Assembly Bill No. 654–Committee on Taxation

 

(On Behalf of City of Las Vegas)

 

March 26, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Authorizes governing body of city or county to impose tax on nonresidential structures or require dedication of certain land for regional parks. (BDR 22‑477)

 

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 local governments; authorizing the governing body of a city or county to impose a tax on nonresidential structures or require the dedication of certain land for regional parks; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1.  Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:

   “Nonresidential structure” means a building or structure other than a residential dwelling unit or an apartment house, or a building or structure constructed by a governmental agency.

   Sec. 2.  NRS 278.497 is hereby amended to read as follows:

   278.497  As used in NRS 278.497 to 278.4987, inclusive, and section 1 of this act, the words and terms defined in NRS 278.4971 to 278.4977, inclusive, and section 1 of this act have the meanings ascribed to them in those sections, unless the context otherwise requires.

   Sec. 3.  NRS 278.4979 is hereby amended to read as follows:

   278.4979  The governing body of a city or county may, by ordinance, require that a subdivider of land or a developer of land for mobile home lots , [or] an apartment house or a nonresidential structure dedicate such land areas, sites and locations for park and playground purposes as are reasonably necessary to serve the proposed subdivision or development and the future [residents] occupants of the subdivision or development.

 

 

2-1    Sec. 4.  NRS 278.4981 is hereby amended to read as follows:

2-2    278.4981  1.  The ordinance adopted pursuant to NRS 278.4979 must

2-3  set forth the standards to be applied in determining the amount of land that

2-4  is required to be dedicated. The ordinance must contain standards

2-5  determining the amount, quality and location of land that is required to be

2-6  dedicated which are based upon the number and type of dwelling units or

2-7  structures, apartment houses , nonresidential structures or mobile home

2-8  lots, or any combination thereof, included in each subdivision or

2-9  development and give due consideration to the relative desirability and

2-10  market value of the land that may be included within the area of any

2-11  particular proposed subdivision or development.

2-12    2.  The ordinance must, without limiting the general powers conferred

2-13  in this chapter, include the following:

2-14    (a) Provisions for the creation, in accordance with the applicable master

2-15  plan, of park districts or service areas which would serve neighborhoods ,

2-16  regions or communities of interest within the city or county.

2-17    (b) A delegation of authority to designated departments or agencies of

2-18  the city or county to select the location of the land areas to be dedicated for

2-19  park and playground purposes. The land to be dedicated for park and

2-20  playground purposes must be within the park district or service area

2-21  created pursuant to paragraph (a) in which the subdivision, nonresidential

2-22  structure, apartment house or mobile home lots are located.

2-23    (c) A provision limiting the amount of land required to be dedicated to

2-24  an amount of land having a fair market value, determined by independent

2-25  appraisal, which does not exceed the amount of any [residential]

2-26  construction tax which would otherwise have been collected [under]

2-27  pursuant to NRS 278.4983.

2-28    (d) A provision for the transfer of title to the dedicated land upon the

2-29  issuance of building permits and the construction of the first unit of the

2-30  subdivision or development from which the land was dedicated.

2-31  The ordinance may also contain a provision allowing an increase in the

2-32  number of dwelling units or structures, apartment houses , nonresidential

2-33  structures or mobile home lots, or any combination of them, in the

2-34  subdivision equal to the number which would otherwise have been allowed

2-35  on the land dedicated for parks and playgrounds.

2-36    Sec. 5.  NRS 278.4983 is hereby amended to read as follows:

2-37    278.4983   1.  The city council of any city or the board of county

2-38  commissioners of any county which has adopted a master plan and

2-39  recreation plan, as provided in this chapter, which includes, as a part of the

2-40  plan, future or present sites for neighborhood or regional parks may, by

2-41  ordinance, impose a [residential] construction tax pursuant to this section.

2-42    2.  If imposed, the [residential] construction tax must be imposed on

2-43  the privilege of constructing apartment houses , [and] residential dwelling

2-44  units and nonresidential structures and developing mobile home lots in

2-45  the respective cities and counties.The rate of the tax must not exceed:

2-46    (a) With respect to the construction of apartment houses and residential

2-47  dwelling units, 1 percent of the valuation of each building permit issued or

2-48  [$1,000] $2,000 per residential dwelling unit, whichever is less. For the

2-49  purpose of calculating the [residential] construction tax[, ] pursuant to

3-1  this paragraph, the city council of the city or the board of county

3-2  commissioners of the county shall adopt an ordinance basing the valuation

3-3  of building permits on the actual costs of residential construction in the

3-4  area.

3-5    (b) With respect to the development of mobile home lots, for each

3-6  mobile home lot authorized by a lot development permit, 80 percent of the

3-7  average [residential] construction tax paid pursuant to paragraph (a) per

3-8  residential dwelling unit in the respective city or county during the

3-9  calendar year next preceding the fiscal year in which the lot development

3-10  permit is issued.

