(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 501–Committee on Ways and Means

 

(On Behalf of State Planning Commission for the
New Construction, Design, Maintenance and
Repair of School Facilities)

 

March 21, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Makes various changes relating to taxes imposed for support of school districts. (BDR 34‑1004)

 

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 education; authorizing the board of trustees of certain school districts to submit an advisory question to the voters in the district to determine whether the board of county commissioners should impose certain taxes for the support of school districts; authorizing the board of county commissioners in certain counties to levy certain taxes for the support of school districts; making certain changes to the method of calculating the amount of basic governmental services tax to be distributed to a county school district; 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 387.331 is hereby amended to read as follows:

1-2    387.331  1.  The tax on residential construction authorized by this

1-3  section is a specified amount which must be the same for each:

1-4    (a) Lot for a mobile home;

1-5    (b) Residential dwelling unit; and

1-6    (c) Suite in an apartment house,

1-7  imposed on the privilege of constructing apartment houses and residential

1-8  dwelling units and developing lots for mobile homes.

1-9    2.  The board of trustees of any school district whose population is less

1-10  than 40,000 may request that the board of county commissioners of the

1-11  county in which the school district is located impose a tax on residential

1-12  construction in the school district to construct, remodel and make additions

1-13  to school buildings. Whenever the board of trustees takes that action it

2-1  shall notify the board of county commissioners and shall specify the areas

2-2  of the county to be served by the buildings to be erected or enlarged.

2-3    3.  If the board of county commissioners decides that the tax should be

2-4  imposed, it shall notify the Nevada tax commission. If the commission

2-5  approves, the board of county commissioners may then impose the tax,

2-6  whose specified amount must not exceed $1,600.

2-7    4.  The board shall collect the tax so imposed, in the areas of the county

2-8  to which it applies, and may require that administrative costs, not to exceed

2-9  1 percent, be paid from the amount collected.

2-10  5.  The money collected must be deposited with the county treasurer in

2-11  the school district’s fund for capital projects to be held and expended in the

2-12  same manner as other money deposited in that fund.

2-13  6.  The board of trustees of a school district in a county whose

2-14  population is less than 40,000 may, at any general election or general

2-15  city election, submit an advisory question to the registered voters within

2-16  the county in the manner prescribed in NRS 293.482:

2-17  (a) Asking whether the board of county commissioners should enact a

2-18  tax pursuant to this section; and

2-19  (b) Setting forth the rate of tax that the board of county

2-20  commissioners, if approved, should impose.

2-21  Sec. 2.  Chapter 375 of NRS is hereby amended by adding thereto a

2-22  new section to read as follows:

2-23  1.  In addition to all other taxes imposed on transfers of real property,

2-24  for the sole purpose of providing support to school districts, a board of

2-25  county commissioners in a county whose population is less than 100,000

2-26  may, by ordinance, impose a tax at a rate of up to 60 cents for each $500

2-27  of value or fraction thereof, on each deed by which any lands, tenements

2-28  or other realty is granted, assigned, transferred or otherwise conveyed to,

2-29  or vested in, another person, if the consideration or value of the interest

2-30  or property conveyed, exclusive of the value of any lien or encumbrance

2-31  remaining on the interest or property at the time of the sale, exceeds

2-32  $100.

2-33  2.  The amount of tax must be computed on the basis of the value of

2-34  the transferred real property as declared pursuant to NRS 375.060.

2-35  3.  The board of trustees of a school district in a county whose

2-36  population is less than 100,000 may, at any general election or general

2-37  city election, submit an advisory question to the registered voters within

2-38  the county in the manner prescribed in NRS 293.482:

2-39  (a) Asking whether the board of county commissioners should enact a

2-40  tax pursuant to subsection 1; and

2-41  (b) Setting forth the rate of tax that the board of county

2-42  commissioners, if approved, should impose.

