Assembly Bill No. 196–Assemblymen Collins, Chowning, Claborn, Andonov, Atkinson, Buckley, Geddes, Giunchigliani, Goicoechea, Grady, Hardy, Koivisto, Manendo, McClain, Oceguera, Pierce and Sherer

 

February 26, 2003

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Referred to Committee on Government Affairs

 

SUMMARY—Authorizes certain local governments in larger counties to require dedication of certain land or impose tax on nonresidential construction projects for regional parks. (BDR 22‑653)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to local governments; authorizing certain local governments in larger counties to require the dedication of certain land or impose a tax on nonresidential construction projects for regional parks; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 278 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 to 8, inclusive, of this

1-3  act.

1-4  Sec. 2.  As used in sections 2 to 8, inclusive, of this act, unless

1-5  the context otherwise requires, the words and terms defined in

1-6  sections 3 and 4 of this act have the meanings ascribed to them in

1-7  those sections.

1-8  Sec. 3.  “Nonresidential construction project” means

1-9  construction other than construction of residential dwelling units

1-10  or an apartment house or the development of mobile home lots for

1-11  which a residential construction tax may be imposed pursuant to

2-1  NRS 278.497 to 278.4987, inclusive. The term does not include

2-2  any construction by a governmental agency.

2-3  Sec. 4.  “Regional park” means a site exceeding 50 acres,

2-4  which is designed to serve the outdoor needs of persons who live

2-5  or work in the region in which it is located.

2-6  Sec. 5.  1.  In a county whose population is 400,000 or more,

2-7  the governing body of the county or a city in the county may, by

2-8  ordinance, require that a developer of land for a nonresidential

2-9  construction project dedicate such land areas, sites and locations

2-10  for a regional park as are reasonably necessary to serve the people

2-11  who live or work in the region of the city or county in which the

2-12  nonresidential construction project is located.

2-13      2.  The ordinance adopted pursuant to subsection 1 must,

2-14  insofar as practicable, conform to the recreation plan in the

2-15  master plan of the city or county.

2-16      3.  The ordinance adopted pursuant to subsection 1 must

2-17  contain standards for determining the amount, quality and

2-18  location of land that is required to be dedicated which must be

2-19  based upon the number and type of nonresidential construction

2-20  projects included in each development and give due consideration

2-21  to the relative desirability and market value of the land that may

2-22  be included within the area of any particular proposed

2-23  development.

2-24      4.  The ordinance adopted pursuant to subsection 1 must,

2-25  without limiting the general powers conferred in this chapter,

2-26  include the following:

2-27      (a) Provisions for the creation, in accordance with the

2-28  applicable master plan, of park districts or service areas which

2-29  would serve regions within the city or county.

2-30      (b) A delegation of authority to designated departments or

2-31  agencies of the city or county to select the location of the land

2-32  areas to be dedicated for regional parks. The land to be dedicated

2-33  for regional parks must be within the park district or service area

2-34  created pursuant to paragraph (a) in which the nonresidential

2-35  construction projects are located.

2-36      (c) A provision limiting the amount of land required to be

2-37  dedicated to an amount of land having a fair market value,

2-38  determined by independent appraisal, which does not exceed the

2-39  amount of any nonresidential construction tax which would

2-40  otherwise have been collected pursuant to section 7 of this act.

2-41      (d) A provision for the transfer of title to the dedicated land

2-42  upon the issuance of building permits and the construction of the

2-43  first unit of the development from which the land was dedicated.

2-44      Sec. 6.  1.  If the land area dedicated by any developer

2-45  pursuant to section 5 of this act exceeds a proportionate

3-1  contribution to the total regional park site, taking into

3-2  consideration the total persons who live or work in the park

3-3  districts or service areas which serve regions within the city or

3-4  county reasonably expected to benefit from the regional park, the

3-5  developer making the dedication must be compensated at fair

3-6  market value for the excess value contributed.

3-7  2.  When 25 percent of the nonresidential construction project

3-8  from which the land was dedicated is constructed, the local

3-9  governing body or agency to which the dedicated land is conveyed

3-10  shall provide for planning, public hearings and the adoption of a

3-11  plan for development of the site, a schedule of that development

3-12  and a plan for financing which includes operational and

3-13  maintenance costs of the regional park.

