Senate Bill No. 474–Committee on Taxation

 

(On Behalf of the Nevada League of
Cities and Municipalities)

 

March 24, 2003

____________

 

Referred to Committee on Taxation

 

SUMMARY—Revises limitation on total ad valorem tax levy. (BDR 32‑340)

 

FISCAL NOTE:    Effect on Local Government: No.

                             Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to taxation; exempting ad valorem tax levies approved by the voters from the limitation on the total ad valorem tax levy for all public purposes under certain circumstances; clarifying the manner in which certain other limitations on ad valorem taxes are calculated; 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 361.453 is hereby amended to read as follows:

1-2  361.453  1.  Except as otherwise provided in this section and

1-3  NRS 354.705, 354.723 and 450.760, the total ad valorem tax levy

1-4  for all public purposes must not exceed $3.64 on each $100 of

1-5  assessed valuation, or a lesser or greater amount fixed by the State

1-6  Board of Examiners if the State Board of Examiners is directed by

1-7  law to fix a lesser or greater amount for that fiscal year.

1-8  2.  Any levy imposed by the Legislature for the repayment of

1-9  bonded indebtedness or the operating expenses of the State of

1-10  Nevada and any levy imposed by the board of county

1-11  commissioners pursuant to subsection 1 of NRS 387.195 that is in

1-12  excess of 50 cents on each $100 of assessed valuation of taxable

1-13  property within the county must not be included in calculating the

2-1  limitation set forth in subsection 1 on the total ad valorem tax levied

2-2  within the boundaries of the county, city or unincorporated town . [,

2-3  if, in a county whose population is 40,000 or less, or in a city or

2-4  unincorporated town located within that county:

2-5  (a) The combined tax rate certified by the Nevada Tax

2-6  Commission was at least $3.50 on each $100 of assessed valuation

2-7  on June 25, 1998;

2-8  (b) The governing body of that county, city or unincorporated

2-9  town proposes to its registered voters an additional levy ad valorem

2-10  above the total ad valorem tax levy for all public purposes set forth

2-11  in subsection 1;

2-12      (c) The proposal specifies the amount of money to be derived,

2-13  the purpose for which it is to be expended and the duration of the

2-14  levy; and

2-15      (d) The proposal is approved by a majority of the voters voting

2-16  on the question at a general election or a special election called for

2-17  that purpose.

2-18      3.  The duration of the additional levy ad valorem levied

2-19  pursuant to subsection 2 must not exceed 5 years. The governing

2-20  body of the county, city or unincorporated town may discontinue the

2-21  levy before it expires and may not thereafter reimpose it in whole or

2-22  in part without following the procedure required for its original

2-23  imposition set forth in subsection 2.

2-24      4.  A special election may be held pursuant to subsection 2 only

2-25  if the governing body of the county, city or unincorporated town

2-26  determines, by a unanimous vote, that an emergency exists. The

2-27  determination made by the governing body is conclusive unless it is

2-28  shown that the governing body acted with fraud or a gross abuse of

2-29  discretion. An action to challenge the determination made by the

2-30  governing body must be commenced within 15 days after the

2-31  governing body’s determination is final. As used in this subsection,

2-32  “emergency” means any unexpected occurrence or combination of

2-33  occurrences which requires immediate action by the governing body

2-34  of the county, city or unincorporated town to prevent or mitigate a

2-35  substantial financial loss to the county, city or unincorporated town

2-36  or to enable the governing body to provide an essential service to

2-37  the residents of the county, city or unincorporated town.]

2-38      3.  If the voters of a local government approve a levy of ad

2-39  valorem taxes or approve a bond issuance or other debt that is to

2-40  be repaid by the levy of ad valorem taxes, the amount of the levy of

2-41  ad valorem taxes that results must not be included in calculating

2-42  the limitation in subsection 1 on the total ad valorem tax levy for

2-43  all public purposes if the ballot question contains a clear statement

2-44  which sets forth the amount of the levy and explains that the levy

2-45  will be exempt from the limitation set forth in subsection 1.

