Assembly Bill No. 205–Committee on Taxation

 

February 26, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Increases tax on rental of transient lodging within City of Sparks to pay certain costs related to promotion of tourism. (BDR S‑256)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

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:

 

 

 

 

2-1  Section 1. Chapter 432, Statutes of Nevada 1999, at page

2-2  2011, is hereby amended by adding thereto new sections to be

2-3  designated as sections 6.6 to 6.9, inclusive, immediately preceding

2-4  section 7, to read as follows:

2-5  Sec. 6.6.  1.  A tax at the rate of 2 1/2 percent of the

2-6  gross receipts from the rental of transient lodging is hereby

2-7  imposed in the City of Sparks.

2-8  2.  The tax imposed pursuant to this section must:

2-9  (a) Be in addition to all other taxes imposed on the

2-10  revenue from the rental of transient lodging in the City of

2-11  Sparks and Washoe County;

2-12      (b) Be collected and enforced in the same manner as

2-13  provided for the collection of the tax imposed by NRS

2-14  244.3352, subject to the limitations set forth in NRS

2-15  244.3356, except that the proceeds of the tax may be used to

2-16  defray the costs of enforcing any applicable tax liens

2-17  incurred by the Reno/Sparks Convention and Visitors

2-18  Authority; and

2-19      (c) Be paid to the Reno/Sparks Convention and Visitors

2-20  Authority, which shall distribute the proceeds from the tax

2-21  to the City Council of the City of Sparks.

2-22      3.  All decisions, and any deliberations leading to those

2-23  decisions, that are made by any body, including, without

2-24  limitation, the Reno/Sparks Convention and Visitors

2-25  Authority, the City Council of the City of Sparks and the

2-26  Sparks Tourism Facility and Revitalization Steering

2-27  Committee, concerning the expenditure, commitment or

2-28  other use of money derived from the proceeds of the tax

2-29  imposed pursuant to this section must be made at a public

2-30  meeting that complies with the provisions of chapter 241 of

2-31  NRS, whether or not the body is determined to be a public

2-32  body to which that chapter is applicable.

2-33      4.  The tax imposed pursuant to this section expires by

2-34  limitation on the date on which the principal of, and the

2-35  interest on, any general or special obligations described in

2-36  paragraph (e) of subsection 1 of section 6.7 of this act are

2-37  fully paid. The proceeds from the tax must not be committed

2-38  for expenditure after that date. The City Council of the City

2-39  of Sparks shall, at least 30 days before such obligations are

2-40  fully paid, adopt an ordinance that sets forth the date on

2-41  which such obligations will be fully paid. Upon the adoption

2-42  of such an ordinance, the Reno/Sparks Convention and

2-43  Visitors Authority shall give written notice of the date on

2-44  which the tax will expire to each person providing transient

2-45  lodging who is liable for the payment of the tax.

3-1  5.  As used in this section, “gross receipts from the

3-2  rental of transient lodging” does not include the tax

3-3  imposed or collected from paying guests pursuant to this

3-4  section.

3-5  Sec. 6.7.  1.  The City Council of the City of Sparks

3-6  may expend the proceeds of the tax imposed pursuant to

3-7  section 6.6 of this act, and any applicable penalty or

3-8  interest. The proceeds of the tax and any applicable penalty

3-9  or interest:

3-10      (a) Must be used to develop, acquire, establish, improve

3-11  and construct projects and capital improvements that are

3-12  intended to attract and expand tourism and are, at the time

3-13  the proceeds from the tax are expended, located in or to be

3-14  located in:

3-15          (1) That portion of the Sparks Town Center Project

3-16  which is identified as Victorian Square; or

3-17          (2) Any other portion of the Sparks Town Center

3-18  Project, if the project or capital improvement provides a

3-19  direct benefit to a project or capital improvement located

3-20  within Victorian Square, as determined by the City Council

3-21  of the City of Sparks after obtaining the advice and

3-22  recommendations of the Committee.

3-23      (b) May be used to acquire, lease, rent and develop land,

3-24  interests in land, including, without limitation, easements,

3-25  reversionary estates, licenses and dedications, and

3-26  improvements to land, that will be used for projects and

3-27  capital improvements described in paragraph (a).

