(REPRINTED WITH ADOPTED AMENDMENTS)

                                                           FIRST REPRINT                                                                    A.B. 653

 

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.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

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; extending the date for expiration of the legislative committee to study distribution among local governments of revenue from state and local taxes; requiring the advisory committee to the committee to conduct a study; 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 , minus any excess amount allocated pursuant to

1-15  subsection 4 of NRS 360.690, multiplied by one plus the percentage

1-16  change in the Consumer Price Index (All Items) for the year ending on

1-17  December 31 immediately preceding the year in which the allocation is

1-18  made.

1-19    (b) If the local government or special district is located in a county

1-20  whose population is less than 400,000, an amount from the account that


2-1  is equal to the amount allocated to the local government or special

2-2  district for the preceding fiscal year multiplied by one plus the percentage

2-3  change in the Consumer Price Index (All Items) for the year ending on

2-4  December 31 immediately preceding the year in which the allocation is

2-5  made.

2-6    Sec. 2.  NRS 360.690 is hereby amended to read as follows:

2-7    360.690  1.  Except as otherwise provided in NRS 360.730, the

2-8  executive director shall estimate monthly the amount each local

2-9  government, special district and enterprise district will receive from the

2-10  account pursuant to the provisions of this section.

2-11    2.  The executive director shall establish a base monthly allocation for

2-12  each local government, special district and enterprise district by dividing

2-13  the amount determined pursuant to NRS 360.680 for each local

2-14  government, special district and enterprise district by 12 and the state

2-15  treasurer shall, except as otherwise provided in subsections 3[, 4 and 5,] to

2-16  6, inclusive, remit monthly that amount to each local government, special

2-17  district and enterprise district.

2-18    3.  If, after making the allocation to each enterprise district for the

2-19  month, the executive director determines there is not sufficient money

2-20  available in the county’s subaccount in the account to allocate to each local

2-21  government and special district the base monthly allocation determined

2-22  pursuant to subsection 2, he shall prorate the money in the county’s

2-23  subaccount and allocate to each local government and special district an

2-24  amount equal to the percentage of the amount that the local government or

2-25  special district received from the total amount which was distributed to all

2-26  local governments and special districts within the county for the fiscal year

2-27  immediately preceding the year in which the allocation is made. The state

2-28  treasurer shall remit that amount to the local government or special district.

2-29    4.  [Except] In a county whose population is 400,000 or more, except

2-30  as otherwise provided in subsection [5,] 6, if the executive director

2-31  determines that there is money remaining in the county’s subaccount in the

2-32  account after the base monthly allocation determined pursuant to

2-33  subsection 2 has been allocated to each local government, special district

2-34  and enterprise district, he shall immediately determine and allocate each:

2-35    (a) Local government’s share of the remaining money by:

2-36      (1) Multiplying one-twelfth of the amount allocated pursuant to

2-37  NRS 360.680 by [one] 0.75 plus the sum of the:

2-38          (I) [Percentage] Average percentage of change in the population of

2-39  the local government for the fiscal year immediately preceding the year in

2-40  which the allocation is made and the 4 fiscal years immediately preceding

2-41  the year in which the allocation is made, as certified by the governor

2-42  pursuant to NRS 360.285 except as otherwise provided in subsection [6;]

2-43  7; and

2-44          (II) Average percentage of change in the assessed valuation of the

2-45  taxable property in the local government, including assessed valuation

2-46  attributable to a redevelopment agency but excluding the portion

2-47  attributable to the net proceeds of minerals, over the year in which the

2-48  allocation is made, as projected by the department pursuant to NRS


3-1  361.390, and the 4 fiscal years immediately preceding the year in which the

3-2  allocation is made; and

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

3-4  calculate and allocate to each local government an amount equal to the

3-5  proportion that the figure calculated pursuant to subparagraph (1) bears to

3-6  the total amount of the figures calculated pursuant to subparagraph (1) of

3-7  this paragraph and subparagraph (1) of paragraph (b), respectively, for the

3-8  local governments and special districts located in the same county

3-9  multiplied by the total amount available in the subaccount; and

3-10    (b) Special district’s share of the remaining money by:

