NRS: CHAPTER 377B - TAX FOR INFRASTRUCTURE

[Rev. 6/29/2024 3:50:24 PM--2023]

CHAPTER 377B - TAX FOR INFRASTRUCTURE

NRS 377B.020 “Solid waste” defined.

NRS 377B.030 “Wastewater facilities” defined.

NRS 377B.040 “Water authority” defined.

NRS 377B.050 “Water facilities” defined.

NRS 377B.100 County ordinance imposing tax: Enactment; contents; cessation; periodic review of necessity for continued imposition; public hearing; plan for expenditure of proceeds; periodic review of plan in certain counties; impairment of outstanding obligations prohibited.

NRS 377B.110 Mandatory provisions of ordinance imposing tax.

NRS 377B.120 Mandatory provision of ordinance amending ordinance imposing tax.

NRS 377B.130 Remittances to Department; deposit in Sales and Use Tax Account; distribution.

NRS 377B.140 Redistribution by Department.

NRS 377B.150 Infrastructure fund: Deposit of net tax proceeds.

NRS 377B.160 Infrastructure fund: Expenditure of principal, interest and income.

NRS 377B.170 Water authority in larger counties required to enter into interlocal agreement to provide distribution from infrastructure fund to certain cities, towns and other public entities.

NRS 377B.180 Annual report of city, town or other public entity in interlocal agreement with water authority for distribution from infrastructure fund.

NRS 377B.190 Money for payment of cost of project for which tax was imposed: Issuance of bonds or other obligations; direct distribution from infrastructure fund; authority of board of county commissioners or water authority.

NRS 377B.200 Covenant or other provision to pledge and create lien upon tax proceeds, revenue generated by project or proceeds of certain securities.

NRS 377B.210 Department required to disregard tax in determining amount of security required for payment of other sales and use taxes under certain circumstances.

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NRS 377B.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 377B.020 to 377B.050, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1997, 2394)

NRS 377B.020 “Solid waste” defined. “Solid waste” has the meaning ascribed to it in NRS 444.490.

(Added to NRS by 1997, 2394)

NRS 377B.030 “Wastewater facilities” defined. “Wastewater facilities” means:

1. Any devices and systems used in the storage, treatment, control of odor, recycling and reclamation of municipal sewage or industrial wastes of a liquid nature, including, without limitation, outfall sewers, pumping, power and other equipment, and their appurtenances;

2. Extensions, improvements, remodeling, additions and alterations of any device or system described in subsection 1;

3. Units essential to provide a reliable recycled supply of water, such as standby treatment units and clear well facilities; and

4. Land that is or will be an integral part of the treatment process or is used for the ultimate disposal of residues resulting from such treatment, including, without limitation, the acquisition and improvement of wetlands that are designed and used for the discharge of effluent.

(Added to NRS by 1997, 2395)

NRS 377B.040 “Water authority” defined. “Water authority” means a water authority organized as a public agency or an entity created by cooperative agreement pursuant to chapter 277 of NRS whose members at the time of formation included the three largest retail water purveyors in the county and which is responsible for the acquisition, treatment and delivery of water and water resources on a wholesale basis to utilities, governmental agencies and entities and other large customers.

(Added to NRS by 1997, 2395)

NRS 377B.050 “Water facilities” defined. “Water facilities” means facilities pertaining to a water system for the collection, transportation, treatment, purification and distribution of water, including, without limitation, springs, wells, ponds, lakes, water rights, other raw water sources, basin cribs, dams, spillways, retarding basins, detention basins, reservoirs, towers and other storage facilities, pumping plants, infiltration galleries, filtration plants, purification systems, other water treatment facilities, waterworks plants, pumping stations, gauging stations, ventilating facilities, stream gauges, rain gauges, valves, standpipes, connections, hydrants, conduits, flumes, sluices, canals, channels, ditches, pipes, lines, laterals, service pipes, force mains, submains, siphons, other water transmission and distribution mains, engines, boilers, pumps, meters, apparatus, tools, equipment, fixtures, structures, buildings and other facilities for the acquisition, transportation, treatment, purification and distribution of untreated water or potable water for domestic, commercial and industrial use and irrigation, or any combination thereof.

