SUMMARY--Revises provisions governing exemption from property taxes for certain property used for housing elderly or handicapped persons. (BDR 32-1644)
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; expanding the exemption from property taxes for certain property used for housing elderly or handicapped persons to include property that is contributed to a nonprofit corporation by a nonprofit hospital organized pursuant to the laws of this state; 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 NRS 361.086 is hereby amended to read as follows:
361.086All real property and tangible personal property used exclusively for housing and related facilities for elderly or handicapped persons are exempt from taxation if:
1. The property [was wholly] :
(a) Was wholly or partially financed by [a loan under] assistance provided pursuant to the Housing Act of 1959, as amended, 12 U.S.C. § 1701q; [and]
(b) Was contributed to a nonprofit corporation by a nonprofit hospital organized pursuant to the laws of this state; or
(c) Is owned by such a nonprofit hospital; and
2. The property is owned or operated:
(a) By a nonprofit corporation organized [under] pursuant to the laws of [the State of Nevada;] this state; or
(b) By a nonprofit corporation organized [under] pursuant to the laws of another state and qualified to do business as a nonprofit corporation [under] pursuant to the laws of [the State of Nevada.] this state.
Sec. 2 NRS 361.157 is hereby amended to read as follows:
361.1571. [When] If any real estate or portion of real estate which for any reason is exempt from taxation is leased, loaned or otherwise made available to and used by a natural person, association, partnership or corporation in connection with a business conducted for profit or as a residence, or both, the leasehold interest, possessory interest, beneficial interest or beneficial use of any such lessee or user of the property is subject to taxation to the extent the:
(a) Portion of the property leased or used; and
(b) Percentage of time during the fiscal year that the property is leased by the lessee or used by the user,
can be segregated and identified. The taxable value of the interest or use must be determined in the manner provided in subsection 3 of NRS 361.227.
2. Subsection 1 does not apply to:
(a) Property located upon or within the limits of a public airport, park, market or fairground or any property owned by a public airport;
(b) Federal property for which payments are made in lieu of taxes in amounts equivalent to taxes which might otherwise be lawfully assessed;
(c) Property of any state-supported educational institution;
(d) Property leased or otherwise made available to and used by a natural person, private association, private corporation, municipal corporation, quasi-municipal corporation or a political subdivision [under] pursuant to the provisions of the Taylor Grazing Act or by the United States Forest Service or the Bureau of Reclamation of the United States Department of the Interior;
(e) Property of any Indian or of any Indian tribe, band or community which is held in trust by the United States or subject to a restriction against alienation by the United States;
(f) Vending stand locations and facilities operated by blind persons under the auspices of the bureau of services to the blind of the rehabilitation division of the department of employment, training and rehabilitation, regardless of whether the property is owned by the federal, state or a local government;
(g) Leases held by a natural person, corporation, association, municipal corporation, quasi-municipal corporation or political subdivision for development of geothermal resources, but only for resources which have not been put into commercial production;
(h) The use of exempt property that is leased, loaned or made available to a public officer or employee, incident to or in the course of public employment;
(i) A parsonage owned by a recognized religious society or corporation when used exclusively as a parsonage;
(j) Property owned by a charitable or religious organization all or a portion of which is made available to and is used as a residence by a natural person in connection with carrying out the activities of the organization;
(k) Property owned by a nonprofit corporation or governmental entity and used to provide shelter [at a reduced rate] or housing to elderly or handicapped persons or persons with low incomes;
(l) The occasional rental of meeting rooms or similar facilities for periods of less than 30 consecutive days; or
(m) The use of exempt property to provide day care for children if the day care is provided by a nonprofit organization.
3. Taxes must be assessed to lessees or users of exempt real estate and collected in the same manner as taxes assessed to owners of other real estate, except that taxes [due under] owed pursuant to this section do not become a lien against the property. When due, the taxes constitute a debt [due] owed from the lessee or user to the county for which the taxes were assessed and, if unpaid, are recoverable by the county in the proper court of the county.
Sec. 3 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. 4 This act becomes effective on July 1, 1997.