Assembly Bill No. 237

Assembly Bill No. 237-Committee on Government Affairs

March 5, 1997
____________

Referred to Committee on Government Affairs

SUMMARY--Amends charter of Carson City to authorize imposition of local sales and use tax for open spaces, parks, trails and recreational facilities. (BDR S-907)

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 Carson City; amending the charter of Carson City to authorize the imposition of a local sales and use tax for open spaces, parks, trails and recreational facilities; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 The legislature finds and declares that this special act is necessary because:
1. The quality of life in Nevada depends on a variety of factors including the availability of open spaces, parks, trails and recreational facilities;
2. A majority of the voters in Carson City approved in the 1996 general election an increase in the sales tax of one-quarter of 1 percent for open spaces, parks, trails and recreational facilities thereby demonstrating the commitment of the people of Carson City to maintaining and enhancing the quality of life in Nevada;
3. Carson City is unique in its organization as a consolidated municipality and as the seat of government of this state;
4. Preserving the quality of life in Carson City presents atypical problems because the total area within its boundaries is less than 150 square miles; and
5. A general law cannot be made applicable because of the economic and geographical diversity of the local governments of this state, the unique growth patterns in those local governments and the special conditions experienced in Carson City related to the need to provide open spaces, parks, trails and recreational facilities.
Sec. 2. The charter of Carson City, being chapter 213, Statutes of Nevada 1969, as amended, is hereby further amended by adding Article 8A to read as follows:

ARTICLE 8A

Local Sales and Use Tax for

Open Spaces, Parks, Trails and Recreational Facilities

Sec. 8A.010 Definitions. Except as otherwise provided in this article or where the context otherwise requires, terms used or referred to in this article have the meanings ascribed to them in chapter 372 of NRS, as from time to time amended; but the definitions in sections 8A.020 to 8A.060, inclusive, except where the context otherwise requires, govern the construction of this article.

Sec. 8A.020 "Department" defined. "Department" means the department of taxation.

Sec. 8A.030 "Open space" defined. "Open space" means real property that is undeveloped or partially developed natural landscape, including, but not limited to, ridges, stream corridors, natural shoreline, scenic areas, watershed areas, viewsheds, agricultural or other land devoted exclusively to open-space use, conservation easements and easements devoted or connecting to open-space use.

Sec. 8A.040 "Park" defined. "Park" means real property designed to serve the recreational and outdoor needs of natural persons.

Sec. 8A.050 "Recreational facility" defined. "Recreational facility" means personal property and improvements to real property for athletic and leisure activities and all appurtenant or customary facilities and uses associated therewith.

Sec. 8A.060 "Trail" defined. "Trail" means a path for recreational or leisure activities through or connecting open space, parks or recreational facilities for use by nonmotorized traffic. The term includes a path or additional lane for bicycles.

Sec. 8A.070 Imposition of tax; use of proceeds.

1. The board may enact an ordinance imposing a local sales and use tax for the acquisition, development, construction, equipping, operation, maintenance, improvement and management of open spaces, parks, trails and recreational facilities located within Carson City.

2. The proceeds from the tax imposed pursuant to this article and the interest and other income earned on the proceeds of the tax must be used as follows:

(a) Forty percent of the proceeds of the tax, including interest and other income, may be used for the acquisition, development, construction, equipping, improvement, maintenance and management of real property for open spaces.

(b) Except as otherwise provided in paragraph (e), 40 percent of the proceeds of the tax, including interest and other income, may be used for the acquisition, development, construction, equipping and improvement of parks, trails and recreational facilities.

(c) Twenty percent of the proceeds of the tax, including interest and other income, may be used for the operation, maintenance and management of parks, trails and recreational facilities.

(d) Except as otherwise provided in paragraph (e), the board may authorize expenditures in an amount that varies from the percentage stated in paragraphs (a), (b) and (c) by not more than 2 percent for each use.

(e) If operation, maintenance and management expenses for parks, trails and recreational facilities do not equal or exceed 20 percent of the proceeds of the tax, including interest and other income, the balance of the proceeds of the tax, including interest and other income, authorized in paragraph (c) may be used for the acquisition, development, construction, equipping and improvement of parks, trails and recreational facilities in addition to the amount authorized in paragraph (b).

(f) At the end of a fiscal year, the proceeds of the tax, including interest and other income, not expended or otherwise obligated for the purposes set forth in this section must be carried forward and become part of the total proceeds of the tax, including interest and other income, available in the next fiscal year.

3. The board shall submit to the voters any proposal to change the previously approved uses for the proceeds of the tax, including interest and other income.

Sec. 8A.080 Required provisions of ordinance. An ordinance enacted pursuant to this article, except an ordinance authorizing the issuance of bonds or other securities, must include provisions in substance as follows:

1. A provision imposing a tax of not more than one-quarter of 1 percent of the gross receipts of any retailer from the sale of all personal property sold at retail, or stored, used or otherwise consumed in Carson City.

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

3. A provision that an amendment to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this article, automatically becomes a part of the ordinance imposing the tax.

4. A provision that the board shall contract before the effective date of the ordinance with the department to perform all the functions incident to the administration or operation of the tax in Carson City.

5. A provision that exempts from the tax the gross receipts from the sale of tangible personal property used for the performance of a written contract for the construction of an improvement to real property:

(a) That was entered into on or before the effective date of the tax; or

(b) For which a binding bid was submitted before that date if the bid was afterward accepted,

and pursuant to the terms of the contract or bid, the contract price or bid amount may not be adjusted to reflect the imposition of the tax.

