Senate Bill No. 203–Committee on Government Affairs
(On Behalf of the Interim Study Concerning
Distribution
Among Local Governments of Revenue from
State and Local Taxes (NRS 218.53881))
February 20, 2001
____________
Referred to Committee on Taxation
SUMMARY—Makes various changes relating to ad valorem taxes to pay for operation of regional facilities. (BDR 31‑890)
FISCAL NOTE: Effect on Local Government: No.
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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; authorizing the boards of county commissioners of at least two counties to levy an ad valorem tax to pay the costs of operating a regional facility; exempting ad valorem taxes levied to pay the operating costs of certain regional facilities from the limitation upon revenue from ad valorem taxes; requiring an administrative entity created to operate a regional facility that receives revenue from ad valorem taxes levied to pay the costs of operating the regional facility to establish a fund for such revenue; 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. Chapter 354 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 5, inclusive, of this act.
1-3 Sec. 2. “Administrative entity” means an entity created pursuant to
1-4 an interlocal agreement or interlocal contract between two or more
1-5 counties to operate a regional facility.
1-6 Sec. 3. “Regional facility” means a facility that is used by each
1-7 county that levies a tax ad valorem for its operation pursuant to section 4
1-8 of this act and provides services related to public safety, health or
1-9 criminal justice. The term includes a regional facility for children as that
1-10 term is defined in NRS 62.845.
1-11 Sec. 4. 1. In addition to the allowed revenue from taxes ad valorem
1-12 determined pursuant to NRS 354.59811, the boards of county
1-13 commissioners of at least two counties may levy a tax ad valorem on all
1-14 taxable property in their respective counties at a rate not to exceed 5
2-1 cents per $100 of the assessed valuation of each county to pay the costs
2-2 of operating a regional facility.
2-3 2. Counties that levy a tax ad valorem pursuant to subsection 1 may
2-4 enter into an interlocal agreement or interlocal contract to create an
2-5 administrative entity to operate a regional facility.
2-6 3. The revenue of a tax collected pursuant to this section must be
2-7 remitted on the first day of the first month of each calendar quarter to:
2-8 (a) If the regional facility is operated by a county, the treasurer of the
2-9 county; or
2-10 (b) If the regional facility for children is operated by an administrative
2-11 entity, the administrative entity.
2-12 4. By the end of each fiscal year, the board of county commissioners
2-13 of each county that levies a tax pursuant to this section must determine
2-14 the rate of tax required to produce revenue in an amount which is
2-15 sufficient to pay the operating costs of the regional facility for the
2-16 ensuing fiscal year. When calculating a rate pursuant to this section, the
2-17 board of county commissioners of each county shall consider the amount
2-18 of money remaining in the fund created pursuant to section 5 of this act,
2-19 if such a fund is created, unless the amount of money remaining in the
2-20 fund is 10 percent or less of the revenue deposited for the current fiscal
2-21 year.
2-22 Sec. 5. 1. If two or more counties create an administrative entity
2-23 pursuant to section 4 of this act, the administrative entity shall establish a
2-24 separate fund to account for the revenue received from taxes levied
2-25 pursuant to section 4 of this act.
2-26 2. The money in the fund may only be withdrawn by the
2-27 administrative entity and must be used only to pay the expenses of
2-28 operating the regional facility that is operated by the administrative
2-29 entity.
2-30 3. All interest and income from money deposited in the fund must be
2-31 credited to the fund.
2-32 4. The annual budget and audit report of an administrative entity
2-33 that establishes a fund pursuant to this section must:
2-34 (a) Identify the fund;
2-35 (b) Indicate in detail all revenue received for the year;
2-36 (c) Indicate in detail all expenses for the year which were paid with
2-37 money from the fund; and
2-38 (d) Specifically identify any planned accumulation of money in the
2-39 fund.
2-40 5. Money remaining in the fund at the end of a fiscal year must not
2-41 revert to any other fund.
