SUMMARY--Authorizes imposition of certain taxes for certain projects related to infrastructure. (BDR 32-1485)
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 counties to impose sales and use taxes for infrastructure; authorizing Washoe County to impose a tax on the rental of transient lodging for railroad grade separation projects under certain circumstances; authorizing certain cities and the Las Vegas Valley Water District to impose an excise tax on the use of water for water facilities; requiring the legislative auditor to conduct a performance audit of the Southern Nevada Water Authority; 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 Title 32 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 18, inclusive, of this act.
Sec. 2 As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 6, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3 "Solid waste" has the meaning ascribed to it in NRS 444.490.
Sec. 4 "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.
Sec. 5 "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.
Sec. 6 "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.
Sec. 7. 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 section 8 of this act.
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 section 14 of this act.
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 60 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 400,000 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,
whichever occurs earlier.
4. The board of county commissioners in a county whose population is 400,000 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.
5. 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 400,000 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.
6. Before enacting an ordinance pursuant to this chapter, the board of county commissioners of a county whose population is less than 400,000 or a county whose population is 400,000 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 section 14 of this act. 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 5. The plan must be approved by the board of county commissioners at a public hearing. Subject to the provisions of subsection 7, 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 section 14 of this act, 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.
7. 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.
Sec. 8. 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 400,000, one-eighth of 1 percent; or
(b) In all other counties, one-quarter of 1 percent,
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 exempts from the tax or any increase in the tax the gross receipts from 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,
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.
Sec. 9. 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 a percentage 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. 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 chapter only.
(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).
(c) Transfer the amount determined for each county to the intergovernmental fund and remit the money:
(1) In each county whose population is 400,000 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 400,000 or each county whose population is 400,000 or more and in which no water authority exists, to the county treasurer.
Sec. 10. The department may redistribute any fee, tax, penalty and interest to:
1. A county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists; or
2. The water authority in a county whose population is 400,000 or more and in which a water authority exists,
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.
Sec. 11. An ordinance amending the ordinance enacted pursuant to section 7 of this act must include a provision in substance that the county shall amend the contract made pursuant to subsection 5 of section 8 of this act 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.
Sec. 12. 1. In a county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists, the county treasurer shall deposit the money received from the state controller pursuant to section 9 of this act 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 6 of section 7 must be accounted for separately in the fund.
2. In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall deposit the money received from the state controller pursuant to section 9 of this act 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.
Sec. 13. 1. In a county whose population is 400,000 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.
Sec. 14. The money in the infrastructure fund, including interest and any other income from the fund:
1. In a county whose population is 400,000 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 section 13 of this act 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 such a 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, 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
(c) Any combination of those purposes.
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 6 of section 7 of this act.
2. In a county whose population is 100,000 or more but less than 400,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to subsection 6 of section 7 of this act for:
(a) The acquisition, establishment, construction or expansion of:
(1) Projects for the management of flood plains 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); or
(c) 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 6 of section 7 of this act for:
(a) The acquisition, establishment, construction, improvement or equipping of:
(1) Water facilities; or
(2) Wastewater facilities;
(b) The acquisition, establishment, construction or expansion of:
(1) Projects for the management of flood plains or the prevention of floods; or
(2) Facilities for the disposal of solid waste;
(c) The construction or renovation of facilities for schools;
(d) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects described in paragraphs (a), (b) and (c); or
(e) Any combination of those purposes.
Sec. 15. 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 400,000 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 400,000 or of a county whose population is 400,000 or more and in which no water authority exists may, after the enactment of an ordinance imposing a tax for infrastructure as authorized by section 7 of this act, 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 400,000 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 400,000 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,
whichever occurs earlier.
Sec. 16. 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.
Sec. 17. If a water authority in a county whose population is 400,000 or more has entered into an interlocal agreement to provide a distribution from the infrastructure fund pursuant to section 13 of this act 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 section 13 of this act;
2. Each project for which the money was distributed; and
3. The status of each project for which the money was distributed.
Sec. 18. 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.
