Senate Bill No. 266–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))

 

March 1, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Creates chapter relating to tax increment areas. (BDR 22‑891)

 

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; providing provisions for the creation of tax increment areas by municipalities to defray costs of certain undertakings; 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. Title 22 of NRS is hereby amended by adding thereto a

1-2  new chapter to consist of the provisions set forth as sections 2 to 33,

1-3  inclusive, of this act.

1-4    Sec. 2.  Except as otherwise provided in this chapter or where the

1-5  context otherwise requires, terms used or referred to in this chapter are

1-6  as defined in the County Bond Law, insofar as they apply to counties,

1-7  and the City Bond Law, insofar as they apply to cities, and except as

1-8  otherwise provided in those laws, as defined in the Local Government

1-9  Securities Law, but the definitions provided in this chapter, except where

1-10  the context otherwise requires, govern the construction of this chapter.

1-11    Sec. 3.  “Clerk” means the county clerk or city clerk, as appropriate.

1-12    Sec. 4.  “Cost of the undertaking” or any phrase of similar import,

1-13  means the “cost of any project” as the latter phrase is defined in the

1-14  Local Government Securities Law.

1-15    Sec. 5.  “County” means any county in this state and Carson City.

1-16    Sec. 6.  “Engineer” means the municipal engineer or firm of

1-17  engineers employed by the municipality in connection with any

1-18  undertaking, any project or the exercise of any power authorized in this

1-19  chapter.

2-1    Sec. 7.  “Facilities” means buildings, structures, utilities or other

2-2  properties pertaining to any undertaking or any project authorized in this

2-3  chapter, including, without limitation, income-producing facilities and

2-4  facilities acquired with the proceeds of bonds or other securities.

2-5    Sec. 8.  “Governing body” means the board of county

2-6  commissioners, the board of supervisors, the city council or the board of

2-7  commissioners, as appropriate.

2-8    Sec. 9.  “Municipality” means any county or city in this state.

2-9    Sec. 10.  “Newspaper” means a newspaper printed in the English

2-10  language at least once each calendar week and published and of general

2-11  circulation in the municipality.

2-12    Sec. 11.  “Posting” means posting in three public places at or near

2-13  the site of the undertaking or any project designated at least 20 days

2-14  before the designated hearing or other time or event.

2-15    Sec. 12.  “Publication” or “publish” means publication in at least

2-16  one newspaper, except as otherwise expressly provided or necessarily

2-17  implied in this chapter, at least once a week for 3 consecutive weeks by

2-18  three weekly insertions, the first publication being at least 15 days before

2-19  the designated time or event.

2-20    Sec. 13.  “Tax increment account” means a special account created

2-21  pursuant to subsection 3 of section 24 of this act.

2-22    Sec. 14.  “Tax increment area” means the area:

2-23    1.  Whose boundaries are coterminous with those of a specially

2-24  benefited zone established as provided in section 17 of this act;

2-25    2.  Specially benefited by an undertaking under this chapter;

2-26    3.  Designated by ordinance as provided in subsection 3 of section 24

2-27  of this act; and

2-28    4.  In which is located the taxable property the assessed valuation of

2-29  which is the basis for the allocation of tax proceeds to the tax increment

2-30  account pursuant to section 26 of this act.

2-31    Sec. 15.  “Undertaking” means any enterprise to acquire, improve,

2-32  equip, operate or maintain, or a combination thereof, any:

2-33    1.  Project authorized in the County Bond Law, in the case of

2-34  counties; or

2-35    2.  Project for economic development that is needed to accommodate

2-36  expansion or retention of businesses or to develop industrial and

2-37  business parks that could not otherwise be accomplished through any

2-38  other method of financing, in the case of cities,

2-39  and to defray the cost of such enterprise wholly or in part by the issuance

2-40  of the bonds or other securities of the municipality payable wholly or in

2-41  part from tax proceeds allocated to the tax increment account pertaining

2-42  to the enterprise pursuant to section 26 of this act.

2-43    Sec. 16.  This chapter applies to:

2-44    1.  Any county in this state for any undertaking within the county;

2-45    2.  Any city in this state for undertakings which are economic

2-46  development projects that are needed to;

2-47    (a) Accommodate expansion or retention of businesses in the city; or

2-48    (b) Develop industrial and business parks,

3-1  that could not otherwise be accomplished through any other method of

3-2  financing.

3-3    Sec. 17.  1.  Except as otherwise provided in subsections 3, 4 and 5,

3-4  on its own, or upon the request of a regional transportation commission

3-5  established pursuant to NRS 273.030, a governing body of a county, on

3-6  the behalf and in the name of the county, may designate a tax increment

3-7  area comprising any specially benefited zone within the county

3-8  designated for the purpose of creating a special account for the payment

3-9  of bonds or other securities issued to defray the cost of the acquisition,

3-10  improvement, equipment, operation or maintenance, or any combination

3-11  thereof, of a project or projects authorized in the County Bond Law,

3-12  including, without limitation, the condemnation of property for any such

3-13  undertaking, as supplemented by the Local Government Securities Law,

3-14  except as otherwise provided in this chapter.