3-11      (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

3-12  360.680 by [one] 0.75 plus the average change in the assessed valuation of

3-13  the taxable property in the special district, including assessed valuation

3-14  attributable to a redevelopment agency but excluding the portion

3-15  attributable to the net proceeds of minerals, over the 5 fiscal years

3-16  immediately preceding the year in which the allocation is made; and

3-17      (2) Using the figure calculated pursuant to subparagraph (1) to

3-18  calculate and allocate to each special district an amount equal to the

3-19  proportion that the figure calculated pursuant to subparagraph (1) bears to

3-20  the total amount of the figures calculated pursuant to subparagraph (1) of

3-21  this paragraph and subparagraph (1) of paragraph (a), respectively, for the

3-22  local governments and special districts located in the same county

3-23  multiplied by the total amount available in the subaccount.

3-24  The state treasurer shall remit the amount allocated to each local

3-25  government or special district pursuant to this subsection.

3-26    5.  In a county whose population is less than 400,000, except as

3-27  otherwise provided in subsection 6, if the executive director determines

3-28  that there is money remaining in the county’s subaccount in the account

3-29  after the base monthly allocation determined pursuant to subsection 2

3-30  has been allocated to each local government, special district and

3-31  enterprise district, he shall immediately determine and allocate each:

3-32    (a) Local government’s share of the remaining money by:

3-33      (1) Multiplying one-twelfth of the amount allocated pursuant to

3-34  NRS 360.680 by one plus the sum of the:

3-35          (I) Percentage change in the population of the local government

3-36  for the fiscal year immediately preceding the year in which the allocation

3-37  is made, as certified by the governor pursuant to NRS 360.285 except as

3-38  otherwise provided in subsection 7; and

3-39          (II) Average percentage of change in the assessed valuation of

3-40  the taxable property in the local government, including assessed

3-41  valuation attributable to a redevelopment agency but excluding the

3-42  portion attributable to the net proceeds of minerals, over the year in

3-43  which the allocation is made, as projected by the department pursuant to

3-44  NRS 361.390, and the 4 fiscal years immediately preceding the year in

3-45  which the allocation is made; and

3-46      (2) Using the figure calculated pursuant to subparagraph (1) to

3-47  calculate and allocate to each local government an amount equal to the

3-48  proportion that the figure calculated pursuant to subparagraph (1) bears

3-49  to the total amount of the figures calculated pursuant to subparagraph


4-1  (1) of this paragraph and subparagraph (1) of paragraph (b),

4-2  respectively, for the local governments and special districts located in the

4-3  same county multiplied by the total amount available in the subaccount;

4-4  and

4-5    (b) Special district’s share of the remaining money by:

4-6       (1) Multiplying one-twelfth of the amount allocated pursuant to

4-7  NRS 360.680 by one plus the average change in the assessed valuation of

4-8  the taxable property in the special district, including assessed valuation

4-9  attributable to a redevelopment agency but excluding the portion

4-10  attributable to the net proceeds of minerals, over the 5 fiscal years

4-11  immediately preceding the year in which the allocation is made; and

4-12      (2) Using the figure calculated pursuant to subparagraph (1) to

4-13  calculate and allocate to each special district an amount equal to the

4-14  proportion that the figure calculated pursuant to subparagraph (1) bears

4-15  to the total amount of the figures calculated pursuant to subparagraph

4-16  (1) of this paragraph and subparagraph (1) of paragraph (a),

4-17  respectively, for the local governments and special districts located in the

4-18  same county multiplied by the total amount in the subaccount.

4-19  The state treasurer shall remit the amount allocated to each local

4-20  government or special district.