3-28      (c) May be used to demolish any improvements,

3-29  rehabilitate existing capital improvements or construct new

3-30  capital improvements described in paragraph (a).

3-31      (d) May be used to maintain and repair capital

3-32  improvements acquired or constructed pursuant to

3-33  paragraphs (b) and (c).

3-34      (e) May be irrevocably pledged, by an ordinance adopted

3-35  by the City Council of the City of Sparks, for the payment of

3-36  general and special obligations issued for the purposes set

3-37  forth in this subsection and may be treated as pledged

3-38  revenues for the purposes of subsection 3 of NRS 350.020.

3-39      (f) May be used for advertising, promotion, operating

3-40  costs or expenses not related to maintenance for land,

3-41  improvements, events or general governmental operations

3-42  associated with the projects and capital improvements

3-43  described in paragraph (a).

3-44      (g) Must not be used to pay administrative costs

3-45  associated with projects and capital improvements described

4-1  in paragraph (a), except those administrative costs related to

4-2  developing, constructing and financing such projects and

4-3  capital improvements and costs related to the issuance of

4-4  any general or special obligations.

4-5  2.  The City Council of the City of Sparks shall, before

4-6  expending any proceeds of the tax pursuant to this section,

4-7  obtain the advice and recommendations of the Committee

4-8  concerning the expenditure of those proceeds.

4-9  3.  For the purposes of this section, a project or capital

4-10  improvement shall be deemed to be intended to attract and

4-11  expand tourism if it is used for retail, entertainment,

4-12  recreational, scientific, cultural, historic or artistic

4-13  purposes, as determined by the City Council of the City of

4-14  Sparks after obtaining the advice and recommendations of

4-15  the Committee.

4-16      4.  As used in this section:

4-17      (a) “Capital improvement” includes:

4-18          (1) Buildings, parking lots, parking structures,

4-19  landscape facilities, privately owned facilities or devices to

4-20  enhance the protection of persons or property, and capital

4-21  equipment for any of the foregoing;

4-22          (2) Off-street parking projects, park projects, security

4-23  walls, service facilities, sidewalk projects, street

4-24  beautification projects, telephone projects and

4-25  transportation projects, as defined, respectively, in NRS

4-26  271.150, 271.160, 271.203, 271.204, 271.205, 271.223,

4-27  271.232 and 271.237;

4-28          (3) Recreational facilities, amusement facilities and

4-29  public display facilities; and

4-30          (4) Infrastructure designed to serve capital

4-31  improvements that are intended to attract and expand

4-32  tourism, including, without limitation, curb and gutter

4-33  projects, drainage projects, electrical projects, sanitary

4-34  sewer projects, storm sewer projects, street projects and

4-35  water projects, as defined, respectively, in NRS 271.090,

4-36  271.095, 271.097, 271.200, 271.215, 271.225 and 271.250,

4-37  and projects to install or move gas transmission facilities.

4-38      (b) “Committee” means the Sparks Tourism Facility

4-39  and Revitalization Steering Committee created pursuant to

4-40  section 6.8 of this act.

4-41      (c) “Sparks Town Center Project” means the Sparks

4-42  Town Center Project No. 1 described in the Sparks Town

4-43  Center 2000 Amended Redevelopment Plan adopted by the

4-44  City Council of the City of Sparks in Ordinance No. 2071 on

4-45  May 8, 2000.

5-1  Sec. 6.8.  1.  The Sparks Tourism Facility and

5-2  Revitalization Steering Committee, consisting of five

5-3  members, is hereby created. The membership of the

5-4  Committee consists of:

5-5  (a) Two persons appointed by the Board of Directors of

5-6  the Reno/Sparks Convention and Visitors Authority, one of

5-7  whom must be a member of the Nevada Resort Association

5-8  who represents properties outside the City of Sparks, and

5-9  one of whom must represent the interests of Reno, Sparks,

5-10  Washoe County, the motel industry or general business.

5-11      (b) Two members of the City Council of the City of

5-12  Sparks, including the Mayor of the City of Sparks,

5-13  appointed by that City Council.

5-14      (c) One person appointed by the Nevada Resort

5-15  Association who is a member of the Association and who

5-16  represents properties inside the City of Sparks.

5-17      2.  The Committee shall elect a Chairman from among

5-18  its members.