3-15    2.  Except as otherwise provided in subsections 3, 4 and 5, the

3-16  governing body of a city, on the behalf and in the name of the city, may

3-17  designate a tax increment area comprising any specially benefited zone

3-18  within the municipality designated for the purpose of creating a special

3-19  account for the payment of bonds or other securities issued to defray the

3-20  cost of the acquisition, improvement, equipment, operation or

3-21  maintenance, or any combination thereof, of a project or projects

3-22  described in subsection 2 of section 16 of this act.

3-23    3.  The right of way property of a railroad company that is under the

3-24  jurisdiction of the Surface Transportation Board must not be included in

3-25  a tax increment area unless the inclusion of the property is mutually

3-26  agreed upon by the governing body and the railroad company.

3-27    4.  A tax increment area may include property that is, at the time the

3-28  boundaries are created, included within a redevelopment area previously

3-29  established pursuant to the laws of this state. Upon expiration of a

3-30  redevelopment area that has property included within a tax increment

3-31  area established pursuant to this chapter, the tax increment formerly

3-32  inuring to the redevelopment area, calculated from the date of creation

3-33  of the tax increment area, inures to the benefit of the tax increment area.

3-34    5.  The taxable property of a tax increment area must not be included

3-35  in any subsequently created tax increment area until at least 50 years

3-36  after the effective date of creation of the first tax increment area in which

3-37  the property was included.

3-38    Sec. 18.  1.  Whenever the governing body is of the opinion that the

3-39  interests of the municipality require an undertaking, the governing body,

3-40  by resolution, shall direct the engineer to prepare:

3-41    (a) Preliminary plans and a preliminary estimate of the cost of the

3-42  undertaking, including, without limitation, all estimated financing costs

3-43  to be capitalized with the proceeds of the securities issued by the

3-44  municipality and all other estimated incidental costs relating to the

3-45  undertaking;

3-46    (b) A statement of the proposed tax increment area pertaining thereto,

3-47  the last finalized amount of the assessed valuation of the taxable property

3-48  in such area, and the amount of taxes, including in such amount the sum

3-49  of any unpaid taxes, whether or not delinquent, resulting from the last

4-1  taxation of the property, based upon the records of the county assessor

4-2  and the county treasurer; and

4-3    (c) A statement of the estimated amount of the tax proceeds to be

4-4  credited annually to the tax increment account during the term of the

4-5  proposed securities payable therefrom.

4-6    2.  The resolution must describe the undertaking in general terms

4-7  and must state:

4-8    (a) What portion of the expense of the undertaking will be paid with

4-9  the proceeds of securities issued by the municipality in anticipation of tax

4-10  proceeds to be credited to the tax increment account and payable wholly

4-11  or in part therefrom;

4-12    (b) How the remaining portion of the expense of the undertaking, if

4-13  any, is to be financed; and

4-14    (c) The basic security and any additional security for the payment of

4-15  securities of the municipality pertaining to the undertaking.

4-16    3.  The resolution must designate the tax increment area or its

4-17  location, so that the various tracts of taxable real property and any

4-18  taxable personal property can be identified and determined to be within

4-19  or without the proposed tax increment area, but need not describe in

4-20  minute detail each tract of real property proposed to be included within

4-21  the tax increment area.

4-22    4.  The engineer shall file with the clerk the preliminary plans,

4-23  estimate of costs and statements.

4-24    5.  Upon the filing of the preliminary plans, estimate of costs and

4-25  statements with the clerk, the governing body shall examine the

4-26  preliminary plans, estimate of costs and statements, and if the governing

4-27  body approves of the preliminary plans, estimate of costs and statements,

4-28  it shall by resolution provisionally order the undertaking.

4-29    Sec. 19.  1.  In the resolution making the provisional order, the

4-30  governing body shall set a time and place for a meeting to consider the

4-31  ordering of the undertaking and hear all complaints, protests, objections

4-32  and other relevant comments concerning the undertaking that are made

4-33  in accordance with subsection 2. The time for the meeting must be at

4-34  least 20 days after the date the governing body adopts the resolution that

4-35  provisionally orders the undertaking.

4-36    2.  The Federal Government, the state, any public body, or any

4-37  natural person who resides in the municipality or owns taxable personal

4-38  or real property in the municipality, or any representative of any such

4-39  natural person or entity, may submit a complaint, protest, objection or

4-40  other comment about the undertaking before the governing body. If such

4-41  an entity or person desires to submit a complaint, protest, objection or

4-42  other comment about the undertaking for consideration by the governing

4-43  body, the entity or person must:

4-44    (a) File a written complaint, protest, objection or other comment

4-45  about the undertaking with the clerk at least 3 days before the date of the

4-46  meeting described in subsection 1;

4-47    (b) Present an oral complaint, protest, objection or other comment

4-48  about the undertaking to the governing body at the meeting described in

4-49  subsection 1; or

5-1    (c) Present the complaint, protest, objection or other comment in the

5-2  manner required pursuant to paragraphs (a) and (b).