3-1  Sec. 2.  NRS 361.4547 is hereby amended to read as follows:

3-2  361.4547  [1.] After the approval of the final budgets for the

3-3  various local governments as defined in NRS 354.474 and their

3-4  submission to the Department, for examination and approval, the

3-5  Nevada Tax Commission shall certify to the board of county

3-6  commissioners of each of the several counties the combined tax rate

3-7  necessary to produce the amount of revenue required by the

3-8  approved budgets, and shall certify that combined rate, to each of

3-9  the boards of county commissioners.

3-10      [2.  If the voters of a school district approve an additional levy

3-11  of taxes ad valorem pursuant to NRS 387.3285 or 387.3287 or the

3-12  issuance of bonds or other debt to be repaid by a levy of taxes ad

3-13  valorem throughout the district, and the Department finds for any

3-14  fiscal year that the additional rate of tax required for this purpose,

3-15  when added to the rates of taxes ad valorem authorized to be levied

3-16  in the district by other local governments and the state for that fiscal

3-17  year would cause the combined rate within the territory of any other

3-18  local government to exceed the rate allowed by NRS 361.453, the

3-19  Department shall determine:

3-20      (a) The amounts by which the proposed levies for all of the

3-21  other local governments whose rates affect the territory have

3-22  increased from the previous year; and

3-23      (b) The portion of the amount by which the combined rate

3-24  would exceed the rate allowed by NRS 361.453 that is directly

3-25  attributable to the additional levy approved by the voters for the

3-26  school district.

3-27      3.  If the Department determines that any portion of the amount

3-28  by which the combined rate would exceed the rate allowed by NRS

3-29  361.453 is directly attributable to the additional levy approved by

3-30  the voters for the school district, the school district shall:

3-31      (a) Reduce for the fiscal year the amount levied pursuant to

3-32  NRS 387.3285 or 387.3287, or both, if the proceeds of the levy are

3-33  not already committed for debt service, by the amount determined

3-34  by the Department to be directly attributable to the school district;

3-35      (b) Transfer to the other local government whose rate overlaps

3-36  in that territory an amount of money, determined by the Department

3-37  to be directly attributable to the school district, to reduce the

3-38  combined rate to the rate allowed; or

3-39      (c) Determine and implement a combination of the methods of

3-40  reduction allowed by paragraphs (a) and (b) that will result in the

3-41  reduction of the combined rate by the amount determined by the

3-42  Department to be directly attributable to the school district.

3-43      4.  If a school district determines that it will proceed pursuant to

3-44  paragraph (b) or (c) of subsection 3, the Department shall calculate

3-45  the transfers so as to minimize the total amount transferred, and

4-1  each local government to which a transfer is made shall

4-2  correspondingly reduce its rate and file a revised budget within the

4-3  time allowed by subsection 6 of NRS 361.455. The amounts

4-4  transferred must be paid in installments, within 30 days after each

4-5  installment of property taxes is due.]

4-6  Sec. 3.  NRS 361.455 is hereby amended to read as follows:

4-7  361.455  1.  [Unless individual tax rates are reduced pursuant

4-8  to NRS 361.4547, immediately] Immediately upon adoption of the

4-9  final budgets, if the combined tax rate exceeds the limit imposed by

4-10  NRS 361.453, the chairman of the board of county commissioners

4-11  in each county concerned shall call a meeting of the governing

4-12  boards of each of the local governments within the county for the

4-13  purpose of establishing a combined tax rate that conforms to the

4-14  statutory limit. The chairman shall convene the meeting no later

4-15  than June 13 of each year.

