SB221_EN

Senate Bill No. 221–Committee on Natural Resources

CHAPTER..........

AN ACT relating to taxation; authorizing the City Council of the City of Reno to increase the tax on the rental of transient lodging and levy special assessments in a certain area of the City of Reno to pay the costs of certain capital improvement projects; and providing other matters properly relating thereto.

Whereas, The Legislature hereby finds and declares that a general law cannot be made applicable for all provisions of this act because of the economic and geographical diversity of the local governments of this state, the unique growth patterns in those local governments, the patterns of the business of tourism in Washoe County and the special conditions experienced in the City of Reno related to the need to revitalize specific areas of downtown Reno to promote tourism; now, therefore,

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 432, Statutes of Nevada 1999, at page 2011, is

hereby amended by adding thereto a new section to be designated as

section 6.5, immediately following section 6, to read as follows:

Sec. 6.5. 1. The City Council of the City of Reno may by

ordinance create a local improvement district and levy special

assessments within that district to provide money to acquire,

establish, construct, expand, equip, improve, operate and maintain

capital improvement projects which have been approved by the

Truckee Meadows Tourism Facility and Revitalization Steering

Committee pursuant to subsection 2 of section 6 of this act. If the

City Council creates a local improvement district pursuant to this

subsection:

(a) Except as otherwise provided in this section, the creation of

the local improvement district and the levying of the special

assessments within that district must be carried out in the manner

provided for a street beautification project in chapter 271 of NRS;

and

(b) The boundaries of the local improvement district must be as

prescribed by the City Council in the ordinance creating the district,

except that the boundaries must include only property that is located

in or within 4 city blocks, as determined by the City Council, of a

district described in NRS 268.780 to 268.785, inclusive, in which a 1

percent tax is imposed on the gross receipts from the rental of

transient lodging for railroad grade separation projects.

2. Any special assessments levied pursuant to this section must

be apportioned based on the special benefit derived by the property

being assessed from the capital improvement project for which the

assessment is being levied. The City Council may use one or any

combination of the following methods that, in the determination of

the City Council, reflects most accurately the special benefits

derived by the property so assessed:

(a) A method by which the assessment or a portion thereof is

proportionate to the assessed value of the property for purposes of

ad valorem taxation, as that value may change from year to year;

(b) A method by which the assessment or a portion thereof is

proportionate to the number of rooms for which the owner of the

property pays the tax on the rental of transient lodging, as that

number of rooms may change from year to year;

proportionate to, or otherwise related to, the distance of the property

from the project for which the assessment is being levied; or

(d) A method by which the assessment or a portion thereof is

proportionate to the gross or net square footage of the property that

is used for retail sales, gaming, transient lodging or for any other

purpose determined by the City Council to be specially benefited by

the project for which the assessment is being levied, as that square

footage may change from year to year.

3. The City Council may determine that certain uses of property

will not be specially benefited by a capital improvement project for

which the local improvement district is being created. If the City

Council makes such a determination, the City Council shall set forth

in the ordinance creating the local improvement district:

(a) The uses of property that the City Council has determined will

not be specially benefited by a capital improvement project for

which the local improvement district is being created;

(b) A date in each year after the creation of the local

improvement district on which the City Council will determine

whether each property within the local improvement district is being

used, in whole or in part, for such a specified nonbenefited use;

nonbenefited use will be assessed and, if so, whether and in what

manner the assessment will be reduced to reflect the specified

nonbenefited use; and

(d) Any other matter that the City Council determines is

necessary or desirable in connection with the assessment of

properties based in whole or in part on the use of the properties on

the date in each year established pursuant to paragraph (b).

