SB237_R2

Senate Bill No. 237–Senators Raggio and Titus

Joint Sponsors: Assemblymen Perkins and Hettrick

CHAPTER..........

AN ACT relating to taxation; carrying out certain advisory questions relating to funding for regional transportation; revising the maximum rate, allocation or use of certain taxes for regional transportation; authorizing certain counties to impose additional taxes on motor vehicle fuel and to increase certain impact fees for new development; 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 365.190 is hereby amended to read as follows:

365.190 1. [Subject to the provisions of subsection 3, in] In

addition to any other tax provided for in this chapter, there is hereby

levied an excise tax of 1.75 cents per gallon on all motor vehicle

fuel, except aviation fuel.

2. The tax imposed pursuant to this section must be collected

by the supplier in the manner provided in this chapter. Upon the

collection of the tax by the supplier, the purchaser of the fuel shall

provide to the supplier a statement that sets forth the number of

gallons of fuel that will be sold to retailers in each county in this

state. The tax must be paid to the Department and delivered by the

Department to the State Treasurer. When the tax is paid to the

Department, the supplier shall provide to the Department a copy of

the statement provided to the supplier by the purchaser pursuant to

this subsection.

[3. The provisions of this section shall be deemed to be

optional. The board of county commissioners of any county may

decline to accept the additional tax levied pursuant to this section by

the adoption of a resolution passed before July 1, 1947, which must

be reconsidered and passed once each year within 60 days before

July 1 of each year as long as the board of county commissioners

desires so to act. Upon the adoption of such a resolution no tax may

be collected.]

Sec. 2. NRS 365.545 is hereby amended to read as follows:

365.545 1. The proceeds of all taxes on fuel for jet or

turbine-powered aircraft imposed pursuant to the provisions of 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 must] Except as otherwise provided

in subsection 3, the money allocated pursuant to subsection 1:

(a) Must be used by the governmental entity receiving it to pay

the cost of:

[(a)] (1) Transportation projects related to airports, including

access on the ground to airports;

[(b) Payment]

(2) The payment of principal and interest on notes, bonds or

other obligations incurred to fund projects described in [paragraph

(a);

(c)] subparagraph (1);

(3) Promoting the use of an airport, including, without

limitation, increasing the number and availability of flights at the

airport;

[(d)] (4) Contributing money to the Trust Fund for Aviation

created by NRS 494.048; or

[(e)] (5) Any combination of those purposes[.

3. Money so received may] ; and

(b) 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 [the provisions of

subsection 3] this paragraph may be treated as pledged revenues of

the project for the purposes of subsection 3 of NRS 350.020.

3. Any money allocated pursuant to subsection 1 to a county

whose population is 400,000 or more and in which a regional

transportation commission has been created pursuant to chapter

373 of NRS, from the proceeds of the tax imposed pursuant to

subparagraph (1) of paragraph (b) of subsection 1 of NRS 365.170

on fuel for jet or turbine-powered aircraft sold, distributed or used

in that county, excluding the proceeds of any tax imposed

pursuant to NRS 365.203, may, in addition to the uses authorized

pursuant to subsection 2, be allocated by the county to that

regional transportation commission. The money allocated

pursuant to this subsection to a regional transportation

commission:

(a) Must be used by the regional transportation commission:

(1) To pay the cost of transportation projects described in a

regional plan for transportation established by that regional

transportation commission pursuant to NRS 373.1161;

(2) For the payment of principal and interest on notes,

bonds or other obligations incurred to fund projects described in

subparagraph (1); or

(3) For any combination of those purposes; and

(b) May also be pledged for the payment of general or special

obligations issued by the county at the request of the regional

transportation commission to fund projects described in

paragraph (a). Any money pledged pursuant to this paragraph

may be treated as pledged revenues of the project for the purposes

of subsection 3 of NRS 350.020.

Sec. 3. Chapter 373 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. In a county whose population is 100,000 or more but less

than 400,000:

(a) The board may by ordinance impose:

(1) An excise tax on each gallon of motor vehicle fuel,

except aviation fuel, sold in the county in an amount equal to the

sum obtained by multiplying the amount of the tax imposed

pursuant to NRS 365.180 by the lesser of 4.5 percent or the

average percentage of increase in the Consumer Price Index for

West Urban Consumers for the preceding 5 years; and

(2) An annual increase in the tax imposed pursuant to

subparagraph (1), on the first day of each fiscal year following the

fiscal year in which that tax becomes effective, in an amount equal

to the sum of the tax imposed pursuant to NRS 365.180 and the

tax imposed pursuant to subparagraph (1) during the preceding

fiscal year, multiplied by the lesser of 4.5 percent or the average

percentage of increase in the Consumer Price Index for West

Urban Consumers for the preceding 5 years.

(b) The board may by ordinance impose:

(1) An excise tax on each gallon of motor vehicle fuel,

except aviation fuel, sold in the county in an amount equal to the

sum obtained by multiplying the amount of the tax imposed

pursuant to NRS 365.190 by the lesser of 4.5 percent or the

average percentage of increase in the Consumer Price Index for

West Urban Consumers for the preceding 5 years; and

(2) An annual increase in the tax imposed pursuant to

subparagraph (1), on the first day of each fiscal year following the

fiscal year in which that tax becomes effective, in an amount equal

to the sum of the tax imposed pursuant to NRS 365.190 and the

tax imposed pursuant to subparagraph (1) during the preceding

fiscal year, multiplied by the lesser of 4.5 percent or the average

percentage of increase in the Consumer Price Index for West

Urban Consumers for the preceding 5 years.