4-21    6.  The executive director shall not allocate any amount to a local

4-22  government or special district pursuant to subsection 4[,] or 5, as

4-23  applicable, unless the amount distributed and allocated to each of the local

4-24  governments and special districts in the county in each preceding month of

4-25  the fiscal year in which the allocation is to be made was at least equal to

4-26  the base monthly allocation determined pursuant to subsection 2. If the

4-27  amounts distributed to the local governments and special districts in the

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

4-29  to be made were less than the base monthly allocation determined pursuant

4-30  to subsection 2 and the executive director determines there is money

4-31  remaining in the county’s subaccount in the account after the distribution

4-32  for the month has been made, he shall:

4-33    (a) Determine the amount by which the base monthly allocations

4-34  determined pursuant to subsection 2 for each local government and special

4-35  district in the county for the preceding months of the fiscal year in which

4-36  the allocation is to be made exceeds the amounts actually received by the

4-37  local governments and special districts in the county for the same period;

4-38  and

4-39    (b) Compare the amount determined pursuant to paragraph (a) to the

4-40  amount of money remaining in the county’s subaccount in the account to

4-41  determine which amount is greater.

4-42  If the executive director determines that the amount determined pursuant to

4-43  paragraph (a) is greater, he shall allocate the money remaining in the

4-44  county’s subaccount in the account pursuant to the provisions of subsection

4-45  3. If the executive director determines that the amount of money remaining

4-46  in the county’s subaccount in the account is greater, he shall first allocate

4-47  the money necessary for each local government and special district to

4-48  receive the base monthly allocation determined pursuant to subsection 2

4-49  and the state treasurer shall remit that money so allocated. The executive


5-1  director shall allocate any additional money in the county’s subaccount in

5-2  the account pursuant to the provisions of subsection 4[.

5-3    6.] or 5, as applicable.

5-4    7.  The percentage change calculated pursuant to paragraph (a) of

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

5-6    (a) If the Bureau of the Census of the United States Department of

5-7  Commerce issues population totals that conflict with the totals certified by

5-8  the governor pursuant to NRS 360.285, be an estimate of the change in

5-9  population for the calendar year, based upon the population totals issued by

5-10  the Bureau of the Census.

5-11    (b) If a new method of determining population is established pursuant to

5-12  NRS 360.283, be adjusted in a manner that will result in the percentage

5-13  change being based on population determined pursuant to the new method

5-14  for both the fiscal year in which the allocation is made and the fiscal year

5-15  immediately preceding the year in which the allocation is made.

5-16    [7.] 8.  On or before February 15 of each year, the executive director

5-17  shall provide to each local government, special district and enterprise

5-18  district a preliminary estimate of the revenue it will receive from the

5-19  account for that fiscal year.

5-20    [8.] 9.  On or before March 15 of each year, the executive director

5-21  shall:

5-22    (a) Make an estimate of the receipts from each tax included in the

5-23  account on an accrual basis for the next fiscal year in accordance with

5-24  generally accepted accounting principles, including an estimate for each

5-25  county of the receipts from each tax included in the account; and

5-26    (b) Provide to each local government, special district and enterprise

5-27  district an estimate of the amount that local government, special district or

5-28  enterprise district would receive based upon the estimate made pursuant to

5-29  paragraph (a) and calculated pursuant to the provisions of this section.

5-30    [9.] 10.  A local government, special district or enterprise district may

5-31  use the estimate provided by the executive director pursuant to subsection

5-32  [8] 9 in the preparation of its budget.

5-33    Sec. 2.5.  NRS 360.690 is hereby amended to read as follows:

5-34    360.690  1.  Except as otherwise provided in NRS 360.730, the

5-35  executive director shall estimate monthly the amount each local

5-36  government, special district and enterprise district will receive from the

5-37  account pursuant to the provisions of this section.

5-38    2.  The executive director shall establish a base monthly allocation for

5-39  each local government, special district and enterprise district by dividing

5-40  the amount determined pursuant to NRS 360.680 for each local

5-41  government, special district and enterprise district by 12 and the state

5-42  treasurer shall, except as otherwise provided in subsections 3 to 6,

5-43  inclusive, remit monthly that amount to each local government, special

5-44  district and enterprise district.

