Senate Bill No. 557–Committee on Government Affairs
CHAPTER..........
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:
Section 1. NRS 365.550 is hereby amended to read as follows:
365.550 1. The receipts of the tax levied pursuant to NRS 365.180
must be allocated monthly by the department to the counties using the
following formula:
(a) [One-fourth in proportion to total area.
(b) One-fourth in proportion to population.
(c) One-fourth in proportion to road mileage and street mileage of
nonfederal aid primary roads.
(d) One-fourth in proportion to vehicle miles of travel on nonfederal aid
primary roads.] Determine the average monthly amount each county
received in the fiscal year ending on June 30, 2001, and allocate to each
county that amount, or if the total amount to be allocated is less than that
amount, allocate to each county a percentage of the total amount to be
allocated that is equal to the percentage of the total amount allocated to
that county in the fiscal year ending on June 30, 2000;
(b) Determine for each county an amount from the total amount to be
allocated using the following formula:
(1) Two-thirds in proportion to population; and
(2) One-third in proportion to road mileage and street mileage of
improved roads or streets maintained by the county or an incorporated
city located within the county,
and compare that amount to the amount allocated to the county pursuant
to paragraph (a);
(c) Identify each county for which the amount determined pursuant to
paragraph (b) is greater than the amount allocated to the county
pursuant to paragraph (a); and
(d) Allocate to any county which is identified pursuant to paragraph
(c), using the formula set forth in paragraph (b), any amount from the
tax levied pursuant to NRS 365.180 that remains after the allocation
required pursuant to paragraph (a).
2. Within 10 calendar days after June 1 of each fiscal year, the
department shall:
(a) Project the total amount that each county will be allocated
pursuant to subsection 1 for the current fiscal year.
(b) If the total amount allocated to all the counties will not exceed the
total amount that was received by all the counties for the fiscal year
ending on June 30, 2001, adjust the final monthly allocation to be made
to each county so that each county is allocated a percentage of the total
amount to be allocated that is equal to the percentage of the total amount
allocated to that county in the fiscal year ending on June 30, 2001.
(c) If a county receives an allocation pursuant to paragraph (d) of
subsection 1, determine whether the total monthly allocations projected
to be made to that county pursuant to subsection 1 for the current fiscal
year exceed the total amount the county received in the fiscal year ending
on June 30, 2001. If the total monthly allocations projected to be made to
the county do not exceed the total amount the county received in the
fiscal year ending on June 30, 2001, the department shall adjust the final
monthly allocation to be made to the county for the current fiscal year so
that the total amount allocated to the county for the current fiscal year
equals the total amount the county received in the fiscal year ending on
June 30, 2001.
3. Of the money allocated to each county pursuant to the provisions of
[subsection 1: ] subsections 1 and 2:
(a) An amount equal to that part of the allocation which represents 1.25
cents of the tax per gallon must be used exclusively for the service and
redemption of revenue bonds issued pursuant to chapter 373 of NRS, for
the construction, maintenance and repair of county roads, and for the
purchase of equipment for that construction, maintenance and repair, under
the direction of the boards of county commissioners of the several counties,
and must not be used to defray expenses of administration; and
(b) An amount equal to that part of the allocation which represents 2.35
cents of the tax per gallon must be allocated [pursuant to the following
formula:
(1) If there are no incorporated cities in the county,] to the county [;
and
(2) If there is at least one incorporated city in the county,] , if there
are no incorporated cities in the county, or to the county and any
incorporated cities in the county , if there is at least one incorporated city
in the county, pursuant to the following formula [set forth for counties in
subsection 1.] :
(1) One-fourth in proportion to total area.
(2) One-fourth in proportion to population.
(3) One-fourth in proportion to road mileage and street mileage of
nonfederal aid primary roads.
(4) One-fourth in proportion to vehicle miles of travel on
nonfederal aid primary roads.
For the purpose of applying the formula, the area of the county excludes
the area included in any incorporated city.
[3.] 4. The amount allocated to the counties and incorporated cities
pursuant to subsections 1 , [and] 2 and 3 must be remitted monthly. The
state controller shall draw his warrants payable to the county treasurer of
each of the several counties and the city treasurer of each of the several
incorporated cities, as applicable, and the state treasurer shall pay the
warrants out of the proceeds of the tax levied pursuant to NRS 365.180.
[4.] 5. The formula computations must be made as of July 1 of each
year by the department, based on estimates which must be furnished by the
department of transportation[. The] and, if applicable, any adjustments to
the estimates determined to be appropriate by the committee pursuant to
subsection 9. Except as otherwise provided in subsection 9, the
determination made by the department is conclusive.
