requires two-thirds majority vote (§§ 2-5, 9)
A.B. 516
Assembly Bill No. 516–Committee on Taxation
(On Behalf of the Legislative Committee on
Local
Government Taxes and Finance)
March 24, 2003
____________
Referred to Committee on Taxation
SUMMARY—Makes various changes to provisions governing taxes on motor vehicle fuels. (BDR 32‑622)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State: Yes.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to taxation; providing for an annual adjustment in the rate of certain taxes on motor vehicle fuel based on the increase or decrease in the Consumer Price Index; revising the formula for the distribution among counties of revenue from a certain additional tax on certain motor vehicle fuel; 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 365 of NRS is hereby amended by adding
1-2 thereto a new section to read as follows:
1-3 On or before April 15 of each year, the Department shall notify
1-4 the governing body of each county, city and other political
1-5 subdivision in writing of:
1-6 1. The adjusted rate of any tax levied within that political
1-7 subdivision for the succeeding fiscal year pursuant to NRS
1-8 365.175, 365.180, 365.190, 365.192 and 373.030; and
1-9 2. The total rate of taxes levied within that political
1-10 subdivision pursuant to those sections for the succeeding fiscal
1-11 year, rounded to the nearest 1/10 of 1 cent.
2-1 Sec. 2. NRS 365.175 is hereby amended to read as follows:
2-2 365.175 1. Except as otherwise provided in NRS 365.135,
2-3 every supplier shall, not later than the last day of each calendar
2-4 month:
2-5 (a) Submit to the Department a statement of all motor vehicle
2-6 fuel, except aviation fuel, sold, distributed or used by him in this
2-7 state; and
2-8 (b) [Pay] Except as otherwise provided in this section, pay an
2-9 excise tax on all motor vehicle fuel, except aviation fuel, in the
2-10 amount of 17.65 cents per gallon sold, distributed or used in the
2-11 manner prescribed in this chapter.
2-12 2. Beginning with the Fiscal Year 2004-2005, the rate of the
2-13 tax imposed by subsection 1 must be increased or decreased each
2-14 fiscal year in an amount corresponding to the average percentage
2-15 of the increase or decrease in the Consumer Price Index (All
2-16 Items) published by the United States Department of Labor for the
2-17 5 calendar years immediately preceding that fiscal year. In no
2-18 event may the rate of the tax be:
2-19 (a) Decreased in any fiscal year below 17.65 cents per gallon.
2-20 (b) Increased in any fiscal year by more than 4 percent.
2-21 3. If the average percentage increase in the Consumer Price
2-22 Index (All Items) for the 5 calendar years immediately preceding a
2-23 fiscal year is greater than 4 percent, the amount of the percentage
2-24 increase that exceeds 4 percent must be carried forward and used
2-25 to adjust the rate of the tax in each succeeding fiscal year for
2-26 which there is an average percentage decrease in the Consumer
2-27 Price Index (All Items) or the average percentage increase in the
2-28 Consumer Price Index (All Items) is less than 4 percent, until the
2-29 percentage amount being carried forward is depleted.
2-30 4. On or before April 1 of each year, the Department shall
2-31 calculate the increase or decrease in the rate of the tax imposed by
2-32 subsection 1 and adjust the rate of the tax for the succeeding fiscal
2-33 year.
2-34 5. A supplier shall hold the amount of all taxes collected
2-35 pursuant to this chapter in a separate account in trust for the State.
2-36 Sec. 3. NRS 365.180 is hereby amended to read as follows:
2-37 365.180 1. [In] Except as otherwise provided in this section
2-38 and in addition to any other tax provided for in this chapter, there is
2-39 hereby levied an excise tax of 3.6 cents per gallon on all motor
2-40 vehicle fuel, except aviation fuel.
2-41 2. Beginning with Fiscal Year 2004-2005, the rate of the tax
2-42 levied pursuant to subsection 1 must be increased or decreased
2-43 each fiscal year in an amount corresponding to the average
2-44 percentage in the increase or decrease in the Consumer Price
2-45 Index (All Items) published by the United States Department of
3-1 Labor for the 5 calendar years immediately preceding that fiscal
3-2 year. In no event may the rate of the tax be:
3-3 (a) Decreased in any fiscal year below 3.6 cents per gallon.
3-4 (b) Increased in any fiscal year by more than 4 percent.
3-5 3. If the average percentage of increase in the Consumer
3-6 Price Index (All Items) for the 5 calendar years immediately
3-7 preceding a fiscal year is greater that 4 percent, the amount of the
3-8 percentage increase that exceeds 4 percent must be carried
3-9 forward and used to adjust the rate of the tax in each succeeding
3-10 fiscal year for which there is an average percentage decrease in
3-11 the Consumer Price Index (All Items) or the average percentage
3-12 increase in the Consumer Price Index (All Items) is less than 4
3-13 percent, until the percentage amount being carried forward is
3-14 depleted.
