AB516_R1

Assembly Bill No. 516–Committee on Taxation

CHAPTER..........

AN ACT relating to taxation; 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:

Section 1. NRS 365.196 is hereby amended to read as follows:

365.196 1. The receipts of the tax as levied in NRS 365.192

must be allocated monthly by the Department to the counties in

proportion to the number of gallons of fuel that are sold to the

retailers in each county pursuant to the information contained in the

statements provided to the Department pursuant to NRS 365.192.

2. [Each county] The Department must apportion the receipts

of that tax among the county, for unincorporated areas of the county,

and each incorporated city in the county. The county and each city

are respectively entitled to receive each month that proportion of

those receipts which its total population bears to the total population

of the county.

3. [During the month immediately preceding each January 1

and July 1, the county treasurer of each county shall, when

necessary and after a hearing, adopt a regulation which provides for

the accurate apportionment of those receipts in the county during the

ensuing 6 months.

4.] The money apportioned to the county or a city must be used

by it solely to repair or restore existing paved roads, streets and

alleys, other than those maintained by the Federal Government and

this state, by resurfacing, overlaying, resealing or other such

customary methods.

Sec. 2. NRS 365.550 is hereby amended to read as follows:

365.550 1. [The] Except as otherwise provided in subsection

2, the receipts of the tax levied pursuant to NRS 365.180 mustbe

allocated monthly by the Department to the counties using the

following formula:

(a) Determine the average monthly amount each county received

in the fiscal year ending on June 30, [2001,] 2003, and allocate to

each county that amount, or if the total amount to be allocated is less

than that amount, allocate to each county a percentage of the total

amount to be allocated that is equal to the percentage of the total

amount allocated to that county in the fiscal year ending on June 30,

[2001;

(b) Determine for each county an amount from the total amount

to be allocated using the following formula:

(1) Two-thirds in proportion to population; and

(2) One-third in proportion to road mileage and street

mileage of improved roads or streets maintained by the county or an

incorporated city located within the county,

and compare that amount to the amount allocated to the county

pursuant to paragraph (a);

pursuant to paragraph (b) is greater than the amount allocated to the

county pursuant to paragraph (a); and

(d) Allocate to any county which is identified pursuant to

paragraph (c), using the formula set forth in paragraph (b), any

amount from the tax levied pursuant to NRS 365.180 that remains

after the allocation required pursuant to paragraph (a).

2. Within 10 calendar days after June 1] 2003;

(b) If the total amount to be allocated is greater than the

average monthly amount all counties received in the fiscal year

ending on June 30, 2003, determine for each county an amount

from the total amount to be allocated using the following formula:

(1) Multiply the county’s percentage share of the total state

population by 2;

(2) Add the percentage determined pursuant to

subparagraph (1) to the county’s percentage share of total mileage

of improved roads or streets maintained by the county or an

incorporated city located within the county;

(3) Divide the sum of the percentages determined pursuant

to subparagraph (2) by 3; and

(4) Multiply the total amount to be allocated by the

percentage determined pursuant to subparagraph (3);

pursuant to paragraph (b) is greater than the amount allocated to

the county pursuant to paragraph (a) and:

(1) Subtract the amount determined pursuant to paragraph

(a) from the amount determined pursuant to paragraph (b); and

(2) Add the amounts determined pursuant to subparagraph

(1) for all counties;

(d) Identify each county for which the amount determined

pursuant to paragraph (b) is less than or equal to the amount

allocated to the county pursuant to paragraph (a) and:

(1) Subtract the amount determined pursuant to paragraph

(b) from the amount determined pursuant to paragraph (a); and

(2) Add the amounts determined pursuant to subparagraph

(1) for all counties;

(e) Subtract the amount determined pursuant to subparagraph

(2) of paragraph (d) from the amount determined pursuant to

subparagraph (2) of paragraph (c);

(f) Divide the amount determined pursuant to subparagraph

(1) of paragraph (c) for each county by the sum determined

pursuant to subparagraph (2) of paragraph (c) for all counties to

determine each county’s percentage share of the sum determined

pursuant to subparagraph (2) of paragraph (c); and

(g) In addition to the allocation made pursuant to paragraph

(a), allocate to each county that is identified pursuant to

paragraph (c) a percentage of the total amount determined

pursuant to paragraph (e) that is equal to the percentage

determined pursuant to paragraph (f).