Sec. 19. Chapter 244 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In addition to all other taxes imposed on the revenue from the rental of transient lodging, a board of county commissioners in a county whose population is 100,000 or more but less than 400,000 may by ordinance, but not as in a case of emergency, impose a tax at the rate of not more than 1 percent of the gross receipts from the rental of transient lodging throughout the county, including its incorporated cities, upon all persons in the business of providing lodging.
2. The ordinance imposing the tax must include all the matters required by NRS 244.3352 for the mandatory tax, must be administered in the same manner, and imposes the same liabilities, except:
(a) Collection of the tax imposed pursuant to this section must not commence earlier than the first day of the second calendar month after adoption of the ordinance imposing the tax; and
(b) The governmental entity collecting the tax must transfer all collections to the county and may not retain any part of the tax as a collection or administrative fee.
3. The proceeds of the tax and any applicable penalty or interest must be retained by the county and used for the payment of principal and interest on notes, bonds or other obligations issued by the county to fund the acquisition, establishment, construction or expansion of one or more railroad grade separation projects.
Sec. 20. NRS 244.3359 is hereby amended to read as follows:
244.33591. A county whose population is 400,000 or more shall not impose a new tax on the rental of transient lodging or increase the rate of an existing tax on the rental of transient lodging after March 25, 1991, except pursuant to NRS 244.3351.
2. A county whose population is 100,000 or more but less than 400,000 shall not impose a new tax on the rental of transient lodging or increase the rate of an existing tax on the rental of transient lodging after March 25, 1991 [.] , except pursuant to section 19 of this act.
3. The legislature hereby declares that the limitation imposed by subsection 2 will not be repealed or amended except to allow the imposition of [an] :
(a) An increase in such a tax for the promotion of tourism or for the construction or operation of tourism facilities by a convention and visitors authority [.] ; and
(b) A new tax for the acquisition, establishment, construction or expansion of railroad grade separation projects.
Sec. 21. Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In a county whose population is 400,000 or more, the governing body of a city that owns a municipal water system may, if requested by a water authority, impose an excise tax on the use of water in an amount sufficient to ensure the payment, wholly or in part, of obligations incurred by the water authority to acquire, establish, construct, improve or equip, or any combination thereof, a water facility. The tax must be imposed by ordinance on customers of the municipal water system that are capable of using or benefiting from the water facility financed, wholly or in part, with the proceeds of the tax.
2. An excise tax imposed pursuant to subsection 1 must be levied at different rates for different classes of customers and must take into account differences in the amount of water used or estimated to be used and the size of the connection.
3. The ordinance imposing the tax must provide:
(a) The rate or rates of the tax, which must not exceed one-quarter of 1 percent of the monthly water bill of customers of all residential classes and 5 percent of the monthly water bill of customers of all commercial classes and any other class;
(b) The procedure for collection of the tax;
(c) The duration of the tax; and
(d) The rate of interest that will be charged on late payments.
4. Late payments of the tax must bear interest at a rate not exceeding 1 percent per month, or fraction thereof. The tax due is a perpetual lien against the property served by the water on whose use the tax is imposed until the tax and any interest that may accrue thereon are paid. Collection of the tax may be enforced in any manner authorized by law for the collection of unpaid water bills. In addition to all other methods available to enforce payment of the tax, the city, by ordinance, may provide that it will be collected in the same manner as delinquent taxes are collected pursuant to NRS 268.043 for sewerage charges.
5. Subject to the provisions of this subsection, the governing body of the city may reduce the amount of the tax imposed pursuant to this section as the obligations of the city and the water authority allow. No ordinance imposing a tax which is enacted pursuant to this section 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 section until those bonds or other obligations have been discharged in full.
6. The governing body of the city shall review the necessity for the continued imposition of the tax authorized pursuant to this section at least once every 10 years.
7. As used in this section:
(a) "Water facility" means a facility 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.
(b) "Water authority" means a water authority organized as a public agency or entity created by cooperative agreement pursuant to chapter 277 of NRS whose members at the time of formation include 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.