4-16      2.  The governing boards of the local governments shall meet in

4-17  public session and the county clerk shall keep appropriate records,

4-18  pursuant to regulations of the Department, of all proceedings. The

4-19  costs of taking and preparing the record of the proceedings,

4-20  including the costs of transcribing and summarizing tape recordings,

4-21  must be borne by the county and participating incorporated cities in

4-22  proportion to the final tax rate as certified by the Department. The

4-23  chairman of the board of county commissioners or his designee shall

4-24  preside at the meeting. The governing boards shall explore areas of

4-25  mutual concern so as to agree upon a combined tax rate that does

4-26  not exceed the statutory limit.

4-27      3.  The governing boards shall determine final decisions by a

4-28  unanimous vote of all entities present and qualified to vote, as

4-29  defined in this subsection. No ballot may be cast on behalf of any

4-30  governing board unless a majority of the individual board is present.

4-31  A majority vote of all members of each governing board is

4-32  necessary to determine the ballot cast for that entity. All ballots

4-33  must be cast not later than the day following the day the meeting is

4-34  convened. The district attorney is the legal adviser for such

4-35  proceedings.

4-36      4.  The county clerk shall immediately thereafter advise the

4-37  Department of the results of the ballots cast and the tax rates set for

4-38  local governments concerned. If the ballots for the entities present at

4-39  the meeting in the county are not unanimous, the county clerk shall

4-40  transmit all records of the proceedings to the Department within 5

4-41  days after the meeting.

4-42      5.  If a unanimous vote is not obtained and the combined rate in

4-43  any county together with the established state tax rate exceeds the

4-44  statutory limit, the Department shall examine the record of the

4-45  discussions and the budgets of all local governments concerned. On

5-1  June 25 or, if June 25 falls on a Saturday or Sunday, on the Monday

5-2  next following, the Nevada Tax Commission shall meet to set the

5-3  tax rates for the next succeeding year for all local governments so

5-4  examined. In setting the tax rates for the next succeeding year the

5-5  Nevada Tax Commission shall not reduce that portion of the

5-6  proposed tax rate of the county school district for the operation and

5-7  maintenance of public schools.

5-8  6.  Any local government affected by a rate adjustment, made in

5-9  accordance with the provisions of this section, which necessitates a

5-10  budget revision shall file a copy of its revised budget by July 30

5-11  next after the approval and certification of the rate by the Nevada

5-12  Tax Commission.

5-13      7.  A copy of the certificate of the Nevada Tax Commission

5-14  sent to the board of county commissioners must be forwarded to the

5-15  county auditor.

5-16      Sec. 4.  NRS 354.598 is hereby amended to read as follows:

5-17      354.598  1.  At the time and place advertised for public

5-18  hearing, or at any time and place to which the public hearing is from

5-19  time to time adjourned, the governing body shall hold a public

5-20  hearing on the tentative budget, at which time interested persons

5-21  must be given an opportunity to be heard.

5-22      2.  At the public hearing, the governing body shall indicate

5-23  changes, if any, to be made in the tentative budget, and shall adopt a

5-24  final budget by the favorable votes of a majority of all members

5-25  of the governing body. Except as otherwise provided in this

5-26  subsection, the final budget must be adopted on or before June 1 of

5-27  each year. The final budgets of school districts must be adopted on

5-28  or before June 8 of each year and must be accompanied by copies of

5-29  the written report and written procedure prepared pursuant to

5-30  subsection 3 of NRS 385.351. Should the governing body fail to

5-31  adopt a final budget that complies with the requirements of law and

5-32  the regulations of the Committee on Local Government Finance on

5-33  or before the required date, the budget adopted and used for

5-34  certification of the combined ad valorem tax rate by the Department

5-35  of Taxation for the current year, adjusted as to content and rate in

5-36  such a manner as the Department of Taxation may consider

5-37  necessary, automatically becomes the budget for the ensuing fiscal

5-38  year. When a budget has been so adopted by default, the governing

5-39  body may not reconsider the budget without the express approval of

5-40  the Department of Taxation. If the default budget creates a

5-41  combined ad valorem tax rate in excess of the limit imposed by

5-42  NRS 361.453, the Nevada Tax Commission shall adjust the budget

5-43  as provided in NRS [361.4547 or] 361.455.

