Referred to Concurrent Committees on
Taxation and Transportation
SUMMARY--Revises provisions relating to certain taxes on motor vehicle fuel and special fuel and use of certain sales and use taxes. (BDR 32-326)
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; revising the provisions governing the use of the proceeds from the county motor vehicle fuel tax in certain counties and certain sales and use taxes to allow use for maintenance and repair of roads; requiring each county and incorporated city to submit a list to the department of transportation setting forth each road or street maintained by the county or city; defining the term "construction, maintenance and repair" for the purposes of using the proceeds of certain taxes on motor vehicle fuel; 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. NRS 365.185 is hereby amended to read as follows:
365.185 1. In addition to any other tax provided for in this chapter, there [shall] must be levied an excise tax on gasoline.
2. This tax [shall] must be imposed and [shall increase up to a total of 4 cents per gallon,] will increase if the tax collected by the Federal Government pursuant to the provisions of 26 U.S.C. § 4081 [, is diminished] or any other tax collected by the Federal Government relating to gasoline is reduced or discontinued in whole or in part. The amount of the tax so imposed by this state [shall] must be equal to the amount by which the federal tax is reduced.
3. This tax [shall] must be accounted for by each dealer and [shall be] collected in the manner provided in this chapter. The tax [shall] must be paid to the department and delivered by the department to the state treasurer.
Sec. 3. NRS 365.550 is hereby amended to read as follows:
365.550 1. The receipts of the tax [as levied in] levied pursuant to NRS 365.180 must be allocated monthly by the department to the counties [upon] using the following formula:
(a) One-fourth in proportion to total area.
(b) One-fourth in proportion to population.
(c) One-fourth in proportion to road mileage and street mileage [(] of nonfederal aid primary roads . [).]
(d) One-fourth in proportion to vehicle miles of travel on [roads (] nonfederal aid primary roads . [).]
2. The amount [due] allocated to the counties under the formula must be remitted monthly. The state controller shall draw his warrants payable to the county treasurer of each of the several counties, and the state treasurer shall pay the warrants out of the proceeds of the tax levied [in] pursuant to NRS 365.180.
3. Of the money received by the counties [by reason of] pursuant to the provisions of this section:
(a) An amount equal to that part of the allocation which represents 1.25 cents of the tax per gallon must be used exclusively for the service and redemption of revenue bonds issued pursuant to chapter 373 of NRS, for the construction, maintenance and repair of county roads, and for the purchase of equipment for that [work,] construction, maintenance and repair, under the direction of the boards of county commissioners of the several counties, and must not be used to defray expenses of administration; and
(b) An amount equal to that part of the allocation which represents 2.35 cents of the tax per gallon must be allocated pursuant to the following formula:
(1) If there are no incorporated cities in the county, to the county; and
(2) If there is [one or more incorporated cities] at least one incorporated city in the county, to the county and any incorporated cities in the county pursuant to the formula set [out] forth for counties in subsection 1. For the purpose of applying the formula, the area of the county excludes the area included in any incorporated city.
4. The formula computations must be made as of July 1 of each year by the department, based on estimates which must be furnished by the department of transportation. The determination [so] made by the department is conclusive.
5. Each county and incorporated city shall, not later than January 1 of each year, submit a list to the department of transportation setting forth:
(a) Each road or street that is maintained by the county or city; and
(b) The beginning and ending points and the total mileage of each of those roads or streets.
Each county and incorporated city shall, at least 10 days before the list is submitted to the department of transportation, hold a public hearing to identify and determine the roads and streets maintained by the county or city.
6. As used in this section, "construction, maintenance and repair" includes the acquisition, operation or use of any material, equipment or facility that is used exclusively for the construction, maintenance or repair of a county or city road and is necessary for the safe and efficient use of that road, including, without limitation:
(a) Grades and regrades;
(b) Graveling, oiling, surfacing, macadamizing and paving;
(c) Sweeping, cleaning and sanding roads and removing snow from a road;
(d) Crosswalks and sidewalks;
(e) Culverts, catch basins, drains, sewers and manholes;
(f) Inlets and outlets;
(g) Retaining walls, bridges, overpasses, underpasses, tunnels and approaches;
(h) Artificial lights and lighting equipment, parkways, control of vegetation and sprinkling facilities;
(i) Rights of way;
(j) Grade and traffic separators;
(k) Fences, cattle guards and other devices to control access to a county or city road;
(l) Signs and devices for the control of traffic; and
(m) Facilities for personnel and the storage of equipment used to construct, maintain or repair a county or city road.
