AB205_R1

Assembly Bill No. 205–Committee on Taxation

CHAPTER..........

AN ACT relating to taxation; increasing the tax on the rental of transient lodging within the City of Sparks to pay for certain projects and capital improvements that are intended to attract and expand tourism; revising the distribution of the tax on the rental of transient lodging in certain areas of Washoe County that was imposed to pay for certain projects; and providing other matters properly relating thereto.

Whereas, The Legislature hereby finds and declares that a general law cannot be made applicable for all provisions of this act because of the economic and geographical diversity of the local governments of this state, the unique growth patterns in those local governments and the special conditions experienced in the City of Sparks and Washoe County related to the disparate tax structures and the need to revitalize specific areas to promote tourism; now, therefore,

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 432, Statutes of Nevada 1999, at page

2011, is hereby amended by adding thereto new sections to be

designated as sections 6.6 to 6.9, inclusive, immediately preceding

section 7, to read as follows:

Sec. 6.6. 1. A tax at the rate of 2 1/2 percent of the

gross receipts from the rental of transient lodging is hereby

imposed in the City of Sparks.

2. The tax imposed pursuant to this section must:

(a) Be in addition to all other taxes imposed on the

revenue from the rental of transient lodging in the City of

Sparks and Washoe County;

(b) Be collected and enforced in the same manner as

provided for the collection of the tax imposed by NRS

244.3352, subject to the limitations set forth in NRS

244.3356, except that the proceeds of the tax may be used to

defray the costs of enforcing any applicable tax liens

incurred by the Reno/Sparks Convention and Visitors

Authority; and

Authority, which shall distribute the proceeds from the tax

to the City Council of the City of Sparks.

3. All decisions, and any deliberations leading to those

decisions, that are made by any body, including, without

limitation, the Reno/Sparks Convention and Visitors

Authority, the City Council of the City of Sparks and the

Sparks Tourism Facility and Revitalization Steering

Committee, concerning the expenditure, commitment or

other use of money derived from the proceeds of the tax

imposed pursuant to this section must be made at a public

meeting that complies with the provisions of chapter 241 of

NRS, whether or not the body is determined to be a public

body to which that chapter is applicable.

4. The tax imposed pursuant to this section expires by

limitation on the date on which the principal of, and the

interest on, any general or special obligations described in

paragraph (e) of subsection 1 of section 6.7 of this act are

fully paid. The proceeds from the tax must not be committed

for expenditure after that date. The City Council of the City

of Sparks shall, at least 30 days before such obligations are

fully paid, adopt an ordinance that sets forth the date on

which such obligations will be fully paid. Upon the adoption

of such an ordinance, the Reno/Sparks Convention and

Visitors Authority shall give written notice of the date on

which the tax will expire to each person providing transient

lodging who is liable for the payment of the tax.

5. As used in this section, “gross receipts from the

rental of transient lodging” does not include the tax

imposed or collected from paying guests pursuant to this

section.

Sec. 6.7. 1. The City Council of the City of Sparks

may expend the proceeds of the tax imposed pursuant to

section 6.6 of this act, and any applicable penalty or

interest. The proceeds of the tax and any applicable penalty

or interest:

(a) Must be used to develop, acquire, establish, improve

and construct projects and capital improvements that are

intended to attract and expand tourism and are, at the time

the proceeds from the tax are expended, located in or to be

located in:

(1) That portion of the Sparks Town Center Project

which is identified as Victorian Square; or

(2) Any other portion of the Sparks Town Center

Project, if the project or capital improvement provides a

direct benefit to a project or capital improvement located

within Victorian Square, as determined by the City Council

of the City of Sparks after obtaining the advice and

recommendations of the Committee.

(b) May be used to acquire, lease, rent and develop land,

interests in land, including, without limitation, easements,

reversionary estates, licenses and dedications, and

improvements to land, that will be used for projects and

capital improvements described in paragraph (a).

rehabilitate existing capital improvements or construct new

capital improvements described in paragraph (a).

(d) May be used to maintain and repair capital

improvements acquired or constructed pursuant to

paragraphs (b) and (c).

(e) May be irrevocably pledged, by an ordinance adopted

by the City Council of the City of Sparks, for the payment of

general and special obligations issued for the purposes set

forth in this subsection and may be treated as pledged

revenues for the purposes of subsection 3 of NRS 350.020.

(f) May be used for advertising, promotion, operating

costs or expenses not related to maintenance for land,

improvements, events or general governmental operations

associated with the projects and capital improvements

described in paragraph (a).

(g) Must not be used to pay administrative costs

associated with projects and capital improvements described

in paragraph (a), except those administrative costs related to

developing, constructing and financing such projects and

capital improvements and costs related to the issuance of

any general or special obligations.