5-44      3.  The final budget must be certified by a majority of all

5-45  members of the governing body and a copy of it, together with an

6-1  affidavit of proof of publication of the notice of the public hearing,

6-2  must be transmitted to the Nevada Tax Commission. If a tentative

6-3  budget is adopted by default as provided in subsection 2, the clerk of

6-4  the governing body shall certify the budget and transmit to the

6-5  Nevada Tax Commission a copy of the budget, together with an

6-6  affidavit of proof of the notice of the public hearing, if that notice

6-7  was published. Certified copies of the final budget must be

6-8  distributed as determined by the Department of Taxation.

6-9  4.  Upon the adoption of the final budget or the amendment of

6-10  the budget in accordance with NRS 354.598005, the several

6-11  amounts stated in it as proposed expenditures are appropriated for

6-12  the purposes indicated in the budget.

6-13      5.  No governing body may adopt any budget which

6-14  appropriates for any fund any amount in excess of the budget

6-15  resources of that fund.

6-16      6.  If a local government makes a change in its final budget

6-17  which increases the combined ad valorem tax rate, the local

6-18  government shall submit the amended final budget to the county

6-19  auditor within 15 days after making the change.

6-20      Sec. 5.  NRS 354.705 is hereby amended to read as follows:

6-21      354.705  1.  As soon as practicable after the Department takes

6-22  over the management of a local government, the Executive Director

6-23  shall:

6-24      (a) Determine the total amount of expenditures necessary to

6-25  allow the local government to perform the basic functions for which

6-26  it was created;

6-27      (b) Determine the amount of revenue reasonably expected to be

6-28  available to the local government; and

6-29      (c) Consider any alternative sources of revenue available to the

6-30  local government.

6-31      2.  If the Executive Director determines that the available

6-32  revenue is not sufficient to provide for the payment of required debt

6-33  service and operating expenses, he may submit his findings to the

6-34  Committee who shall review the determinations made by the

6-35  Executive Director. If the Committee determines that additional

6-36  revenue is needed, it shall prepare a recommendation to the Nevada

6-37  Tax Commission as to which one or more of the following

6-38  additional taxes or charges should be imposed by the local

6-39  government:

6-40      (a) The levy of a property tax up to a rate which , when

6-41  combined with all other overlapping rates levied in the State ,

6-42  including, without limitation, those levies that are excluded from

6-43  the calculation of the limitation on the total ad valorem tax levy

6-44  for all public purposes set forth in NRS 361.453, does not exceed

6-45  $4.50 on each $100 of assessed valuation.

7-1  (b) An additional tax on transient lodging at a rate not to exceed

7-2  1 percent of the gross receipts from the rental of transient lodging

7-3  within the boundaries of the local government upon all persons in

7-4  the business of providing lodging. Any such tax must be collected

7-5  and administered in the same manner as all other taxes on transient

7-6  lodging are collected by or for the local government.

7-7  (c) Additional service charges appropriate to the local

7-8  government.

7-9  (d) If the local government is a county or has boundaries that are

7-10  conterminous with the boundaries of the county:

7-11          (1) An additional tax on the gross receipts from the sale or

7-12  use of tangible personal property not to exceed one quarter of 1

7-13  percent throughout the county. The ordinance imposing any such tax

7-14  must include provisions in substance which comply with the

7-15  requirements of subsections 2 to 5, inclusive, of NRS 377A.030.

7-16          (2) An additional governmental services tax of not more than

7-17  1 cent on each $1 of valuation of the vehicle for the privilege of

7-18  operating upon the public streets, roads and highways of the county

7-19  on each vehicle based in the county except those vehicles exempt

7-20  from the governmental services tax imposed pursuant to chapter 371

7-21  of NRS or a vehicle subject to NRS 706.011 to 706.861, inclusive,

7-22  which is engaged in interstate or intercounty operations. As used in

7-23  this subparagraph, “based” has the meaning ascribed to it in

7-24  NRS 482.011.