Sec. 1.5. NRS 365.560 is hereby amended to read as follows:
365.560 1. The receipts of the tax [as levied in NRS 365.190 shall] levied pursuant to NRS 365.190 must be allocated monthly by the department to the counties in which the [tax] payment of the tax originates.
2. [Such receipts shall] The receipts must be apportioned between the county, towns with town boards as organized under NRS 269.016 to 269.019, inclusive, and incorporated cities within the county from the general road fund of the county in the same ratio as the assessed valuation of property within the boundaries of [such] the towns or incorporated cities within the county bears to the total assessed valuation of property within the county, including property within the towns or incorporated cities.
3. [All such money so] Any money apportioned to a county [shall] pursuant to subsection 2 must be expended by the county solely for [the] :
(a) The service and redemption of revenue bonds issued pursuant to chapter 373 of NRS [, for the] ;
(b) The construction, maintenance and repair of the public highways of the county [and for the] ; and
(c) The purchase of equipment for [such work, and shall] that construction, maintenance and repair.
The money must not be used to defray the expenses of administration.
4. [All such money so] Any money apportioned to towns or incorporated cities [shall] pursuant to subsection 2 must be expended only upon the streets, alleys and public highways of [such] the town or city, other than state highways, under the direction and control of the governing body of the town or city.
5. As used in this section, "construction, maintenance and repair" has the meaning ascribed to it in NRS 365.550.
Sec. 1.7. NRS 366.195 is hereby amended to read as follows:
366.1951. In addition to any other tax provided for in this chapter, there [shall] must be levied an excise tax on special fuel.
2. This tax [shall] must be imposed and [shall increase up to a total of 4 cents per gallon,] will increase if the tax collected by the Federal Government, pursuant to the provisions of 26 U.S.C. § 4041 [, is diminished] or any other tax collected by the Federal Government relating to special fuel is reduced or discontinued in whole or in part. The amount of the tax so imposed by this state [shall] must be equal to the amount by which the federal tax is reduced.
Sec. 1.9. Chapter 373 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 10, inclusive, of this act.
Sec. 1 "Acquisition" or "acquire" means the opening, laying out, establishment, purchase, construction, securing, installation, reconstruction, lease, gift, grant from the United States of America, any agency, instrumentality or corporation thereof, the State of Nevada, any body corporate and politic therein, any corporation, or any person, the endowment, bequest, devise, condemnation, transfer, assignment, option to purchase, other contract, or other acquirement, or any combination thereof, of any project, or an interest therein, authorized by this chapter.
Sec. 2 "Board" means the board of county commissioners.
Sec. 3 "City" means an incorporated city.
Sec. 4 "Commission" means the regional transportation commission.
Sec. 5 "Cost of the project," or any phrase of similar import, means all or any part designated by the board of the cost of any project, or interest therein, being acquired, which cost, at the option of the board may include all or any part of the incidental costs pertaining to the project, including, without limitation, preliminary expenses advanced by the county from money available for use therefor or any other source, or advanced by any city with the approval of the county from money available therefor or from any other source, or advanced by the State of Nevada or the Federal Government, or any corporation, agency or instrumentality thereof, with the approval of the county, or any combination thereof, in the making of surveys, preliminary plans, estimates of costs, other preliminaries, the costs of appraising, printing, estimates, advice, contracting for the services of engineers, architects, financial consultants, attorneys at law, clerical help, other agents or employees, the costs of making, publishing, posting, mailing and otherwise giving any notice in connection with the project, the taking of options, the issuance of bonds and other securities, contingencies, the capitalization with bond proceeds of any interest on the bonds for any period not exceeding 1 year and of any reserves for the payment of the principal of an interest on the bonds, the filing or recordation of instruments, the costs of medium-term obligations, construction loans and other temporary loans of not exceeding 10 years appertaining to the project and of the incidental expenses incurred in connection with such financing or loans, and all other expenses necessary or desirable and appertaining to any project, as estimated or otherwise ascertained by the board.
Sec. 6 "Federal securities" means bills, certificates of indebtedness, notes, bonds or similar securities which are direct obligations of, or the principal and interest of which securities are unconditionally guaranteed by, the United States of America.
Sec. 7 "Improvement" or "improve" means the extension, widening, lengthening, betterment, alteration, reconstruction, surfacing, resurfacing or other major improvement, or any combination thereof, of any project, or an interest therein, authorized by this chapter. The term includes renovation, reconditioning, patching, general maintenance and other minor repairs.
