Assembly Joint Resolution No. 17–Assemblymen Angle, Knecht, Gustavson, Beers, Andonov, Brown, Carpenter, Christensen, Gibbons, Goicoechea, Grady, Griffin, Hardy, Hettrick, Mabey, Marvel, Sherer and Weber

 

May 9, 2003

____________

 

Referred to Committee on Ways and Means

 

SUMMARY—Proposes to amend Nevada Constitution to impose upon Legislature certain limitations on amount that may be appropriated or authorized for expenditure and to authorize reduction of tax upon real property if it is paid in lump sum. (BDR C‑150)

 

FISCAL NOTE:  Effect on Local Government: No.

                   Effect on the State: Yes.

 

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

 

Assembly Joint RESOLUTION—Proposing to amend the Nevada Constitution to prohibit the Legislature from exceeding certain limitations in appropriating or authorizing amounts for expenditure, to provide for the disposition of revenues in excess of the limitations on the amounts that may be appropriated or authorized for expenditure and to authorize a reduction in the tax upon real property if it is paid in a lump sum.

 

1-1  Resolved by the Assembly and Senate of the State of Nevada, Jointly, That new sections be added to Article 4, and

1-2  Section 1 of Article 10 of the Nevada Constitution be amended to

1-3  read respectively as follows:

1-4  Sec. 39.  1.  Except as otherwise provided in

1-5  subsection 2, the Legislature shall not, without the

1-6  affirmative vote of at least two-thirds of the members elected

1-7  to each House, appropriate or authorize for expenditure in

1-8  any fiscal year an amount which exceeds the amount

1-9  appropriated or authorized for expenditure during Fiscal

2-1  Year 2002-2003, plus cumulative adjustments for changes

2-2  in:

2-3  (a) Inflation; and

2-4  (b) The population of the State.

2-5  2.  The limitation on expenditures described in

2-6  subsection 1 does not apply with respect to any revenue that

2-7  is:

2-8  (a) Required to be deposited in a fund to be used

2-9  exclusively for the administration, construction,

2-10  reconstruction, improvement and maintenance of highways;

2-11      (b) Necessary to pay the interest and principal on public

2-12  debts lawfully contracted by the State;

2-13      (c) Generated by contracts of indebtedness lawfully

2-14  entered into or assumed by or on behalf of the State; or

2-15      (d) Received from the Federal Government or received

2-16  from any person or entity in the form of a gift or a grant.

2-17      Sec. 40.  1.  Except as otherwise provided in

2-18  subsection 2, the Legislature shall deposit into the fund

2-19  established pursuant to Section 41 of this Article any

2-20  revenues that exceed the limitation on expenditures

2-21  established pursuant to Section 39 of this Article.

2-22      2.  If the fund established pursuant to Section 41 of this

2-23  Article contains an amount of money which is greater than

2-24  10 percent of the amount of money contained in the State

2-25  General Fund, any revenues that exceed the limitation on

2-26  expenditures established pursuant to Section 39 of this

2-27  Article must be used to reduce any tax imposed upon motor

2-28  vehicles by the Legislature in lieu of an ad valorem property

2-29  tax.

2-30      Sec. 41.  The Legislature shall provide by law for the

2-31  creation, as a special revenue fund, of a fund to stabilize the

2-32  operation of the State Government.

2-33      Section 1.  1.  The legislature shall provide by law for a

2-34  uniform and equal rate of assessment and taxation, and shall

2-35  prescribe such regulations as shall secure a just valuation for

2-36  taxation of all property, real, personal and possessory, except

2-37  mines and mining claims, which shall be assessed and taxed

2-38  only as provided in section 5 of this article.

2-39      2.  Shares of stock, bonds, mortgages, notes, bank

2-40  deposits, book accounts and credits, and securities and choses

2-41  in action of like character are deemed to represent interest in

2-42  property already assessed and taxed, either in Nevada or

2-43  elsewhere, and shall be exempt.

2-44      3.  The legislature may constitute agricultural and open-

2-45  space real property having a greater value for another use

3-1  than that for which it is being used, as a separate class for

3-2  taxation purposes and may provide a separate uniform plan

3-3  for appraisal and valuation of such property for assessment

3-4  purposes. If such plan is provided, the legislature shall also

3-5  provide for retroactive assessment for a period of not less

3-6  than 7 years when agricultural and open-space real property is

3-7  converted to a higher use conforming to the use for which

3-8  other nearby property is used.

3-9  4.  Personal property which is moving in interstate

3-10  commerce through or over the territory of the State of

3-11  Nevada, or which was consigned to a warehouse, public or

3-12  private, within the State of Nevada from outside the State of

3-13  Nevada for storage in transit to a final destination outside the

3-14  State of Nevada, whether specified when transportation

3-15  begins or afterward, shall be deemed to have acquired no

3-16  situs in Nevada for purposes of taxation and shall be exempt

3-17  from taxation. Such property shall not be deprived of such

3-18  exemption because while in the warehouse the property is

3-19  assembled, bound, joined, processed, disassembled, divided,

3-20  cut, broken in bulk, relabeled or repackaged.

3-21      5.  The legislature may exempt motor vehicles from the

3-22  provisions of the tax required by this section, and in lieu

3-23  thereof, if such exemption is granted, shall provide for a

3-24  uniform and equal rate of assessment and taxation of motor

3-25  vehicles, which rate shall not exceed five cents on one dollar

3-26  of assessed valuation.

3-27      6.  The legislature shall provide by law for a progressive

3-28  reduction in the tax upon business inventories by 20 percent

3-29  in each year following the adoption of this provision, and

3-30  after the expiration of the 4th year such inventories are

3-31  exempt from taxation. The legislature may exempt any other

3-32  personal property, including livestock.

3-33      7.  No inheritance tax shall ever be levied.

3-34      8.  The legislature may exempt by law property used for

3-35  municipal, educational, literary, scientific or other charitable

3-36  purposes, or to encourage the conservation of energy or the

3-37  substitution of other sources for fossil sources of energy.

3-38      9.  No income tax shall be levied upon the wages or

3-39  personal income of natural persons. Notwithstanding the

3-40  foregoing provision, and except as otherwise provided in

3-41  subsection 1 of this section, taxes may be levied upon the

3-42  income or revenue of any business in whatever form it may

3-43  be conducted for profit in the state.

3-44      10.  The legislature may provide by law for an abatement

3-45  of the tax upon or an exemption of part of the assessed value

4-1  of a single-family residence occupied by the owner to the

4-2  extent necessary to avoid severe economic hardship to the

4-3  owner of the residence.

4-4  11.  The legislature may provide by law for a reduction

4-5  in the tax upon real property if the tax may be paid in

4-6  installments and the total amount of the tax is paid in a

4-7  lump sum on or before the date on which the first

4-8  installment is due. Any reduction so provided may not be

4-9  greater than 5 percent of the total amount of the tax that is

4-10  due.

 

4-11  H