SUMMARY--Exempts computers and related equipment donated for use in schools from property tax. (BDR 32-1616)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to taxation; exempting computers and related equipment donated for use in schools from property tax; 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 361 of NRS is hereby amended by adding thereto a new section to read as follows:
1. To qualify for the exemption provided in paragraph (j) of subsection 1 of NRS 361.068, a taxpayer must donate the property through a foundation or organization, not for profit, that accepts such property for use in schools in this state. The foundation or organization shall issue a voucher identifying each item of property donated.
2. To obtain the benefit of the exemption, the taxpayer must apply to the county assessor and tender the voucher. The county assessor shall compute the assessed value of the property for the year in which the donation was made, and the resulting amount of tax paid, using the original cost and the year of acquisition.
3. The county assessor shall allow a credit of that amount against the personal property tax due for the year following the donation.
Sec. 2 NRS 361.068 is hereby amended to read as follows:
361.0681. The following personal property is exempt from taxation:
(a) Personal property held for sale by a merchant;
(b) Personal property held for sale by a manufacturer;
(c) Raw materials and components held by a manufacturer for manufacture into products, and supplies to be consumed in the process of manufacture;
(d) Tangible personal property purchased by a business which will be consumed during the operation of the business;
(e) Livestock;
(f) Colonies of bees;
(g) Pipe and other agricultural equipment used to convey water for the irrigation of legal crops;
(h) All boats; [and]
(i) Slide-in campers and camper shells [.] ; and
(j) Computers and related equipment donated for use in schools in this state.
2. As used in this section, "boat" includes any vessel or other watercraft, other than a seaplane, used or capable of being used as a means of transportation on the water.
Sec. 3 This act becomes effective on July 1, 1997, and expires by limitation on June 30, 2003.