requires two-thirds majority vote (§ 1)                                                                                                                 

                                                                                                  

 

Senate Bill No. 385–Committee on Human
Resources and Facilities

 

March 17, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Increases tax on transfer of real property. (BDR 32‑1180)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to taxation; increasing the tax on the transfer of real property; requiring the deposit of the proceeds collected from the increase in the State General Fund; 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  $2.25; and

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

1-6  cents,] $1.65,

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) In a county whose population is more than 400,000, an

2-11  amount equal to that portion of the proceeds which is equivalent to

2-12  60 cents for each $500 of value or fraction thereof must be

2-13  transmitted to the county treasurer for deposit in the county school

2-14  district’s fund for capital projects established pursuant to NRS

2-15  387.328, to be held and expended in the same manner as other

2-16  money deposited in that fund.

2-17      (c) An amount equal to that portion of the proceeds which is

2-18  equivalent to $1 for each $500 of value or fraction thereof must be

2-19  transmitted to the State Controller for deposit in the State General

2-20  Fund.

2-21      (d) The remaining proceeds must be transmitted to the State

2-22  Controller for deposit in the Local Government Tax Distribution

2-23  Account created by NRS 360.660 for credit to the respective

2-24  accounts of Carson City and each county.

2-25      2.  In addition to any other authorized use of the proceeds it

2-26  receives pursuant to subsection 1, a county or city may use the

2-27  proceeds to pay expenses related to or incurred for the development

2-28  of affordable housing for families whose income does not exceed 80

2-29  percent of the median income for families residing in the same

2-30  county, as that percentage is defined by the United States

2-31  Department of Housing and Urban Development. A county or city

2-32  that uses the proceeds in that manner must give priority to the

2-33  development of affordable housing for persons who are disabled or

2-34  elderly.

2-35      3.  The expenses authorized by subsection 2 include, but are not

2-36  limited to:

2-37      (a) The costs to acquire land and developmental rights;

2-38      (b) Related predevelopment expenses;

2-39      (c) The costs to develop the land, including the payment of

2-40  related rebates;

2-41      (d) Contributions toward down payments made for the purchase

2-42  of affordable housing; and

2-43      (e) The creation of related trust funds.

 

 

3-1  Sec. 3.  This act becomes effective on July 1, 2003.

 

3-2  H