Assembly Bill No. 616-Committee On Government Affairs
June 18, 1997
____________
Referred to Committee on Government Affairs
SUMMARY--Imposes separate tax on lodging to support Lake Tahoe Convention and Visitor's Authority. (BDR S-1811)
FISCAL NOTE: Effect on Local Government: Yes.
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; creating the Lake Tahoe Convention and Visitor's Authority; imposing a separate tax on lodging within the Lake Tahoe basin in Douglas County; excluding that area from the operation of the Douglas County Lodgers Tax Law; 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 This act may be cited as the Lake Tahoe Convention and Visitor's Authority Act.
Sec. 2 The legislature hereby finds and declares that:
1. The necessity for this act results from:
(a) The declining revenues generated by tourism in the Lake Tahoe basin;
(b) The geographical location of the basin on the border of the densely populated State of California;
(c) The natural attractions of the basin and its availability to tourists; and
(d) The atypical financial problems of the basin resulting from the foregoing and other singular factors.
2. A general law cannot be made applicable to the purposes, objects, powers, rights, privileges, immunities, liabilities, duties and disabilities provided in this act because of the number of atypical factors and special conditions relating thereto.
3. The powers, rights, privileges, immunities, liabilities, duties and disabilities provided in this act comply in all respects with any requirement or limitation pertaining thereto and imposed by any constitutional provisions.
Sec. 3 Except as otherwise provided in this act or unless the context otherwise requires, terms used or referred to in this act have the meanings ascribed to them in the Local Government Securities Law but the definitions in sections 4 to 18, inclusive, of this act, unless the context otherwise requires, govern the construction of this act and of the local Government Securities Law as applied to the basin.
Sec. 4 "Authority" means the Lake Tahoe Convention and Visitor's Authority.
Sec. 5 "Basin" means the portion of Douglas County lying within the region to which the Tahoe Regional Planning Compact applies.
Sec. 6 "County" or "municipality" means Douglas County.
Sec. 7 "Governing body" means the board of county commissioners of Douglas County.
Sec. 8 "Gross taxable rent" means the total amount of rent paid for lodging.
Sec. 9 "Lodging" means the transaction of furnishing rooms or other accommodations by a vendor to a vendee who for a rent uses, possesses or has the right to use or possess any room or rooms or other units of accommodations in or at taxable premises.
Sec. 10 "Lodgings" means the rooms or other accommodations furnished by a vendor to a vendee by the taxable service of lodging.
Sec. 11 "Municipal" pertains to the county.
Sec. 12 "Occupancy tax" means the tax on lodging imposed by this act.
Sec. 13 "Pledged revenues" means the money designated by the governing body on behalf and in the name of the municipality in any bond ordinance or other proceeding pertaining to the issuance of municipal securities relating to a project which is derived by a municipality from any proceeds of any municipal occupancy tax levied under the Douglas County Lodgers Tax Law.
Sec. 14 "Property" means real property, personal property, mixed property or any other property or combination thereof.
Sec. 15 "Rent" means the consideration received by a vendor in money, credits, property or other consideration valued in money for lodgings subject to an occupancy tax authorized in this act.
Sec. 16 "Taxable premises" means a hotel, apartment, apartment hotel, apartment house, lodge, lodging house, rooming house, guest house, motor hotel, guest ranch, ranch resort, mobile home, motor court, auto court, auto camp, trailer court, trailer camp, trailer park, tourist camp, cabin or other premises used for lodging.
Sec. 17 "Vendee" means a natural person to whom lodgings are furnished in the performance of the taxable service of lodging.
Sec. 18 "Vendor" means a person furnishing lodgings in the performance of the taxable service of lodging.
Sec. 19 1. An occupancy tax of 7 percent is hereby imposed on vendors furnishing lodgings in the basin. The governing body shall administer the tax.
2. Every vendor who furnishes any lodgings within the basin is exercising a taxable privilege.
3. A vendor is not exempt from the occupancy tax because the taxable premises are at any time located in a political subdivision other than the municipality.
Sec. 20 1. The Lake Tahoe Convention and Visitor's Authority consisting of five members is hereby created.
2. The authority consists of:
(a) One member appointed by the board of county commissioners from among their number; and
(b) Four members who are representatives of the association of gaming establishments whose members collectively paid the largest amount of license fees to the state pursuant to NRS 463.370 in the county in the preceding year, chosen by the board from a list of nominees submitted by the association. If there is no such association, the four members so appointed must be representatives of gaming licensees.
3. The terms of members appointed pursuant to paragraph (b) of subsection 1 are 4 years. Each member appointed pursuant to paragraph (b) of subsection 1 may succeed himself only once.
4. If a member ceases to be engaged in the business of occupation which he was appointed to represent, he ceases to be a member, and another person engaged in that business or occupation must be appointed for the unexpired term.