5-3    3.  Notice of the meeting described in subsection 1 must be given:

5-4    (a) To all persons on the list established pursuant to section 20 of this

5-5  act, by mailing;

5-6    (b) By posting; and

5-7    (c) By publication.

5-8    4.  The notice must:

5-9    (a) Describe the undertaking and the project or projects relating

5-10  thereto without mentioning minor details or incidentals;

5-11    (b) State the preliminary estimate of the cost of the undertaking,

5-12  including all incidental costs, as stated in the report of the engineer filed

5-13  with the clerk pursuant to section 18 of this act;

5-14    (c) Describe the proposed tax increment area pertaining to the

5-15  undertaking, the last finalized amount of the assessed valuation of the

5-16  taxable property in the area, and the amount of taxes, including in such

5-17  amount the sum of any unpaid taxes, whether or not delinquent,

5-18  resulting from the last taxation of the property, based upon the records of

5-19  the county assessor and the county treasurer;

5-20    (d) State what portion of the expense of the undertaking will be paid

5-21  with the proceeds of securities issued by the municipality in anticipation

5-22  of tax proceeds to be credited to the tax increment account and payable

5-23  wholly or in part therefrom, and state the basic security and any

5-24  additional security for the payment of securities of the municipality

5-25  pertaining to the undertaking;

5-26    (e) State how the remaining portion of the expense, if any, is to be

5-27  financed;

5-28    (f) State the estimated amount of the tax proceeds to be credited

5-29  annually to the tax increment account pertaining to the undertaking

5-30  during the term of the proposed securities payable from such proceeds,

5-31  and the estimated amount of any net revenues derived annually from the

5-32  operation of the project or projects pertaining to the undertaking and

5-33  pledged for the payment of those securities;

5-34    (g) State the estimated aggregate principal amount to be borrowed by

5-35  the issuance of the securities, excluding proceeds thereof to fund or

5-36  refund outstanding securities, and the estimated total bond requirements

5-37  of the securities;

5-38    (h) Find, determine and declare that the estimated tax proceeds to be

5-39  credited to the tax increment account and any such net pledged revenues

5-40  will be fully sufficient to pay the bond requirements of the securities as

5-41  they become due; and

5-42    (i) State the date, time and place of the meeting described in

5-43  subsection 1.

5-44    5.  All proceedings may be modified or rescinded wholly or in part by

5-45  resolution adopted by the governing body at any time before the

5-46  governing body passes the ordinance ordering the undertaking and

5-47  creating the tax increment area and the tax increment account

5-48  pertaining thereto pursuant to section 24 of this act.

6-1    6.  Except as otherwise provided in this section, a public body shall

6-2  not make a substantial change in the undertaking, the preliminary

6-3  estimates, the proposed tax increment area or other statements relating

6-4  thereto after the first publication or posting of notice or after the first

6-5  mailing of notice to the property owners, whichever occurs first, without

6-6  additional notice and a hearing pursuant to this section. A public body

6-7  may delete a portion of the undertaking and property from the proposed

6-8  tax increment area without notice and a hearing pursuant to this section.

6-9  A subsequent final determination of the amount of assessed valuation of

6-10  taxable property in the tax increment area or a subsequent levy of taxes

6-11  does not adversely affect proceedings taken pursuant to this chapter.

6-12    7.  The engineer may make minor changes in and develop the

6-13  undertaking as to the time, plans and materials entering into the

6-14  undertaking at any time before its completion.

6-15    Sec. 20.  1.  The governing body shall cause a list of the names and

6-16  addresses of all persons who reside within a proposed tax increment area

6-17  and who own taxable property within a proposed tax increment area to

6-18  be created. The names and addresses for the list may be obtained from

6-19  the records of the county assessor or from such other sources as the clerk

6-20  or the engineer deems available. A list of such names and addresses

6-21  pertaining to any tax increment area may be revised from time to time,

6-22  but must be revised at least once every 12 months if the list is needed for

6-23  a period longer than 12 months.

6-24    2.  If notice is required to be mailed pursuant to this chapter, the

6-25  notice must be sent by prepaid, first-class mail, to the last known address

6-26  of the person to whom the notice is being sent.

6-27    3.  The mailing of any notice required in this chapter must be verified

6-28  by the affidavit or certificate of the engineer, clerk, deputy or other

6-29  person mailing the notice. Each verification of mailing must be filed with

6-30  the clerk and be retained in the records of the municipality at least until

6-31  all bonds and any other securities pertaining to a tax increment account

6-32  have been paid in full, or any claim is barred by a statute of limitations.

6-33    4.  A verification of mailing is prima facie evidence of the mailing of

6-34  the notice in accordance with the requirements of this section.

6-35    Sec. 21.  1.  The posting of any notice required in this chapter must

6-36  be verified by the affidavit or certificate of the engineer, clerk, deputy or

6-37  other person posting the notice. Each verification of posting must be filed

6-38  with the clerk and must be retained in the records of the municipality at

6-39  least until the bonds and other securities pertaining to a tax increment

6-40  account have been paid in full and until any claim is barred by a statute

6-41  of limitations.

