Assembly Bill No. 70-Committee on Government Affairs
(On Behalf of Clark County)
January 27, 1997
____________
Referred to Committee on Government Affairs
SUMMARY--Authorizes certain counties to organize urban taxing districts. (BDR 21-196)
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 local government; authorizing certain counties to organize urban taxing districts to consolidate the collection and distribution of taxes and the provision of common services in certain unincorporated towns within those counties; providing for the establishment of the revenue from taxes ad valorem and the basic ad valorem revenue for urban taxing districts; 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 269 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. The board of county commissioners of a county that has two or more unincorporated towns which:
(a) Were formed pursuant to the provisions of NRS 269.500 to 269.625, inclusive;
(b) Provide common services; and
(c) Are contiguous,
may by ordinance organize an urban taxing district for those unincorporated towns. The ordinance may also include within the urban taxing district that portion of a fire district created pursuant to NRS 244.2961 that is coterminous with the boundaries of the unincorporated towns included in the urban taxing district. If such a portion of a fire district is included in the urban taxing district, the board of county commissioners shall, by ordinance, remove from the boundaries of the fire district any area included in the urban taxing district. The provisions of this section do not apply to alter the boundaries of a fire district for the purposes of taxes levied for the repayment, when due, of the principal of and interest on bonds, notes or other indebtedness issued before July 1, 1997.
2. In the ordinance, the board shall identify:
(a) The unincorporated towns and, if applicable, the portion of the fire district to be included in the urban taxing district; and
(b) The common services provided by the unincorporated towns and, if applicable, by the fire district.
3. The effective date of an ordinance adopted pursuant to this section must be:
(a) February 1 of the fiscal year immediately following the fiscal year in which the ordinance is adopted if the ordinance is adopted on or after January 1; or
(b) July 1 of the fiscal year immediately following the fiscal year in which the ordinance is adopted if the ordinance is adopted on or before December 31.
Sec. 3. The board of county commissioners in any county that has created an urban taxing district pursuant to the provisions of section 2 of this act may adopt an ordinance to amend the boundaries of the urban taxing district to include property within the unincorporated area of the county for which the county provides the same common services identified in the ordinance creating the urban taxing district. The assessed valuation of property included in the urban taxing district pursuant to this section which is not contiguous to the boundaries of the urban taxing district at the time that property is included in the urban taxing district must not be considered in determining the basic ad valorem revenue of the urban taxing district for the purposes of NRS 377.057.
Sec. 4. NRS 269.505 is hereby amended to read as follows:
269.505 [Whenever] As used in NRS 269.500 to 269.625, inclusive, and sections 2 and 3 of this act, unless [a different meaning clearly appears from] the context [, the following] otherwise requires, the words and terms defined in NRS 269.510, 269.515 and 269.520 have the meanings ascribed to them in those sections.
Sec. 5. NRS 354.474 is hereby amended to read as follows:
354.474 1. Except as otherwise provided in subsections 2 and 3, the provisions of NRS 354.470 to 354.626, inclusive, apply to all local governments. For the purpose of NRS 354.470 to 354.626, inclusive:
(a) "Local government" means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, [and includes,] including, without limitation, counties, cities, towns, boards, school districts , urban taxing districts and other districts organized pursuant to chapters 244A, 309, 318, 379, 474, 541, 543 and 555 of NRS, NRS 450.550 to 450.700, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political subdivision.
[(b) "Local government"] The term does not include the Nevada rural housing authority.
(b) "Urban taxing district" means a district organized pursuant to section 2 of this act.
2. An irrigation district organized pursuant to chapter 539 of NRS shall fix rates and levy assessments as provided in NRS 539.667 to 539.683, inclusive. The levy of such assessments and the posting and publication of claims and annual financial statements as required by chapter 539 of NRS shall be deemed compliance with the budgeting, filing and publication requirements of NRS 354.470 to 354.626, inclusive, but any such irrigation district which levies an ad valorem tax shall comply with the filing and publication requirements of NRS 354.470 to 354.626, inclusive, in addition to the requirements of chapter 539 of NRS.
