Assembly Bill No. 525–Committee on Transportation

 

(On Behalf of the City of Sparks)

 

March 24, 2003

____________

 

Referred to Committee on Transportation

 

SUMMARY—Revises method by which proceeds from certain taxes on motor vehicle fuel are allocated between local governments in certain counties. (BDR 32‑459)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           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; revising the method by which the proceeds from certain taxes on motor vehicle fuel are allocated between local governments in certain counties; and providing other matters properly relating thereto.

 

    Whereas, Washoe County is one of only four counties in Nevada in which two or more incorporated cities are located; and

    Whereas, The assessed value of taxable property located in, and the populations of, the City of Sparks and the City of Reno are much higher as compared to the assessed value of taxable property located in, and the population of, the area of Washoe County located outside those cities; and

    Whereas, This concentration of property values and population in those cities generates a greater need for the allocation of revenue to the City of Sparks and the City of Reno from certain taxes on motor vehicle fuel to repair streets and roads in those cities; and

    Whereas, Because of the economic and geographical diversity of the local governments of this state, the unique growth patterns in those local governments and the special conditions experienced in Washoe County, a more equitable distribution of revenue from certain taxes on motor vehicle fuel in that County is required; now, therefore,

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 365.550 is hereby amended to read as follows:

1-2  365.550  1.  The receipts of the tax levied pursuant to NRS

1-3  365.180 must be allocated monthly by the Department to the

1-4  counties using the following formula:

1-5  (a) Determine the average monthly amount each county received

1-6  in the fiscal year ending on June 30, 2001, and allocate to each

1-7  county that amount, or if the total amount to be allocated is less than

1-8  that amount, allocate to each county a percentage of the total

1-9  amount to be allocated that is equal to the percentage of the total

1-10  amount allocated to that county in the fiscal year ending on June 30,

1-11  2001;

1-12      (b) Determine for each county an amount from the total amount

1-13  to be allocated using the following formula:

1-14          (1) Two-thirds in proportion to population; and

1-15          (2) One-third in proportion to road mileage and street

1-16  mileage of improved roads or streets maintained by the county or an

1-17  incorporated city located within the county,

1-18  and compare that amount to the amount allocated to the county

1-19  pursuant to paragraph (a);

1-20      (c) Identify each county for which the amount determined

1-21  pursuant to paragraph (b) is greater than the amount allocated to the

1-22  county pursuant to paragraph (a); and

1-23      (d) Allocate to any county which is identified pursuant to

1-24  paragraph (c), using the formula set forth in paragraph (b), any

1-25  amount from the tax levied pursuant to NRS 365.180 that remains

1-26  after the allocation required pursuant to paragraph (a).

1-27      2.  Within 10 calendar days after June 1 of each fiscal year, the

1-28  Department shall:

1-29      (a) Project the total amount that each county will be allocated

1-30  pursuant to subsection 1 for the current fiscal year.

1-31      (b) If the total amount allocated to all the counties will not

1-32  exceed the total amount that was received by all the counties for the

1-33  fiscal year ending on June 30, 2001, adjust the final monthly

1-34  allocation to be made to each county so that each county is allocated

1-35  a percentage of the total amount to be allocated that is equal to the

1-36  percentage of the total amount allocated to that county in the fiscal

1-37  year ending on June 30, 2001.

1-38      (c) If a county receives an allocation pursuant to paragraph (d)

1-39  of subsection 1, determine whether the total monthly allocations

1-40  projected to be made to that county pursuant to subsection 1 for the

1-41  current fiscal year exceed the total amount the county received in

1-42  the fiscal year ending on June 30, 2001. If the total monthly

2-1  allocations projected to be made to the county do not exceed the

2-2  total amount the county received in the fiscal year ending on June

2-3  30, 2001, the Department shall adjust the final monthly allocation to

2-4  be made to the county for the current fiscal year so that the total

2-5  amount allocated to the county for the current fiscal year equals the

2-6  total amount the county received in the fiscal year ending on

2-7  June 30, 2001.