(1) An excise tax on each gallon of motor vehicle fuel,

except aviation fuel, sold in the county in an amount equal to the

sum obtained by multiplying the amount of the tax imposed

pursuant to NRS 365.192 by the lesser of 4.5 percent or the

average percentage of increase in the Consumer Price Index for

West Urban Consumers for the preceding 5 years; and

(2) An annual increase in the tax imposed pursuant to

subparagraph (1), on the first day of each fiscal year following the

fiscal year in which that tax becomes effective, in an amount equal

to the sum of the tax imposed pursuant to NRS 365.192 and the

tax imposed pursuant to subparagraph (1) during the preceding

fiscal year, multiplied by the lesser of 4.5 percent or the average

percentage of increase in the Consumer Price Index for West

Urban Consumers for the preceding 5 years.

(d) If the board imposes a tax pursuant to paragraph (b) of

subsection 1 of NRS 373.030, the board may by ordinance impose:

(1) An excise tax on each gallon of motor vehicle fuel,

except aviation fuel and leaded racing fuel, sold in the county in

an amount equal to the sum obtained by multiplying the amount

of the tax imposed pursuant to paragraph (b) of subsection 1 of

NRS 373.030 by the lesser of 4.5 percent or the average

percentage of increase in the Consumer Price Index for West

Urban Consumers for the preceding 5 years; and

(2) An annual increase in the tax imposed pursuant to

subparagraph (1), on the first day of each fiscal year following the

fiscal year in which that tax becomes effective, in an amount equal

to the sum of the tax imposed pursuant to paragraph (b) of

subsection 1 of NRS 373.030 and the tax imposed pursuant to

subparagraph (1) during the preceding fiscal year, multiplied by

the lesser of 4.5 percent or the average percentage of increase in

the Consumer Price Index for West Urban Consumers for the

preceding 5 years.

2. Any ordinance authorized by this section may be adopted

in combination with any other ordinance authorized by this

section. Each tax imposed pursuant to this section is in addition to

any other motor vehicle fuel taxes imposed pursuant to the

provisions of this chapter and chapter 365 of NRS. Upon adoption

of an ordinance authorized by this section, no further action by

the board is necessary to effectuate the annual increases.

3. Any ordinance adopted pursuant to this section must:

(a) Become effective on the first day of the first calendar

quarter beginning not less than 90 days after the adoption of the

ordinance; and

(b) If the board has created a regional transportation

commission in the county, require the commission:

(1) To review, at a public meeting conducted after the

provision of public notice and before the effective date of each

annual increase imposed by the ordinance:

(I) The amount of that increase and the accuracy of its

calculation;

(II) The amounts of any annual increases imposed by

the ordinance in previous years and the revenue collected

pursuant to those increases;

(III) Any improvements to the regional system of

transportation resulting from revenue collected pursuant to any

annual increases imposed by the ordinance in previous years; and

(IV) Any other information relevant to the effect of the

annual increases on the public; and

(2) To submit to the board any information the commission

receives suggesting that the annual increase should be adjusted.

4. Any ordinance adopted pursuant to:

(a) Paragraph (a) of subsection 1 must:

(1) Require the allocation, disbursement and use in the

county of the proceeds of the tax imposed pursuant to that

ordinance in the same proportions and manner as the allocation,

disbursement and use in the county of the proceeds of the tax

imposed pursuant to NRS 365.180; and

(2) Expire by limitation on the effective date of any

increase or decrease in the amount of the tax imposed pursuant to

NRS 365.180 which becomes effective after the adoption of that

ordinance.

(b) Paragraph (b) of subsection 1 must:

(1) Require the allocation, disbursement and use in the

county of the proceeds of the tax imposed pursuant to that

ordinance in the same proportions and manner as the allocation,

disbursement and use in the county of the proceeds of the tax

imposed pursuant to NRS 365.190; and

(2) Expire by limitation on the effective date of any

increase or decrease in the amount of the tax imposed pursuant to

NRS 365.190 which becomes effective after the adoption of that

ordinance.

(1) Require the allocation, disbursement and use in the

county of the proceeds of the tax imposed pursuant to that

ordinance in the same proportions and manner as the allocation,

disbursement and use in the county of the proceeds of the tax

imposed pursuant to NRS 365.192; and

(2) Expire by limitation on the effective date of any

increase or decrease in the amount of the tax imposed pursuant to

NRS 365.192 which becomes effective after the adoption of that

ordinance.

(d) Paragraph (d) of subsection 1 must:

(1) Require the allocation, disbursement and use in the

county of the proceeds of the tax imposed pursuant to that

ordinance in the same proportions and manner as the allocation,

disbursement and use in the county of the proceeds of the tax

imposed pursuant to paragraph (b) of subsection 1 of NRS

373.030; and

(2) Expire by limitation on the effective date of any

subsequent ordinance increasing or decreasing the amount of the

tax imposed in that county pursuant to paragraph (b) of

subsection 1 of NRS 373.030.