3. An electric light and power district created pursuant to chapter 318 of NRS shall be deemed to have fulfilled the requirements of NRS 354.470 to 354.626, inclusive, for a year in which the district does not issue bonds or levy an assessment if the district files with the department of taxation a copy of all documents relating to its budget for that year which the district submitted to the Rural Electrification Administration of the United States Department of Agriculture.
Sec. 6. NRS 354.59815 is hereby amended to read as follows:
354.59815 1. In addition to the allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811, the board of county commissioners may levy a tax ad valorem on all taxable property in the county at a rate not to exceed 5 cents per $100 of the assessed valuation of the county.
2. The board of county commissioners shall direct the county treasurer to distribute quarterly the proceeds of any tax levied pursuant to the provisions of subsection 1 among the county and the cities [and] , towns and urban taxing districts within that county in the proportion that the supplemental city-county relief tax distribution factor of each of those local governments for the 1990-1991 fiscal year bears to the sum of the supplemental city-county relief tax distribution factors of all of the local governments in the county for the 1990-1991 fiscal year.
3. The board of county commissioners shall not reduce the rate of any tax levied pursuant to the provisions of subsection 1 without the approval of each of the local governments that receives a portion of the tax, except that, if a local government declines to receive its portion of the tax in a particular year , the levy may be reduced by the amount that local government would have received.
Sec. 7. NRS 354.59817 is hereby amended to read as follows:
354.59817 1. In addition to the allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811, upon the approval of a majority of the registered voters of a county voting upon the question, the board of county commissioners may levy a tax ad valorem on all taxable property in the county at a rate not to exceed 15 cents per $100 of the assessed valuation of the county. A tax must not be levied pursuant to this section for more than 10 years.
2. The board of county commissioners shall direct the county treasurer to distribute quarterly the proceeds of any tax levied pursuant to the provisions of this section among the county and the cities [and] , towns and urban taxing districts within that county in the proportion that the supplemental city-county relief tax distribution factor of each of those local governments for the 1990-1991 fiscal year bears to the sum of the supplemental city-county relief tax distribution factors of all of the local governments in the county for the 1990-1991 fiscal year.
3. The board of county commissioners shall not reduce the rate of any tax levied pursuant to the provisions of this section without the approval of each of the local governments that receives a portion of the tax, except that, if a local government declines to receive its portion of the tax in a particular year the levy may be reduced by the amount that local government would have received.
4. The governing body of each local government that receives a portion of the revenue from the tax levied pursuant to this section shall establish a separate fund for capital projects for the purposes set forth in this section. All interest and income earned on the money in the fund must also be deposited in the fund. The money in the fund may only be used for:
(a) The purchase of capital assets , including land, improvements to land and major items of equipment;
(b) The construction or replacement of public works; and
(c) The renovation of existing governmental facilities, not including normal recurring maintenance.
The money in the fund must not be used to finance the issuance or the repayment of bonds or other obligations, including medium-term obligations.
5. Money may be retained in the fund for not more than 10 years to allow the funding of projects without the issuance of bonds or other obligations. [For the purpose of determining] To determine the length of time a deposit of money has been retained in the fund, all money withdrawn from the fund shall be deemed to be taken on a first-in, first-out basis. No money in the fund at the end of the fiscal year may revert to any other fund, nor may the money be a surplus for any other purpose than those specified in this section.
6. The annual budget and audit report of each local government must specifically identify this fund and must indicate in detail the projects that have been funded with money from the fund. Any planned accumulation of the money in the fund must also be specifically identified.
7. The projects on which money raised pursuant to this section will be expended must be approved by the voters in the question submitted pursuant to subsection 1 or in a separate question submitted on the ballot at a primary, general or special election.