4. The assessments set forth in the assessment roll with regard

to which a hearing is held pursuant to NRS 271.380 must reflect the

adjustments, if any, made to assessments based on the use of a

property, in whole or in part, for one or more of the nonbenefited

uses specified in the ordinance creating the local improvement

district pursuant to subsection 3. In addition to the requirements of

subsection 2 of NRS 271.380, the notice of hearing must state that:

(a) Any adjustment to the assessments based on the uses made of

certain properties as of the date specified pursuant to paragraph (b)

of subsection 3 are shown on the assessment roll; and

(b) A person who objects to the assessment roll, an adjustment to

the assessment roll or any determination made by the City Council

in connection with the assessment roll or an adjustment thereto

must file an objection in writing in the manner and within the

period prescribed by paragraph (e) of subsection 2 of NRS 271.380

and if he fails to do so, his objection shall be deemed waived.

5. Notwithstanding the method or methods of apportionment

selected pursuant to subsection 2, the City Council shall, if it

determines that an equitable adjustment is appropriate, make an

equitable adjustment to an assessment against an irregularly shaped

property for which the selected method or methods of apportionment

do not result in an assessment that is in proportion to the special

benefit that the property derives from the project for which the

assessment is being levied.

6. An assessment apportioned pursuant to the method described

in paragraph (a) of subsection 2 must not be considered a property

tax for the purpose of any limitation on the rate of property taxation.

7. The following determinations made by the City Council are

conclusive in the absence of fraud or a gross abuse of discretion:

(a) The boundaries of the local improvement district, the

specification of uses of properties that are not specially benefited by

a capital improvement project for which the assessments are being

levied, the method or methods of apportioning the assessments and

the special benefits to be derived from the project by the properties

being assessed, as made after a hearing on the provisional order for

the local improvement district as provided in chapter 271 of NRS;

and

(b) The apportionment of the assessments against properties in

the local improvement district in each year after the creation of the

local improvement district, whether or not a property is being used,

in whole or in part, for a use that is specified in the ordinance

creating the local improvement district as a use which is not

specially benefited by the capital improvement project for which the

assessments are being levied and any other matter concerning the

amounts of the assessments against properties, as made after the

hearing held on the assessments in the manner provided in NRS

271.378.

Sec. 2. Section 1 of chapter 432, Statutes of Nevada 1999, at page

2012, is hereby amended to read as follows:

Section 1. 1. A tax at the rate of:

(a) Three percent of the gross receipts from the rental of transient

lodging is hereby imposed in:

(1) The unincorporated area of Washoe County; and

(2) Each incorporated city in Washoe County, except in a

district described in NRS 268.780 to 268.785, inclusive, in which a 1

percent tax is imposed on the gross receipts from the rental of

transient lodging for railroad grade separation projects.

(b) Two percent of the gross receipts from the rental of transient

lodging is hereby imposed in a district described in NRS 268.780 to

268.785, inclusive, in which a 1 percent tax is imposed on the gross

receipts from the rental of transient lodging for railroad grade

separation projects.

rental of transient lodging is hereby authorized to be imposed by the

City Council of the City of Reno on or after July 1, 2001, in an area

determined by the City Council to specially benefit from the capital

improvement projects financed by bonds issued by the Reno

Redevelopment Agency pursuant to section 2 of this act. Such an

area may include only property located in or within 4 city blocks, as

determined by the City Council, of the district described in

paragraph (b). The determination of the City Council of such an

area is conclusive in the absence of fraud or a gross abuse of

discretion.

2. The [tax] taxes imposed pursuant to this section must:

(a) Be in addition to all other taxes imposed on the revenue from

the rental of transient lodging in Washoe County and the incorporated

cities in Washoe County;

(b) Be collected and enforced in the same manner as provided for

the collection of the tax imposed by NRS 244.3352;

which shall distribute the proceeds from the [tax] taxes in the manner

set forth in section 2 of this act; and

(d) Not be collected after the date on which the notes, bonds and

other obligations described in subsections 1 and 2 of section 2 of this

act have been fully paid.

