Senate Bill No. 470–Committee on Taxation

 

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

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Makes various changes concerning imposition, distribution and use of certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft. (BDR 32‑628)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           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; authorizing cities that own or operate airports in certain counties to impose certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft; revising the method for the distribution of and certain restrictions on the expenditure of the proceeds of certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft; 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 365 of NRS is hereby amended by adding

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

1-3  “Governmental entity” includes, without limitation, an airport

1-4  authority created by special legislative act.

1-5  Sec. 2.  NRS 365.010 is hereby amended to read as follows:

1-6  365.010  As used in this chapter, unless the context otherwise

1-7  requires, the words and terms defined in NRS 365.015 to 365.088,

1-8  inclusive, and section 1 of this act have the meanings ascribed to

1-9  them in those sections.

2-1  Sec. 3.  NRS 365.170 is hereby amended to read as follows:

2-2  365.170  1.  Except as otherwise provided in NRS 365.135,

2-3  every dealer shall, not later than the last day of each calendar month:

2-4  (a) Render to the Department a statement of all aviation fuel and

2-5  fuel for jet or turbine-powered aircraft sold, distributed or used by

2-6  him in this state, as well as all such fuel sold, distributed or used in

2-7  this state by a purchaser thereof upon which sale, distribution or use

2-8  the dealer has assumed liability for the tax thereon pursuant to NRS

2-9  365.020, during the preceding calendar month; and

2-10      (b) Pay an excise tax on:

2-11          (1) All fuel for jet or turbine-powered aircraft in the amount

2-12  of 1 cent per gallon, plus any applicable amount imposed [by the

2-13  county in which the fuel is sold, distributed or used] pursuant to

2-14  NRS 365.203; and

2-15          (2) Aviation fuel in the amount of 2 cents per gallon, plus

2-16  any applicable amount imposed [by the county in which the fuel is

2-17  sold, distributed or used] pursuant to NRS 365.203,

2-18  so sold, distributed or used, in the manner and within the time

2-19  prescribed in this chapter.

2-20      2.  A dealer shall hold the amount of all taxes collected

2-21  pursuant to this chapter in a separate account in trust for the State.

2-22      Sec. 4.  NRS 365.203 is hereby amended to read as follows:

2-23      365.203  1.  The governing body of a city may by ordinance,

2-24  but not as in a case of emergency, impose a tax of not more than:

2-25      (a) Four cents per gallon on fuel for jet or turbine-powered

2-26  aircraft; and

2-27      (b) Eight cents per gallon on aviation fuel,

2-28  sold, distributed or used at an airport which is owned or operated

2-29  by the city in a county whose population is less than 100,000.

2-30      2.  A board of county commissioners may by ordinance, but not

2-31  as in a case of emergency, impose a tax of not more than:

2-32      (a) Four cents per gallon on fuel for jet or turbine-powered

2-33  aircraft ; [sold, distributed or used in the county;] and

2-34      (b) Eight cents per gallon on aviation fuel[.

2-35      2.] ,

2-36  sold, distributed or used in the county, except at an airport where a

2-37  tax is imposed pursuant to subsection 1.

2-38      3.  A tax imposed pursuant to this section must be imposed on

2-39  all taxpayers at the same rate. The city or county shall not allow any

2-40  discounts, exemptions or other variance of the rate of the tax for any

2-41  taxpayer except for the State or a political subdivision of the State.

2-42      [3.] 4.  Collection of the tax imposed pursuant to this section

2-43  must not commence earlier than the first day of the second calendar

2-44  month after adoption of the ordinance imposing the tax.