Sec. 8. NRS 354.5987 is hereby amended to read as follows:
354.5987 1. For the purposes of NRS 354.59811 and 377.057, the allowed revenue from taxes ad valorem and the basic ad valorem revenue of any local government [:] other than an urban taxing district:
(a) Which comes into being on or after July 1, 1989, whether newly created, consolidated, or both;
(b) Which was in existence before July 1, 1989, but for which the basic ad valorem revenue was not established for the fiscal year ending June 30, 1989; or
(c) Which was in existence before July 1, 1989, but did not receive revenue from taxes ad valorem, except any levied for debt service, for the fiscal year ending June 30, 1989,
must be initially established by the Nevada tax commission.
2. Except as otherwise provided in subsections 3 [and 8,] , 5 and 10, if the local government for which the allowed revenue from taxes ad valorem and the basic ad valorem revenue are to be established performs a function previously performed by another local government, the total revenue allowed to all local governments for performance of substantially the same function in substantially the same geographical area must not be increased. To achieve this result, the Nevada tax commission shall request the committee on local government finance to prepare a statement of the prior cost of performing the function for each predecessor local government. Within 60 days after receipt of such a request, the committee on local government finance shall prepare a statement pursuant to the request and transmit it to the Nevada tax commission. The Nevada tax commission may accept, reject or amend the statement of the committee on local government finance. The decision of the Nevada tax commission is final. Upon making a final determination of the prior cost of performing the function for each predecessor local government, the Nevada tax commission shall:
(a) Determine the percentage that the prior cost of performing the function for each predecessor local government is of the basic ad valorem revenue and of the allowed revenue from taxes ad valorem of that local government; and
(b) Apply the percentages determined pursuant to paragraph (a) to the basic ad valorem revenue and to the allowed revenue from taxes ad valorem, respectively, and subtract those amounts respectively from the basic ad valorem revenue and from the allowed revenue from taxes ad valorem of the predecessor local government.
The basic ad valorem revenue and allowed revenue from taxes ad valorem, respectively, attributable to the new local government for the cost of performing the function must equal the total of the amounts subtracted for the prior cost of performing the function from the basic ad valorem revenue and allowed revenue from taxes ad valorem, respectively, of all of the predecessor local governments.
3. If the local government for which the basic ad valorem revenue is to be established pursuant to subsection 1 is a city, the Nevada tax commission shall:
(a) Using the basic ad valorem revenue of the town replaced by the city, if any, as a basis, set the basic ad valorem revenue of the city at an amount sufficient to allow the city, with other available revenue, to provide the basic services for which it was created;
(b) Reduce the basic ad valorem revenue of the county by the amount set for the city pursuant to paragraph (a);
(c) Add to the basic ad valorem revenue of the county the basic ad valorem revenue of any town which the city has replaced; and
(d) Add to the allowed revenue from taxes ad valorem of the county the allowed revenue from taxes ad valorem for any town which the city replaced.
4. If the local government for which the allowed revenue from taxes ad valorem or the basic ad valorem revenue is to be established is an unincorporated town which provides a service not previously provided by another local government, and the board of county commissioners has included the unincorporated town in a resolution adopted pursuant to the provisions of NRS 269.5755, the Nevada tax commission shall:
(a) Establish the basic ad valorem revenue of the town at an amount which is in the same ratio to the assessed valuation of the town as the combined basic ad valorem revenues are to the combined assessed valuations of all other unincorporated towns included in the common levy authorized pursuant to NRS 269.5755; and
(b) If the unincorporated town also does not receive revenue from taxes ad valorem, establish the allowed revenue of the town from taxes ad valorem at an amount which is in the same ratio to the assessed valuation of the town as the combined allowed revenues from taxes ad valorem are to the combined assessed valuations of the other unincorporated towns included in the common levy.