Sec. 4. NRS 373.070 is hereby amended to read as follows:

373.070 Any motor vehicle fuel tax ordinance enacted under

this chapter must include provisions in substance as follows:

1. A provision imposing the additional excise tax and stating

the amount of the tax per gallon of fuel.

2. Provisions identical to those contained in chapter 365 of

NRS on the date of enactment of the ordinance, insofar as

applicable, except that the name of the county as taxing agency must

be substituted for that of the State and that an additional supplier’s

license is not required.

3. A provision that all amendments to chapter 365 of NRS

subsequent to the date of enactment of the ordinance, not

inconsistent with this chapter, automatically become a part of the

motor vehicle fuel tax ordinance of the county.

4. A provision that the county shall contract [prior to] before

the effective date of the county motor vehicle fuel tax ordinance

with the Department to perform all functions incident to the

administration or operation of the motor vehicle fuel tax ordinance

of the county[.] , including, if the ordinance is enacted pursuant

to section 3 of this act, the calculation of each annual increase in

the tax imposed pursuant to the ordinance.

Sec. 5. NRS 373.075 is hereby amended to read as follows:

373.075 Any ordinance amending [the] a motor fuel tax

ordinance enacted pursuant to this chapter shall include a

provision in substance that the county shall amend the contract

made under subsection 4 of NRS 373.070 by a contract made

between the county and the State acting by and through the

Department [prior to] before the effective date of such amendatory

ordinance, unless the county determines with the written

concurrence of the commission that no such amendment of the

contract is necessary or desirable.

Sec. 6. NRS 373.090 is hereby amended to read as follows:

373.090 1. For the purpose of [the] each tax imposed by an

ordinance enacted pursuant to this chapter, motor vehicle fuel is sold

at the place where it is distributed from a terminal.

2. As used in this section, “terminal” has the meaning ascribed

to it in NRS 365.088.

Sec. 7. NRS 373.110 is hereby amended to read as follows:

373.110 [1. Except as provided in NRS 373.119, all] All the

net proceeds of the county motor vehicle fuel tax :

1. Imposed pursuant to paragraph (b) of subsection 1 of NRS

373.030 or paragraph (d) of subsection 1 of section 3 of this act

which are received by the county pursuant to NRS 373.080 [shall]

must, except as otherwise provided in NRS 373.119, be deposited

by the county treasurer in a fund to be known as the regional street

and highway fund in the county treasury, and disbursed only in

accordance with the provisions of this chapter.

[2.] After July 1, 1975, the regional street and highway fund

must be accounted for as a separate fund and not as a part of any

other fund.

2. Imposed pursuant to paragraph (a), (b) or (c) of subsection

1 of section 3 of this act which are received by the county pursuant

to NRS 373.080 must be allocated, disbursed and used as provided

in the ordinance imposing the tax.

Sec. 8. NRS 373.119 is hereby amended to read as follows:

373.119 1. Except to the extent pledged before July 1, 1985,

the board may use that portion of the revenue collected pursuant to

the provisions of this chapter from any taxes imposed pursuant to

paragraph (b) of subsection 1 of NRS 373.030 or paragraph (d) of

subsection 1 of section 3 of this act that represents collections from

the sale of fuel for use in boats at marinas in the county to make

capital improvements or to conduct programs to encourage safety in

boating. If the county does not control a body of water, where an

improvement or program is appropriate, the board may contract with

an appropriate person or governmental organization for the

improvement or program.

2. Each marina shall report monthly to the Department

the number of gallons of motor vehicle fuel sold for use in boats.

The report must be made on or before the 25th day of each month

for sales during the preceding month.

Sec. 9. NRS 373.130 is hereby amended to read as follows:

373.130 1. Money for the payment of the cost of a project

within the area embraced by a regional plan for transportation

established pursuant to NRS 373.1161 may be obtained by the

issuance of revenue bonds and other revenue securities as provided

in subsection 2, or, subject to any pledges, liens and other

contractual limitations made pursuant to the provisions of this

chapter, may be obtained by direct distribution from the regional

street and highway fund, except to the extent any such use is

prevented by the provisions of NRS 373.150, or may be obtained

both by the issuance of such securities and by such direct

distribution, as the board may determine. Money for street and

highway construction outside the area embraced by the plan may be

distributed directly from the regional street and highway fund as

provided in NRS 373.150.

2. The board may, after the enactment of an ordinance as

authorized by paragraph (b) of subsection 1 of NRS 373.030[,] or

paragraph (d) of subsection 1 of section 3 of this act, issue revenue

bonds and other revenue securities, on the behalf and in the name of

the county:

(a) The total of all of which, issued and outstanding at any one

time, must not be in an amount requiring a total debt service in

excess of the estimated receipts to be derived from the [tax] taxes

imposed pursuant to the provisions of paragraph (b) of subsection 1

of NRS 373.030[;] and paragraph (d) of subsection 1 of section 3

of this act;

(b) Which must not be general obligations of the county or a

charge on any real estate therein; and

pledge authorized by this chapter of the receipts from the motor

vehicle fuel taxes designated in this chapter, except such portion of

the receipts as may be required for the direct distributions

authorized by NRS 373.150.

