SB469_R1

Senate Bill No. 469–Committee on Taxation

(On Behalf of the Legislative Committee on Local Government Taxes and Finance)

March 24, 2003

____________

Referred to Committee on Taxation

SUMMARY—Revises formula for distribution of certain revenues among local governments. (BDR 32‑624)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State: No.

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).

AN ACT relating to taxation; revising the formula for the distribution of certain revenues among local governments; 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. NRS 360.680 is hereby amended to read as follows:

1-2 360.680 1. On or before July 1 of each year, the Executive

1-3 Director shall allocate to each enterprise district an amount equal to

1-4 the amount that the enterprise district received from the Account in

1-5 the immediately preceding fiscal year.

1-6 2. Except as otherwise provided in NRS 360.690 and 360.730,

1-7 the Executive Director, after subtracting the amount allocated to

1-8 each enterprise district pursuant to subsection 1, shall allocate to

1-9 each local government or special district which is eligible for an

1-10 allocation from the Account pursuant to NRS 360.670 an amount

1-11 from the Account that is equal to the amount allocated to the local

1-12 government or special district for the preceding fiscal year, minus

1-13 any excess amount allocated pursuant to subsection 4 , 5 or 6 of

1-14 NRS 360.690, multiplied by 1 plus the percentage change in the

1-15 Consumer Price Index (All Items) for the year ending on

2-1 December 31 immediately preceding the year in which the

2-2 allocation is made.

2-3 Sec. 2. NRS 360.690 is hereby amended to read as follows:

2-4 360.690 1. Except as otherwise provided in NRS 360.730,

2-5 the Executive Director shall estimate monthly the amount each local

2-6 government, special district and enterprise district will receive from

2-7 the Account pursuant to the provisions of this section.

2-8 2. The Executive Director shall establish a base monthly

2-9 allocation for each local government, special district and enterprise

2-10 district by dividing the amount determined pursuant to NRS 360.680

2-11 for each local government, special district and enterprise district by

2-12 12, and the State Treasurer shall, except as otherwise provided in

2-13 subsections 3[, 4 and 5,] to 7, inclusive, remit monthly that amount

2-14 to each local government, special district and enterprise district.

2-15 3. If, after making the allocation to each enterprise district for

2-16 the month, the Executive Director determines there is not sufficient

2-17 money available in the county’s subaccount in the Account to

2-18 allocate to each local government and special district the base

2-19 monthly allocation determined pursuant to subsection 2, he shall

2-20 prorate the money in the county’s subaccount and allocate to each

2-21 local government and special district an amount equal to [the] its

2-22 proportionate percentage of [the amount that the local government

2-23 or special district received from] the total amount [which was

2-24 distributed to] of the base monthly allocations determined

2-25 pursuant to subsection 2 for all local governments and special

2-26 districts within the county . [for the fiscal year immediately

2-27 preceding the year in which the allocation is made.] The State

2-28 Treasurer shall remit that amount to the local government or special

2-29 district.

2-30 4. Except as otherwise provided in [subsection] subsections 5,

2-31 6 and 7, if the Executive Director determines that there is money

2-32 remaining in the county’s subaccount in the Account after the base

2-33 monthly allocation determined pursuant to subsection 2 has been

2-34 allocated to each local government, special district and enterprise

2-35 district, he shall immediately determine and allocate each:

2-36 (a) Local government’s share of the remaining money by:

2-37 (1) Multiplying one-twelfth of the sum of:

2-38 (I) Seventy-five percent of the amount allocated pursuant

2-39 to NRS 360.680 multiplied by the sum of the average percentage of

2-40 change in the population of the local government [for the fiscal year

2-41 immediately preceding the year in which the allocation is made and

2-42 the 4] over the 5 fiscal years immediately preceding the year in

2-43 which the allocation is made, as certified by the Governor pursuant

2-44 to NRS 360.285, except as otherwise provided in subsection [6,] 8,

2-45 and the average percentage of change in the assessed valuation of

3-1 the taxable property in the local government, including assessed

3-2 valuation attributable to a redevelopment agency but excluding the

3-3 portion attributable to the net proceeds of minerals, over the year in

3-4 which the allocation is made, as projected by the Department

3-5 pursuant to NRS 361.390, and the 4 fiscal years immediately

3-6 preceding the year in which the allocation is made; and

3-7 (II) Twenty-five percent of the amount allocated pursuant

3-8 to NRS 360.680 multiplied by 1 plus the sum of the average

3-9 percentage of change in the population of the local government [for

3-10 the fiscal year immediately preceding the year in which the

3-11 allocation is made and the 4] over the 5 fiscal years immediately

3-12 preceding the year in which the allocation is made, as certified by

3-13 the Governor pursuant to NRS 360.285, except as otherwise

3-14 provided in subsection [6,] 8, and the average percentage of change

3-15 in the assessed valuation of the taxable property in the local

3-16 government, including assessed valuation attributable to a

3-17 redevelopment agency but excluding the portion attributable to the

3-18 net proceeds of minerals, over the year in which the allocation is

3-19 made, as projected by the Department pursuant to NRS 361.390, and

3-20 the 4 fiscal years immediately preceding the year in which the

3-21 allocation is made; and

3-22 (2) Using the figure calculated pursuant to subparagraph (1)