5. The allowed revenue from taxes ad valorem and the basic ad valorem revenue of an urban taxing district must be initially calculated by adding the allowed revenue from taxes ad valorem and the basic ad valorem revenue of each of the unincorporated towns identified in the ordinance pursuant to which the district is created on the effective date of the ordinance. If a portion of a fire district is included in the ordinance creating an urban taxing district, the initial calculation of the allowed revenue from taxes ad valorem and the basic ad valorem revenue of an urban taxing district must also include that portion of the allowed revenue from taxes ad valorem and the basic ad valorem revenue of the fire district which is determined by multiplying the product of the assessed valuation of the property of the fire district that is included in the urban taxing district divided by the total assessed value of the fire district by the total allowed revenue from taxes ad valorem and the basic ad valorem revenue of the fire district. The allowed revenue from taxes ad valorem and the basic ad valorem revenue of the fire district must be reduced by the same amount of allowed revenue from taxes ad valorem and basic ad valorem revenue that is added to the district pursuant to this subsection. The unincorporated towns identified in the ordinance creating the district are not entitled to revenue from taxes ad valorem after the fiscal year in which the ordinance becomes effective.
6. Except as otherwise provided in subsection 7, the basic ad valorem revenue and allowed revenue from taxes ad valorem of an unincorporated town which provides a service not previously provided by another local government must be:
(a) Reduced by 75 percent for the first fiscal year following the fiscal year in which the basic ad valorem revenue and allowed revenue from taxes ad valorem are established pursuant to subsection 4;
(b) Reduced by 50 percent for the second fiscal year following the fiscal year in which the basic ad valorem revenue and allowed revenue from taxes ad valorem are established pursuant to subsection 4; and
(c) Reduced by 25 percent for the third fiscal year following the fiscal year in which the basic ad valorem revenue and allowed revenue from taxes ad valorem are established pursuant to subsection 4.
[6.] 7. If an unincorporated town that provides a service not previously provided by another local government is included in an urban taxing district pursuant to section 2 of this act, the basic ad valorem revenue and the allowed revenue from taxes ad valorem of the urban taxing district in which the town is included must be reduced by the amount that the basic ad valorem revenue and the allowed revenue from taxes ad valorem of the unincorporated town would have been reduced pursuant to subsection 6 if the unincorporated town had not been included in the urban taxing district.
8. In any other case, except as otherwise provided in subsection [8,] 10, the allowed revenue from taxes ad valorem of all local governments in the county, determined pursuant to NRS 354.59811, must not be increased, but the total basic ad valorem revenue and allowed revenue from taxes ad valorem must be reallocated among the local governments consistent with subsection 2 to accommodate the amount established for the new local government pursuant to subsection 1.
[7.] 9. Any amount of basic ad valorem revenue allowable which is established or changed pursuant to this section must be used to determine a new tax rate for the fiscal year ending June 30, 1981, for each affected local government. This new tax rate must be used to make the distributions among the local governments in the county required by NRS 377.057 for each year following the year in which the amount was established or changed.
[8.] 10. In establishing the allowed revenue from taxes ad valorem of a county, city or town pursuant to this section, the Nevada tax commission shall allow a tax rate for operating expenses of at least 15 cents per $100 of assessed valuation in addition to the tax rate allowed for any identified and restricted purposes and for debt service.
[9.] 11. As used in this section:
(a) "Predecessor local government" means a local government which previously performed all or part of a function to be performed by the local government for which the allowed revenue from taxes ad valorem and the basic ad valorem revenue are being established pursuant to subsection 1.
(b) "Prior cost of performing the function" means the amount expended by a local government to perform a function which is now to be performed by another local government. The amount must be determined on the basis of the most recent fiscal year for which reliable information is available.