 

3-1  Sec. 5.  NRS 365.545 is hereby amended to read as follows:

3-2  365.545  1.  The proceeds of all taxes on fuel for jet or

3-3  turbine-powered aircraft imposed pursuant to the provisions of NRS

3-4  365.170 or 365.203 must be deposited in the Account for Taxes on

3-5  Fuel for Jet or Turbine-Powered Aircraft in the State General Fund

3-6  and must be allocated monthly by the Department to the

3-7  [governmental] :

3-8  (a) Governmental entity which operates the airport at which

3-9  the tax was collected, if the airport is operated by a governmental

3-10  entity;

3-11      (b) Governmental entity which owns the airport at which the tax

3-12  was collected, [or if the airport is privately owned , to the county] if

3-13  the airport is owned but not operated by a governmental entity; or

3-14      (c) County in which is located the airport [is located .] at which

3-15  the tax was collected, if the airport is neither owned nor operated

3-16  by a governmental entity.

3-17      2.  The money so received must be used by the governmental

3-18  entity receiving it to pay the cost of:

3-19      (a) Transportation projects related to airports, including access

3-20  on the ground to airports;

3-21      (b) Payment of principal and interest on notes, bonds or other

3-22  obligations incurred to fund projects described in paragraph (a);

3-23      (c) Promoting the use of an airport [,] located in a county whose

3-24  population is less than 400,000, including, without limitation,

3-25  increasing the number and availability of flights at the airport;

3-26      (d) Contributing money to the Trust Fund for Aviation created

3-27  by NRS 494.048; or

3-28      (e) Any combination of those purposes.

3-29      3.  Money so received may also be pledged for the payment of

3-30  general or special obligations issued to fund projects described in

3-31  paragraph (a) of subsection 2.

3-32      4.  Any money pledged pursuant to the provisions of subsection

3-33  3 may be treated as pledged revenues of the project for the purposes

3-34  of subsection 3 of NRS 350.020.

3-35      Sec. 6.  NRS 365.565 is hereby amended to read as follows:

3-36      365.565  1.  The tax derived from aviation fuel must be

3-37  distributed quarterly from the Account for Taxes on Aviation Fuel

3-38  in the following manner:

3-39      [1.  There]

3-40      (a) The amount of any optional tax must be remitted to the:

3-41          (1) Governmental entity which operates the airport at

3-42  which the optional tax was collected, if the airport is operated by a

3-43  governmental entity;

4-1       (2) Governmental entity which owns the airport at which

4-2  the optional tax was collected, if the airport is owned but not

4-3  operated by a governmental entity; or

4-4       (3) County in which is located the airport at which the

4-5  optional tax was collected, if the airport is neither owned nor

4-6  operated by a governmental entity.

4-7  (b) After deducting the amount allocated pursuant to

4-8  paragraph (a), there must be transferred to the Civil Air Patrol

4-9  Account, which is hereby created, [from the Account for Taxes on

4-10  Aviation Fuel,] for the ensuing fiscal year, a sum not to exceed

4-11  $130,000 or the total amount remaining in the [Account,] Account

4-12  for Taxes on Aviation Fuel, whichever is less.

4-13      (c) After deducting the amounts allocated pursuant to

4-14  paragraphs (a) and (b), any remaining balance in the Account for

4-15  Taxes on Aviation Fuel must be remitted, in proportion to the

4-16  amount of the mandatory tax collected at each airport, to the:

4-17          (1) Governmental entity which operates the airport at

4-18  which the mandatory tax was collected, if the airport is operated

4-19  by a governmental entity;

4-20          (2) Governmental entity which owns the airport at which

4-21  the mandatory tax was collected, if the airport is owned but not

4-22  operated by a governmental entity; or

4-23          (3) County in which is located the airport at which the

4-24  mandatory tax was collected, if the airport is neither owned nor

4-25  operated by a governmental entity.

4-26      2.  Any money received by a governmental entity pursuant to

4-27  subsection 1, except for the money transferred to the Civil Air

4-28  Patrol Account, must be used by that governmental entity in the

4-29  same manner as money allocated to a governmental entity

4-30  pursuant to NRS 365.545.

4-31      3.  The amount [so] transferred to the Civil Air Patrol Account

4-32  pursuant to this section must be expended for the support of the

4-33  Nevada Wing of the Civil Air Patrol and is in addition to and

4-34  separate from any legislative appropriations made to the Civil Air

4-35  Patrol Account for the support of that wing.