3. A county is authorized to issue bonds without the necessity

of their being authorized at any election in such manner and with

such terms as provided in this chapter.

4. Subject to the provisions of this chapter, for any project

authorized therein , the board of any county may, on the behalf and

in the name of the county, borrow money, otherwise become

obligated, and evidence obligations by the issuance of bonds and

other county securities, and in connection with the undertaking or

project, the board may otherwise proceed as provided in the Local

Government Securities Law.

5. All such securities constitute special obligations payable

from the net receipts of the motor vehicle fuel taxes designated in

this chapter except as otherwise provided in NRS 373.150, and the

pledge of revenues to secure the payment of the securities must be

limited to [the] those net receipts.

6. Except for:

(a) Any notes or warrants which are funded with the proceeds of

interim debentures or bonds;

(b) Any interim debentures which are funded with the proceeds

of bonds;

bonds;

(d) Any bonds which are reissued or which are refunded; and

(e) The use of any profit from any investment and reinvestment

for the payment of any bonds or other securities issued pursuant to

the provisions of this chapter,

all bonds and other securities issued pursuant to the provisions of

this chapter must be payable solely from the proceeds of motor

vehicle fuel taxes collected by or remitted to the county pursuant to

chapter 365 of NRS, as supplemented by this chapter. Receipts of

the taxes levied in NRS 365.180 and 365.190 and pursuant to

paragraphs (a) and (b) of subsection 1 of section 3 of this act may

be used by the county for the payment of securities issued pursuant

to the provisions of this chapter and may be pledged therefor. If

during any period any securities payable from these tax proceeds are

outstanding, the tax receipts must not be used directly for the

construction, maintenance and repair of any streets, roads or other

highways nor for any purchase of equipment therefor, and the

receipts of the tax levied in NRS 365.190 must not be apportioned

pursuant to subsection 2 of NRS 365.560 unless, at any time the tax

receipts are so apportioned, provision has been made in a timely

manner for the payment of such outstanding securities as to the

principal of, any prior redemption premiums due in connection with,

and the interest on the securities as they become due, as provided in

the securities, the ordinance authorizing their issuance, and any

other instrument appertaining to the securities.

7. The ordinance authorizing the issuance of any bond or other

revenue security hereunder must describe the purpose for which it is

issued at least in general terms and may describe the purpose in

detail. This section does not require the purpose so stated to be set

forth in the detail in which the project approved by the commission

pursuant to subsection 2 of NRS 373.140 is stated, or prevent the

modification by the board of details as to the purpose stated in the

ordinance authorizing the issuance of any bond or other security

after its issuance, subject to approval by the commission of the

project as so modified.

Sec. 10. NRS 373.140 is hereby amended to read as follows:

373.140 1. After the enactment of an ordinance as authorized

in NRS 373.030, all street and highway construction, surfacing or

resurfacing projects in the county which are proposed to be financed

from [the] a county motor vehicle fuel tax imposed pursuant to

paragraph (b) of subsection 1 of NRS 373.030 or paragraph (d) of

subsection 1 of section 3 of this act must first be submitted to the

regional transportation commission.

2. [Where] If the project is within the area covered by a

regional plan for transportation established pursuant to NRS

373.1161, the commission shall evaluate it in terms of:

(a) The priorities established by the plan;

(b) The relation of the proposed work to other projects already

constructed or authorized;

proposed; and

(d) The money available.

If the commission approves the project, the board may authorize the

project, using all or any part of the proceeds of the county motor

vehicle fuel tax authorized [by this chapter,] pursuant to paragraph

(b) of subsection 1 of NRS 373.030 or paragraph (d) of subsection

1 of section 3 of this act, except to the extent any such use is

prevented by the provisions for direct distribution required by NRS

373.150 or is prevented by any pledge to secure the payment of

outstanding bonds, other securities or other obligations incurred

hereunder, and other contractual limitations appertaining to such

obligations as authorized by NRS 373.160, and the proceeds of

revenue bonds or other securities issued or to be issued as provided

in NRS 373.130. Except as otherwise provided in subsection 3, if

the board authorizes the project, the responsibilities for letting

construction and other necessary contracts, contract administration,

supervision and inspection of work and the performance of other

duties related to the acquisition of the project must be specified in

written agreements executed by the board and the governing bodies

of the cities and towns within the area covered by a regional plan for

transportation established pursuant to NRS 373.1161.

3. In a county in which two or more governmental entities are

represented on the commission, the governing bodies of those

governmental entities may enter into a written master agreement that

allows a written agreement described in subsection 2 to be executed

by only the commission and the governmental entity that receives

funding for the approved project. The provisions of a written master

agreement must not be used until the governing body of each

governmental entity represented on the commission ratifies the

written master agreement.

4. [Where] If the project is outside the area covered by a plan,

the commission shall evaluate it in terms of:

(a) Its relation to the regional plan for transportation established

pursuant to NRS 373.1161 if any;

(b) The relation of the proposed work to other projects

constructed or authorized;

proposed by the same city or town; and

(d) The availability of money.

If the commission approves the project, the board shall direct the

county treasurer to distribute the sum approved to the city or town

requesting the project, in accordance with NRS 373.150.

