SUMMARY--Authorizes imposition of sales and use tax for construction of hospital in Elko County. (BDR S-1159)
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 imposition, upon approval of the voters, of a sales and use tax for constructing and equipping a hospital in Elko County; 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 hereby finds and declares that this special act is necessary because:
1. The quality of health care in this state often depends upon the availability of modern hospital facilities in the areas where residents live and work;
2. Modern hospital facilities are essential to maintaining and enhancing the quality of life in Nevada;
3. Elko County is in need of modern hospital facilities;
4. The financing of modern hospital facilities in Elko County presents atypical problems because of the geographical isolation of the residents of the county and the unique economy of the region; 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 Elko County related to the need to provide a hospital for the residents of the county.
Sec. 2. As used in this act, unless the context otherwise requires:
1. "Board" means the Board of County Commissioners of Elko County.
2. "Construction" includes the acquisition of land, construction of buildings and all appurtenances related thereto, equipping of a facility and landscaping of the site.
3. "Department" means the Department of Taxation.
Sec. 3. 1. The board may enact an ordinance imposing a tax for the construction of a hospital pursuant to section 4 of this act.
2. A tax so imposed may be collected for not more than 4 years after the date upon which it is first imposed. The ending date of the tax must be specified in the ordinance.
3. An ordinance enacted pursuant to this act may not become effective before a question concerning the imposition of the tax is approved by a majority of the registered voters of Elko County voting upon the question. The board may submit the question to the voters at a special election held at the same time and places as a municipal election or at a general election. The board shall also submit to the voters at such a special or general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax.
4. Any ordinance enacted pursuant to this section must 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 not be earlier than the first day of the second calendar month following the approval of the question by the voters.
Sec. 4. Except as otherwise provided in section 12 of this act, any ordinance adopted pursuant to this act, except an ordinance authorizing the issuance of bonds or other securities, must include provisions in substance as follows:
1. A provision imposing a tax upon retailers at the rate of not more than 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 Elko 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 act, automatically become a part of an ordinance imposing the taxes.
4. A provision that the board shall contract before the effective date of the taxing ordinance with the department to perform all functions incident to the administration or operation of the tax in the county.
5. 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 for the construction of an improvement to real property, entered into on or before the effective date of the tax or the increase in the tax, or for which a binding bid was submitted before that date 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. 5.Any ordinance amending the taxing ordinance must include a provision in substance that the county shall amend the contract made pursuant to subsection 4 of section 4 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. 6. 1. All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to Elko County pursuant to the taxing ordinance and this act 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 act 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 act only.
(b) Determine the amount equal to all fees, taxes, interest and penalties collected in or for Elko County pursuant to this act 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 County Treasurer of Elko County.
Sec. 7. The department may redistribute any fee, tax, penalty and interest to the county 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. 8. 1. The County Treasurer shall deposit the money received from the State Controller pursuant to section 6 of this act in the County Treasury for credit to a fund to be known as the Fund for the Hospital Tax.
2. The Fund for the Hospital Tax must be accounted for as a separate fund and not as a part of any other fund and all interest and other income earned on the money in the fund must be deposited in the fund.
Sec. 9.1. The board may appropriate money in the Fund for the Hospital Tax for the construction of a county hospital.
2. The board may draw money out of the Fund for the Hospital Tax only for:
(a) Acquiring the land on which to construct a hospital, constructing the hospital and all appurtenances related thereto, equipping the hospital and landscaping the site of the hospital;
(b) Paying the 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.
Sec. 10.1. Money for the construction of a hospital located within Elko County 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 act;
(b) By direct distribution from the Fund for the Hospital Tax; 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 Elko County and that may be secured as to principal and interest by a pledge authorized by this act of the proceeds from the tax.
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. 11. 1. For the construction of a hospital authorized by this act, 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 act, and if so determined by the board, further secured by a pledge of the gross or net revenues derived from the operation of the hospital and any other project of the county which produces income or from any license fees or other excise taxes imposed for revenue by the county, 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 taxes imposed pursuant to this act, and if so determined by the board, further secured by a pledge of the gross or net revenues derived from the operation of the hospital and any other project of the county which produces income or from any license fees or other excise taxes imposed for revenue by the county, 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 act.
Sec. 12. The board shall not repeal or amend or otherwise directly or indirectly modify the ordinance imposing the tax authorized by this act in such a manner as to impair an outstanding bond issued pursuant to this act, or other obligations incurred pursuant to this act, until all obligations for which revenue from an ordinance have been pledged or otherwise made payable from such revenue pursuant to this act have been discharged in full or provision for full payment and redemption has been made.
Sec. 13. 1. Subject to the provisions of subsection 2, the board may gradually reduce the amount of the tax imposed pursuant to this act.
2. No such taxing ordinance may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds issued pursuant to this act, or other obligations incurred pursuant to this act, until all obligations, for which revenues from the ordinance have been pledged or otherwise made payable from such revenues pursuant to this act, have been discharged in full.
Sec. 14. In a proceeding arising from an ordinance imposing a tax pursuant to this act, the Department of Taxation may act for and on behalf of Elko County.
Sec. 15. 1. The powers conferred by this act are in addition and supplemental to and not in substitution for the powers conferred by any other law, and the limitations imposed by this act do not affect the powers conferred by any other law.
2. This act must not be construed to prevent the exercise of any power granted by any other law to Elko County or any officer, agent or employee of the county.
3. This act must not be construed to repeal or otherwise affect any other law or part thereof.
4. This act is intended to provide a separate method of accomplishing the objectives of the act, but not an exclusive method.
Sec. 16. If any provision of this act, or the application thereof, to any person, thing or circumstance is held invalid, such invalidity must not affect the provisions of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are hereby declared to be severable.
Sec. 17. The board may submit the question concerning the imposition of the tax authorized by this act for approval of the voters of Elko County at a special election held at the same time and places as a municipal election held in the county. If the question is so submitted, the board shall appropriate an amount sufficient to defray the cost of holding the election in precincts outside any incorporated city and any additional cost incurred in submitting the question in precincts inside any incorporated city.
Sec. 18. This act becomes effective upon passage and approval.