SUMMARY--Authorizes use of proceeds of certain taxes and fees for projects related to infrastructure. (BDR 32-1374)
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 taxation; providing in skeleton form for the use of the proceeds of certain taxes and fees for projects related to infrastructure; authorizing certain cities and the Southern Nevada Water Authority to impose an excise tax on the use of water for water facilities; 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 Title 32 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 15, inclusive, of this act.
Sec. 2 As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 to 6, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3 "Solid waste" has the meaning ascribed to it in NRS 444.490.
Sec. 4 "Wastewater facilities" means:
1. Any devices and systems used in the storage, treatment, control of odor, recycling and reclamation of municipal sewage or industrial wastes of a liquid nature, including, without limitation, outfall sewers, pumping, power and other equipment, and their appurtenances;
2. Extensions, improvements, remodeling, additions and alterations of any device or system described in subsection 1;
3. Units essential to provide a reliable recycled supply of water, such as standby treatment units and clear well facilities; and
4. Land that is or will be an integral part of the treatment process or is used for the ultimate disposal of residues resulting from such treatment, including, without limitation, the acquisition and improvement of wetlands that are designed and used for the discharge of effluent.
Sec. 5 "Water authority" means a water authority organized as a public agency or an entity created by cooperative agreement pursuant to chapter 277 of NRS whose members at the time of formation included the three largest retail water purveyors in the county and which is responsible for the acquisition, treatment and delivery of water and water resources on a wholesale basis to utilities, governmental agencies and entities, and other large customers.
Sec. 6 "Water facilities" means facilities pertaining to a water system for the collection, transportation, treatment, purification and distribution of water, including, without limitation, springs, wells, ponds, lakes, water rights, other raw water sources, basin cribs, dams, spillways, retarding basins, detention basins, reservoirs, towers and other storage facilities, pumping plants, infiltration galleries, filtration plants, purification systems, other water treatment facilities, waterworks plants, pumping stations, gauging stations, ventilating facilities, stream gauges, rain gauges, valves, standpipes, connections, hydrants, conduits, flumes, sluices, canals, channels, ditches, pipes, lines, laterals, service pipes, force mains, submains, siphons, other water transmission and distribution mains, engines, boilers, pumps, meters, apparatus, tools, equipment, fixtures, structures, buildings and other facilities for the acquisition, transportation, treatment, purification and distribution of untreated water or potable water for domestic, commercial and industrial use and irrigation, or any combination thereof.
Sec. 7 1. The board of county commissioners of a county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists shall, before using any money deposited in the infrastructure fund of the county pursuant to section 10 of this act, develop a plan for the expenditure of the money in the infrastructure fund for the purposes set forth in section 12 of this act. The plan:
(a) May include a regional project for which two or more such counties have entered into an interlocal agreement to expend jointly all or a portion of the proceeds of a tax imposed in each county pursuant to this chapter; and
(b) Must include, without limitation:
(1) The date on which the plan expires;
(2) A description of each proposed project;
(3) The method of financing each project; and
(4) The costs related to each project.
2. Before adopting a plan pursuant to this section, the board of county commissioners of a county in which a regional planning commission has been established pursuant to NRS 278.0262 shall transmit to the regional planning commission a list of the proposed projects for which money in the infrastructure fund of the county may be used. The regional planning commission shall hold a public hearing at which it shall rank each project in relative priority. The regional planning commission shall transmit its rankings to the board of county commissioners. The recommendations of the regional planning commission regarding the priority of the proposed projects are not binding on the board of county commissioners.
3. The board of county commissioners shall hold at least one public hearing on the plan. Notice of the time and place of the hearing must be:
(a) Published in a newspaper of general circulation in the county at least once a week for the 2 consecutive weeks immediately preceding the date of the hearing. The notice must be a display advertisement of not less than 3 inches by 5 inches.
(b) Posted at the building in which the meeting is to be held and at not less than three other prominent places within the county at least 2 weeks before the date of the hearing.
The plan must be approved by the board of county commissioners at a public hearing.
4. On or before the date on which a plan expires, the board of county commissioners shall determine whether a necessity exists for the continued use of the money in the infrastructure fund of the county for a project specified in the plan. If the board determines that such a necessity does not exist, the board shall not use any money in the infrastructure fund of the county for the project. If the board of county commissioners determines that the use of the money must be continued for that project, the board shall adopt, in the manner prescribed in this section, a new plan for the money for that project.