Sec. 8 "Project" means:
1. In a county whose population is 35,000 or more, street and highway construction, including, without limitation, the acquisition and improvement of any street, avenue, boulevard, alley, highway or other public right of way used for any vehicular traffic, and including a sidewalk designed primarily for use by pedestrians, and also, including, without limitation, grades, regrades, gravel, oiling, surfacing, macadamizing, paving, crosswalks, sidewalks, pedestrian rights of way, driveway approaches, curb cuts, curbs, gutters, culverts, catch basins, drains, sewers, manholes, inlets, outlets, retaining walls, bridges, overpasses, tunnels, underpasses, approaches, sprinkling facilities, artificial lights and lighting equipment, parkways, grade separators, traffic separators, and traffic control equipment, and all appurtenances and incidentals, or any combination thereof, including, without limitation, the acquisition and improvement of all types of property therefor.
2. In a county whose population is less than 35,000, street and highway construction, maintenance or repair, or any combination thereof, including, without limitation, the acquisition, maintenance, repair and improvement of any street, avenue, boulevard, alley, highway or other public right of way used for any vehicular traffic, and including a sidewalk designed primarily for use by pedestrians, and also, including, without limitation, grades, regrades, gravel, oiling, surfacing, macadamizing, paving, crosswalks, sidewalks, pedestrian rights of way, driveway approaches, curb cuts, curbs, gutters, culverts, catch basins, drains, sewers, manholes, inlets, outlets, retaining walls, bridges, overpasses, tunnels, underpasses, approaches, sprinkling facilities, artificial lights and lighting equipment, parkways, grade separators, traffic separators, and traffic control equipment, and all appurtenances and incidentals, or any combination thereof, including, without limitation, the acquisition, maintenance, repair and improvement of all types of property therefor.
Sec. 9 "Town" means an unincorporated town.
Sec. 10 NRS 373.020 is hereby amended to read as follows:
373.020As used in this chapter, unless the context otherwise requires [:
1. "Acquisition" or "acquire" means the opening, laying out, establishment, purchase, construction, securing, installation, reconstruction, lease, gift, grant from the United States of America, any agency, instrumentality or corporation thereof, the State of Nevada, any body corporate and politic therein, any corporation, or any person, the endowment, bequest, devise, condemnation, transfer, assignment, option to purchase, other contract, or other acquirement (or any combination thereof) of any project, or an interest therein, authorized by this chapter.
2. "Board" means the board of county commissioners.
3. "City" means an incorporated city.
4. "Commission" means the regional transportation commission.
5. "Cost of the project," or any phrase of similar import, means all or any part designated by the board of the cost of any project, or interest therein, being acquired, which cost, at the option of the board may include all or any part of the incidental costs pertaining to the project, including, without limitation, preliminary expenses advanced by the county from money available for use therefor or any other source, or advanced by any city with the approval of the county from money available therefor or from any other source, or advanced by the State of Nevada or the Federal Government, or any corporation, agency or instrumentality thereof, with the approval of the county (or any combination thereof), in the making of surveys, preliminary plans, estimates of costs, other preliminaries, the costs of appraising, printing, estimates, advice, contracting for the services of engineers, architects, financial consultants, attorneys at law, clerical help, other agents or employees, the costs of making, publishing, posting, mailing and otherwise giving any notice in connection with the project, the taking of options, the issuance of bonds and other securities, contingencies, the capitalization with bond proceeds of any interest on the bonds for any period not exceeding 1 year and of any reserves for the payment of the principal of an interest on the bonds, the filing or recordation of instruments, the costs of medium-term obligations, construction loans and other temporary loans of not exceeding 10 years appertaining to the project and of the incidental expenses incurred in connection with such financing or loans, and all other expenses necessary or desirable and appertaining to any project, as estimated or otherwise ascertained by the board.
6. "Federal securities" means bills, certificates of indebtedness, notes, bonds or similar securities which are direct obligations of, or the principal and interest of which securities are unconditionally guaranteed by, the United States of America.
7. "Improvement" or "improve" means the extension, widening, lengthening, betterment, alteration, reconstruction, surfacing, resurfacing or other major improvement (or any combination thereof) of any project, or an interest therein, authorized by this chapter. The term does not include renovation, reconditioning, patching, general maintenance or other minor repair.