2-43  Sec. 3.  NRS 375.030 is hereby amended to read as follows:

2-44  375.030  1.  If any deed evidencing a transfer of title subject to the tax

2-45  imposed by NRS 375.020 or section 2 of this act, and, if applicable, NRS

2-46  375.025, is offered for recordation, the county recorder shall compute the

2-47  amount of the tax due and shall collect that amount before acceptance of

2-48  the deed for recordation.

3-1    2.  The buyer and seller are jointly and severally liable for the payment

3-2  of the taxes imposed by NRS 375.020 and 375.025 and section 2 of this

3-3  act and any penalties and interest imposed pursuant to subsection 3. The

3-4  escrow holder is not liable for the payment of the taxes imposed by NRS

3-5  375.020 and 375.025 and section 2 of this act or any penalties or interest

3-6  imposed pursuant to subsection 3.

3-7    3.  If after recordation of the deed, the county recorder disallows an

3-8  exemption that was claimed at the time the deed was recorded or through

3-9  audit or otherwise determines that an additional amount of tax is due, the

3-10  county recorder shall promptly notify the buyer or seller, or both, of the

3-11  additional amount of tax due. In addition to the additional amount

3-12  determined to be due, the county recorder shall impose a penalty of 10

3-13  percent of the additional amount due in addition to interest at the rate of

3-14  1 1/2 percent per month, or portion thereof, of the additional amount due

3-15  calculated from the date of the original recordation of the deed on which

3-16  the additional amount is due through the date on which the additional

3-17  amount due, penalty and interest are paid to the county recorder.

3-18  4.  This section does not prohibit a buyer and seller from agreeing by

3-19  contract or otherwise that one party or the other will be responsible for the

3-20  payment of the tax due pursuant to this chapter, but such an agreement

3-21  does not affect the ability of the county recorder to collect the tax and any

3-22  penalties and interest from either the buyer or the seller.

3-23  Sec. 4.  NRS 375.070 is hereby amended to read as follows:

3-24  375.070  1.  The county recorder shall transmit the proceeds of the

3-25  real property transfer tax at the end of each quarter in the following

3-26  manner:

3-27  (a) An amount equal to that portion of the proceeds which is equivalent

3-28  to 10 cents for each $500 of value or fraction thereof must be transmitted to

3-29  the state treasurer who shall deposit that amount in the account for low-

3-30  income housing created pursuant to NRS 319.500.

3-31  (b) In a county whose population is more than 400,000, an amount

3-32  equal to that portion of the proceeds which is equivalent to 60 cents for

3-33  each $500 of value or fraction thereof must be transmitted to the county

3-34  treasurer for deposit in the county school district’s fund for capital projects

3-35  established pursuant to NRS 387.328, to be held and expended in the same

3-36  manner as other money deposited in that fund.

3-37  (c) If a board of county commissioners imposes a tax pursuant to

3-38  section 2 of this act, all proceeds of such tax must be transmitted to the

3-39  county treasurer for deposit in the county school district’s fund for

3-40  capital projects established pursuant to NRS 387.328, to be held and

3-41  expended in the same manner as other money deposited in that fund.

3-42  (d) The remaining proceeds must be transmitted to the state treasurer for

3-43  deposit in the local government tax distribution account created by NRS

3-44  360.660 for credit to the respective accounts of Carson City and each

3-45  county.

3-46  2.  In addition to any other authorized use of the proceeds it receives

3-47  pursuant to subsection 1, a county or city may use the proceeds to pay

3-48  expenses related to or incurred for the development of affordable housing

3-49  for families whose income does not exceed 80 percent of the median

4-1  income for families residing in the same county, as that percentage is

4-2  defined by the United States Department of Housing and Urban

4-3  Development. A county or city that uses the proceeds in that manner must

4-4  give priority to the development of affordable housing for persons who are

4-5  disabled or elderly.

