Senate Joint Resolution No. 20–Committee on
Government Affairs

(On Behalf of Legislative Committee to Study the
Distribution Among Local Governments of
Revenue From State and Local Taxes)

March 22, 1999

____________

Referred to Committee on Taxation

SUMMARY—Proposes to amend Nevada Constitution to provide requirements for enactment of property and sales tax exemptions. (BDR C‑709)

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 provide requirements for the enactment of property and sales tax exemptions.

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

1-2 Jointly, That a new section, designated section 6, be added to article 10

1-3 of the Constitution of the State of Nevada to read as follows:

1-4 Sec. 6. 1. The Legislature shall not enact an exemption from any

1-5 ad valorem tax on property or excise tax on the sale, storage, use or

1-6 consumption of tangible personal property sold at retail unless the

1-7 Legislature:

1-8 (a) Determines that the exemption will achieve a bona fide social or

1-9 economic purpose;

1-10 (b) Restricts the eligibility for the exemption solely to the intended

1-11 beneficiaries of the exemption;

1-12 (c) Determines that the exemption will not have a material adverse

1-13 effect on the finances of the state or any local government that would

1-14 otherwise receive revenue from the tax from which the exemption would

1-15 be granted;

1-16 (d) Determines that the exemption will not impair adversely the ability

1-17 of the state or a unit of government to pay, when due, all interest and

1-18 principal on any outstanding bonds or any other obligations for which

2-1 revenue from the tax from which the exemption would be granted was

2-2 pledged; and

2-3 (e) Ensures that the requirements for claiming the exemption are as

2-4 similar as practicable for similar classes of taxpayers.

2-5 2. The Legislature shall review any exemption from any tax on

2-6 property or on the sale, storage, use or consumption of tangible personal

2-7 property sold at retail at least once every 6 years to determine whether the

2-8 purpose of the exemption is still valid and that the exemption is being

2-9 used effectively.

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