Senate Bill No. 227–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 21, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Revises and repeals provisions that exempt certain property from taxation. (BDR 32‑892)

 

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 taxation; revising the requirements for certain property of recycling businesses to be exempt from taxation; repealing the provisions that exempt from taxation certain property of recycling businesses; repealing the provisions that exempt from taxation certain property of businesses that use a facility for the production of electrical energy from solar energy; 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 361.0685 is hereby amended to read as follows:

1-2    361.0685  1.  Except as otherwise provided in this section, if a:

1-3    (a) Business that engages in the primary trade of preparing, fabricating,

1-4  manufacturing or otherwise processing raw material or an intermediate

1-5  product through a process in which at least 50 percent of the material or

1-6  product is recycled on site; or

1-7    (b) Business that includes as a primary component a facility for the

1-8  production of electrical energy from recycled material,

1-9  is found by the commission on economic development , on or before
July 1, 2001, to have as a primary purpose the conservation of energy or

1-10  the substitution of other sources of energy for fossil sources of energy and

1-11  obtains certification from the commission on economic development

1-12  pursuant to NRS 231.139, 75 percent of the personal and real property of

1-13  the business is exempt from taxation.

2-1    2.  Before an exemption may be granted pursuant to subsection 1, the

2-2  business must execute an agreement with the commission on economic

2-3  development which states that the business will continue in operation in

2-4  this state for 30 or more years after the date on which the exemption is

2-5  granted. The agreement must bind the successors in interest of the

2-6  business. The exemption pursuant to this section continues until the

2-7  expiration of the period for which the exemption was granted or until the

2-8  business discontinues in operation in this state, whichever occurs first.

2-9    3.  The exemption provided in this section applies only to the business

2-10  for which certification was granted pursuant to NRS 231.139 and the

2-11  property used in connection with that business. The exemption does not

2-12  apply to property in this state that is not related to the business for which

2-13  the certification was granted pursuant to NRS 231.139 or to property in

2-14  existence and subject to taxation before the certification was granted.

2-15    4.  Personal property exempted pursuant to subsection 1 may not

2-16  receive an exemption for more than 10 consecutive years[.] after the date

2-17  the exemption was originally granted. Real property exempted pursuant to

2-18  subsection 1 may not receive an exemption for more than 20 consecutive

2-19  years[.] after the date the exemption was originally granted.

2-20    5.  As used in this section, a “facility for the production of electrical

2-21  energy from recycled material” is a facility which uses recycled material as

2-22  its primary fuel including material from:

2-23    (a) Industrial or domestic waste, other than hazardous waste, even

2-24  though it includes a product made from oil, natural gas or coal, such as

2-25  plastics, asphalt shingles or tires;

2-26    (b) Agricultural crops, whether terrestrial or aquatic, and agricultural

2-27  waste, such as manure and residue from crops; and

2-28    (c) Municipal waste, such as sewage and sludge.

2-29  The term includes all the equipment in the facility used to process and

2-30  convert into electricity the energy derived from a recycled material fuel.

2-31    Sec. 2.  NRS 231.139 is hereby amended to read as follows:

2-32    231.139  1.  The commission on economic development shall certify a

2-33  business for the benefits provided pursuant to NRS 704.223 if the

2-34  commission finds that:

2-35    (a) The business is consistent with the state plan for industrial

2-36  development and diversification and any guidelines adopted pursuant to the

2-37  plan;

2-38    (b) The business is engaged in the primary trade of preparing,

2-39  fabricating, manufacturing or otherwise processing raw material or an

2-40  intermediate product through a process in which at least 50 percent of the

2-41  material or product is recycled on site;

2-42    (c) Establishing the business will require the business to make a capital

2-43  investment of $50,000,000 in Nevada; and

2-44    (d) The economic benefit to the state of approving the certification

2-45  exceeds the cost to the state.

2-46    2.  [The commission on economic development shall certify a business

2-47  for the benefits provided pursuant to NRS 361.0685 if the commission

2-48  finds that:

3-1    (a) The business is consistent with the state plan for industrial

3-2  development and diversification and any guidelines adopted pursuant to the

3-3  plan;

3-4    (b) Establishing the business will require the business to make a capital

3-5  investment of $15,000,000 in Nevada; and

3-6    (c) The economic benefit to the state of approving the certification

3-7  exceeds the cost to the state.

3-8    3.] The commission on economic development may:

3-9    (a) Request an allocation from the contingency fund pursuant to NRS

3-10  353.266, 353.268 and 353.269 to cover the costs incurred by the

3-11  commission pursuant to this section and NRS 704.032.