[5.] 6. The department of transportation shall complete:
(a) The estimates of the total mileage of improved roads or streets
maintained by each county and incorporated city on or before August 31
of each year.
(b) A physical audit of the information submitted by each county and
incorporated city pursuant to subsection 7 at least once every 10 years.
7. Each county and incorporated city shall, not later than [January]
March 1 of each year, submit a list to the department of transportation
setting forth:
(a) Each improved road or street that is maintained by the county or
city; and
(b) The beginning and ending points and the total mileage of each of
those improved roads or streets.
Each county and incorporated city shall, at least 10 days before the list is
submitted to the department of transportation, hold a public hearing to
identify and determine the improved roads and streets maintained by the
county or city.
[6.] 8. If a county or incorporated city does not agree with the
estimates prepared by the department of transportation pursuant to
subsection 6, the county or incorporated city may request that the
subcommittee examine the estimates and recommend an adjustment to
the estimates. Such a request must be submitted to the subcommittee not
later than October 15.
9. The subcommittee shall review any request it receives pursuant to
subsection 8 and report to the committee its findings and any
recommendations for an adjustment to the estimates it determines is
appropriate. The committee shall hold a public hearing and determine
whether an adjustment to the estimates is appropriate on or before
December 31 of the year it receives a request pursuant to subsection 8.
Any determination made by the committee pursuant to this subsection is
conclusive.
10. The subcommittee shall monitor the fiscal impact of the formula
set forth in this section on counties and incorporated cities and report
regularly to the committee concerning its findings and recommendations
regarding that fiscal impact.
11. As used in this section[, “construction,] :
(a) “Committee” means the legislative committee for local government
taxes and finance established pursuant to NRS 218.53881.
(b) “Construction, maintenance and repair” includes the acquisition,
operation or use of any material, equipment or facility that is used
exclusively for the construction, maintenance or repair of a county or city
road and is necessary for the safe and efficient use of that road, including,
without limitation:
[(a)] (1) Grades and regrades;
[(b)] (2) Graveling, oiling, surfacing, macadamizing and paving;
[(c)] (3) Sweeping, cleaning and sanding roads and removing snow
from a road;
[(d)] (4) Crosswalks and sidewalks;
[(e)] (5) Culverts, catch basins, drains, sewers and manholes;
[(f)] (6) Inlets and outlets;
[(g)] (7) Retaining walls, bridges, overpasses, underpasses, tunnels and
approaches;
[(h)] (8) Artificial lights and lighting equipment, parkways, control of
vegetation and sprinkling facilities;
[(i)] (9) Rights of way;
[(j)] (10) Grade and traffic separators;
[(k)] (11) Fences, cattle guards and other devices to control access to a
county or city road;
[(l)] (12) Signs and devices for the control of traffic; and
[(m)] (13) Facilities for personnel and the storage of equipment used to
construct, maintain or repair a county or city road.
(c) “Improved road or street” means a road or street that is, at least:
(1) Aligned and graded to allow reasonably convenient use by a
motor vehicle; and
(2) Drained sufficiently by a longitudinal and transverse drainage
system to prevent serious impairment of the road or street by surface
water.
(d) “Subcommittee” means the subcommittee appointed pursuant to
NRS 218.53884.
Sec. 2. NRS 365.550 is hereby amended to read as follows:
365.550 1. The receipts of the tax levied pursuant to NRS 365.180
must be allocated monthly by the department to the counties using the
following formula:
(a) Determine the average monthly amount each county received in the
fiscal year ending on June 30, 2001, and allocate to each county that
amount, or if the total amount to be allocated is less than that amount,
allocate to each county a percentage of the total amount to be allocated that
is equal to the percentage of the total amount allocated to that county in the
fiscal year ending on June 30, 2000;
(b) Determine for each county an amount from the total amount to be
allocated using the following formula:
(1) Two-thirds in proportion to population; and
(2) One-third in proportion to road mileage and street mileage of
improved roads or streets maintained by the county or an incorporated city
located within the county,
and compare that amount to the amount allocated to the county pursuant to
paragraph (a);
(c) Identify each county for which the amount determined pursuant to
paragraph (b) is greater than the amount allocated to the county pursuant to
paragraph (a); and
(d) Allocate to any county which is identified pursuant to paragraph (c),
using the formula set forth in paragraph (b), any amount from the tax
levied pursuant to NRS 365.180 that remains after the allocation required
pursuant to paragraph (a).
2. Within 10 calendar days after June 1 of each fiscal year, the
department shall:
(a) Project the total amount that each county will be allocated pursuant
to subsection 1 for the current fiscal year.
