2005 Nevada Revised Statutes - Chapter 377B — Tax for Infrastructure

CHAPTER 377B - TAX FOR INFRASTRUCTURE

NRS 377B.010 Definitions.

NRS 377B.020 Solidwaste defined.

NRS 377B.030 Wastewaterfacilities defined.

NRS 377B.040 Waterauthority defined.

NRS 377B.050 Waterfacilities defined.

NRS 377B.100 Countyordinance imposing tax: Enactment; contents; periodic review of necessity forcontinued imposition; public hearing; plan for expenditure of proceeds;impairment of outstanding obligations prohibited.

NRS 377B.110 Mandatoryprovisions of ordinance imposing tax.

NRS 377B.120 Mandatoryprovision of ordinance amending ordinance imposing tax.

NRS 377B.130 Remittancesto Department; deposit in Sales and Use Tax Account; distribution to counties.

NRS 377B.140 Redistributionby Department.

NRS 377B.150 Infrastructurefund: Deposit of net tax proceeds.

NRS 377B.160 Infrastructurefund: Expenditure of principal, interest and income.

NRS 377B.170 Waterauthority in larger counties required to enter into interlocal agreement toprovide distribution from infrastructure fund to certain cities, towns andother public entities.

NRS 377B.180 Annualreport of city, town or other public entity in interlocal agreement with waterauthority for distribution from infrastructure fund.

NRS 377B.190 Moneyfor payment of cost of project for which tax was imposed: Issuance of bonds orother obligations; direct distribution from infrastructure; authority of boardof county commissioners.

NRS 377B.200 Covenantor other provision to pledge and create lien upon tax proceeds, revenuegenerated by project or proceeds of certain securities.

NRS 377B.210 Departmentrequired to disregard tax in determining amount of security required forpayment of other sales and use taxes under certain circumstances.

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NRS 377B.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS377B.020 to 377B.050, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1997, 2394)

NRS 377B.020 Solidwaste defined. Solid waste has the meaningascribed to it in NRS 444.490.

(Added to NRS by 1997, 2394)

NRS 377B.030 Wastewaterfacilities defined. Wastewater facilitiesmeans:

1. Any devices and systems used in the storage,treatment, control of odor, recycling and reclamation of municipal sewage orindustrial wastes of a liquid nature, including, without limitation, outfallsewers, pumping, power and other equipment, and their appurtenances;

2. Extensions, improvements, remodeling, additions andalterations of any device or system described in subsection 1;

3. Units essential to provide a reliable recycledsupply of water, such as standby treatment units and clear well facilities; and

4. Land that is or will be an integral part of thetreatment process or is used for the ultimate disposal of residues resultingfrom such treatment, including, without limitation, the acquisition andimprovement of wetlands that are designed and used for the discharge ofeffluent.

(Added to NRS by 1997, 2395)

NRS 377B.040 Waterauthority defined. Water authority means awater authority organized as a public agency or an entity created bycooperative agreement pursuant to chapter 277of NRS whose members at the time of formation included the three largest retailwater purveyors in the county and which is responsible for the acquisition,treatment and delivery of water and water resources on a wholesale basis toutilities, governmental agencies and entities and other large customers.

(Added to NRS by 1997, 2395)

NRS 377B.050 Waterfacilities defined. Water facilities meansfacilities pertaining to a water system for the collection, transportation,treatment, purification and distribution of water, including, withoutlimitation, springs, wells, ponds, lakes, water rights, other raw watersources, basin cribs, dams, spillways, retarding basins, detention basins,reservoirs, towers and other storage facilities, pumping plants, infiltrationgalleries, filtration plants, purification systems, other water treatmentfacilities, waterworks plants, pumping stations, gauging stations, ventilatingfacilities, stream gauges, rain gauges, valves, standpipes, connections,hydrants, conduits, flumes, sluices, canals, channels, ditches, pipes, lines, laterals,service pipes, force mains, submains, siphons, other water transmission anddistribution mains, engines, boilers, pumps, meters, apparatus, tools,equipment, fixtures, structures, buildings and other facilities for theacquisition, transportation, treatment, purification and distribution ofuntreated water or potable water for domestic, commercial and industrial useand irrigation, or any combination thereof.

(Added to NRS by 1997, 2395)

NRS 377B.100 Countyordinance imposing tax: Enactment; contents; periodic review of necessity forcontinued imposition; public hearing; plan for expenditure of proceeds;impairment of outstanding obligations prohibited.