3-14      3.  If a regional park has not been developed on the land

3-15  dedicated for that purpose within 5 years after the date on which

3-16  75 percent of the nonresidential construction project first became

3-17  occupied, title to the land reverts to the owners of the

3-18  nonresidential construction project at the time of the reversion on

3-19  a pro rata basis.

3-20      Sec. 7.  1.  In a county whose population is 400,000 or more,

3-21  the governing body of the county and any city in the county which

3-22  has adopted a master plan and recreation plan, as provided in this

3-23  chapter, which includes, as a part of the plan, future or present

3-24  sites for regional parks may, by ordinance, impose a

3-25  nonresidential construction tax pursuant to this section.

3-26      2.  If imposed, the nonresidential construction tax must be

3-27  imposed on the privilege of constructing nonresidential

3-28  construction projects in the city or county, as applicable. The rate

3-29  of the tax must not exceed 1 percent of the valuation of each

3-30  building permit issued or $20,000 per nonresidential construction

3-31  project, whichever is less. For the purpose of calculating the

3-32  nonresidential construction tax pursuant to this subsection, the

3-33  governing body shall adopt an ordinance basing the valuation of

3-34  building permits on the actual costs of nonresidential construction

3-35  projects in the area.

3-36      3.  The purpose of the tax imposed pursuant to this section is

3-37  to raise revenue to enable the cities and counties to provide

3-38  regional parks and facilities for such parks which benefit persons

3-39  who live or work in the park districts or service areas which serve

3-40  regions within the city or county.

3-41      4.  An ordinance enacted pursuant to subsection 1 must

3-42  establish the procedures for collecting the tax, set its rate, and

3-43  determine the purposes for which the tax is to be used, subject to

3-44  the restrictions and standards provided in this chapter. The

4-1  ordinance must, without limiting the general powers conferred in

4-2  this chapter, also include:

4-3  (a) Provisions for the creation, in accordance with the

4-4  applicable master plan, of park districts or service areas which

4-5  would serve regions within the city or county.

4-6  (b) A provision for collecting the tax at the time of issuance of

4-7  a building permit for the construction of a nonresidential

4-8  construction project.

4-9  5.  All nonresidential construction taxes collected pursuant to

4-10  the provisions of this section and any ordinance enacted by a

4-11  governing body and all interest accrued on the money must be

4-12  placed with the city treasurer or county treasurer in a special fund.

4-13  Except as otherwise provided in subsection 6, the money in the

4-14  fund that is collected pursuant to subsection 2 may only be:

4-15      (a) Used for the acquisition, improvement and expansion of

4-16  regional parks or the installation of facilities in existing regional

4-17  parks in the city or county.

4-18      (b) Expended for the benefit of the park district or service area

4-19  from which it was collected.

4-20      6.  If a regional park has not been developed or facilities have

4-21  not been installed in an existing regional park within 5 years after

4-22  the date on which 75 percent of the nonresidential construction

4-23  project first became occupied, all money paid by the developer

4-24  pursuant to subsection 2, together with interest at the rate at which

4-25  the city or county has invested the money in the fund, must be

4-26  refunded to the owners of the nonresidential construction project

4-27  on a pro rata basis.

4-28      7.  The limitation of time established pursuant to subsection 6

4-29  is suspended for any period, not to exceed 1 year, during which

4-30  this state or the Federal Government takes any action to protect

4-31  the environment or an endangered species which prohibits, stops

4-32  or delays the development of a regional park or installation of

4-33  facilities in existing regional parks.

4-34      8.  As used in this section, “facilities” means turf, trees,

4-35  irrigation systems, playground apparatus, playing fields, areas to

4-36  be used for organized amateur sports, play areas, picnic areas,

4-37  horseshoe pits and other recreational equipment or appurtenances

4-38  designed to serve the persons who use the regional park in which

4-39  the facilities are located.