(Added to NRS by 1997, 2395)

1. The board of county commissioners of any county may by ordinance, but not as in a case of emergency, impose a tax for infrastructure pursuant to this section and NRS 377B.110.

2. An ordinance enacted pursuant to this chapter may not become effective before a question concerning the imposition of the tax is approved by a two-thirds majority of the members of the board of county commissioners. Any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax must be approved by a two-thirds majority of the members of the board of county commissioners. The board of county commissioners shall not change a previously approved use for the proceeds of the tax to a use that is not authorized for that county pursuant to NRS 377B.160.

3. An ordinance enacted pursuant to this section must:

(a) Specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must occur on the first day of the first month of the next calendar quarter that is at least 120 days after the date on which a two-thirds majority of the board of county commissioners approved the question.

(b) In a county whose population is 700,000 or more, provide for the cessation of the tax not later than:

(1) The last day of the month in which the Department determines that the total sum collected since the tax was first imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

(2) June 30, 2025,

Ê whichever occurs earlier.

4. Notwithstanding the provisions of an ordinance described in subsection 3, in a county whose population is 700,000 or more, the tax may continue to be imposed after the date set forth in the ordinance for the cessation of the tax if the board of county commissioners determines by an affirmative vote of at least two-thirds of its members that the cessation of the tax is not advisable.

5. The board of county commissioners in a county whose population is 700,000 or more and in which a water authority exists shall review the necessity for the continued imposition of the tax authorized pursuant to this chapter at least once every 10 years.

6. Before enacting an ordinance pursuant to this chapter, the board of county commissioners shall hold a public hearing regarding the imposition of a tax for infrastructure. In a county whose population is 700,000 or more and in which a water authority exists, the water authority shall also hold a public hearing regarding the tax for infrastructure. Notice of the time and place of each hearing must be:

(a) Published in a newspaper of general circulation in the county at least once a week for the 2 consecutive weeks immediately preceding the date of the hearing. Such notice must be a display advertisement of not less than 3 inches by 5 inches.

(b) Posted at the building in which the meeting is to be held and at not less than three other separate, prominent places within the county at least 2 weeks before the date of the hearing.

7. Before enacting an ordinance pursuant to this chapter, the board of county commissioners of a county whose population is less than 700,000 or a county whose population is 700,000 or more and in which no water authority exists, shall develop a plan for the expenditure of the proceeds of a tax imposed pursuant to this chapter for the purposes set forth in NRS 377B.160. The plan may include a regional project for which two or more such counties have entered into an interlocal agreement to expend jointly all or a portion of the proceeds of a tax imposed in each county pursuant to this chapter. Such a plan must include, without limitation, the date on which the plan expires, a description of each proposed project, the method of financing each project and the costs related to each project. Before adopting a plan pursuant to this subsection, the board of county commissioners of a county in which a regional planning commission has been established pursuant to NRS 278.0262 shall transmit to the regional planning commission a list of the proposed projects for which a tax for infrastructure may be imposed. The regional planning commission shall hold a public hearing at which it shall rank each project in relative priority. The regional planning commission shall transmit its rankings to the board of county commissioners. The recommendations of the regional planning commission regarding the priority of the proposed projects are not binding on the board of county commissioners. The board of county commissioners shall hold at least one public hearing on the plan. Notice of the time and place of the hearing must be provided in the manner set forth in subsection 6. The plan must be approved by the board of county commissioners at a public hearing. Subject to the provisions of subsection 9, on or before the date on which a plan expires, the board of county commissioners shall determine whether a necessity exists for the continued imposition of the tax. If the board determines that such a necessity does not exist, the board shall repeal the ordinance that enacted the tax. If the board of county commissioners determines that the tax must be continued for a purpose set forth in NRS 377B.160, the board shall adopt, in the manner prescribed in this subsection, a new plan for the expenditure of the proceeds of the tax for such a purpose.

8. If the plan approved pursuant to subsection 7 by the board of county commissioners of a county whose population is 100,000 or less includes the expenditure of the proceeds of a tax imposed pursuant to this chapter for a purpose set forth in paragraph (f) or (g) of subsection 3 of NRS 377B.160, the board must review the plan at least once every 4 years.