Sec. 21 1. The municipality may provide that the occupancy tax does not apply:
(a) If a vendee:
(1) Has been a permanent resident of the taxable premises for a period of a least 28 consecutive days; or
(2) Enters into or has entered into a written agreement for lodgings at the taxable premises for a period of at least 28 consecutive days; or
(b) If the rent paid by a vendee is less than $2 a day;
(c) To lodging accommodations at religious, charitable, educational or philanthropic institutions, including accommodations at summer camps operated by such institutions;
(d) To clinics, hospitals or other medical facilities;
(e) To privately owned and operated convalescent homes or homes for the aged, infirm, indigent or chronically ill;
(f) If the taxable premises does not have at least three rooms or three other units of accommodations for lodging; or
(g) To all or any combination of events or conditions provided in paragraphs (a) to (f), inclusive.
2. The occupancy tax does not apply to lodgings at institutions of the Federal Government, the state, the municipality or any other public body.
Sec. 22 1. Every vendor providing lodging in the basin shall collect the tax and shall act as a trustee therefor.
2. Every vendor providing lodging in the basin shall remit the proceeds of the occupancy tax to the governing body.
3. The tax must be charged separately from the rent fixed by the vendor for the lodgings.
Sec. 23 1. The governing body may provide by ordinance that:
(a) The payment of the occupancy tax pertaining to any lodgings is secured by a lien on the real property at the taxable premises where the lodgings are located;
(b) Any such lien securing the payment of a delinquent occupancy tax may be enforced in the same manner as liens for general taxes ad valorem on real property; and
(c) A vendor is liable for the payment of the proceeds of any occupancy tax which pertains to the vendor's taxable premises and which the vendor failed to remit to the municipality, because of his failure to collect the tax or otherwise.
2. The governing body may provide for a civil penalty for any such failure in an amount of not more than 10 percent of the amount which was not remitted to the municipality but not less than $10.
3. The municipality may bring an action in the district court for the collection of any amounts due, including, without limitation, penalties thereon, interest on the unpaid principal at a rate of not exceeding 1 percent per month, the costs of collection and reasonable attorney's fees incurred in connection therewith, except for any tax being collected by the enforcement of a lien pursuant to subsection 1.
Sec. 24 The governing body may provide by ordinance for penalties of not exceeding 90 days' imprisonment nor a $300 fine for a failure by any person to pay the tax, to remit the proceeds thereof to the municipality or to account properly for any lodging and the tax proceeds pertaining thereto.
Sec. 25 The governing body may provide by ordinance, except as limited by or otherwise provided in this act:
1. A procedure for licensing each vendor and for refusing to license a vendor after an opportunity has been given to the vendor for a public hearing by the governing body concerning the issuance of the license;
2. The times, place and method for the payment of the tax to the municipality, the account and other records to be maintained in connection therewith, a procedure for making refunds and resolving disputes relating to the tax, including exemptions pertaining thereto, the preservation and destruction of records and their inspection and investigation, and, subject to the provisions of subsection 1 of section 23 of this act, a procedure of liens and sales to satisfy such liens; and
3. Other rights, privileges, powers and immunities and other details relating to any licenses, the collection of the occupancy tax and the remittance of the proceeds thereof to the municipality.
Sec. 26 1. The governing body shall pay from the proceeds of the occupancy tax the principal of, interest on and any prior redemption premiums due in connection with any securities issued by the county pursuant to the Douglas County Lodgers Tax Law which were secured with the proceeds of the occupancy tax collected pursuant to the Douglas County Lodgers Tax Law.
2. A portion of the taxes collected may be used to collect and administer the tax.
3. The remaining proceeds of the occupancy tax paid by vendors located in the basin must be remitted to the authority. The proceeds so remitted must be used exclusively for advertising, publicizing and promoting recreational facilities for the attraction of tourists and vacationers to the basin.
Sec. 27 Section 28 of the Douglas County Lodgers Tax Law, being chapter 639, Statutes of Nevada 1969, as amended by chapter 237, Statutes of Nevada 1987, at page 521, is hereby amended to read as follows:
Sec. 28. Authorization of tax.
1. The municipality may impose an occupancy tax for revenues by ordinance on lodging within the [municipality.] portion of the county lying outside the region to which the Tahoe Regional Planning Compact applies.
2. The occupancy tax shall not exceed 7 percent of the gross taxable rent. Any amount in excess of 5 percent must be used exclusively for advertising, publicizing and promoting the recreational facilities for the attraction of tourists and vacationers to the county.
3. Every vendor who is furnishing any lodgings within the municipality is exercising a taxable privilege.
4. A vendor is not exempt from the occupancy tax because the taxable premises are at any time located in [an incorporated city, incorporated town or other public body,] a political subdivision other than the municipality.