Sec. 8 1. Upon receipt of the payments of taxes and fees pursuant to NRS 365.545, 375.070, 482.313 and section 21 of this act, the department shall deposit the payments with the state treasurer for credit to the account for infrastructure which is hereby created in the state general fund.
2. The state controller, acting on the collection data furnished by the department, shall monthly:
(a) Transfer from the account for infrastructure to the appropriate account in the state general fund a percentage of all taxes and fees deposited pursuant to subsection 1 during the preceding month as compensation to the state for the cost of collecting the taxes and fees. The percentage to be transferred pursuant to this paragraph must be the same percentage as the percentage of proceeds transferred pursuant to paragraph (a) of subsection 3 of NRS 374.785, except that the percentage must be applied to the proceeds collected pursuant to subsection 1 only.
(b) Determine for each county an amount of money equal to any fees and taxes specified in subsection 1 collected during the preceding month, less the amount transferred to the state general fund pursuant to paragraph (a).
(c) Transfer the amount determined for each county pursuant to paragraph (b) to the intergovernmental fund created pursuant to NRS 353.254 and remit the money:
(1) In each county whose population is 400,000 or more and in which a water authority exists, to the treasurer for the water authority.
(2) In each county whose population is less than 400,000 or each county whose population is 400,000 or more and in which no water authority exists, to the county treasurer.
Sec. 9 The department may redistribute any tax or fee specified in subsection 1 of section 8 of this act to:
1. A county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists; or
2. The water authority in a county whose population is 400,000 or more and in which a water authority exists,
that is entitled thereto, but no such redistribution may be made as to amounts originally distributed more than 6 months before the date on which the department obtains knowledge of the improper distribution.
Sec. 10 1. In a county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists, the county treasurer shall deposit the money received from the state controller pursuant to section 8 of this act in the county treasury for credit to a fund to be known as the infrastructure fund. The infrastructure fund must be accounted for as a separate fund and not as a part of any other fund. The money for each project included in the plan adopted pursuant to section 7 of this act must be accounted for separately in the fund.
2. In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall deposit the money received from the state controller pursuant to section 8 of this act in a separate account of the water authority to be known as the infrastructure fund. This fund must be accounted for as a separate fund and not as part of any other fund of the water authority.
Sec. 11 1. In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall enter into an interlocal agreement with a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or with a public entity in the county which provides water or wastewater services and which is not a member of the water authority to provide a distribution from the infrastructure fund of the water authority to the city, town or public entity after the city, town or public entity has submitted to the water authority a detailed plan for acquiring, establishing, constructing, improving or equipping, or any combination thereof, a water or wastewater facility. No such distribution may be made as to money that is deposited into the infrastructure fund more than 6 months before the date of the request for a distribution.
2. A city, town or public entity specified in subsection 1 may request annually from the infrastructure fund of the water authority an amount of the money received annually by the water authority for deposit in the fund that is equal to the proportion that the assessed valuation of taxable property within the boundaries of the city or town or the area served by the public entity, except any assessed valuation attributable to the net proceeds of minerals, bears to the total assessed valuation of taxable property within the county, except any assessed valuation attributable to the net proceeds of minerals. If the boundaries of the city or town overlap with the boundaries of a public entity in such a county which provides water or wastewater services and which is not a member of the water authority, the water authority shall apportion equally between the city or town and the public entity the distribution from the infrastructure fund attributable to the assessed valuation in the area where the boundaries overlap.
3. The water authority shall not unreasonably refuse a request from such a city, town or public entity for a distribution from the infrastructure fund pursuant to the provisions of this section.
Sec. 12 The money in the infrastructure fund, including interest and any other income from the fund:
1. In a county whose population is 400,000 or more, must only be expended by the water authority, distributed by the water authority to its members, distributed by the water authority pursuant to section 11 of this act to a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or to a public entity in such a county which provides water or wastewater services and which is not a member of the water authority or, if no water authority exists in the county, by the board of county commissioners for:
(a) The acquisition, establishment, construction, improvement or equipping of water and wastewater facilities;
(b) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of the projects described in paragraph (a); or
(c) Any combination of those purposes.
The board of county commissioners may only expend money from the infrastructure fund pursuant to this subsection in the manner set forth in the plan adopted pursuant to section 7 of this act.