4-40      Sec. 8.  1.  The requirement for dedication of land pursuant

4-41  to section 5 of this act and the imposition of a nonresidential

4-42  construction tax pursuant to section 7 of this act are mutually

4-43  exclusive as to any particular nonresidential construction project

4-44  which may be benefited or affected by any such requirement or

4-45  imposition.

5-1  2.  Any governing body determining to provide a regional park

5-2  pursuant to sections 2 to 8, inclusive, of this act must elect, for any

5-3  one period, to follow only one of the procedures provided in these

5-4  sections.

5-5  Sec. 9.  NRS 278B.240 is hereby amended to read as follows:

5-6  278B.240  1.  If an owner is required by a local government,

5-7  as a condition of the approval of the development, to construct or

5-8  dedicate, or both, a portion of the off-site facilities for which impact

5-9  fees other than for a park project are imposed, the off-site facilities

5-10  must be credited against those impact fees.

5-11      2.  If a school district is required by a local government to

5-12  construct or dedicate, or both, a portion of the off-site facilities for

5-13  which impact fees are imposed, the local government shall, upon the

5-14  request of the school district, reimburse or enter into an agreement

5-15  to reimburse the school district for the cost of the off-site facilities

5-16  constructed or dedicated, or both, minus the cost of the off-site

5-17  facilities immediately adjacent to or providing connection to the

5-18  school development which would be required by local ordinance in

5-19  the absence of an ordinance authorizing impact fees.

5-20      3.  If an owner is required by a local government to:

5-21      (a) Pay a residential construction tax pursuant to NRS 278.4983;

5-22      (b) Dedicate land pursuant to NRS 278.4979 , 278.498 and

5-23  278.4981 or otherwise dedicate or improve land, or both, for use as

5-24  a park; [or]

5-25      (c) Pay a nonresidential construction tax pursuant to section 7

5-26  of this act;

5-27      (d) Dedicate land pursuant to section 5 of this act or otherwise

5-28  dedicate or improve land, or both, for use as a regional park; or

5-29      (e) Construct or dedicate a portion of the off-site facilities for

5-30  which impact fees for a park project are imposed,

5-31  the owner is entitled to a credit against the impact fee imposed for

5-32  the park project for the amount of the residential construction tax or

5-33  nonresidential construction tax paid, the fair market value of the

5-34  land dedicated, the cost of any improvements to the dedicated land

5-35  or the cost of the off-site facilities dedicated or constructed, as

5-36  applicable.

5-37      Sec. 10.  NRS 354.59891 is hereby amended to read as

5-38  follows:

5-39      354.59891  1.  As used in this section:

5-40      (a) “Building permit” means the official document or certificate

5-41  issued by the building officer of a local government which

5-42  authorizes the construction of a structure.

5-43      (b) “Building permit basis” means the combination of the rate

5-44  and the valuation method used to calculate the [total] building

5-45  permit fee.

6-1  (c) “Building permit fee” means the [total] fees that must be

6-2  paid before the issuance of a building permit, including , without

6-3  limitation, all permit fees and inspection fees. The term does not

6-4  include, without limitation, fees relating to water, sewer or other

6-5  utilities, residential construction tax[,] imposed pursuant to NRS

6-6  278.4983, nonresidential construction tax imposed pursuant to

6-7  section 7 of this act, tax on residential construction imposed

6-8  pursuant to NRS 387.331, tax for the improvement of

6-9  transportation imposed pursuant to NRS 278.710, any fee imposed

6-10  pursuant to NRS 244.386 or any amount expended to change the

6-11  zoning of the property.

6-12      (d) “Current asset” means any cash maintained in an enterprise

6-13  fund and any interest or other income earned on the money in the

6-14  enterprise fund that, at the end of the current fiscal year, is

6-15  anticipated by a local government to be consumed or converted into

6-16  cash during the next ensuing fiscal year.

6-17      (e) “Current liability” means any debt incurred by a local

6-18  government to provide the services associated with issuing building

6-19  permits that, at the end of the current fiscal year, is determined by

6-20  the local government to require payment within the next ensuing

6-21  fiscal year.

6-22      (f) “Operating cost” means the amount paid by a local

6-23  government for supplies, services, salaries, wages and employee

6-24  benefits to provide the services associated with issuing building

6-25  permits.