Sec. 9. NRS 377.057 is hereby amended to read as follows:
377.057 1. The state controller, acting upon the relevant information furnished by the department, shall distribute monthly from the fees, taxes, interest and penalties which derive from the supplemental city-county relief tax collected in all counties and from out-of-state businesses during the preceding month, except as otherwise provided in subsection 2, to:
(a) Douglas, Esmeralda, Eureka, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey and White Pine counties, an amount equal to one-twelfth of the amount distributed in the immediately preceding fiscal year multiplied by one plus:
(1) The percentage change in the total receipts from the supplemental city-county relief tax for all counties and from out-of-state businesses, from the fiscal year 2 years preceding the immediately preceding fiscal year to the fiscal year preceding the immediately preceding fiscal year; or
(2) Except as otherwise provided in this paragraph, the percentage change in the population of the county, as certified by the governor pursuant to NRS 360.285, added to the percentage change in the Consumer Price Index for the year ending on December 31 next preceding the year of distribution,
whichever is less, except that the amount distributed to the county must not be less than the amount specified in subsection 10. If the United States Bureau of the Census issues population totals that conflict with the totals certified by the governor pursuant to NRS 360.285, the percentage change calculated pursuant to subparagraph (2) for the ensuing fiscal year must be an estimate of the change in population for the calendar year, based upon the population totals issued by the Bureau of the Census.
(b) All other counties, the amount remaining after making the distributions required by paragraph (a) to each of these counties in the proportion that the amount of supplemental city-county relief tax collected in the county for the month bears to the total amount of supplemental city-county relief tax collected for that month in the counties whose distribution will be determined pursuant to this paragraph.
2. If the amount of supplemental city-county relief tax collected in a county listed in paragraph (a) of subsection 1 for the 12 most recent months for which information concerning the actual amount collected is available on February 15 of any year exceeds by more than 10 percent the amount distributed pursuant to paragraph (a) to that county for the same period, the state controller shall distribute that county's portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (b) of subsection 1 in all subsequent fiscal years, unless a waiver is granted pursuant to subsection 3.
3. A county which, pursuant to subsection 2, is required to have its portion of the proceeds from the supplemental city-county relief tax distributed pursuant to paragraph (b) of subsection 1 may file a request with the Nevada tax commission for a waiver of the requirements of subsection 2. The request must be filed on or before February 20 next preceding the fiscal year for which the county will first receive its portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (b) of subsection 1 and must be accompanied by evidence which supports the granting of the waiver. The commission shall grant or deny a request for a waiver on or before March 10 next following the timely filing of the request. If the commission determines that the increase in the amount of supplemental city-county relief tax collected in the county was primarily caused by:
(a) Nonrecurring taxable sales, it shall grant the request.
(b) Normal or sustainable growth in taxable sales, it shall deny the request.
A county which is granted a waiver pursuant to this subsection is not required to obtain a waiver in any subsequent fiscal year to continue to receive its portion of the proceeds from the supplemental city-county relief tax pursuant to paragraph (a) of subsection 1 unless the amount of supplemental city-county relief tax collected in the county in a fiscal year again exceeds the threshold established in subsection 2.
4. The amount apportioned to each county must then be apportioned among the several local governments therein, including the county and excluding the school district, any district created to provide a telephone number for emergencies, any district created under chapter 318 of NRS to furnish emergency medical services, any redevelopment agency, any tax increment area and any other local government excluded by specific statute, in the proportion which each local government's basic ad valorem revenue bears to the total basic ad valorem revenue of all these local governments.
5. As used in this section, the "basic ad valorem revenue" of each local government, except as otherwise provided in subsection [6] 8 of NRS 354.5987, is its assessed valuation, including assessed valuation attributable to a redevelopment agency or tax increment area but excluding the portion attributable to the net proceeds of minerals, for the year of distribution, multiplied by the rate levied on its behalf for the fiscal year ending June 30, 1981, for purposes other than paying the interest on and principal of its general obligations. For the purposes of this [paragraph:] subsection:
(a) A county whose actual tax rate, for purposes other than debt service, for the fiscal year ending on June 30, 1981, was less than 50 cents per $100 of assessed valuation is entitled to the use of a rate not greater than 80 cents per $100 of assessed valuation.
(b) A fire district in such a county whose tax rate was more than 50 cents per $100 of assessed valuation is entitled to the use of a rate not greater than $1.10 per $100 of assessed valuation.