3-23 to calculate and allocate to each local government an amount equal

3-24 to the proportion that the figure calculated pursuant to subparagraph

3-25 (1) bears to the total amount of the figures calculated pursuant to

3-26 subparagraph (1) of this paragraph and subparagraph (1) of

3-27 paragraph (b), respectively, for the local governments and special

3-28 districts located in the same county multiplied by the total amount

3-29 available in the subaccount; and

3-30 (b) Special district’s share of the remaining money by:

3-31 (1) Multiplying one-twelfth of the sum of:

3-32 (I) Seventy-five percent of the amount allocated pursuant

3-33 to NRS 360.680 multiplied by the average change in the assessed

3-34 valuation of the taxable property in the special district, including

3-35 assessed valuation attributable to a redevelopment agency but

3-36 excluding the portion attributable to the net proceeds of minerals,

3-37 over the [5] year in which the allocation is made, as projected by

3-38 the Department pursuant to NRS 361.390, and the 4 fiscal years

3-39 immediately preceding the year in which the allocation is made; and

3-40 (II) Twenty-five percent of the amount allocated pursuant

3-41 to NRS 360.680 multiplied by 1 plus the average change in the

3-42 assessed valuation of the taxable property in the special district,

3-43 including assessed valuation attributable to a redevelopment agency

3-44 but excluding the portion attributable to the net proceeds of

3-45 minerals, over the [5] year in which the allocation is made, as

4-1 projected by the Department pursuant to NRS 361.390, and the 4

4-2 fiscal years immediately preceding the year in which the allocation

4-3 is made; and

4-4 (2) Using the figure calculated pursuant to subparagraph (1)

4-5 to calculate and allocate to each special district an amount equal to

4-6 the proportion that the figure calculated pursuant to subparagraph

4-7 (1) bears to the total amount of the figures calculated pursuant to

4-8 subparagraph (1) of this paragraph and subparagraph (1) of

4-9 paragraph (a), respectively, for the local governments and special

4-10 districts located in the same county multiplied by the total amount

4-11 available in the subaccount.

4-12 The State Treasurer shall remit the amount allocated to each local

4-13 government or special district pursuant to this subsection.

4-14 5. Except as otherwise provided in subsection 7, if the

4-15 Executive Director determines that there is money remaining in

4-16 the county’s subaccount in the Account after the base monthly

4-17 allocation determined pursuant to subsection 2 has been allocated

4-18 to each local government, special district and enterprise district,

4-19 that the sum of the average percentage of change in population

4-20 and the average percentage of change in the assessed valuation of

4-21 taxable property, as calculated pursuant to sub-subparagraph (I)

4-22 of subparagraph (1) of paragraph (a) of subsection 4 for each of

4-23 those local governments, is a negative figure, and that the average

4-24 change in the assessed valuation of the taxable property in each of

4-25 those special districts, as calculated pursuant to sub-subparagraph

4-26 (I) of subparagraph (1) of paragraph (b) of subsection 4, is a

4-27 negative figure, he shall immediately determine and allocate each:

4-28 (a) Local government’s share of the remaining money by:

4-29 (1) Multiplying one-twelfth of the amount allocated

4-30 pursuant to NRS 360.680 by 1 plus the sum of the:

4-31 (I) Average percentage of change in the population of

4-32 the local government over the 5 fiscal years immediately preceding

4-33 the year in which the allocation is made, as certified by the

4-34 Governor pursuant to NRS 360.285, except as otherwise provided

4-35 in subsection 8; and

4-36 (II) Average percentage of change in the assessed

4-37 valuation of the taxable property in the local government,

4-38 including assessed valuation attributable to a redevelopment

4-39 agency but excluding the portion attributable to the net proceeds

4-40 of minerals, over the year in which the allocation is made, as

4-41 projected by the Department pursuant to NRS 361.390, and the 4

4-42 fiscal years immediately preceding the year in which the allocation

4-43 is made; and

4-44 (2) Using the figure calculated pursuant to subparagraph

4-45 (1) to calculate and allocate to each local government an amount

5-1 equal to the proportion that the figure calculated pursuant to

5-2 subparagraph (1) bears to the total amount of the figures

5-3 calculated pursuant to subparagraph (1) of this paragraph and

5-4 subparagraph (1) of paragraph (b), respectively, for the local

5-5 governments and special districts located in the same county

5-6 multiplied by the total amount available in the subaccount; and

5-7 (b) Special district’s share of the remaining money by:

5-8 (1) Multiplying one-twelfth of the amount allocated

5-9 pursuant to NRS 360.680 by 1 plus the average change in the

5-10 assessed valuation of the taxable property in the special district,

5-11 including assessed valuation attributable to a redevelopment

5-12 agency but excluding the portion attributable to the net proceeds

5-13 of minerals, over the year in which the allocation is made, as

5-14 projected by the Department pursuant to NRS 361.390, and the 4

5-15 fiscal years immediately preceding the year in which the allocation

5-16 is made; and

5-17 (2) Using the figure calculated pursuant to subparagraph

5-18 (1) to calculate and allocate to each special district an amount

5-19 equal to the proportion that the figure calculated pursuant to

5-20 subparagraph (1) bears to the total amount of the figures

5-21 calculated pursuant to subparagraph (1) of this paragraph and

5-22 subparagraph (1) of paragraph (a), respectively, for the local

5-23 governments and special districts located in the same county

5-24 multiplied by the total amount available in the subaccount.