7-25      3.  Upon receipt of the plan from the Committee, a panel

7-26  consisting of three members of the Nevada Tax Commission

7-27  appointed by the Nevada Tax Commission and three members of the

7-28  Committee appointed by the Committee shall hold a public hearing

7-29  at a location within the boundaries of the local government in which

7-30  the severe financial emergency exists after giving public notice of

7-31  the hearing at least 10 days before the date on which the hearing will

7-32  be held. In addition to the public notice, the panel shall give notice

7-33  to the governing body of each local government whose jurisdiction

7-34  overlaps with the jurisdiction of the local government in which the

7-35  severe financial emergency exists.

7-36      4.  After the public hearing conducted pursuant to subsection 3,

7-37  the Nevada Tax Commission may adopt the plan as submitted or

7-38  adopt a revised plan. Any plan adopted pursuant to this section must

7-39  include the duration for which any new or increased taxes or charges

7-40  may be collected which must not exceed 5 years.

7-41      5.  Upon adoption of the plan by the Nevada Tax Commission,

7-42  the local government in which the severe financial emergency exists

7-43  shall impose or cause to be imposed the additional taxes and charges

7-44  included in the plan for the duration stated in the plan or until the

8-1  severe financial emergency has been determined by the Nevada Tax

8-2  Commission to have ceased to exist.

8-3  6.  The allowed revenue from taxes ad valorem determined

8-4  pursuant to NRS 354.59811 does not apply to any additional

8-5  property tax levied pursuant to this section.

8-6  7.  If a plan fails to satisfy the expenses of the local government

8-7  to the extent expected, the Committee shall report such failure to:

8-8  (a) The county for consideration of absorption of services; or

8-9  (b) If the local government is a county, to the next regular

8-10  session of the Legislature.

8-11      Sec. 6.  NRS 354.723 is hereby amended to read as follows:

8-12      354.723  1.  If the Executive Director determines that a severe

8-13  financial emergency which exists in a local government under

8-14  management by the Department is unlikely to cease to exist within 3

8-15  years, he shall determine:

8-16      (a) The amount any tax or mandatory assessment levied by the

8-17  local government must be raised to ensure a balanced budget for the

8-18  local government; and

8-19      (b) The manner in which the services provided by the local

8-20  government must be limited to ensure a balanced budget for the

8-21  local government,

8-22  and submit his findings to the Committee.

8-23      2.  The Committee shall review the findings submitted by the

8-24  Executive Director pursuant to subsection 1. If the Committee

8-25  determines that the severe financial emergency which exists in the

8-26  local government is unlikely to cease to exist within 3 years and that

8-27  the findings made by the Executive Director are appropriate, the

8-28  Committee shall submit its recommendation to the Nevada Tax

8-29  Commission. If the Committee determines that the financial

8-30  emergency is likely to cease to exist within 3 years, that decision is

8-31  not subject to review by the Nevada Tax Commission.

8-32      3.  The Nevada Tax Commission shall schedule a public

8-33  hearing within 30 days after the Committee submits its

8-34  recommendation. The Nevada Tax Commission shall provide public

8-35  notice of the hearing at least 10 days before the date on which the

8-36  hearing will be held. The Executive Director shall provide copies of

8-37  all documents relevant to the recommendation of the Committee to

8-38  the governing body of the local government in severe financial

8-39  emergency.

