive school account after the portion of those tax proceeds required

2-22  by NRS 482.181 has been distributed to the school districts in those

2-23  counties.

2-24  Sec. 3.  Notwithstanding the provisions of chapter 354 of NRS to the

2-25  contrary:

2-26  1.  In addition to the allowed revenue from taxes ad valorem

2-27  determined pursuant to NRS 354.59811, each local government whose

2-28  revenue from the basic governmental services tax is reduced as a direct

2-29  result of the provisions of section 2 of this act may levy a property tax on

2-30  all taxable property within the boundaries of the local government, for the

2-31  fiscal year in which the revenue will be reduced, at a rate not to exceed the

2-32  rate necessary to produce an amount of revenue equal to the revenue that

2-33  the local government estimates would have been received from the basic

2-34  governmental services tax in that fiscal year but for the provisions of

2-35  section 2 of this act.

2-36  2.  The revenue received by a local government from the property tax

2-37  levied pursuant to subsection 1 must be deposited in the general fund of the

2-38  local government.

2-39  Sec. 4.  Notwithstanding the provisions of NRS 377.080 to the

2-40  contrary, each local government whose revenue from the basic

2-41  governmental services tax is reduced as a direct result of the provisions of

2-42  section 2 of this act shall, if any portion of that revenue is pledged for

2-43  payment of a general obligation bond pursuant to NRS 377.080, pledge an

2-44  additional percentage of the revenue from NRS 360.680, 360.690 and

2-45  360.700 to be substituted for the pledge of revenue that is redistributed

2-46  pursuant to section 2 of this act in an amount necessary to avoid an

2-47  impairment of the underlying bond contract pursuant to which the revenue

2-48  was pledged.  To carry out the provisions of this subsection, the percentage

2-49  of revenue pledged may exceed the 15 percent allowed by NRS 377.080.

3-1    Sec. 5.  1.  Money deposited in the state distributive school account

3-2  pursuant to section 2 of this act must be accounted for separately and

3-3  distributed monthly among the several county school districts by the

3-4  superintendent of public instruction in the same proportion that the total

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

3-6  salaries paid to all educational personnel in all counties. The money must

3-7  be deposited in the county school district fund.

3-8    2.  On or before June 1, 2001, and June 1, 2002, the superintendent of

3-9  public instruction shall determine the estimated percentage of increase in

3-10  the salaries of all educational personnel in all the counties that could be

3-11  fully funded by the money he estimates will be distributed during the fiscal

3-12  year beginning on the next July 1. The estimated percentage of increase

3-13  may not exceed 2 percent per year.

3-14  3.  Each school district shall use the money distributed pursuant to

3-15  subsection 1 to increase the salaries of the educational personnel in the

3-16  district by the percentage of increase determined by the superintendent of

3-17  public instruction pursuant to subsection 2 for the year for which the

3-18  percentage was established. Each school district may use any revenue not

3-19  necessary to fund the salary increases for expenses relating to the

3-20  recruitment of educational personnel.

3-21  Sec. 6.  1.  There is hereby appropriated from the state general fund

3-22  to the state distributive school account the sum of $1,000,000 to be

3-23  distributed pursuant to subsection 1 of section 5 of this act as necessary to

3-24  ensure that salaries paid to educational personnel pursuant to subsection 3

3-25  of section 5 of this act are not interrupted during any period in which the

3-26  revenue from the basic governmental services tax is less than estimated by

3-27  the superintendent of public instruction pursuant to subsection 2 of section

3-28  5 of this act.

3-29  2.  Any remaining balance of the appropriation made by subsection 1

3-30  must not be committed for expenditure after June 30, 2003, and reverts to

3-31  the state general fund as soon as all payments of money committed have

3-32  been made.

3-33  Sec. 7.  This act becomes effective upon passage and approval and

3-34  expires by limitation on July 1, 2003.

 

3-35  H