Senate Bill No. 529–Committee on Taxation

 

(On Behalf of Department of Taxation)

 

March 26, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Revises provisions relating to assessment and collection of certain taxes remitted to each county. (BDR 32‑342)

 

FISCAL NOTE:    Effect on Local Government: Yes.

                                 Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxation; requiring the department of taxation to withhold a portion of certain taxes remitted to each county as compensation to the State of Nevada for the costs of assessing and collecting the taxes; 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 361.320 is hereby amended to read as follows:

1-2    361.320  1.  At the regular session of the Nevada tax commission

1-3  commencing on the first Monday in October of each year, the Nevada tax

1-4  commission shall establish the valuation for assessment purposes of any

1-5  property of an interstate or intercounty nature used directly in the operation

1-6  of all interstate or intercounty railroad, sleeping car, private car, natural gas

1-7  transmission and distribution, water, telephone, scheduled and unscheduled

1-8  air transport, electric light and power companies, and the property of all

1-9  railway express companies operating on any common or contract carrier in

1-10  this state. This valuation must not include the value of vehicles as defined

1-11  in NRS 371.020.

1-12    2.  Except as otherwise provided in subsections 3 and 6 and NRS

1-13  361.323, the commission shall establish and fix the valuation of all

1-14  physical property used directly in the operation of any such business of any

1-15  such company in this state, as a collective unit. If the company is operating

1-16  in more than one county, on establishing the unit valuation for the

1-17  collective property, the commission shall then determine the total

1-18  aggregate mileage operated within the state and within its several counties

1-19  and apportion the mileage upon a mile-unit valuation basis. The number of

2-1  miles apportioned to any county are subject to assessment in that county

2-2  according to the mile-unit valuation established by the commission.

2-3    3.  After establishing the valuation, as a collective unit, of a public

2-4  utility which generates, transmits or distributes electricity, the commission

2-5  shall segregate the value of any project in this state for the generation of

2-6  electricity which is not yet put to use. This value must be assessed in the

2-7  county where the project is located and must be taxed at the same rate as

2-8  other property.

2-9    4.  The Nevada tax commission shall adopt formulas and incorporate

2-10  them in its records, providing the method or methods pursued in fixing and

2-11  establishing the taxable value of all property assessed by it. The formulas

2-12  must be adopted and may be changed from time to time upon its own

2-13  motion or when made necessary by judicial decisions, but the formulas

2-14  must in any event show all the elements of value considered by the

2-15  commission in arriving at and fixing the value for any class of property

2-16  assessed by it. These formulas must take into account, as indicators of

2-17  value, the company’s income and the cost of its assets, but the taxable

2-18  value may not exceed the cost of replacement as appropriately depreciated.

2-19    5.  If two or more persons perform separate functions that collectively

2-20  are needed to deliver electric service to the final customer and the property

2-21  used in performing the functions would be centrally assessed if owned by

2-22  one person, the Nevada tax commission shall establish its valuation and

2-23  apportion the valuation among the several counties in the same manner as

2-24  the valuation of other centrally assessed property. The Nevada tax

2-25  commission shall determine the proportion of the tax levied upon the

2-26  property by each county according to the valuation of the contribution of

2-27  each person to the aggregate valuation of the property. This subsection

2-28  does not apply to a qualifying facility, as defined in 18 C.F.R. § 292.101,

2-29  which was constructed before July 1, 1997.

2-30    6.  A company engaged in a business described in subsection 1 that

2-31  does not have property of an interstate or intercounty nature must be

2-32  assessed as provided in subsection 8.

2-33    7.  As used in this section:

2-34    (a) “Company” means any person, company, corporation or association

2-35  engaged in the business described.

2-36    (b) “Commercial mobile radio service” has the meaning ascribed to it in

2-37  47 C.F.R. § 20.3 as that section existed on January 1, 1998.

2-38    8.  All other property, including, without limitation, that of any

2-39  company engaged in providing commercial mobile radio service, radio or

2-40  television transmission services or cable television services, must be

2-41  assessed by the county assessors, except as otherwise provided in NRS

2-42  361.321 and 362.100 and except that the valuation of land and mobile

2-43  homes must be established for assessment purposes by the Nevada tax

2-44  commission as provided in NRS 361.325.

2-45    9.  On or before November 1 of each year, the department shall forward

2-46  a tax statement to each private car line company based on the valuation

2-47  established pursuant to this section and in accordance with the tax levies of

2-48  the several districts in each county. The company shall remit the ad

3-1  valorem taxes due on or before December 15 to the department which shall

3-2  [allocate] :

3-3    (a) Apportion the taxes due each county on a mile-unit basis [and remit

3-4  the taxes to the counties no] ;

3-5    (b) Withhold .75 percent of the taxes from the amount apportioned to

3-6  each county, as compensation to the state for the costs related to

3-7  assessing and collecting the taxes, and transmitting the amount withheld

3-8  to the state treasurer for deposit in the appropriate account in the state

3-9  general fund;

3-10    (c) Not later than January 31[. The] remit to each county the

3-11  remainder of the amount of taxes apportioned to the county; and

3-12    (d) Transmit directly to the state treasurer the portion of the taxes

3-13  which is due the state . [must be transmitted directly to the state treasurer.]

3-14    10.  A private car line company which fails to pay the tax set forth in

3-15  subsection 9 within the time required shall pay a penalty of 10 percent of

3-16  the tax due or $5,000, whichever is greater, in addition to the tax. Any

3-17  amount paid as a penalty must be deposited in the state general fund. The

3-18  department may, for good cause shown, waive the payment of a penalty

3-19  pursuant to this subsection. As an alternative to any other method of

3-20  recovering delinquent taxes provided by this chapter, the attorney general

3-21  may bring a civil action in a court of competent jurisdiction to recover

3-22  delinquent taxes due pursuant to [this] subsection 9 in the manner provided

3-23  in NRS 361.560.

