Senate Bill No. 489–Committee on Natural Resources

 

March 24, 2003

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Referred to Committee on Taxation

 

SUMMARY—Makes various changes to provisions governing exemption from local school support tax for systems that use renewable energy to generate electricity. (BDR 32‑1135)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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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; exempting from the local school support tax and certain analogous taxes solar thermal energy systems and solar lighting systems that reduce the consumption of electricity or any fossil fuel; delaying the prospective expiration of the exemption from those taxes for systems that use renewable energy to generate electricity; 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 374.307 is hereby amended to read as follows:

1-2  374.307  1.  There are exempted from the taxes imposed by

1-3  this chapter the gross receipts from the sale of, and the storage, use

1-4  or other consumption in this state of, any [product] :

1-5  (a) Product or system designed or adapted to use renewable

1-6  energy to generate electricity and all of its integral components.

1-7  (b) Solar thermal energy system that reduces the consumption

1-8  of electricity or any fossil fuel, and all of its integral components.

1-9  (c) Solar lighting system that reduces the consumption of

1-10  electricity or any fossil fuel, and all of its integral components.

1-11      2.  As used in this section:

2-1  (a) “Biomass” means any organic matter that is available on a

2-2  renewable basis, including, without limitation:

2-3       (1) Agricultural crops and agricultural wastes and residues;

2-4       (2) Wood and wood wastes and residues;

2-5       (3) Animal wastes;

2-6       (4) Municipal wastes; and

2-7       (5) Aquatic plants.

2-8  (b) “Fuel cell” means a device or contrivance that, through the

2-9  chemical process of combining ions of hydrogen and oxygen,

2-10  produces electricity and water.

2-11      (c) “Renewable energy” means a source of energy that occurs

2-12  naturally or is regenerated naturally, including, without limitation:

2-13          (1) Biomass;

2-14          (2) Fuel cells;

2-15          (3) Geothermal energy;

2-16          (4) Solar energy;

2-17          (5) Waterpower; and

2-18          (6) Wind.

2-19  The term does not include coal, natural gas, oil, propane or any

2-20  other fossil fuel, or nuclear energy.

2-21      (d) “Solar lighting system” means a system of related

2-22  components that:

2-23          (1) Uses solar energy to provide indoor lighting; and

2-24          (2) Is designed to work as an integral package such that the

2-25  system is not complete without one of its related components.

2-26      (e) “Solar thermal energy system” means a system of related

2-27  components that:

2-28          (1) Uses solar radiation to heat water; and

2-29          (2) Is designed to work as an integral package such that the

2-30  system is not complete without one of its related components.

2-31      (f) “System designed or adapted to use renewable energy to

2-32  generate electricity” means a system of related components:

2-33          (1) From which at least 75 percent of the electricity

2-34  generated is produced from one or more sources of renewable

2-35  energy; and

2-36          (2) That is designed to work as an integral package such that

2-37  the system is not complete without one of its related components.

2-38      Sec. 2.  Section 3 of chapter 330, Statutes of Nevada 2001, at

2-39  page 1538, is hereby amended to read as follows:

2-40      Sec. 3.  1.  This section becomes effective on July 1,

2-41  2001.

2-42      2.  Sections 1 and 2 of this act become effective on

2-43  July 1, 2001, for the purpose of adopting regulations and on

2-44  January 1, 2002, for all other purposes.

3-1  3.  This act expires by limitation on June 30, [2003.]

3-2  2005.

3-3  Sec. 3.  1.  This section and section 2 of this act become

3-4  effective upon passage and approval.

3-5  2.  Section 1 of this act becomes effective on July 1, 2003, and

3-6  expires by limitation on June 30, 2005.

 

3-7  H