1. The board of county commissioners of any county mayby ordinance, but not as in a case of emergency, impose a tax forinfrastructure pursuant to this section and NRS377B.110.

2. An ordinance enacted pursuant to this chapter maynot become effective before a question concerning the imposition of the tax isapproved by a two-thirds majority of the members of the board of countycommissioners. Any proposal to increase the rate of the tax or change thepreviously approved uses for the proceeds of the tax must be approved by atwo-thirds majority of the members of the board of county commissioners. Theboard of county commissioners shall not change a previously approved use forthe proceeds of the tax to a use that is not authorized for that county pursuantto NRS 377B.160.

3. An ordinance enacted pursuant to this section must:

(a) Specify the date on which the tax must first beimposed or on which an increase in the rate of the tax becomes effective, whichmust occur on the first day of the first month of the next calendar quarterthat is at least 120 days after the date on which a two-thirds majority of theboard of county commissioners approved the question.

(b) In a county whose population is 400,000 or more,provide for the cessation of the tax not later than:

(1) The last day of the month in which theDepartment determines that the total sum collected since the tax was firstimposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

(2) June 30, 2025,

whicheveroccurs earlier.

4. The board of county commissioners in a county whosepopulation is 400,000 or more and in which a water authority exists shallreview the necessity for the continued imposition of the tax authorizedpursuant to this chapter at least once every 10 years.

5. Before enacting an ordinance pursuant to thischapter, the board of county commissioners shall hold a public hearingregarding the imposition of a tax for infrastructure. In a county whosepopulation is 400,000 or more and in which a water authority exists, the waterauthority shall also hold a public hearing regarding the tax forinfrastructure. Notice of the time and place of each hearing must be:

(a) Published in a newspaper of general circulation inthe county at least once a week for the 2 consecutive weeks immediatelypreceding the date of the hearing. Such notice must be a display advertisementof not less than 3 inches by 5 inches.

(b) Posted at the building in which the meeting is tobe held and at not less than three other separate, prominent places within thecounty at least 2 weeks before the date of the hearing.

6. Before enacting an ordinance pursuant to thischapter, the board of county commissioners of a county whose population is lessthan 400,000 or a county whose population is 400,000 or more and in which nowater authority exists, shall develop a plan for the expenditure of theproceeds of a tax imposed pursuant to this chapter for the purposes set forthin NRS 377B.160. The plan may includea regional project for which two or more such counties have entered into aninterlocal agreement to expend jointly all or a portion of the proceeds of atax imposed in each county pursuant to this chapter. Such a plan must include,without limitation, the date on which the plan expires, a description of eachproposed project, the method of financing each project and the costs related toeach project. Before adopting a plan pursuant to this subsection, the board ofcounty commissioners of a county in which a regional planning commission hasbeen established pursuant to NRS 278.0262shall transmit to the regional planning commission a list of the proposedprojects for which a tax for infrastructure may be imposed. The regionalplanning commission shall hold a public hearing at which it shall rank eachproject in relative priority. The regional planning commission shall transmitits rankings to the board of county commissioners. The recommendations of theregional planning commission regarding the priority of the proposed projectsare not binding on the board of county commissioners. The board of countycommissioners shall hold at least one public hearing on the plan. Notice of thetime and place of the hearing must be provided in the manner set forth in subsection5. The plan must be approved by the board of county commissioners at a publichearing. Subject to the provisions of subsection 7, on or before the date onwhich a plan expires, the board of county commissioners shall determine whethera necessity exists for the continued imposition of the tax. If the boarddetermines that such a necessity does not exist, the board shall repeal theordinance that enacted the tax. If the board of county commissioners determinesthat the tax must be continued for a purpose set forth in NRS 377B.160, the board shall adopt, inthe manner prescribed in this subsection, a new plan for the expenditure of theproceeds of the tax for such a purpose.

7. No ordinance imposing a tax which is enactedpursuant to this chapter may be repealed or amended or otherwise directly orindirectly modified in such a manner as to impair any outstanding bonds orother obligations which are payable from or secured by a pledge of a taxenacted pursuant to this chapter until those bonds or other obligations havebeen discharged in full.

(Added to NRS by 1997, 2395; A 2003, 2384; 2005, 1778)

NRS 377B.110 Mandatoryprovisions of ordinance imposing tax. An ordinanceenacted pursuant to this chapter must include provisions in substance as follows:

1. A provision imposing a tax upon retailers at therate of not more than:

(a) In a county whose population is 100,000 or more butless than 400,000, one-eighth of 1 percent; or

(b) In all other counties, one-quarter of 1 percent,

of the grossreceipts of any retailer from the sale of all tangible personal property soldat retail, or stored, used or otherwise consumed, in the county.