8-40      4.  If, after the public hearing, the Nevada Tax Commission

8-41  determines that the recommendation of the Committee is

8-42  appropriate, a question must be submitted to the electors of the local

8-43  government at the next primary or general municipal election or

8-44  primary or general state election, as applicable, asking whether the

8-45  local government should be disincorporated or dissolved. If the

9-1  electors of the local government do not approve the disincorporation

9-2  or dissolution of the local government:

9-3  (a) The maximum ad valorem tax levied within the local

9-4  government, if any, must be raised to $5 on each $100 of assessed

9-5  valuation;

9-6  (b) Any other taxes or mandatory assessments levied in the local

9-7  government, notwithstanding any limitation on those taxes or

9-8  assessments provided by statute, must be raised in an amount the

9-9  Nevada Tax Commission determines is necessary to ensure a

9-10  balanced budget for the local government; and

9-11      (c) The services provided by the local government

9-12  must be limited in a manner the Nevada Tax Commission

9-13  determines is necessary to ensure a balanced budget for the local

9-14  government.

9-15  In calculating the rate of tax required by paragraph (a), those

9-16  levies that are excluded from the calculation of the limitation on

9-17  the total ad valorem tax levy for all public purposes set forth in

9-18  NRS 361.453 must be included.

9-19      5.  If the electors of the local government approve the

9-20  disincorporation or dissolution of a local government that is:

9-21      (a) Created by another local government, it must be

9-22  disincorporated or dissolved:

9-23          (1) Pursuant to the applicable provisions of law; or

9-24          (2) If there are no specific provisions of law providing for

9-25  the disincorporation or dissolution of the local government, by the

9-26  entity that created the local government. If, at the time of the

9-27  disincorporation or dissolution of the local government pursuant to

9-28  this paragraph, there are any outstanding loans or bonded

9-29  indebtedness of the local government, including, without limitation,

9-30  loans made to the local government by the county in which the local

9-31  government is located, the taxes for the payment of the bonds or

9-32  other indebtedness must continue to be levied and collected in the

9-33  same manner as if the local government had not been

9-34  disincorporated or dissolved until all outstanding indebtedness is

9-35  repaid, but for all other purposes the local government shall be

9-36  deemed disincorporated or dissolved at the time that the entity

9-37  which created the local government disincorporates or dissolves the

9-38  local government. Any other liabilities and any remaining assets

9-39  shall revert to the entity that created the local government which is

9-40  being disincorporated or dissolved.

9-41      (b) Created by a special or local act of the Legislature, it may

9-42  only be disincorporated or dissolved by the Legislature. The

9-43  Executive Director shall submit notification of the vote approving

9-44  the disincorporation or dissolution of the local government to the

9-45  Director of the Legislative Counsel Bureau for transmittal to the

10-1  Legislature. At the first opportunity, the Legislature shall consider

10-2  the question of whether the special or local act will be repealed.

10-3      (c) Created in any other manner, it must be disincorporated or

10-4  dissolved:

10-5          (1) Pursuant to the applicable provisions of law; or

10-6          (2) If there are no specific provisions of law providing for

10-7  the disincorporation or dissolution of the local government, by the

10-8  governing body of that local government. If, at the time of the

10-9  disincorporation or dissolution of the local government pursuant to

10-10  this paragraph, there are any outstanding loans or bonded

10-11  indebtedness of the local government, including, without limitation,

10-12  loans made to the local government by the county or counties in

10-13  which the local government is located, the taxes for the payment of

10-14  the bonds or other indebtedness must continue to be levied and

10-15  collected in the same manner as if the local government had not

10-16  been disincorporated or dissolved until all outstanding indebtedness

10-17  is repaid, but for all other purposes the local government shall be

10-18  deemed disincorporated or dissolved at the time that the governing

10-19  body of the local government disincorporates or dissolves the local

10-20  government. Except as otherwise provided in this subparagraph, any

10-21  other liabilities and any remaining assets of the local government

10-22  shall revert to the board of county commissioners of the county in

10-23  which the local government is located. If the local government is

10-24  located in more than one county, the governing body of the local

10-25  government shall apportion the remaining liabilities and assets

10-26  among the boards of county commissioners of the counties in which

10-27  the local government is located.