5-45    3.  If, after making the allocation to each enterprise district for the

5-46  month, the executive director determines there is not sufficient money

5-47  available in the county’s subaccount in the account to allocate to each local

5-48  government and special district the base monthly allocation determined

5-49  pursuant to subsection 2, he shall prorate the money in the county’s


6-1  subaccount and allocate to each local government and special district an

6-2  amount equal to the percentage of the amount that the local government or

6-3  special district received from the total amount which was distributed to all

6-4  local governments and special districts within the county for the fiscal year

6-5  immediately preceding the year in which the allocation is made. The state

6-6  treasurer shall remit that amount to the local government or special district.

6-7    4.  In a county whose population is 400,000 or more, except as

6-8  otherwise provided in subsection 6, if the executive director determines

6-9  that there is money remaining in the county’s subaccount in the account

6-10  after the base monthly allocation determined pursuant to subsection 2 has

6-11  been allocated to each local government, special district and enterprise

6-12  district, he shall immediately determine and allocate each:

6-13    (a) Local government’s share of the remaining money by:

6-14      (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

6-15  360.680 by [0.75] 0.5 plus the sum of the:

6-16         (I) Average percentage of change in the population of the local

6-17  government for the fiscal year immediately preceding the year in which the

6-18  allocation is made and the 4 fiscal years immediately preceding the year in

6-19  which the allocation is made, as certified by the governor pursuant to NRS

6-20  360.285 except as otherwise provided in subsection 7; and

6-21         (II) Average percentage of change in the assessed valuation of the

6-22  taxable property in the local government, including assessed valuation

6-23  attributable to a redevelopment agency but excluding the portion

6-24  attributable to the net proceeds of minerals, over the year in which the

6-25  allocation is made, as projected by the department pursuant to NRS

6-26  361.390, and the 4 fiscal years immediately preceding the year in which the

6-27  allocation is made; and

6-28      (2) Using the figure calculated pursuant to subparagraph (1) to

6-29  calculate and allocate to each local government an amount equal to the

6-30  proportion that the figure calculated pursuant to subparagraph (1) bears to

6-31  the total amount of the figures calculated pursuant to subparagraph (1) of

6-32  this paragraph and subparagraph (1) of paragraph (b), respectively, for the

6-33  local governments and special districts located in the same county

6-34  multiplied by the total amount available in the subaccount; and

6-35    (b) Special district’s share of the remaining money by:

6-36      (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

6-37  360.680 by [0.75] 0.5 plus the average change in the assessed valuation of

6-38  the taxable property in the special district, including assessed valuation

6-39  attributable to a redevelopment agency but excluding the portion

6-40  attributable to the net proceeds of minerals, over the 5 fiscal years

6-41  immediately preceding the year in which the allocation is made; and

6-42      (2) Using the figure calculated pursuant to subparagraph (1) to

6-43  calculate and allocate to each special district an amount equal to the

6-44  proportion that the figure calculated pursuant to subparagraph (1) bears to

6-45  the total amount of the figures calculated pursuant to subparagraph (1) of

6-46  this paragraph and subparagraph (1) of paragraph (a), respectively, for the

6-47  local governments and special districts located in the same county

6-48  multiplied by the total amount available in the subaccount.


7-1  The state treasurer shall remit the amount allocated to each local

7-2  government or special district pursuant to this subsection.

7-3    5.  In a county whose population is less than 400,000, except as

7-4  otherwise provided in subsection 6, if the executive director determines

7-5  that there is money remaining in the county’s subaccount in the account

7-6  after the base monthly allocation determined pursuant to subsection 2 has

7-7  been allocated to each local government, special district and enterprise

7-8  district, he shall immediately determine and allocate each:

7-9    (a) Local government’s share of the remaining money by:

7-10      (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

7-11  360.680 by one plus the sum of the:

7-12         (I) Percentage change in the population of the local government for

7-13  the fiscal year immediately preceding the year in which the allocation is

7-14  made, as certified by the governor pursuant to NRS 360.285 except as

7-15  otherwise provided in subsection 7;

