Assembly Bill No. 17-Committee on Government Affairs
Prefiled on January 15, 1997
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Referred to Committee on Taxation
SUMMARY--Authorizes counties and cities to use proceeds from real property transfer tax for development of affordable housing. (BDR 32-227)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to taxation; authorizing the use of proceeds from the real property transfer tax for the development of affordable housing; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 375.070 is hereby amended to read as follows:
375.070 1. The county recorder shall transmit the proceeds of the real property transfer tax at the end of each quarter in the following manner:
(a) An amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof must be transmitted to the state treasurer who shall deposit that amount in the account for low-income housing created pursuant to NRS 319.500.
(b) The remaining proceeds must be transmitted to the county treasurer, who shall in Carson City, and in any county where there are no incorporated cities, deposit them all in the general fund, and in other counties deposit 25 percent of them in the general fund and apportion the remainder as follows:
(1) If there is one incorporated city in the county, between that city and the county general fund in proportion to the respective populations of the city and the unincorporated area of the county.
(2) If there are two or more cities in the county, among the cities in proportion to their respective populations.
2. If there is any incorporated city in a county, the county recorder shall charge each city a fee equal to 2 percent of the real property transfer tax which is transferred to that city.
3. In addition to any other authorized use of the proceeds it receives pursuant to subsection 1, a county or city may use the proceeds to pay expenses related to or incurred for the development of affordable housing for families whose income does not exceed 80 percent of the median income for families residing in the same county, as that percentage is defined by the United States Department of Housing and Urban Development. The eligible expenses include, but are not limited to:
(a) The costs to acquire land and developmental rights;
(b) Related predevelopment expenses;
(c) The costs to develop the land, including the payment of related rebates;
(d) Contributions toward down payments made for the purchase of affordable housing; and
(e) The creation of related trust funds.