2. In a county whose population is 100,000 or more but less than 400,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to section 7 of this act for:
(a) The acquisition, establishment, construction or expansion of:
(1) Facilities for the control of floods;
(2) Railroad grade separation projects; or
(3) Facilities relating to public safety;
(b) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of the projects described in paragraph (a); or
(c) Any combination of those purposes.
3. In a county whose population is less than 100,000, must only be expended by the board of county commissioners in the manner set forth in the plan adopted pursuant to section 7 of this act for:
(a) The acquisition, establishment, construction, improvement or equipping of:
(1) Water facilities; or
(2) Wastewater facilities;
(b) The acquisition, establishment, construction or expansion of:
(1) Facilities for the control of floods; or
(2) Facilities for the disposal of solid waste;
(c) The payment of principal and interest on notes, bonds or other securities issued to provide money for the cost of projects described in paragraphs (a) and (b); or
(d) Any combination of those purposes.
Sec. 13 1. Money for the payment of the cost of one or more projects for which the board of county commissioners has adopted a plan pursuant to section 7 of this act may be obtained:
(a) By the issuance of bonds and other securities as provided in subsection 2 or 3;
(b) Subject to any pledges, liens and other contractual limitations made pursuant to this chapter, by direct distribution from the infrastructure fund; or
(c) By the issuance of those securities and by such direct distribution as determined by the board of county commissioners or, in a county whose population is 400,000 or more and in which a water authority exists, by the water authority.
2. The board of county commissioners of a county whose population is less than 400,000 or of a county whose population is 400,000 or more and in which no water authority exists may, after adopting a plan pursuant to section 7 of this act, from time to time, issue bonds and other securities which are general or special obligations of the county and which may be secured as to principal and interest by a pledge authorized by this chapter of the proceeds of the taxes and fees received pursuant to this chapter. The ordinance authorizing the issuance of any bond or other security must describe the purpose for which it was issued.
3. After the adoption of a plan pursuant to section 7 of this act by the board of county commissioners of a county whose population is 400,000 or more and in which a water authority exists, the water authority or, if so provided in an interlocal agreement to which the water authority is a party, one or more of the members of the water authority, may from time to time, issue bonds and other securities which are general or special obligations and which may be secured as to principal and interest by a pledge authorized by this chapter of the proceeds of the taxes and fees received pursuant to this chapter.
Sec. 14 1. Each document providing for the issuance of any bond or security issued pursuant to this chapter that is payable from the proceeds of the taxes and fees received pursuant to this chapter or revenue generated by one or more projects for which the board of county commissioners has adopted a plan pursuant to section 7 of this act, may, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain a covenant or other provision to pledge and create a lien upon the proceeds of the tax and fee or the revenue generated by one or more projects for which the board of county commissioners has adopted a plan pursuant to section 7 of this act, or upon the proceeds of any bond or security pending their application to defray the cost of one or more projects for which the board of county commissioners has adopted a plan pursuant to section 7 of this act, or any combination of the proceeds of the taxes and fees, generated revenue or security proceeds, to secure the payment of any bond or security issued pursuant to this chapter.
2. Any money pledged to the payment of bonds or other securities pursuant to subsection 1 may be treated as pledged revenues of the project for the purposes of subsection 3 of NRS 350.020.
Sec. 15 1. On or before December 31 of each year, a county or water authority that receives money from the state controller pursuant to section 8 of this act shall submit a written report to the director of the legislative counsel bureau for transmittal to:
(a) In each even-numbered year, the next regular session of the legislature.
(b) In each odd-numbered year, the interim finance committee.
2. The report must:
(a) Set forth the total amount of money received by the county or water authority from the state controller pursuant to section 8 of this act for the preceding fiscal year;
(b) Describe each distribution of money from the infrastructure fund of the county or water authority in the preceding fiscal year, including, without limitation:
(1) The project for which the money was distributed; and
(2) The status of the project for which the money was distributed;
(c) Describe other revenue, if any, that was allocated to or collected for the financing of a portion of a project for which a plan was adopted pursuant to section 7 of this act; and
(d) Provide projected expenditures for the next 5 fiscal years for projects to be paid, wholly or in part, by the proceeds of a tax or fee received pursuant to this chapter and the projected revenue that will be generated by those projects.