9. No ordinance imposing a tax which is enacted pursuant to this chapter may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to this chapter until those bonds or other obligations have been discharged in full.

(Added to NRS by 1997, 2395; A 2003, 2384; 2005, 1778; 2011, 1239, 3323; 2017, 1043)

NRS 377B.110 Mandatory provisions of ordinance imposing tax. An ordinance enacted pursuant to this chapter must include provisions in substance as follows:

1. A provision imposing a tax upon retailers at the rate of not more than:

(a) In a county whose population is 100,000 or more but less than 700,000, one-eighth of 1 percent; or

(b) In all other counties, one-quarter of 1 percent,

Ê of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in the county.

2. Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

3. A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this chapter, automatically become a part of an ordinance enacted pursuant to this chapter.

4. A provision stating the specific purpose for which the proceeds of the tax must be expended.

5. A provision that the county shall contract before the effective date of the ordinance with the Department to perform all functions incident to the administration or operation of the tax in the county.

6. A provision that a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract:

(a) Entered into on or before the effective date of the tax or the increase in the tax; or

(b) For the construction of an improvement to real property for which a binding bid was submitted before the effective date of the tax or the increase in the tax if the bid was afterward accepted,

Ê if, under the terms of the contract or bid, the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.

(Added to NRS by 1997, 2397; A 2003, 2385; 2005, 1778; 2011, 1240)

NRS 377B.120 Mandatory provision of ordinance amending ordinance imposing tax. An ordinance amending the ordinance enacted pursuant to NRS 377B.100 must include a provision in substance that the county shall amend the contract made pursuant to subsection 5 of NRS 377B.110 by a contract made between the county and the State acting by and through the Department before the effective date of the amendatory taxing ordinance, unless the county determines with the written concurrence of the Department that no such amendment of the contract is necessary or desirable.

(Added to NRS by 1997, 2398)

NRS 377B.130 Remittances to Department; deposit in Sales and Use Tax Account; distribution.

1. All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the counties pursuant to this chapter must be paid to the Department in the form of remittances payable to the Department.

2. The Department shall deposit the payments with the State Treasurer for credit to the Sales and Use Tax Account in the State General Fund.

3. The State Controller, acting upon the collection data furnished by the Department, shall monthly:

(a) Transfer from the Sales and Use Tax Account to the appropriate account in the State General Fund 1.75 percent of all fees, taxes, interest and penalties collected pursuant to this chapter during the preceding month as compensation to the State for the cost of collecting the taxes.

(b) Determine for each county an amount of money equal to any fees, taxes, interest and penalties collected in or for that county pursuant to this chapter during the preceding month, less the amount transferred to the State General Fund pursuant to paragraph (a).

(1) In each county whose population is 700,000 or more and in which a water authority exists, to the treasurer for the water authority.

(2) In each county whose population is less than 700,000 or each county whose population is 700,000 or more and in which no water authority exists, to the county treasurer.

(Added to NRS by 1997, 2398; A 2009, 2091; 2011, 1241)

NRS 377B.140 Redistribution by Department. The Department may redistribute any fee, tax, penalty and interest to:

1. A county whose population is less than 700,000 or a county whose population is 700,000 or more and in which no water authority exists; or

2. The water authority in a county whose population is 700,000 or more and in which a water authority exists,

Ê that is entitled thereto, but no such redistribution may be made as to amounts originally distributed more than 6 months before the date on which the Department obtains knowledge of the improper distribution.

(Added to NRS by 1997, 2398; A 2011, 1242)

NRS 377B.150 Infrastructure fund: Deposit of net tax proceeds.

1. In a county whose population is less than 700,000 or a county whose population is 700,000 or more and in which no water authority exists, the county treasurer shall deposit the money received from the State Controller pursuant to NRS 377B.130 in the county treasury for credit to a fund to be known as the infrastructure fund. The infrastructure fund must be accounted for as a separate fund and not as a part of any other fund. The money for each project included in the plan adopted pursuant to subsection 7 of NRS 377B.100 must be accounted for separately in the fund.

2. In a county whose population is 700,000 or more and in which a water authority exists, the water authority shall deposit the money received from the State Controller pursuant to NRS 377B.130 in a separate account of the water authority to be known as the infrastructure fund. This fund must be accounted for as a separate fund and not as part of any other fund of the water authority.