3-15 4. On or before April 1 of each year, the Department shall
3-16 calculate the increase or decrease in the rate of the tax levied
3-17 pursuant to subsection 1 and adjust the rate of the tax for the
3-18 succeeding fiscal year.
3-19 5. This tax must be accounted for by each supplier and be
3-20 collected in the manner provided in this chapter. The tax must be
3-21 paid to the Department and delivered by the Department to the State
3-22 Treasurer.
3-23 Sec. 4. NRS 365.190 is hereby amended to read as follows:
3-24 365.190 1. [Subject] Except as otherwise provided in this
3-25 section and subject to the provisions of subsection [3,] 6, in
3-26 addition to any other tax provided for in this chapter, there is hereby
3-27 levied an excise tax of 1.75 cents per gallon on all motor vehicle
3-28 fuel, except aviation fuel.
3-29 2. Beginning with Fiscal Year 2004-2005, the rate of the tax
3-30 levied pursuant to subsection 1 must be increased or decreased
3-31 each fiscal year in an amount corresponding to the average
3-32 percentage of the increase or decrease in the Consumer Price
3-33 Index (All Items) published by the United States Department of
3-34 Labor for the 5 calendar years immediately preceding that fiscal
3-35 year. In no event may the rate of the tax be:
3-36 (a) Decreased in any fiscal year below 1.75 cents per gallon.
3-37 (b) Increased in any fiscal year by more than 4 percent.
3-38 3. If the average percentage increase in the Consumer Price
3-39 Index (All Items) for the 5 calendar years immediately preceding a
3-40 fiscal year is greater than 4 percent, the amount of the percentage
3-41 increase that exceeds 4 percent must be carried forward and used
3-42 to adjust the rate of the tax in each succeeding fiscal year for
3-43 which there is an average percentage decrease in the Consumer
3-44 Price Index (All Items) or the average percentage increase in the
4-1 Consumer Price Index (All Items) is less than 4 percent, until the
4-2 percentage amount being carried forward is depleted.
4-3 4. On or before April 1 of each year, the Department shall
4-4 calculate the increase or decrease in the rate of the tax levied
4-5 pursuant to subsection 1 and adjust the rate of the tax for the
4-6 succeeding fiscal year.
4-7 5. The tax imposed pursuant to this section must be collected
4-8 by the supplier in the manner provided in this chapter. Upon the
4-9 collection of the tax by the supplier, the purchaser of the fuel shall
4-10 provide to the supplier a statement that sets forth the number of
4-11 gallons of fuel that will be sold to retailers in each county in this
4-12 state. The tax must be paid to the Department and delivered by the
4-13 Department to the State Treasurer. When the tax is paid to the
4-14 Department, the supplier shall provide to the Department a copy of
4-15 the statement provided to the supplier by the purchaser pursuant to
4-16 this subsection.
4-17 [3.] 6. The provisions of this section shall be deemed to be
4-18 optional. The board of county commissioners of any county may
4-19 decline to accept the additional tax levied pursuant to this section by
4-20 the adoption of a resolution passed before July 1, 1947, which must
4-21 be reconsidered and passed once each year within 60 days before
4-22 July 1 of each year as long as the board of county commissioners
4-23 desires so to act. Upon the adoption of such a resolution no tax may
4-24 be collected.
4-25 Sec. 5. NRS 365.192 is hereby amended to read as follows:
4-26 365.192 1. [In] Except as otherwise provided in this section
4-27 and in addition to any other tax provided for in this chapter, there is
4-28 hereby levied an excise tax of 1 cent per gallon on motor vehicle
4-29 fuel, except aviation fuel.
4-30 2. Beginning with Fiscal Year 2004-2005, the rate of the tax
4-31 levied pursuant to subsection 1 must be increased or decreased
4-32 each fiscal year in an amount corresponding to the average
4-33 percentage in the increase or decrease in the Consumer Price
4-34 Index (All Items) published by the United States Department of
4-35 Labor for the 5 calendar years immediately preceding that fiscal
4-36 year. In no event may the rate of the tax be:
4-37 (a) Decreased in any fiscal year below 1 cent per gallon.
4-38 (b) Increased in any fiscal year by more than 4 percent.
4-39 3. If the average percentage increase in the Consumer Price
4-40 Index (All Items) for the 5 calendar years immediately preceding a
4-41 fiscal year is greater than 4 percent, the amount of the percentage
4-42 increase that exceeds 4 percent must be carried forward and used
4-43 to adjust the rate of the tax in each succeeding fiscal year for
4-44 which there is an average percentage decrease in the Consumer
4-45 Price Index (All Items) or the average percentage increase in the
5-1 Consumer Price Index (All Items) is less than 4 percent, until the
5-2 percentage amount being carried forward is depleted.
5-3 4. On or before April 1 of each year, the Department shall
5-4 calculate the increase or decrease in the rate of the tax levied
5-5 pursuant to subsection 1 and adjust the rate of the tax for the
5-6 succeeding fiscal year.