3-11    (c) With respect to the construction of nonresidential structures, 1

3-12  percent of the valuation of each building permit issued or $20,000 per

3-13  nonresidential structure, whichever is less. For the purpose of

3-14  calculating the construction tax pursuant to this paragraph, the city

3-15  council of the city or the board of county commissioners of the county

3-16  shall adopt an ordinance basing the valuation of building permits on the

3-17  actual costs of nonresidential construction in the area.

3-18    3.  The purpose of the tax imposed pursuant to this section is to raise

3-19  revenue to enable the cities and counties to provide neighborhood parks ,

3-20  regional parks and facilities for parks which are required by [the residents

3-21  of those apartment houses, mobile homes and residences.] or for the

3-22  benefit of persons who live or work in the communities and regions

3-23  comprising those cities and counties.

3-24    4.  An ordinance enacted pursuant to subsection 1 must establish the

3-25  procedures for collecting the tax, set its rate, and determine the purposes

3-26  for which the tax is to be used, subject to the restrictions and standards

3-27  provided in this chapter. The ordinance must, without limiting the general

3-28  powers conferred in this chapter, also include:

3-29    (a) Provisions for the creation, in accordance with the applicable master

3-30  plan, of park districts which would serve neighborhoods , regions or

3-31  communities of interest within the city or county.

3-32    (b) A provision for collecting the tax at the time of issuance of [a] :

3-33      (1) A building permit for the construction of [any] apartment houses ,

3-34  [or] residential dwelling units[, or a;] or nonresidential structures; or

3-35      (2) A lot development permit for the development of mobile home

3-36  lots.

3-37    5.  All [residential] construction taxes collected pursuant to the

3-38  provisions of this section and any ordinance enacted by a city council or

3-39  board of county commissioners, and all interest accrued on the money,

3-40  must be placed with the city treasurer or county treasurer in a special fund.

3-41  The money in the fund that is collected pursuant to paragraphs (a) and

3-42  (b) of subsection 2 must be accounted for separately from the money in

3-43  the fund collected pursuant to paragraph (c) of subsection 2.

3-44    6.  Except as otherwise provided in subsection [6,] 7, the money in the

3-45  fund which is collected pursuant to paragraphs (a) and (b) of subsection

3-46  2 may only be [used] :

3-47    (a) Used for the acquisition, improvement and expansion of

3-48  neighborhood parks or the installation of facilities in existing or

4-1  neighborhood parks in the city or county[. Money in the fund must be

4-2  expended] ; and

4-3    (b) Expended for the benefit of the neighborhood from which it was

4-4  collected.

4-5    [6.] 7.  Except as otherwise provided in subsection 9, the money in

4-6  the fund which is collected pursuant to paragraph (c) of subsection 2

4-7  may only be used for the acquisition, improvement and expansion of

4-8  regional parks which are located in or serve the city or county from

4-9  which it was collected.

4-10    8.  If a neighborhood park has not been developed or facilities have not

4-11  been installed in an existing park in the park district created to serve the

4-12  neighborhood in which the subdivision or development is located within 3

4-13  years after the date on which 75 percent of the residential dwelling units

4-14  authorized within that subdivision or development first became occupied,

4-15  all money paid by the subdivider or developer[,] pursuant to paragraph

4-16  (a) or (b) of subsection 2, together with interest at the rate at which the city

4-17  or county has invested the money in the fund, must be refunded to the

4-18  owners of the lots in the subdivision or development at the time of the

4-19  reversion on a pro rata basis.

4-20    [7.] 9.  If a regional park has not been developed or facilities have

4-21  not been installed in an existing regional park within 10 years after the

4-22  date on which 75 percent of the nonresidential structures first became

4-23  occupied, all money paid by the developer pursuant to paragraph (c) of

4-24  subsection 2, together with interest at the rate at which the city or county

4-25  has invested the money in the fund, must be refunded to the owners of

4-26  the property at the time of the reversion on a pro rata basis.

4-27    10.  The limitation of time established pursuant to [subsection 6]

4-28  subsections 8 and 9 is suspended for any period, not to exceed 1 year,

4-29  during which this state or the Federal Government takes any action to

4-30  protect the environment or an endangered species which prohibits, stops or

4-31  delays the development of a park or installation of facilities.

4-32    [8.  For the purposes of]

4-33    11.  As used in this section:

4-34    (a) “Facilities” means turf, trees, irrigation, playground apparatus,

4-35  playing fields, areas to be used for organized amateur sports, play areas,

4-36  picnic areas, horseshoe pits and other recreational equipment or

4-37  appurtenances designed to serve the [natural persons, families and small

4-38  groups from the neighborhood from which the tax was collected.] persons

4-39  who use the park in which the facilities are located.

4-40    (b) “Neighborhood park” means a site not exceeding 25 acres, designed

4-41  to serve the recreational and outdoor needs of the natural persons, families

4-42  and small groups[.] in the neighborhood from which the tax was

4-43  collected.