2-8  3.  Of the money allocated to each county pursuant to the

2-9  provisions of subsections 1 and 2:

2-10      (a) An amount equal to that part of the allocation which

2-11  represents 1.25 cents of the tax per gallon must be used exclusively

2-12  for the service and redemption of revenue bonds issued pursuant to

2-13  chapter 373 of NRS, for the construction, maintenance and repair of

2-14  county roads, and for the purchase of equipment for that

2-15  construction, maintenance and repair, under the direction of the

2-16  boards of county commissioners of the several counties, and must

2-17  not be used to defray expenses of administration; and

2-18      (b) An amount equal to that part of the allocation which

2-19  represents 2.35 cents of the tax per gallon must be allocated to the

2-20  county, if there are no incorporated cities in the county, or to the

2-21  county and any incorporated cities in the county, if there is at least

2-22  one incorporated city in the county, pursuant to the following

2-23  formula:

2-24          (1) In a county whose population is 100,000 or more but

2-25  less than 400,000, the amount must be allocated in proportion to

2-26  population.

2-27          (2) In all other counties, the amount must be allocated as

2-28  follows:

2-29              (I) One-fourth in proportion to total area.

2-30          [(2)] (II) One-fourth in proportion to population.

2-31          [(3)] (III) One-fourth in proportion to road mileage and

2-32  street mileage of nonfederal aid primary roads.

2-33          [(4)] (IV) One-fourth in proportion to vehicle miles of travel

2-34  on nonfederal aid primary roads.

2-35  For the purpose of applying the formula, the area of the county

2-36  excludes the area included in any incorporated city.

2-37      4.  The amount allocated to the counties and incorporated cities

2-38  pursuant to subsections 1, 2 and 3 must be remitted monthly. The

2-39  State Controller shall draw his warrants payable to the county

2-40  treasurer of each of the several counties and the city treasurer of

2-41  each of the several incorporated cities, as applicable, and the State

2-42  Treasurer shall pay the warrants out of the proceeds of the tax levied

2-43  pursuant to NRS 365.180.

2-44      5.  The formula computations must be made as of July 1 of each

2-45  year by the Department, based on estimates which must be furnished

3-1  by the Department of Transportation and, if applicable, any

3-2  adjustments to the estimates determined to be appropriate by the

3-3  Committee pursuant to subsection 9. Except as otherwise provided

3-4  in subsection 9, the determination made by the Department is

3-5  conclusive.

3-6  6.  The Department of Transportation shall complete:

3-7  (a) The estimates of the total mileage of improved roads or

3-8  streets maintained by each county and incorporated city on or before

3-9  August 31 of each year.

3-10      (b) A physical audit of the information submitted by each

3-11  county and incorporated city pursuant to subsection 7 at least once

3-12  every 10 years.

3-13      7.  Each county and incorporated city shall, not later than

3-14  March 1 of each year, submit a list to the Department of

3-15  Transportation setting forth:

3-16      (a) Each improved road or street that is maintained by the

3-17  county or city; and

3-18      (b) The beginning and ending points and the total mileage of

3-19  each of those improved roads or streets.

3-20  Each county and incorporated city shall, at least 10 days before the

3-21  list is submitted to the Department of Transportation, hold a public

3-22  hearing to identify and determine the improved roads and streets

3-23  maintained by the county or city.

3-24      8.  If a county or incorporated city does not agree with the

3-25  estimates prepared by the Department of Transportation pursuant to

3-26  subsection 6, the county or incorporated city may request that the

3-27  Subcommittee examine the estimates and recommend an adjustment

3-28  to the estimates. Such a request must be submitted to the

3-29  Subcommittee not later than October 15.

3-30      9.  The Subcommittee shall review any request it receives

3-31  pursuant to subsection 8 and report to the Committee its findings

3-32  and any recommendations for an adjustment to the estimates it

3-33  determines is appropriate. The Committee shall hold a public

3-34  hearing and determine whether an adjustment to the estimates is

3-35  appropriate on or before December 31 of the year it receives a

3-36  request pursuant to subsection 8. Any determination made by the

3-37  Committee pursuant to this subsection is conclusive.

3-38      10.  The Subcommittee shall monitor the fiscal impact of the

3-39  formula set forth in this section on counties and incorporated cities

3-40  and report regularly to the Committee concerning its findings and

3-41  recommendations regarding that fiscal impact.

3-42      11.  As used in this section:

3-43      (a) “Committee” means the Legislative Committee for Local

3-44  Government Taxes and Finance established pursuant to

3-45  NRS 218.53881.