5-19      3.  A vacancy on the Committee must be filled in the

5-20  same manner as the original appointment.

5-21      4.  The Committee shall meet at least quarterly or by a

5-22  call of the Chairman or majority of the members of the

5-23  Committee.

5-24      5.  Members of the Committee serve without

5-25  compensation.

5-26      Sec. 6.9.  1.  The Sparks Tourism Facility and

5-27  Revitalization Steering Committee shall develop a master

5-28  plan that identifies:

5-29      (a) Proposed projects or capital improvements that the

5-30  Committee determines to be advisable to promote tourism in

5-31  Washoe County; and

5-32      (b) The method or methods pursuant to which the

5-33  proposed projects and capital improvements identified in

5-34  paragraph (a) will be financed.

5-35      2.  Projects and capital improvements identified

5-36  pursuant to this section must be:

5-37      (a) Approved by a two-thirds vote of the members of the

5-38  Committee; and

5-39      (b) Located in that portion of the Sparks Town Center

5-40  Project which is identified as Victorian Square or any other

5-41  portion of the Sparks Town Center Project if the project or

5-42  capital improvement provides a direct benefit to a project or

5-43  capital improvement located within Victorian Square, as

5-44  determined by the Committee.

5-45      3.  As used in this section:

6-1  (a) “Capital improvement” has the meaning ascribed to

6-2  it in paragraph (a) of subsection 4 of section 6.7 of this act.

6-3  (b) “Sparks Town Center Project” has the meaning

6-4  ascribed to it in paragraph (c) of subsection 4 of section 6.7

6-5  of this act.

6-6  Sec. 2.  Section 2 of chapter 432, Statutes of Nevada 1999, as

6-7  amended by chapter 334, Statutes of Nevada 2001, at page 1575, is

6-8  hereby amended to read as follows:

6-9  Sec. 2.  The proceeds of the taxes imposed pursuant to

6-10  section 1 of this act and any applicable penalty or interest

6-11  must be distributed as follows:

6-12      1.  An amount equal to:

6-13      (a) Two-thirds of the proceeds of the tax imposed

6-14  pursuant to paragraph (a) of subsection 1 of section 1 of this

6-15  act collected in:

6-16          (1) The unincorporated area of Washoe County; and

6-17          (2) Each incorporated city in Washoe County, except

6-18  in a district described in NRS 268.780 to 268.785, inclusive,

6-19  in which a 1 percent tax is imposed on the gross receipts from

6-20  the rental of transient lodging for railroad grade separation

6-21  projects; and

6-22      (b) All of the proceeds of the tax imposed pursuant to

6-23  paragraph (b) of subsection 1 of section 1 of this act collected

6-24  in a district described in NRS 268.780 to 268.785, inclusive,

6-25  in which a 1 percent tax is imposed on the gross receipts from

6-26  the rental of transient lodging for railroad grade separation

6-27  projects,

6-28  must be used by the Reno/Sparks Convention and Visitors

6-29  Authority to reconstruct, expand, improve, equip, operate and

6-30  maintain the Reno/Sparks Convention Center, including, but

6-31  not limited to, parking and facilities ancillary to the

6-32  Reno/Sparks Convention Center and the acquisition of real

6-33  property and other appurtenances therefor. The Reno/Sparks

6-34  Convention and Visitors Authority may irrevocably pledge

6-35  and use any money received from the proceeds of the taxes

6-36  pursuant to this subsection, together with the proceeds of

6-37  other tax revenues and facilities revenues received by the

6-38  Reno/Sparks Convention and Visitors Authority legally

6-39  available therefor, for the payment of general and special

6-40  obligations issued for the purpose of reconstructing,

6-41  expanding, improving and equipping the Reno/Sparks

6-42  Convention Center, including, but not limited to, parking and

6-43  facilities ancillary to the Reno/Sparks Convention Center and

6-44  the acquisition of real property and other appurtenances

6-45  therefor.