5. In counties whose population is less than 100,000, the

commission shall certify the adoption of the plan in compliance with

subsections 2 and 4.

Sec. 11. NRS 373.160 is hereby amended to read as follows:

373.160 1. The ordinance or ordinances providing for the

issuance of any bonds or other securities issued hereunder payable

from the receipts from the motor vehicle fuel excise taxes herein

designated may at the discretion of the board, in addition to

covenants and other provisions authorized in the Local Government

Securities Law, contain covenants or other provisions as to the

pledge of and the creation of a lien upon the receipts of the [tax]

taxes collected for the county [hereunder (] pursuant to paragraph

(b) of subsection 1 of NRS 373.030 and paragraph (d) of

subsection 1 of section 3 of this act, excluding any tax proceeds to

be distributed directly under the provisions of NRS 373.150 , [)] or

the proceeds of the bonds or other securities pending their

application to defray the cost of the project, or both such tax

proceeds and security proceeds, to secure the payment of revenue

bonds or other securities issued hereunder.

2. If the board determines in any ordinance authorizing the

issuance of any bonds or other securities hereunder that the proceeds

of the [tax] taxes levied and collected pursuant to [the County Motor

Vehicle Fuel Tax Law] paragraph (b) of subsection 1 of NRS

373.030 and paragraph (d) of subsection 1 of section 3 of this act

are sufficient to pay all bonds and securities, including the proposed

issue, from the proceeds thereof, the board may additionally secure

the payment of any bonds or other securities issued pursuant to the

ordinance hereunder by a pledge of and the creation of a lien upon

not only the proceeds of any motor vehicle fuel tax authorized at the

time of the issuance of such securities to be used for such payment

in subsection 6 of NRS 373.130, but also the proceeds of any such

tax thereafter authorized to be used or pledged , or used and pledged

, for the payment of such securities, whether such tax be levied or

collected by the county, the State of Nevada, or otherwise, or be

levied in at least an equivalent value in lieu of any such tax existing

at the time of the issuance of such securities or be levied in

supplementation thereof.

3. The pledges and liens authorized by subsections 1 and 2 [of

this section shall] extend to the proceeds of any tax collected for use

by the county on any motor vehicle fuel so long as any bonds or

other securities issued hereunder remain outstanding and [shall not

be] are not limited to any type or types of motor vehicle fuel in use

when the bonds or other securities [shall be] are issued.

Sec. 12. NRS 377A.020 is hereby amended to read as follows:

377A.020 1. The board of county commissioners of [any] :

(a) Any county may enact an ordinance imposing a tax for a

public transit system , [or] for the construction, maintenance and

repair of public roads, for the improvement of air quality or [both,]

for any combination of those purposes pursuant to NRS 377A.030.

[The board of county commissioners of any]

(b) Any county whose population is less than 400,000 may enact

an ordinance imposing a tax to promote tourism pursuant to

NRS 377A.030.

2. An ordinance enacted pursuant to this chapter may not

become effective before a question concerning the imposition of the

tax is approved by a majority of the registered voters of the county

voting upon the question which the board may submit to the voters

at any general election. A county may combine the questions for a

public transit system , [and] for the construction, maintenance and

repair of public roads and for the improvement of air quality with

questions submitted pursuant to NRS 244.3351, 278.710 or 371.045,

or any combination thereof. The board shall also submit to the

voters at a general election any proposal to increase the rate of the

tax or change the previously approved uses for the proceeds of

the tax.

3. Any ordinance enacted pursuant to this section must specify

the date on which the tax must first be imposed or on which an

increase in the rate of the tax becomes effective, which must not be

earlier than the first day of the second calendar month following the

approval of the question by the voters.

Sec. 13. NRS 377A.030 is hereby amended to read as follows:

377A.030 Except as otherwise provided in NRS 377A.110, any

ordinance enacted under this chapter must include provisions in

substance as follows:

1. A provision imposing a tax upon retailers at the rate of not

more than:

(a) For a tax to promote tourism, one-quarter of 1 percent; or

(b) For a tax to establish and maintain a public transit system ,

[or] for the construction, maintenance and repair of public roads, for

the improvement of air quality or [both,] for any combination of

those purposes, one-half of 1 percent,

of the gross receipts of any retailer from the sale of all tangible

personal property sold at retail, or stored, used or otherwise

consumed, in a county.

2. Provisions substantially identical to those contained in

chapter 374 of NRS, insofar as applicable.

3. A provision that all amendments to chapter 374 of NRS after

the date of enactment of the ordinance, not inconsistent with this

chapter, automatically become a part of [an ordinance imposing the

tax for public mass transportation and construction of public roads

or the tax to promote tourism in the county.] the ordinance.

4. A provision that the county shall contract before the

effective date of the ordinance with the Department to perform all

functions incident to the administration or operation of the tax in the

county.

5. A provision that exempts from the tax or any increase in the

tax the gross receipts from the sale of, and the storage, use or other

consumption in a county of, tangible personal property used for the

performance of a written contract for the construction of an

improvement to real property, entered into on or before the effective

date of the tax or the increase in the tax, or for which a binding bid

was submitted before that date if the bid was afterward accepted, if

under the terms of the contract or bid the contract price or bid

amount cannot be adjusted to reflect the imposition of the tax or the

increase in the tax.