6-42    2.  A verification of posting is prima facie evidence of the posting of

6-43  the notice in accordance with the requirements of this section.

6-44    Sec. 22.  1.  Any notice required to be published pursuant to this

6-45  chapter must be published in a newspaper of general circulation within

6-46  the area of the tax increment area about which the notice relates at least

6-47  once a week for 3 consecutive weeks. The first publication must be at

6-48  least 15 days before the designated time or event, and the last publication

6-49  must be at least 14 days after the first publication.

7-1    2.  Publication is complete on the day of the last publication.

7-2    3.  Any publication required in this chapter must be verified by the

7-3  affidavit of the person who publishes the notice. Each verification of

7-4  publication must be filed with the clerk and must be retained in the

7-5  records of the municipality at least until all the bonds and any other

7-6  securities pertaining to a tax increment account have been paid in full, or

7-7  any claim is barred by a statute of limitations.

7-8    4.  A verification of publication is prima facie evidence of the

7-9  publication of the notice in accordance with the requirements of this

7-10  section.

7-11    Sec. 23.  1.  At the time and place of the hearing, the governing

7-12  body shall cause to be read and consider all written complaints, protests,

7-13  objections and other relevant comments made in accordance with section

7-14  19 of this act and to hear all oral complaints, protests, objections and

7-15  other relevant comments made pursuant to that section.

7-16    2.  After considering all written and oral complaints, protests,

7-17  objections and other relevant comments that were properly submitted and

7-18  after considering any other relevant material put forth, if the governing

7-19  body determines that the undertaking, or a part thereof, is not in the

7-20  public interest:

7-21    (a) The governing body, by resolution, shall make an order which

7-22  states that the undertaking or a part of the undertaking, as appropriate,

7-23  is not in the public interest and which states the reasons that the

7-24  undertaking, or part of the undertaking, is not in the public interest;

7-25    (b) The public body may, by resolution and in accordance with the

7-26  notice and hearing requirements of this chapter, modify the proposed tax

7-27  increment area or undertaking to conform to the order; and

7-28    (c) The undertaking or part of the undertaking, as appropriate, must

7-29  be stopped until the governing body adopts a new resolution for the

7-30  undertaking which conforms to the order.

7-31    3.  Any complaint, protest or objection to the regularity, validity and

7-32  correctness of the proceedings taken and the documents made before the

7-33  date of the hearing is waived unless presented in the manner specified in

7-34  this chapter.

7-35    Sec. 24.  1.  If, after considering all written and oral complaints,

7-36  protests, objections and other relevant comments that were properly

7-37  submitted and after considering any other relevant material put forth, the

7-38  governing body determines that the undertaking is in the public interest,

7-39  the governing body shall determine whether to proceed with the

7-40  undertaking. If the governing body has ordered any modification to an

7-41  undertaking and desires to proceed, it shall direct the engineer to modify

7-42  the plans, estimate of costs and statements, as appropriate.

7-43    2.  The engineer, if so directed, shall appropriately modify them and

7-44  file the modified plans, estimate of costs and statements, as appropriate,

7-45  with the clerk.

7-46    3.  When the plans, estimates and statements are filed with the clerk

7-47  and are satisfactory to the governing body, if the governing body wants to

7-48  proceed with the undertaking, the governing body shall, by ordinance:

8-1    (a) Overrule all complaints, protests and objections not otherwise

8-2  acted upon;

8-3    (b) Order the undertaking;

8-4    (c) Describe the tax increment area pertaining to the undertaking;

8-5  and

8-6    (d) Create the tax increment account for the undertaking.

8-7    4.  The governing body may adopt the ordinance in the same manner

8-8  as an emergency ordinance or in the same manner as a regular

8-9  ordinance.

8-10    Sec. 25.  1.  The governing body may amend an ordinance adopted

8-11  pursuant to section 24 of this act by adopting a supplemental ordinance,

8-12  introduced and adopted in the same manner as a regular ordinance, to:

8-13    (a) Modify the undertaking by specifying new projects or removing or

8-14  modifying projects specified in the original ordinance;

8-15    (b) Add areas to or remove areas from a tax increment area; and

8-16    (c) Make such other changes, additions or deletions as the governing

8-17  body determines will further its objectives within the tax increment area.

8-18    2.  If a proposed amendment would add any area to or remove any

8-19  area from a tax increment area, the governing body shall provide by mail

8-20  notice of the date, time and place of the meeting at which the proposed

8-21  amendment will be considered to the last known owner or owners of each

8-22  tract of land proposed to be added or removed.

8-23    3.  The amount of taxes to be allocated to a tax increment account

8-24  pursuant to section 26 of this act must be computed separately for the

8-25  original tax increment area and each addition of land thereto.