2. Provisions substantially identical to thosecontained in chapter 374 of NRS, insofar asapplicable.

3. A provision that all amendments to chapter 374 of NRS after the date of enactment ofthe ordinance, not inconsistent with this chapter, automatically become a partof an ordinance enacted pursuant to this chapter.

4. A provision stating the specific purpose for whichthe proceeds of the tax must be expended.

5. A provision that the county shall contract beforethe effective date of the ordinance with the Department to perform allfunctions incident to the administration or operation of the tax in the county.

6. A provision that a purchaser is entitled to arefund, in accordance with the provisions of NRS374.635 to 374.720, inclusive, ofthe amount of the tax required to be paid that is attributable to the taximposed upon the sale of, and the storage, use or other consumption in a countyof, tangible personal property used for the performance of a written contract:

(a) Entered into on or before the effective date of thetax or the increase in the tax; or

(b) For the construction of an improvement to realproperty for which a binding bid was submitted before the effective date of thetax or the increase in the tax if the bid was afterward accepted,

if, underthe terms of the contract or bid, the contract price or bid amount cannot beadjusted to reflect the imposition of the tax or the increase in the tax.

(Added to NRS by 1997, 2397; A 2003, 2385; 2005, 1778)

NRS 377B.120 Mandatoryprovision of ordinance amending ordinance imposing tax. An ordinance amending the ordinance enacted pursuant to NRS 377B.100 must include a provision insubstance that the county shall amend the contract made pursuant to subsection5 of NRS 377B.110 by a contract madebetween the county and the State acting by and through the Department beforethe effective date of the amendatory taxing ordinance, unless the countydetermines with the written concurrence of the Department that no suchamendment of the contract is necessary or desirable.

(Added to NRS by 1997, 2398)

NRS 377B.130 Remittancesto Department; deposit in Sales and Use Tax Account; distribution to counties.

1. All fees, taxes, interest and penalties imposed andall amounts of tax required to be paid to the counties pursuant to this chaptermust be paid to the Department in the form of remittances payable to theDepartment.

2. The Department shall deposit the payments with theState Treasurer for credit to the Sales and Use Tax Account in the StateGeneral Fund.

3. The State Controller, acting upon the collectiondata furnished by the Department, shall monthly:

(a) Transfer from the Sales and Use Tax Account to theappropriate account in the State General Fund a percentage of all fees, taxes,interest and penalties collected pursuant to this chapter during the precedingmonth as compensation to the State for the cost of collecting the taxes. Thepercentage to be transferred pursuant to this paragraph must be the samepercentage as the percentage of proceeds transferred pursuant to paragraph (a)of subsection 3 of NRS 374.785, but thepercentage must be applied to the proceeds collected pursuant to this chapteronly.

(b) Determine for each county an amount of money equalto any fees, taxes, interest and penalties collected in or for that countypursuant to this chapter during the preceding month, less the amounttransferred to the State General Fund pursuant to paragraph (a).

(c) Transfer the amount determined for each county tothe Intergovernmental Fund and remit the money:

(1) In each county whose population is 400,000or more and in which a water authority exists, to the treasurer for the waterauthority.

(2) In each county whose population is less than400,000 or each county whose population is 400,000 or more and in which nowater authority exists, to the county treasurer.

(Added to NRS by 1997, 2398)

NRS 377B.140 Redistributionby Department. The Department may redistributeany fee, tax, penalty and interest to:

1. A county whose population is less than 400,000 or acounty whose population is 400,000 or more and in which no water authorityexists; or

2. The water authority in a county whose population is400,000 or more and in which a water authority exists,

that isentitled thereto, but no such redistribution may be made as to amountsoriginally distributed more than 6 months before the date on which theDepartment obtains knowledge of the improper distribution.

(Added to NRS by 1997, 2398)

NRS 377B.150 Infrastructurefund: Deposit of net tax proceeds.

1. In a county whose population is less than 400,000or a county whose population is 400,000 or more and in which no water authorityexists, the county treasurer shall deposit the money received from the StateController pursuant to NRS 377B.130 inthe county treasury for credit to a fund to be known as the infrastructurefund. The infrastructure fund must be accounted for as a separate fund and notas a part of any other fund. The money for each project included in the planadopted pursuant to subsection 6 of NRS377B.100 must be accounted for separately in the fund.