5-7 5. The tax imposed pursuant to this section must be collected
5-8 by the supplier in the manner provided in this chapter. Upon the
5-9 collection of the tax by the supplier, the purchaser of the fuel shall
5-10 provide to the supplier a statement that sets forth the number of
5-11 gallons of fuel that will be sold to retailers in each county in this
5-12 state. The tax must be paid to the Department and delivered by the
5-13 Department to the State Treasurer. When the tax is paid to the
5-14 Department, the supplier shall provide to the Department a copy of
5-15 the statement provided to the supplier by the purchaser pursuant to
5-16 this subsection.
5-17 Sec. 6. NRS 365.196 is hereby amended to read as follows:
5-18 365.196 1. The receipts of the tax as levied in NRS 365.192
5-19 must be allocated monthly by the Department to the counties in
5-20 proportion to the number of gallons of fuel that are sold to the
5-21 retailers in each county pursuant to the information contained in the
5-22 statements provided to the Department pursuant to NRS 365.192.
5-23 2. [Each county] The Department must apportion the receipts
5-24 of that tax among the county, for unincorporated areas of the county,
5-25 and each incorporated city in the county. The county and each city
5-26 are respectively entitled to receive each month that proportion of
5-27 those receipts which its total population bears to the total population
5-28 of the county.
5-29 3. [During the month immediately preceding each January 1
5-30 and July 1, the county treasurer of each county shall, when
5-31 necessary and after a hearing, adopt a regulation which provides for
5-32 the accurate apportionment of those receipts in the county during the
5-33 ensuing 6 months.
5-34 4.] The money apportioned to the county or a city must be used
5-35 by it solely to repair or restore existing paved roads, streets and
5-36 alleys, other than those maintained by the Federal Government and
5-37 this state, by resurfacing, overlaying, resealing or other such
5-38 customary methods.
5-39 Sec. 7. NRS 365.550 is hereby amended to read as follows:
5-40 365.550 1. [The] Except as otherwise provided in subsection
5-41 2, the receipts of the tax levied pursuant to NRS 365.180 must be
5-42 allocated monthly by the Department to the counties using the
5-43 following formula:
5-44 (a) Determine the average monthly amount each county received
5-45 in the fiscal year ending on June 30, 2001, and allocate to each
6-1 county that amount, or if the total amount to be allocated is less than
6-2 that amount, allocate to each county a percentage of the total
6-3 amount to be allocated that is equal to the percentage of the total
6-4 amount allocated to that county in the fiscal year ending on June 30,
6-5 2001;
6-6 (b) [Determine for each county an amount from the total amount
6-7 to be allocated using the following formula:
6-8 (1) Two-thirds in proportion to population; and
6-9 (2) One-third in proportion to road mileage and street
6-10 mileage of improved roads or streets maintained by the county or an
6-11 incorporated city located within the county,
6-12 and compare that amount to the amount allocated to the county
6-13 pursuant to paragraph (a);
6-14 (c) Identify each county for which the amount determined
6-15 pursuant to paragraph (b) is greater than the amount allocated to the
6-16 county pursuant to paragraph (a); and
6-17 (d) Allocate to any county which is identified pursuant to
6-18 paragraph (c), using the formula set forth in paragraph (b), any
6-19 amount from the tax levied pursuant to NRS 365.180 that remains
6-20 after the allocation required pursuant to paragraph (a).] If the total
6-21 amount to be allocated is greater than the average monthly
6-22 amount all counties received in the fiscal year ending on June 30,
6-23 2001, determine for each county an amount from the total amount
6-24 to be allocated using the following formula:
6-25 (1) Multiply the county’s percentage share of total state
6-26 population by 2;
6-27 (2) Add the percentage determined pursuant to
6-28 subparagraph (1) to the county’s percentage share of total mileage
6-29 of improved roads or streets maintained by the county or an
6-30 incorporated city located within the county;
6-31 (3) Divide the sum of the percentages determined pursuant
6-32 to subparagraph (2) by 3; and
6-33 (4) Multiply the total amount to be allocated by the
6-34 percentage determined pursuant to subparagraph (3);
6-35 (c) Identify each county for which the amount determined
6-36 pursuant to paragraph (b) is greater than the amount allocated to
6-37 the county pursuant to paragraph (a) and:
6-38 (1) Subtract the amount determined pursuant to paragraph
6-39 (a) from the amount determined pursuant to paragraph (b); and
6-40 (2) Add the amounts determined pursuant to subparagraph
6-41 (1) for all counties;
6-42 (d) Identify each county for which the amount determined
6-43 pursuant to paragraph (b) is less than or equal to the amount
6-44 allocated to the county pursuant to paragraph (a) and:
7-1 (1) Subtract the amount determined pursuant to paragraph
7-2 (b) from the amount determined pursuant to paragraph (a); and
7-3 (2) Add the amounts determined pursuant to subparagraph
7-4 (1) for all counties;
7-5 (e) Subtract the amount determined pursuant to subparagraph
7-6 (2) of paragraph (d) from the amount determined pursuant to
7-7 subparagraph (2) of paragraph (c);
7-8 (f) Divide the amount determined pursuant to subparagraph
7-9 (1) of paragraph (c) for each county by the sum determined
7-10 pursuant to subparagraph (2) of paragraph (c) for all counties to
7-11 determine each county’s percentage share of the sum determined
7-12 pursuant to subparagraph (2) of paragraph (c); and
7-13 (g) In addition to the allocation made pursuant to paragraph
7-14 (a), allocate to each county that is identified pursuant to
7-15 paragraph (c) a percentage of the total amount determined
7-16 pursuant to paragraph (e) that is equal to the percentage
7-17 determined pursuant to paragraph (f).