4-6    3.  The expenses authorized by subsection 2 include, but are not limited

4-7  to:

4-8    (a) The costs to acquire land and developmental rights;

4-9    (b) Related predevelopment expenses;

4-10  (c) The costs to develop the land, including the payment of related

4-11  rebates;

4-12  (d) Contributions toward down payments made for the purchase of

4-13  affordable housing; and

4-14  (e) The creation of related trust funds.

4-15  Sec. 5.  NRS 375.090 is hereby amended to read as follows:

4-16  375.090  The tax imposed by NRS 375.020 and 375.025 and section 2

4-17  of this act does not apply to:

4-18  1.  Any transaction wherein an interest in real property is encumbered

4-19  for the purposes of securing a debt.

4-20  2.  A transfer of title to or from the United States, any territory or state

4-21  or any agency, department, instrumentality or political subdivision thereof.

4-22  3.  A transfer of title recognizing the true status of ownership of the real

4-23  property.

4-24  4.  A transfer of title without consideration from one joint tenant or

4-25  tenant in common to one or more remaining joint tenants or tenants in

4-26  common.

4-27  5.  A transfer of title to community property without consideration

4-28  when held in the name of one spouse to both spouses as joint tenants or

4-29  tenants in common, or as community property.

4-30  6.  A transfer of title between spouses, including gifts.

4-31  7.  A transfer of title between spouses to effect a property settlement

4-32  agreement or between former spouses in compliance with a decree of

4-33  divorce.

4-34  8.  A transfer of title to or from a trust, if the transfer is made without

4-35  consideration.

4-36  9.  Transfers, assignments or conveyances of unpatented mines or

4-37  mining claims.

4-38  10.  A transfer, assignment or other conveyance of real property to a

4-39  corporation or other business organization if the person conveying the

4-40  property owns 100 percent of the corporation or organization to which the

4-41  conveyance is made.

4-42  11.  A transfer, assignment or other conveyance of real property if the

4-43  owner of the property is related to the person to whom it is conveyed

4-44  within the first degree of consanguinity.

4-45  12.  The making, delivery or filing of conveyances of real property to

4-46  make effective any plan of reorganization or adjustment:

4-47  (a) Confirmed under the Bankruptcy Act, as amended, Title 11 of

4-48  U.S.C.;

5-1    (b) Approved in an equity receivership proceeding involving a railroad

5-2  as defined in the Bankruptcy Act;

5-3    (c) Approved in an equity receivership proceeding involving a

5-4  corporation, as defined in the Bankruptcy Act; or

5-5    (d) Whereby a mere change in identity, form or place of organization is

5-6  effected, such as a transfer between a corporation and its parent

5-7  corporation, a subsidiary or an affiliated corporation,

5-8  if the making, delivery or filing of instruments of transfer or conveyance

5-9  occurs within 5 years after the date of the confirmation, approval or

5-10  change.

5-11  13.  The making or delivery of conveyances of real property to make

5-12  effective any order of the Securities and Exchange Commission if:

5-13  (a) The order of the Securities and Exchange Commission in obedience

5-14  to which the transfer or conveyance is made recites that the transfer or

5-15  conveyance is necessary or appropriate to effectuate the provisions

5-16  of section 11 of the Public Utility Holding Company Act of 1935, 15

5-17  U.S.C. § 79k;

5-18  (b) The order specifies and itemizes the property which is ordered to be

5-19  transferred or conveyed; and

5-20  (c) The transfer or conveyance is made in obedience to the order.

5-21  14.  A transfer to or from an educational foundation. As used in this

5-22  subsection, “educational foundation” has the meaning ascribed to it in

5-23  subsection 3 of NRS 388.750.

5-24  15.  A transfer to or from a university foundation. As used in this

5-25  subsection, “university foundation” has the meaning ascribed to it in

5-26  subsection 3 of NRS 396.405.

5-27  16.  A transfer, assignment or other conveyance of real property to a

5-28  corporation sole from another corporation sole. As used in this subsection,

5-29  “corporation sole” means a corporation which is organized pursuant to the

5-30  provisions of chapter 84 of NRS.