10-28     6.  Within 10 days after the Nevada Tax Commission makes a

10-29  determination pursuant to subsection 4, the Executive Director shall

10-30  notify:

10-31     (a) The city clerk, if the local government is a city; or

10-32     (b) The county clerk in all other cases,

10-33  and provide the clerk with the amount any tax or mandatory

10-34  assessment levied by the local government must be raised and a

10-35  description of the manner in which the services provided by the

10-36  local government must be limited to ensure a balanced budget for

10-37  the local government.

10-38     7.  After the Executive Director notifies the city clerk or the

10-39  county clerk, as applicable, pursuant to subsection 6, the clerk shall

10-40  cause to be published in a newspaper of general circulation that is

10-41  printed in the local government a notice of the election once in each

10-42  calendar week for 2 successive calendar weeks by two weekly

10-43  insertions a week apart, the first publication to be not more than 30

10-44  days nor less than 22 days next preceding the date of the election. If

10-45  no newspaper is printed in the local government, publication of the

11-1  notice of election must be made in a newspaper printed in this state

11-2  and having a general circulation in the local government.

11-3      8.  The notice required pursuant to subsection 7 must contain

11-4  the following information:

11-5      (a) That the Nevada Tax Commission has determined that the

11-6  severe financial emergency which exists in the local government is

11-7  unlikely to cease to exist within 3 years;

11-8      (b) That the question of whether the local government should be

11-9  disincorporated or dissolved will be submitted to the electors of the

11-10  local government at the next primary or general municipal election

11-11  or the next primary or general state election, as applicable; and

11-12     (c) That if the electors do not approve the disincorporation or

11-13  dissolution:

11-14         (1) The maximum ad valorem tax levied within the local

11-15  government, if any, will be raised to $5 on each $100 of assessed

11-16  valuation;

11-17         (2) Any taxes or mandatory assessment levied in the local

11-18  government will be raised to ensure a balanced budget for the local

11-19  government and the amount by which those taxes or mandatory

11-20  assessments will be raised; and

11-21         (3) The services the local government provides will be

11-22  limited to ensure a balanced budget for the local government and the

11-23  manner in which those services will be limited.

11-24     9.  If any provisions providing generally for the

11-25  disincorporation or dissolution of the local government require that

11-26  the question of disincorporating or dissolving be published or

11-27  submitted to a vote of the electors of the local government, the

11-28  publication required by subsection 3 and the election required by

11-29  subsection 4 satisfy those requirements. If:

11-30     (a) There is any other conflict between the provisions of this

11-31  section and any provisions providing generally for the

11-32  disincorporation or dissolution of a local government; or

11-33     (b) The provisions providing generally for the disincorporation

11-34  or dissolution of a local government provide additional rights to

11-35  protest the disincorporation or dissolution of a local government not

11-36  provided by this section,

11-37  the provisions of this section control a disincorporation or

11-38  dissolution pursuant to this section and any person wishing to

11-39  protest such a disincorporation or dissolution must proceed in

11-40  accordance with the provisions of this section.

11-41     10.  As used in this section, “local government” does not

11-42  include a county, a school district or any agency or department of a

11-43  county or city which prepares a budget separate from that of the

11-44  parent political subdivision.

 

12-1      Sec. 7.  NRS 450.760 is hereby amended to read as follows:

12-2      450.760  In a county whose population is less than 400,000:

12-3      1.  If, after a hearing, the board of county commissioners

12-4  determines that the dissolution of a hospital district is necessary, the

12-5  board shall by resolution provide for the dissolution of the hospital

12-6  district. On and after the filing of the resolution with the county

12-7  recorder, the hospital district shall be deemed dissolved.