2. At the end of each fiscal year, the Department shall:

(a) [Project] Determine the total amount [that each county will

be allocated] to be allocated to all counties pursuant to subsection 1

for the current fiscal year [.] ; and

(b) Use the proceeds of the tax paid by a dealer, supplier or

user for June of the current fiscal year to allocate to each county

an amount determined pursuant to subsection 3.

3. If the total amount to be allocated to all the counties [will]

determined pursuant to paragraph (a) of subsection 2:

(a) Does not exceed the total amount that was received by all the

counties for the fiscal year ending on June 30, [2001,] 2003, the

Department shall adjust the final monthly allocation to be made to

each county so that each county is allocated a percentage of the total

amount to be allocated that is equal to the percentage of the total

amount allocated to that county in the fiscal year ending on June 30,

[2001.

of subsection 1, determine whether the total monthly allocations

projected to be made to that county pursuant to subsection 1 for the

current fiscal year exceed the total amount the county received in

the fiscal year ending on June 30, 2001. If the total monthly

allocations projected to be made to the county do not exceed the

total amount the county received in the fiscal year ending on

June 30, 2001, the Department shall adjust the final monthly

allocation to be made to the county for the current fiscal year so that

the total amount allocated to the county for the current fiscal year

equals the total amount the county received in the fiscal year ending

on June 30, 2001.

3.] 2003.

(b) Exceeds the total amount that was received by all counties

for the fiscal year ending on June 30, 2003, the Department shall:

(1) Identify the total amount allocated to each county for

the fiscal year ending on June 30, 2003, and the total amount for

the current fiscal year determined pursuant to paragraph (a) of

subsection 2;

(2) Apply the formula set forth in paragraph (b) of

subsection 1 using the amounts in subparagraph (1), instead of

the monthly amounts, to determine the total allocations to be made

to the counties for the current fiscal year; and

(3) Adjust the final monthly allocation to be made to each

county to ensure that the total allocations for the current fiscal

year equal the amounts determined pursuant to subparagraph (2).

4. Of the money allocated to each county pursuant to the

provisions of subsections 1 [and 2:] , 2 and 3:

(a) An amount equal to that part of the allocation which

represents 1.25 cents of the tax per gallon must be used exclusively

for the service and redemption of revenue bonds issued pursuant to

chapter 373 of NRS, for the construction, maintenance and repair of

county roads, and for the purchase of equipment for that

construction, maintenance and repair, under the direction of the

boards of county commissioners of the several counties, and must

not be used to defray expenses of administration; and

(b) An amount equal to that part of the allocation which

represents 2.35 cents of the tax per gallon must be allocated to the

county, if there are no incorporated cities in the county, or to the

county and any incorporated cities in the county, if there is at least

one incorporated city in the county, pursuant to the following

formula:

(1) One-fourth in proportion to total area.

(2) One-fourth in proportion to population.

(3) One-fourth in proportion to road mileage and street

mileage of nonfederal aid primary roads.

(4) One-fourth in proportion to vehicle miles of travel on

nonfederal aid primary roads.

For the purpose of applying the formula, the area of the county

excludes the area included in any incorporated city.

[4.] 5. The amount allocated to the counties and incorporated

cities pursuant to subsections 1 [, 2 and 3] to 4, inclusive, must be

remitted monthly. The State Controller shall draw his warrants

payable to the county treasurer of each of the several counties and

the city treasurer of each of the several incorporated cities, as

applicable, and the State Treasurer shall pay the warrants out of the

proceeds of the tax levied pursuant to NRS 365.180.