5-31  Sec. 6.  Chapter 377B of NRS is hereby amended by adding thereto a

5-32  new section to read as follows:

5-33  The board of trustees of a school district in a county whose population

5-34  is less than 100,000 may, at any general election or general city election,

5-35  submit an advisory question to the registered voters within the county in

5-36  the manner prescribed in NRS 293.482:

5-37  (1) Asking whether the board of county commissioners should enact a

5-38  tax for the construction or renovation of facilities for schools; and

5-39  (2) Setting forth the rate of tax that the board of county

5-40  commissioners, if approved, should impose.

5-41  Sec. 7.   NRS 482.181 is hereby amended to read as follows:

5-42  482.181  1.  Except as otherwise provided in subsection 4, the

5-43  department shall certify monthly to the state board of examiners the

5-44  amount of the basic and supplemental governmental services taxes

5-45  collected for each county by the department and its agents during the

5-46  preceding month, and that money must be distributed monthly as provided

5-47  in this section.

6-1    2.  Any supplemental governmental servicestax collected for a county

6-2  must be distributed only to the county, to be used as provided in NRS

6-3  371.045 and 371.047.

6-4    3.  The distribution of the basic governmental servicestax within a

6-5  county must be made to local governments, special districts and enterprise

6-6  districts pursuant to the provisions of NRS 360.680 and 360.690. The

6-7  distribution of the basic governmental servicestax must be made to the

6-8  county school district within the county before the distribution of the basic

6-9  governmental servicestax pursuant to the provisions of NRS 360.680 and

6-10  360.690 and in the same ratio as all property taxes were levied in the

6-11  county in the previous fiscal year, but the State of Nevada is not entitled to

6-12  share in that distribution. For the purpose of calculating the amount of the

6-13  basic governmental servicestax to be distributed to the county school

6-14  district, the taxes levied by each local government, special district and

6-15  enterprise district are the product of its certified valuation, determined

6-16  pursuant to subsection 2 of NRS 361.405, and its tax rate, established

6-17  pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980,

6-18  except that the tax rate for school districts, including the rate attributable to

6-19  a district’s debt service, is the rate established pursuant to NRS 361.455 for

6-20  the fiscal year beginning on July 1, 1978, but if , in any fiscal year, the

6-21  sum of the rate attributable to a district’s debt service in [any] that fiscal

6-22  year and any rate levied for capital projects pursuant to NRS 387.3285 in

6-23  that fiscal year is greater than its rate for the fiscal year beginning on

6-24  July 1, 1978, the higher rate must be used to determine the amount

6-25  attributable to debt service.

6-26  4.  An amount equal to any basic governmental services tax distributed

6-27  to a redevelopment agency in the fiscal year 1987-1988 must continue to

6-28  be distributed to that agency as long as it exists but must not be increased.

6-29  5.  The department shall make distributions of thebasic governmental

6-30  servicestax directly to county school districts.

6-31  6.  As used in this section:

6-32  (a) “Enterprise district” has the meaning ascribed to it in NRS 360.620.

6-33  (b) “Local government” has the meaning ascribed to it in NRS 360.640.

6-34  (c) “Special district” has the meaning ascribed to it in NRS 360.650.

6-35  Sec. 8.   1.  The amendatory provisions of section 7 of this act do not

6-36  apply to modify, directly or indirectly, any taxes levied or revenues

6-37  pledged in such a manner as to impair adversely any outstanding

6-38  obligations of a local government, special district or enterprise district,

6-39  including, without limitation, bonds, medium-term financing, letters of

6-40  credit and any other financial obligation, until all such obligations have

6-41  been discharged in full or provision for their payment and redemption has

6-42  been fully made.

6-43  2.  As used in this section:

6-44  (a) “Enterprise district” has the meaning ascribed to it in NRS 360.620.

6-45  (b) “Local government” has the meaning ascribed to it in NRS 360.640.

6-46  (c) “Special district” has the meaning ascribed to it in NRS 360.650.

 

6-47  H