Assembly Bill No. 653–Committee on Taxation

 

March 26, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Makes various changes to formula for distribution of certain revenues. (BDR 32‑1459)

 

FISCAL NOTE:    Effect on Local Government: Yes.

                                 Effect on the State: Yes.

 

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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 taxation; revising the formula for the distribution of certain revenues among local governments; providing for an adjustment to the base allocation of certain local governments; 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 360.680 is hereby amended to read as follows:

1-2    360.680  1.  On or before July 1 of each year, the executive director

1-3  shall allocate to each enterprise district an amount equal to the amount that

1-4  the enterprise district received from the account in the immediately

1-5  preceding fiscal year.

1-6    2.  Except as otherwise provided in NRS 360.690 and 360.730, the

1-7  executive director, after subtracting the amount allocated to each enterprise

1-8  district pursuant to subsection 1, shall allocate to each local government or

1-9  special district which is eligible for an allocation from the account pursuant

1-10  to NRS 360.670 [an] :

1-11    (a) If the local government or special district is located in a county

1-12  whose population is 400,000 or more, an amount from the account that is

1-13  equal to the amount allocated to the local government or special district for

1-14  the preceding fiscal year .

1-15    (b) If the local government or special district is located in a county

1-16  whose population is less than 400,000, an amount from the account that

1-17  is equal to the amount allocated to the local government or special

1-18  district for the preceding fiscal year multiplied by one plus the percentage

1-19  change in the Consumer Price Index (All Items) for the year ending on

1-20  December 31 immediately preceding the year in which the allocation is

1-21  made.

 

 

2-1    Sec. 2.  NRS 360.690 is hereby amended to read as follows:

2-2    360.690  1.  Except as otherwise provided in NRS 360.730, the

2-3  executive director shall estimate monthly the amount each local

2-4  government, special district and enterprise district will receive from the

2-5  account pursuant to the provisions of this section.

2-6    2.  The executive director shall establish a base monthly allocation for

2-7  each local government, special district and enterprise district by dividing

2-8  the amount determined pursuant to NRS 360.680 for each local

2-9  government, special district and enterprise district by 12 and the state

2-10  treasurer shall, except as otherwise provided in subsections 3[, 4 and 5,] to

2-11  6, inclusive, remit monthly that amount to each local government, special

2-12  district and enterprise district.

2-13    3.  If, after making the allocation to each enterprise district for the

2-14  month, the executive director determines there is not sufficient money

2-15  available in the county’s subaccount in the account to allocate to each local

2-16  government and special district the base monthly allocation determined

2-17  pursuant to subsection 2, he shall prorate the money in the county’s

2-18  subaccount and allocate to each local government and special district an

2-19  amount equal to the percentage of the amount that the local government or

2-20  special district received from the total amount which was distributed to all

2-21  local governments and special districts within the county for the fiscal year

2-22  immediately preceding the year in which the allocation is made. The state

2-23  treasurer shall remit that amount to the local government or special district.

2-24    4.  [Except] In a county whose population is 400,000 or more, except

2-25  as otherwise provided in subsection [5,] 6, if the executive director

2-26  determines that there is money remaining in the county’s subaccount in the

2-27  account after the base monthly allocation determined pursuant to

2-28  subsection 2 has been allocated to each local government, special district

2-29  and enterprise district, he shall immediately determine and allocate each:

2-30    (a) Local government’s share of the remaining money by:

2-31      (1) Multiplying one-twelfth of the amount allocated pursuant to
NRS 360.680 by [one plus] the sum of the:

2-32          (I) Percentage change in the population of the local government for

2-33  the fiscal year immediately preceding the year in which the allocation is

2-34  made, as certified by the governor pursuant to NRS 360.285 except as

2-35  otherwise provided in subsection [6;] 7; and

2-36          (II) Average percentage of change in the assessed valuation of the

2-37  taxable property in the local government, including assessed valuation

2-38  attributable to a redevelopment agency but excluding the portion

2-39  attributable to the net proceeds of minerals, over the year in which the

2-40  allocation is made, as projected by the department pursuant to NRS

2-41  361.390, and the 4 fiscal years immediately preceding the year in which the

2-42  allocation is made; and

2-43      (2) Using the figure calculated pursuant to subparagraph (1) to

2-44  calculate and allocate to each local government an amount equal to the

2-45  proportion that the figure calculated pursuant to subparagraph (1) bears to

2-46  the total amount of the figures calculated pursuant to subparagraph (1) of

2-47  this paragraph and subparagraph (1) of paragraph (b), respectively, for the