(b) If the total amount allocated to all the counties will not exceed the
total amount that was received by all the counties for the fiscal year ending
on June 30, 2001, adjust the final monthly allocation to be made to each
county so that each county is allocated a percentage of the total amount to
be allocated that is equal to the percentage of the total amount allocated to
that county in the fiscal year ending on June 30, 2001.
(c) If a county receives an allocation pursuant to paragraph (d) of
subsection 1, determine whether the total monthly allocations projected to
be made to that county pursuant to subsection 1 for the current fiscal year
exceed the total amount the county received in the fiscal year ending on
June 30, 2001. If the total monthly allocations projected to be made to the
county do not exceed the total amount the county received in the fiscal year
ending on June 30, 2001, the department shall adjust the final monthly
allocation to be made to the county for the current fiscal year so that the
total amount allocated to the county for the current fiscal year equals the
total amount the county received in the fiscal year ending on June 30,
2001.
3. Of the money allocated to each county pursuant to the provisions of
subsections 1 and 2:
(a) An amount equal to that part of the allocation which represents 1.25
cents of the tax per gallon must be used exclusively for the service and
redemption of revenue bonds issued pursuant to chapter 373 of NRS, for
the construction, maintenance and repair of county roads, and for the
purchase of equipment for that construction, maintenance and repair, under
the direction of the boards of county commissioners of the several counties,
and must not be used to defray expenses of administration; and
(b) An amount equal to that part of the allocation which represents 2.35
cents of the tax per gallon must be allocated to the county, if there are no
incorporated cities in the county, or to the county and any incorporated
cities in the county, if there is at least one incorporated city in the county,
pursuant to the following formula:
(1) One-fourth in proportion to total area.
(2) One-fourth in proportion to population.
(3) One-fourth in proportion to road mileage and street mileage of
nonfederal aid primary roads.
(4) One-fourth in proportion to vehicle miles of travel on nonfederal
aid primary roads.
For the purpose of applying the formula, the area of the county excludes
the area included in any incorporated city.
4. The amount allocated to the counties and incorporated cities
pursuant to subsections 1, 2 and 3 must be remitted monthly. The state
controller shall draw his warrants payable to the county treasurer of each of
the several counties and the city treasurer of each of the several
incorporated cities, as applicable, and the state treasurer shall pay the
warrants out of the proceeds of the tax levied pursuant to NRS 365.180.
5. The formula computations must be made as of July 1 of each year
by the department, based on estimates which must be furnished by the
department of transportation and, if applicable, any adjustments to the
estimates determined to be appropriate by the committee pursuant to
subsection 9. Except as otherwise provided in subsection 9, the
determination made by the department is conclusive.
6. The department of transportation shall complete:
(a) The estimates of the total mileage of improved roads or streets
maintained by each county and incorporated city on or before August 31 of
each year.
(b) A physical audit of the information submitted by each county and
incorporated city pursuant to subsection 7 at least once every 10 years.
7. Each county and incorporated city shall, not later than March 1 of
each year, submit a list to the department of transportation setting forth:
(a) Each improved road or street that is maintained by the county or
city; and
(b) The beginning and ending points and the total mileage of each of
those improved roads or streets.
Each county and incorporated city shall, at least 10 days before the list is
submitted to the department of transportation, hold a public hearing to
identify and determine the improved roads and streets maintained by the
county or city.
8. If a county or incorporated city does not agree with the estimates
prepared by the department of transportation pursuant to subsection 6, the
county or incorporated city may request that the [subcommittee] committee
examine the estimates and recommend an adjustment to the estimates.
Such a request must be submitted to the [subcommittee] committee not
later than October 15.
9. [The subcommittee shall review any request it receives pursuant to
subsection 8 and report to the committee its findings and any
recommendations for an adjustment to the estimates it determines is
appropriate.] The committee shall hold a public hearing and review any
request it receives pursuant to subsection 8 and determine whether an
adjustment to the estimates is appropriate on or before December 31 of the
year it receives a request pursuant to subsection 8. Any determination made
by the committee pursuant to this subsection is conclusive.
10. The [subcommittee] committee shall monitor the fiscal impact of
the formula set forth in this section on counties and incorporated cities .
[and report regularly to the committee] Biennially, the committee shall
prepare a report concerning its findings and recommendations regarding
that fiscal impact[.] and submit the report on or before February 15 of
each odd-numbered year to the director of the legislative counsel bureau
for transmittal to the senate and assembly committees on taxation of the
Nevada legislature for their review.
