Assembly Bill No. 196–Assemblymen Collins, Chowning, Claborn, Andonov, Atkinson, Buckley, Geddes, Giunchigliani, Goicoechea, Grady, Hardy, Koivisto, Manendo, McClain, Oceguera, Pierce and Sherer

 

February 26, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Authorizes certain local governments to require dedication of certain land or impose tax on nonresidential construction projects for regional parks. (BDR 22‑653)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to local governments; authorizing certain local governments to require the dedication of certain land or impose a tax on nonresidential construction projects for regional parks; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 278 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  “Nonresidential construction project” means construction

1-4  other than construction of residential dwelling units or an

1-5  apartment house or the development of mobile home lots. The

1-6  term does not include any construction by a governmental agency.

1-7  Sec. 2.  NRS 278.497 is hereby amended to read as follows:

1-8  278.497  As used in NRS 278.497 to 278.4987, inclusive, and

1-9  section 1 of this act, the words and terms defined in NRS 278.4971

1-10  to 278.4977, inclusive, and section 1 of this act, have the meanings

1-11  ascribed to them in those sections, unless the context otherwise

1-12  requires.

2-1  Sec. 3.  NRS 278.4979 is hereby amended to read as follows:

2-2  278.4979  The governing body of a city or county may, by

2-3  ordinance, require that a subdivider of land or a developer of land

2-4  for mobile home lots , [or] an apartment house or a nonresidential

2-5  construction project dedicate such land areas, sites and locations for

2-6  park and playground purposes as are reasonably necessary to serve

2-7  the proposed subdivision or development and the future [residents]

2-8  occupants of the subdivision or development.

2-9  Sec. 4.  NRS 278.4981 is hereby amended to read as follows:

2-10      278.4981  1.  The ordinance adopted pursuant to NRS

2-11  278.4979 [must set forth the standards to be applied in determining

2-12  the amount of land that is required to be dedicated. The ordinance]

2-13  must contain standards for determining the amount, quality and

2-14  location of land that is required to be dedicated which [are] must be

2-15  based upon the number and type of residential dwelling units , [or

2-16  structures,] apartment houses , [or] mobile home lots[,] or

2-17  nonresidential construction projects or any combination thereof,

2-18  included in each subdivision or development and give due

2-19  consideration to the relative desirability and market value of the

2-20  land that may be included within the area of any particular proposed

2-21  subdivision or development.

2-22      2.  The ordinance must, without limiting the general powers

2-23  conferred in this chapter, include the following:

2-24      (a) Provisions for the creation, in accordance with the applicable

2-25  master plan, of park districts or service areas which would serve

2-26  neighborhoods , regions or communities of interest within the city

2-27  or county.

2-28      (b) A delegation of authority to designated departments or

2-29  agencies of the city or county to select the location of the land areas

2-30  to be dedicated for park and playground purposes. The land to be

2-31  dedicated for park and playground purposes must be within the park

2-32  district or service area created pursuant to paragraph (a) in which the

2-33  subdivision, apartment house , [or] mobile home lots or

2-34  nonresidential construction projects are located.

2-35      (c) A provision limiting the amount of land required to be

2-36  dedicated to an amount of land having a fair market value,

2-37  determined by independent appraisal, which does not exceed the

2-38  amount of any [residential] construction tax which would otherwise

2-39  have been collected [under] pursuant to NRS 278.4983.

2-40      (d) A provision for the transfer of title to the dedicated land

2-41  upon the issuance of building permits and the construction of the

2-42  first unit of the subdivision or development from which the land was

2-43  dedicated.

2-44  The ordinance may also contain a provision allowing an increase in

2-45  the number of residential dwelling units [or structures,] apartment

3-1  houses , [or] mobile home lots[,] or nonresidential construction

3-2  projects or any combination of them, in the subdivision or

3-3  development equal to the number which would otherwise have been

3-4  allowed on the land dedicated for parks and playgrounds.

