Senate Bill No. 557–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 26, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Makes various changes concerning distribution of certain revenue from tax on certain motor vehicle fuel. (BDR 32‑893)

 

FISCAL NOTE:    Effect on Local Government: Yes.

                                 Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to taxation; revising the formula for the distribution among counties of certain revenue from the tax on certain motor vehicle fuel; providing for a review of the estimates of the total mileage of roads or streets maintained by each county and incorporated city prepared by the department of transportation; extending the date for expiration of the legislative committee to study the distribution among local governments of revenue from state and local taxes and certain statutory provisions relating thereto; changing the name of the committee to the legislative committee for local government taxes and finance; 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 365.550 is hereby amended to read as follows:

1-2    365.550  1.  The receipts of the tax levied pursuant to NRS 365.180

1-3  must be allocated monthly by the department to the counties using the

1-4  following formula:

1-5    (a) [One-fourth in proportion to total area.

1-6    (b) One-fourth in proportion to population.

1-7    (c) One-fourth in proportion to road mileage and street mileage of

1-8  nonfederal aid primary roads.

1-9    (d) One-fourth in proportion to vehicle miles of travel on nonfederal aid

1-10  primary roads.] Determine the average monthly amount each county

1-11  received in the fiscal year ending on June 30, 2001, and allocate to each

1-12  county that amount, or if the total amount to be allocated is less than that

1-13  amount, allocate to each county a percentage of the total amount to be

2-1  allocated that is equal to the percentage of the total amount allocated to

2-2  that county in the fiscal year ending on June 30, 2000;

2-3    (b) Determine for each county an amount from the total amount to be

2-4  allocated using the following formula:

2-5       (1) Two-thirds in proportion to population; and

2-6       (2) One-third in proportion to road mileage and street mileage of

2-7  nonfederal aid primary roads,

2-8  and compare that amount to the amount allocated to the county pursuant

2-9  to paragraph (a);

2-10    (c) Identify each county for which the amount determined pursuant to

2-11  paragraph (b) is greater than the amount allocated to the county

2-12  pursuant to paragraph (a); and

2-13    (d) Allocate to any county which is identified pursuant to paragraph

2-14  (c), using the formula set forth in paragraph (b), any amount from the

2-15  tax levied pursuant to NRS 365.180 that remains after the allocation

2-16  required pursuant to paragraph (a).

2-17    2.  Within 10 calendar days after June 1 of each fiscal year, the

2-18  department shall:

2-19    (a) Project the total amount that each county will be allocated

2-20  pursuant to subsection 1 for the current fiscal year.

2-21    (b) If the total amount allocated to all the counties will not exceed the

2-22  total amount that was received by all the counties for the fiscal year

2-23  ending on June 30, 2001, adjust the final monthly allocation to be made

2-24  to each county so that each county is allocated a percentage of the total

2-25  amount to be allocated that is equal to the percentage of the total amount

2-26  allocated to that county in the fiscal year ending on June 30, 2001.

2-27    (c) If a county receives an allocation pursuant to paragraph (d) of

2-28  subsection 1, determine whether the total monthly allocations projected

2-29  to be made to that county pursuant to subsection 1 for the current fiscal

2-30  year exceed the total amount the county received in the fiscal year ending

2-31  on June 30, 2001. If the total monthly allocations projected to be made to

2-32  the county do not exceed the total amount the county received in the

2-33  fiscal year ending on June 30, 2001, the department shall adjust the final

2-34  monthly allocation to be made to the county for the current fiscal year so

2-35  that the total amount allocated to the county for the current fiscal year

2-36  equals the total amount the county received in the fiscal year ending on

2-37  June 30, 2001.

2-38    3.  The amount allocated to the counties under the formula must be

2-39  remitted monthly. The state controller shall draw his warrants payable to

2-40  the county treasurer of each of the several counties, and the state treasurer

2-41  shall pay the warrants out of the proceeds of the tax levied pursuant to NRS

2-42  365.180.