7-18 2. Within 10 calendar days after June 1 of each fiscal year, the
7-19 Department shall:
7-20 (a) Project the total amount that each county will be allocated
7-21 pursuant to subsection 1 for the current fiscal year.
7-22 (b) [If the total amount allocated to all the counties will not
7-23 exceed the total amount that was received by all the counties for the
7-24 fiscal year ending on June 30, 2001, adjust the final monthly
7-25 allocation to be made to each county so that each county is allocated
7-26 a percentage of the total amount to be allocated that is equal to the
7-27 percentage of the total amount allocated to that county in the fiscal
7-28 year ending on June 30, 2001.
7-29 (c) If a county receives an allocation pursuant to paragraph (d)
7-30 of subsection 1, determine whether the total monthly allocations
7-31 projected to be made to that county pursuant to subsection 1 for the
7-32 current fiscal year exceed the total amount the county received in
7-33 the fiscal year ending on June 30, 2001. If the total monthly
7-34 allocations projected to be made to the county do not exceed the
7-35 total amount the county received in the fiscal year ending on
7-36 June 30, 2001, the Department shall adjust the final monthly
7-37 allocation to be made to the county for the current fiscal year so that
7-38 the total amount allocated to the county for the current fiscal year
7-39 equals the total amount the county received in the fiscal year ending
7-40 on June 30, 2001.] Using the amount allocated to the counties for
7-41 the fiscal year ending on June 30, 2001, rather than the average
7-42 monthly amount each county received in the fiscal year ending on
7-43 June 30, 2001, and using the projected amount determined
7-44 pursuant to paragraph (a), apply the formula set forth in
8-1 subsection 1 to determine the total allocations that should be made
8-2 to the counties for the current fiscal year.
8-3 (c) Adjust the final monthly allocation to be made to each
8-4 county for the current fiscal year as necessary to ensure that the
8-5 total allocations for the current fiscal year equal the amounts
8-6 determined by applying the formula set forth in subsection 1, as
8-7 prescribed in paragraph (b).
8-8 3. Of the money allocated to each county pursuant to the
8-9 provisions of subsections 1 and 2:
8-10 (a) An amount equal to that part of the allocation which
8-11 represents 1.25 cents of the tax per gallon must be used exclusively
8-12 for the service and redemption of revenue bonds issued pursuant to
8-13 chapter 373 of NRS, for the construction, maintenance and repair of
8-14 county roads, and for the purchase of equipment for that
8-15 construction, maintenance and repair, under the direction of the
8-16 boards of county commissioners of the several counties, and must
8-17 not be used to defray expenses of administration; and
8-18 (b) An amount equal to that part of the allocation which
8-19 represents 2.35 cents of the tax per gallon must be allocated to the
8-20 county, if there are no incorporated cities in the county, or to the
8-21 county and any incorporated cities in the county, if there is at least
8-22 one incorporated city in the county, pursuant to the following
8-23 formula:
8-24 (1) One-fourth in proportion to total area.
8-25 (2) One-fourth in proportion to population.
8-26 (3) One-fourth in proportion to [road mileage and street] the
8-27 total mileage of [nonfederal aid primary roads.] improved roads or
8-28 streets maintained by the county and any incorporated cities.
8-29 (4) One-fourth in proportion to vehicle miles of travel on
8-30 nonfederal aid primary roads.
8-31 For the purpose of applying the formula, the area of the county
8-32 excludes the area included in any incorporated city.
8-33 4. The amount allocated to the counties and incorporated cities
8-34 pursuant to subsections 1, 2 and 3 must be remitted monthly. The
8-35 State Controller shall draw his warrants payable to the county
8-36 treasurer of each of the several counties and the city treasurer of
8-37 each of the several incorporated cities, as applicable, and the State
8-38 Treasurer shall pay the warrants out of the proceeds of the tax levied
8-39 pursuant to NRS 365.180.
8-40 5. The formula computations must be made as of July 1 of each
8-41 year by the Department, based on estimates which must be furnished
8-42 by the Department of Transportation and, if applicable, any
8-43 adjustments to the estimates determined to be appropriate by the
8-44 Committee pursuant to subsection 9. Except as otherwise provided
9-1 in subsection 9, the determination made by the Department is
9-2 conclusive.