Sec. 14. NRS 377A.070 is hereby amended to read as follows:

377A.070 1. The county treasurer shall deposit the money

received from the State Controller pursuant to NRS 377A.050 for a

public transit system , [or] for the construction, maintenance and

repair of public roads, for the improvement or air quality or [both,]

for any combination of those purposes in the county treasury for

credit to a fund to be known as the public transit fund.

2. The public transit fund must be accounted for as a separate

fund and not as a part of any other fund.

Sec. 15. NRS 377A.080 is hereby amended to read as follows:

377A.080 1. In any county in which a tax for a public transit

system , [or] for the construction, maintenance and repair of public

roads, for the improvement of air quality or [both,] for any

combination of those purposes has been imposed, the board shall

by ordinance create a regional transportation commission pursuant

to chapter 373 of NRS if one has not already been created under that

chapter. [Where] If a regional transportation commission has

already been created under that chapter, that commission may also

exercise the powers conferred by this section.

2. The regional transportation commission may:

(a) Appropriate money in the public transit fund accumulated by

a county to provide a public transit system for that county if the

system is included in a regional transportation plan adopted by the

regional transportation commission;

(b) Appropriate money to provide transportation or to support

agencies which are providing transportation for the elderly and

persons with disabilities, if the services are consistent with the

regional transportation plan;

administration and operation of the public transit system, including

the establishment of fares for the system; and

(d) Adopt regulations for the operation of systems or services

provided by the commission and for systems or services financed by

the commission and provided by an agency or a private contractor.

3. The commission may draw money out of the public transit

fund only for:

(a) The establishment and maintenance of a public transit

system for the county and for the support of other activities, services

and programs related to transportation which are included in a

regional transportation plan adopted by the commission;

(b) The construction, maintenance and repair of public roads;

agency which administers the program established in the county

pursuant to NRS 445B.500, to support activities, services and

programs related to the improvement of air quality;

(d) The payment of principal and interest on notes, bonds or

other securities issued to provide [funds] money for the cost of

projects described in paragraphs (a) [and (b); or

(d)] , (b) and (c); or

(e) Any combination of those purposes.

Sec. 16. NRS 377A.090 is hereby amended to read as follows:

377A.090 1. Money for the payment of the cost of

establishing and maintaining a public transit system , [or] for the

construction, maintenance and repair of public roads, for the

improvement of air quality or [both,] for any combination of those

purposes may be obtained by the issuance of bonds and other

securities as provided in subsection 2, or, subject to any pledges,

liens and other contractual limitations made pursuant to this chapter,

may be obtained by direct distribution from the public transit fund,

or may be obtained both by the issuance of such securities and by

such direct distribution as the board may determine.

2. The board may, after the enactment of an ordinance

[imposing a tax for a public transit system or for the construction,

maintenance and repair of public roads, or both, as] authorized by

paragraph (a) of subsection 1 of NRS 377A.020, 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 receipts

from the tax [for a public transit system or for the construction,

maintenance and repair of public roads, or both.] imposed by that

ordinance.

3. The ordinance authorizing the issuance of any bond or other

security must describe the purpose for which it is issued.

Sec. 17. NRS 377A.100 is hereby amended to read as follows:

377A.100 1. Each ordinance providing for the issuance of

any bond or security issued under this chapter payable from the

receipts of the tax [for a public transit system or for the construction,

maintenance and repair of public roads, or both,] imposed pursuant

to paragraph (b) of subsection 1 of NRS 377A.030 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 receipts of the tax or upon the

proceeds of any bond or security pending their application to defray

the cost of establishing or operating a public transit system,

constructing, maintaining or repairing public roads or improving

air quality, or both tax proceeds and security proceeds, to secure the

payment of any bond or security issued under 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. 18. NRS 377A.110 is hereby amended to read as follows:

377A.110 1. Subject to the provisions of subsection 2, the

board may gradually reduce the amount of any tax imposed

pursuant to this chapter for a public transit system , [or] for the

construction, maintenance and repair of public roads, for the

improvement of air quality or [both,] for any combination of those

purposes as revenue from the operation of [the public transit

system] those projects permits.

2. No such taxing ordinance may be repealed or amended or

otherwise directly or indirectly modified in such a manner as to

impair any outstanding bonds issued under this chapter, or other

obligations incurred under this chapter, until all obligations, for

which revenues from the ordinance have been pledged or otherwise

made payable from such revenues pursuant to this chapter, have

been discharged in full, but the board may at any time dissolve the

regional transportation commission and provide that no further

obligations be incurred thereafter.

Sec. 19. NRS 278.710 is hereby amended to read as follows:

278.710 1. A board of county commissioners may by

ordinance, but not as in a case of emergency, impose a tax for the

improvement of transportation on the privilege of new residential,

commercial, industrial and other development pursuant to paragraph

(a) or (b) as follows:

(a) After receiving the approval of a majority of the registered

voters of the county voting on the question at a special election or

the next primary or general election, the board of county

commissioners may impose the tax throughout the county, including

any such development in incorporated cities in the county. A county

may combine this question with a question submitted pursuant to

NRS 244.3351, 371.045 or 377A.020, or any combination thereof.