3-5  Sec. 5.  NRS 278.4983 is hereby amended to read as follows:

3-6  278.4983  1.  The [city council] governing body of any city or

3-7  [the board of county commissioners of any] county which has

3-8  adopted a master plan and recreation plan, as provided in this

3-9  chapter, which includes, as a part of the plan, future or present sites

3-10  for neighborhood or regional parks may, by ordinance, impose a

3-11  [residential] construction tax pursuant to this section.

3-12      2.  If imposed, the [residential] construction tax must be

3-13  imposed on the privilege of constructing apartment houses , [and]

3-14  residential dwelling units and nonresidential construction projects

3-15  and developing mobile home lots in the respective cities and

3-16  counties. The rate of the tax must not exceed:

3-17      (a) With respect to the construction of apartment houses and

3-18  residential dwelling units, 1 percent of the valuation of each

3-19  building permit issued or $1,000 per residential dwelling unit,

3-20  whichever is less. For the purpose of calculating the [residential]

3-21  construction tax[, the city council of the city or the board of county

3-22  commissioners of the county] pursuant to this paragraph, the

3-23  governing body shall adopt an ordinance basing the valuation of

3-24  building permits on the actual costs of residential construction in the

3-25  area.

3-26      (b) With respect to the development of mobile home lots, for

3-27  each mobile home lot authorized by a lot development permit, 80

3-28  percent of the average [residential] construction tax paid pursuant

3-29  to paragraph (a) per residential dwelling unit in the respective city

3-30  or county during the calendar year next preceding the fiscal year in

3-31  which the lot development permit is issued.

3-32      (c) With respect to the construction of a nonresidential

3-33  construction project, 1 percent of the valuation of each building

3-34  permit issued or $20,000 per nonresidential construction project,

3-35  whichever is less. For the purpose of calculating the construction

3-36  tax pursuant to this paragraph, the governing body shall adopt an

3-37  ordinance basing the valuation of building permits on the actual

3-38  costs of nonresidential construction projects in the area.

3-39      3.  The purpose of the tax imposed pursuant to this section is

3-40  to raise revenue to enable the cities and counties to provide

3-41  neighborhood and regional parks and facilities for such parks

3-42  which are required by [the residents of those apartment houses,

3-43  mobile homes and residences.] or which benefit persons who live

3-44  or work in the park districts or service areas within the city or

3-45  county.

4-1  4.  An ordinance enacted pursuant to subsection 1 must

4-2  establish the procedures for collecting the tax, set its rate, and

4-3  determine the purposes for which the tax is to be used, subject to the

4-4  restrictions and standards provided in this chapter. The ordinance

4-5  must, without limiting the general powers conferred in this chapter,

4-6  also include:

4-7  (a) Provisions for the creation, in accordance with the applicable

4-8  master plan, of park districts or service areas which would serve

4-9  neighborhoods , regions or communities of interest within the city

4-10  or county.

4-11      (b) A provision for collecting the tax at the time of issuance of a

4-12  building permit for the construction of any apartment houses , [or]

4-13  residential dwelling units[,] or nonresidential construction projects

4-14  or issuance of a lot development permit for the development of

4-15  mobile home lots.

4-16      5.  All [residential] construction taxes collected pursuant to the

4-17  provisions of this section and any ordinance enacted by a [city

4-18  council or board of county commissioners,] governing body and all

4-19  interest accrued on the money, must be placed with the city treasurer

4-20  or county treasurer in a special fund. The money in the fund that is

4-21  collected pursuant to paragraphs (a) and (b) of subsection 2 must

4-22  be accounted for separately from the money in the fund that is

4-23  collected pursuant to paragraph (c) of subsection 2.

4-24      6.  Except as otherwise provided in subsection [6,] 8, the money

4-25  in the fund that is collected pursuant to paragraphs (a) and (b) of

4-26  subsection 2 may only be [used] :

4-27      (a) Used for the acquisition, improvement and expansion of

4-28  neighborhood parks or the installation of facilities in existing or

4-29  neighborhood parks in the city or county. [Money in the fund must

4-30  be expended]

4-31      (b) Expended for the benefit of the neighborhood from which it

4-32  was collected.