9-3 6. The Department of Transportation shall complete:
9-4 (a) The estimates of the total mileage of improved roads or
9-5 streets maintained by each county and incorporated city on or before
9-6 August 31 of each year.
9-7 (b) A physical audit of the information submitted by each
9-8 county and incorporated city pursuant to subsection 7 at least once
9-9 every 10 years.
9-10 7. Each county and incorporated city shall, not later than
9-11 March 1 of each year, submit a list to the Department of
9-12 Transportation setting forth:
9-13 (a) Each improved road or street that is maintained by the
9-14 county or city; and
9-15 (b) The beginning and ending points and the total mileage of
9-16 each of those improved roads or streets.
9-17 Each county and incorporated city shall, at least 10 days before the
9-18 list is submitted to the Department of Transportation, hold a public
9-19 hearing to identify and determine the improved roads and streets
9-20 maintained by the county or city.
9-21 8. If a county or incorporated city does not agree with the
9-22 estimates prepared by the Department of Transportation pursuant to
9-23 subsection 6, the county or incorporated city may request that the
9-24 Subcommittee examine the estimates and recommend an adjustment
9-25 to the estimates. Such a request must be submitted to the
9-26 Subcommittee not later than October 15.
9-27 9. The Subcommittee shall review any request it receives
9-28 pursuant to subsection 8 and report to the Committee its findings
9-29 and any recommendations for an adjustment to the estimates it
9-30 determines is appropriate. The Committee shall hold a public
9-31 hearing and determine whether an adjustment to the estimates is
9-32 appropriate on or before December 31 of the year it receives a
9-33 request pursuant to subsection 8. Any determination made by the
9-34 Committee pursuant to this subsection is conclusive.
9-35 10. The Subcommittee shall monitor the fiscal impact of the
9-36 formula set forth in this section on counties and incorporated cities
9-37 and report regularly to the Committee concerning its findings and
9-38 recommendations regarding that fiscal impact.
9-39 11. As used in this section:
9-40 (a) “Committee” means the Legislative Committee for Local
9-41 Government Taxes and Finance established pursuant to
9-42 NRS 218.53881.
9-43 (b) “Construction, maintenance and repair” includes the
9-44 acquisition, operation or use of any material, equipment or facility
9-45 that is used exclusively for the construction, maintenance or repair
10-1 of a county or city road and is necessary for the safe and efficient
10-2 use of that road, including, without limitation:
10-3 (1) Grades and regrades;
10-4 (2) Graveling, oiling, surfacing, macadamizing and paving;
10-5 (3) Sweeping, cleaning and sanding roads and removing
10-6 snow from a road;
10-7 (4) Crosswalks and sidewalks;
10-8 (5) Culverts, catch basins, drains, sewers and manholes;
10-9 (6) Inlets and outlets;
10-10 (7) Retaining walls, bridges, overpasses, underpasses,
10-11 tunnels and approaches;
10-12 (8) Artificial lights and lighting equipment, parkways,
10-13 control of vegetation and sprinkling facilities;
10-14 (9) Rights-of-way;
10-15 (10) Grade and traffic separators;
10-16 (11) Fences, cattle guards and other devices to control access
10-17 to a county or city road;
10-18 (12) Signs and devices for the control of traffic; and
10-19 (13) Facilities for personnel and the storage of equipment
10-20 used to construct, maintain or repair a county or city road.
10-21 (c) “Improved road or street” means a road or street that is, at
10-22 least:
10-23 (1) Aligned and graded to allow reasonably convenient use
10-24 by a motor vehicle; and
10-25 (2) Drained sufficiently by a longitudinal and transverse
10-26 drainage system to prevent serious impairment of the road or street
10-27 by surface water.
10-28 (d) “Subcommittee” means the Subcommittee appointed
10-29 pursuant to NRS 218.53884.
10-30 (e) “Total mileage of an improved road or street” means the
10-31 total mileage of the length of an improved road or street, without
10-32 regard to the width of that road or street or the number of lanes it
10-33 has for vehicular traffic.