7-16         (II) Average percentage of change in the assessed valuation of the

7-17  taxable property in the local government, including assessed valuation

7-18  attributable to a redevelopment agency but excluding the portion

7-19  attributable to the net proceeds of minerals, over the year in which the

7-20  allocation is made, as projected by the department pursuant to NRS

7-21  361.390, and the 4 fiscal years immediately preceding the year in which the

7-22  allocation is made; and

7-23      (2) Using the figure calculated pursuant to subparagraph (1) to

7-24  calculate and allocate to each local government an amount equal to the

7-25  proportion that the figure calculated pursuant to subparagraph (1) bears to

7-26  the total amount of the figures calculated pursuant to subparagraph (1) of

7-27  this paragraph and subparagraph (1) of paragraph (b), respectively, for the

7-28  local governments and special districts located in the same county

7-29  multiplied by the total amount available in the subaccount; and

7-30    (b) Special district’s share of the remaining money by:

7-31      (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

7-32  360.680 by one plus the average change in the assessed valuation of the

7-33  taxable property in the special district, including assessed valuation

7-34  attributable to a redevelopment agency but excluding the portion

7-35  attributable to the net proceeds of minerals, over the 5 fiscal years

7-36  immediately preceding the year in which the allocation is made; and

7-37      (2) Using the figure calculated pursuant to subparagraph (1) to

7-38  calculate and allocate to each special district an amount equal to the

7-39  proportion that the figure calculated pursuant to subparagraph (1) bears to

7-40  the total amount of the figures calculated pursuant to subparagraph (1) of

7-41  this paragraph and subparagraph (1) of paragraph (a), respectively, for the

7-42  local governments and special districts located in the same county

7-43  multiplied by the total amount in the subaccount.

7-44  The state treasurer shall remit the amount allocated to each local

7-45  government or special district.

7-46    6.  The executive director shall not allocate any amount to a local

7-47  government or special district pursuant to subsection 4 or 5, as applicable,

7-48  unless the amount distributed and allocated to each of the local

7-49  governments and special districts in the county in each preceding month of


8-1  the fiscal year in which the allocation is to be made was at least equal to

8-2  the base monthly allocation determined pursuant to subsection 2. If the

8-3  amounts distributed to the local governments and special districts in the

8-4  county for the preceding months of the fiscal year in which the allocation is

8-5  to be made were less than the base monthly allocation determined pursuant

8-6  to subsection 2 and the executive director determines there is money

8-7  remaining in the county’s subaccount in the account after the distribution

8-8  for the month has been made, he shall:

8-9    (a) Determine the amount by which the base monthly allocations

8-10  determined pursuant to subsection 2 for each local government and special

8-11  district in the county for the preceding months of the fiscal year in which

8-12  the allocation is to be made exceeds the amounts actually received by the

8-13  local governments and special districts in the county for the same period;

8-14  and

8-15    (b) Compare the amount determined pursuant to paragraph (a) to the

8-16  amount of money remaining in the county’s subaccount in the account to

8-17  determine which amount is greater.

8-18  If the executive director determines that the amount determined pursuant to

8-19  paragraph (a) is greater, he shall allocate the money remaining in the

8-20  county’s subaccount in the account pursuant to the provisions of subsection

8-21  3. If the executive director determines that the amount of money remaining

8-22  in the county’s subaccount in the account is greater, he shall first allocate

8-23  the money necessary for each local government and special district to

8-24  receive the base monthly allocation determined pursuant to subsection 2

8-25  and the state treasurer shall remit that money so allocated. The executive

8-26  director shall allocate any additional money in the county’s subaccount in

8-27  the account pursuant to the provisions of subsection 4 or 5, as applicable.

8-28    7.  The percentage change calculated pursuant to paragraph (a) of

8-29  subsection 4 or paragraph (a) of subsection 5 must:

8-30    (a) If the Bureau of the Census of the United States Department of

8-31  Commerce issues population totals that conflict with the totals certified by

8-32  the governor pursuant to NRS 360.285, be an estimate of the change in

8-33  population for the calendar year, based upon the population totals issued by

8-34  the Bureau of the Census.