3. If a water authority in a county whose population is 400,000 or more has entered into an interlocal agreement to provide a distribution from the infrastructure fund pursuant to section 11 of this act to a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or to a public entity in the county which provides water or wastewater services and which is not a member of the water authority, the city, town or public entity shall transmit to the water authority on or before December 15 of each year a report that describes:
(a) The total distribution received by the city, town or public entity during the preceding fiscal year from the infrastructure fund pursuant to section 11 of this act;
(b) Each project for which the money was distributed; and
(c) The status of each project for which the money was distributed.
Sec. 16 NRS 365.170 is hereby amended to read as follows:
365.1701. Every dealer shall, not later than the 25th day of each calendar month:
(a) Render to the department a statement of all motor vehicle fuel and fuel for jet or turbine-powered aircraft sold, distributed or used by him in the State of Nevada, as well as all such fuel sold, distributed or used in this state by a purchaser thereof upon which sale, distribution or use the dealer has assumed liability for the tax thereon under NRS 365.020, during the preceding calendar month; and
(b) Pay an excise tax on:
(1) All fuel for jet or turbine-powered aircraft in the amount of [1 cent] 2 cents per gallon, plus any amount imposed by the county in which the fuel is sold, distributed or used pursuant to NRS 365.203;
(2) Aviation fuel in the amount of 10.5 cents per gallon; and
(3) All other motor vehicle fuel in the amount of 17.65 cents per gallon,
so sold, distributed or used, in the manner and within the time prescribed in this chapter.
2. A dealer shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the state.
3. The department for good cause may extend for not more than 30 days the time for making any report or return required under this chapter. The extension may be granted at any time if:
(a) A request therefor has been filed with the department within or before the period for which the extension may be granted; and
(b) A remittance of the estimated tax is made when due.
4. Any report, return, remittance to cover a payment or claim for credit or refund required by this chapter which is transmitted through the United States mail shall be deemed filed or received by the department on the date shown by the post office cancellation mark stamped upon the envelope containing it, or on the date it was mailed if proof satisfactory to the department establishes that the document or remittance was timely deposited in the United States mail properly addressed to the department.
Sec. 17 NRS 365.545 is hereby amended to read as follows:
365.5451. [The] Except as otherwise provided in subsection 5, the proceeds of all taxes on fuel for jet or turbine-powered aircraft imposed pursuant to NRS 365.170 or 365.203 must be deposited in the account for taxes on fuel for jet or turbine-powered aircraft in the state general fund and must be allocated monthly by the department to the governmental entity which owns the airport at which the tax was collected, or if the airport is privately owned, to the county in which the airport is located.
2. The money [so] received pursuant to subsection 1 must be used by the entity receiving it to pay the cost of:
(a) Transportation projects related to airports, including access on the ground to airports;
(b) Payment of principal and interest on notes, bonds or other obligations incurred to fund projects described in paragraph (a); or
(c) Any combination of those purposes.
3. [Money so] Except as otherwise provided in subsection 5, money received pursuant to subsection 1 may also be pledged for the payment of general or special obligations issued to fund projects described in paragraph (a) of subsection 2.
4. Any money pledged pursuant to subsection 3 may be treated as pledged revenues of the project for the purposes of subsection 3 of NRS 350.020.
5. An amount equal to that portion of the proceeds that is equivalent to 1 cent per gallon or fraction thereof of fuel for jet or turbine-powered aircraft paid pursuant to NRS 365.170 must be remitted to the department for deposit in the account for infrastructure created pursuant to section 8 of this act.
Sec. 18 NRS 375.020 is hereby amended to read as follows:
375.0201. A tax, at the rate of [65 cents] $1 for each $500 of value or fraction thereof, is hereby imposed on each deed by which any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, another person, if the consideration or value of the interest or property conveyed, exclusive of the value of any lien or encumbrance remaining on the interest or property at the time of sale, exceeds $100.
2. The amount of tax must be computed on the basis of the value of the transferred real property as declared pursuant to NRS 375.060.
Sec. 19 NRS 375.070 is hereby amended to read as follows:
375.0701. The county recorder shall transmit the proceeds of the real property transfer tax at the end of each quarter in the following manner:
(a) An amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof must be transmitted to the state treasurer who shall deposit that amount in the account for low-income housing created pursuant to NRS 319.500.