(c) An urban taxing district created pursuant to section 2 of this act shall use a rate that is not greater than the rate obtained by dividing the sum of:
(1) The basic ad valorem revenues of all of the unincorporated towns identified in the ordinance creating the urban taxing district; and
(2) If applicable, that portion of the basic ad valorem revenue of a fire district created pursuant to NRS 244.2961 that has been included in the urban taxing district which is determined by multiplying the product of the assessed valuation of the property of the fire district included in the ordinance creating the urban taxing district divided by the total assessed valuation of the fire district by the total basic ad valorem revenue of the fire district,
by the sum of the assessed valuation of those incorporated towns and the assessed valuation of any property of a fire district included in the urban taxing district for the fiscal year immediately following the fiscal year in which the ordinance creating the district becomes effective.
6. For the purposes of determining basic ad valorem revenue, the assessed valuation of a:
(a) Fire protection district includes property which was transferred from private ownership to public ownership after July 1, 1986, pursuant to:
(1) The Santini-Burton Act, Public Law 96-586; or
(2) Chapter 585, Statutes of Nevada 1985, at page 1866, approved by the voters on November 4, 1986.
(b) Local government includes property which was transferred from private ownership, after July 1, 1997, to property held in trust for an Indian tribe pursuant to the provisions of the Indian Reorganization Act, 25 U.S.C. §§ 461 et seq.
7. On or before February 15 of each year, the executive director shall provide to each local government a preliminary estimate of the revenue it will receive from the supplemental city-county relief tax in the next fiscal year.
8. On or before March 15 of each year, the executive director shall:
(a) Make an estimate of the receipts from the supplemental city-county relief tax on an accrual basis for the next fiscal year in accordance with generally accepted accounting principles; and
(b) Provide to each local government an estimate of the tax that local government would receive based upon the estimate made pursuant to paragraph (a) and calculated pursuant to the provisions of this section.
9. A local government may use the estimate provided by the executive director pursuant to subsection 8 in the preparation of its budget.
10. The minimum amount which may be distributed to the following counties in a month pursuant to paragraph (a) of subsection 1 is as follows:
Douglas $580,993
Esmeralda 53,093
Lander 155,106
Lincoln 72,973
Lyon 356,858
Mineral 118,299
Nye 296,609
Pershing 96,731
Storey 69,914
White Pine 158,863
11. As used in this section, unless the context otherwise requires:
(a) "Local government" includes [a] :
(1) A fire protection district organized pursuant to chapter 473 of NRS [.] ; and
(2) An urban taxing district created pursuant to section 2 of this act.
(b) "Local government" does not include the Nevada rural housing authority.
Sec. 10. NRS 482.181 is hereby amended to read as follows:
482.181 1. Except as otherwise provided in subsection [4,] 5, the department shall certify monthly to the state board of examiners the amount of the basic and supplemental privilege taxes collected for each county by the department and its agents during the preceding month, and that money must be distributed monthly as provided in this section.
2. Any supplemental privilege tax collected for a county must be distributed only to the county, to be used as provided in NRS 371.045 and 371.047.
3. The distribution of the basic privilege tax within a county must be made to local governments, as defined in NRS 354.474, except redevelopment agencies and tax increment areas, in the same ratio as all property taxes were levied in the county in the previous fiscal year, but the State of Nevada is not entitled to share in that distribution , and at least 5 percent of the basic privilege tax disbursed to a county must be deposited for credit to the county's general fund. For the purpose of this subsection, the taxes levied by each local government are the product of its certified valuation, determined pursuant to subsection 2 of NRS 361.405, and its tax rate, established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980, except that the tax rate for school districts, including the rate attributable to a district's debt service, is the rate established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1978, but if the rate attributable to a district's debt service in any fiscal year is greater than its rate for the fiscal year beginning on July 1, 1978, the higher rate must be used to determine the amount attributable to debt service.
4. The tax rate for the fiscal year beginning on July 1, 1980, of an urban taxing district created pursuant to section 2 of this act shall, for each fiscal year, be deemed to be the rate necessary to produce the same distribution of the basic privilege tax to the district as would be distributed to all of the unincorporated towns and any portion of a fire district identified in the ordinance creating the district if the district had not been created.
