**                                      

 

Assembly Bill No. 468–Assemblymen Beers, Tiffany, Berman, Brown, Carpenter, Collins, Hettrick, Humke, Lee, Marvel, Oceguera, Ohrenschall and Price

 

March 19, 2001

____________

 

Referred to Committee on Natural Resources, Agriculture, and Mining

 

SUMMARY—Revises provisions governing imposition of tax on certain transfers of water. (BDR 48‑1273)

 

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 water; requiring a county of origin to obtain the prior approval of the state engineer before imposing a tax on certain transfers of water; requiring the state engineer to make certain determinations concerning those transfers; prohibiting the imposition of the tax upon certain water; 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 533.438 is hereby amended to read as follows:

1-2    533.438  1.  [If] Except as otherwise provided in subsection 4, if an

1-3  application [or applications] to appropriate ground water would result in

1-4  the transfer to and beneficial use of water [to be used] in a county in this

1-5  state other than the county in which the water is to be appropriated or in

1-6  another state, the county of origin may impose a tax of $6 per acre-foot per

1-7  year on the transfer.

1-8    2.  A county of origin shall not impose a tax pursuant to subsection 1

1-9  without the prior approval of the state engineer. The county of origin

1-10  shall notify the state engineer in writing of its intent to impose the tax. As

1-11  soon as practicable after receiving the notice, the state engineer shall

1-12  review the application specified in subsection 1 to determine:

1-13    (a) Whether the appropriation of water proposed in the application

1-14  will result in a transfer to and use of the water in a county in this state

1-15  other than the county of origin or in another state; and

1-16    (b) The amount of water, if any, that will be subject to the proposed

1-17  tax because of that transfer and use.

 

2-1    3.  Within 10 days after reviewing the application, the state engineer

2-2  shall send written notice to the county of origin that includes the results

2-3  of his review. If the state engineer determines that the appropriation of

2-4  water will result in a transfer to and use of water in a county in this state

2-5  other than the county of origin or in another state, the state engineer

2-6  shall include in the notice the amount of water that will be subject to the

2-7  proposed tax. The county may, upon such a determination, impose the

2-8  tax on the transfer.

2-9    4.  The provisions of this section do not apply to water that is

2-10  appropriated and beneficially used in the county of origin, and thereafter

2-11  because of that appropriation or use, is discharged or migrates into a

2-12  county in this state other than the county of origin or into another state.

2-13    5.  All money collected from [this] a tax imposed pursuant to this

2-14  section must be deposited in a trust fund for the county. The principal and

2-15  interest of the trust fund may be used by the county only for the purposes

2-16  of economic development, health care and education.

2-17    [3.] 6. For the purposes of this section, if a basin includes land lying in

2-18  more than one county each county any part of whose land is included is a

2-19  county of origin to the extent of the proportionate amount of water

2-20  transferred from it. The state engineer shall determine the respective

2-21  proportions.

2-22    [4.] 7.  As used in this section:

2-23    (a) A “basin” is one designated by the state engineer for the purposes of

2-24  chapter 534 of NRS.

2-25    (b) “Origin” means the place where water is taken from underground.

 

2-26  H