[5.] 6. The formula computations must be made as of July 1 of

each year by the Department, based on estimates which must be

furnished by the Department of Transportation and, if applicable,

any adjustments to the estimates determined to be appropriate by the

Committee pursuant to subsection [9.] 10. Except as otherwise

provided in subsection [9,] 10, the determination made by the

Department is conclusive.

[6.] 7. The Department of Transportation shall complete:

(a) The estimates of the total mileage of improved roads or

streets maintained by each county and incorporated city on or before

August 31 of each year.

(b) A physical audit of the information submitted by each

county and incorporated city pursuant to subsection [7] 8 at least

once every 10 years.

[7.] 8. Each county and incorporated city shall, not later than

March 1 of each year, submit a list to the Department of

Transportation setting forth:

(a) Each improved road or street that is maintained by the

county or city; and

(b) The beginning and ending points and the total mileage of

each of those improved roads or streets.

Each county and incorporated city shall, at least 10 days before the

list is submitted to the Department of Transportation, hold a public

hearing to identify and determine the improved roads and streets

maintained by the county or city.

[8.] 9. If a county or incorporated city does not agree with the

estimates prepared by the Department of Transportation pursuant to

subsection [6,] 7, the county or incorporated city may request that

the Subcommittee examine the estimates and recommend an

adjustment to the estimates. Such a request must be submitted to the

Subcommittee not later than October 15.

[9.] 10. The Subcommittee shall review any request it receives

pursuant to subsection [8] 9 and report to the Committee its findings

and any recommendations for an adjustment to the estimates it

determines is appropriate. The Committee shall hold a public

hearing and determine whether an adjustment to the estimates is

appropriate on or before December 31 of the year it receives a

request pursuant to subsection [8.] 9. Any determination made by

the Committee pursuant to this subsection is conclusive.

[10.] 11. The Subcommittee shall monitor the fiscal impact of

the formula set forth in this section on counties and incorporated

cities and report regularly to the Committee concerning its findings

and recommendations regarding that fiscal impact.

[11.] 12. As used in this section:

(a) “Committee” means the Legislative Committee for Local

Government Taxes and Finance established pursuant to

NRS 218.53881.

(b) “Construction, maintenance and repair” includes the

acquisition, operation or use of any material, equipment or facility

that is used exclusively for the construction, maintenance or repair

of a county or city road and is necessary for the safe and efficient

use of that road, including, without limitation:

(1) Grades and regrades;

(2) Graveling, oiling, surfacing, macadamizing and paving;

(3) Sweeping, cleaning and sanding roads and removing

snow from a road;

(4) Crosswalks and sidewalks;

(5) Culverts, catch basins, drains, sewers and manholes;

(6) Inlets and outlets;

(7) Retaining walls, bridges, overpasses, underpasses,

tunnels and approaches;

(8) Artificial lights and lighting equipment, parkways,

control of vegetation and sprinkling facilities;

(9) Rights-of-way;

(10) Grade and traffic separators;

(11) Fences, cattle guards and other devices to control access

to a county or city road;

(12) Signs and devices for the control of traffic; and

(13) Facilities for personnel and the storage of equipment

used to construct, maintain or repair a county or city road.

least:

(1) Aligned and graded to allow reasonably convenient use

by a motor vehicle; and

(2) Drained sufficiently by a longitudinal and transverse

drainage system to prevent serious impairment of the road or street

by surface water.

(d) “Subcommittee” means the Subcommittee appointed

pursuant to NRS 218.53884.

(e) “Total mileage of an improved road or street” means the

total mileage of the length of an improved road or street, without

regard to the width of that road or street or the number of lanes it

has for vehicular traffic.

Sec. 3. NRS 365.550 is hereby amended to read as follows:

365.550 1. [The] Except as otherwise provided in subsection

2, the receipts of the tax levied pursuant to NRS 365.180 must be