5-25 The State Treasurer shall remit the amount allocated to each local

5-26 government or special district pursuant to this subsection.

5-27 6. Except as otherwise provided in subsection 7, if the

5-28 Executive Director determines that there is money remaining in

5-29 the county’s subaccount in the Account after the base monthly

5-30 allocation determined pursuant to subsection 2 has been allocated

5-31 to each local government, special district and enterprise district,

5-32 that the sum of the average percentage of change in population

5-33 and the average percentage of change in the assessed valuation of

5-34 taxable property, as calculated pursuant to sub-subparagraph (I)

5-35 of subparagraph (1) of paragraph (a) of subsection 4 for each of

5-36 those local governments, is a negative figure, and that the average

5-37 change in the assessed valuation of the taxable property in any of

5-38 those special districts, as calculated pursuant to sub-subparagraph

5-39 (I) of subparagraph (1) of paragraph (b) of subsection 4, is a

5-40 positive figure, he shall immediately determine and allocate each:

5-41 (a) Local government’s share of the remaining money by:

5-42 (1) Multiplying one-twelfth of the amount allocated

5-43 pursuant to NRS 360.680 by 1 plus the sum of the:

5-44 (I) Average percentage of change in the population of

5-45 the local government over the 5 fiscal years immediately preceding

6-1 the year in which the allocation is made, as certified by the

6-2 Governor pursuant to NRS 360.285, except as otherwise provided

6-3 in subsection 8; and

6-4 (II) Average percentage of change in the assessed

6-5 valuation of the taxable property in the local government,

6-6 including assessed valuation attributable to a redevelopment

6-7 agency but excluding the portion attributable to the net proceeds

6-8 of minerals, over the year in which the allocation is made, as

6-9 projected by the Department pursuant to NRS 361.390, and the 4

6-10 fiscal years immediately preceding the year in which the allocation

6-11 is made; and

6-12 (2) Using the figure calculated pursuant to subparagraph

6-13 (1) to calculate and allocate to each local government an amount

6-14 equal to the proportion that the figure calculated pursuant to

6-15 subparagraph (1) bears to the total amount of the figures

6-16 calculated pursuant to subparagraph (1) of this paragraph and

6-17 subparagraph (1) of paragraph (b), respectively, for the local

6-18 governments and special districts located in the same county

6-19 multiplied by the total amount available in the subaccount; and

6-20 (b) Special district’s share of the remaining money by:

6-21 (1) Multiplying one-twelfth of the amount allocated

6-22 pursuant to NRS 360.680 by 1 plus the sum of the:

6-23 (I) Average percentage of change in the population of

6-24 the county over the 5 fiscal years immediately preceding the year

6-25 in which the allocation is made, as certified by the Governor

6-26 pursuant to NRS 360.285, except as otherwise provided in

6-27 subsection 8; and

6-28 (II) Average change in the assessed valuation of the

6-29 taxable property in the special district, including assessed

6-30 valuation attributable to a redevelopment agency but excluding the

6-31 portion attributable to the net proceeds of minerals, over the year

6-32 in which the allocation is made, as projected by the Department

6-33 pursuant to NRS 361.390, and the 4 fiscal years immediately

6-34 preceding the year in which the allocation is made; and

6-35 (2) Using the figure calculated pursuant to subparagraph

6-36 (1) to calculate and allocate to each special district an amount

6-37 equal to the proportion that the figure calculated pursuant to

6-38 subparagraph (1) bears to the total amount of the figures

6-39 calculated pursuant to subparagraph (1) of this paragraph and

6-40 subparagraph (1) of paragraph (a), respectively, for the local

6-41 governments and special districts located in the same county

6-42 multiplied by the total amount available in the subaccount.

6-43 The State Treasurer shall remit the amount allocated to each local

6-44 government or special district pursuant to this subsection.

7-1 7. The Executive Director shall not allocate any amount to a

7-2 local government or special district pursuant to subsection 4, 5 or 6

7-3 unless the amount distributed and allocated to each of the local

7-4 governments and special districts in the county in each preceding

7-5 month of the fiscal year in which the allocation is to be made was at

7-6 least equal to the base monthly allocation determined pursuant to

7-7 subsection 2. If the amounts distributed to the local governments

7-8 and special districts in the county for the preceding months of the

7-9 fiscal year in which the allocation is to be made were less than the

7-10 base monthly allocation determined pursuant to subsection 2 and

7-11 the Executive Director determines there is money remaining in the

7-12 county’s subaccount in the Account after the distribution for the

7-13 month has been made, he shall:

7-14 (a) Determine the amount by which the base monthly allocations

7-15 determined pursuant to subsection 2 for each local government and

7-16 special district in the county for the preceding months of the fiscal

7-17 year in which the allocation is to be made exceeds the amounts

7-18 actually received by the local governments and special districts in

7-19 the county for the same period; and

7-20 (b) Compare the amount determined pursuant to paragraph (a) to

7-21 the amount of money remaining in the county’s subaccount in the

7-22 Account to determine which amount is greater.