7-1  2.  From the remaining one-third of the proceeds of the

7-2  tax imposed pursuant to paragraph (a) of subsection 1 of

7-3  section 1 of this act collected in the area described in

7-4  subparagraphs (1) and (2) of paragraph (a) of subsection 1,

7-5  the sum of $1,500,000 and, beginning June 1, 2000, and each

7-6  year thereafter, an additional amount equal to $1,500,000

7-7  multiplied by the percentage by which the proceeds of the

7-8  taxes imposed pursuant to paragraphs (a) and (b) of

7-9  subsection 1 of section 1 of this act increased during the

7-10  immediately preceding 12-month period, if any, must be used

7-11  as follows:

7-12      (a) Two-thirds for the marketing and promotion of

7-13  tourism as approved by the Reno/Sparks Convention and

7-14  Visitors Authority; and

7-15      (b) One-third for the support of the National Bowling

7-16  Stadium,

7-17  until such time as the Truckee Meadows Tourism Facility and

7-18  Revitalization Steering Committee identifies particular capital

7-19  improvement projects pursuant to section 6 of this act. After

7-20  the Truckee Meadows Tourism Facility and Revitalization

7-21  Steering Committee identifies particular capital improvement

7-22  projects pursuant to section 6 of this act, the money described

7-23  in this subsection and all of the proceeds of the tax imposed

7-24  pursuant to paragraph (c) of subsection 1 of section 1 of this

7-25  act must, notwithstanding the provisions of NRS 279.619, be

7-26  used to acquire, establish, construct, expand, equip, improve,

7-27  operate and maintain such projects, and to pay the principal

7-28  and interest on notes, bonds or other obligations issued by the

7-29  Reno Redevelopment Agency to fund the acquisition,

7-30  establishment, construction or expansion of the projects so

7-31  identified.

7-32      3.  From the remaining one-third of the proceeds of the

7-33  tax imposed pursuant to paragraph (a) of subsection 1 of

7-34  section 1 of this act collected in the area described in

7-35  subparagraphs (1) and (2) of paragraph (a) of subsection 1, if

7-36  any, after the amount described in subsection 2 is set aside for

7-37  use pursuant to that subsection, the amounts set forth in this

7-38  subsection must be paid to the City Council of the City of

7-39  Sparks on the dates set forth in this subsection to be used by

7-40  the City Council and the Sparks Tourism and Marketing

7-41  Committee for the marketing and promotion of tourism in the

7-42  City of Sparks and for the operation and maintenance of

7-43  capital improvements within redevelopment areas in the City

7-44  of Sparks:

7-45      (a) On July 1, 2000, an amount not to exceed $100,000.

8-1  (b) On July 1, 2001, an amount not to exceed $100,000.

8-2  (c) On July 1, 2002, and on July 1 of each year

8-3  thereafter, an amount not to exceed $200,000.

8-4  [(d) On July 1, 2003, an amount not to exceed $200,000.

8-5  (e) On July 1, 2004, an amount not to exceed $250,000.

8-6  (f) On July 1, 2005, an amount not to exceed $250,000.

8-7  (g) On July 1, 2006, an amount not to exceed $350,000.

8-8  (h) On July 1, 2007, and each year thereafter, an amount

8-9  equal to the sum of $350,000 plus an additional amount equal

8-10  to $350,000 multiplied by the percentage by which the

8-11  proceeds of the taxes imposed pursuant to paragraphs (a) and

8-12  (b) of subsection 1 of section 1 of this act increased during

8-13  the immediately preceding 12-month period, if any.]

8-14      4.  The remainder of the one-third of the proceeds of the

8-15  tax imposed pursuant to paragraph (a) of subsection 1 of

8-16  section 1 of this act collected in the area described in

8-17  subparagraphs (1) and (2) of paragraph (a) of subsection 1, if

8-18  any, after the amounts described in subsections 2 and 3 are set

8-19  aside for use pursuant to those subsections, must be

8-20  distributed in the following manner:

8-21      (a) Two-thirds to the Reno/Sparks Convention and

8-22  Visitors Authority to reconstruct, expand, improve, equip,

8-23  operate and maintain the Reno/Sparks Convention Center,

8-24  including, but not limited to, parking and facilities ancillary

8-25  to the Reno/Sparks Convention Center and the acquisition of

8-26  real property and other appurtenances therefor and the

8-27  payment of general and special obligations issued for those

8-28  purposes.

8-29      (b) One-third to be used as set forth in subsection 2.

8-30      Sec. 3.  This act becomes effective upon passage and approval.

 

8-31  H