3-1  local governments and special districts located in the same county

3-2  multiplied by the total amount available in the subaccount; and

3-3    (b) Special district’s share of the remaining money by:

3-4       (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

3-5  360.680 by [one plus] the average change in the assessed valuation of the

3-6  taxable property in the special district, including assessed valuation

3-7  attributable to a redevelopment agency but excluding the portion

3-8  attributable to the net proceeds of minerals, over the 5 fiscal years

3-9  immediately preceding the year in which the allocation is made; and

3-10      (2) Using the figure calculated pursuant to subparagraph (1) to

3-11  calculate and allocate to each special district an amount equal to the

3-12  proportion that the figure calculated pursuant to subparagraph (1) bears to

3-13  the total amount of the figures calculated pursuant to subparagraph (1) of

3-14  this paragraph and subparagraph (1) of paragraph (a), respectively, for the

3-15  local governments and special districts located in the same county

3-16  multiplied by the total amount available in the subaccount.

3-17  The state treasurer shall remit the amount allocated to each local

3-18  government or special district pursuant to this subsection.

3-19    5.  In a county whose population is less than 400,000, except as

3-20  otherwise provided in subsection 6, if the executive director determines

3-21  that there is money remaining in the county’s subaccount in the account

3-22  after the base monthly allocation determined pursuant to subsection 2

3-23  has been allocated to each local government, special district and

3-24  enterprise district, he shall immediately determine and allocate each:

3-25    (a) Local government’s share of the remaining money by:

3-26      (1) Multiplying one-twelfth of the amount allocated pursuant to

3-27  NRS 360.680 by one plus the sum of the:

3-28          (I) Percentage change in the population of the local government

3-29  for the fiscal year immediately preceding the year in which the allocation

3-30  is made, as certified by the governor pursuant to NRS 360.285 except as

3-31  otherwise provided in subsection 7; and

3-32          (II) Average percentage of change in the assessed valuation of

3-33  the taxable property in the local government, including assessed

3-34  valuation attributable to a redevelopment agency but excluding the

3-35  portion attributable to the net proceeds of minerals, over the year in

3-36  which the allocation is made, as projected by the department pursuant to

3-37  NRS 361.390, and the 4 fiscal years immediately preceding the year in

3-38  which the allocation is made; and

3-39      (2) Using the figure calculated pursuant to subparagraph (1) to

3-40  calculate and allocate to each local government an amount equal to the

3-41  proportion that the figure calculated pursuant to subparagraph (1) bears

3-42  to the total amount of the figures calculated pursuant to subparagraph

3-43  (1) of this paragraph and subparagraph (1) of paragraph (b),

3-44  respectively, for the local governments and special districts located in the

3-45  same county multiplied by the total amount available in the subaccount;

3-46  and

3-47    (b) Special district’s share of the remaining money by:

3-48      (1) Multiplying one-twelfth of the amount allocated pursuant to

3-49  NRS 360.680 by one plus the average change in the assessed valuation of

4-1  the taxable property in the special district, including assessed valuation

4-2  attributable to a redevelopment agency but excluding the portion

4-3  attributable to the net proceeds of minerals, over the 5 fiscal years

4-4  immediately preceding the year in which the allocation is made; and

4-5       (2) Using the figure calculated pursuant to subparagraph (1) to

4-6  calculate and allocate to each special district an amount equal to the

4-7  proportion that the figure calculated pursuant to subparagraph (1) bears

4-8  to the total amount of the figures calculated pursuant to subparagraph

4-9  (1) of this paragraph and subparagraph (1) of paragraph (a),

4-10  respectively, for the local governments and special districts located in the

4-11  same county multiplied by the total amount in the subaccount.

4-12  The state treasurer shall remit the amount allocated to each local

4-13  government or special district.

4-14    6.  The executive director shall not allocate any amount to a local

4-15  government or special district pursuant to subsection 4[,] or 5, as

4-16  applicable, unless the amount distributed and allocated to each of the local

4-17  governments and special districts in the county in each preceding month of

4-18  the fiscal year in which the allocation is to be made was at least equal to

4-19  the base monthly allocation determined pursuant to subsection 2. If the

4-20  amounts distributed to the local governments and special districts in the

4-21  county for the preceding months of the fiscal year in which the allocation is

4-22  to be made were less than the base monthly allocation determined pursuant

4-23  to subsection 2 and the executive director determines there is money

4-24  remaining in the county’s subaccount in the account after the distribution

4-25  for the month has been made, he shall:

4-26    (a) Determine the amount by which the base monthly allocations

4-27  determined pursuant to subsection 2 for each local government and special

4-28  district in the county for the preceding months of the fiscal year in which

4-29  the allocation is to be made exceeds the amounts actually received by the

4-30  local governments and special districts in the county for the same period;

4-31  and

4-32    (b) Compare the amount determined pursuant to paragraph (a) to the

4-33  amount of money remaining in the county’s subaccount in the account to

4-34  determine which amount is greater.

