requires two-thirds majority vote (§ 1)                                                                                                                 

                                                                                                  

 

Senate Bill No. 270–Senator Schneider

 

March 13, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Establishes source and procedure for funding grants to regional organizations for economic development. (BDR 32‑781)

 

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 taxation; increasing the state tax on transfers of real property; providing for the disposition and use of the proceeds of the increase for economic development; 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 375.020 is hereby amended to read as follows:

1-2  375.020  1.  A tax, at the rate of:

1-3  (a) In a county whose population is 400,000 or more, [$1.25;]

1-4  $1.35; and

1-5  (b) In a county whose population is less than 400,000, [65] 75

1-6  cents,

1-7  for each $500 of value or fraction thereof, is hereby imposed on

1-8  each deed by which any lands, tenements or other realty is granted,

1-9  assigned, transferred or otherwise conveyed to, or vested in, another

1-10  person, if the consideration or value of the interest or property

1-11  conveyed exceeds $100.

1-12      2.  The amount of tax must be computed on the basis of the

1-13  value of the transferred real property as declared pursuant to

1-14  NRS 375.060.

 

 

 

2-1  Sec. 2.  NRS 375.070 is hereby amended to read as follows:

2-2  375.070  1.  The county recorder shall transmit the proceeds of

2-3  the real property transfer tax at the end of each quarter in the

2-4  following manner:

2-5  (a) An amount equal to that portion of the proceeds which is

2-6  equivalent to 10 cents for each $500 of value or fraction thereof

2-7  must be transmitted to the State Controller , who shall deposit that

2-8  amount in the Account for Low-Income Housing created pursuant to

2-9  NRS 319.500.

2-10      (b) An amount equal to that portion of the proceeds which is

2-11  equivalent to 10 cents for each $500 of value or fraction thereof

2-12  must be transmitted to the State Controller, who shall deposit the

2-13  money in a separate account in the State General Fund for use by

2-14  the Commission on Economic Development pursuant to section 3

2-15  of this act.

2-16      (c) In a county whose population is more than 400,000, an

2-17  amount equal to that portion of the proceeds which is equivalent to

2-18  60 cents for each $500 of value or fraction thereof must be

2-19  transmitted to the county treasurer for deposit in the county school

2-20  district’s fund for capital projects established pursuant to NRS

2-21  387.328, to be held and expended in the same manner as other

2-22  money deposited in that fund.

2-23      [(c)] (d) The remaining proceeds must be transmitted to the

2-24  State Controller for deposit in the Local Government Tax

2-25  Distribution Account created by NRS 360.660 for credit to the

2-26  respective accounts of Carson City and each county.

2-27      2.  In addition to any other authorized use of the proceeds it

2-28  receives pursuant to subsection 1, a county or city may use the

2-29  proceeds to pay expenses related to or incurred for the development

2-30  of affordable housing for families whose income does not exceed 80

2-31  percent of the median income for families residing in the same

2-32  county, as that percentage is defined by the United States

2-33  Department of Housing and Urban Development. A county or city

2-34  that uses the proceeds in that manner must give priority to the

2-35  development of affordable housing for persons who are disabled or

2-36  elderly.

2-37      3.  The expenses authorized by subsection 2 include, but are not

2-38  limited to:

2-39      (a) The costs to acquire land and developmental rights;

2-40      (b) Related predevelopment expenses;

2-41      (c) The costs to develop the land, including the payment of

2-42  related rebates;

2-43      (d) Contributions toward down payments made for the purchase

2-44  of affordable housing; and

2-45      (e) The creation of related trust funds.

3-1  Sec. 3.  Chapter 231 of NRS is hereby amended by adding

3-2  thereto a new section to read as follows:

3-3  The Commission on Economic Development may, from the

3-4  amount of the proceeds of the tax on transfers of real property

3-5  deposited in a separate account pursuant to paragraph (b) of

3-6  subsection 1 of NRS 375.070, expend:

3-7  1.  Not more than 10 percent of that amount to carry out its

3-8  programs for economic development; and

3-9  2.  The remaining amount to provide and administer grants of

3-10  money to local or regional organizations for economic

3-11  development to assist them in meeting their staffing needs, in

3-12  promoting the advantages of their communities and in recruiting

3-13  businesses to relocate in those communities. The amount of money

3-14  allocated for disbursement in each county pursuant to this section

3-15  must be directly proportional to the amount of money collected in

3-16  that county for use pursuant to this section.

