SUMMARY--Creates gaming districts in certain larger counties for aggregation and redistribution of certain local gaming licensing fees and reduction of certain property tax rates. (BDR 41-690)
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; providing for the creation of a gaming district in certain larger counties for the aggregation and redistribution of certain local license fees; requiring a proportionate decrease in the rate of property tax levied by certain cities and towns located in the district; prohibiting the reduction of certain license fees; 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 Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 9, inclusive, of this act.
Sec. 2. As used in sections 2 to 9, inclusive, of this act, the words and terms defined in sections 3, 4 and 5 of this act have the meanings ascribed to them in those sections.
Sec. 3. "District" means the gaming district created by section 6 of this act.
Sec. 4. "Executive director" means the executive director of the department of taxation.
Sec. 5. "Local government" means an incorporated city or an unincorporated town within the district which levied property taxes for the fiscal year ending on June 30, 1997.
Sec. 6. 1. In each county whose population is 400,000 or more, there is hereby created a gaming district consisting of:
(a) The area within the boundaries of each incorporated city, except any city which is incorporated under the provisions of chapter 266 of NRS or which prohibits gaming within its jurisdiction; and
(b) The entire unincorporated area of the county.
2. The county treasurer is ex officio the treasurer of the district.
3. The county treasurer shall create a separate fund in which all money of the district must be deposited, including all interest and other income earned on the money in the fund.
Sec. 7. 1. On or before the 15th day of each month:
(a) The treasurer of each local government within the district shall remit the license fees collected by the local government during the preceding month from each holder of a nonrestricted license to the treasurer of the district for credit to the fund for the district; and
(b) The county treasurer shall transfer the license fees collected by the county during the preceding month from each holder of a nonrestricted license to the fund for the district.
2. Neither the county nor a local government may reduce the rate of the license fee charged by it to the holder of a nonrestricted gaming license below the level in effect on the date of the passage and approval of this act or 6 months before that date, whichever is higher.
Sec. 8. 1. The executive director shall determine the annual proportionate allocation to be made to each local government:
(a) For the first fiscal year which begins after the date on which the district is created:
(1) By multiplying the property tax rate of each local government for the previous fiscal year by its assessed valuation for that fiscal year; and
(2) Calculating the amount to be allocated to each local government, considering the total amount of money estimated to be available for allocation for that fiscal year and the amounts determined pursuant to subparagraph (1) of this paragraph, in such a manner as to allow for the lowest possible equalized property tax rates for all of the local governments by replacing property tax revenue with the annual proportionate allocation to be made to each local government.
(b) For each subsequent fiscal year, if the total amount estimated by the executive director to be available for allocation to the local governments in the fiscal year in which the money will be distributed is:
(1) Less than the total amount available in the immediately preceding fiscal year, by multiplying the amount estimated to be available for the fiscal year in which the distribution will be made by the percentage proportion of the total allocation received by each local government for the immediately preceding fiscal year and allocating that amount to each local government.
(2) Equal to or greater than the total amount available in the immediately preceding fiscal year, by allocating to each local government the same amount as was allocated to that local government in the previous fiscal year, plus, if additional money is estimated to be available, an additional amount must be allocated to each local government in such a manner as will allow, as nearly as practicable, each local government to levy the same percentage rate of property taxes for operating purposes.
2. In making the calculations required pursuant to subsection 1, the executive director shall add to the property tax rate of each unincorporated town the operating rate of a fire district if the boundaries of the fire district include the area of the town.
3. On or before March 15 of each year the executive director shall provide to each local government a preliminary estimate of the amount of money that will be distributed to the local government during the next ensuing fiscal year pursuant to the provisions of sections 2 to 9, inclusive, of this act.
4. On or before May 15 of each year the executive director shall provide to each local government and to the treasurer of the district a statement of the amount of money allocated for the next ensuing fiscal year to each local government pursuant to the provisions of sections 2 to 9, inclusive, of this act.
5. The treasurer of the district shall distribute all money received pursuant to subsection 1 of section 7 of this act, together with any interest or other income earned thereon, not later than the last day of the month following the month in which the money was received by him, to the local governments in the same percentage proportion as the annual proportionate allocation determined by the executive director pursuant to this section.
Sec. 9. The executive director shall decrease the rate of property tax otherwise allowed to be levied by each local government pursuant to chapter 354 of NRS, and each local government shall accordingly decrease its property tax levy, for each fiscal year in which money will be distributed pursuant to section 8 of this act, by an amount which when multiplied by the assessed valuation of the local government for the previous fiscal year would produce revenue equal to the amount allocated to the local government as specified in the statement provided by the executive director pursuant to subsection 4 of section 8 of this act in the fiscal year in which the distribution will be received.
Sec. 10. This act becomes effective upon passage and approval.