(b) After receiving the approval of a majority of the registered

voters who reside within the boundaries of a transportation district

created pursuant to NRS 244A.252, voting on the question at a

special or general district election or primary or general state

election, the board of county commissioners may impose the tax

within the boundaries of the district. A county may combine this

question with a question submitted pursuant to NRS 244.3351.

2. A special election may be held only if the board of county

commissioners determines, by a unanimous vote, that an emergency

exists. The determination made by the board of county

commissioners is conclusive unless it is shown that the board acted

with fraud or a gross abuse of discretion. An action to challenge the

determination made by the board must be commenced within 15

days after the board’s determination is final. As used in this

subsection, “emergency” means any unexpected occurrence or

combination of occurrences which requires immediate action by the

board of county commissioners to prevent or mitigate a substantial

financial loss to the county or to enable the board of county

commissioners to provide an essential service to the residents of the

county.

3. The tax imposed pursuant to this section must be at such a

rate and based on such criteria and classifications as the board of

county commissioners determines to be appropriate. Each such

determination is conclusive unless it constitutes an arbitrary and

capricious abuse of discretion, but the tax imposed must not :

(a) For any fiscal year beginning:

(1) Before July 1, 2003, exceed $500 ;

(2) On or after July 1, 2003, and before July 1, 2005,

exceed $650;

(3) On or after July 1, 2005, and before July 1, 2010,

exceed $700;

(4) On or after July 1, 2010, and before July 1, 2015,

exceed $800;

(5) On or after July 1, 2015, and before July 1, 2020,

exceed $900; or

(6) On or after July 1, 2020, exceed $1,000,

per single-family dwelling unit of new residential development, or

the equivalent thereof as determined by the board of county

commissioners[, or 50 cents] ; or

(b) For any fiscal year beginning:

(1) Before July 1, 2003, $0.50;

(2) On or after July 1, 2003, and before July 1, 2005,

exceed $0.65;

(3) On or after July 1, 2005, and before July 1, 2010,

exceed $0.75;

(4) On or after July 1, 2010, and before July 1, 2015,

exceed $0.80;

(5) On or after July 1, 2015, and before July 1, 2020,

exceed $0.90; or

(6) On or after July 1, 2020, exceed $1.00,

per square foot on other new development.

4. If so provided in [the ordinance,] an ordinance adopted

pursuant to this section, a newly developed lot for a mobile home

must be considered a single-family dwelling unit of new residential

development.

[4.] 5. The tax imposed pursuant to this section must be

collected before the time a certificate of occupancy for a building or

other structure constituting new development is issued, or at such

other time as is specified in the ordinance imposing the tax. If so

provided in the ordinance, no certificate of occupancy may be issued

by any local government unless proof of payment of the tax is filed

with the person authorized to issue the certificate of occupancy.

Collection of the tax imposed pursuant to this section must not

commence earlier than the first day of the second calendar month

after adoption of the ordinance imposing the tax.

[5.] 6. In a county in which a tax has been imposed pursuant to

paragraph (a) of subsection 1, the revenue derived from the tax must

be used exclusively to pay the cost of:

(a) Projects related to the construction and maintenance of

sidewalks, streets, avenues, boulevards, highways and other public

rights-of-way used primarily for vehicular traffic, including, without

limitation, overpass projects, street projects and underpass projects,

as defined in NRS 244A.037, 244A.053 and 244A.055,

respectively:

(1) Within the boundaries of the county;

(2) Within 1 mile outside the boundaries of the county if the

board of county commissioners finds that such projects outside

the boundaries of the county will facilitate transportation within the

county; or

(3) Within 30 miles outside the boundaries of the county and

the boundaries of this state, where those boundaries are

coterminous, if:

(I) The projects consist of improvements to a highway

which is located wholly or partially outside the boundaries of this

state and which connects this state to an interstate highway; and

(II) The board of county commissioners finds that such

projects will provide a significant economic benefit to the county;

(b) The principal and interest on notes, bonds or other

obligations incurred to fund projects described in paragraph (a); or

[6.] 7. In a transportation district in which a tax has been

imposed pursuant to paragraph (b) of subsection 1, the revenue

derived from the tax must be used exclusively to pay the cost of:

(a) Projects related to the construction and maintenance of

sidewalks, streets, avenues, boulevards, highways and other public

rights-of-way used primarily for vehicular traffic, including, without

limitation, overpass projects, street projects and underpass projects,

as defined in NRS 244A.037, 244A.053 and 244A.055, respectively,

within the boundaries of the district or within such a distance

outside those boundaries as is stated in the ordinance imposing the

tax, if the board of county commissioners finds that such projects

outside the boundaries of the district will facilitate transportation

within the district;

(b) The principal and interest on notes, bonds or other

obligations incurred to fund projects described in paragraph (a); or

[7.] 8. The county may expend the proceeds of the tax

authorized by this section, or any borrowing in anticipation of the

tax, pursuant to an interlocal agreement between the county and

the regional transportation commission of the county with respect to

the projects to be financed with the proceeds of the tax.

[8.] 9. The provisions of chapter 278B of NRS and any action

taken pursuant to that chapter do not limit or in any other way apply

to any tax imposed pursuant to this section.