8. "Project" means street and highway construction, including, without limitation, the acquisition and improvement of any street, avenue, boulevard, alley, highway or other public right of way used for any vehicular traffic, and including a sidewalk designed primarily for use by pedestrians, and also including, without limitation, grades, regrades, gravel, oiling, surfacing, macadamizing, paving, crosswalks, sidewalks, pedestrian rights of way, driveway approaches, curb cuts, curbs, gutters, culverts, catch basins, drains, sewers, manholes, inlets, outlets, retaining walls, bridges, overpasses, tunnels, underpasses, approaches, sprinkling facilities, artificial lights and lighting equipment, parkways, grade separators, traffic separators, and traffic control equipment, and all appurtenances and incidentals, or any combination thereof, including, without limitation, the acquisition and improvement of all types of property therefor.
9. "Town" means an unincorporated town.] , the words and terms defined in sections 2 to 10, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 11 Chapter 377A of NRS is hereby amended by adding thereto the provisions set forth as sections 13 to 18, inclusive, of this act.
Sec. 12 "Board" means the board of county commissioners.
Sec. "Construction, maintenance and repair" includes the acquisition, operation or use of any material, equipment or facility that is used exclusively for the construction, maintenance or repair of a public road and is necessary for the safe and efficient use of the public road, including, without limitation:
1. Grades and regrades;
2. Graveling, oiling, surfacing, macadamizing and paving;
3. Sweeping, cleaning and sanding roads and removing snow from a public road;
4. Crosswalks and sidewalks;
5. Culverts, catch basins, drains, sewers and manholes;
6. Inlets and outlets;
7. Retaining walls, bridges, overpasses, underpasses, tunnels and approaches;
8. Artificial lights and lighting equipment, parkways, control of vegetation and sprinkling facilities;
9. Rights of way;
10. Grade and traffic separators;
11. Fences, cattle guards and other devices to control access to a public road;
12. Signs and devices for the control of traffic; and
13. Facilities for personnel and the storage of equipment used to construct, maintain or repair a public road.
Secs. 15 and 16. (Deleted by amendment.)
Sec. 17. "Public transit system" means a system employing any method of conveyance that is operated for public use and transports persons within a county.
Sec. 18. (Deleted by amendment.)
Sec. 19. NRS 377A.010 is hereby amended to read as follows:
377A.010 As used in this chapter, unless the context otherwise requires [:
1. "Board" means the board of county commissioners.
2. "Construction" of public roads includes repair and maintenance of public roads.
3. "Public roads" means paved roads which are constructed and maintained by a city or county to which access is not limited, and other projects related to the construction and maintenance of sidewalks, streets, avenues, boulevards, highways and other public rights of way used primarily for vehicular traffic, including, without limitation, overpass projects, street projects and underpass projects, as defined in NRS 244A.037, 244A.053 and 244A.055.
4. "Public transit system" means a system employing motor buses, rails or any other means of conveyance, by whatever type of power, operated for public use in the conveyance of persons, providing local transportation within a county.] , the words and terms defined in sections 13 to 18, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 20. NRS 377A.020 is hereby amended to read as follows:
377A.020 1. The board of county commissioners of any county may enact an ordinance imposing a tax for [public mass transportation and construction] a public transit system or for the construction, maintenance and repair of public roads , or both, pursuant to NRS 377A.030. The board of county commissioners of any county whose population is less than 400,000 may enact an ordinance imposing a tax to promote tourism pursuant to NRS 377A.030.
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 majority of the registered voters of the county voting upon the question which the board may submit to the voters at any general election. A county may combine the [question for mass transportation and] questions for a public transit system and for the construction, maintenance and repair of public roads with questions submitted pursuant to NRS 244.3351, 278.710, 365.203 or 371.045, or any combination thereof. The board shall also submit to the voters at a general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax.
3. 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. 21. NRS 377A.030 is hereby amended to read as follows:
377A.030 Except as otherwise provided in NRS 377A.110, any ordinance enacted under 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) For a tax to promote tourism, one-quarter of 1 percent; or
(b) For a tax [for public mass transportation and construction] to establish and maintain a public transit system or for the construction, maintenance and repair of public roads, or both, one-half 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 a 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 imposing the tax for public mass transportation and construction of public roads or the tax to promote tourism in the county.
4. 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.
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. 22. NRS 377A.070 is hereby amended to read as follows:
377A.070 1. The county treasurer shall deposit the money received from the state controller pursuant to NRS 377A.050 for [public mass transportation and construction] a public transit system or for the construction, maintenance and repair of public roads , or both, in the county treasury for credit to a fund to be known as the public transit fund.
2. The public transit fund must be accounted for as a separate fund and not as a part of any other fund.
Sec. 23. NRS 377A.080 is hereby amended to read as follows:
377A.080 1. In any county in which a tax for [public mass transportation and construction of public roads] a public transit system or for the construction, maintenance and repair of public roads, or both, has been imposed, the board shall by ordinance create a regional transportation commission pursuant to chapter 373 of NRS if one has not already been created under that chapter. Where a regional transportation commission has already been created under that chapter, that commission may also exercise the powers conferred by this section.
