requires two-thirds majority vote (§ 1)                                                   

                                                                                                  

 

Senate Bill No. 468–Committee on Natural Resources

 

March 22, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Imposes additional tax on transfer of real property for certain purpose. (BDR 32‑1473)

 

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; imposing a tax on the transfer of real property; requiring that proceeds of the tax be used in the plant industry program and for certain purposes; 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 375 of NRS is hereby amended by adding thereto a

1-2  new section to read as follows:

1-3    1.  In addition to all other taxes imposed on transfers of real property,

1-4  a tax at the rate of 1 cent for each $100 of value, or fraction thereof, is

1-5  hereby imposed on each deed by which any lands, tenements or other

1-6  realty is granted, assigned, transferred or otherwise conveyed to, or

1-7  vested in, another person, if the consideration or value of the interest or

1-8  property conveyed, exclusive of the value of any lien or encumbrance

1-9  remaining on the interest or property at the time of the sale, exceeds

1-10  $100.

1-11    2.  The amount of the tax must be computed on the basis of the value

1-12  of the transferred real property as declared pursuant to NRS 375.060.

1-13    3.  The county recorder shall collect the tax in the manner provided

1-14  in NRS 375.030, except that he shall transmit all the proceeds from the

1-15  tax imposed pursuant to this section to the state treasurer for use in the

1-16  plant industry program established in NRS 561.355 for use in

1-17  accordance with that section.

1-18    Sec. 2.  NRS 375.030 is hereby amended to read as follows:

1-19    375.030  1.  If any deed evidencing a transfer of title subject to the tax

1-20  imposed by NRS 375.020 and section 1 of this act and, if applicable, NRS

1-21  375.025, is offered for recordation, the county recorder shall compute the

1-22  amount of the tax due and shall collect that amount before acceptance of

1-23  the deed for recordation.

2-1    2.  The buyer and seller are jointly and severally liable for the payment

2-2  of the taxes imposed by NRS 375.020 and 375.025 and section 1 of this

2-3  act and any penalties and interest imposed pursuant to subsection 3. The

2-4  escrow holder is not liable for the payment of the taxes imposed by NRS

2-5  375.020 and 375.025 and section 1 of this act or any penalties or interest

2-6  imposed pursuant to subsection 3.

2-7    3.  If , after recordation of the deed, the county recorder disallows an

2-8  exemption that was claimed at the time the deed was recorded , or through

2-9  audit or otherwise determines that an additional amount of tax is due, the

2-10  county recorder shall promptly notify the buyer or seller, or both, of the

2-11  additional amount of tax due. In addition to the additional amount

2-12  determined to be due, the county recorder shall impose a penalty of 10

2-13  percent of the additional amount due in addition to interest at the rate of
1 1/2 percent per month, or portion thereof, of the additional amount due

2-14  calculated from the date of the original recordation of the deed on which

2-15  the additional amount is due through the date on which the additional

2-16  amount due, penalty and interest are paid to the county recorder.

2-17    4.  This section does not prohibit a buyer and seller from agreeing by

2-18  contract or otherwise that one party or the other will be responsible for the

2-19  payment of the tax due pursuant to this chapter, but such an agreement

2-20  does not affect the ability of the county recorder to collect the tax and any

2-21  penalties and interest from either the buyer or the seller.

2-22    Sec. 3.  NRS 375.070 is hereby amended to read as follows:

2-23    375.070  1.  [The] Except as otherwise provided in section 1 of this

2-24  act, the county recorder shall transmit the proceeds of the real property

2-25  transfer tax at the end of each quarter in the following manner:

2-26    (a) An amount equal to that portion of the proceeds which is equivalent

2-27  to 10 cents for each $500 of value , or fraction thereof , must be transmitted

2-28  to the state treasurer who shall deposit that amount in the account for low-

2-29  income housing created pursuant to NRS 319.500.

2-30    (b) In a county whose population is more than 400,000, an amount

2-31  equal to that portion of the proceeds which is equivalent to 60 cents for

2-32  each $500 of value , or fraction thereof , must be transmitted to the county

2-33  treasurer for deposit in the county school district’s fund for capital projects

2-34  established pursuant to NRS 387.328, to be held and expended in the same

2-35  manner as other money deposited in that fund.

2-36    (c) The remaining proceeds must be transmitted to the state treasurer for

2-37  deposit in the local government tax distribution account created by NRS

2-38  360.660 for credit to the respective accounts of Carson City and each

2-39  county.

2-40    2.  In addition to any other authorized use of the proceeds it receives

2-41  pursuant to subsection 1, a county or city may use the proceeds to pay

2-42  expenses related to or incurred for the development of affordable housing

2-43  for families whose income does not exceed 80 percent of the median

2-44  income for families residing in the same county, as that percentage is

2-45  defined by the United States Department of Housing and Urban

2-46  Development. A county or city that uses the proceeds in that manner must

2-47  give priority to the development of affordable housing for persons who are

2-48  disabled or elderly.

3-1    3.  The expenses authorized by subsection 2 include, but are not limited

3-2  to:

3-3    (a) The costs to acquire land and developmental rights;

3-4    (b) Related predevelopment expenses;

3-5    (c) The costs to develop the land, including the payment of related

3-6  rebates;

3-7    (d) Contributions toward down payments made for the purchase of

3-8  affordable housing; and

3-9    (e) The creation of related trust funds.

3-10    Sec. 4.  NRS 375.090 is hereby amended to read as follows:

3-11    375.090  The tax imposed by NRS 375.020 and 375.025 and section 1

3-12  of this act does not apply to:

3-13    1.  Any transaction wherein an interest in real property is encumbered

3-14  for the purposes of securing a debt.

