Assembly Bill No. 229–Assemblymen Goicoechea, Sherer, Carpenter, Christensen, Collins, Conklin, Geddes, Grady, Griffin, Hardy, McCleary and Weber

 

March 4, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Increases amount of tax that county of origin
may impose on certain transfers of water. (BDR 48‑1083)

 

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 water; increasing the amount of the tax that a county of origin may impose on certain transfers of water; 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. NRS 533.438 is hereby amended to read as follows:

1-2  533.438  1.  Except as otherwise provided in subsection 4, if

1-3  an appropriation of ground water pursuant to a permit to appropriate

1-4  ground water results in the transfer to and beneficial use of water in

1-5  a county in this state other than the county in which the water is

1-6  appropriated or in another state, the county of origin may impose a

1-7  tax of [$6] $60 per acre-foot per year on the transfer.

1-8  2.  A county of origin shall not impose a tax pursuant to

1-9  subsection 1 without the prior approval of the State Engineer. The

1-10  county of origin shall notify the State Engineer in writing of its

1-11  intent to impose the tax. The State Engineer shall review the notice

1-12  of intent to impose the tax to determine:

1-13      (a) Whether the appropriation of ground water pursuant to the

1-14  permit specified in subsection 1 results in a transfer to and beneficial

1-15  use of water in a county in this state other than the county of origin

1-16  or in another state; and

2-1  (b) The amount of water, if any, that is:

2-2       (1) Subject to the proposed tax because of that transfer and

2-3  beneficial use; or

2-4       (2) Not subject to the proposed tax pursuant to subsection 4.

2-5  3.  Within 30 days after reviewing the notice of intent to impose

2-6  the tax, the State Engineer shall send a written notice to the county

2-7  of origin that includes the results of his review. If the State Engineer

2-8  determines that the appropriation of ground water pursuant to the

2-9  permit results in a transfer to and beneficial use of water in a county

2-10  in this state other than the county of origin or in another state, the

2-11  State Engineer shall include in the notice the amount of water that is

2-12  subject to the proposed tax. The county may, upon such a

2-13  determination, impose the tax on the transfer.

2-14      4.  A tax may not be imposed pursuant to this section on water

2-15  that is appropriated and beneficially used pursuant to a permit to

2-16  appropriate ground water which is issued for a point of diversion

2-17  and a place of beneficial use in the county of origin and which, after

2-18  the water is diverted and beneficially used, is discharged or migrates

2-19  into a county in this state other than the county of origin or into

2-20  another state.

2-21      5.  All money collected from a tax imposed pursuant to this

2-22  section must be deposited in a trust fund for the county. The

2-23  principal and interest of the trust fund may be used by the county

2-24  only for the purposes of economic development, health care and

2-25  education.

2-26      6.  For the purposes of this section, if a basin includes land

2-27  lying in more than one county, each county any part of whose land

2-28  is included is a county of origin to the extent of the proportionate

2-29  amount of water transferred from it. The State Engineer shall

2-30  determine the respective proportions.

2-31      7.  As used in this section:

2-32      (a) A “basin” is one designated by the State Engineer for the

2-33  purposes of chapter 534 of NRS.

2-34      (b) “Origin” means the place where water is taken from

2-35  underground.

2-36      Sec. 2.  1.  The amendatory provisions of this act apply to any

2-37  transfer to and beneficial use of water in a county in this state other

2-38  than the county of origin or in another state that occurs after the

2-39  effective date of this act, including, without limitation, such a

2-40  transfer and beneficial use of water resulting from an appropriation

2-41  of ground water pursuant to a permit to appropriate ground water

2-42  that was issued by the State Engineer based on an application for an

2-43  interbasin transfer of ground water that was filed with the State

2-44  Engineer before the effective date of this act.

2-45      2.  As used in this section:

3-1  (a) “Interbasin transfer of ground water” has the meaning

3-2  ascribed to it in NRS 533.370.

3-3  (b) “Origin” means the place where water is taken from

3-4  underground.

3-5  Sec. 3.  This act becomes effective upon passage and approval.

 

3-6  H