2. The City Council of the City of Sparks shall, before

expending any proceeds of the tax pursuant to this section,

obtain the advice and recommendations of the Committee

concerning the expenditure of those proceeds.

3. For the purposes of this section, a project or capital

improvement shall be deemed to be intended to attract and

expand tourism if it is used for retail, entertainment,

recreational, scientific, cultural, historic or artistic

purposes, as determined by the City Council of the City of

Sparks after obtaining the advice and recommendations of

the Committee.

4. As used in this section:

(a) “Capital improvement” includes:

(1) Buildings, parking lots, parking structures,

landscape facilities, privately owned facilities or devices to

enhance the protection of persons or property, and capital

equipment for any of the foregoing;

(2) Off-street parking projects, park projects, security

walls, service facilities, sidewalk projects, street

beautification projects, telephone projects and

transportation projects, as defined, respectively, in NRS

271.150, 271.160, 271.203, 271.204, 271.205, 271.223,

271.232 and 271.237;

(3) Recreational facilities, amusement facilities and

public display facilities; and

(4) Infrastructure designed to serve capital

improvements that are intended to attract and expand

tourism, including, without limitation, curb and gutter

projects, drainage projects, electrical projects, sanitary

sewer projects, storm sewer projects, street projects and

water projects, as defined, respectively, in NRS 271.090,

271.095, 271.097, 271.200, 271.215, 271.225 and 271.250,

and projects to install or move gas transmission facilities.

(b) “Committee” means the Sparks Tourism Facility

and Revitalization Steering Committee created pursuant to

section 6.8 of this act.

Town Center Project No. 1 described in the Sparks Town

Center 2000 Amended Redevelopment Plan adopted by the

City Council of the City of Sparks in Ordinance No. 2071 on

May 8, 2000.

Sec. 6.8. 1. The Sparks Tourism Facility and

Revitalization Steering Committee, consisting of five

members, is hereby created. The membership of the

Committee consists of:

(a) Two persons appointed by the Board of Directors of

the Reno/Sparks Convention and Visitors Authority, one of

whom must be a member of the Nevada Resort Association

who represents properties outside the City of Sparks, and

one of whom must represent the interests of Reno, Sparks,

Washoe County, the motel industry or general business.

(b) Two members of the City Council of the City of

Sparks, including the Mayor of the City of Sparks,

appointed by that City Council.

Association who is a member of the Association and who

represents properties inside the City of Sparks.

2. The Committee shall elect a Chairman from among

its members.

3. A vacancy on the Committee must be filled in the

same manner as the original appointment.

4. The Committee shall meet at least quarterly or by a

call of the Chairman or majority of the members of the

Committee.

5. Members of the Committee serve without

compensation.

Sec. 6.9. 1. The Sparks Tourism Facility and

Revitalization Steering Committee shall develop a master

plan that identifies:

(a) Proposed projects or capital improvements that the

Committee determines to be advisable to promote tourism in

Washoe County; and

(b) The method or methods pursuant to which the

proposed projects and capital improvements identified in

paragraph (a) will be financed.

2. Projects and capital improvements identified

pursuant to this section must be:

(a) Approved by a two-thirds vote of the members of the

Committee; and

(b) Located in that portion of the Sparks Town Center

Project which is identified as Victorian Square or any other

portion of the Sparks Town Center Project if the project or

capital improvement provides a direct benefit to a project or

capital improvement located within Victorian Square, as

determined by the Committee.

3. As used in this section:

(a) “Capital improvement” has the meaning ascribed to

it in paragraph (a) of subsection 4 of section 6.7 of this act.

(b) “Sparks Town Center Project” has the meaning

ascribed to it in paragraph (c) of subsection 4 of section 6.7

of this act.

Sec. 2. Section 2 of chapter 432, Statutes of Nevada 1999, as

amended by chapter 334, Statutes of Nevada 2001, at page 1575, is

hereby amended to read as follows:

Sec. 2. The proceeds of the taxes imposed pursuant to

section 1 of this act and any applicable penalty or interest

must be distributed as follows:

1. An amount equal to:

(a) Two-thirds of the proceeds of the tax imposed

pursuant to paragraph (a) of subsection 1 of section 1 of this

act collected in:

