REQUIRES TWO THIRDS MAJORITY VOTE (§ 1)                 

                                            (REPRINTED WITH ADOPTED AMENDMENTS)

 

Senate Bill No. 468–Committee on Natural Resources

 

March 22, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Authorizes board of county commissioners to impose additional tax on transfer of real property for certain purposes. (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; authorizing a board of county commissioners to impose an additional tax on the transfer of real property; requiring that the proceeds of the tax be used in the plant industry program for certain purposes; requiring the state department of agriculture to present certain programs relating to invasive species to each board of county commissioners each fiscal year; 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 board of county commissioners may impose a tax at the rate of up to 5

1-5  cents for each $500 of value, or fraction thereof, on each deed by which

1-6  any lands, tenements or other realty is granted, assigned, transferred or

1-7  otherwise conveyed to, or vested in, another person, if the consideration

1-8  or value of the interest or property conveyed, exclusive of the value of

1-9  any lien or encumbrance remaining on the interest or property at the

1-10  time of the sale, exceeds $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.

 

 

 

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

2-2    375.030  1.  If any deed evidencing a transfer of title subject to the tax

2-3  imposed by NRS 375.020 and, if applicable, NRS 375.025 [,] and section

2-4  1 of this act, is offered for recordation, the county recorder shall compute

2-5  the amount of the tax due and shall collect that amount before acceptance

2-6  of the deed for recordation.

2-7    2.  The buyer and seller are jointly and severally liable for the payment

2-8  of the taxes imposed by NRS 375.020 and 375.025 and section 1 of this

2-9  act and any penalties and interest imposed pursuant to subsection 3. The

2-10  escrow holder is not liable for the payment of the taxes imposed by NRS

2-11  375.020 and 375.025 and section 1 of this act or any penalties or interest

2-12  imposed pursuant to subsection 3.

2-13  3.  If , after recordation of the deed, the county recorder disallows an

2-14  exemption that was claimed at the time the deed was recorded , or through

2-15  audit or otherwise determines that an additional amount of tax is due, the

2-16  county recorder shall promptly notify the buyer or seller, or both, of the

2-17  additional amount of tax due. In addition to the additional amount

2-18  determined to be due, the county recorder shall impose a penalty of 10

2-19  percent of the additional amount due in addition to interest at the rate of

2-20  1 1/2 percent per month, or portion thereof, of the additional amount due

2-21  calculated from the date of the original recordation of the deed on which

2-22  the additional amount is due through the date on which the additional

2-23  amount due, penalty and interest are paid to the county recorder.

2-24  4.  This section does not prohibit a buyer and seller from agreeing by

2-25  contract or otherwise that one party or the other will be responsible for the

2-26  payment of the tax due pursuant to this chapter, but such an agreement

2-27  does not affect the ability of the county recorder to collect the tax and any

2-28  penalties and interest from either the buyer or the seller.

2-29  Sec. 3.  NRS 375.070 is hereby amended to read as follows:

2-30  375.070  1.  [The] Except as otherwise provided in section 1 of this

2-31  act, the county recorder shall transmit the proceeds of the real property

2-32  transfer tax at the end of each quarter in the following manner:

2-33  (a) An amount equal to that portion of the proceeds which is equivalent

2-34  to 10 cents for each $500 of value , or fraction thereof , must be transmitted

2-35  to the state treasurer who shall deposit that amount in the account for low-

2-36  income housing created pursuant to NRS 319.500.

2-37  (b) In a county whose population is more than 400,000, an amount

2-38  equal to that portion of the proceeds which is equivalent to 60 cents for

2-39  each $500 of value , or fraction thereof , must be transmitted to the county

2-40  treasurer for deposit in the county school district’s fund for capital projects

2-41  established pursuant to NRS 387.328, to be held and expended in the same

2-42  manner as other money deposited in that fund.

2-43  (c) The remaining proceeds must be transmitted to the state treasurer for

2-44  deposit in the local government tax distribution account created by NRS

2-45  360.660 for credit to the respective accounts of Carson City and each

2-46  county.

2-47  2.  In addition to any other authorized use of the proceeds it receives

2-48  pursuant to subsection 1, a county or city may use the proceeds to pay

2-49  expenses related to or incurred for the development of affordable housing

3-1  for families whose income does not exceed 80 percent of the median

3-2  income for families residing in the same county, as that percentage is

3-3  defined by the United States Department of Housing and Urban

3-4  Development. A county or city that uses the proceeds in that manner must

3-5  give priority to the development of affordable housing for persons who are

3-6  disabled or elderly.

3-7    3.  The expenses authorized by subsection 2 include, but are not

3-8  limited to:

3-9    (a) The costs to acquire land and developmental rights;

3-10  (b) Related predevelopment expenses;

3-11  (c) The costs to develop the land, including the payment of related

3-12  rebates;

3-13  (d) Contributions toward down payments made for the purchase of

3-14  affordable housing; and

3-15  (e) The creation of related trust funds.

3-16  Sec. 4.  NRS 375.090 is hereby amended to read as follows:

3-17  375.090  The tax imposed by NRS 375.020 and 375.025 and section 1

3-18  of this act does not apply to:

3-19  1.  Any transaction wherein an interest in real property is encumbered

3-20  for the purposes of securing a debt.

3-21  2.  A transfer of title to or from the United States, any territory or state ,

3-22  or any agency, department, instrumentality or political subdivision thereof.