8-26    Sec. 26.  1.  After the effective date of the ordinance adopted

8-27  pursuant to section 24 of this act, any taxes levied upon taxable property

8-28  in the tax increment area each year by or for the benefit of the state, the

8-29  municipality and any public body must be divided as follows:

8-30    (a) That portion of the taxes that would be produced by the rate upon

8-31  which the tax is levied each year by or for each of those taxing agencies

8-32  upon the total sum of the assessed value of the taxable property in the tax

8-33  increment area as shown upon the assessment roll used in connection

8-34  with the taxation of the property by the taxing agency, last equalized

8-35  before the effective date of the ordinance, must be allocated to and when

8-36  collected must be paid into the funds of the respective taxing agencies as

8-37  taxes by or for the taxing agencies as taxes on all other property as paid.

8-38    (b) Except as otherwise provided in subsections 2 and 4, the portion of

8-39  the levied taxes each year in excess of that amount must be allocated to,

8-40  and when collected must be paid into, the tax increment account

8-41  pertaining to the undertaking to pay the bond requirements of loans,

8-42  money advanced to, or indebtedness, whether funded, refunded, assumed

8-43  or otherwise, incurred by the municipality to finance or refinance, in

8-44  whole or in part, the undertaking. Unless the total assessed valuation of

8-45  the taxable property in the tax increment area exceeds the total assessed

8-46  value of the taxable property in the area as shown by the last equalized

8-47  assessment roll referred to in subsection 1, all of the taxes levied and

8-48  collected upon the taxable property in the area must be paid into the

8-49  funds of the respective taxing agencies. When the loans, advances and

9-1  indebtedness, if any, and interest thereon, have been paid, all money

9-2  thereafter received from taxes upon the taxable property in the area must

9-3  be paid into the funds of the respective taxing agencies as taxes on all

9-4  other property are paid.

9-5    (c) The amount of taxes levied each year pursuant to subsection (b)

9-6  that are paid into the tax increment account, may be limited by the

9-7  governing body to an amount not to exceed the combined total amount

9-8  required for annual debt service of the project or projects acquired,

9-9  improved, equipped or maintained, or any combination thereof, as part of

9-10  the undertaking.

9-11    (d) Any revenues generated within the tax increment district in excess

9-12  of the amount referenced in paragraph (c), if any, will be paid into the

9-13  funds of the respective taxing agencies in the same proportion as their

9-14  base amount was distributed.

9-15    2.  In any fiscal year, the total revenue paid to a tax increment area in

9-16  combination with the total revenue paid to any other tax increment areas

9-17  and any redevelopment agencies of a municipality must not exceed:

9-18    (a) In a municipality whose population is 100,000 or more, an amount

9-19  equal to the combined tax rates of the taxing agencies for that fiscal year

9-20  multiplied by 10 percent of the total assessed valuation of the

9-21  municipality.

9-22    (b) In a municipality whose population is less than 100,000, an

9-23  amount equal to the combined tax rates of the taxing agencies for that

9-24  fiscal year multiplied by 15 percent of the total assessed valuation of the

9-25  municipality.

9-26  If the revenue paid to a tax increment area must be limited pursuant to

9-27  paragraph (a) or (b) and the municipality has more than one

9-28  redevelopment agency or tax increment area, or one of each, the

9-29  municipality shall determine the allocation to each agency and area. Any

9-30  revenue that would be allocated to a tax increment area but for the

9-31  provisions of this section must be paid into the funds of the respective

9-32  taxing agencies.

9-33    3.  Any tax that is approved on or after October 1, 2001, by a majority

9-34  of the registered voters of the tax increment area voting upon the

9-35  question, may not be allocated to or paid into the tax increment account

9-36  and must be allocated to the specific purpose for which it was levied.

9-37    4.  As used in this section, the term “last equalized assessment roll”

9-38  means the assessment roll in existence on the 15th day of March

9-39  immediately preceding the effective date of the ordinance.

9-40    Sec. 27.  The Federal Government, the state, any public body or any

9-41  natural person filing a written complaint, protest or objection in the

9-42  manner and within the time provided in section 19 of this act, may,

9-43  within 30 days after the governing body has finally passed on the

9-44  complaint, protest or objection by resolution pursuant to section 23 of

9-45  this act or by ordinance pursuant to section 24 of this act, commence an

9-46  action or suit in any court of competent jurisdiction to correct or set aside

9-47  the determination, but thereafter all actions or suits attacking the validity

9-48  of the proceedings are perpetually barred.

10-1    Sec. 28.  1.  To defray in whole or in part the cost of any

10-2  undertaking, a municipality may issue the following securities:

10-3    (a) Notes;

10-4    (b) Warrants;

10-5    (c) Interim debentures;

10-6    (d) Bonds; and

10-7    (e) Temporary bonds.

10-8    2.  Any net revenues derived from the operation of a project acquired,

10-9  improved or equipped, or any combination thereof, as part of the

10-10  undertaking must be pledged for the payment of any securities issued

10-11  pursuant to this section. The securities must be made payable from any

10-12  such net pledged revenues as the bond requirements become due from

10-13  time to time by the bond ordinance, trust indenture or other proceedings

10-14  that authorize the issuance of the securities or otherwise pertain to their

10-15  issuance.