2. The regional transportation commission may:
(a) Appropriate money in the public transit fund accumulated by a county to provide a public transit system for that county if the system is included in a regional transportation plan adopted by the regional transportation commission;
(b) Appropriate money to provide transportation or to support agencies which are providing transportation for the elderly and persons with disabilities, if the services are consistent with the regional transportation plan;
(c) Provide for or perform all functions incident to the administration and operation of the public transit system, including the establishment of fares for the system; and
(d) Adopt regulations for the operation of systems or services provided by the commission and for systems or services financed by the commission and provided by an agency or a private contractor.
3. The commission may draw money out of the public transit fund only for:
(a) [Establishing and maintaining] The establishment and maintenance of a public transit system for the county and [supporting] for the support of other activities, services and programs related to transportation which are included in a regional transportation plan adopted by the commission;
(b) [Constructing, repairing and maintaining] The construction, maintenance and repair of public roads;
(c) [Payment] The payment of principal and interest on notes, bonds or other securities issued to provide funds for the cost of projects described in paragraphs (a) and (b); or
(d) Any combination of those purposes.
Sec. 24. NRS 377A.090 is hereby amended to read as follows:
377A.090 1. Money for the payment of the cost of establishing and maintaining a public transit system or for [constructing] the construction, maintenance and repair of public roads , or both, may be obtained by the issuance of bonds and other securities as provided in subsection 2 , [of 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 public transit fund, or may be obtained both by the issuance of such securities and by such direct distribution as the board may determine.
2. The board may, after the enactment of an ordinance imposing a tax for [public mass transportation and construction] a public transit system or for the construction, maintenance and repair of public roads , or both, as authorized by NRS 377A.020, 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 tax for [public mass transportation and construction] a public transit system or for the construction, maintenance and repair of public roads [.] , or both.
3. The ordinance authorizing the issuance of any bond or other security must describe the purpose for which it is issued.
Sec. 25. NRS 377A.100 is hereby amended to read as follows:
377A.100 1. Each ordinance providing for the issuance of any bond or security issued under this chapter payable from the receipts of the tax for [public mass transportation and construction] a public transit system or for the construction, maintenance and repair of public roads , or both, 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 upon the proceeds of any bond or security pending their application to defray the cost of establishing or operating a public transit system, or both tax proceeds and security proceeds, to secure the payment of any bond or security issued under 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. 26. NRS 377A.110 is hereby amended to read as follows:
377A.110 1. Subject to the provisions of subsection 2, the board may gradually reduce the amount of tax imposed pursuant to this chapter for [public mass transportation and construction] a public transit system or for the construction, maintenance and repair of public roads , or both, as revenue from the operation of the public transit system permits.
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 under this chapter, or other obligations incurred under this chapter, until all obligations, for which revenues from the ordinance have been pledged or otherwise made payable from such revenues pursuant to this chapter, have been discharged in full, but the board may at any time dissolve the regional transportation commission and provide that no further obligations be incurred thereafter.
Sec. 27. NRS 377A.140 is hereby amended to read as follows:
377A.140 1. Except as otherwise provided in subsection 2, a public transit system in a county whose population is 400,000 or more may, in addition to providing local transportation within the county and the services described in NRS 377A.130, provide:
(a) Programs to reduce or manage motor vehicle traffic; and
(b) Any other services for [public mass transportation] a public transit system which are requested by the general public,
if those additional services are included and described in a long-range plan adopted pursuant to 23 U.S.C. § 134 and 49 U.S.C. § 5303.
2. Before a regional transportation commission may provide for an on-call public [mass transportation] transit system in an area of the county, the commission must receive a determination from the public service commission of Nevada and the taxicab authority that:
(a) There are no common motor carriers of passengers who are authorized to provide on-call operations for transporting passengers in that area; or
(b) Although there are common motor carriers of passengers who are authorized to provide on-call operations for transporting passengers in the area, the common motor carriers of passengers do not wish to provide, or are not capable of providing, those operations.
3. As used in this section:
(a) "Common motor carrier of passengers" has the meaning ascribed to it in NRS 706.041.
(b) "On-call public [mass transportation"] transit system" means a system established to transport [by vehicle passengers who request such transportation on demand.] passengers only upon the request of a person who needs transportation.
Sec. 27.3. (Deleted by amendment.)
Sec. 27.5. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 28. This act becomes effective on July 1, 1997.