4-1  (b) “Construction, maintenance and repair” includes the

4-2  acquisition, operation or use of any material, equipment or facility

4-3  that is used exclusively for the construction, maintenance or repair

4-4  of a county or city road and is necessary for the safe and efficient

4-5  use of that road, including, without limitation:

4-6       (1) Grades and regrades;

4-7       (2) Graveling, oiling, surfacing, macadamizing and paving;

4-8       (3) Sweeping, cleaning and sanding roads and removing

4-9  snow from a road;

4-10          (4) Crosswalks and sidewalks;

4-11          (5) Culverts, catch basins, drains, sewers and manholes;

4-12          (6) Inlets and outlets;

4-13          (7) Retaining walls, bridges, overpasses, underpasses,

4-14  tunnels and approaches;

4-15          (8) Artificial lights and lighting equipment, parkways,

4-16  control of vegetation and sprinkling facilities;

4-17          (9) Rights-of-way;

4-18          (10) Grade and traffic separators;

4-19          (11) Fences, cattle guards and other devices to control access

4-20  to a county or city road;

4-21          (12) Signs and devices for the control of traffic; and

4-22          (13) Facilities for personnel and the storage of equipment

4-23  used to construct, maintain or repair a county or city road.

4-24      (c) “Improved road or street” means a road or street that is, at

4-25  least:

4-26          (1) Aligned and graded to allow reasonably convenient use

4-27  by a motor vehicle; and

4-28          (2) Drained sufficiently by a longitudinal and transverse

4-29  drainage system to prevent serious impairment of the road or street

4-30  by surface water.

4-31      (d) “Subcommittee” means the Subcommittee appointed

4-32  pursuant to NRS 218.53884.

4-33      Sec. 2.  NRS 365.550 is hereby amended to read as follows:

4-34      365.550  1.  The receipts of the tax levied pursuant to NRS

4-35  365.180 must be allocated monthly by the Department to the

4-36  counties using the following formula:

4-37      (a) Determine the average monthly amount each county received

4-38  in the fiscal year ending on June 30, 2001, and allocate to each

4-39  county that amount, or if the total amount to be allocated is less than

4-40  that amount, allocate to each county a percentage of the total

4-41  amount to be allocated that is equal to the percentage of the total

4-42  amount allocated to that county in the fiscal year ending on June 30,

4-43  2001;

4-44      (b) Determine for each county an amount from the total amount

4-45  to be allocated using the following formula:

5-1       (1) Two-thirds in proportion to population; and

5-2       (2) One-third in proportion to road mileage and street

5-3  mileage of improved roads or streets maintained by the county or an

5-4  incorporated city located within the county,

5-5  and compare that amount to the amount allocated to the county

5-6  pursuant to paragraph (a);

5-7  (c) Identify each county for which the amount determined

5-8  pursuant to paragraph (b) is greater than the amount allocated to the

5-9  county pursuant to paragraph (a); and

5-10      (d) Allocate to any county which is identified pursuant to

5-11  paragraph (c), using the formula set forth in paragraph (b), any

5-12  amount from the tax levied pursuant to NRS 365.180 that remains

5-13  after the allocation required pursuant to paragraph (a).

5-14      2.  Within 10 calendar days after June 1 of each fiscal year, the

5-15  Department shall:

5-16      (a) Project the total amount that each county will be allocated

5-17  pursuant to subsection 1 for the current fiscal year.

5-18      (b) If the total amount allocated to all the counties will not

5-19  exceed the total amount that was received by all the counties for the

5-20  fiscal year ending on June 30, 2001, adjust the final monthly

5-21  allocation to be made to each county so that each county is allocated

5-22  a percentage of the total amount to be allocated that is equal to the

5-23  percentage of the total amount allocated to that county in the fiscal

5-24  year ending on June 30, 2001.

5-25      (c) If a county receives an allocation pursuant to paragraph (d)

5-26  of subsection 1, determine whether the total monthly allocations

5-27  projected to be made to that county pursuant to subsection 1 for the

5-28  current fiscal year exceed the total amount the county received in

5-29  the fiscal year ending on June 30, 2001. If the total monthly

5-30  allocations projected to be made to the county do not exceed the

5-31  total amount the county received in the fiscal year ending on

5-32  June 30, 2001, the Department shall adjust the final monthly

5-33  allocation to be made to the county for the current fiscal year so that

5-34  the total amount allocated to the county for the current fiscal year

5-35  equals the total amount the county received in the fiscal year ending

5-36  on June 30, 2001.

