SB 465 — Revises provisions relating to redevelopment areas. (BDR 22-1159)

(ReprintedSenate withBill amendmentsNo. adopted on April 16, 2019) FIRST REPRINT S.B.

465465–Committee SENATEon BILLGovernment NOAffairs .CHAPTER..........

465–COMMITTEE ON GOVERNMENT AFFAIRS M ARCH 25, 2019 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to redevelopment areas.

(BDR 22-1159) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Thecounty Communitycommissioners Redevelopmentor Lawother authorizeslegislative thebody of a city council,or boardcounty ofto declare the need for a redevelopment agency to function in the community.

The CommunityreCommunity the Redevelopment Law grants a redevelopment agency certain powers and duties with regard to the elimination of blight in a redevelopment area in the community.

(Chapter 279 of NRS) Under existing law, the property taxes levied on taxable property located in a redevelopment area that exceed a certain amount are required to be allocated to the redevelopment agency to pay certain costs related to redevelopment in the redevelopment area.

(NRS 279.676) This bill authorizes a redevelopment agency to adopt a resolution requiring that property taxes attributable to certain tax rates levied for the public schools in the county be allocated to the county school district suchtaxes thatattributable theto redevelopmentsuch agencytax wouldrates.uld not receive any portion of the property taxesEXPLANATION attributable– toMatter suchin taxbolded rates.italics is new;

matter between brackets [omitted material] is material to be omitted.

Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in the redevelopment - *SB465_R1* – 2 – area each year by or for the benefit of the State, any city, county, district or other public corporation, after the effective date of the ordinance approving the redevelopment plan, must be divided as follows:

To allocate taxes - 80th Session (2019) – 2 – levied by or for any taxing agency or agencies which did not include the territory in a redevelopment area on the effective date of the ordinance but to which the territory has been annexed or otherwise included after the effective date, the assessment roll of the county last equalized on the effective date of the ordinance must be used in determining the assessed valuation of the taxable property in the redevelopment area on the effective date.

If property which was shown on the assessment roll used to determine the amount of taxes allocated to the taxing agencies is transferred to the State and becomesproperty exemptas fromshown taxation,on the assessedassessment valuationroll oflast theequalized exemptbefore the date on which the property was transferred to the State must bethebe subtracted from the assessed valuation used to determine the amount of (b)revenue Except as otherwise provided in paragraphs (c) , [and] (d) and (e) and NRS 540A.265, that portion of the levied taxes each year in excess of the amount set forth in paragraph (a) must be allocated to and when collected must be paid into a special fund of the redevelopmenttaxing agencyagencies. to pay the costs of redevelopment and to pay the principal of and interest on loans, money advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by the redevelopment agency to finance or refinance, in whole or in part, redevelopment.

(b) Except as otherwise provided in paragraphs (c) , [and] (d) and (e) and NRS 540A.265, that portion of the levied taxes each year in excess of the amount set forth in paragraph (a) must be allocated to and when collected must be paid into a special fund of the redevelopment agency to pay the costs of redevelopment and to pay the principal of and interest on loans, money advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by the redevelopment agency to finance or refinance, in whole or in part, redevelopment.

or (2) The assessment roll last equalized before the effective date of an ordinance adopted pursuant to subsection 5,  whichever occurs later, less the assessed valuation of any exempt property subtracted pursuant to paragraph (a), all of the taxes levied - *SB465_R1* – 3 – and collected upon the taxable property in the redevelopment area must be paid into the funds of the respective taxing agencies.

(c) That portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a tax rate levied by a taxing agency to produce revenues in an amount sufficient to make annual - 80th Session (2019) – 3 – repayments of the principal of, and the interest on, any bonded indebtedness that was approved by the voters of the taxing agency on or after November 5, 1996, must be allocated to and when collected must be paid into the debt service fund of that taxing agency.

(d) That portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a new or increased tax rate levied by a taxing agency and was approved by the voters of the taxing agency on or after November 5, 1996, must be allocated to and whenagency.llected collected must be paid into the appropriate fund of the taxing agency.(e) If an agency has adopted a resolution pursuant to subsection 8, that portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a tax rate levied by a taxing agency:

(e)(1) IfPursuant anto agencyNRS has387.3285 adoptedor 387.3287, if that rate was approved by a resolutionmajority pursuantof tothe forthregistered invoters paragraphwithin (a)the thatarea isof attributablethe totaxing aagency taxvoting rateupon leviedthe byquestion, amust be allocated to, and when collected paid into, the appropriate fund of that taxing agency:agency.

approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.