(Added to NRS by 1997, 2398; A 2011, 1242, 3325)

NRS 377B.160 Infrastructure fund: Expenditure of principal, interest and income. The money in the infrastructure fund, including interest and any other income from the fund:

1. In a county whose population is 700,000 or more, must only be expended by the water authority, distributed by the water authority to its members, distributed by the water authority pursuant to NRS 377B.170 to a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or to a public entity in the county which provides water or wastewater services and which is not a member of the water authority or, if no water authority exists in the county, expended by the board of county commissioners for:

(a) The acquisition, establishment, construction, improvement or equipping of water and wastewater facilities;

(b) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects described in paragraph (a); or

Ê The board of county commissioners may only expend money from the infrastructure fund pursuant to this subsection in the manner set forth in the plan adopted pursuant to subsection 7 of NRS 377B.100.

2. In a county whose population is 100,000 or more but less than 700,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to subsection 7 of NRS 377B.100 for:

(a) The acquisition, establishment, construction or expansion of:

(1) Projects for the management of floodplains or the prevention of floods; or

(2) Facilities relating to public safety;

(b) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects described in paragraph (a);

(c) The ongoing expenses of operation and maintenance of projects described in subparagraph (1) of paragraph (a), if such projects were included in a plan adopted by the board of county commissioners pursuant to subsection 7 of NRS 377B.100 before January 1, 2003;

(d) Any program to provide financial assistance to owners of public and private property in areas likely to be flooded in order to make such property resistant to flood damage that is established pursuant to NRS 244.3653; or

(e) Any combination of those purposes.

3. In a county whose population is less than 100,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to subsection 7 of NRS 377B.100 for:

(a) The acquisition, establishment, construction, improvement or equipping of:

(1) Water facilities; or

(2) Wastewater facilities;

(b) The acquisition, establishment, construction, operation, maintenance or expansion of:

(1) Projects for the management of floodplains or the prevention of floods; or

(2) Facilities for the disposal of solid waste;

(d) The construction or renovation of facilities having cultural or historical value;

(e) Projects described in subsection 2 of NRS 373.028;

(f) The acquisition, establishment, construction, expansion, improvement or equipping of facilities relating to public safety or to cultural and recreational, judicial or health and welfare functions;

(g) The ongoing expenses of operation and maintenance for services and supplies of facilities described in paragraph (f), excluding salaries and benefits;

(h) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects, facilities and activities described in paragraphs (a) to (g), inclusive; or

(i) Any combination of those purposes.

(Added to NRS by 1997, 2399; A 2003, 1414; 2005, 567; 2007, 611; 2009, 1432; 2011, 1242, 3325; 2017, 1044)

NRS 377B.170 Water authority in larger counties required to enter into interlocal agreement to provide distribution from infrastructure fund to certain cities, towns and other public entities.

1. In a county whose population is 700,000 or more and in which a water authority exists, the water authority shall enter into an interlocal agreement with a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or with a public entity in the county which provides water or wastewater services and which is not a member of the water authority to provide a distribution from the infrastructure fund of the water authority to the city, town or public entity after the city, town or public entity has filed with the water authority a detailed plan for acquiring, establishing, constructing, improving or equipping, or any combination thereof, a water or wastewater facility.

2. Such a city, town or public entity may request annually from the infrastructure fund of the water authority an amount of the proceeds of the tax for infrastructure received annually by the water authority that is equal to the proportion that the assessed valuation of taxable property within the boundaries of the city or town or the area served by the public entity, except any assessed valuation attributable to the net proceeds of minerals, bears to the total assessed valuation of taxable property within the county, except any assessed valuation attributable to the net proceeds of minerals. If the boundaries of such a city or town overlap with the boundaries of a public entity in such a county which provides water or wastewater services and which is not a member of the water authority, the water authority shall apportion equally between the city or town and the public entity the distribution from the infrastructure fund attributable to the assessed valuation in the area where the boundaries overlap.

3. The water authority shall not unreasonably refuse a request from such a city, town or public entity for a distribution from the infrastructure fund pursuant to the provisions of this section.