Sec. 20. Chapter 278B of NRS is hereby amended by adding

thereto a new section to read as follows:

1. The governing body of a local government which imposes

an impact fee to pay the cost of constructing a street project may

include a provision in the ordinance imposing the impact fee or

adopt a separate ordinance providing that each year in which the

governing body does not adopt any revisions to the land use

assumptions or capital improvements plan or otherwise increase

the impact fee, the current amount of the impact fee is

cumulatively increased:

(a) By a percentage equal to the average percentage of

increase in the Consumer Price Index for West Urban Consumers

for the preceding 5 years; or

(b) By 4.5 percent,

whichever is less.

2. Upon inclusion of a provision in the ordinance imposing

the impact fee or the adoption of a separate ordinance authorized

by subsection 1, no further action by the governing body is

necessary to effectuate the annual increases.

3. Each increase authorized pursuant to this section becomes

effective 1 year after:

(a) The date upon which the impact fee initially becomes

effective;

(b) The date the governing body adopts a revised capital

improvements plan; or

fee pursuant to this section,

whichever occurs last.

Sec. 21. NRS 278B.230 is hereby amended to read as follows:

278B.230 1. The impact fee per service unit , excluding the

amount of any increase authorized pursuant to section 20 of this

act, must not exceed the amount determined by dividing the costs of

the capital improvements described in subsection 3 of NRS

278B.170 by the total number of projected service units described in

subsection 6 of NRS 278B.170.

2. If the number of new service units projected over a period is

less than the total number of new service units shown by the

approved land use assumptions at full development of the service

area, the maximum impact fee which may be charged per service

unit , excluding the amount of any increase authorized pursuant to

section 20 of this act, must be calculated by dividing the costs of the

part of the capital improvements required by the new service units

described in subsection 7 of NRS 278B.170 by the projected new

service units described in that subsection.

3. The impact fee may be collected at the same time as the fee

for issuance of a building permit for the service unit or at the time a

certificate of occupancy is issued for the service unit, as specified in

the ordinance.

Sec. 22. 1. The approval by the voters on November 5, 2002,

of Advisory Question No. 10, concerning transportation, on the

2002 general election ballot for Clark County shall be deemed to

constitute approval by the voters of the taxes authorized by the

provisions of NRS 278.710, as amended by this act, and paragraph

(b) of subsection 1 of NRS 377A.030, as amended by this act. No

other approval by the voters is required for the imposition of those

taxes in Clark County, including its incorporated cities, at the

following rates:

(a) Pursuant to NRS 278.710:

(1) For each fiscal year beginning:

(I) On or after July 1, 2003, and before July 1, 2005,

$650;

(II) On or after July 1, 2005, and before July 1, 2010,

$700;

(III) On or after July 1, 2010, and before July 1, 2015,

$800;

(IV) On or after July 1, 2015, and before July 1, 2020,

$900; and

(V) On or after July 1, 2020, $1,000,

per single-family dwelling of new residential development, or the

equivalent thereof as determined by the board of county

commissioners; and

(2) For each fiscal year beginning:

(I) On or after July 1, 2003, and before July 1, 2005,

$0.65;

(II) On or after July 1, 2005, and before July 1, 2010,

$0.75;

(III) On or after July 1, 2010, and before July 1, 2015,

$0.80;

(IV) On or after July 1, 2015, and before July 1, 2020,

$0.90; and

(V) On or after July 1, 2020, $1.00,

per square foot on other new development; and

(b) Pursuant to paragraph (b) of subsection 1 of NRS 377A.030:

(1) One-half of 1 percent of the gross receipts of any retailer

from the sale of all tangible personal property sold at retail, or

stored, used or otherwise consumed in the county, until:

(I) The last day of the fiscal year during which the

Department of Taxation determines that the cumulative total

proceeds of the tax imposed at that rate equal or exceed $1.7 billion;

(II) June 30, 2028,

whichever occurs earlier; and

(2) Three-eighths of 1 percent of the gross receipts of any

retailer from the sale of all tangible personal property sold at retail,

or stored, used or otherwise consumed in the county, during each

subsequent fiscal year.

2. The approval by the voters on November 5, 2002, of

Advisory Question No. 2, concerning transportation, on the 2002

general election ballot for Washoe County shall be deemed to

constitute approval by the voters of an increase in the rate of the tax

imposed pursuant to paragraph (b) of subsection 1 of NRS

377A.030, as amended by this act, to three-eighths of 1 percent of

the gross receipts of any retailer from the sale of all tangible

personal property sold at retail, or stored, used or otherwise

consumed in the county. No other approval by the voters is required

for the imposition of that increase in the rate of that tax in Washoe

County, including its incorporated cities.

3. If at any time after November 5, 2002, and before the

effective date of this act, another county obtains approval by the

voters of a measure which complies with the provisions of NRS

278.710 for the tax authorized by that section, as amended by this

act, that approval shall be deemed to constitute approval of the tax

specified on the ballot and no other approval by the voters is

required for imposition of that tax at the rate or rates specified on

that ballot.

Sec. 23. If any provision of this act, or the application thereof

to any person, thing or circumstance is held invalid, such invalidity

does not affect the provisions or applications of this act which can

be given effect without the invalid provision or application, and to

this end the provisions of this act are hereby declared to be

severable.

Sec. 24. This act becomes effective upon passage and

approval.

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