4-35  If the executive director determines that the amount determined pursuant to

4-36  paragraph (a) is greater, he shall allocate the money remaining in the

4-37  county’s subaccount in the account pursuant to the provisions of subsection

4-38  3. If the executive director determines that the amount of money remaining

4-39  in the county’s subaccount in the account is greater, he shall first allocate

4-40  the money necessary for each local government and special district to

4-41  receive the base monthly allocation determined pursuant to subsection 2

4-42  and the state treasurer shall remit that money so allocated. The executive

4-43  director shall allocate any additional money in the county’s subaccount in

4-44  the account pursuant to the provisions of subsection 4[.

4-45    6.] or 5, as applicable.

4-46    7.  The percentage change calculated pursuant to paragraph (a) of

4-47  subsection 4 or paragraph (a) of subsection 5 must:

4-48    (a) If the Bureau of the Census of the United States Department of

4-49  Commerce issues population totals that conflict with the totals certified by

5-1  the governor pursuant to NRS 360.285, be an estimate of the change in

5-2  population for the calendar year, based upon the population totals issued by

5-3  the Bureau of the Census.

5-4    (b) If a new method of determining population is established pursuant to

5-5  NRS 360.283, be adjusted in a manner that will result in the percentage

5-6  change being based on population determined pursuant to the new method

5-7  for both the fiscal year in which the allocation is made and the fiscal year

5-8  immediately preceding the year in which the allocation is made.

5-9    [7.] 8.  On or before February 15 of each year, the executive director

5-10  shall provide to each local government, special district and enterprise

5-11  district a preliminary estimate of the revenue it will receive from the

5-12  account for that fiscal year.

5-13    [8.] 9.  On or before March 15 of each year, the executive director

5-14  shall:

5-15    (a) Make an estimate of the receipts from each tax included in the

5-16  account on an accrual basis for the next fiscal year in accordance with

5-17  generally accepted accounting principles, including an estimate for each

5-18  county of the receipts from each tax included in the account; and

5-19    (b) Provide to each local government, special district and enterprise

5-20  district an estimate of the amount that local government, special district or

5-21  enterprise district would receive based upon the estimate made pursuant to

5-22  paragraph (a) and calculated pursuant to the provisions of this section.

5-23    [9.] 10.  A local government, special district or enterprise district may

5-24  use the estimate provided by the executive director pursuant to subsection

5-25  [8] 9 in the preparation of its budget.

5-26    Sec. 3.  NRS 354.59813 is hereby amended to read as follows:

5-27    354.59813  1.  In addition to the allowed revenue from taxes ad

5-28  valorem determined pursuant to NRS 354.59811, if the estimate of the

5-29  revenue available from the supplemental city-county relief tax to the

5-30  county as determined by the executive director of the department of

5-31  taxation pursuant to the provisions of subsection [8] 9 of NRS 360.690 is

5-32  less than the amount of money that would be generated by applying a tax

5-33  rate of $1.15 per $100 of assessed valuation to the assessed valuation of the

5-34  county, except any assessed valuation attributable to the net proceeds of

5-35  minerals, the governing body of each local government may levy an

5-36  additional tax ad valorem for operating purposes. The total tax levied by

5-37  the governing body of a local government pursuant to this section must not

5-38  exceed a rate calculated to produce revenue equal to the difference between

5-39  the:

5-40    (a) Amount of revenue from supplemental city-county relief tax

5-41  estimated to be received by the county pursuant to subsection [8] 9 of
NRS 360.690; and

5-42    (b) The tax that the county would have been estimated to receive if the

5-43  estimate for the total revenue available from the tax was equal to the

5-44  amount of money that would be generated by applying a tax rate of $1.15

5-45  per $100 of assessed valuation to the assessed valuation of the county,

5-46  multiplied by the proportion determined for the local government pursuant

5-47  to subparagraph (2) of paragraph (a) of subsection 4 or subparagraph (2)

5-48  of paragraph (a) of subsection 5, as applicable, of NRS 360.690.

6-1    2.  Any additional taxes ad valorem levied as a result of the application

6-2  of this section must not be included in the base from which the allowed

6-3  revenue from taxes ad valorem for the next subsequent year is computed.

6-4    3.  As used in this section, “local government” has the meaning

6-5  ascribed to it in NRS 360.640.