(Added to NRS by 1997, 2399; A 2011, 1243; 2013, 3134)

NRS 377B.180 Annual report of city, town or other public entity in interlocal agreement with water authority for distribution from infrastructure fund. If a water authority in a county whose population is 700,000 or more has entered into an interlocal agreement to provide a distribution from the infrastructure fund pursuant to NRS 377B.170 to a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or to a public entity in the county which provides water or wastewater services and which is not a member of the water authority, the city, town or public entity shall transmit to the water authority on or before December 15 of each year a report that describes:

1. The total distribution received by the city, town or public entity during the preceding fiscal year from the infrastructure fund pursuant to NRS 377B.170;

2. Each project for which the money was distributed; and

3. The status of each project for which the money was distributed.

(Added to NRS by 1997, 2401; A 2011, 1244)

1. Money for the payment of the cost of one or more projects for which the board of county commissioners has imposed all or a portion of the tax authorized pursuant to this chapter may be obtained by the issuance of bonds and other securities as provided in this section, or, subject to any pledges, liens and other contractual limitations made pursuant to this chapter, may be obtained by direct distribution from the infrastructure fund, or may be obtained both by the issuance of such securities and by such direct distribution as determined by the board of county commissioners or, in a county whose population is 700,000 or more and in which a water authority exists, by the water authority.

2. The board of county commissioners of a county whose population is less than 700,000 or of a county whose population is 700,000 or more and in which no water authority exists may, after the enactment of an ordinance imposing a tax for infrastructure as authorized by NRS 377B.100, from time to time issue bonds and other securities, which are general or special obligations of the county and which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the taxes imposed by this chapter. The ordinance authorizing the issuance of any bond or other security must describe the purpose for which it was issued.

3. After the enactment of an ordinance imposing a tax for infrastructure by the board of county commissioners of a county whose population is 700,000 or more and in which a water authority exists, the water authority or, if so provided in an interlocal agreement to which the water authority is a party, one or more of the members of the water authority, may from time to time issue bonds and other securities, which are general or special obligations and which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the taxes imposed by this chapter.

4. In a county whose population is 700,000 or more, no bonds or other securities may be issued pursuant to this section which are payable from or secured by, in whole or in part, any revenue from a tax enacted pursuant to this chapter to be collected after:

(a) The last day of the month in which the Department determines that the total sum collected since the tax was first imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

(b) June 30, 2025,

Ê whichever occurs earlier, unless the board of county commissioners pursuant to subsection 4 of NRS 377B.100 has determined by an affirmative vote of at least two-thirds of its members that the cessation of the tax is not advisable.

(Added to NRS by 1997, 2400; A 2011, 1244, 3326)

NRS 377B.200 Covenant or other provision to pledge and create lien upon tax proceeds, revenue generated by project or proceeds of certain securities.

1. Each document providing for the issuance of any bond or security issued pursuant to this chapter which is payable from the receipts of the taxes imposed by this chapter or revenue generated by one or more projects for which the board of county commissioners has imposed all or a portion of the tax authorized pursuant to this chapter, may, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain a covenant or other provision to pledge and create a lien upon the receipts of the tax or the revenue generated by one or more projects for which the board of county commissioners has imposed all or a portion of the tax authorized pursuant to this chapter, or upon the proceeds of any bond or security pending their application to defray the cost of one or more projects for which the board of county commissioners has imposed all or a portion of the tax authorized pursuant to this chapter, or any combination of the tax proceeds, generated revenue or security proceeds, to secure the payment of any bond or security issued pursuant to this chapter.

2. Any money pledged to the payment of bonds or other securities pursuant to subsection 1 may be treated as pledged revenues of the project for the purposes of subsection 3 of NRS 350.020.

(Added to NRS by 1997, 2401)

NRS 377B.210 Department required to disregard tax in determining amount of security required for payment of other sales and use taxes under certain circumstances. If a person has not been habitually delinquent in the payment of any sales or use tax at any time within the immediately preceding 3 years, the Department shall disregard the amount of any tax due pursuant to this chapter when determining the amount of any security it may require from that person for the payment of any sales or use tax.

(Added to NRS by 1997, 2402)