(a) In a county whose population is 100,000 or more or a city whose population is 150,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.

10 percent of the total assessed valuation of the (b) In a county whose population is 30,000 or more but less than 100,000 or a city whose population is 25,000 or more but less than 150,000, an amount equal to the combined tax rates of the taxing - *SB465_R1* – 4 – agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.

 If the revenue paid to a redevelopment agency must be limited pursuant to paragraph (a), (b) or (c) and the redevelopment agency - 80th Session (2019) – 4 – has more than one redevelopment area, the redevelopment agency shall determine the allocation to each area.

The taxing agencies shall continue to pay to a redevelopment agency any amount which was being paid before July 1, 1987, and in anticipation of which the agency became obligated before July 1, 1987, to repay any bond, loan, money advancedassumed or anyotherwise otherincurred.ness, indebtedness, whether funded, refunded, assumed4. or otherwise incurred.

4.For the purposes of this section, the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan is the assessment roll in existence on March 15 immediately preceding the effective date of the ordinance.

For5. the purposes of this section, the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan is the assessment roll in existence on March 15 imm5.iatIf in any year the assessed value of the taxable property in a redevelopment area located in a city in a county whose population is equalized has decreased by 10 percent or more from the assessed value of the taxable property in the redevelopment area as shown by the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan, the redevelopment agency may adopt an ordinance which provides that the total assessed value of the taxable property in the redevelopment area for the purposes of paragraphs (a) and (b) of subsection 1 is the total assessed value of the taxable property in the redevelopment area as shown by the assessment roll last equalized before the effective date of the ordinance adopted pursuant to this subsection.

AIf in any year the assessed value of the taxable property in a redevelopment area located in a city in a county whose population is 700,000 or more as shown by the assessment roll most recently equalized has decreased by 10 percent or more from the assessed value of the taxable property in the redevelopment area as shown by the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan, the redevelopment agency may adopt an ordinance pursuantwhich toprovides thisthat subsectionthe onlytotal once,assessed value of the taxable property in the redevelopment area for the purposes of paragraphs (a) and (b) of subsection 1 is the electiontotal toassessed adoptvalue suchof anthe taxable property in the redevelopment area as shown by the assessment roll last equalized before the effective date of the ordinance isadopted irrevocable.pursuant to this subsection.

A redevelopment agency may adopt an ordinance pursuant to this irrevocable.nly once, and the election to adopt such an ordinance is 6.

An agency which adopts an ordinance pursuant to subsection 5 and which receives revenue pursuant to paragraph (b) of subsection 1 from taxes on the taxable property located in the redevelopment area affected by the ordinance shall set aside - *SB465_R1* – 5 – 18 percent of that revenue received on and after the effective date of the ordinance to:

or (c) Increase, improve, preserve or enhance public educational facilities and support public educational activities and programs, - 80th Session (2019) – 5 –  which are located in or within 1 mile of the redevelopment area or which serve pupils who reside in or within 1 mile of the redevelopment area.

For each fiscal year, the agency shall prepare a written report concerning the amount of money expended for the purposes set forth in this subsection and shall, on or before November 30 of each year, submit a copy of the report to the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission, if the report is received during an odd- numbered year, or to the next session of the Legislature, if the report is received7. during an even-numbered year.

7.

As used in this subsection, “existing obligations” means the principal and interest, when due, on any bonds, notes or other indebtednessndindebtedness whether funded, refunded, assumed or otherwise incurred by an agency before the effective date of an ordinance adopted by the agency pursuant to subsection 5, to finance or refinance in whole or in part, the redevelopment of a redevelopment area.

An agency may adopt a resolution providing that the portion of the taxes in excess of the amount set forth in paragraph (a)taxing ofagency:ion subsection 1 that is attributable to any tax rate levied by a (a) Pursuant to NRS 387.3285 or 387.3287, if that rate was approved by a majority of the registered voters within the area of the taxing agency:agency voting upon the question, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.

(a)(b) PursuantFor tothe NRSsupport 387.3285 or 387.3287, if that rate was approved by a majority of thepublic registeredschools voters within thea areacounty ofschool thedistrict taxingpursuant agencyto votingNRS upon387.195, the question, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.

- *SB465_R1* – 6 – (b) For the support of public schools within a county school district pursuant to NRS 387.195, must be allocated to, and when collected paid into, the appropriate fund of that taxing agency.