8-35    (b) If a new method of determining population is established pursuant to

8-36  NRS 360.283, be adjusted in a manner that will result in the percentage

8-37  change being based on population determined pursuant to the new method

8-38  for both the fiscal year in which the allocation is made and the fiscal year

8-39  immediately preceding the year in which the allocation is made.

8-40    8.  On or before February 15 of each year, the executive director shall

8-41  provide to each local government, special district and enterprise district a

8-42  preliminary estimate of the revenue it will receive from the account for that

8-43  fiscal year.

8-44    9.  On or before March 15 of each year, the executive director shall:

8-45    (a) Make an estimate of the receipts from each tax included in the

8-46  account on an accrual basis for the next fiscal year in accordance with

8-47  generally accepted accounting principles, including an estimate for each

8-48  county of the receipts from each tax included in the account; and


9-1    (b) Provide to each local government, special district and enterprise

9-2  district an estimate of the amount that local government, special district or

9-3  enterprise district would receive based upon the estimate made pursuant to

9-4  paragraph (a) and calculated pursuant to the provisions of this section.

9-5    10.  A local government, special district or enterprise district may use

9-6  the estimate provided by the executive director pursuant to subsection 9 in

9-7  the preparation of its budget.

9-8    Sec. 3.  NRS 354.59813 is hereby amended to read as follows:

9-9    354.59813  1.  In addition to the allowed revenue from taxes ad

9-10  valorem determined pursuant to NRS 354.59811, if the estimate of the

9-11  revenue available from the supplemental city-county relief tax to the

9-12  county as determined by the executive director of the department of

9-13  taxation pursuant to the provisions of subsection [8] 9 of NRS 360.690 is

9-14  less than the amount of money that would be generated by applying a tax

9-15  rate of $1.15 per $100 of assessed valuation to the assessed valuation of the

9-16  county, except any assessed valuation attributable to the net proceeds of

9-17  minerals, the governing body of each local government may levy an

9-18  additional tax ad valorem for operating purposes. The total tax levied by

9-19  the governing body of a local government pursuant to this section must not

9-20  exceed a rate calculated to produce revenue equal to the difference between

9-21  the:

9-22    (a) Amount of revenue from supplemental city-county relief tax

9-23  estimated to be received by the county pursuant to subsection [8] 9 of

9-24  NRS 360.690; and

9-25    (b) The tax that the county would have been estimated to receive if the

9-26  estimate for the total revenue available from the tax was equal to the

9-27  amount of money that would be generated by applying a tax rate of $1.15

9-28  per $100 of assessed valuation to the assessed valuation of the county,

9-29  multiplied by the proportion determined for the local government pursuant

9-30  to subparagraph (2) of paragraph (a) of subsection 4 or subparagraph (2)

9-31  of paragraph (a) of subsection 5, as applicable, of NRS 360.690.

9-32    2.  Any additional taxes ad valorem levied as a result of the application

9-33  of this section must not be included in the base from which the allowed

9-34  revenue from taxes ad valorem for the next subsequent year is computed.

9-35    3.  As used in this section, “local government” has the meaning

9-36  ascribed to it in NRS 360.640.

9-37    Sec. 4.  NRS 354.598747 is hereby amended to read as follows:

9-38    354.598747  1.  To calculate the amount to be distributed pursuant to

9-39  the provisions of NRS 360.680 and 360.690 from a county’s subaccount in

9-40  the local government tax distribution account to a local government,

9-41  special district or enterprise district after it assumes the functions of

9-42  another local government, special district or enterprise district:

9-43    (a) Except as otherwise provided in this subsection and subsection 2, the

9-44  executive director of the department of taxation shall:

9-45      (1) Add the amounts calculated pursuant to subsection 1 or 2 of NRS

9-46  360.680 for each local government, special district or enterprise district and

9-47  allocate the combined amount to the local government, special district or

9-48  enterprise district that assumes the functions; and


10-1      (2) If applicable, add the population and average change in the

10-2  assessed valuation of the taxable property that would otherwise be allowed

10-3  to the local government or special district whose functions are assumed,

10-4  including the assessed valuation attributable to a redevelopment agency but

10-5  excluding the portion attributable to the net proceeds of minerals, pursuant

10-6  to subsection 4 or 5, as applicable, of NRS 360.690 to the population and

10-7  average change in assessed valuation for the local government, special

10-8  district or enterprise district that assumes the functions.