3. All decisions, and any deliberations leading to those decisions,

that are made by any body, including, without limitation, the

Reno/Sparks Convention and Visitors Authority, the Truckee

Meadows Tourism Facility and Revitalization Steering Committee

and the Sparks Tourism and Marketing Committee, concerning the

expenditure, commitment or other use of money derived from the

proceeds of the [tax] taxes imposed pursuant to this section must be

made at a public meeting that complies with the provisions of chapter

241 of NRS, whether or not the body is determined to be a public

body to which that chapter is applicable.

4. As used in this section, “gross receipts from the rental of

transient lodging” does not include the tax imposed or collected from

paying guests pursuant to this section.

Sec. 3. Section 2 of chapter 432, Statutes of Nevada 1999, at page

2012, is hereby amended to read as follows:

Sec. 2. The proceeds of the [tax] taxes imposed pursuant to

section 1 of this act and any applicable penalty or interest must be

distributed as follows:

1. An amount equal to:

(a) Two-thirds of the proceeds of the tax imposed pursuant to

paragraph (a) of subsection 1 of section 1 of this act collected in:

(1) The unincorporated area of Washoe County; and

(2) Each incorporated city in Washoe County, except in a

district described in NRS 268.780 to 268.785, inclusive, in which a 1

percent tax is imposed on the gross receipts from the rental of

transient lodging for railroad grade separation projects; and

(b) All of the proceeds of the tax imposed pursuant to paragraph

(b) of subsection 1 of section 1 of this act collected in a district

described in NRS 268.780 to 268.785, inclusive, in which a 1 percent

tax is imposed on the gross receipts from the rental of transient

lodging for railroad grade separation projects,

must be used by the Reno/Sparks Convention and Visitors Authority

to reconstruct, expand, improve, equip, operate and maintain the

Reno/Sparks Convention Center, including, but not limited to, parking

and facilities ancillary to the Reno/Sparks Convention Center and the

acquisition of real property and other appurtenances therefor. The

Reno/Sparks Convention and Visitors Authority may irrevocably

pledge and use any money received from the proceeds of the [tax]

taxes pursuant to this subsection, together with the proceeds of other

tax revenues and facilities revenues received by the Reno/Sparks

Convention and Visitors Authority legally available therefor, for the

payment of general and special obligations issued for the purpose of

reconstructing, expanding, improving and equipping the Reno/Sparks

Convention Center, including, but not limited to, parking and facilities

ancillary to the Reno/Sparks Convention Center and the acquisition of

real property and other appurtenances therefor.

2. From the remaining one-third of the proceeds of the tax

imposed pursuant to paragraph (a) of subsection 1 of section 1 of

this act collected in the area described in subparagraphs (1) and (2) of

paragraph (a) of subsection 1, the sum of $1,500,000 and, beginning

June 1, 2000, and each year thereafter, an additional amount equal to

$1,500,000 multiplied by the percentage by which the proceeds of the

[tax] taxes imposed pursuant to paragraphs (a) and (b) of subsection

1 of section 1 of this act increased during the immediately preceding

12-month period, if any, must be used as follows:

(a) Two-thirds for the marketing and promotion of tourism as

approved by the Reno/Sparks Convention and Visitors Authority; and

(b) One-third for the support of the National Bowling

Stadium,

until such time as the Truckee Meadows Tourism Facility and

Revitalization Steering Committee identifies particular capital

improvement projects pursuant to section 6 of this act. After the

Truckee Meadows Tourism Facility and Revitalization Steering

Committee identifies particular capital improvement projects pursuant

to section 6 of this act, the money described in this subsection and all

of the proceeds of the tax imposed pursuant to paragraph (c) of

subsection 1 of section 1 of this act must, notwithstanding the

provisions of NRS 279.619, be used to acquire, establish, construct,

expand , [and] equip , improve, operate and maintain such projects,

and to pay the principal and interest on notes, bonds or other

obligations issued by the Reno Redevelopment Agency to fund the

acquisition, establishment, construction or expansion of the projects

so identified.