4-33      [6.] 7.  Except as otherwise provided in subsection 9, the

4-34  money in the fund that is collected pursuant to paragraph (c) of

4-35  subsection 2 may only be:

4-36      (a) Used for the acquisition, improvement and expansion of

4-37  regional parks or the installation of facilities in existing regional

4-38  parks in the city or county.

4-39      (b) Expended for the benefit of the park district or service area

4-40  from which it was collected.

4-41      8.  If a neighborhood park has not been developed or facilities

4-42  have not been installed in an existing park in the park district

4-43  created to serve the neighborhood in which the subdivision or

4-44  development is located within 3 years after the date on which 75

4-45  percent of the residential dwelling units authorized within that

5-1  subdivision or development first became occupied, all money paid

5-2  by the subdivider or developer[,] pursuant to paragraph (a) or (b)

5-3  of subsection 2, together with interest at the rate at which the city or

5-4  county has invested the money in the fund, must be refunded to the

5-5  owners of the lots in the subdivision or development [at the time of

5-6  the reversion] on a pro rata basis.

5-7  [7.] 9.  If a regional park has not been developed or facilities

5-8  have not been installed in an existing regional park within 5 years

5-9  after the date on which 75 percent of the nonresidential

5-10  construction project first became occupied, all money paid by the

5-11  developer pursuant to paragraph (c) of subsection 2, together with

5-12  interest at the rate at which the city or county has invested the

5-13  money in the fund, must be refunded to the owners of the

5-14  nonresidential construction project on a pro rata basis.

5-15      10.  The limitation of time established pursuant to [subsection

5-16  6] subsections 8 and 9 is suspended for any period, not to exceed 1

5-17  year, during which this state or the Federal Government takes any

5-18  action to protect the environment or an endangered species which

5-19  prohibits, stops or delays the development of a park or installation

5-20  of facilities.

5-21      [8.  For the purposes of]

5-22      11.  As used in this section:

5-23      (a) “Facilities” means turf, trees, irrigation, playground

5-24  apparatus, playing fields, areas to be used for organized amateur

5-25  sports, play areas, picnic areas, horseshoe pits and other recreational

5-26  equipment or appurtenances designed to serve the [natural persons,

5-27  families and small groups from the neighborhood from which the

5-28  tax was collected.] persons who use the park in which the facilities

5-29  are located.

5-30      (b) “Neighborhood park” means a site not exceeding 25 acres,

5-31  designed to serve the recreational and outdoor needs of natural

5-32  persons, families and small groups[.] in the neighborhood from

5-33  which the tax was collected.

5-34      (c) “Regional park” means a site exceeding 50 acres, designed

5-35  to serve the outdoor needs of persons who live or work in the

5-36  region in which it is located.

5-37      Sec. 6.  NRS 278.4985 is hereby amended to read as follows:

5-38      278.4985  1.  The [city council] governing body of any city or

5-39  [the board of county commissioners of any] county which has

5-40  adopted a master plan as provided in this chapter which includes

5-41  future or present sites for parks and playgrounds may require that:

5-42      (a) The developers of a planned unit development dedicate land

5-43  as provided by NRS 278.4979, 278.498 and 278.4981; or

6-1  (b) A [residential] construction tax be imposed on the privilege

6-2  of constructing planned unit developments in the manner provided

6-3  by NRS 278.4983,

6-4  if the ordinance defining and regulating planned unit developments

6-5  in the particular city or county imposes open space requirements

6-6  less than those required by the ordinance adopted pursuant to

6-7  NRS 278.4981.

6-8  2.  If a requirement to dedicate land or pay a [residential]

6-9  construction tax is imposed on the construction of a planned unit

6-10  development, the planned unit development is eligible to receive a

6-11  credit against the amount of land to be dedicated or the amount of

6-12  the [residential] construction tax imposed, for the amount and value

6-13  of the developed open space within the planned unit development.

