Senate Bill No. 441–Committee on Government Affairs

 

(On Behalf of Washoe County)

 

March 24, 2003

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Referred to Committee on Taxation

 

SUMMARY—Establishes responsibility for payment of bonded indebtedness upon consolidation of local governments. (BDR 32‑582)

 

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; establishing responsibility for the payment of bonded indebtedness upon consolidation of local governments; 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 361 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  If two local governments are consolidated, and either of

1-4  the local governments has before the consolidation issued bonds

1-5  or other debt to be repaid by a levy of taxes ad valorem throughout

1-6  the local government, the combined tax rate certified pursuant to

1-7  NRS 361.4547 for the consolidated local government must not

1-8  include a levy for the purpose of repayment of the indebtedness.

1-9  For the purposes of the indebtedness, the former local government

1-10  shall be deemed to continue in existence with the boundaries that

1-11  existed prior to the consolidation and a tax rate must be certified

1-12  for the local government to generate the revenue necessary to

1-13  repay the bonds or other debt. The separate tax rate must be

1-14  established each year until the bond or other debt is repaid in its

1-15  entirety.

2-1  2.  As used in this section, “local government” has the

2-2  meaning ascribed to it in NRS 354.474.

2-3  Sec. 2.  This act becomes effective upon passage and approval.

 

2-4  H