7-23 If the Executive Director determines that the amount determined

7-24 pursuant to paragraph (a) is greater, he shall allocate the money

7-25 remaining in the county’s subaccount in the Account pursuant to the

7-26 provisions of subsection 3. If the Executive Director determines that

7-27 the amount of money remaining in the county’s subaccount in the

7-28 Account is greater, he shall first allocate the money necessary for

7-29 each local government and special district to receive the base

7-30 monthly allocation determined pursuant to subsection 2 and the

7-31 State Treasurer shall remit that money so allocated. The Executive

7-32 Director shall allocate any additional money in the county’s

7-33 subaccount in the Account pursuant to the provisions of subsection

7-34 4[.

7-35 6.] , 5 or 6, as appropriate.

7-36 8. The percentage [change] changes in population calculated

7-37 pursuant to [paragraph (a) of subsection] subsections 4 , 5 and 6

7-38 must:

7-39 (a) Except as otherwise provided in paragraph (c), if the Bureau

7-40 of the Census of the United States Department of Commerce issues

7-41 population totals that conflict with the totals certified by the

7-42 Governor pursuant to NRS 360.285, be an estimate of the change in

7-43 population for the calendar year, based upon the population totals

7-44 issued by the Bureau of the Census.

8-1 (b) If a new method of determining population is established

8-2 pursuant to NRS 360.283, be adjusted in a manner that will result in

8-3 the percentage change being based on population determined

8-4 pursuant to the new method for both the fiscal year in which the

8-5 allocation is made and the fiscal year immediately preceding the

8-6 year in which the allocation is made.

8-7 (c) If a local government files a formal appeal with the Bureau

8-8 of the Census [of the United States Department of Commerce]

8-9 concerning the population total of the local government issued by

8-10 the Bureau of the Census, be calculated using the population total

8-11 certified by the Governor pursuant to NRS 360.285 until the appeal

8-12 is resolved. If additional money is allocated to the local government

8-13 because the population total certified by the Governor is greater than

8-14 the population total issued by the Bureau of the Census, the State

8-15 Treasurer shall deposit that additional money in a separate interest-

8-16 bearing account. Upon resolution of the appeal, if the population

8-17 total finally determined pursuant to the appeal is:

8-18 (1) Equal to or less than the population total initially issued

8-19 by the Bureau of the Census, the State Treasurer shall transfer the

8-20 total amount in the separate interest-bearing account, including

8-21 interest but excluding any administrative fees, to the Local

8-22 Government Tax Distribution Account for allocation among the

8-23 local governments in the county pursuant to subsection 4[.] , 5 or 6,

8-24 as appropriate.

8-25 (2) Greater than the population total initially issued by the

8-26 Bureau of the Census, the Executive Director shall calculate the

8-27 amount that would have been allocated to the local government

8-28 pursuant to subsection 4 , 5 or 6, as appropriate, if the population

8-29 total finally determined pursuant to the appeal had been used and the

8-30 State Treasurer shall remit to the local government an amount equal

8-31 to the difference between the amount actually distributed and the

8-32 amount calculated pursuant to this subparagraph or the total amount

8-33 in the separate interest-bearing account, including interest but

8-34 excluding any administrative fees, whichever is less.

8-35 [7.] 9. On or before February 15 of each year, the Executive

8-36 Director shall provide to each local government, special district and

8-37 enterprise district a preliminary estimate of the revenue it will

8-38 receive from the Account for that fiscal year.

8-39 [8.] 10. On or before March 15 of each year, the Executive

8-40 Director shall:

8-41 (a) Make an estimate of the receipts from each tax included in

8-42 the Account on an accrual basis for the next fiscal year in

8-43 accordance with generally accepted accounting principles, including

8-44 an estimate for each county of the receipts from each tax included in

8-45 the Account; and

9-1 (b) Provide to each local government, special district and

9-2 enterprise district an estimate of the amount that local government,

9-3 special district or enterprise district would receive based upon the

9-4 estimate made pursuant to paragraph (a) and calculated pursuant to

9-5 the provisions of this section.

9-6 [9.] 11. A local government, special district or enterprise

9-7 district may use the estimate provided by the Executive Director

9-8 pursuant to subsection [8] 10 in the preparation of its budget.

9-9 Sec. 3. NRS 360.690 is hereby amended to read as follows:

9-10 360.690 1. Except as otherwise provided in NRS 360.730,

9-11 the Executive Director shall estimate monthly the amount each local

9-12 government, special district and enterprise district will receive from

9-13 the Account pursuant to the provisions of this section.

9-14 2. The Executive Director shall establish a base monthly

9-15 allocation for each local government, special district and enterprise

9-16 district by dividing the amount determined pursuant to NRS 360.680

9-17 for each local government, special district and enterprise district by

9-18 12, and the State Treasurer shall, except as otherwise provided in

9-19 subsections 3[, 4 and 5,] to 7, inclusive, remit monthly that amount

9-20 to each local government, special district and enterprise district.

9-21 3. If, after making the allocation to each enterprise district for

9-22 the month, the Executive Director determines there is not sufficient

9-23 money available in the county’s subaccount in the Account to

9-24 allocate to each local government and special district the base

9-25 monthly allocation determined pursuant to subsection 2, he shall

9-26 prorate the money in the county’s subaccount and allocate to each

9-27 local government and special district an amount equal to [the] its

9-28 proportionate percentage of [the amount that the local government

9-29 or special district received from] the total amount [which was

9-30 distributed to] of the base monthly allocations determined

9-31 pursuant to subsection 2 for all local governments and special

9-32 districts within the county . [for the fiscal year immediately

9-33 preceding the year in which the allocation is made.] The State

9-34 Treasurer shall remit that amount to the local government or special

9-35 district.