5-37      3.  Of the money allocated to each county pursuant to the

5-38  provisions of subsections 1 and 2:

5-39      (a) An amount equal to that part of the allocation which

5-40  represents 1.25 cents of the tax per gallon must be used exclusively

5-41  for the service and redemption of revenue bonds issued pursuant to

5-42  chapter 373 of NRS, for the construction, maintenance and repair of

5-43  county roads, and for the purchase of equipment for that

5-44  construction, maintenance and repair, under the direction of the

6-1  boards of county commissioners of the several counties, and must

6-2  not be used to defray expenses of administration; and

6-3  (b) An amount equal to that part of the allocation which

6-4  represents 2.35 cents of the tax per gallon must be allocated to the

6-5  county, if there are no incorporated cities in the county, or to the

6-6  county and any incorporated cities in the county, if there is at least

6-7  one incorporated city in the county, pursuant to the following

6-8  formula:

6-9       (1) In a county whose population is 100,000 or more but

6-10  less than 400,000, the amount must be allocated in proportion to

6-11  population.

6-12          (2) In all other counties, the amount must be allocated as

6-13  follows:

6-14              (I) One-fourth in proportion to total area.

6-15          [(2)] (II) One-fourth in proportion to population.

6-16          [(3)] (III) One-fourth in proportion to road mileage and

6-17  street mileage of nonfederal aid primary roads.

6-18          [(4)] (IV) One-fourth in proportion to vehicle miles of travel

6-19  on nonfederal aid primary roads.

6-20  For the purpose of applying the formula, the area of the county

6-21  excludes the area included in any incorporated city.

6-22      4.  The amount allocated to the counties and incorporated cities

6-23  pursuant to subsections 1, 2 and 3 must be remitted monthly. The

6-24  State Controller shall draw his warrants payable to the county

6-25  treasurer of each of the several counties and the city treasurer of

6-26  each of the several incorporated cities, as applicable, and the State

6-27  Treasurer shall pay the warrants out of the proceeds of the tax levied

6-28  pursuant to NRS 365.180.

6-29      5.  The formula computations must be made as of July 1 of each

6-30  year by the Department, based on estimates which must be furnished

6-31  by the Department of Transportation and, if applicable, any

6-32  adjustments to the estimates determined to be appropriate by the

6-33  Committee pursuant to subsection 9. Except as otherwise provided

6-34  in subsection 9, the determination made by the Department is

6-35  conclusive.

6-36      6.  The Department of Transportation shall complete:

6-37      (a) The estimates of the total mileage of improved roads or

6-38  streets maintained by each county and incorporated city on or before

6-39  August 31 of each year.

6-40      (b) A physical audit of the information submitted by each

6-41  county and incorporated city pursuant to subsection 7 at least once

6-42  every 10 years.

6-43      7.  Each county and incorporated city shall, not later than

6-44  March 1 of each year, submit a list to the Department of

6-45  Transportation setting forth:

7-1  (a) Each improved road or street that is maintained by the

7-2  county or city; and

7-3  (b) The beginning and ending points and the total mileage of

7-4  each of those improved roads or streets.

7-5  Each county and incorporated city shall, at least 10 days before the

7-6  list is submitted to the Department of Transportation, hold a public

7-7  hearing to identify and determine the improved roads and streets

7-8  maintained by the county or city.

7-9  8.  If a county or incorporated city does not agree with the

7-10  estimates prepared by the Department of Transportation pursuant to

7-11  subsection 6, the county or incorporated city may request that the

7-12  Committee examine the estimates and recommend an adjustment to

7-13  the estimates. Such a request must be submitted to the Committee

7-14  not later than October 15.

7-15      9.  The Committee shall hold a public hearing and review any

7-16  request it receives pursuant to subsection 8 and determine whether

7-17  an adjustment to the estimates is appropriate on or before

7-18  December 31 of the year it receives a request pursuant to subsection

7-19  8. Any determination made by the Committee pursuant to this

7-20  subsection is conclusive.