10-16  3.  Securities issued pursuant to this section:

10-17  (a) Must be made payable from tax proceeds accounted for in the tax

10-18  increment account; and

10-19  (b) May, at the option of the municipality, be made payable from the

10-20  taxes levied by the municipality against all taxable property within the

10-21  municipality, without limitation of rate or amount except for the

10-22  limitation provided in section 2 of article 10 of the constitution of the

10-23  State of Nevada.

10-24  The municipality may also issue general obligation securities other than

10-25  the ones authorized by this chapter that are made payable from taxes

10-26  without also making the securities payable from any net pledged

10-27  revenues or tax proceeds accounted for in a tax increment account, or

10-28  from both of those sources of revenue.

10-29  4.  Any securities payable only in the manner provided in either

10-30  paragraph (a) of subsection 3 or both subsection 2 and paragraph (a) of

10-31  subsection 3:

10-32  (a) Are special obligations of the municipality and are not in their

10-33  issuance subject to any debt limitation imposed by law;

10-34  (b) While they are outstanding, do not exhaust the debt incurring

10-35  power of the municipality; and

10-36  (c) May be issued under the provisions of the Local Government

10-37  Securities Law, except as otherwise provided in this chapter, without any

10-38  compliance with the provisions of NRS 350.001 to 350.006, inclusive, or

10-39  350.020 to 350.070, inclusive, and without any approval or other

10-40  preliminaries, except as otherwise provided in the Local Government

10-41  Securities Law.

10-42  5.  Any securities payable from taxes in the manner provided in

10-43  paragraph (b) of subsection 3, regardless of whether they are also

10-44  payable in the manner provided in paragraph (a) of subsection 3 or in

10-45  both subsection 2 and paragraph (a) of subsection 3:

10-46  (a) Are general obligations of the city and are in their issuance subject

10-47  to such debt limitation;

10-48  (b) While they are outstanding, do exhaust the power of the

10-49  municipality to incur debt; and

11-1    (c) May be issued under the provisions of the Local Government

11-2  Securities Law only after the issuance of municipal bonds is approved

11-3  under the provisions of:

11-4      (1) NRS 350.001 to 350.006, inclusive; or

11-5      (2) NRS 350.020 to 350.070, inclusive,

11-6  except for the issuance of notes or warrants under the Local Government

11-7  Securities Law that are payable out of the revenues for the current year

11-8  and are not to be funded with the proceeds of interim debentures or

11-9  bonds in the absence of such bond approval under the two acts

11-10  designated in subparagraphs (1) and (2).

11-11  6.  In the proceedings for the advancement of money, or the making

11-12  of loans, or the incurrence of any indebtedness, whether funded,

11-13  refunded, assumed or otherwise, by the municipality to finance or

11-14  refinance, in whole or in part, the undertaking, the portion of taxes

11-15  mentioned in subsection 2 of section 26 of this act must be irrevocably

11-16  pledged for the payment of the bond requirements of the loans, advances

11-17  or indebtedness. The provisions in the Local Government Securities Law

11-18  pertaining to net pledged revenues are applicable to such a pledge to

11-19  secure the payment of tax increment bonds.

11-20  Sec. 29.  Any securities issued by a municipality for a tax increment

11-21  area pursuant to this chapter must mature and be fully paid, including

11-22  any interest thereon, before the expiration of the tax increment area.

11-23  Sec. 30.  The municipality may:

11-24  1.  Accept contributions or loans from the Federal Government, the

11-25  state or any public body, or any combination thereof, for the purpose of

11-26  financing the planning, acquisition, improvement, equipment,

11-27  maintenance and operation of any enterprise pertaining to an

11-28  undertaking in which the municipality is authorized to engage and may

11-29  enter into contracts and cooperate with, and accept cooperation from, the

11-30  Federal Government, the state or any public body, or any combination

11-31  thereof, in the planning, acquisition, improvement, equipment,

11-32  maintenance and operation, and in financing the planning, acquisition,

11-33  improvement, equipment, maintenance and operation of any such

11-34  enterprise in accordance with any legislation that Congress, the state

11-35  legislature or the governing body of any public body, or any combination

11-36  thereof, may have adopted before or may adopt on or after July 1, 1983,

11-37  under which aid, assistance and cooperation may be furnished by the

11-38  Federal Government, this state or public body, or any combination

11-39  thereof, in the planning, acquisition, improvement, equipment,

11-40  maintenance and operation or in financing the planning, acquisition,

11-41  improvement, equipment, maintenance and operation of any such

11-42  enterprise, including, without limitation, costs of engineering,

11-43  architectural and economic investigations and studies, surveys, designs,

11-44  plans, working drawings, specifications, procedures and other action

11-45  preliminary to the acquisition, improvement or equipment of any project,

11-46  and may do all things necessary to avail itself of such aid, assistance and

11-47  cooperation pursuant to any federal or state legislation.

11-48  2.  Enter into, without any election, joint operating or service

11-49  contracts and agreements, acquisition, improvement, equipment or

12-1  disposal contracts, or other arrangements for any term not extending

12-2  beyond the expiration of the tax increment area, with the Federal

12-3  Government, the state or any public body, or any combination thereof,

12-4  concerning the undertaking, and any project or property pertaining

12-5  thereto, whether acquired by the city, the Federal Government, the state

12-6  or any public body, or any combination thereof, and may accept grants

12-7  and contributions from the Federal Government, the state, any public

12-8  body or any person, or any combination thereof, in connection therewith.