6-26      (g) “Working capital” means the excess of current assets over

6-27  current liabilities, as determined by the local government at the end

6-28  of the current fiscal year.

6-29      2.  Except as otherwise provided in subsections 3 and 4, a local

6-30  government shall not increase its building permit basis by more than

6-31  an amount equal to the building permit basis on June 30, 1989,

6-32  multiplied by a percentage equal to the percentage increase in the

6-33  Consumer Price Index from January 1, 1988, to the January 1 next

6-34  preceding the fiscal year for which the calculation is made.

6-35      3.  A local government may submit an application to increase

6-36  its building permit basis by an amount greater than otherwise

6-37  allowable pursuant to subsection 2 to the Nevada Tax Commission.

6-38  The Nevada Tax Commission may allow the increase only if it finds

6-39  that:

6-40      (a) Emergency conditions exist which impair the ability of the

6-41  local government to perform the basic functions for which it was

6-42  created; or

6-43      (b) The building permit basis of the local government is

6-44  substantially below that of other local governments in the State and

6-45  the cost of providing the services associated with the issuance of

7-1  building permits in the previous fiscal year exceeded the total

7-2  revenue received from building permit fees[, excluding any amount

7-3  of residential construction tax collected,] for that fiscal year.

7-4  4.  Upon application by a local government, the Nevada Tax

7-5  Commission shall exempt the local government from the limitation

7-6  on the increase of its building permit basis if:

7-7  (a) The local government creates an enterprise fund exclusively

7-8  for building permit fees;

7-9  (b) Any interest or other income earned on the money in the

7-10  enterprise fund is credited to the fund;

7-11      (c) Except as otherwise provided in subsection 5, the local

7-12  government maintains a balance of unreserved working capital in

7-13  the enterprise fund that does not exceed an amount equal to 9

7-14  months’ operating costs for the program for the issuance of building

7-15  permits of the local government; and

7-16      (d) The local government does not use any of the money in the

7-17  enterprise fund for any purpose other than the actual direct and

7-18  indirect costs of the program for the issuance of building permits,

7-19  including, without limitation, the cost of checking plans, issuing

7-20  permits, inspecting buildings and administering the program. The

7-21  Committee on Local Government Finance shall adopt regulations

7-22  governing the permissible expenditures from an enterprise fund

7-23  pursuant to this paragraph.

7-24      5.  In addition to the balance of unreserved working capital

7-25  authorized pursuant to subsection 4, the local government may

7-26  maintain in an enterprise fund created pursuant to this section an

7-27  amount of working capital for the following purposes:

7-28      (a) An amount sufficient to pay the debt service for 1 year on

7-29  any debt incurred by the local government to provide the services

7-30  associated with issuing building permits;

7-31      (b) An amount that does not exceed the total amount of

7-32  expenditures for the program for the issuance of building permits of

7-33  the local government set forth in the capital improvement plan of the

7-34  local government prepared pursuant to NRS 354.5945 for the

7-35  current fiscal year; and

7-36      (c) An amount that does not exceed 4 percent of the annual

7-37  operating costs of the program for the issuance of building permits

7-38  of the local government which must be used to pay for unanticipated

7-39  capital replacement.

7-40      6.  Any amount in an enterprise fund created pursuant to this

7-41  section that is designated for special use, including, without

7-42  limitation, prepaid fees and any other amount subject to a

7-43  contractual agreement, must be identified as a restricted asset and

7-44  must not be included as a current asset in the calculation of working

7-45  capital.

8-1  7.  If a balance in excess of the amount authorized pursuant to

8-2  subsections 4 and 5 is maintained in an enterprise fund created

8-3  pursuant to this section at the close of 2 consecutive fiscal years, the

8-4  local government shall reduce the building permit fees it charges by

8-5  an amount that is sufficient to ensure that the balance in the

8-6  enterprise fund at the close of the fiscal year next following those 2

8-7  consecutive fiscal years does not exceed the amount authorized

8-8  pursuant to subsections 4 and 5.

8-9  Sec. 11.  This act becomes effective on July 1, 2003.

 

8-10  H