Sec. 22. Chapter 167, Statutes of Nevada 1947, as last amended by chapter 631, Statutes of Nevada 1993, at page 2643, is hereby amended by adding a new section to be designated as section 28, immediately following section 27, to read as follows:
Sec. 28. 1. At the request of the Southern Nevada Water Authority, to pay all or any part of the cost to acquire, establish, construct, improve or equip, or any combination thereof, one or more water facilities, the board of directors of the district may impose an excise tax on the use of water in an amount sufficient to ensure the payment, wholly or in part, of obligations incurred by the Southern Nevada Water Authority. The tax must be imposed as a rate or charge pursuant to the procedures for adopting a schedule of rates and charges set forth in section 9.2 on customers of the water system of the district that are capable of using or benefiting from the water facilities financed, wholly or in part, with the proceeds of the tax.
2. An excise tax imposed pursuant to subsection 1 must be levied at different rates for different classes of customers and must take into account differences in the amount of water used or estimated to be used and the size of the connection.
3. The schedule imposing the rate or charge must provide:
(a) The amount of the rate or charge, which must not exceed one-quarter of 1 percent of the monthly water bill of customers of all residential classes and 5 percent of the monthly water bill of customers of all commercial classes and any other class;
(b) The procedure for collection of the rate or charge;
(c) The duration of the rate or charge; and
(d) The rate of interest that will be charged on late payments.
4. Late payments of the tax must bear interest at a rate not exceeding 1 percent per month, or fraction thereof. The tax due is a perpetual lien against the property served by the water on whose use the tax is imposed until the tax and any interest that may accrue thereon are paid. Collection of the tax may be enforced in any manner authorized by law for the collection of unpaid water bills. In addition to all other methods available to enforce payment of the tax, the district may provide that it will be collected in the same manner as delinquent taxes are collected pursuant to NRS 268.043 for sewerage charges.
5. Subject to the provisions of this subsection, the board of directors of the district may reduce the amount of the tax imposed pursuant to this section as the obligations of the district or the water authority allow. The board of directors of the district shall not repeal or amend or otherwise directly or indirectly modify the tax 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 imposed pursuant to this section until those bonds or other obligations have been discharged in full.
6. The board of directors of the district shall review the necessity for the continued imposition of the tax authorized pursuant to this section at least once every 10 years.
7. As used in this section, "water facility" has the meaning ascribed to "water project" in paragraph (b) of subsection 6 of section 27.
Sec. 23. The legislature hereby finds and declares that:
1. The increased use of the railroad lines in and through the urban areas of Washoe County has caused:
(a) Extensive traffic problems for the drivers of private automobiles as well as commercial vehicles who need reasonable access to these urban areas on a daily basis;
(b) Serious difficulties for emergency vehicles including fire-fighting equipment as well as ambulances which need immediate access to all portions of the county; and
(c) Economic disadvantages for businesses located in both the urban and nonurban areas of the county.
2. A general law cannot be made applicable to the problem addressed by section 24 of this act 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 Washoe County related to the increased use of the railroad lines in and through the urban areas of the county.
Sec. 24. 1. The board of county commissioners of Washoe County may by ordinance, but not as in a case of emergency, impose a tax upon the retailers at the rate of not more than one-eighth of 1 percent 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 if the board:
(a) Imposes a tax on the rental of transient lodging pursuant to section 19 of this act in the maximum amount allowed by that section; and
(b) Receives a written commitment from one or more other sources for the expenditure of not less than one-half of the total cost of a project for the acquisition, establishment, construction or expansion of railroad grade separation projects in Washoe County.
2. An ordinance enacted pursuant to subsection 1 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.
3. An ordinance enacted pursuant to subsection 1 must specify the date on which the tax must first be imposed which must occur on the first day of the first month of the next calendar quarter that is at least 60 days after the date on which a two-thirds majority of the board of county commissioners approved the question.
4. An ordinance enacted pursuant to subsection 1 must include provisions in substance as follows:
(a) Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.
(b) A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this section, automatically become a part of an ordinance enacted pursuant to subsection 1.