2-43    [3.] 4. Of the money received by the counties pursuant to the

2-44  provisions of this section:

2-45    (a) An amount equal to that part of the allocation which represents 1.25

2-46  cents of the tax per gallon must be used exclusively for the service and

2-47  redemption of revenue bonds issued pursuant to chapter 373 of NRS, for

2-48  the construction, maintenance and repair of county roads, and for the

2-49  purchase of equipment for that construction, maintenance and repair, under

3-1  the direction of the boards of county commissioners of the several counties,

3-2  and must not be used to defray expenses of administration; and

3-3    (b) An amount equal to that part of the allocation which represents 2.35

3-4  cents of the tax per gallon must be allocated pursuant to the following

3-5  formula:

3-6       (1) If there are no incorporated cities in the county, to the county; and

3-7       (2) If there is at least one incorporated city in the county, to the

3-8  county and any incorporated cities in the county pursuant to the formula set

3-9  forth for counties in subsection 1. For the purpose of applying the formula,

3-10  the area of the county excludes the area included in any incorporated city.

3-11    [4.] 5.  The formula computations must be made as of July 1 of each

3-12  year by the department, based on estimates which must be furnished by the

3-13  department of transportation[. The] and, if applicable, any adjustments to

3-14  the estimates determined to be appropriate by the committee pursuant to

3-15  subsection 9. Except as otherwise provided in subsection 9, the

3-16  determination made by the department is conclusive.

3-17    [5.] 6. The department of transportation shall complete:

3-18    (a) The estimates of the total mileage of roads or streets maintained by

3-19  each county and incorporated city on or before August 31 of each year.

3-20    (b) A physical audit of the information submitted by each county and

3-21  incorporated city pursuant to subsection 7 at least once every 10 years.

3-22    7.  Each county and incorporated city shall, not later than [January]

3-23  March 1 of each year, submit a list to the department of transportation

3-24  setting forth:

3-25    (a) Each road or street that is maintained by the county or city; and

3-26    (b) The beginning and ending points and the total mileage of each of

3-27  those roads or streets.

3-28  Each county and incorporated city shall, at least 10 days before the list is

3-29  submitted to the department of transportation, hold a public hearing to

3-30  identify and determine the roads and streets maintained by the county or

3-31  city.

3-32    [6.] 8. If a county or incorporated city does not agree with the

3-33  estimates prepared by the department of transportation pursuant to

3-34  subsection 6, the county or incorporated city may request that the

3-35  subcommittee examine the estimates and recommend an adjustment to

3-36  the estimates. Such a request must be submitted to the subcommittee not

3-37  later than October 15.

3-38    9.  The subcommittee shall review any request it receives pursuant to

3-39  subsection 8 and report to the committee its findings and any

3-40  recommendations for an adjustment to the estimates it determines is

3-41  appropriate. The committee shall hold a public hearing and determine

3-42  whether an adjustment to the estimates is appropriate on or before

3-43  December 31 of the year it receives a request pursuant to subsection 8.

3-44  Any determination made by the committee pursuant to this subsection is

3-45  conclusive.

3-46    10.  The subcommittee shall monitor the fiscal impact of the formula

3-47  set forth in this section on counties and incorporated cities and report

3-48  regularly to the committee concerning its findings and recommendations

3-49  regarding that fiscal impact.

4-1    11.  As used in this section[, “construction,] :

4-2    (a) “Committee” means the legislative committee for local government

4-3  taxes and finance established pursuant to NRS 218.53881.

4-4    (b) “Construction, maintenance and repair” includes the acquisition,

4-5  operation or use of any material, equipment or facility that is used

4-6  exclusively for the construction, maintenance or repair of a county or city

4-7  road and is necessary for the safe and efficient use of that road, including,

4-8  without limitation:

4-9    [(a)] (1) Grades and regrades;

4-10    [(b)] (2) Graveling, oiling, surfacing, macadamizing and paving;

4-11    [(c)] (3) Sweeping, cleaning and sanding roads and removing snow

4-12  from a road;

4-13    [(d)] (4) Crosswalks and sidewalks;

4-14    [(e)] (5) Culverts, catch basins, drains, sewers and manholes;

4-15    [(f)] (6) Inlets and outlets;

4-16    [(g)] (7) Retaining walls, bridges, overpasses, underpasses, tunnels and

4-17  approaches;

4-18    [(h)] (8) Artificial lights and lighting equipment, parkways, control of

4-19  vegetation and sprinkling facilities;

4-20    [(i)] (9) Rights of way;

4-21    [(j)] (10) Grade and traffic separators;

4-22    [(k)] (11) Fences, cattle guards and other devices to control access to a

4-23  county or city road;

4-24    [(l)] (12) Signs and devices for the control of traffic; and

4-25    [(m)] (13) Facilities for personnel and the storage of equipment used to

4-26  construct, maintain or repair a county or city road.