3-17      Sec. 4.  NRS 231.020 is hereby amended to read as follows:

3-18      231.020  As used in NRS 231.020 to 231.139, inclusive, and

3-19  section 3 of this act, unless the context otherwise requires, “motion

3-20  pictures” includes feature films, movies made for broadcast on

3-21  television and programs made for broadcast on television in

3-22  episodes.

3-23      Sec. 5.  NRS 231.067 is hereby amended to read as follows:

3-24      231.067  The Commission on Economic Development shall:

3-25      1.  Develop a State Plan for Industrial Development and

3-26  Diversification.

3-27      2.  Promote, encourage and aid the development of commercial,

3-28  industrial, agricultural, mining and other vital economic interests of

3-29  this state, except for travel and tourism, except that in a county

3-30  whose population is less than 50,000, the county may include

3-31  community development and the development of the nongaming

3-32  recreation and tourism industry in its economic development efforts.

3-33      3.  Identify sources of financing and assist businesses and

3-34  industries which wish to locate in Nevada in obtaining financing.

3-35      4.  Provide and administer grants of money to political

3-36  subdivisions of the State and to local or regional organizations for

3-37  economic development to assist them in promoting the advantages

3-38  of their communities and in recruiting businesses to relocate in those

3-39  communities. Each recipient must provide an amount of money, at

3-40  least equal to the grant, for the same purpose, except[, in] that:

3-41      (a) This requirement does not apply to any grants provided

3-42  pursuant to section 3 of this act; and

 

 

4-1  (b) In a county whose population is less than 50,000, the

4-2  Commission may, if convinced that the recipient is financially

4-3  unable to do so, provide [such] a grant pursuant to this subsection

4-4  with less than equal matching money provided by the recipient.

4-5  5.  Encourage and assist state, county and city agencies in

4-6  planning and preparing projects for economic or industrial

4-7  development and financing those projects with revenue bonds.

4-8  6.  Coordinate and assist the activities of counties, cities, local

4-9  and regional organizations for economic development and fair and

4-10  recreation boards in the State which affect industrial development,

4-11  except for travel and tourism, except that in a county whose

4-12  population is less than 50,000, the county may include community

4-13  development and the development of the nongaming recreation and

4-14  tourism industry in its economic development efforts.

4-15      7.  Arrange by cooperative agreements with local governments

4-16  to serve as the single agency in the State where relocating or

4-17  expanding businesses may obtain all required permits.

4-18      8.  Promote close cooperation between public agencies and

4-19  private persons who have an interest in industrial development and

4-20  diversification in Nevada.

4-21      9.  Organize and coordinate the activities of a group of

4-22  volunteers which will aggressively select and recruit businesses and

4-23  industries, especially small industries, to locate their offices and

4-24  facilities in Nevada.

4-25      Sec. 6.  NRS 231.090 is hereby amended to read as follows:

4-26      231.090  The Executive Director of the Commission on

4-27  Economic Development shall direct and supervise all its

4-28  administrative and technical activities, including coordinating its

4-29  plans for economic development, promoting the production of

4-30  motion pictures, scheduling the Commission’s programs, analyzing

4-31  the effectiveness of those programs and associated expenditures, and

4-32  cooperating with other governmental agencies which have programs

4-33  related to economic development. In addition to other powers and

4-34  duties, the Executive Director:

4-35      1.  Shall attend all meetings of the Commission and act as its

4-36  Secretary, keeping minutes of its proceedings.

4-37      2.  Shall report regularly to the Commission concerning the

4-38  administration of its policies and programs.

4-39      3.  Shall report annually to the Governor and the Commission

4-40  regarding the work of the Commission and may make such special

4-41  reports as he considers desirable to the Governor.

4-42      4.  May perform any other lawful acts which he considers

4-43  desirable to carry out the provisions of NRS 231.020 to 231.130,

4-44  inclusive[.] , and section 3 of this act.

5-1  Sec. 7.  The amendatory provisions of section 2 of this act do

5-2  not apply to any proceeds of the tax imposed pursuant to NRS

5-3  375.020 for any period ending on or before June 30, 2003.

5-4  Sec. 8.  This act becomes effective on July 1, 2003.

 

5-5  H