Senate Joint Resolution No. 1–Committee on Taxation

 

June 14, 2001

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Referred to Committee on Taxation

 

SUMMARY—Proposes to amend Nevada Constitution to provide requirements for enactment of property and sales tax exemptions. (BDR C‑28)

 

FISCAL NOTE:  Effect on Local Government: No.

                   Effect on the State or on Industrial Insurance: No.

 

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

 

Senate Joint RESOLUTION—Proposing to amend the Constitution of the State of Nevada to provide requirements for the enactment of property and sales tax exemptions.

 

1-1  Resolved by the Senate and Assembly of the State of

1-2  Nevada, Jointly, That a new section, designated section 6, be

1-3  added to article 10 of the Constitution of the State of Nevada to read

1-4  as follows:

1-5  Sec. 6.  1.  The Legislature shall not enact an

1-6  exemption from any ad valorem tax on property or excise

1-7  tax on the sale, storage, use or consumption of tangible

1-8  personal property sold at retail unless the Legislature:

1-9  (a) Determines that the exemption will achieve a bona

1-10  fide social or economic purpose;

1-11      (b) Restricts the eligibility for the exemption solely to the

1-12  intended beneficiaries of the exemption;

1-13      (c) Determines that the exemption will not have a

1-14  material adverse effect on the finances of the state or any

1-15  local government that would otherwise receive revenue from

1-16  the tax from which the exemption would be granted;

1-17      (d) Determines that the exemption will not impair

1-18  adversely the ability of the state or a unit of government to

1-19  pay, when due, all interest and principal on any outstanding

1-20  bonds or any other obligations for which revenue from the

2-1  tax from which the exemption would be granted was

2-2  pledged; or

2-3  (e) Ensures that the requirements for claiming the

2-4  exemption are as similar as practicable for similar classes of

2-5  taxpayers.

2-6  2.  The Legislature shall review any exemption from

2-7  any tax on property or on the sale, storage, use or

2-8  consumption of tangible personal property sold at retail at

2-9  least once every 6 years to determine whether the purpose of

2-10  the exemption is still valid and that the exemption is being

2-11  used effectively.

 

2-12  H