9-36 4. Except as otherwise provided in [subsection] subsections 5,

9-37 6 and 7, if the Executive Director determines that there is money

9-38 remaining in the county’s subaccount in the Account after the base

9-39 monthly allocation determined pursuant to subsection 2 has been

9-40 allocated to each local government, special district and enterprise

9-41 district, he shall immediately determine and allocate each:

9-42 (a) Local government’s share of the remaining money by:

9-43 (1) Multiplying one-twelfth of the amount allocated pursuant

9-44 to NRS 360.680 by the sum of the:

10-1 (I) Average percentage of change in the population of the

10-2 local government [for the fiscal year immediately preceding the year

10-3 in which the allocation is made and the 4] over the 5 fiscal years

10-4 immediately preceding the year in which the allocation is made, as

10-5 certified by the Governor pursuant to NRS 360.285, except as

10-6 otherwise provided in subsection [6;] 8; and

10-7 (II) Average percentage of change in the assessed

10-8 valuation of the taxable property in the local government, including

10-9 assessed valuation attributable to a redevelopment agency but

10-10 excluding the portion attributable to the net proceeds of minerals,

10-11 over the year in which the allocation is made, as projected by the

10-12 Department pursuant to NRS 361.390, and the 4 fiscal years

10-13 immediately preceding the year in which the allocation is made; and

10-14 (2) Using the figure calculated pursuant to subparagraph (1)

10-15 to calculate and allocate to each local government an amount equal

10-16 to the proportion that the figure calculated pursuant to subparagraph

10-17 (1) bears to the total amount of the figures calculated pursuant to

10-18 subparagraph (1) of this paragraph and subparagraph (1) of

10-19 paragraph (b), respectively, for the local governments and special

10-20 districts located in the same county multiplied by the total amount

10-21 available in the subaccount; and

10-22 (b) Special district’s share of the remaining money by:

10-23 (1) Multiplying one-twelfth of the amount allocated pursuant

10-24 to NRS 360.680 by the average change in the assessed valuation of

10-25 the taxable property in the special district, including assessed

10-26 valuation attributable to a redevelopment agency but excluding the

10-27 portion attributable to the net proceeds of minerals, over the [5] year

10-28 in which the allocation is made, as projected by the Department

10-29 pursuant to NRS 361.390, and the 4 fiscal years immediately

10-30 preceding the year in which the allocation is made; and

10-31 (2) Using the figure calculated pursuant to subparagraph (1)

10-32 to calculate and allocate to each special district an amount equal to

10-33 the proportion that the figure calculated pursuant to subparagraph

10-34 (1) bears to the total amount of the figures calculated pursuant to

10-35 subparagraph (1) of this paragraph and subparagraph (1) of

10-36 paragraph (a), respectively, for the local governments and special

10-37 districts located in the same county multiplied by the total amount

10-38 available in the subaccount.

10-39 The State Treasurer shall remit the amount allocated to each local

10-40 government or special district pursuant to this subsection.

10-41 5. Except as otherwise provided in subsection 7, if the

10-42 Executive Director determines that there is money remaining in

10-43 the county’s subaccount in the Account after the base monthly

10-44 allocation determined pursuant to subsection 2 has been allocated

10-45 to each local government, special district and enterprise district,

11-1 that the sum of the average percentage of change in population

11-2 and the average percentage of change in the assessed valuation of

11-3 taxable property, as calculated pursuant to subparagraph (1) of

11-4 paragraph (a) of subsection 4 for each of those local governments,

11-5 is a negative figure, and that the average change in the assessed

11-6 valuation of the taxable property in each of those special districts,

11-7 as calculated pursuant to subparagraph (1) of paragraph (b) of

11-8 subsection 4, is a negative figure, he shall immediately determine

11-9 and allocate each:

11-10 (a) Local government’s share of the remaining money by:

11-11 (1) Multiplying one-twelfth of the amount allocated

11-12 pursuant to NRS 360.680 by 1 plus the sum of the:

11-13 (I) Average percentage of change in the population of

11-14 the local government over the 5 fiscal years immediately preceding

11-15 the year in which the allocation is made, as certified by the

11-16 Governor pursuant to NRS 360.285, except as otherwise provided

11-17 in subsection 8; and

11-18 (II) Average percentage of change in the assessed

11-19 valuation of the taxable property in the local government,

11-20 including assessed valuation attributable to a redevelopment

11-21 agency but excluding the portion attributable to the net proceeds

11-22 of minerals, over the year in which the allocation is made, as

11-23 projected by the Department pursuant to NRS 361.390, and the 4

11-24 fiscal years immediately preceding the year in which the allocation

11-25 is made; and

11-26 (2) Using the figure calculated pursuant to subparagraph

11-27 (1) to calculate and allocate to each local government an amount

11-28 equal to the proportion that the figure calculated pursuant to

11-29 subparagraph (1) bears to the total amount of the figures

11-30 calculated pursuant to subparagraph (1) of this paragraph and

11-31 subparagraph (1) of paragraph (b), respectively, for the local

11-32 governments and special districts located in the same county

11-33 multiplied by the total amount available in the subaccount; and

11-34 (b) Special district’s share of the remaining money by:

11-35 (1) Multiplying one-twelfth of the amount allocated

11-36 pursuant to NRS 360.680 by 1 plus the average change in the

11-37 assessed valuation of the taxable property in the special district,

11-38 including assessed valuation attributable to a redevelopment

11-39 agency but excluding the portion attributable to the net proceeds

11-40 of minerals, over the year in which the allocation is made, as

11-41 projected by the Department pursuant to NRS 361.390, and the 4

11-42 fiscal years immediately preceding the year in which the allocation

11-43 is made; and

11-44 (2) Using the figure calculated pursuant to subparagraph

11-45 (1) to calculate and allocate to each special district an amount

12-1 equal to the proportion that the figure calculated pursuant to

12-2 subparagraph (1) bears to the total amount of the figures

12-3 calculated pursuant to subparagraph (1) of this paragraph and

12-4 subparagraph (1) of paragraph (a), respectively, for the local

12-5 governments and special districts located in the same county

12-6 multiplied by the total amount available in the subaccount.

12-7 The State Treasurer shall remit the amount allocated to each local

12-8 government or special district pursuant to this subsection.

12-9 6. Except as otherwise provided in subsection 7, if the

12-10 Executive Director determines that there is money remaining in

12-11 the county’s subaccount in the Account after the base monthly

12-12 allocation determined pursuant to subsection 2 has been allocated

12-13 to each local government, special district and enterprise district,

12-14 that the sum of the average percentage of change in population

12-15 and the average percentage of change in the assessed valuation of

12-16 taxable property, as calculated pursuant to subparagraph (1) of

12-17 paragraph (a) of subsection 4 for each of those local governments,

12-18 is a negative figure, and that the average change in the assessed

12-19 valuation of the taxable property in any of those special districts,

12-20 as calculated pursuant to subparagraph (1) of paragraph (b) of

12-21 subsection 4, is a positive figure, he shall immediately determine

12-22 and allocate each:

12-23 (a) Local government’s share of the remaining money by:

12-24 (1) Multiplying one-twelfth of the amount allocated

12-25 pursuant to NRS 360.680 by 1 plus the sum of the:

12-26 (I) Average percentage of change in the population of

12-27 the local government over the 5 fiscal years immediately preceding

12-28 the year in which the allocation is made, as certified by the

12-29 Governor pursuant to NRS 360.285, except as otherwise provided

12-30 in subsection 8; and

12-31 (II) Average percentage of change in the assessed

12-32 valuation of the taxable property in the local government,

12-33 including assessed valuation attributable to a redevelopment

12-34 agency but excluding the portion attributable to the net proceeds

12-35 of minerals, over the year in which the allocation is made, as

12-36 projected by the Department pursuant to NRS 361.390, and the 4

12-37 fiscal years immediately preceding the year in which the allocation

12-38 is made; and

12-39 (2) Using the figure calculated pursuant to subparagraph

12-40 (1) to calculate and allocate to each local government an amount

12-41 equal to the proportion that the figure calculated pursuant to

12-42 subparagraph (1) bears to the total amount of the figures

12-43 calculated pursuant to subparagraph (1) of this paragraph and

12-44 subparagraph (1) of paragraph (b), respectively, for the local

13-1 governments and special districts located in the same county

13-2 multiplied by the total amount available in the subaccount; and

13-3 (b) Special district’s share of the remaining money by:

13-4 (1) Multiplying one-twelfth of the amount allocated

13-5 pursuant to NRS 360.680 by 1 plus the sum of the:

13-6 (I) Average percentage of change in the population of

13-7 the county over the 5 fiscal years immediately preceding the year

13-8 in which the allocation is made, as certified by the Governor

13-9 pursuant to NRS 360.285, except as otherwise provided in

13-10 subsection 8; and

13-11 (II) Average change in the assessed valuation of the

13-12 taxable property in the special district, including assessed

13-13 valuation attributable to a redevelopment agency but excluding the

13-14 portion attributable to the net proceeds of minerals, over the year

13-15 in which the allocation is made, as projected by the Department

13-16 pursuant to NRS 361.390, and the 4 fiscal years immediately

13-17 preceding the year in which the allocation is made; and

13-18 (2) Using the figure calculated pursuant to subparagraph

13-19 (1) to calculate and allocate to each special district an amount

13-20 equal to the proportion that the figure calculated pursuant to

13-21 subparagraph (1) bears to the total amount of the figures

13-22 calculated pursuant to subparagraph (1) of this paragraph and

13-23 subparagraph (1) of paragraph (a), respectively, for the local

13-24 governments and special districts located in the same county

13-25 multiplied by the total amount available in the subaccount.

13-26 The State Treasurer shall remit the amount allocated to each local

13-27 government or special district pursuant to this subsection.