(b) An amount equal to that portion of the proceeds that is equivalent to 35 cents for each $500 of value or fraction thereof must be transmitted to the department for deposit in the account for infrastructure created pursuant to section 8 of this act.
(c) The remaining proceeds must be transmitted to the county treasurer, who shall in Carson City, and in any county where there are no incorporated cities, deposit [them all] those proceeds in the general fund, and in other counties deposit 25 percent of [them] those proceeds in the general fund and apportion the remainder as follows:
(1) If there is one incorporated city in the county, between that city and the county general fund in proportion to the respective populations of the city and the unincorporated area of the county.
(2) If there are two or more cities in the county, among the cities in proportion to their respective populations.
2. If there is any incorporated city in a county, the county recorder shall charge each city a fee equal to 2 percent of the real property transfer tax which is transferred to that city.
Sec. 20 Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:
1. In a county whose population is 400,000 or more, the governing body of a city that owns a municipal water system may, if requested by a water authority, impose an excise tax on the use of water in an amount sufficient to ensure the payment, wholly or in part, of any obligations incurred by the water authority to acquire, establish, construct, improve or equip, or any combination thereof, a water facility. The tax must be imposed by ordinance on the customers of the municipal water system who are capable of using or benefiting from the water facility financed, wholly or in part, with the proceeds of the tax.
2. An excise tax imposed pursuant to subsection 1 must be levied at different rates for different classes of customers and must take into account differences in the amount of water used or estimated to be used and the size of the connection.
3. The ordinance imposing the tax must provide:
(a) The rate or rates of the tax, which must not exceed one-quarter of 1 percent of the monthly water bill of customers of all residential classes and 5 percent of the monthly water bill of customers of all commercial classes and any other class;
(b) The procedure for collection of the tax;
(c) The duration of the tax; and
(d) The rate of interest that will be charged on late payments.
4. Late payments of the tax must bear interest at a rate not exceeding 1 percent per month, or fraction thereof. The tax due is a perpetual lien against the property served by the water on whose use the tax is imposed until the tax and any interest that may accrue thereon are paid. The collection of the tax may be enforced in any manner authorized by law for the collection of unpaid water bills. In addition to all other methods available to enforce payment of the tax, the city, by ordinance, may provide that it will be collected in the same manner as delinquent taxes are collected pursuant to NRS 268.043 for sewerage charges.
5. Subject to the provisions of this subsection, the governing body of the city may reduce the amount of the tax imposed pursuant to this section as the obligations of the city and the water authority allow. No ordinance imposing a tax that is enacted pursuant to this section may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to this section until those bonds or other obligations have been discharged in full.
6. The governing body of the city shall, at least once every 10 years, review the necessity for the continued imposition of the tax authorized pursuant to this section.
7. As used in this section:
(a) "Water authority" means a water authority organized as a public agency or entity created by cooperative agreement pursuant to chapter 277 of NRS whose members at the time of formation include the three largest retail water purveyors in the county and which is responsible for the acquisition, treatment and delivery of water and water resources on a wholesale basis to utilities, governmental agencies and entities, and other large customers.
(b) "Water facility" means a facility pertaining to a water system for the collection, transportation, treatment, purification and distribution of water, including, without limitation, springs, wells, ponds, lakes, water rights, other raw water sources, basin cribs, dams, spillways, retarding basins, detention basins, reservoirs, towers and other storage facilities, pumping plants, infiltration galleries, filtration plants, purification systems, other water treatment facilities, waterworks plants, pumping stations, gauging stations, ventilating facilities, stream gauges, rain gauges, valves, standpipes, connections, hydrants, conduits, flumes, sluices, canals, channels, ditches, pipes, lines, laterals, service pipes, force mains, submains, siphons, other water transmission and distribution mains, engines, boilers, pumps, meters, apparatus, tools, equipment, fixtures, structures, buildings and other facilities for the acquisition, transportation, treatment, purification and distribution of untreated water or potable water for domestic, commercial and industrial use and irrigation, or any combination thereof.
Sec. 21 Chapter 463 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The commission shall not issue a license to an applicant to operate a resort hotel located in a county whose population is 100,000 or more unless the applicant pays a fee of $250,000 to the commission. The fee required to be paid pursuant to this subsection is in addition to any other fee or tax required to be paid by the applicant pursuant to this chapter.
2. Upon receipt of a fee pursuant to subsection 1, the commission shall deposit the fee in the account for infrastructure created pursuant to section 8 of this act.