12-9    3.  When determined by the governing body to be in the public

12-10  interest, enter into and perform contracts and agreements, without any

12-11  election, for any term not extending beyond the expiration of the tax

12-12  increment area, with the Federal Government, the state, any public body

12-13  or any person, or any combination thereof, for the provision and

12-14  operation by the municipality of any facilities whether or not pertaining

12-15  to the undertaking of the municipality or any project relating thereto and

12-16  the payment periodically thereby to the municipality of amounts at least

12-17  sufficient, if any, in the determination of the governing body, to

12-18  compensate the municipality for the cost of providing, operating and

12-19  maintaining the facilities serving the Federal Government, the state, the

12-20  public body or person, or otherwise.

12-21  4.  Enter into and perform, without any election, contracts and

12-22  agreements with the Federal Government, the state, any public body or

12-23  any person, or a combination thereof, for or concerning the planning,

12-24  construction, lease or other acquisition, improvement, equipment,

12-25  operation, maintenance, disposal and the financing of any property

12-26  pertaining to the facilities of the municipality or to any undertaking or

12-27  any project of the municipality, or otherwise, including, without

12-28  limitation, any contract or agreement for any term not extending beyond

12-29  the expiration of the tax increment area.

12-30  5.  Cooperate with and act in conjunction with the Federal

12-31  Government, or any of its engineers, officers, boards, commissions or

12-32  departments, or with the state, or any of its engineers, officers, boards,

12-33  commissions or departments, or with any public body or any person in

12-34  the acquisition, improvement or equipment of any facilities or any project

12-35  authorized for the municipality or for any other works, acts or purposes

12-36  provided for herein, and may adopt and carry out any definite plan or

12-37  system of work for any such purpose.

12-38  6.  Cooperate with the Federal Government, the state or any public

12-39  body, or any combination thereof, by an agreement therewith by which

12-40  the municipality may:

12-41  (a) Acquire and provide, without cost to the cooperating entity, the

12-42  land, easements and rights of way necessary for the acquisition,

12-43  improvement or equipment, or any combination thereof, of any

12-44  properties pertaining to the undertaking or any other facilities;

12-45  (b) Hold and save harmless the cooperating entity free from any claim

12-46  for damages arising from the acquisition, improvement, equipment,

12-47  maintenance or operation, or any combination thereof, of any facilities;

12-48  (c) Maintain and operate any facilities in accordance with regulations

12-49  prescribed by the cooperating entity; and

13-1    (d) Adopt and enforce regulations, if any, concerning the facilities

13-2  and satisfactory to the cooperating entity.

13-3    7.  For a term not extending beyond the expiration of the tax

13-4  increment area, or otherwise, without an election, provide by contract

13-5  for:

13-6    (a) The joint use of personnel, equipment and facilities of the

13-7  municipality, the Federal Government, the state or any public body, or

13-8  any combination thereof, including, without limitation, public buildings

13-9  constructed by or under the supervision of the governing body of the

13-10  municipality or the other party or parties to the contract concerned, upon

13-11  such terms and agreements and within such areas within the

13-12  municipality as may be determined, for the promotion and protection of

13-13  health, comfort, safety, life, welfare and property of the inhabitants of the

13-14  municipality, the Federal Government, the state, any such public body

13-15  and any persons of interest, as the case may be; and

13-16  (b) The joint employment of clerks, stenographers and other

13-17  employees pertaining to the facilities, any project or the undertaking,

13-18  now existing or hereafter established in the municipality, upon such

13-19  terms and conditions as may be determined for the equitable

13-20  apportionment of the expenses therefrom resulting.

13-21  8.  In connection with any facilities of the municipality or any part of

13-22  the facilities, acquired or proposed in connection with an undertaking, or

13-23  with any project, consult with any regulatory or other agency of the

13-24  Federal Government, the state or any public body and submit plans,

13-25  specifications, or other instruments or documents, or any combination

13-26  thereof, to each such governmental agency for its review,

13-27  recommendations and other comments.

13-28  Sec. 31.  For purposes of this chapter:

13-29  1.  Facilities may consist of all properties, real, personal, mixed or

13-30  otherwise, acquired by the municipality, by any undertaking for any one

13-31  or more projects, through purchase, condemnation, construction or

13-32  otherwise, and used in connection with any such project and related

13-33  services or in any way pertaining thereto, whether situated within or

13-34  without or both within and without the territorial limits of the

13-35  municipality.

13-36  2.  A municipality shall not acquire as a part of its facilities any

13-37  property that at the time of its acquisition competes in any area with then

13-38  existing property of a public body providing the same or a similar

13-39  function or service therein. A municipality may acquire as part of its

13-40  facilities property that complements existing property of a public body by

13-41  providing in such an area supplemental functions or services if such

13-42  existing property provides inadequate functions or services.