(1) The unincorporated area of Washoe County; and

(2) Each incorporated city in Washoe County, except

in a district described in NRS 268.780 to 268.785, inclusive,

in which a 1 percent tax is imposed on the gross receipts from

the rental of transient lodging for railroad grade separation

projects; and

(b) All of the proceeds of the tax imposed pursuant to

paragraph (b) of subsection 1 of section 1 of this act collected

in a district described in NRS 268.780 to 268.785, inclusive,

in which a 1 percent tax is imposed on the gross receipts from

the rental of transient lodging for railroad grade separation

projects,

must be used by the Reno/Sparks Convention and Visitors

Authority to reconstruct, expand, improve, equip, operate and

maintain the Reno/Sparks Convention Center, including, but

not limited to, parking and facilities ancillary to the

Reno/Sparks Convention Center and the acquisition of real

property and other appurtenances therefor. The Reno/Sparks

Convention and Visitors Authority may irrevocably pledge

and use any money received from the proceeds of the taxes

pursuant to this subsection, together with the proceeds of

other tax revenues and facilities revenues received by the

Reno/Sparks Convention and Visitors Authority legally

available therefor, for the payment of general and special

obligations issued for the purpose of reconstructing,

expanding, improving and equipping the Reno/Sparks

Convention Center, including, but not limited to, parking and

facilities ancillary to the Reno/Sparks Convention Center and

the acquisition of real property and other appurtenances

therefor.

2. From the remaining one-third of the proceeds of the

tax imposed pursuant to paragraph (a) of subsection 1 of

section 1 of this act collected in the area described in

subparagraphs (1) and (2) of paragraph (a) of subsection 1,

the sum of $1,500,000 and, beginning June 1, 2000, and each

year thereafter, an additional amount equal to $1,500,000

multiplied by the percentage by which the proceeds of the

taxes imposed pursuant to paragraphs (a) and (b) of

subsection 1 of section 1 of this act increased during the

immediately preceding 12-month period, if any, must be used

as follows:

(a) Two-thirds for the marketing and promotion of

tourism as approved by the Reno/Sparks Convention and

Visitors Authority; and

(b) One-third for the support of the National Bowling

Stadium,

until such time as the Truckee Meadows Tourism Facility and

Revitalization Steering Committee identifies particular capital

improvement projects pursuant to section 6 of this act. After

the Truckee Meadows Tourism Facility and Revitalization

Steering Committee identifies particular capital improvement

projects pursuant to section 6 of this act, the money described

in this subsection and all of the proceeds of the tax imposed

pursuant to paragraph (c) of subsection 1 of section 1 of this

act must, notwithstanding the provisions of NRS 279.619, be

used to acquire, establish, construct, expand, equip, improve,

operate and maintain such projects, and to pay the principal

and interest on notes, bonds or other obligations issued by the

Reno Redevelopment Agency to fund the acquisition,

establishment, construction or expansion of the projects so

identified.

3. From the remaining one-third of the proceeds of the

tax imposed pursuant to paragraph (a) of subsection 1 of

section 1 of this act collected in the area described in

subparagraphs (1) and (2) of paragraph (a) of subsection 1, if

any, after the amount described in subsection 2 is set aside for

use pursuant to that subsection, the amounts set forth in this

subsection must be paid to the City Council of the City of

Sparks on the dates set forth in this subsection to be used by

the City Council and the Sparks Tourism and Marketing

Committee for the marketing and promotion of tourism in the

City of Sparks and for the operation and maintenance of

capital improvements within redevelopment areas in the City

of Sparks:

(a) On July 1, 2000, an amount not to exceed $100,000.

(b) On July 1, 2001, an amount not to exceed $100,000.

thereafter, an amount not to exceed $200,000.

[(d) On July 1, 2003, an amount not to exceed $200,000.

(e) On July 1, 2004, an amount not to exceed $250,000.

(f) On July 1, 2005, an amount not to exceed $250,000.

(g) On July 1, 2006, an amount not to exceed $350,000.

(h) On July 1, 2007, and each year thereafter, an amount

equal to the sum of $350,000 plus an additional amount equal

to $350,000 multiplied by the percentage by which the

proceeds of the taxes imposed pursuant to paragraphs (a) and

(b) of subsection 1 of section 1 of this act increased during

the immediately preceding 12-month period, if any.]

4. The remainder of the one-third of the proceeds of the

tax imposed pursuant to paragraph (a) of subsection 1 of

section 1 of this act collected in the area described in

subparagraphs (1) and (2) of paragraph (a) of subsection 1, if

any, after the amounts described in subsections 2 and 3 are set

aside for use pursuant to those subsections, must be

distributed in the following manner:

(a) Two-thirds to the Reno/Sparks Convention and

Visitors Authority to reconstruct, expand, improve, equip,

operate and maintain the Reno/Sparks Convention Center,

including, but not limited to, parking and facilities ancillary

to the Reno/Sparks Convention Center and the acquisition of

real property and other appurtenances therefor and the

payment of general and special obligations issued for those

purposes.

(b) One-third to be used as set forth in subsection 2.

Sec. 3. This act becomes effective upon passage and approval.

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