3-24    Sec. 2.  NRS 361.3205 is hereby amended to read as follows:

3-25    361.3205  1.  The department shall enter on a central assessment roll

3-26  the assessed valuation established for such classes of property as are

3-27  enumerated in NRS 361.320, except for private car lines, together with the

3-28  apportionment of each county of the assessment.

3-29    2.  On or before January 1 of the fiscal year in which the assessment is

3-30  made, the department shall mail to each taxpayer on the central assessment

3-31  roll a notice of the amount of his assessment. The department shall bill

3-32  each such taxpayer pursuant to subsection 3 of NRS 361.480. The tax must

3-33  be paid to the department pursuant to NRS 361.483.

3-34    3.  Upon receipt, the department shall [apportion and promptly remit] :

3-35    (a) Apportion all taxes due each county[.] ;

3-36    (b) Withhold .75 percent of the taxes from the amount apportioned to

3-37  each county, as compensation to the state for the costs related to

3-38  assessing and collecting the taxes, and transmitting the amount withheld

3-39  to the state treasurer for deposit in the appropriate account in the state

3-40  general fund; and

3-41    (c) Promptly remit to each county the remainder of the amount of

3-42  taxes apportioned to the county.

3-43    4.  As an alternative to any other method of recovering delinquent taxes

3-44  provided by this chapter, the attorney general may bring a civil action in a

3-45  court of competent jurisdiction to recover delinquent taxes due under this

3-46  section in the manner provided in NRS 361.560.

3-47    Sec. 3.  NRS 361.321 is hereby amended to read as follows:

3-48    361.321  1.  Any business which owns, manages or operates property

3-49  that is assessed pursuant to NRS 361.320 shall, on or before the 1st

4-1  Monday in September of each year, submit to the department a report of

4-2  any construction which represents a net addition to its property as

4-3  distinguished from an addition of property exempt from taxation, a

4-4  replacement or repair:

4-5    (a) During the period from July 1 to December 31 of the preceding

4-6  fiscal year; and

4-7    (b) During the period from January 1 to June 30 of the preceding fiscal

4-8  year.

4-9    2.  At the regular session of the Nevada tax commission commencing

4-10  on the 1st Monday in October of each year, the Nevada tax commission

4-11  shall establish the valuation of, for assessment purposes:

4-12    (a) The property reported pursuant to paragraph (b) of subsection 1, and

4-13  enter that valuation on the central assessment roll pursuant to NRS

4-14  361.3205 for the next fiscal year; and

4-15    (b) The property reported pursuant to paragraphs (a) and (b) of

4-16  subsection 1 for supplemental tax bills for the current fiscal year.

4-17    3.  The department shall mail a supplemental tax bill to each person

4-18  reporting construction pursuant to subsection 1 by November 1 of each

4-19  year. The bills must be mailed pursuant to subsection 2 of NRS 361.3205.

4-20    4.  Taxes assessed pursuant to paragraph (b) of subsection 2 must be

4-21  paid to the department by December 15 of each year. Upon receipt, the

4-22  department shall [apportion and promptly remit] :

4-23    (a) Apportion all taxes due each county[.] ;

4-24    (b) Withhold .75 percent of the taxes from the amount apportioned to

4-25  each county, as compensation to the state for the costs related to

4-26  assessing and collecting the taxes, and transmitting the amount withheld

4-27  to the state treasurer for deposit in the appropriate account in the state

4-28  general fund; and

4-29    (c) Promptly remit to each county the remainder of the amount of

4-30  taxes apportioned to the county.

4-31    5.  The county assessor of each county shall not assess property

4-32  assessed pursuant to this section.

4-33    Sec. 4.  NRS 361.620 is hereby amended to read as follows:

4-34    361.620  [The] Except as otherwise provided by specific statute, the

4-35  additional penalties and costs provided for in this chapter shall be paid into

4-36  the county general fund for the use of the county.

4-37    Sec. 5.  NRS 362.100 is hereby amended to read as follows:

4-38    362.100  1.  The department shall:

4-39    (a) Investigate and determine the net proceeds of all minerals extracted

4-40  and certify them as provided in NRS 362.100 to 362.240, inclusive.

4-41    (b) Appraise and assess all reduction, smelting and milling works,

4-42  plants and facilities, whether or not associated with a mine, all drilling rigs,

4-43  and all supplies, machinery, equipment, apparatus, facilities, buildings,

4-44  structures and other improvements used in connection with any mining,

4-45  drilling, reduction, smelting or milling operation as provided in chapter 361

4-46  of NRS.

4-47    2.  Taxes assessed pursuant to paragraph (b) of subsection 1 must be

4-48  paid to the department. Upon receipt of the taxes, the department shall:

4-49    (a) Apportion all taxes due each county;

5-1    (b) Withhold .75 percent of the taxes from the amount apportioned to

5-2  each county, as compensation to the state for the costs related to

5-3  assessing and collecting the taxes, and transmitting the amount withheld

5-4  to the state treasurer for deposit in the appropriate account in the state

5-5  general fund; and

5-6    (c) Promptly remit to each county the remainder of the amount of

5-7  taxes apportioned to the county.

5-8    3.  As used in this section, “net proceeds of all minerals extracted”

5-9  includes the proceeds of all:

5-10    (a) Operating mines;

5-11    (b) Operating oil and gas wells;

5-12    (c) Operations extracting geothermal resources for profit, except an

5-13  operation which uses natural hot water to enhance the growth of animal or

5-14  plant life; and

5-15    (d) Operations extracting minerals from natural solutions.

5-16    Sec. 6.  This act becomes effective on July 1, 2001.

 

5-17  H