6-14      Sec. 7.  NRS 278.4987 is hereby amended to read as follows:

6-15      278.4987  1.  The requirement for dedication of land [under]

6-16  pursuant to NRS 278.4979, 278.498 and 278.4981 and the

6-17  imposition of [the residential] a construction tax [under] pursuant

6-18  to NRS 278.4983, are mutually exclusive as to any particular

6-19  subdivision, apartment house, mobile home lot , [or] residential

6-20  dwelling unit or nonresidential construction project which may be

6-21  benefited or affected by any such requirement or imposition.

6-22      2.  Any [city council or board of county commissioners]

6-23  governing body determining to provide park or playground facilities

6-24  [under the provisions of] pursuant to NRS 278.497 to 278.4987,

6-25  inclusive, and section 1 of this act, shall elect, for any one period,

6-26  to follow only one of the procedures provided in these sections.

6-27      Sec. 8.  NRS 278B.240 is hereby amended to read as follows:

6-28      278B.240  1.  If an owner is required by a local government,

6-29  as a condition of the approval of the development, to construct or

6-30  dedicate, or both, a portion of the off-site facilities for which impact

6-31  fees other than for a park project are imposed, the off-site facilities

6-32  must be credited against those impact fees.

6-33      2.  If a school district is required by a local government to

6-34  construct or dedicate, or both, a portion of the off-site facilities for

6-35  which impact fees are imposed, the local government shall, upon the

6-36  request of the school district, reimburse or enter into an agreement

6-37  to reimburse the school district for the cost of the off-site facilities

6-38  constructed or dedicated, or both, minus the cost of the off-site

6-39  facilities immediately adjacent to or providing connection to the

6-40  school development which would be required by local ordinance in

6-41  the absence of an ordinance authorizing impact fees.

6-42      3.  If an owner is required by a local government to:

6-43      (a) Pay a [residential] construction tax pursuant to

6-44  NRS 278.4983;

7-1  (b) Dedicate land pursuant to NRS 278.4979 , 278.498 and

7-2  278.4981 or otherwise dedicate or improve land, or both, for use as

7-3  a park; or

7-4  (c) Construct or dedicate a portion of the off-site facilities for

7-5  which impact fees for a park project are imposed,

7-6  the owner is entitled to a credit against the impact fee imposed for

7-7  the park project for the amount of the [residential] construction tax

7-8  paid, the fair market value of the land dedicated, the cost of any

7-9  improvements to the dedicated land or the cost of the off-site

7-10  facilities dedicated or constructed, as applicable.

7-11      Sec. 9.  NRS 354.59891 is hereby amended to read as follows:

7-12      354.59891  1.  As used in this section:

7-13      (a) “Building permit” means the official document or certificate

7-14  issued by the building officer of a local government which

7-15  authorizes the construction of a structure.

7-16      (b) “Building permit basis” means the combination of the rate

7-17  and the valuation method used to calculate the [total] building

7-18  permit fee.

7-19      (c) “Building permit fee” means the [total] fees that must be

7-20  paid before the issuance of a building permit, including , without

7-21  limitation, all permit fees and inspection fees. The term does not

7-22  include, without limitation, fees relating to water, sewer or other

7-23  utilities, [residential] construction tax[,] imposed pursuant to NRS

7-24  278.4983, tax on residential construction imposed pursuant to

7-25  NRS 387.331, tax for the improvement of transportation imposed

7-26  pursuant to NRS 278.710, any fee imposed pursuant to NRS

7-27  244.386 or any amount expended to change the zoning of the

7-28  property.

7-29      (d) “Current asset” means any cash maintained in an enterprise

7-30  fund and any interest or other income earned on the money in the

7-31  enterprise fund that, at the end of the current fiscal year, is

7-32  anticipated by a local government to be consumed or converted into

7-33  cash during the next ensuing fiscal year.

7-34      (e) “Current liability” means any debt incurred by a local

7-35  government to provide the services associated with issuing building

7-36  permits that, at the end of the current fiscal year, is determined by

7-37  the local government to require payment within the next ensuing

7-38  fiscal year.

7-39      (f) “Operating cost” means the amount paid by a local

7-40  government for supplies, services, salaries, wages and employee

7-41  benefits to provide the services associated with issuing building

7-42  permits.