2-42 6. Upon termination of an interlocal agreement or interlocal contract
2-43 that creates an administrative entity, the money remaining in a fund
2-44 established pursuant to this section must be transmitted to the treasurer
2-45 of each county which was a party to the interlocal agreement or
2-46 interlocal contract and which levied a tax pursuant to section 4 of this
2-47 act. Each county that is entitled to receive a portion of the money
2-48 remaining in the fund must receive an amount equal to the same
2-49 proportion of the total amount of revenue the county contributed to the
3-1 fund. A county that receives money pursuant to this section shall deposit
3-2 the money in a fund established pursuant to NRS 354.6113 or 354.6115
3-3 for use in the same manner as other money deposited in that fund.
3-4 7. Nothing in this section may be construed to require a board of
3-5 county commissioners that is a party to an interlocal agreement or
3-6 interlocal contract to levy a tax pursuant to section 4 of this act.
3-7 Sec. 6. NRS 354.476 is hereby amended to read as follows:
3-8 354.476 As used in NRS 354.470 to 354.626, inclusive, and sections 2
3-9 to 5, inclusive, of this act, unless the context otherwise requires, the words
3-10 and terms defined in NRS 354.478 to 354.580, inclusive, and sections 2
3-11 and 3 of this act have the meanings ascribed to them in those sections.
3-12 Sec. 7. NRS 354.59811 is hereby amended to read as follows:
3-13 354.59811 1. Except as otherwise provided in NRS 354.59813,
3-14 354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425,
3-15 450.760, 540A.265 and 543.600, and section 4 of this act, for each fiscal
3-16 year beginning on or after July 1, 1989, the maximum amount of money
3-17 that a local government, except a school district, a district to provide a
3-18 telephone number for emergencies, or a redevelopment agency, may
3-19 receive from taxes ad valorem, other than those attributable to the net
3-20 proceeds of minerals or those levied for the payment of bonded
3-21 indebtedness and interest thereon incurred as general long-term debt of the
3-22 issuer, or for the payment of obligations issued to pay the cost of a water
3-23 project pursuant to NRS 349.950, or for the payment of obligations under a
3-24 capital lease executed before April 30, 1981, must be calculated as follows:
3-25 (a) The rate must be set so that when applied to the current fiscal year’s
3-26 assessed valuation of all property which was on the preceding fiscal year’s
3-27 assessment roll, together with the assessed valuation of property on the
3-28 central assessment roll which was allocated to the local government, but
3-29 excluding any assessed valuation attributable to the net proceeds of
3-30 minerals, assessed valuation attributable to a redevelopment area and
3-31 assessed valuation of a fire protection district attributable to real property
3-32 which is transferred from private ownership to public ownership for the
3-33 purpose of conservation, it will produce 106 percent of the maximum
3-34 revenue allowable from taxes ad valorem for the preceding fiscal year,
3-35 except that the rate so determined must not be less than the rate allowed for
3-36 the previous fiscal year, except for any decrease attributable to the
3-37 imposition of a tax pursuant to NRS 354.59813 in the previous year.
3-38 (b) This rate must then be applied to the total assessed valuation,
3-39 excluding the assessed valuation attributable to the net proceeds of
3-40 minerals and the assessed valuation of a fire protection district attributable
3-41 to real property which is transferred from private ownership to public
3-42 ownership for the purpose of conservation but including new real property,
3-43 possessory interests and mobile homes, for the current fiscal year to
3-44 determine the allowed revenue from taxes ad valorem for the local
3-45 government.
3-46 2. As used in this section, “general long-term debt” does not include
3-47 debt created for medium-term obligations pursuant to NRS 350.085 to
3-48 350.095, inclusive.