13-28 7. The Executive Director shall not allocate any amount to a

13-29 local government or special district pursuant to subsection 4, 5 or 6

13-30 unless the amount distributed and allocated to each of the local

13-31 governments and special districts in the county in each preceding

13-32 month of the fiscal year in which the allocation is to be made was at

13-33 least equal to the base monthly allocation determined pursuant to

13-34 subsection 2. If the amounts distributed to the local governments

13-35 and special districts in the county for the preceding months of the

13-36 fiscal year in which the allocation is to be made were less than the

13-37 base monthly allocation determined pursuant to subsection 2 and

13-38 the Executive Director determines there is money remaining in the

13-39 county’s subaccount in the Account after the distribution for the

13-40 month has been made, he shall:

13-41 (a) Determine the amount by which the base monthly allocations

13-42 determined pursuant to subsection 2 for each local government and

13-43 special district in the county for the preceding months of the fiscal

13-44 year in which the allocation is to be made exceeds the amounts

14-1 actually received by the local governments and special districts in

14-2 the county for the same period; and

14-3 (b) Compare the amount determined pursuant to paragraph (a) to

14-4 the amount of money remaining in the county’s subaccount in the

14-5 Account to determine which amount is greater.

14-6 If the Executive Director determines that the amount determined

14-7 pursuant to paragraph (a) is greater, he shall allocate the money

14-8 remaining in the county’s subaccount in the Account pursuant to the

14-9 provisions of subsection 3. If the Executive Director determines that

14-10 the amount of money remaining in the county’s subaccount in the

14-11 Account is greater, he shall first allocate the money necessary for

14-12 each local government and special district to receive the base

14-13 monthly allocation determined pursuant to subsection 2 and the

14-14 State Treasurer shall remit that money so allocated. The Executive

14-15 Director shall allocate any additional money in the county’s

14-16 subaccount in the Account pursuant to the provisions of subsection

14-17 4[.

14-18 6.] , 5 or 6, as appropriate.

14-19 8. The percentage [change] changes in population calculated

14-20 pursuant to [paragraph (a) of subsection] subsections 4 , 5 and 6

14-21 must:

14-22 (a) Except as otherwise provided in paragraph (c), if the Bureau

14-23 of the Census of the United States Department of Commerce issues

14-24 population totals that conflict with the totals certified by the

14-25 Governor pursuant to NRS 360.285, be an estimate of the change in

14-26 population for the calendar year, based upon the population totals

14-27 issued by the Bureau of the Census.

14-28 (b) If a new method of determining population is established

14-29 pursuant to NRS 360.283, be adjusted in a manner that will result in

14-30 the percentage change being based on population determined

14-31 pursuant to the new method for both the fiscal year in which the

14-32 allocation is made and the fiscal year immediately preceding the

14-33 year in which the allocation is made.

14-34 (c) If a local government files a formal appeal with the Bureau

14-35 of the Census [of the United States Department of Commerce]

14-36 concerning the population total of the local government issued by

14-37 the Bureau of the Census, be calculated using the population total

14-38 certified by the Governor pursuant to NRS 360.285 until the appeal

14-39 is resolved. If additional money is allocated to the local government

14-40 because the population total certified by the Governor is greater than

14-41 the population total issued by the Bureau of the Census, the State

14-42 Treasurer shall deposit that additional money in a separate interest-

14-43 bearing account. Upon resolution of the appeal, if the population

14-44 total finally determined pursuant to the appeal is:

15-1 (1) Equal to or less than the population total initially issued

15-2 by the Bureau of the Census, the State Treasurer shall transfer the

15-3 total amount in the separate interest-bearing account, including

15-4 interest but excluding any administrative fees, to the Local

15-5 Government Tax Distribution Account for allocation among the

15-6 local governments in the county pursuant to subsection 4[.] , 5 or 6,

15-7 as appropriate.

15-8 (2) Greater than the population total initially issued by the

15-9 Bureau of the Census, the Executive Director shall calculate the

15-10 amount that would have been allocated to the local government

15-11 pursuant to subsection 4 , 5 or 6, as appropriate, if the population

15-12 total finally determined pursuant to the appeal had been used and the

15-13 State Treasurer shall remit to the local government an amount equal

15-14 to the difference between the amount actually distributed and the

15-15 amount calculated pursuant to this subparagraph or the total amount

15-16 in the separate interest-bearing account, including interest but

15-17 excluding any administrative fees, whichever is less.

15-18 [7.] 9. On or before February 15 of each year, the Executive

15-19 Director shall provide to each local government, special district and

15-20 enterprise district a preliminary estimate of the revenue it will

15-21 receive from the Account for that fiscal year.

15-22 [8.] 10. On or before March 15 of each year, the Executive

15-23 Director shall:

15-24 (a) Make an estimate of the receipts from each tax included in

15-25 the Account on an accrual basis for the next fiscal year in

15-26 accordance with generally accepted accounting principles, including

15-27 an estimate for each county of the receipts from each tax included in

15-28 the Account; and

15-29 (b) Provide to each local government, special district and

15-30 enterprise district an estimate of the amount that local government,

15-31 special district or enterprise district would receive based upon the

15-32 estimate made pursuant to paragraph (a) and calculated pursuant to

15-33 the provisions of this section.

15-34 [9.] 11. A local government, special district or enterprise

15-35 district may use the estimate provided by the Executive Director

15-36 pursuant to subsection [8] 10 in the preparation of its budget.