4-44    (c) “Regional park” means a site exceeding 25 acres, designed to

4-45  serve the outdoor needs of the region in which it is located.

 

 

 

 

5-1    Sec. 6.  NRS 278.4985 is hereby amended to read as follows:

5-2    278.4985  1.  The city council of any city or the board of county

5-3  commissioners of any county which has adopted a master plan as provided

5-4  in this chapter which includes future or present sites for parks and

5-5  playgrounds may require that:

5-6    (a) The developers of a planned unit development dedicate land as

5-7  provided by NRS 278.4979 [to 278.4981, inclusive;] , 278.498 and

5-8  278.4981; or

5-9    (b) A residential construction tax be imposed on the privilege of

5-10  constructing planned unit developments in the manner provided by NRS

5-11  278.4983,

5-12  if the ordinance defining and regulating planned unit developments in the

5-13  particular city or county imposes open space requirements less than those

5-14  required by the ordinance adopted pursuant to NRS 278.4981.

5-15    2.  If a requirement to dedicate land or pay a [residential] construction

5-16  tax is imposed on the construction of a planned unit development, the

5-17  planned unit development is eligible to receive a credit against the amount

5-18  of land to be dedicated or the amount of the [residential] construction tax

5-19  imposed, for the amount and value of the developed open space within the

5-20  planned unit development.

5-21    Sec. 7.  NRS 278.4987 is hereby amended to read as follows:

5-22    278.4987  1.  The requirement for dedication of land [under] pursuant

5-23  to NRS 278.4979 [to 278.4981, inclusive,] , 278.498 and 278.4981 and the

5-24  imposition of [the residential] a construction tax [under] pursuant to NRS

5-25  278.4983[,] are mutually exclusive as to any particular subdivision,

5-26  apartment house, mobile home lot , nonresidential structure or residential

5-27  dwelling unit which may be benefited or affected by any such requirement

5-28  or imposition.

5-29    2.  Any city council or board of county commissioners determining to

5-30  provide park or playground facilities [under the provisions of] pursuant to

5-31  NRS 278.497 to 278.4987, inclusive, shall elect, for any one period, to

5-32  follow only one of the procedures provided in these sections.

5-33    Sec. 8.  NRS 354.59891 is hereby amended to read as follows:

5-34    354.59891  1.  As used in this section:

5-35    (a) “Building permit basis” means the combination of the rate and the

5-36  valuation method used to calculate the total building permit fee.

5-37    (b) “Building permit” means the official document or certificate issued

5-38  by the building officer of a local government which authorizes the

5-39  construction of a structure.

5-40    (c) “Building permit fee” means the total fees that must be paid before

5-41  the issuance of a building permit, including , without limitation, all permit

5-42  fees and inspection fees. The term does not include, without limitation, fees

5-43  relating to water, sewer or other utilities, [residential] construction tax[,]

5-44  imposed pursuant to NRS 278.4983, residential construction tax imposed

5-45  pursuant to NRS 387.331, tax for the improvement of transportation

5-46  imposed pursuant to NRS 278.710, any fee imposed pursuant to NRS

5-47  244.386 or any amount expended to change the zoning of the property.

5-48    2.  Except as otherwise provided in subsections 3 and 4, a local

5-49  government shall not increase its building permit basis by more than an

6-1  amount equal to the building permit basis on June 30, 1989, multiplied by a

6-2  percentage equal to the percentage increase in the consumer price index

6-3  from January 1, 1988, to the January 1 next preceding the fiscal year for

6-4  which the calculation is made.

6-5    3.  A local government may submit an application to increase its

6-6  building permit basis by an amount greater than otherwise allowable

6-7  pursuant to subsection 2 to the Nevada tax commission. The Nevada tax

6-8  commission may allow the increase only if it finds that:

6-9    (a) Emergency conditions exist which impair the ability of the local

6-10  government to perform the basic functions for which it was created; or

6-11    (b) The building permit basis of the local government is substantially

6-12  below that of other local governments in the state and the cost of providing

6-13  the services associated with the issuance of building permits in the

6-14  previous fiscal year exceeded the total revenue received from building

6-15  permit fees, excluding any amount of residential construction tax collected,

6-16  for that fiscal year.

6-17    4.  Upon application by a local government, the Nevada tax

6-18  commission shall exempt the local government from the limitation on the

6-19  increase of its building permit basis if:

6-20    (a) The local government creates an enterprise fund exclusively for fees

6-21  for building permits;

6-22    (b) Any interest or other income earned on the money in the enterprise

6-23  fund is credited to the fund; and

6-24    (c) The local government does not use any of the money in the

6-25  enterprise fund for any purpose other than the actual direct and indirect

6-26  costs of the program for the issuance of building permits, including ,

6-27  without limitation, the cost of checking plans, issuing permits, inspecting

6-28  buildings and administering the program. The executive director of the

6-29  department of taxation shall adopt regulations governing the permissible

6-30  expenditures from an enterprise fund pursuant to this paragraph.

 

6-31  H