4-1 Sec. 8. NRS 62.845 is hereby amended to read as follows:
4-2 62.845 1. Except as otherwise provided in subsection 5, each county
4-3 shall pay an assessment for the operation of a regional facility for children
4-4 that serves the county if the facility:
4-5 (a) Is operated by a county whose population is less than 400,000 or an
4-6 administrative entity established pursuant to NRS 277.080 to 277.180,
4-7 inclusive, by counties whose populations are less than 400,000 each;
4-8 (b) Is established by two or more counties pursuant to an interlocal
4-9 agreement or by one county if the facility is operated pursuant to an
4-10 interlocal agreement to benefit other counties; and
4-11 (c) Is not partially supported by the State of Nevada and does not
4-12 receive money from the State of Nevada other than any fees paid to the
4-13 facility for a child referred to the facility by the State of Nevada.
4-14 2. The administrator of a regional facility for children shall calculate
4-15 the assessment owed by each county pursuant to subsection 1 on or before
4-16 March 1 of each year for the ensuing fiscal year. The assessment owed by
4-17 each county equals:
4-18 (a) For the first 2 years of operation of the regional facility for children,
4-19 the total amount budgeted for the operation of the facility by the governing
4-20 body of the county or other entity responsible for the operation of the
4-21 facility, minus any money received from the State of Nevada to pay for
4-22 fees for a child referred to the facility by the State of Nevada, divided by
4-23 the total number of pupils in the preceding school year in all counties
4-24 served by the facility and multiplied by the number of pupils in the
4-25 preceding school year in the assessed county.
4-26 (b) For each year subsequent to the second year of operation of the
4-27 regional facility for children, unless the counties served by the facility enter
4-28 into an interlocal agreement to the contrary, the total of:
4-29 (1) The total amount budgeted for the operation of the facility by the
4-30 governing body of the county or other entity responsible for the operation
4-31 of the facility, minus any money received from the State of Nevada to pay
4-32 for fees for a child referred to the facility by the State of Nevada, divided
4-33 by the total number of pupils in the preceding school year in all counties
4-34 served by the facility, multiplied by the number of pupils in the preceding
4-35 school year in the assessed county and multiplied by one-fourth; and
4-36 (2) The total amount budgeted for the operation of the facility by the
4-37 governing body of the county or other entity responsible for the operation
4-38 of the facility, minus any money received from the State of Nevada to pay
4-39 for fees for a child referred to the facility by the State of Nevada, divided
4-40 by the total number of pupils who were served by the facility in the
4-41 preceding school year from all counties served by the facility, multiplied
4-42 by the number of pupils who were served by the facility in the preceding
4-43 school year from the assessed county and multiplied by three-fourths.
4-44 3. Each county shall pay the assessment required pursuant to
4-45 subsection 1 to the treasurer of the county if the facility is operated by a
4-46 county or to the administrative entity responsible for the operation of the
4-47 regional facility for children in quarterly installments that are due on the
4-48 first day of the first month of each calendar quarter. The money must be
5-1 accounted for separately and may only be withdrawn by the administrator
5-2 of the regional facility for children.
5-3 4. The board of county commissioners of each county may [levy an ad
5-4 valorem tax of not more than 5 cents on each $100 of assessed valuation
5-5 upon all taxable property in the county to pay the assessment required
5-6 pursuant to subsection 1. The county may] pay the assessment from
5-7 revenue raised by a tax levied pursuant to [this subsection,] section 4 of
5-8 this act, any other available money , or a combination thereof. [Revenue
5-9 raised by a county to pay the assessment required pursuant to subsection 1
5-10 is not subject to the limitations on revenue imposed pursuant to chapter 354
5-11 of NRS and must not be included in the calculation of those limitations.]
5-12 5. The provisions of this section do not apply to a county whose
5-13 population is 400,000 or more.
5-14 6. As used in this section, “regional facility for children” means an
5-15 institution that provides for the temporary care, custody, control and
5-16 treatment of a child under the jurisdiction of a juvenile court who is
5-17 detained because he was found violating a law or ordinance, adjudicated
5-18 delinquent or determined to be in need of supervision. The term includes,
5-19 without limitation, the institution in Lyon County known as Western
5-20 Nevada Regional Youth Facility.
5-21 Sec. 9. This act becomes effective on July 1, 2001.
5-22 H