Senate Joint Resolution No. 11–Senator O’Connell

February 16, 1999

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Referred to Committee on Taxation

SUMMARY—Proposes to amend Nevada Constitution to authorize abatement of property tax for certain owners of single-family residences. (BDR C‑1435)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

SENATE JOINT RESOLUTION—Proposing to amend the Constitution of the State of Nevada to authorize the abatement of the property tax for certain owners of single-family residences.

1-1 Resolved by the Senate and Assembly of the State of Nevada,

1-2 Jointly, That section 1 of article 10 of the Constitution of the State of

1-3 Nevada be amended to read as follows:

1-4 Section 1. 1. The legislature shall provide by law for a uniform and

1-5 equal rate of assessment and taxation, and shall prescribe such regulations

1-6 as shall secure a just valuation for taxation of all property, real, personal

1-7 and possessory, except mines and mining claims, which shall be assessed

1-8 and taxed only as provided in section 5 of this article.

1-9 2. Shares of stock, bonds, mortgages, notes, bank deposits, book

1-10 accounts and credits, and securities and choses in action of like character

1-11 are deemed to represent interest in property already assessed and taxed,

1-12 either in Nevada or elsewhere, and shall be exempt.

1-13 3. The legislature may constitute agricultural and open-space real

1-14 property having a greater value for another use than that for which it is

1-15 being used, as a separate class for taxation purposes and may provide a

1-16 separate uniform plan for appraisal and valuation of such property for

1-17 assessment purposes. If such plan is provided, the legislature shall also

1-18 provide for retroactive assessment for a period of not less than 7 years

1-19 when agricultural and open-space real property is converted to a higher use

1-20 conforming to the use for which other nearby property is used.

1-21 4. Personal property which is moving in interstate commerce through

1-22 or over the territory of the State of Nevada, or which was consigned to a

1-23 warehouse, public or private, within the State of Nevada from outside the

1-24 State of Nevada for storage in transit to a final destination outside the State

2-1 of Nevada, whether specified when transportation begins or afterward, shall

2-2 be deemed to have acquired no situs in Nevada for purposes of taxation and

2-3 shall be exempt from taxation. Such property shall not be deprived of such

2-4 exemption because while in the warehouse the property is assembled,

2-5 bound, joined, processed, disassembled, divided, cut, broken in bulk,

2-6 relabeled or repackaged.

2-7 5. The legislature may exempt motor vehicles from the provisions of

2-8 the tax required by this section, and in lieu thereof, if such exemption is

2-9 granted, shall provide for a uniform and equal rate of assessment and

2-10 taxation of motor vehicles, which rate shall not exceed five cents on one

2-11 dollar of assessed valuation.

2-12 6. The legislature shall provide by law for a progressive reduction in

2-13 the tax upon business inventories by 20 percent in each year following the

2-14 adoption of this provision, and after the expiration of the 4th year such

2-15 inventories are exempt from taxation. The legislature may exempt any other

2-16 personal property, including livestock.

2-17 7. No inheritance tax shall ever be levied.

2-18 8. The legislature may exempt by law property used for municipal,

2-19 educational, literary, scientific or other charitable purposes, or to encourage

2-20 the conservation of energy or the substitution of other sources for fossil

2-21 sources of energy.

2-22 9. No income tax shall be levied upon the wages or personal income of

2-23 natural persons. Notwithstanding the foregoing provision, and except as

2-24 otherwise provided in subsection 1 of this section, taxes may be levied

2-25 upon the income or revenue of any business in whatever form it may be

2-26 conducted for profit in the state.

2-27 10. The legislature may provide by law for an abatement of the tax

2-28 upon or an exemption of part of the assessed value of a single-family

2-29 residence occupied by the owner to the extent necessary to avoid severe

2-30 economic hardship to the owner of the residence.

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