3-23  3.  A transfer of title recognizing the true status of ownership of the real

3-24  property.

3-25  4.  A transfer of title without consideration from one joint tenant or

3-26  tenant in common to one or more remaining joint tenants or tenants in

3-27  common.

3-28  5.  A transfer of title to community property without consideration

3-29  when held in the name of one spouse to both spouses as joint tenants or

3-30  tenants in common, or as community property.

3-31  6.  A transfer of title between spouses, including gifts.

3-32  7.  A transfer of title between spouses to effect a property settlement

3-33  agreement or between former spouses in compliance with a decree of

3-34  divorce.

3-35  8.  A transfer of title to or from a trust, if the transfer is made without

3-36  consideration.

3-37  9.  Transfers, assignments or conveyances of unpatented mines or

3-38  mining claims.

3-39  10.  A transfer, assignment or other conveyance of real property to a

3-40  corporation or other business organization if the person conveying the

3-41  property owns 100 percent of the corporation or organization to which the

3-42  conveyance is made.

3-43  11.  A transfer, assignment or other conveyance of real property if the

3-44  owner of the property is related to the person to whom it is conveyed

3-45  within the first degree of consanguinity.

3-46  12.  The making, delivery or filing of conveyances of real property to

3-47  make effective any plan of reorganization or adjustment:

3-48  (a) Confirmed under the Bankruptcy Act, as amended, Title 11 of

3-49  U.S.C.;

4-1    (b) Approved in an equity receivership proceeding involving a railroad

4-2  as defined in the Bankruptcy Act;

4-3    (c) Approved in an equity receivership proceeding involving a

4-4  corporation, as defined in the Bankruptcy Act; or

4-5    (d) Whereby a mere change in identity, form or place of organization is

4-6  effected, such as a transfer between a corporation and its parent

4-7  corporation, a subsidiary or an affiliated corporation,

4-8  if the making, delivery or filing of instruments of transfer or conveyance

4-9  occurs within 5 years after the date of the confirmation, approval or

4-10  change.

4-11  13.  The making or delivery of conveyances of real property to make

4-12  effective any order of the Securities and Exchange Commission if:

4-13  (a) The order of the Securities and Exchange Commission in obedience

4-14  to which the transfer or conveyance is made recites that the transfer or

4-15  conveyance is necessary or appropriate to effectuate the provisions of

4-16  section 11 of the Public Utility Holding Company Act of 1935, 15 U.S.C. §

4-17  79k;

4-18  (b) The order specifies and itemizes the property which is ordered to be

4-19  transferred or conveyed; and

4-20  (c) The transfer or conveyance is made in obedience to the order.

4-21  14.  A transfer to or from an educational foundation. As used in this

4-22  subsection, “educational foundation” has the meaning ascribed to it in

4-23  subsection 3 of NRS 388.750.

4-24  15.  A transfer to or from a university foundation. As used in this

4-25  subsection, “university foundation” has the meaning ascribed to it in

4-26  subsection 3 of NRS 396.405.

4-27  16.  A transfer, assignment or other conveyance of real property to a

4-28  corporation sole from another corporation sole. As used in this subsection,

4-29  “corporation sole” means a corporation which is organized pursuant to the

4-30  provisions of chapter 84 of NRS.

4-31  Sec. 5.  NRS 561.355 is hereby amended to read as follows:

4-32  561.355  1.  The plant industry program is hereby established.

4-33  2.  The following fees and money [shall] must be used in the plant

4-34  industry program:

4-35  (a) Fees and money collected pursuant to the provisions of chapters 555,

4-36  581, 582 and 587 of NRS.

4-37  (b) Laboratory fees collected for the diagnosis of infectious, contagious

4-38  and destructive diseases of agricultural commodities, and infestations

4-39  thereof by pests, as authorized by NRS 561.305, and as may be necessary

4-40  under the provisions of chapter 554 of NRS . [554.010 to 554.240,

4-41  inclusive.]

4-42  (c) Laboratory fees collected for the survey and identification of insect

4-43  pests, plant diseases and noxious weeds, as authorized by NRS 561.305,

4-44  and as may be necessary under the provisions of NRS [555.010] 555.005 to

4-45  555.249, inclusive.

4-46  (d) Laboratory fees collected for the testing of the purity and

4-47  germinating power of agricultural seeds, as authorized by NRS 561.305,

4-48  and as may be necessary under the provisions of NRS 587.015 to 587.123,

4-49  inclusive.

5-1    (e) Money received from the tax on the transfer of real property

5-2  pursuant to section 1 of this act.

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

5-4  only for the purposes of carrying out the provisions of chapters 554, 555,

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

5-6    4.  The money credited to the program pursuant to section 1 of this

5-7  act must only be used:

5-8    (a) By the department for programs on the exclusion, detection and

5-9  control of invasive species; and

5-10  (b) For grants to local governments and nonprofit organizations for

5-11  the control or management of invasive species.

5-12  5. Each fiscal year, the department shall present to each board of

5-13  county commissioners for approval by the board proposed programs for

5-14  the exclusion, detection and control of invasive species that involve

5-15  cooperative action between the department and the county.

5-16  6.  As used in this section:

5-17  (a)  “Invasive species” means any living organism not native to this

5-18  state that may present a threat to the economy, environment or public

5-19  health of this state.

5-20  (b) “Local government” has the meaning ascribed to it in

5-21  NRS 237.050.

5-22  Sec. 6.  This act becomes effective on July 1, 2001.

 

5-23  H