10-34 Sec. 8. NRS 365.550 is hereby amended to read as follows:
10-35 365.550 1. [The] Except as otherwise provided in subsection
10-36 2, the receipts of the tax levied pursuant to NRS 365.180 must be
10-37 allocated monthly by the Department to the counties using the
10-38 following formula:
10-39 (a) Determine the average monthly amount each county received
10-40 in the fiscal year ending on June 30, 2001, and allocate to each
10-41 county that amount, or if the total amount to be allocated is less than
10-42 that amount, allocate to each county a percentage of the total
10-43 amount to be allocated that is equal to the percentage of the total
10-44 amount allocated to that county in the fiscal year ending on June 30,
10-45 2001;
11-1 (b) [Determine for each county an amount from the total amount
11-2 to be allocated using the following formula:
11-3 (1) Two-thirds in proportion to population; and
11-4 (2) One-third in proportion to road mileage and street
11-5 mileage of improved roads or streets maintained by the county or an
11-6 incorporated city located within the county,
11-7 and compare that amount to the amount allocated to the county
11-8 pursuant to paragraph (a);
11-9 (c) Identify each county for which the amount determined
11-10 pursuant to paragraph (b) is greater than the amount allocated to the
11-11 county pursuant to paragraph (a); and
11-12 (d) Allocate to any county which is identified pursuant to
11-13 paragraph (c), using the formula set forth in paragraph (b), any
11-14 amount from the tax levied pursuant to NRS 365.180 that remains
11-15 after the allocation required pursuant to paragraph (a).] If the total
11-16 amount to be allocated is greater than the average monthly
11-17 amount all counties received in the fiscal year ending on June 30,
11-18 2001, determine for each county an amount from the total amount
11-19 to be allocated using the following formula:
11-20 (1) Multiply the county’s percentage share of total state
11-21 population by 2;
11-22 (2) Add the percentage determined pursuant to
11-23 subparagraph (1) to the county’s percentage share of total mileage
11-24 of improved roads or streets maintained by the county or an
11-25 incorporated city located within the county;
11-26 (3) Divide the sum of the percentages determined pursuant
11-27 to subparagraph (2) by 3; and
11-28 (4) Multiply the total amount to be allocated by the
11-29 percentage determined pursuant to subparagraph (3);
11-30 (c) Identify each county for which the amount determined
11-31 pursuant to paragraph (b) is greater than the amount allocated to
11-32 the county pursuant to paragraph (a) and:
11-33 (1) Subtract the amount determined pursuant to paragraph
11-34 (a) from the amount determined pursuant to paragraph (b); and
11-35 (2) Add the amounts determined pursuant to subparagraph
11-36 (1) for all counties;
11-37 (d) Identify each county for which the amount determined
11-38 pursuant to paragraph (b) is less than or equal to the amount
11-39 allocated to the county pursuant to paragraph (a) and:
11-40 (1) Subtract the amount determined pursuant to paragraph
11-41 (b) from the amount determined pursuant to paragraph (a); and
11-42 (2) Add the amounts determined pursuant to subparagraph
11-43 (1) for all counties;
12-1 (e) Subtract the amount determined pursuant to subparagraph
12-2 (2) of paragraph (d) from the amount determined pursuant to
12-3 subparagraph (2) of paragraph (c);
12-4 (f) Divide the amount determined pursuant to subparagraph
12-5 (1) of paragraph (c) for each county by the sum determined
12-6 pursuant to subparagraph (2) of paragraph (c) for all counties to
12-7 determine each county’s percentage share of the sum determined
12-8 pursuant to subparagraph (2) of paragraph (c); and
12-9 (g) In addition to the allocation made pursuant to paragraph
12-10 (a), allocate to each county that is identified pursuant to
12-11 paragraph (c) a percentage of the total amount determined
12-12 pursuant to paragraph (e) that is equal to the percentage
12-13 determined pursuant to paragraph (f).
12-14 2. Within 10 calendar days after June 1 of each fiscal year, the
12-15 Department shall:
12-16 (a) Project the total amount that each county will be allocated
12-17 pursuant to subsection 1 for the current fiscal year.
12-18 (b) [If the total amount allocated to all the counties will not
12-19 exceed the total amount that was received by all the counties for the
12-20 fiscal year ending on June 30, 2001, adjust the final monthly
12-21 allocation to be made to each county so that each county is allocated
12-22 a percentage of the total amount to be allocated that is equal to the
12-23 percentage of the total amount allocated to that county in the fiscal
12-24 year ending on June 30, 2001.
12-25 (c) If a county receives an allocation pursuant to paragraph (d)
12-26 of subsection 1, determine whether the total monthly allocations
12-27 projected to be made to that county pursuant to subsection 1 for the
12-28 current fiscal year exceed the total amount the county received in
12-29 the fiscal year ending on June 30, 2001. If the total monthly
12-30 allocations projected to be made to the county do not exceed the
12-31 total amount the county received in the fiscal year ending on
12-32 June 30, 2001, the Department shall adjust the final monthly
12-33 allocation to be made to the county for the current fiscal year so that
12-34 the total amount allocated to the county for the current fiscal year
12-35 equals the total amount the county received in the fiscal year ending
12-36 on June 30, 2001.] Using the amount allocated to the counties for
12-37 the fiscal year ending on June 30, 2001, rather than the average
12-38 monthly amount each county received in the fiscal year ending on
12-39 June 30, 2001, and using the projected amount determined
12-40 pursuant to paragraph (a), apply the formula set forth in
12-41 subsection 1 to determine the total allocations that should be made
12-42 to the counties for the current fiscal year.
12-43 (c) Adjust the final monthly allocation to be made to each
12-44 county for the current fiscal year as necessary to ensure that the
12-45 total allocations for the current fiscal year equal the amounts
13-1 determined by applying the formula set forth in subsection 1, as
13-2 prescribed in paragraph (b).