Sec. 8A.090 Amendatory ordinances. An ordinance amending an ordinance enacted pursuant to this article, except an ordinance authorizing the issuance of bonds or other securities, must include a provision in substance that Carson City shall amend a contract made pursuant to subsection 4 of section 8A.080 by a contract made between the board and the department before the effective date of the amendatory ordinance, unless the board determines with the written concurrence of the department that no such amendment of the contract is needed.

Sec. 8A.100 Payment of proceeds of tax to department; distribution of proceeds.

1. All fees, taxes, interest and penalties imposed and all amounts of a tax required to be paid to Carson City pursuant to this article 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 a percentage of all fees, taxes, interest and penalties collected pursuant to this article during the preceding month as compensation to the state for the cost of collecting the tax. The percentage to be transferred pursuant to this paragraph must be the same percentage as the percentage of proceeds transferred pursuant to paragraph (a) of subsection 3 of NRS 374.785 but the percentage must be applied to the proceeds collected pursuant to this article only.

(b) Determine the amount equal to all fees, taxes, interest and penalties collected in or for Carson City pursuant to this article during the preceding month, less the amount transferred to the state general fund pursuant to paragraph (a).

(c) Transfer the amount determined pursuant to paragraph (b) to the intergovernmental fund and remit the money to the treasurer for Carson City.

Sec. 8A.110 Redistribution of proceeds of tax by department. The department may redistribute any tax proceeds, interest or penalty collected pursuant to this article which is determined to be improperly distributed, 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.

Sec. 8A.120 Creation of fund for use of proceeds from tax.

1. The treasurer for Carson City shall deposit money received from the state controller pursuant to paragraph (c) of section 8A.100 into the treasury of Carson City for credit to the fund created for the use of the proceeds from the tax authorized by this article.

2. The fund of Carson City created for the use of the proceeds from the tax authorized by this article must be accounted for as a separate fund and not as a part of any other fund.

Sec. 8A.130 Use of proceeds of tax; issuance of bonds and other securities.

1. Money for the acquisition, development, construction, equipping, operation, maintenance, improvement and management of open spaces, parks, trails and recreational facilities located within Carson City may be obtained:

(a) By the issuance of bonds and other securities as provided in subsection 2, subject to any pledges, liens and other contractual limitations made pursuant to this article;

(b) By direct distribution from the fund created pursuant to section 8A.120; or

(c) By both the issuance of such securities and by direct distribution, as the board may determine appropriate.

2. The board may, after the enactment of the ordinance imposing the tax, from time to time issue bonds and other securities, which are general or special obligations of Carson City and that may be secured as to principal and interest by a pledge of the proceeds from the tax authorized by this article.

3. An ordinance authorizing the issuance of such a bond or other security must describe the purpose for which the bond or other security is issued.

Sec. 8A.140 Types of securities; pledged revenue.

1. For the acquisition, development, construction, equipping, operation, maintenance, improvement and management of open spaces, parks, trails and recreational facilities authorized by this article, the board may issue:

(a) General obligation bonds;

(b) General obligation bonds for which payment is additionally secured by a pledge of the proceeds of the tax imposed pursuant to this article, and if so determined by the board, further secured by a pledge of the gross or net revenues derived from the operation of the recreational facilities, and any other project of the city which produces income, or from any license fees or other excise taxes imposed for revenue by the city, or otherwise, as may be legally made available for payment of the bonds;

(c) Revenue bonds for which payment is solely secured by a pledge of the proceeds of the tax imposed pursuant to this article, and if so determined by the board, further secured by a pledge of the gross or net revenues derived from the operation of the recreational facilities, and any other project of the city which produces income, or from any license fees or other excise taxes imposed for revenue by the city, or otherwise, as may be legally made available for payment of the bonds; and

(d) Medium-term obligations pursuant to NRS 350.085 to 350.095, inclusive.

2. Money pledged to the payment of bonds or other securities pursuant to subsection 1 may be treated for the purposes of subsection 3 of NRS 350.020 as pledged revenue for the uses authorized by this article.

Sec. 8A.150 Impairment of obligations prohibited. The board shall not repeal or amend or otherwise directly or indirectly modify the ordinance imposing the tax authorized by this article in such a manner as to impair an outstanding bond issued pursuant to this article, or other obligations incurred pursuant to this article, until all obligations for which revenue from an ordinance have been pledged or otherwise made payable from such revenue pursuant to this article have been discharged in full or provision for full payment and redemption has been made.

Sec. 8A.160 Department may act for Carson City in certain actions. In a proceeding arising from an ordinance imposing a tax pursuant to this article, the department may act for and on behalf of Carson City.

Sec. 8A.170 Construction of article.

1. The powers conferred by this article are in addition and supplemental to, and not in substitution for, the powers conferred by any other law and the limitations imposed by this article do not affect the powers conferred by any other law.

2. This article must not be construed to prevent the exercise of any power granted by any other law to Carson City or any officer, agent or employee of the city.

3. This article must not be construed to repeal or otherwise affect any other law or part thereof.

4. This article is intended to provide a separate method of accomplishing the objectives of the article but not an exclusive method.

Sec. 3. This act becomes effective upon passage and approval.