(c) A provision stating the specific purpose for which the proceeds of the tax must be expended.
(d) A provision that the county shall contract before the effective date of the ordinance with the department of taxation to perform all functions incident to the administration or operation of the tax in the county.
(e) A provision that exempts from the tax the gross receipts from 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:
(1) Entered into on or before the effective date of the tax; or
(2) For the construction of an improvement to real property for which a binding bid was submitted before the effective date of the tax if the bid was afterward accepted,
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.
5. No ordinance imposing a tax which is enacted pursuant to subsection 1 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 subsection 1 until those bonds or other obligations have been discharged in full.
6. All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the county pursuant to this section must be paid to the department of taxation in the form of remittances payable to the department of taxation.
7. The department of taxation shall deposit the payments with the state treasurer for credit to the sales and use tax account in the state general fund.
8. The state controller, acting upon the collection data furnished by the department of taxation, 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 section during the preceding month as compensation to the state for the cost of collecting the taxes. 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 section only.
(b) Determine for the county an amount of money equal to any fees, taxes, interest and penalties collected in or for the county pursuant to this section during the preceding month, less the amount transferred to the state general fund pursuant to paragraph (a).
(c) Transfer the amount determined for the county to the intergovernmental fund and remit the money to the county treasurer.
9. The county treasurer shall deposit the money received pursuant to subsection 8 in the county treasury for credit to a fund to be known as the railroad grade separation projects fund. The railroad grade separation projects fund must be accounted for as a separate fund and not as a part of any other fund.
10. The money in the railroad grade separation projects fund, including interest and any other income from the fund must only be expended by the board of county commissioners for the payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of the acquisition, establishment, construction or expansion of one or more railroad grade separation projects.
Sec. 25. 1. The legislative auditor shall:
(a) Conduct a performance audit of the Southern Nevada Water Authority;
(b) Prepare a final written report of the audit before January 18, 1999;
(c) Present the final written report to the senate standing committee on taxation and assembly standing committee on taxation of the 70th session of the Nevada legislature; and
(d) After presenting the final written report in accordance with paragraph (c), present the final written report to the legislative commission and the audit subcommittee of the legislative commission.
2. To the extent that the provisions of NRS 218.737 to 218.890, inclusive, are consistent with the requirements of this section, those provisions apply to the audit conducted pursuant to this section. For the purposes of this subsection, the Southern Nevada Water Authority shall be deemed to be an agency of the state.
3. Upon the request of the legislative auditor or his authorized representative, the officers and employees of each member of the Southern Nevada Water Authority shall make available to the legislative auditor any of their books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise and irrespective of their form or location, which the legislative auditor deems necessary to conduct the audit required by this section.
4. The Southern Nevada Water Authority shall, within 6 months after the period for submission of plans pursuant to paragraph (c) of subsection 1 of NRS 218.8235, submit to the legislative auditor a report specifying the extent to which the recommendations of the legislative auditor have been carried out, the extent to which the recommendations have not been carried out and the reasons for any failure to carry out the recommendations.
Sec. 26. 1. Upon the request of the legislative auditor, the Southern Nevada Water Authority shall transfer to the audit division of the legislative counsel bureau the sum of $120,000 to carry out the provisions of section 25 of this act.
2. Any remaining balance of the sum transferred pursuant to subsection 1 must not be committed for expenditure after January 18, 1999, and must be transferred to the Southern Nevada Water Authority as soon as all payments of money committed have been made.
Sec. 27. If the Southern Nevada Water Authority receives from the state controller, pursuant to section 9 of this act, any proceeds of a tax imposed pursuant to sections 7 and 8 of this act, the Southern Nevada Water Authority shall:
1. Hold a public hearing 10 years after the date the tax was first imposed.
2. Provide notice of the time and place of the public hearing in the manner set forth in subsection 5 of section 7 of this act.
3. At the public hearing, present a report of its expenditure of the proceeds of the tax and the status of any projects for which those proceeds are being or have been expended.
Sec. 28. This act becomes effective upon passage and approval.