4-27    (c) “Subcommittee” means the subcommittee appointed pursuant to

4-28  NRS 218.53884.

4-29    Sec. 2.  NRS 365.550 is hereby amended to read as follows:

4-30    365.550  1.  The receipts of the tax levied pursuant to NRS 365.180

4-31  must be allocated monthly by the department to the counties using the

4-32  following formula:

4-33    (a) Determine the average monthly amount each county received in the

4-34  fiscal year ending on June 30, 2001, and allocate to each county that

4-35  amount, or if the total amount to be allocated is less than that amount,

4-36  allocate to each county a percentage of the total amount to be allocated that

4-37  is equal to the percentage of the total amount allocated to that county in the

4-38  fiscal year ending on June 30, 2000;

4-39    (b) Determine for each county an amount from the total amount to be

4-40  allocated using the following formula:

4-41      (1) Two-thirds in proportion to population; and

4-42      (2) One-third in proportion to road mileage and street mileage of

4-43  nonfederal aid primary roads,

4-44  and compare that amount to the amount allocated to the county pursuant to

4-45  paragraph (a);

4-46    (c) Identify each county for which the amount determined pursuant to

4-47  paragraph (b) is greater than the amount allocated to the county pursuant to

4-48  paragraph (a); and

5-1    (d) Allocate to any county which is identified pursuant to paragraph (c),

5-2  using the formula set forth in paragraph (b), any amount from the tax

5-3  levied pursuant to NRS 365.180 that remains after the allocation required

5-4  pursuant to paragraph (a).

5-5    2.  Within 10 calendar days after June 1 of each fiscal year, the

5-6  department shall:

5-7    (a) Project the total amount that each county will be allocated pursuant

5-8  to subsection 1 for the current fiscal year.

5-9    (b) If the total amount allocated to all the counties will not exceed the

5-10  total amount that was received by all the counties for the fiscal year ending

5-11  on June 30, 2001, adjust the final monthly allocation to be made to each

5-12  county so that each county is allocated a percentage of the total amount to

5-13  be allocated that is equal to the percentage of the total amount allocated to

5-14  that county in the fiscal year ending on June 30, 2001.

5-15    (c) If a county receives an allocation pursuant to paragraph (d) of

5-16  subsection 1, determine whether the total monthly allocations projected to

5-17  be made to that county pursuant to subsection 1 for the current fiscal year

5-18  exceed the total amount the county received in the fiscal year ending on

5-19  June 30, 2001. If the total monthly allocations projected to be made to the

5-20  county do not exceed the total amount the county received in the fiscal year

5-21  ending on June 30, 2001, the department shall adjust the final monthly

5-22  allocation to be made to the county for the current fiscal year so that the

5-23  total amount allocated to the county for the current fiscal year equals the

5-24  total amount the county received in the fiscal year ending on June 30,

5-25  2001.

5-26    3.  The amount allocated to the counties under the formula must be

5-27  remitted monthly. The state controller shall draw his warrants payable to

5-28  the county treasurer of each of the several counties, and the state treasurer

5-29  shall pay the warrants out of the proceeds of the tax levied pursuant to NRS

5-30  365.180.

5-31    4.  Of the money received by the counties pursuant to the provisions of

5-32  this section:

5-33    (a) An amount equal to that part of the allocation which represents 1.25

5-34  cents of the tax per gallon must be used exclusively for the service and

5-35  redemption of revenue bonds issued pursuant to chapter 373 of NRS, for

5-36  the construction, maintenance and repair of county roads, and for the

5-37  purchase of equipment for that construction, maintenance and repair, under

5-38  the direction of the boards of county commissioners of the several counties,

5-39  and must not be used to defray expenses of administration; and

5-40    (b) An amount equal to that part of the allocation which represents 2.35

5-41  cents of the tax per gallon must be allocated pursuant to the following

5-42  formula:

5-43      (1) If there are no incorporated cities in the county, to the county; and

5-44      (2) If there is at least one incorporated city in the county, to the

5-45  county and any incorporated cities in the county pursuant to the formula set

5-46  forth for counties in subsection 1. For the purpose of applying the formula,

5-47  the area of the county excludes the area included in any incorporated city.