13-43  3.  The municipality may acquire properties of any public body in the

13-44  municipality as one undertaking or a project of the municipality or an

13-45  interest therein.

13-46  Sec. 32.  A tax increment area expires 30 years after the date on

13-47  which the ordinance which creates the area becomes effective, unless the

13-48  governing body adopts an ordinance extending the life of the tax

13-49  increment area and the ordinance is approved by affirmative vote of a

14-1  majority of the registered voters in the tax increment area that vote on a

14-2  referendum on the ordinance at the general election immediately

14-3  preceding the adoption of such an ordinance.

14-4    Sec. 33.  1.  This chapter, without reference to other statutes of this

14-5  state, except as otherwise expressly provided in this chapter, constitutes

14-6  full authority for the exercise of powers granted in this chapter.

14-7    2.  No other law with regard to the exercise of any power granted in

14-8  this chapter that provides for an election, requires an approval, or in any

14-9  way impedes or restricts the carrying out of the acts authorized to be

14-10  done applies to any acts taken under this chapter, except as provided in

14-11  this chapter.

14-12  3.  The powers conferred by this chapter are in addition and

14-13  supplemental to, and not in substitution for, and the limitations imposed

14-14  by this chapter do not affect the powers conferred by, any other law.

14-15  Sec. 34.  NRS 274.240 is hereby amended to read as follows:

14-16  274.240  To encourage the revitalization of specially benefited zones,

14-17  the governing body of a designating municipality may:

14-18  1.  Issue bonds or other securities authorized by other law for the

14-19  purposes of economic development and use the proceeds for loans to any

14-20  new or expanding qualified businesses in the specially benefited zone.

14-21  2.  Reduce or eliminate any license or franchise tax, fee or service

14-22  charge which would otherwise be imposed against qualified businesses

14-23  within the specially benefited zone.

14-24  3.  Develop and carry out, alone or where feasible with the

14-25  participation of one or more designated neighborhood organizations as

14-26  provided in NRS 274.250, programs to improve needed governmental

14-27  services within the specially benefited zone.

14-28  4.  Develop and carry out a plan to:

14-29  (a) Ensure the availability of resources to assist residents of the

14-30  specially benefited zone in their own efforts to improve the condition of

14-31  property and the availability and quality of public services within the zone.

14-32  (b) Provide or seek assistance for persons or businesses displaced as a

14-33  result of undertakings or other activities conducted pursuant to this chapter.

14-34  5.  Provide financing by tax increment pursuant to sections 2 to 33,

14-35  inclusive, of this act.

14-36  6.  Cooperate with any other governmental agency to provide any other

14-37  incentive likely to encourage private investment within the specially

14-38  benefited zone.

14-39  Sec. 35.  NRS 354.59811 is hereby amended to read as follows:

14-40  354.59811  1.  Except as otherwise provided in NRS 354.59813,

14-41  354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425,

14-42  450.760, 540A.265 and 543.600, for each fiscal year beginning on or after

14-43  July 1, 1989, the maximum amount of money that a local government,

14-44  except a school district, a district to provide a telephone number for

14-45  emergencies[,] or a redevelopment agency, may receive from taxes ad

14-46  valorem, other than those attributable to the net proceeds of minerals or

14-47  those levied for the payment of bonded indebtedness and interest thereon

14-48  incurred as general long-term debt of the issuer, or for the payment of

14-49  obligations issued to pay the cost of a water project pursuant to NRS

15-1  349.950, or for the payment of obligations under a capital lease executed

15-2  before April 30, 1981, must be calculated as follows:

15-3    (a) The rate must be set so that when applied to the current fiscal year’s

15-4  assessed valuation of all property which was on the preceding fiscal year’s

15-5  assessment roll, together with the assessed valuation of property on the

15-6  central assessment roll which was allocated to the local government, but

15-7  excluding any assessed valuation attributable to the net proceeds of

15-8  minerals, assessed valuation attributable to a redevelopment area or tax

15-9  increment area and assessed valuation of a fire protection district

15-10  attributable to real property which is transferred from private ownership to

15-11  public ownership for the purpose of conservation, it will produce 106

15-12  percent of the maximum revenue allowable from taxes ad valorem for the

15-13  preceding fiscal year, except that the rate so determined must not be less

15-14  than the rate allowed for the previous fiscal year, except for any decrease

15-15  attributable to the imposition of a tax pursuant to NRS 354.59813 in the

15-16  previous year.

15-17  (b) This rate must then be applied to the total assessed valuation,

15-18  excluding the assessed valuation attributable to the net proceeds of

15-19  minerals and the assessed valuation of a fire protection district attributable

15-20  to real property which is transferred from private ownership to public

15-21  ownership for the purpose of conservation , but including new real

15-22  property, possessory interests and mobile homes, for the current fiscal year

15-23  to determine the allowed revenue from taxes ad valorem for the local

15-24  government.

15-25  2.  As used in this section, “general long-term debt” does not include

15-26  debt created for medium-term obligations pursuant to NRS 350.085 to

15-27  350.095, inclusive.

 

15-28  H