3-12    (b) Impose a reasonable fee for an application for certification pursuant

3-13  to this section to cover the costs incurred by the commission in

3-14  investigating and ruling on the application.

3-15    (c) Adopt such regulations as it deems necessary to carry out the

3-16  provisions of this section.

3-17    Sec. 3.  1.  NRS 361.0685 is hereby repealed.

3-18    2.  NRS 361.0785 is hereby repealed.

3-19    Sec. 4.  1.  This section, section 1 and subsection 2 of section 3

3-20  become effective on July 1, 2001.

3-21    2.  Section 2 and subsection 1 of section 3 of this act become effective

3-22  on July 1, 2021.

 

3-23  TEXT OF REPEALED SECTIONS

 

3-24    361.0685  Exemption of percentage of personal and real property

3-25   of certain businesses certified by commission on economic

3-26   development.

3-27    361.0685  1.  Except as otherwise provided in this section, if a:

3-28    (a) Business that engages in the primary trade of preparing, fabricating,

3-29   manufacturing or otherwise processing raw material or an intermediate

3-30   product through a process in which at least 50 percent of the material or

3-31   product is recycled on site; or

3-32    (b) Business that includes as a primary component a facility for the

3-33   production of electrical energy from recycled material,

3-34  is found by the commission on economic development, on or before July 1,

3-35   2001, to have as a primary purpose the conservation of energy or the

3-36   substitution of other sources of energy for fossil sources of energy and

3-37   obtains certification from the commission on economic development

3-38   pursuant to NRS 231.139, 75 percent of the personal and real property of

3-39   the business is exempt from taxation.

3-40    2.  Before an exemption may be granted pursuant to subsection 1, the

3-41   business must execute an agreement with the commission on economic

3-42   development which states that the business will continue in operation in

3-43   this state for 30 or more years after the date on which the exemption is

3-44   granted. The agreement must bind the successors in interest of the

3-45   business. The exemption pursuant to this section continues until the

4-1  expiration of the period for which the exemption was granted or until the

4-2  business discontinues in operation in this state, whichever occurs first.

4-3    3.  The exemption provided in this section applies only to the business

4-4   for which certification was granted pursuant to NRS 231.139 and the

4-5   property used in connection with that business. The exemption does not

4-6   apply to property in this state that is not related to the business for which

4-7   the certification was granted pursuant to NRS 231.139 or to property in

4-8   existence and subject to taxation before the certification was granted.

4-9    4.  Personal property exempted pursuant to subsection 1 may not

4-10   receive an exemption for more than 10 consecutive years after the date the

4-11   exemption was originally granted. Real property exempted pursuant to

4-12   subsection 1 may not receive an exemption for more than 20 consecutive

4-13   years after the date the exemption was originally granted.

4-14    5.  As used in this section, a “facility for the production of electrical

4-15   energy from recycled material” is a facility which uses recycled material

4-16   as its primary fuel including material from:

4-17    (a) Industrial or domestic waste, other than hazardous waste, even

4-18   though it includes a product made from oil, natural gas or coal, such as

4-19   plastics, asphalt shingles or tires;

4-20    (b) Agricultural crops, whether terrestrial or aquatic, and agricultural

4-21   waste, such as manure and residue from crops; and

4-22    (c) Municipal waste, such as sewage and sludge.

4-23  The term includes all the equipment in the facility used to process and

4-24   convert into electricity the energy derived from a recycled material fuel.

4-25    361.0785  Exemption of property used as facility for production of

4-26   electrical energy from solar energy.

4-27    1.  Except as otherwise provided in this section, all property, both real

4-28   and personal, is exempt from taxation as set forth in this section to the

4-29   extent that the property is used as a facility for the production of electrical

4-30   energy from solar energy.

4-31    2.  Personal property exempted pursuant to subsection 1 may not

4-32   receive an exemption for more than 10 consecutive years.

4-33    3.  Real property exempted pursuant to subsection 1 may not receive an

4-34   exemption for more than 20 consecutive years.

4-35    4.  The provisions of this section do not apply to:

4-36    (a) Residential property; and

4-37    (b) Property that is used as a facility for the production of electrical

4-38   energy from solar energy before July 1, 1997.

4-39    5.  As used in this section, “facility for the production of electrical

4-40   energy from solar energy” means a facility which uses solar energy as its

4-41   primary fuel in the production of electricity. The term includes all the

4-42   equipment in the facility used to collect, store and convert into electricity

4-43   the energy derived from solar energy.

 

4-44  H