13-3 3. Of the money allocated to each county pursuant to the
13-4 provisions of subsections 1 and 2:
13-5 (a) An amount equal to that part of the allocation which
13-6 represents 1.25 cents of the tax per gallon must be used exclusively
13-7 for the service and redemption of revenue bonds issued pursuant to
13-8 chapter 373 of NRS, for the construction, maintenance and repair of
13-9 county roads, and for the purchase of equipment for that
13-10 construction, maintenance and repair, under the direction of the
13-11 boards of county commissioners of the several counties, and must
13-12 not be used to defray expenses of administration; and
13-13 (b) An amount equal to that part of the allocation which
13-14 represents 2.35 cents of the tax per gallon must be allocated to the
13-15 county, if there are no incorporated cities in the county, or to the
13-16 county and any incorporated cities in the county, if there is at least
13-17 one incorporated city in the county, pursuant to the following
13-18 formula:
13-19 (1) One-fourth in proportion to total area.
13-20 (2) One-fourth in proportion to population.
13-21 (3) One-fourth in proportion to [road mileage and street] the
13-22 total mileage of [nonfederal aid primary roads.] improved roads or
13-23 streets maintained by the county and any incorporated cities.
13-24 (4) One-fourth in proportion to vehicle miles of travel on
13-25 nonfederal aid primary roads.
13-26 For the purpose of applying the formula, the area of the county
13-27 excludes the area included in any incorporated city.
13-28 4. The amount allocated to the counties and incorporated cities
13-29 pursuant to subsections 1, 2 and 3 must be remitted monthly. The
13-30 State Controller shall draw his warrants payable to the county
13-31 treasurer of each of the several counties and the city treasurer of
13-32 each of the several incorporated cities, as applicable, and the State
13-33 Treasurer shall pay the warrants out of the proceeds of the tax levied
13-34 pursuant to NRS 365.180.
13-35 5. The formula computations must be made as of July 1 of each
13-36 year by the Department, based on estimates which must be furnished
13-37 by the Department of Transportation and, if applicable, any
13-38 adjustments to the estimates determined to be appropriate by the
13-39 Committee pursuant to subsection 9. Except as otherwise provided
13-40 in subsection 9, the determination made by the Department is
13-41 conclusive.
13-42 6. The Department of Transportation shall complete:
13-43 (a) The estimates of the total mileage of improved roads or
13-44 streets maintained by each county and incorporated city on or before
13-45 August 31 of each year.
14-1 (b) A physical audit of the information submitted by each
14-2 county and incorporated city pursuant to subsection 7 at least once
14-3 every 10 years.
14-4 7. Each county and incorporated city shall, not later than
14-5 March 1 of each year, submit a list to the Department of
14-6 Transportation setting forth:
14-7 (a) Each improved road or street that is maintained by the
14-8 county or city; and
14-9 (b) The beginning and ending points and the total mileage of
14-10 each of those improved roads or streets.
14-11 Each county and incorporated city shall, at least 10 days before the
14-12 list is submitted to the Department of Transportation, hold a public
14-13 hearing to identify and determine the improved roads and streets
14-14 maintained by the county or city.
14-15 8. If a county or incorporated city does not agree with the
14-16 estimates prepared by the Department of Transportation pursuant to
14-17 subsection 6, the county or incorporated city may request that the
14-18 Committee examine the estimates and recommend an adjustment to
14-19 the estimates. Such a request must be submitted to the Committee
14-20 not later than October 15.
14-21 9. The Committee shall hold a public hearing and review any
14-22 request it receives pursuant to subsection 8 and determine whether
14-23 an adjustment to the estimates is appropriate on or before
14-24 December 31 of the year it receives a request pursuant to subsection
14-25 8. Any determination made by the Committee pursuant to this
14-26 subsection is conclusive.
14-27 10. The Committee shall monitor the fiscal impact of the
14-28 formula set forth in this section on counties and incorporated cities.
14-29 Biennially, the Committee shall prepare a report concerning its
14-30 findings and recommendations regarding that fiscal impact and
14-31 submit the report on or before February 15 of each odd-numbered
14-32 year to the Director of the Legislative Counsel Bureau for
14-33 transmittal to the Senate and Assembly Committees on Taxation of
14-34 the Nevada Legislature for their review.
14-35 11. As used in this section:
14-36 (a) “Committee” means the Committee on Local Government
14-37 Finance created pursuant to NRS 354.105.
14-38 (b) “Construction, maintenance and repair” includes the
14-39 acquisition, operation or use of any material, equipment or facility
14-40 that is used exclusively for the construction, maintenance or repair
14-41 of a county or city road and is necessary for the safe and efficient
14-42 use of that road, including, without limitation:
14-43 (1) Grades and regrades;
14-44 (2) Graveling, oiling, surfacing, macadamizing and paving;
15-1 (3) Sweeping, cleaning and sanding roads and removing
15-2 snow from a road;
15-3 (4) Crosswalks and sidewalks;
15-4 (5) Culverts, catch basins, drains, sewers and manholes;
15-5 (6) Inlets and outlets;
15-6 (7) Retaining walls, bridges, overpasses, underpasses,
15-7 tunnels and approaches;
15-8 (8) Artificial lights and lighting equipment, parkways,
15-9 control of vegetation and sprinkling facilities;
15-10 (9) Rights-of-way;
15-11 (10) Grade and traffic separators;
15-12 (11) Fences, cattle guards and other devices to control access
15-13 to a county or city road;
15-14 (12) Signs and devices for the control of traffic; and
15-15 (13) Facilities for personnel and the storage of equipment
15-16 used to construct, maintain or repair a county or city road.