11. As used in this section:
(a) “Committee” means the [legislative committee for local government
taxes and finance established pursuant to NRS 218.53881.] committee on
local government finance created pursuant to NRS 266.0165.
(b) “Construction, maintenance and repair” includes the acquisition,
operation or use of any material, equipment or facility that is used
exclusively for the construction, maintenance or repair of a county or city
road and is necessary for the safe and efficient use of that road, including,
without limitation:
(1) Grades and regrades;
(2) Graveling, oiling, surfacing, macadamizing and paving;
(3) Sweeping, cleaning and sanding roads and removing snow from a
road;
(4) Crosswalks and sidewalks;
(5) Culverts, catch basins, drains, sewers and manholes;
(6) Inlets and outlets;
(7) Retaining walls, bridges, overpasses, underpasses, tunnels and
approaches;
(8) Artificial lights and lighting equipment, parkways, control of
vegetation and sprinkling facilities;
(9) Rights of way;
(10) Grade and traffic separators;
(11) Fences, cattle guards and other devices to control access to a
county or city road;
(12) Signs and devices for the control of traffic; and
(13) Facilities for personnel and the storage of equipment used to
construct, maintain or repair a county or city road.
(c) “Improved road or street” means a road or street that is, at least:
(1) Aligned and graded to allow reasonably convenient use by a
motor vehicle; and
(2) Drained sufficiently by a longitudinal and transverse drainage
system to prevent serious impairment of the road or street by surface water.
[(d) “Subcommittee” means the subcommittee appointed pursuant to
NRS 218.53884.]
Sec. 3. NRS 218.5388 is hereby amended to read as follows:
218.5388 As used in NRS 218.5388 to 218.53886, inclusive,
“committee” means a legislative committee [to study the distribution
among local governments of revenue from state and local taxes.] for local
government taxes and finance.
Sec. 4. NRS 218.53881 is hereby amended to read as follows:
218.53881 1. There is hereby established a legislative committee [to
study the distribution among local governments of revenue from state and
local taxes] for local government taxes and finance consisting of:
(a) Two members appointed by the majority leader of the senate from
the membership of the senate standing committee on government affairs
during the immediately preceding session of the legislature;
(b) Two members appointed by the majority leader of the senate from
the membership of the senate standing committee on taxation during the
immediately preceding session of the legislature;
(c) Two members appointed by the speaker of the assembly from the
membership of the assembly standing committee on government affairs
during the immediately preceding session of the legislature; and
(d) Two members appointed by the speaker of the assembly from the
membership of the assembly standing committee on taxation during the
immediately preceding session of the legislature.
2. The committee shall consult with an advisory committee consisting
of the executive director of the department of taxation and 10 members
who are representative of various geographical areas of the state and are
appointed for terms of 2 years commencing on July 1 of each odd-
numbered year as follows:
(a) One member of the committee on local government finance created
pursuant to NRS 266.0165 appointed by the Nevada League of Cities;
(b) One member of the committee on local government finance created
pursuant to NRS 266.0165 appointed by the Nevada Association of
Counties;
(c) One member of the committee on local government finance created
pursuant to NRS 266.0165 appointed by the Nevada School Trustees
Association;
(d) Three members involved in the government of a county appointed
by the Nevada Association of Counties;
(e) Three members involved in the government of an incorporated city
appointed by the Nevada League of Cities; and
(f) One member who is a member of a board of trustees for a general
improvement district appointed by the legislative commission.
The members of the advisory committee are nonvoting members of the
committee. When meeting as the advisory committee, the members shall
comply with the provisions of chapter 241 of NRS.
3. The legislative members of the committee shall elect a chairman
from one house of the legislature and a vice chairman from the other house.
Each chairman and vice chairman holds office for a term of 2 years
commencing on July 1 of each odd-numbered year.
4. Any member of the committee who is not a candidate for reelection
or who is defeated for reelection continues to serve until the next session of
the legislature convenes.
5. Vacancies on the committee must be filled in the same manner as
original appointments.
6. The committee shall report annually to the legislative commission
concerning its activities and any recommendations.
Sec. 5. Section 9 of chapter 661, Statutes of Nevada 1997, at page
3309, is hereby amended to read as follows:
Sec. 9. This act becomes effective on July 1, 1997, and expires
by limitation on July 1, [2001.] 2005.
Sec. 6. 1. This section and sections 3, 4 and 5 of this act become
effective on July 1, 2001.
2. Section 1 of this act becomes effective at 12:01 a.m. on July 1,
2001.
3. Sections 1, 3, 4 and 5 of this act expire by limitation on
July 1, 2005.
4. Section 2 of this act becomes effective at 12:01 a.m. on
July 1, 2005.
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