12-8      2.  Before dissolving a hospital district pursuant to subsection 1,

12-9  the board of county commissioners shall determine whether the

12-10  proceeds from the taxes currently being levied in the district, if any,

12-11  for the operation of the hospital and the repayment of debt are

12-12  sufficient to repay any outstanding obligations of the hospital

12-13  district within a reasonable period after the dissolution of

12-14  the district. If there are no taxes currently being levied for the

12-15  hospital district or the taxes being levied are not sufficient to repay

12-16  the outstanding obligations of the hospital district within a

12-17  reasonable period after the dissolution of the district, before

12-18  dissolving the district pursuant to subsection 1 the board of county

12-19  commissioners may levy a property tax on all of the taxable

12-20  property in the district that is sufficient, when combined with any

12-21  revenue from taxes currently being levied in the district, to repay the

12-22  outstanding obligations of the hospital district within a reasonable

12-23  period after the dissolution of the district. The allowed revenue from

12-24  taxes ad valorem determined pursuant to NRS 354.59811 does not

12-25  apply to any additional property tax levied pursuant to this

12-26  subsection. If the hospital district is being managed by the

12-27  Department of Taxation pursuant to NRS 354.685 to 354.725,

12-28  inclusive, at the time of dissolution, the rate levied pursuant to this

12-29  subsection must not be included in the total ad valorem tax levy for

12-30  the purposes of the application of the limitation in NRS 361.453, but

12-31  the rate levied , when combined with all other overlapping rates

12-32  levied in the State , including, without limitation, those levies that

12-33  are excluded from the calculation of the limitation on the total ad

12-34  valorem tax levy for all public purposes set forth in NRS 361.453,

12-35  must not exceed $4.50 on each $100 of assessed valuation. The

12-36  board of county commissioners shall discontinue any rate levied

12-37  pursuant to this subsection on a date that will ensure that no taxes

12-38  are collected for this purpose after the outstanding obligations of the

12-39  hospital district have been paid in full.

12-40     3.  If, at the time of the dissolution of the hospital district, there

12-41  are any outstanding loans, bonded indebtedness or other obligations

12-42  of the hospital district, including, without limitation, unpaid

12-43  obligations to organizations such as the public employees’

12-44  retirement system, unpaid salaries or unpaid loans made to the

12-45  hospital district by the county, the taxes being levied in the district

13-1  at the time of dissolution must continue to be levied and collected in

13-2  the same manner as if the hospital district had not been dissolved

13-3  until all outstanding obligations of the district have been paid in full,

13-4  but for all other purposes the hospital district shall be deemed

13-5  dissolved from the time the resolution is filed pursuant to

13-6  subsection 1.

13-7      4.  If the hospital district is being managed by the Department

13-8  of Taxation pursuant to NRS 354.685 to 354.725, inclusive, at the

13-9  time of dissolution, the management ceases upon dissolution, but

13-10  the board of county commissioners shall continue to make such

13-11  financial reports to the Department of Taxation as the Department

13-12  deems necessary until all outstanding obligations of the hospital

13-13  district have been paid in full.

13-14     5.  The property of the dissolved hospital district may be

13-15  retained by the board of county commissioners for use as a hospital

13-16  or disposed of in any manner the board deems appropriate. Any

13-17  proceeds of the sale or other transfer of the property of the dissolved

13-18  hospital district and any proceeds from taxes which had been levied

13-19  and received by the hospital district before dissolution, whether

13-20  levied for operating purposes or for the repayment of debt, must be

13-21  used by the board of county commissioners to repay any

13-22  indebtedness of the hospital district.

13-23     Sec. 8.  If, before July 1, 2003, the governing body of a county,

13-24  city or unincorporated town has levied an additional ad valorem tax

13-25  pursuant to the provisions of subsection 2 of NRS 361.453 and that

13-26  levy does not expire or is not discontinued before July 1, 2003, that

13-27  levy must be included in the calculation of the limitation set forth in

13-28  subsection 1 of NRS 361.453 until it expires.

13-29     Sec. 9.  This act becomes effective on July 1, 2003.

 

13-30  H