5. An amount equal to any basic privilege tax distributed to a redevelopment agency or tax increment area in the fiscal year 1987-1988 must continue to be distributed to that agency or area as long as it exists but must not be increased.
[5.] 6. Local governments, other than incorporated cities, are entitled to receive no distribution of basic privilege tax if the distribution to the local government is less than $100. Any undistributed money accrues to the county general fund of the county in which the local government is located.
[6.] 7. The department shall make distributions of basic privilege tax directly to counties, county school districts and incorporated cities. Distributions for other local governments within a county must be paid to the counties for distribution to the other local governments.
Sec. 11. Section 8 of chapter 590, Statutes of Nevada 1995, at page 2183, is hereby amended to read as follows:
Sec. 8. NRS 482.181 is hereby amended to read as follows:
482.181 1. Except as otherwise provided in subsection [5,] 6, the department shall certify monthly to the state board of examiners the amount of the basic and supplemental privilege taxes collected for each county by the department and its agents during the preceding month, and that money must be distributed monthly as provided in this section.
2. Any supplemental privilege tax collected for a county must be distributed only to the county, to be used as provided in NRS 371.045 and 371.047.
3. The distribution of the basic privilege tax within a county must be made to local governments, as defined in NRS 354.474, except redevelopment agencies and tax increment areas, in the same ratio as all property taxes were levied in the county in the previous fiscal year, but the State of Nevada is not entitled to share in that distribution, and at least 5 percent of the basic privilege tax disbursed to a county must be deposited for credit to the county's general fund. For the purpose of this subsection, the taxes levied by each local government are the product of its certified valuation, determined pursuant to subsection 2 of NRS 361.405, and its tax rate, established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980, except that the tax rate for school districts, including the rate attributable to a district's debt service, is the rate established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1978, but if the rate attributable to a district's debt service in any fiscal year is greater than its rate for the fiscal year beginning on July 1, 1978, the higher rate must be used to determine the amount attributable to debt service.
4. The tax rate for the fiscal year beginning on July 1, 1980, of an urban taxing district created pursuant to section 2 of this act shall [, for each fiscal year,] be deemed to be the rate necessary to produce the same distribution of the basic privilege tax to the district as would be distributed to all of the unincorporated towns and any portion of a fire district identified in the ordinance creating the district for the fiscal year beginning on July 1, 2000, if the district had not been created.
5. The tax rate for the fiscal year beginning on July 1, 1980, of an unincorporated town created after July 1, 1980, for which the Nevada tax commission establishes the allowed revenue from taxes ad valorem or basic ad valorem revenue pursuant to subsection 4 of NRS 354.5987 shall be deemed to be the average tax rate levied for the fiscal year beginning on July 1, 1980, by other unincorporated towns included in the same common levy authorized by NRS 269.5755 that were in existence on July 1, 1980.
6. An amount equal to any basic privilege tax distributed to a redevelopment agency or tax increment area in the fiscal year 1987-1988 must continue to be distributed to that agency or area as long as it exists but must not be increased.
[6.] 7. Local governments, other than incorporated cities, are entitled to receive no distribution of basic privilege tax if the distribution to the local government is less than $100. Any undistributed money accrues to the county general fund of the county in which the local government is located.
[7.] 8. The department shall make distributions of basic privilege tax directly to counties, county school districts and incorporated cities. Distributions for other local governments within a county must be paid to the counties for distribution to the other local governments.
Sec. 12. Section 6 of Senate Bill No. 254 of this session is hereby amended to read as follows:
Sec. 6. "Local government" means any county, city , [or] town or urban taxing district that receives any portion of the proceeds of a tax which is included in the fund.
Sec. 13. 1. This section and sections 1 to 8, inclusive, 10 and 11 of this act become effective on July 1, 1997.
2. Section 9 of this act becomes effective at 12:01 a.m. on July 1, 1997.
3. Section 12 of this act becomes effective upon the passage and approval of section 6 of Senate Bill No. 254 of this session.