Senate Bill No. 113–Committee on Government Affairs

 

(On Behalf of Carson City)

 

February 13, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises manner of valuing certain property that becomes exempt from taxation for purposes of allocating certain tax revenue among taxing agencies and redevelopment agency. (BDR 22‑263)

 

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 redevelopment; revising the manner of valuing certain property that becomes exempt from taxation for the purposes of allocating certain tax revenue among taxing agencies and a redevelopment agency; 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 279.676 is hereby amended to read as follows:

1-2  279.676  1.  Any redevelopment plan may contain a provision

1-3  that taxes, if any, levied upon taxable property in the redevelopment

1-4  area each year by or for the benefit of the State, any city, county,

1-5  district or other public corporation, after the effective date of the

1-6  ordinance approving the redevelopment plan, must be divided as

1-7  follows:

1-8  (a) That portion of the taxes which would be produced by

1-9  the rate upon which the tax is levied each year by or for each of

1-10  the taxing agencies upon the total sum of the assessed value of the

1-11  taxable property in the redevelopment area as shown upon the

1-12  assessment roll used in connection with the taxation of the property

1-13  by the taxing agency, last equalized before the effective date of the

2-1  ordinance, must be allocated to and when collected must be paid

2-2  into the funds of the respective taxing agencies as taxes by or for

2-3  such taxing agencies on all other property are paid. To allocate taxes

2-4  levied by or for any taxing agency or agencies which did not include

2-5  the territory in a redevelopment area on the effective date of the

2-6  ordinance but to which the territory has been annexed or otherwise

2-7  included after the effective date, the assessment roll of the county

2-8  last equalized on the effective date of the ordinance must be used in

2-9  determining the assessed valuation of the taxable property in the

2-10  redevelopment area on the effective date. If property which was

2-11  shown on the assessment roll used to determine the amount of taxes

2-12  allocated to the taxing agencies is transferred to the State and

2-13  becomes exempt from taxation, the assessed valuation of the exempt

2-14  property as shown on [that] the assessment roll last equalized

2-15  before the date on which the property was transferred to the State

2-16  must be subtracted from the assessed valuation used to determine

2-17  the amount of revenue allocated to the taxing agencies.

2-18      (b) Except as otherwise provided in paragraphs (c) and (d) and

2-19  NRS 540A.265, that portion of the levied taxes each year in excess

2-20  of the amount set forth in paragraph (a) must be allocated to and

2-21  when collected must be paid into a special fund of the

2-22  redevelopment agency to pay the costs of redevelopment and to pay

2-23  the principal of and interest on loans, money advanced to, or

2-24  indebtedness, whether funded, refunded, assumed, or otherwise,

2-25  incurred by the redevelopment agency to finance or refinance, in

2-26  whole or in part, redevelopment. Unless the total assessed valuation

2-27  of the taxable property in a redevelopment area exceeds the total

2-28  assessed value of the taxable property in the redevelopment area as

2-29  shown by the [last equalized] assessment roll [referred to in

2-30  paragraph (a),] last equalized before the effective date of the

2-31  ordinance approving the redevelopment plan, less the assessed

2-32  valuation of any exempt property subtracted pursuant to

2-33  paragraph (a), all of the taxes levied and collected upon the taxable

2-34  property in the redevelopment area must be paid into the funds of

2-35  the respective taxing agencies. When the redevelopment plan is

2-36  terminated pursuant to the provisions of NRS 279.438 and 279.439

2-37  and all loans, advances and indebtedness, if any, and interest

2-38  thereon, have been paid, all money thereafter received from taxes

2-39  upon the taxable property in the redevelopment area must be paid

2-40  into the funds of the respective taxing agencies as taxes on all other

2-41  property are paid.

2-42      (c) That portion of the taxes in excess of the amount set forth in

2-43  paragraph (a) that is attributable to a tax rate levied by a taxing

2-44  agency to produce revenues in an amount sufficient to make annual

2-45  repayments of the principal of, and the interest on, any bonded

3-1  indebtedness that was approved by the voters of the taxing agency

3-2  on or after November 5, 1996, must be allocated to and when

3-3  collected must be paid into the debt service fund of that taxing

3-4  agency.

3-5  (d) That portion of the taxes in excess of the amount set forth in

3-6  paragraph (a) that is attributable to a new or increased tax rate levied

3-7  by a taxing agency and was approved by the voters of the taxing

3-8  agency on or after November 5, 1996, must be allocated to and

3-9  when collected must be paid into the appropriate fund of the taxing

3-10  agency.

3-11      2.  Except as otherwise provided in subsection 3, in any fiscal

3-12  year, the total revenue paid to a redevelopment agency must not

3-13  exceed:

3-14      (a) In a municipality whose population is 100,000 or more, an

3-15  amount equal to the combined tax rates of the taxing agencies for

3-16  that fiscal year multiplied by 10 percent of the total assessed

3-17  valuation of the municipality.

3-18      (b) In a municipality whose population is less than 100,000, an

3-19  amount equal to the combined tax rates of the taxing agencies for

3-20  that fiscal year multiplied by 15 percent of the total assessed

3-21  valuation of the municipality.

3-22  If the revenue paid to a redevelopment agency must be limited

3-23  pursuant to paragraph (a) or (b) and the redevelopment agency has

3-24  more than one redevelopment area, the redevelopment agency shall

3-25  determine the allocation to each area. Any revenue which would be

3-26  allocated to a redevelopment agency but for the provisions of this

3-27  section must be paid into the funds of the respective taxing agencies.

3-28      3.  The taxing agencies shall continue to pay to a

3-29  redevelopment agency any amount which was being paid before

3-30  July 1, 1987, and in anticipation of which the agency became

3-31  obligated before July 1, 1987, to repay any bond, loan, money

3-32  advanced or any other indebtedness, whether funded, refunded,

3-33  assumed or otherwise incurred.

3-34      4.  For the purposes of this section, the assessment roll last

3-35  equalized before the effective date of the ordinance approving the

3-36  redevelopment plan is the assessment roll in existence on March 15

3-37  immediately preceding the effective date of the ordinance.

3-38      Sec. 2.  This act becomes effective upon passage and approval.

 

3-39  H