15-17 (c) “Improved road or street” means a road or street that is, at
15-18 least:
15-19 (1) Aligned and graded to allow reasonably convenient use
15-20 by a motor vehicle; and
15-21 (2) Drained sufficiently by a longitudinal and transverse
15-22 drainage system to prevent serious impairment of the road or street
15-23 by surface water.
15-24 (d) “Total mileage of an improved road or street” means the
15-25 total mileage of the length of an improved road or street, without
15-26 regard to the width of that road or street or the number of lanes it
15-27 has for vehicular traffic.
15-28 Sec. 9. NRS 373.030 is hereby amended to read as follows:
15-29 373.030 1. In any county for all or part of which a streets and
15-30 highways plan has been adopted as a part of the master plan by the
15-31 county or regional planning commission pursuant to NRS 278.150,
15-32 the board may by ordinance:
15-33 (a) Create a regional transportation commission; and
15-34 (b) [Impose] Except as otherwise provided in this section,
15-35 impose a tax on motor vehicle fuel, except aviation fuel and leaded
15-36 racing fuel, sold in the county in an amount not to exceed 9 cents
15-37 per gallon.
15-38 2. Beginning with Fiscal Year 2004-2005, the Department
15-39 shall, for each fiscal year, adjust the maximum amount of the tax
15-40 set forth in paragraph (b) of subsection 1 and the rate of any tax
15-41 imposed pursuant to that paragraph in an amount corresponding
15-42 to the average percentage of the increase or decrease in the
15-43 Consumer Price Index (All Items) published by the United States
15-44 Department of Labor for the 5 calendar years immediately
15-45 preceding that fiscal year. In no event may:
16-1 (a) The maximum amount of the tax be:
16-2 (1) Decreased in any fiscal year below 9 cents per gallon.
16-3 (2) Increased in any fiscal year by more than 4 percent.
16-4 (b) The rate of the tax be:
16-5 (1) Decreased in any fiscal year below the rate of the tax on
16-6 July 1, 2003. If a board imposes the tax authorized by paragraph
16-7 (b) of subsection 1 after July 1, 2003, the rate of the tax may not
16-8 be decreased in any fiscal year below the rate at which it is first
16-9 imposed.
16-10 (2) Increased in any fiscal year by more than 4 percent.
16-11 3. If the average percentage of increase in the Consumer
16-12 Price Index (All Items) for the 5 calendar years immediately
16-13 preceding a fiscal year is greater than 4 percent, the Department
16-14 shall carry forward the amount of the percentage increase that
16-15 exceeds 4 percent and use that amount to adjust the rate of the tax
16-16 in each succeeding fiscal year for which there is an average
16-17 percentage decrease in the Consumer Price Index (All Items) or
16-18 the average percentage increase in the Consumer Price Index (All
16-19 Items) is less than 4 percent, until the percentage amount being
16-20 carried forward is depleted.
16-21 4. On or before April 1 of each year, the Department shall
16-22 calculate:
16-23 (a) The increase or decrease in the maximum amount of the
16-24 tax that may be imposed pursuant to paragraph (b) of
16-25 subsection 1; and
16-26 (b) The rate of the tax for the succeeding fiscal year, as
16-27 adjusted pursuant to subsections 2 and 3,
16-28 and report those amounts to the board.
16-29 5. The rate of any tax imposed for Fiscal Year 2004-2005 and
16-30 for each succeeding fiscal year is the rate calculated by the
16-31 Department pursuant to subsection 4, unless the board provides
16-32 otherwise by ordinance.
16-33 6. A tax imposed pursuant to this section is in addition to other
16-34 motor vehicle fuel taxes imposed pursuant to the provisions of
16-35 chapter 365 of NRS.
16-36 [3.] 7. As used in this section:
16-37 (a) “Aviation fuel” has the meaning ascribed to it in
16-38 NRS 365.015.
16-39 (b) “Leaded racing fuel” means motor vehicle fuel that contains
16-40 lead and is produced for motor vehicles that are designed and built
16-41 for racing and not for operation on a public highway.
16-42 Sec. 10. 1. This section and sections 2 to 7, inclusive, and 9
16-43 of this act become effective on July 1, 2003.
16-44 2. Section 1 of this act becomes effective on July 1, 2004.
17-1 3. Section 8 of this act becomes effective on July 1, 2005.
17-2 4. Section 7 of this act expires by limitation on June 30, 2005.
17-3 H