7-21      10.  The Committee shall monitor the fiscal impact of the

7-22  formula set forth in this section on counties and incorporated cities.

7-23  Biennially, the Committee shall prepare a report concerning its

7-24  findings and recommendations regarding that fiscal impact and

7-25  submit the report on or before February 15 of each odd-numbered

7-26  year to the Director of the Legislative Counsel Bureau for

7-27  transmittal to the Senate and Assembly Committees on Taxation of

7-28  the Nevada Legislature for their review.

7-29      11.  As used in this section:

7-30      (a) “Committee” means the Committee on Local Government

7-31  Finance created pursuant to NRS 354.105.

7-32      (b) “Construction, maintenance and repair” includes the

7-33  acquisition, operation or use of any material, equipment or facility

7-34  that is used exclusively for the construction, maintenance or repair

7-35  of a county or city road and is necessary for the safe and efficient

7-36  use of that road, including, without limitation:

7-37          (1) Grades and regrades;

7-38          (2) Graveling, oiling, surfacing, macadamizing and paving;

7-39          (3) Sweeping, cleaning and sanding roads and removing

7-40  snow from a road;

7-41          (4) Crosswalks and sidewalks;

7-42          (5) Culverts, catch basins, drains, sewers and manholes;

7-43          (6) Inlets and outlets;

7-44          (7) Retaining walls, bridges, overpasses, underpasses,

7-45  tunnels and approaches;

8-1       (8) Artificial lights and lighting equipment, parkways,

8-2  control of vegetation and sprinkling facilities;

8-3       (9) Rights-of-way;

8-4       (10) Grade and traffic separators;

8-5       (11) Fences, cattle guards and other devices to control access

8-6  to a county or city road;

8-7       (12) Signs and devices for the control of traffic; and

8-8       (13) Facilities for personnel and the storage of equipment

8-9  used to construct, maintain or repair a county or city road.

8-10      (c) “Improved road or street” means a road or street that is, at

8-11  least:

8-12          (1) Aligned and graded to allow reasonably convenient use

8-13  by a motor vehicle; and

8-14          (2) Drained sufficiently by a longitudinal and transverse

8-15  drainage system to prevent serious impairment of the road or street

8-16  by surface water.

8-17      Sec. 3.  NRS 365.560 is hereby amended to read as follows:

8-18      365.560  1.  The receipts of the tax levied pursuant to NRS

8-19  365.190 must be allocated monthly by the Department to the

8-20  counties in which the payment of the tax originates pursuant to the

8-21  formula set forth in subsection 2.

8-22      2.  The receipts must be apportioned by the Department

8-23  between the county, towns with town boards as organized under

8-24  NRS 269.016 to 269.019, inclusive, and incorporated cities within

8-25  the county as follows:

8-26      (a) In a county whose population is 100,000 or more but less

8-27  than 400,000, the receipts must be apportioned in proportion to

8-28  population.

8-29      (b) In all other counties, the receipts must be apportioned in

8-30  the same ratio as the assessed valuation of property within the

8-31  boundaries of the towns or incorporated cities within the county

8-32  bears to the total assessed valuation of property within the county,

8-33  including property within the towns or incorporated cities.

8-34      3.  Any money apportioned to a county pursuant to subsection 2

8-35  must be expended by the county solely for:

8-36      (a) The service and redemption of revenue bonds issued

8-37  pursuant to chapter 373 of NRS;

8-38      (b) The construction, maintenance and repair of the public

8-39  highways of the county; and

8-40      (c) The purchase of equipment for that construction,

8-41  maintenance and repair.

8-42  The money must not be used to defray the expenses of

8-43  administration.

8-44      4.  Any money apportioned to towns or incorporated cities

8-45  pursuant to subsection 2 must be expended only upon the streets,

9-1  alleys and public highways of the town or city, other than state

9-2  highways, under the direction and control of the governing body of

9-3  the town or city.

9-4  5.  As used in this section, “construction, maintenance and

9-5  repair” has the meaning ascribed to it in NRS 365.550.

9-6  Sec. 4.  1.  This section and sections 1 and 3 of this act

9-7  become effective on July 1, 2003.

9-8  2.  Section 2 of this act becomes effective on July 1, 2005.

9-9  3.  Section 1 of this act expires by limitation on June 30, 2005.

 

9-10  H