15-37 Sec. 4. NRS 354.59813 is hereby amended to read as follows:

15-38 354.59813 1. In addition to the allowed revenue from taxes

15-39 ad valorem determined pursuant to NRS 354.59811, if the estimate

15-40 of the revenue available from the supplemental city-county relief tax

15-41 to the county as determined by the Executive Director of the

15-42 Department of Taxation pursuant to the provisions of subsection [8]

15-43 10 of NRS 360.690 is less than the amount of money that would be

15-44 generated by applying a tax rate of $1.15 per $100 of assessed

15-45 valuation to the assessed valuation of the county, except any

16-1 assessed valuation attributable to the net proceeds of minerals, the

16-2 governing body of each local government may levy an additional

16-3 tax ad valorem for operating purposes. The total tax levied by the

16-4 governing body of a local government pursuant to this section must

16-5 not exceed a rate calculated to produce revenue equal to the

16-6 difference between the:

16-7 (a) Amount of revenue from supplemental city-county relief tax

16-8 estimated to be received by the county pursuant to subsection [8] 10

16-9 of NRS 360.690; and

16-10 (b) The tax that the county would have been estimated to receive

16-11 if the estimate for the total revenue available from the tax was equal

16-12 to the amount of money that would be generated by applying a tax

16-13 rate of $1.15 per $100 of assessed valuation to the assessed

16-14 valuation of the county,

16-15 multiplied by the proportion determined for the local government

16-16 pursuant to subparagraph (2) of paragraph (a) of subsection 4 of

16-17 NRS 360.690[.] , subparagraph (2) of paragraph (a) of subsection

16-18 5 of NRS 360.690 or subparagraph (2) of paragraph (a) of

16-19 subsection 6 of NRS 360.690, as appropriate.

16-20 2. Any additional taxes ad valorem levied as a result of the

16-21 application of this section must not be included in the base from

16-22 which the allowed revenue from taxes ad valorem for the next

16-23 subsequent year is computed.

16-24 3. As used in this section, “local government” has the meaning

16-25 ascribed to it in NRS 360.640.

16-26 Sec. 5. NRS 354.598747 is hereby amended to read as

16-27 follows:

16-28 354.598747 1. To calculate the amount to be distributed

16-29 pursuant to the provisions of NRS 360.680 and 360.690 from a

16-30 county’s subaccount in the Local Government Tax Distribution

16-31 Account to a local government, special district or enterprise district

16-32 after it assumes the functions of another local government, special

16-33 district or enterprise district:

16-34 (a) Except as otherwise provided in this [subsection and

16-35 subsection 2,] section, the Executive Director of the Department of

16-36 Taxation shall:

16-37 (1) Add the amounts calculated pursuant to subsection 1 or 2

16-38 of NRS 360.680 for each local government, special district or

16-39 enterprise district and allocate the combined amount to the local

16-40 government, special district or enterprise district that assumes the

16-41 functions; and

16-42 (2) If applicable, add the average change in population and

16-43 average change in the assessed valuation of [the] taxable property

16-44 that would otherwise be allowed to the local government or special

16-45 district whose functions are assumed, including the assessed

17-1 valuation attributable to a redevelopment agency but excluding the

17-2 portion attributable to the net proceeds of minerals, pursuant to

17-3 subsection 4 , 5 or 6 of NRS 360.690 , as appropriate, to the

17-4 average change in population and average change in assessed

17-5 valuation for the local government, special district or enterprise

17-6 district that assumes the functions.

17-7 (b) If two or more local governments, special districts or

17-8 enterprise districts assume the functions of another local

17-9 government, special district or enterprise district, the additional

17-10 revenue must be divided among the local governments, special

17-11 districts or enterprise districts that assume the functions on the basis

17-12 of the proportionate costs of the functions assumed.

17-13 The Nevada Tax Commission shall not allow any increase in the

17-14 allowed revenue from the taxes contained in the county’s

17-15 subaccount in the Local Government Tax Distribution Account if

17-16 the increase would result in a decrease in revenue of any local

17-17 government, special district or enterprise district in the county that

17-18 does not assume those functions. If more than one local government,

17-19 special district or enterprise district assumes the functions, the

17-20 Nevada Tax Commission shall determine the appropriate amounts

17-21 calculated pursuant to subparagraphs (1) and (2) of paragraph (a).

17-22 2. If a city disincorporates, the board of county commissioners

17-23 of the county in which the city is located must determine the amount

17-24 the unincorporated town created by the disincorporation will receive

17-25 pursuant to the provisions of NRS 360.600 to 360.740, inclusive.

17-26 3. As used in this section:

17-27 (a) “Enterprise district” has the meaning ascribed to it in

17-28 NRS 360.620.

17-29 (b) “Local government” has the meaning ascribed to it in

17-30 NRS 360.640.

17-31 (c) “Special district” has the meaning ascribed to it in

17-32 NRS 360.650.

17-33 Sec. 6. 1. This section and sections 4 and 5 of this act

17-34 become effective on July 1, 2003.

17-35 2. Section 2 of this act becomes effective at 12:01 a.m. on

17-36 July 1, 2003, and expires by limitation on June 30, 2004.

17-37 3. Section 1 of this act becomes effective on July 1, 2004.

17-38 4. Section 3 of this act becomes effective at 12:01 a.m. on

17-39 July 1, 2004.

17-40 H