7-43      (g) “Working capital” means the excess of current assets over

7-44  current liabilities, as determined by the local government at the end

7-45  of the current fiscal year.

8-1  2.  Except as otherwise provided in subsections 3 and 4, a local

8-2  government shall not increase its building permit basis by more than

8-3  an amount equal to the building permit basis on June 30, 1989,

8-4  multiplied by a percentage equal to the percentage increase in the

8-5  Consumer Price Index from January 1, 1988, to the January 1 next

8-6  preceding the fiscal year for which the calculation is made.

8-7  3.  A local government may submit an application to increase

8-8  its building permit basis by an amount greater than otherwise

8-9  allowable pursuant to subsection 2 to the Nevada Tax Commission.

8-10  The Nevada Tax Commission may allow the increase only if it finds

8-11  that:

8-12      (a) Emergency conditions exist which impair the ability of the

8-13  local government to perform the basic functions for which it was

8-14  created; or

8-15      (b) The building permit basis of the local government is

8-16  substantially below that of other local governments in the State and

8-17  the cost of providing the services associated with the issuance of

8-18  building permits in the previous fiscal year exceeded the total

8-19  revenue received from building permit fees[, excluding any amount

8-20  of residential construction tax collected,] for that fiscal year.

8-21      4.  Upon application by a local government, the Nevada Tax

8-22  Commission shall exempt the local government from the limitation

8-23  on the increase of its building permit basis if:

8-24      (a) The local government creates an enterprise fund exclusively

8-25  for building permit fees;

8-26      (b) Any interest or other income earned on the money in the

8-27  enterprise fund is credited to the fund;

8-28      (c) Except as otherwise provided in subsection 5, the local

8-29  government maintains a balance of unreserved working capital in

8-30  the enterprise fund that does not exceed an amount equal to 9

8-31  months’ operating costs for the program for the issuance of building

8-32  permits of the local government; and

8-33      (d) The local government does not use any of the money in the

8-34  enterprise fund for any purpose other than the actual direct and

8-35  indirect costs of the program for the issuance of building permits,

8-36  including, without limitation, the cost of checking plans, issuing

8-37  permits, inspecting buildings and administering the program. The

8-38  Committee on Local Government Finance shall adopt regulations

8-39  governing the permissible expenditures from an enterprise fund

8-40  pursuant to this paragraph.

8-41      5.  In addition to the balance of unreserved working capital

8-42  authorized pursuant to subsection 4, the local government may

8-43  maintain in an enterprise fund created pursuant to this section an

8-44  amount of working capital for the following purposes:

9-1  (a) An amount sufficient to pay the debt service for 1 year on

9-2  any debt incurred by the local government to provide the services

9-3  associated with issuing building permits;

9-4  (b) An amount that does not exceed the total amount of

9-5  expenditures for the program for the issuance of building permits of

9-6  the local government set forth in the capital improvement plan of the

9-7  local government prepared pursuant to NRS 354.5945 for the

9-8  current fiscal year; and

9-9  (c) An amount that does not exceed 4 percent of the annual

9-10  operating costs of the program for the issuance of building permits

9-11  of the local government which must be used to pay for unanticipated

9-12  capital replacement.

9-13      6.  Any amount in an enterprise fund created pursuant to this

9-14  section that is designated for special use, including, without

9-15  limitation, prepaid fees and any other amount subject to a

9-16  contractual agreement, must be identified as a restricted asset and

9-17  must not be included as a current asset in the calculation of working

9-18  capital.

9-19      7.  If a balance in excess of the amount authorized pursuant to

9-20  subsections 4 and 5 is maintained in an enterprise fund created

9-21  pursuant to this section at the close of 2 consecutive fiscal years, the

9-22  local government shall reduce the building permit fees it charges by

9-23  an amount that is sufficient to ensure that the balance in the

9-24  enterprise fund at the close of the fiscal year next following those 2

9-25  consecutive fiscal years does not exceed the amount authorized

9-26  pursuant to subsections 4 and 5.

9-27      Sec. 10.  This act becomes effective on July 1, 2003.

 

9-28  H