10-9    (b) If two or more local governments, special districts or enterprise

10-10  districts assume the functions of another local government, special district

10-11  or enterprise district, the additional revenue must be divided among the

10-12  local governments, special districts or enterprise districts that assume the

10-13  functions on the basis of the proportionate costs of the functions assumed.

10-14  The Nevada tax commission shall not allow any increase in the allowed

10-15  revenue from the taxes contained in the county’s subaccount in the local

10-16  government tax distribution account if the increase would result in a

10-17  decrease in revenue of any local government, special district or enterprise

10-18  district in the county that does not assume those functions. If more than one

10-19  local government, special district or enterprise district assumes the

10-20  functions, the Nevada tax commission shall determine the appropriate

10-21  amounts calculated pursuant to subparagraphs (1) and (2) of paragraph (a).

10-22  2.  If a city disincorporates, the board of county commissioners of the

10-23  county in which the city is located must determine the amount the

10-24  unincorporated town created by the disincorporation will receive pursuant

10-25  to the provisions of NRS 360.600 to 360.740, inclusive.

10-26  3.  As used in this section:

10-27  (a) “Enterprise district” has the meaning ascribed to it in NRS 360.620.

10-28  (b) “Local government” has the meaning ascribed to it in NRS 360.640.

10-29  (c) “Special district” has the meaning ascribed to it in NRS 360.650.

10-30  Sec. 4.5.  Section 9 of chapter 661, Statutes of Nevada 1997, at page

10-31  3309, is hereby amended to read as follows:

10-32  Sec. 9.  This act becomes effective on July 1, 1997, and expires by

10-33  limitation on July 1, [2001.] 2003.

10-34  Sec. 5.  (Deleted by amendment.)

10-35  Sec. 6.  On or before July 1, 2001, the executive director of the

10-36  department of taxation shall provide to each local government and special

10-37  district in Clark County the estimates required pursuant to subsections 8

10-38  and 9 of NRS 360.690 revised to reflect the provisions of sections 1, 2 and

10-39  2.5 of this act.

10-40  Sec. 6.5.  The advisory committee to the legislative committee to study

10-41  the distribution among local governments of revenue from state and local

10-42  taxes created pursuant to subsection 2 of NRS 218.53881 shall conduct a

10-43  study of the effects of the formula for the distribution of certain revenues

10-44  among local governments set forth in NRS 360.600 to 360.740, inclusive,

10-45  and the amendatory provisions of this act. The advisory committee shall

10-46  report its findings to the legislative committee to study the distribution

10-47  among local governments of revenue from state and local taxes on or

10-48  before October 1, 2002.


11-1    Sec. 7.  The legislature hereby finds and declares that the provisions of

11-2  section 6 of this act are necessary to correct certain discrepancies in the

11-3  formula for the distribution of certain revenues set forth in section 35 of

11-4  chapter 660, Statutes of Nevada 1997, as that formula relates to the region

11-5  of this state encompassed generally by Clark County and the unique

11-6  patterns of growth that exist in that region, and therefore a general law

11-7  cannot be made applicable.

11-8    Sec. 8.  1.  This section and sections 6 and 7 of this act become

11-9  effective upon passage and approval.

11-10  2.  Sections 1, 2, 3 to 5, inclusive, and 6.5 of this act become effective

11-11  on July 1, 2001.

11-12  3.  Section 2.5 of this act becomes effective on July 1, 2003.

 

11-13  H