5-48    5.  The formula computations must be made as of July 1 of each year

5-49  by the department, based on estimates which must be furnished by the

6-1  department of transportation and, if applicable, any adjustments to the

6-2  estimates determined to be appropriate by the committee pursuant to

6-3  subsection 9. Except as otherwise provided in subsection 9, the

6-4  determination made by the department is conclusive.

6-5    6.  The department of transportation shall complete:

6-6    (a) The estimates of the total mileage of roads or streets maintained by

6-7  each county and incorporated city on or before August 31 of each year.

6-8    (b) A physical audit of the information submitted by each county and

6-9  incorporated city pursuant to subsection 7 at least once every 10 years.

6-10    7.  Each county and incorporated city shall, not later than March 1 of

6-11  each year, submit a list to the department of transportation setting forth:

6-12    (a) Each road or street that is maintained by the county or city; and

6-13    (b) The beginning and ending points and the total mileage of each of

6-14  those roads or streets.

6-15  Each county and incorporated city shall, at least 10 days before the list is

6-16  submitted to the department of transportation, hold a public hearing to

6-17  identify and determine the roads and streets maintained by the county or

6-18  city.

6-19    8.  If a county or incorporated city does not agree with the estimates

6-20  prepared by the department of transportation pursuant to subsection 6, the

6-21  county or incorporated city may request that the [subcommittee] committee

6-22  examine the estimates and recommend an adjustment to the estimates.

6-23  Such a request must be submitted to the [subcommittee] committee not

6-24  later than October 15.

6-25    9.  [The subcommittee shall review any request it receives pursuant to

6-26  subsection 8 and report to the committee its findings and any

6-27  recommendations for an adjustment to the estimates it determines is

6-28  appropriate.] The committee shall hold a public hearing and review any

6-29  request it receives pursuant to subsection 8 and determine whether an

6-30  adjustment to the estimates is appropriate on or before December 31 of the

6-31  year it receives a request pursuant to subsection 8. Any determination made

6-32  by the committee pursuant to this subsection is conclusive.

6-33    10.  The [subcommittee] committee shall monitor the fiscal impact of

6-34  the formula set forth in this section on counties and incorporated cities .

6-35  [and report regularly to the committee] Biennially, the committee shall

6-36  prepare a report concerning its findings and recommendations regarding

6-37  that fiscal impact[.] and submit the report on or before February 15 of

6-38  each odd-numbered year to the director of the legislative counsel bureau

6-39  for transmittal to the senate and assembly committees on taxation of the

6-40  Nevada legislature for their review.

6-41    11.  As used in this section:

6-42    (a) “Committee” means the [legislative committee for local government

6-43  taxes and finance established pursuant to NRS 218.53881.] committee on

6-44  local government finance created pursuant to NRS 266.0165.

6-45    (b) “Construction, maintenance and repair” includes the acquisition,

6-46  operation or use of any material, equipment or facility that is used

6-47  exclusively for the construction, maintenance or repair of a county or city

6-48  road and is necessary for the safe and efficient use of that road, including,

6-49  without limitation:

7-1    (1) Grades and regrades;

7-2    (2) Graveling, oiling, surfacing, macadamizing and paving;

7-3    (3) Sweeping, cleaning and sanding roads and removing snow from a

7-4  road;

7-5    (4) Crosswalks and sidewalks;

7-6    (5) Culverts, catch basins, drains, sewers and manholes;

7-7    (6) Inlets and outlets;

7-8    (7) Retaining walls, bridges, overpasses, underpasses, tunnels and

7-9  approaches;

7-10    (8) Artificial lights and lighting equipment, parkways, control of

7-11  vegetation and sprinkling facilities;

7-12    (9) Rights of way;

7-13    (10) Grade and traffic separators;

7-14    (11) Fences, cattle guards and other devices to control access to a

7-15  county or city road;

7-16    (12) Signs and devices for the control of traffic; and

7-17    (13) Facilities for personnel and the storage of equipment used to

7-18  construct, maintain or repair a county or city road.