2. In a county whose population is 400,000 or more andin which a water authority exists, the water authority shall deposit the moneyreceived from the State Controller pursuant to NRS 377B.130 in a separate account of thewater authority to be known as the infrastructure fund. This fund must beaccounted for as a separate fund and not as part of any other fund of the waterauthority.

(Added to NRS by 1997, 2398)

NRS 377B.160 Infrastructurefund: Expenditure of principal, interest and income. Themoney in the infrastructure fund, including interest and any other income fromthe fund:

1. In a county whose population is 400,000 or more,must only be expended by the water authority, distributed by the waterauthority to its members, distributed by the water authority pursuant to NRS 377B.170 to a city or town located inthe county whose territory is not within the boundaries of the area served bythe water authority or to a public entity in such a county which provides wateror wastewater services and which is not a member of the water authority or, ifno water authority exists in the county, by the board of county commissionersfor:

(a) The acquisition, establishment, construction,improvement or equipping of water and wastewater facilities;

(b) The payment of principal and interest on notes,bonds or other securities issued to provide money for the cost of projectsdescribed in paragraph (a); or

(c) Any combination of those purposes.

The board ofcounty commissioners may only expend money from the infrastructure fundpursuant to this subsection in the manner set forth in the plan adopted pursuantto subsection 6 of NRS 377B.100.

2. In a county whose population is 100,000 or more butless than 400,000, must only be expended by the board of county commissionersin the manner set forth in the plan adopted pursuant to subsection 6 of NRS 377B.100 for:

(a) The acquisition, establishment, construction orexpansion of:

(1) Projects for the management of floodplainsor the prevention of floods; or

(2) Facilities relating to public safety;

(b) The payment of principal and interest on notes,bonds or other securities issued to provide money for the cost of projectsdescribed in paragraph (a);

(c) The ongoing expenses of operation and maintenanceof projects described in subparagraph (1) of paragraph (a), if such projectswere included in a plan adopted by the board of county commissioners pursuantto subsection 6 of NRS 377B.100 beforeJanuary 1, 2003; or

(d) Any combination of those purposes.

3. In a county whose population is less than 100,000,must only be expended by the board of county commissioners in the manner setforth in the plan adopted pursuant to subsection 6 of NRS 377B.100 for:

(a) The acquisition, establishment, construction,improvement or equipping of:

(1) Water facilities; or

(2) Wastewater facilities;

(b) The acquisition, establishment, construction,operation, maintenance or expansion of:

(1) Projects for the management of floodplainsor the prevention of floods; or

(2) Facilities for the disposal of solid waste;

(c) The construction or renovation of facilities for schools;

(d) The construction or renovation of facilities havingcultural or historical value;

(e) The payment of principal and interest on notes,bonds or other securities issued to provide money for the cost of projects,facilities and activities described in paragraphs (a) to (d), inclusive; or

(f) Any combination of those purposes.

(Added to NRS by 1997, 2399; A 2003, 1414; 2005, 567)

NRS 377B.170 Waterauthority in larger counties required to enter into interlocal agreement toprovide distribution from infrastructure fund to certain cities, towns andother public entities.

1. In a county whose population is 400,000 or more andin which a water authority exists, the water authority shall enter into aninterlocal agreement with a city or town located in the county whose territoryis not within the boundaries of the area served by the water authority or witha public entity in the county which provides water or wastewater services andwhich is not a member of the water authority to provide a distribution from theinfrastructure fund of the water authority to the city, town or public entity afterthe city, town or public entity has filed with the water authority a detailedplan for acquiring, establishing, constructing, improving or equipping, or anycombination thereof, a water or wastewater facility.

2. Such a city, town or public entity may requestannually from the infrastructure fund of the water authority an amount of theproceeds of the tax for infrastructure received annually by the water authoritythat is equal to the proportion that the assessed valuation of taxable propertywithin the boundaries of the city or town or the area served by the publicentity, except any assessed valuation attributable to the net proceeds ofminerals, bears to the total assessed valuation of taxable property within thecounty, except any assessed valuation attributable to the net proceeds ofminerals. If the boundaries of such a city or town overlap with the boundariesof a public entity in such a county which provides water or wastewater servicesand which is not a member of the water authority, the water authority shallapportion equally between the city or town and the public entity thedistribution from the infrastructure fund attributable to the assessedvaluation in the area where the boundaries overlap.

3. The water authority shall not unreasonably refuse arequest from such a city, town or public entity for a distribution from theinfrastructure fund pursuant to the provisions of this section.