3. From the remaining one-third of the proceeds of the tax

imposed pursuant to paragraph (a) of subsection 1 of section 1 of

this act collected in the area described in subparagraphs (1) and (2) of

paragraph (a) of subsection 1, if any, after the amount described in

subsection 2 is set aside for use pursuant to that subsection, the

amounts set forth in this subsection must be paid to the City Council

of the City of Sparks on the dates set forth in this subsection to be

used by the City Council and the Sparks Tourism and Marketing

Committee for the marketing and promotion of tourism in the City of

Sparks and for the operation and maintenance of capital

improvements within redevelopment areas in the City of Sparks:

(a) On July 1, 2000, an amount not to exceed $100,000.

(b) On July 1, 2001, an amount not to exceed $100,000.

(d) On July 1, 2003, an amount not to exceed $200,000.

(e) On July 1, 2004, an amount not to exceed $250,000.

(f) On July 1, 2005, an amount not to exceed $250,000.

(g) On July 1, 2006, an amount not to exceed $350,000.

(h) On July 1, 2007, and each year thereafter, an amount equal to

the sum of $350,000 plus an additional amount equal to $350,000

multiplied by the percentage by which the proceeds of the [tax] taxes

imposed pursuant to paragraphs (a) and (b) of subsection 1 of

section 1 of this act increased during the immediately preceding

12-month period, if any.

4. The remainder of the one-third of the proceeds of the tax

imposed pursuant to paragraph (a) of subsection 1 of section 1 of

this act collected in the area described in subparagraphs (1) and (2) of

paragraph (a) of subsection 1, if any, after the amounts described in

subsections 2 and 3 are set aside for use pursuant to those subsections,

must be distributed in the following manner:

(a) Two‑thirds to the Reno/Sparks Convention and Visitors

Authority to reconstruct, expand, improve, equip, operate and

maintain the Reno/Sparks Convention Center, including, but not

limited to, parking and facilities ancillary to the Reno/Sparks

Convention Center and the acquisition of real property and other

appurtenances therefor and the payment of general and special

obligations issued for those purposes.

(b) One‑third to be used as set forth in subsection 2.

Sec. 4. Section 6 of chapter 432, Statutes of Nevada 1999, at page

2015, is hereby amended to read as follows:

Sec. 6. 1. The Truckee Meadows Tourism Facility and

Revitalization Steering Committee shall develop a master plan which

identifies:

(a) Proposed capital improvement projects that the Committee

determines to be advisable to promote tourism in Washoe County; and

(b) The method or methods pursuant to which the proposed capital

improvement projects identified in paragraph (a) will be financed.

2. Capital improvement projects identified pursuant to this section

must be:

(a) Approved by a two-thirds vote of the members of the

Committee; and

(b) Located in or within 2 city blocks, as determined by the

Committee, of a district described in NRS 268.780 to 268.785,

inclusive, in which a 1 percent tax is imposed on the gross receipts

from the rental of transient lodging for railroad grade separation

projects.

3. The Reno Redevelopment Agency may enter into a contract

with an entity whose members, shareholders or partners include, or

that is owned or controlled by, one or more of the businesses located

in or within 4 city blocks, as determined by the City Council of the

City of Reno, of the district described in paragraph (b) of subsection

2 pursuant to which the entity is authorized to acquire, establish,

construct, expand, equip, improve, own, operate and maintain

capital improvement projects identified pursuant to this section. The

provisions of any law requiring competitive bidding, including,

without limitation, chapters 279, 332 and 338 of NRS, do not apply

to:

(a) A contract entered into pursuant to this subsection between

the Reno Redevelopment Agency and such an entity; or

(b) A contract pursuant to which such an entity acquires,

establishes, constructs, expands, equips, improves, owns, operates or

maintains a capital improvement project identified pursuant to this

section.

Sec. 5. This act becomes effective upon passage and approval.

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