7-19    [(c) “Subcommittee” means the subcommittee appointed pursuant to

7-20  NRS 218.53884.]

7-21    Sec. 3.  NRS 218.5388 is hereby amended to read as follows:

7-22    218.5388  As used in NRS 218.5388 to 218.53886, inclusive,

7-23  “committee” means a legislative committee [to study the distribution

7-24  among local governments of revenue from state and local taxes.] for local

7-25  government taxes and finance.

7-26    Sec. 4.  NRS 218.53881 is hereby amended to read as follows:

7-27    218.53881  1.  There is hereby established a legislative committee [to

7-28  study the distribution among local governments of revenue from state and

7-29  local taxes] for local government taxes and finance consisting of:

7-30    (a) Two members appointed by the majority leader of the senate from

7-31  the membership of the senate standing committee on government affairs

7-32  during the immediately preceding session of the legislature;

7-33    (b) Two members appointed by the majority leader of the senate from

7-34  the membership of the senate standing committee on taxation during the

7-35  immediately preceding session of the legislature;

7-36    (c) Two members appointed by the speaker of the assembly from the

7-37  membership of the assembly standing committee on government affairs

7-38  during the immediately preceding session of the legislature; and

7-39    (d) Two members appointed by the speaker of the assembly from the

7-40  membership of the assembly standing committee on taxation during the

7-41  immediately preceding session of the legislature.

7-42    2.  The committee shall consult with an advisory committee consisting

7-43  of the executive director of the department of taxation and 10 members

7-44  who are representative of various geographical areas of the state and are

7-45  appointed for terms of 2 years commencing on July 1 of each odd-

7-46  numbered year as follows:

7-47    (a) One member of the committee on local government finance created

7-48  pursuant to NRS 266.0165 appointed by the Nevada League of Cities;

8-1    (b) One member of the committee on local government finance created

8-2  pursuant to NRS 266.0165 appointed by the Nevada Association of

8-3  Counties;

8-4    (c) One member of the committee on local government finance created

8-5  pursuant to NRS 266.0165 appointed by the Nevada School Trustees

8-6  Association;

8-7    (d) Three members involved in the government of a county appointed

8-8  by the Nevada Association of Counties;

8-9    (e) Three members involved in the government of an incorporated city

8-10  appointed by the Nevada League of Cities; and

8-11    (f) One member who is a member of a board of trustees for a general

8-12  improvement district appointed by the legislative commission.

8-13  The members of the advisory committee are nonvoting members of the

8-14  committee. When meeting as the advisory committee, the members shall

8-15  comply with the provisions of chapter 241 of NRS.

8-16    3.  The legislative members of the committee shall elect a chairman

8-17  from one house of the legislature and a vice chairman from the other house.

8-18  Each chairman and vice chairman holds office for a term of 2 years

8-19  commencing on July 1 of each odd-numbered year.

8-20    4.  Any member of the committee who is not a candidate for reelection

8-21  or who is defeated for reelection continues to serve until the next session of

8-22  the legislature convenes.

8-23    5.  Vacancies on the committee must be filled in the same manner as

8-24  original appointments.

8-25    6.  The committee shall report annually to the legislative commission

8-26  concerning its activities and any recommendations.

8-27    Sec. 5.  Section 9 of chapter 661, Statutes of Nevada 1997, at page

8-28  3309, is hereby amended to read as follows:

8-29    Sec. 9.  This act becomes effective on July 1, 1997, and expires

8-30  by limitation on July 1, [2001.] 2005.

8-31    Sec. 6.  1.  This section and sections 1, 3, 4 and 5 of this act become

8-32  effective on July 1, 2001.

8-33    2.  Sections 1, 3, 4 and 5 of this act expire by limitation on
July 1, 2005.

8-34    3.  Section 2 of this act becomes effective at 12:01 a.m. on
July 1, 2005.

 

8-35  H