6-6    Sec. 4.  NRS 354.598747 is hereby amended to read as follows:

6-7    354.598747  1.  To calculate the amount to be distributed pursuant to

6-8  the provisions of NRS 360.680 and 360.690 from a county’s subaccount in

6-9  the local government tax distribution account to a local government,

6-10  special district or enterprise district after it assumes the functions of

6-11  another local government, special district or enterprise district:

6-12    (a) Except as otherwise provided in this subsection and subsection 2, the

6-13  executive director of the department of taxation shall:

6-14      (1) Add the amounts calculated pursuant to subsection 1 or 2 of NRS

6-15  360.680 for each local government, special district or enterprise district and

6-16  allocate the combined amount to the local government, special district or

6-17  enterprise district that assumes the functions; and

6-18      (2) If applicable, add the population and average change in the

6-19  assessed valuation of the taxable property that would otherwise be allowed

6-20  to the local government or special district whose functions are assumed,

6-21  including the assessed valuation attributable to a redevelopment agency but

6-22  excluding the portion attributable to the net proceeds of minerals, pursuant

6-23  to subsection 4 or 5, as applicable, of NRS 360.690 to the population and

6-24  average change in assessed valuation for the local government, special

6-25  district or enterprise district that assumes the functions.

6-26    (b) If two or more local governments, special districts or enterprise

6-27  districts assume the functions of another local government, special district

6-28  or enterprise district, the additional revenue must be divided among the

6-29  local governments, special districts or enterprise districts that assume the

6-30  functions on the basis of the proportionate costs of the functions assumed.

6-31  The Nevada tax commission shall not allow any increase in the allowed

6-32  revenue from the taxes contained in the county’s subaccount in the local

6-33  government tax distribution account if the increase would result in a

6-34  decrease in revenue of any local government, special district or enterprise

6-35  district in the county that does not assume those functions. If more than one

6-36  local government, special district or enterprise district assumes the

6-37  functions, the Nevada tax commission shall determine the appropriate

6-38  amounts calculated pursuant to subparagraphs (1) and (2) of paragraph (a).

6-39    2.  If a city disincorporates, the board of county commissioners of the

6-40  county in which the city is located must determine the amount the

6-41  unincorporated town created by the disincorporation will receive pursuant

6-42  to the provisions of NRS 360.600 to 360.740, inclusive.

6-43    3.  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.

 

 

7-1    Sec. 5.  1.  For the fiscal year beginning on July 1, 2000, the

7-2  executive director of the department of taxation shall:

7-3    (a) Allocate to the City of Henderson, in addition to the amount

7-4  otherwise allocated pursuant to subsection 4 of NRS 360.690, an amount

7-5  equal to $4,000,000;

7-6    (b) Subtract from the amount otherwise allocated to Clark County

7-7  pursuant to the provisions of subsection 4 of NRS 360.690, an amount

7-8  equal to $2,000,000; and

7-9    (c) Subtract from the amount otherwise allocated to the City of Las

7-10  Vegas pursuant to the provisions of subsection 4 of NRS 360.690, an

7-11  amount equal to $2,000,000.

7-12    2.  For the fiscal year beginning on July 1, 2001, the executive director

7-13  of the department of taxation, pursuant to NRS 360.680, shall allocate to:

7-14    (a) The City of Henderson, the total net amount allocated pursuant to

7-15  paragraph (a) of subsection 1.

7-16    (b) Clark County, the total net amount allocated pursuant to
paragraph (b) of subsection 1.

7-17    (c) The City of Las Vegas, the total net amount allocated pursuant to

7-18  paragraph (c) of subsection 1.

7-19    Sec. 6.  On or before July 1, 2001, the executive director of the

7-20  department of taxation shall provide to each local government and special

7-21  district in Clark County the estimates required pursuant to subsections 8

7-22  and 9 of NRS 360.690 revised to reflect the provisions of sections 1, 2 and

7-23  5 of this act.

7-24    Sec. 7.  The legislature hereby finds and declares that the provisions of

7-25  sections 5 and 6 of this act are necessary to correct certain discrepancies in

7-26  the formula for the distribution of certain revenues set forth in section 35 of

7-27  chapter 660, Statutes of Nevada 1997, as that formula relates to the region

7-28  of this state encompassed generally by Clark County and the unique

7-29  patterns of growth that exist in that region, and therefore a general law

7-30  cannot be made applicable.

7-31    Sec. 8.  1.  This section and sections 6 and 7 of this act become

7-32  effective upon passage and approval.

7-33    2.  Sections 1 to 5, inclusive, of this act become effective on
July 1, 2001.

 

7-34  H