3-15    2.  A transfer of title to or from the United States, any territory or state ,

3-16  or any agency, department, instrumentality or political subdivision thereof.

3-17    3.  A transfer of title recognizing the true status of ownership of the real

3-18  property.

3-19    4.  A transfer of title without consideration from one joint tenant or

3-20  tenant in common to one or more remaining joint tenants or tenants in

3-21  common.

3-22    5.  A transfer of title to community property without consideration

3-23  when held in the name of one spouse to both spouses as joint tenants or

3-24  tenants in common, or as community property.

3-25    6.  A transfer of title between spouses, including gifts.

3-26    7.  A transfer of title between spouses to effect a property settlement

3-27  agreement or between former spouses in compliance with a decree of

3-28  divorce.

3-29    8.  A transfer of title to or from a trust, if the transfer is made without

3-30  consideration.

3-31    9.  Transfers, assignments or conveyances of unpatented mines or

3-32  mining claims.

3-33    10.  A transfer, assignment or other conveyance of real property to a

3-34  corporation or other business organization if the person conveying the

3-35  property owns 100 percent of the corporation or organization to which the

3-36  conveyance is made.

3-37    11.  A transfer, assignment or other conveyance of real property if the

3-38  owner of the property is related to the person to whom it is conveyed

3-39  within the first degree of consanguinity.

3-40    12.  The making, delivery or filing of conveyances of real property to

3-41  make effective any plan of reorganization or adjustment:

3-42    (a) Confirmed under the Bankruptcy Act, as amended, Title 11 of

3-43  U.S.C.;

3-44    (b) Approved in an equity receivership proceeding involving a railroad

3-45  as defined in the Bankruptcy Act;

3-46    (c) Approved in an equity receivership proceeding involving a

3-47  corporation, as defined in the Bankruptcy Act; or

4-1    (d) Whereby a mere change in identity, form or place of organization is

4-2  effected, such as a transfer between a corporation and its parent

4-3  corporation, a subsidiary or an affiliated corporation,

4-4  if the making, delivery or filing of instruments of transfer or conveyance

4-5  occurs within 5 years after the date of the confirmation, approval or

4-6  change.

4-7    13.  The making or delivery of conveyances of real property to make

4-8  effective any order of the Securities and Exchange Commission if:

4-9    (a) The order of the Securities and Exchange Commission in obedience

4-10  to which the transfer or conveyance is made recites that the transfer or

4-11  conveyance is necessary or appropriate to effectuate the provisions of

4-12  section 11 of the Public Utility Holding Company Act of 1935, 15 U.S.C. §

4-13  79k;

4-14    (b) The order specifies and itemizes the property which is ordered to be

4-15  transferred or conveyed; and

4-16    (c) The transfer or conveyance is made in obedience to the order.

4-17    14.  A transfer to or from an educational foundation. As used in this

4-18  subsection, “educational foundation” has the meaning ascribed to it in

4-19  subsection 3 of NRS 388.750.

4-20    15.  A transfer to or from a university foundation. As used in this

4-21  subsection, “university foundation” has the meaning ascribed to it in

4-22  subsection 3 of NRS 396.405.

4-23    16.  A transfer, assignment or other conveyance of real property to a

4-24  corporation sole from another corporation sole. As used in this subsection,

4-25  “corporation sole” means a corporation which is organized pursuant to the

4-26  provisions of chapter 84 of NRS.

4-27    Sec. 5.  NRS 561.355 is hereby amended to read as follows:

4-28    561.355  1.  The plant industry program is hereby established.

4-29    2.  The following fees and money [shall] must be used in the plant

4-30  industry program:

4-31    (a) Fees and money collected pursuant to the provisions of chapters 555,

4-32  581, 582 and 587 of NRS.

4-33    (b) Laboratory fees collected for the diagnosis of infectious, contagious

4-34  and destructive diseases of agricultural commodities, and infestations

4-35  thereof by pests, as authorized by NRS 561.305, and as may be necessary

4-36  under the provisions of chapter 554 of NRS . [554.010 to 554.240,

4-37  inclusive.]

4-38    (c) Laboratory fees collected for the survey and identification of insect

4-39  pests, plant diseases and noxious weeds, as authorized by NRS 561.305,

4-40  and as may be necessary under the provisions of NRS [555.010] 555.005 to

4-41  555.249, inclusive.

4-42    (d) Laboratory fees collected for the testing of the purity and

4-43  germinating power of agricultural seeds, as authorized by NRS 561.305,

4-44  and as may be necessary under the provisions of NRS 587.015 to 587.123,

4-45  inclusive.

4-46    (e) Money received from the tax on the transfer of real property

4-47  pursuant to section 1 of this act.

5-1    3.  Expenditures for the plant industry program [shall] must be made

5-2  only for the purposes of carrying out the provisions of chapters 554, 555,

5-3  581, 582 and 587 of NRS, and the provisions of this chapter.

5-4    4.  The money credited to the program pursuant to section 1 of this

5-5  act must be used as follows:

5-6    (a) Fifty percent for use by the department for programs on the

5-7  exclusion, detection and control of invasive species; and

5-8    (b) Fifty percent for grants to counties for the control or management

5-9  of invasive species.

5-10    5.  As used in this section, “invasive species” means a species of plant

5-11  or insect that is not indigenous to the United States.

5-12    Sec. 6.  This act becomes effective on July 1, 2001.

 

5-13  H