4-36      [2.] 4.  Money in the Civil Air Patrol Account may be paid out

4-37  only upon claims certified by the Wing Commander and the Wing

4-38  Finance Officer and approved by the State Board of Examiners, in

4-39  the same manner as other claims against the State are paid.

4-40      [3.] 5.  Money in the Civil Air Patrol Account may be used

4-41  only by the wing to:

4-42      (a) Carry out its search, rescue and emergency operations;

4-43      (b) Maintain a headquarters; and

4-44      (c) Purchase, maintain and repair emergency and training

4-45  equipment.

5-1  [4.] 6.  No money in the Civil Air Patrol Account may be

5-2  expended for:

5-3  (a) The purchase of any aircraft;

5-4  (b) Travel expenses;

5-5  (c) Training expenses; or

5-6  (d) Fuel for vehicles or aircraft used in an official mission of the

5-7  United States Air Force.

5-8  [5.] 7.  Any person who makes a claim against the Civil Air

5-9  Patrol Account shall reimburse the Account if payment for the claim

5-10  is also received from another source.

5-11      [6.  There must be remitted to the treasurer of each county such

5-12  portion of the remaining balance in the Account for Taxes on

5-13  Aviation Fuel as is proportional to the excise taxes remitted by

5-14  dealers or users in his county.]

5-15      8.  As used in this section:

5-16      (a) “Mandatory tax” means the tax on aviation fuel collected

5-17  pursuant to NRS 365.170 without regard to any optional tax.

5-18      (b) “Optional tax” means a tax on aviation fuel imposed

5-19  pursuant to NRS 365.203.

5-20      Sec. 7.  NRS 494.046 is hereby repealed.

5-21      Sec. 8.  The provisions of this act do not apply to the

5-22  administration and use of any money remitted to a county treasurer

5-23  pursuant to NRS 365.565 before July 1, 2003.

5-24      Sec. 9.  This act becomes effective on July 1, 2003.

 

5-25  TEXT OF REPEALED SECTION

 

5-26      494.046  County airport fund: Deposits; administration by

5-27   board of county commissioners; use of money; apportionment.

5-28      1.  All money remitted to county treasurers pursuant to NRS

5-29   365.565 must be credited by them to the airport fund of the county.

5-30      2.  The county airport fund must be administered by the board

5-31   of county commissioners.

5-32      3.  The money in the fund must be available for the planning,

5-33   establishment, development, construction, enlargement,

5-34   improvement, operation and maintenance of airports, landing areas

5-35   and air navigation facilities within the county established, owned or

5-36   controlled, or to be established, owned or controlled, by the county,

5-37   any incorporated city or any airport authority created by special

5-38   legislative act as a quasi-municipal corporation within the county.

5-39      4.  The money in the fund must not be used for any purpose

5-40   other than as specified in subsection 3.

6-1  5.  If any airport or landing area within a county is owned or

6-2  controlled by an incorporated city, the money in the county airport

6-3   fund must be apportioned as follows:

6-4  (a) If the airport or landing area owned or controlled by an

6-5   incorporated city is the only publicly owned or controlled airport or

6-6   landing area within the county, all of the money in the fund must be

6-7   allocated to the incorporated city.

6-8  (b) If two or more incorporated cities within the county own or

6-9   control airports or landing areas and the county does not own or

6-10   control any airport or landing area, all of the money in the fund

6-11   must be apportioned among those incorporated cities in proportion

6-12   to the assessed valuation of property within the boundaries of such

6-13   cities.

6-14      (c) If the county and one or more incorporated cities within the

6-15   county own or control airports or landing areas, all of the money in

6-16   the fund must be apportioned between the county and incorporated

6-17   city or cities in the same ratio as the assessed valuation of property

6-18   within the boundaries of such city or cities bears to the total

6-19   assessed valuation of property within the county, including property

6-20   within the incorporated cities.

6-21      6.  If the only airport or landing area within a county is owned

6-22   or controlled by an airport authority created by special legislative

6-23   act as a quasi-municipal corporation, all of the money in the fund

6-24   must be allocated to the airport authority.

 

6-25  H