(Added to NRS by 1997, 2399)

NRS 377B.180 Annualreport of city, town or other public entity in interlocal agreement with waterauthority for distribution from infrastructure fund. Ifa water authority in a county whose population is 400,000 or more has enteredinto an interlocal agreement to provide a distribution from the infrastructurefund pursuant to NRS 377B.170 to acity or town located in the county whose territory is not within the boundariesof the area served by the water authority or to a public entity in the countywhich provides water or wastewater services and which is not a member of thewater authority, the city, town or public entity shall transmit to the water authorityon or before December 15 of each year a report that describes:

1. The total distribution received by the city, townor public entity during the preceding fiscal year from the infrastructure fundpursuant to NRS 377B.170;

2. Each project for which the money was distributed;and

3. The status of each project for which the money wasdistributed.

(Added to NRS by 1997, 2401)

NRS 377B.190 Moneyfor payment of cost of project for which tax was imposed: Issuance of bonds orother obligations; direct distribution from infrastructure; authority of boardof county commissioners.

1. Money for the payment of the cost of one or moreprojects for which the board of county commissioners has imposed all or aportion of the tax authorized pursuant to this chapter may be obtained by theissuance of bonds and other securities as provided in this section, or, subjectto any pledges, liens and other contractual limitations made pursuant to thischapter, may be obtained by direct distribution from the infrastructure fund,or may be obtained both by the issuance of such securities and by such directdistribution as determined by the board of county commissioners or, in a countywhose population is 400,000 or more and in which a water authority exists, bythe water authority.

2. The board of county commissioners of a county whosepopulation is less than 400,000 or of a county whose population is 400,000 ormore and in which no water authority exists may, after the enactment of anordinance imposing a tax for infrastructure as authorized by NRS 377B.100, from time to time issuebonds and other securities, which are general or special obligations of thecounty and which may be secured as to principal and interest by a pledgeauthorized by this chapter of the receipts from the taxes imposed by thischapter. The ordinance authorizing the issuance of any bond or other securitymust describe the purpose for which it was issued.

3. After the enactment of an ordinance imposing a taxfor infrastructure by the board of county commissioners of a county whosepopulation is 400,000 or more and in which a water authority exists, the waterauthority or, if so provided in an interlocal agreement to which the waterauthority is a party, one or more of the members of the water authority, mayfrom time to time issue bonds and other securities, which are general orspecial obligations and which may be secured as to principal and interest by apledge authorized by this chapter of the receipts from the taxes imposed bythis chapter.

4. In a county whose population is 400,000 or more, nobonds or other securities may be issued pursuant to this section which arepayable from or secured by, in whole or in part, any revenue from a tax enactedpursuant to this chapter to be collected after:

(a) The last day of the month in which the Departmentdetermines that the total sum collected since the tax was first imposed,exclusive of any penalties and interest, exceeds $2.3 billion; or

(b) June 30, 2025,

whicheveroccurs earlier.

(Added to NRS by 1997, 2400)

NRS 377B.200 Covenantor other provision to pledge and create lien upon tax proceeds, revenuegenerated by project or proceeds of certain securities.

1. Each document providing for the issuance of anybond or security issued pursuant to this chapter which is payable from thereceipts of the taxes imposed by this chapter or revenue generated by one ormore projects for which the board of county commissioners has imposed all or aportion of the tax authorized pursuant to this chapter, may, in addition tocovenants and other provisions authorized in the Local Government SecuritiesLaw, contain a covenant or other provision to pledge and create a lien upon thereceipts of the tax or the revenue generated by one or more projects for whichthe board of county commissioners has imposed all or a portion of the taxauthorized pursuant to this chapter, or upon the proceeds of any bond or securitypending their application to defray the cost of one or more projects for which theboard of county commissioners has imposed all or a portion of the taxauthorized pursuant to this chapter, or any combination of the tax proceeds,generated revenue or security proceeds, to secure the payment of any bond orsecurity issued pursuant to this chapter.

2. Any money pledged to the payment of bonds or othersecurities pursuant to subsection 1 may be treated as pledged revenues of theproject for the purposes of subsection 3 of NRS350.020.

(Added to NRS by 1997, 2401)

NRS 377B.210 Departmentrequired to disregard tax in determining amount of security required forpayment of other sales and use taxes under certain circumstances. If a person has not been habitually delinquent in thepayment of any sales or use tax at any time within the immediately preceding 3years, the Department shall disregard the amount of any tax due pursuant tothis chapter when determining the amount of any security it may require fromthat person for the payment of any sales or use tax.

(Added to NRS by 1997, 2402)