Sec. 22 NRS 482.313 is hereby amended to read as follows:
482.3131. Upon the lease of a passenger car by a short-term lessor in this state, the short-term lessor shall charge and collect from the short-term lessee a fee of 6 percent of the total amount for which the passenger car was leased, excluding any taxes or other fees imposed by a governmental entity. The amount of the fee must be indicated in the lease agreement.
2. On or before January 31 of each year, the short-term lessor shall:
(a) File with the department, on a form prescribed by the department, a report indicating the total amount of:
(1) Fees collected by the short-term lessor during the immediately preceding year pursuant to this section; and
(2) Vehicle licensing fees and taxes paid by the short-term lessor during the immediately preceding year pursuant to this chapter.
(b) Remit to the department:
(1) One-third of the fees collected by the short-term lessor during the immediately preceding year pursuant to this section; and
(2) Of the remainder of [such] those fees, any amount in excess of the total amount of vehicle licensing fees and taxes paid by the short-term lessor during the immediately preceding year pursuant to this chapter.
3. The department shall [deposit] transmit all money received from short-term lessors pursuant to the provisions of this section [with the state treasurer for credit to the state general fund.] to the department of taxation for deposit in the account for infrastructure created pursuant to section 8 of this act.
4. To ensure compliance with this section, the department may audit the records of a short-term lessor.
5. [Nothing in this section limits or affects] The provisions of this section do not limit or affect the payment of any taxes or fees imposed pursuant to the provisions of this chapter.
6. As used in this section, "vehicle licensing fees and taxes" means:
(a) The fees paid by a short-term lessor for the registration of, and the issuance of certificates of title for, the passenger cars leased by him; and
(b) The basic and supplemental privilege taxes paid by the short-term lessor with regard to such passenger cars.
Sec. 23 Chapter 167, Statutes of Nevada 1947, as last amended by chapter 631, Statutes of Nevada 1993, at page 2643, is hereby amended by adding thereto a new section to be designated as section 28, immediately following section 27, to read as follows:
Sec. 28. 1. At the request of the Southern Nevada Water Authority, to pay all or any part of the cost to acquire, establish, construct, improve or equip, or any combination thereof, one or more water facilities, the board of directors of the district may impose an excise tax on the use of water in an amount sufficient to ensure the payment, wholly or in part, of obligations incurred by the Southern Nevada Water Authority. The tax must be imposed as a rate or charge pursuant to the procedures for adopting a schedule of rates and charges set forth in section 9.2 on the customers of the water system of the district who are capable of using or benefiting from the water facilities financed, wholly or in part, with the proceeds of the tax.
2. An excise tax imposed pursuant to subsection 1 must be levied at different rates for different classes of customers and must take into account differences in the amount of water used or estimated to be used and the size of the connection.
3. The schedule imposing the rate or charge must provide:
(a) The amount of the rate or charge, which must not exceed one-quarter of 1 percent of the monthly water bill of customers of all residential classes and 5 percent of the monthly water bill of customers of all commercial classes and any other class;
(b) The procedure for collection of the rate or charge;
(c) The duration of the rate or charge; and
(d) The rate of interest that will be charged on late payments.
4. Late payments of the tax must bear interest at a rate not exceeding 1 percent per month, or fraction thereof. The tax due is a perpetual lien against the property served by the water on whose use the tax is imposed until the tax and any interest that may accrue thereon are paid. Collection of the tax may be enforced in any manner authorized by law for the collection of unpaid water bills. In addition to all other methods available to enforce payment of the tax, the district may provide that it will be collected in the same manner as delinquent taxes are collected pursuant to NRS 268.043 for sewerage charges.
5. Subject to the provisions of this subsection, the board of directors of the district may reduce the amount of the tax imposed pursuant to this section as the obligations of the district or the water authority allow. The board of directors of the district shall not repeal or amend or otherwise directly or indirectly modify the tax in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax imposed pursuant to this section until those bonds or other obligations have been discharged in full.
6. The board of directors of the district shall, at least once every 10 years, review the necessity for the continued imposition of the tax authorized pursuant to this section.
7. As used in this section, "water facility" has the meaning ascribed to "water project" in paragraph (b) of subsection 6 of section 27.
Sec. 24 This act becomes effective on July 1, 1997.