(REPRINTED WITH ADOPTED AMENDMENTS)

 

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

 

March 19, 2001

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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.

 

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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 an application or applications] Except as otherwise

1-3  provided in subsection 4, if an appropriation of ground water pursuant to

1-4  a permit to appropriate ground water [would result] results in the transfer

1-5  to and beneficial use of water [to be used] in a county in this state other

1-6  than the county in which the water is [to be] appropriated or in another

1-7  state, the county of origin may impose a tax of $6 per acre-foot per year on

1-8  the transfer.

1-9    2.  A county of origin shall not impose a tax pursuant to subsection 1

1-10  without the prior approval of the state engineer. The county of origin

1-11  shall notify the state engineer in writing of its intent to impose the tax.

1-12  The state engineer shall review the notice of intent to impose the tax to

1-13  determine:

1-14    (a) Whether the appropriation of ground water pursuant to the permit

1-15  specified in subsection 1 results in a transfer to and beneficial use of

1-16  water in a county in this state other than the county of origin or in

1-17  another state; and

1-18    (b) The amount of water, if any, that is:

2-1       (1) Subject to the proposed tax because of that transfer and

2-2  beneficial use; or

2-3       (2) Not subject to the proposed tax pursuant to subsection 4.

2-4    3.  Within 30 days after reviewing the notice of intent to impose the

2-5  tax, the state engineer shall send a written notice to the county of origin

2-6  that includes the results of his review. If the state engineer determines

2-7  that the appropriation of ground water pursuant to the permit results in a

2-8  transfer to and beneficial use of water in a county in this state other than

2-9  the county of origin or in another state, the state engineer shall include

2-10  in the notice the amount of water that is subject to the proposed tax. The

2-11  county may, upon such a determination, impose the tax on the transfer.

2-12    4.  A tax may not be imposed pursuant to this section on water that is

2-13  appropriated and beneficially used pursuant to a permit to appropriate

2-14  ground water which is issued for a point of diversion and a place of

2-15  beneficial use in the county of origin and which, after the water is

2-16  diverted and beneficially used, is discharged or migrates into a county in

2-17  this state other than the county of origin or into another state.

2-18    5.  All money collected from [this] a tax imposed pursuant to this

2-19  section must be deposited in a trust fund for the county. The principal and

2-20  interest of the trust fund may be used by the county only for the purposes

2-21  of economic development, health care and education.

2-22    [3.] 6. For the purposes of this section, if a basin includes land lying in

2-23  more than one county each county any part of whose land is included is a

2-24  county of origin to the extent of the proportionate amount of water

2-25  transferred from it. The state engineer shall determine the respective

2-26  proportions.

2-27    [4.] 7.  As used in this section:

2-28    (a) A “basin” is one designated by the state engineer for the purposes of

2-29  chapter 534 of NRS.

2-30    (b) “Origin” means the place where water is taken from underground.

 

2-31  H