Assembly Bill No. 648-Committee on Taxation

(On Behalf of the Nevada Association of Counties)

June 25, 1997
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Referred to Committee on Taxation

SUMMARY--Revises procedure for apportionment of tax revenue received by county treasurer. (BDR 32-536)

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 local governmental finances; revising the procedure for the apportionment of tax revenue received by a county treasurer; authorizing a county treasurer to deduct certain expenses related to collecting, investing and apportioning tax revenue under certain circumstances; and providing other matters properly relating thereto.

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

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Section 1 Chapter 361 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2 As used in sections 3 and 4 of this act, "costs" means the expenses directly related to collecting, investing and apportioning the money received by the county treasurer pursuant to NRS 361.755, including, but not limited to:
1. The wages and benefits of;
2. The supplies used and the services provided by; and
3. The reasonable depreciation allowances for equipment used by,
the county employees who are involved in collecting, investing and apportioning that money.
Sec. 3 1. A county treasurer may deduct the costs of collecting, investing and apportioning the money received pursuant to NRS 361.755 that are authorized by the executive director pursuant to subsection 3. The costs deducted from each fund that receives an apportionment must be in the same proportion that each apportionment bears to the total amount apportioned to all of the funds.
2. A county treasurer who wishes to deduct the costs described in subsection 1 must, not later than June 1 of each year, submit to the executive director an estimate of those costs for the next fiscal year. The estimate must include:
(a) An explanation of the manner in which the estimate was made;
(b) The factors upon which the estimate was based; and
(c) Any other information the executive director determines is necessary to make a determination of those costs.
3. The executive director shall review the estimate provided by the county treasurer and make a determination not later than July 1 concerning the amount of the costs, if any, that may be deducted from the apportionment made by the county treasurer for the fiscal year beginning July 1.
4. The amount of the costs authorized by the executive director that may be deducted pursuant to subsection 3 must be deposited in the general fund of the county.
Sec. 4 1. If the county treasurer in a county whose population is less than 100,000:
(a) Apportioned the money in the account for tax proceeds for each month in the fiscal year preceding the year for which the apportionment will be made pursuant to NRS 361.755; and
(b) Will apportion the money in the account for tax proceeds for each month during the present fiscal year,
the funds that are entitled to receive money from the account for tax proceeds are not entitled to receive the interest earned on the money collected, invested and apportioned by the county treasurer.
2. The county treasurer in a county whose population is less than 100,000 who has apportioned the money in the account for tax proceeds for each month in the fiscal year preceding the year for which the apportionment will be made pursuant to NRS 361.755 may not deduct the cost of collecting, investing and apportioning the money in the account for tax proceeds from the money apportioned pursuant to NRS 361.755.
Sec. 5 NRS 361.755 is hereby amended to read as follows:
361.755 1. At least once each quarter and at such intervals as may be required by the board of county commissioners, the county treasurer [must] shall apportion all the money , including any interest earned on that money, that [shall have come into his hands] he has received as ex officio tax receiver since the last apportionment into several funds, as provided by law, and [he shall] make out a statement of the [same] apportionment under oath and transmit the statement to the county auditor. The county auditor shall file the statement in his office.
2. A local government that receives an apportionment from the county treasurer may not submit a claim for interest earned in a prior fiscal year on the money apportioned, unless the claim is based solely upon an error in the calculation of the money apportioned in that prior fiscal year.
Sec. 6 NRS 387.225 is hereby repealed.
Sec. 7 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. 8 This act becomes effective on July 1, 1997.

TEXT OF REPEALED SECTION

387.225 Money for schools to be received and disbursed by tax collector or county treasurer without fee. No tax collector or county treasurer shall receive any fees or compensation whatever for collecting, receiving, keeping, transporting or disbursing any public school moneys.

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