Nevada 31st (2020) Special Session Status: In Committee

AB 4 — Revises provisions relating to the tax on the net proceeds of minerals extracted and the use thereof. (BDR 32-25)

Last action — No further action taken.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 31st (2020) Special Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

AN ACT relating to governmental financial administration; revising the formula for determining the measure of the tax on the net proceeds of minerals; creating the Supplemental Support for Classroom Instruction Account; requiring the transfer of a portion of the tax on the net proceeds of minerals to the Account; providing for the use of money in the Account; making an appropriation; and providing other matters properly relating thereto.

Bill Text

What changed in the latest version

128 added · 334 removed

128 line(s) added, 334 removed.

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REQUIRES TWO-THIRDS MAJORITY VOTE (§ 1) (Reprinted with amendments adopted on July 18, 2020) SECOND REPRINT A.B.
REQUIRES TWO-THIRDS MAJORITY VOTE (§ 1) (Reprinted with amendments adopted on July 16, 2020) FIRST REPRINT A.B.
4 ASSEMBLY BILL N O.
4 A SSEMBLY BILL NO .
4–COMMITTEE OF THE W HOLE JULY 16, 2020 ____________ Referred to Committee of the Whole SUMMARY—Revises provisions relating to the tax on the net proceeds of minerals extracted and the use thereof.
4–COMMITTEE OF THE W HOLE JULY 16, 2020 ____________ Referred to Committee of the Whole SUMMARY—Revises the formula for determining the tax on the net proceeds of minerals extracted.
AN ACT relating to governmental financial administration;
AN ACT relating to taxation;
creating the Supplemental Support for Classroom Instruction Account;
requiring the transfer of a portion of the tax on the net proceeds of minerals to the Account;
providing for the use of money in the Account;
making an appropriation;
(NRS gross yield of a mining operation for the purpose of determining the taxable net proceeds.
(NRS 362.100-362.240) Under existing law, certain deductions are allowed from the proceeds.
(NRS 362.120) Section 1 of this bill reduces the amount of those deductions by 40 percent for each extractive operation where the gross proceeds from minerals extracted exceeds $10,000,000, except for the portion of the proceeds that are paid as royalties that are taxable to the recipient of the royalty.
(NRS 362.120) Section 1 of this bill reduces the amount of thosele net deductions by 40 percent, except for the portion of the proceeds that are paid as royalties that are taxable to the recipient of the royalty.
Section 4 of this bill provides that this reduction in the amount of these deductions thereafter.
Section 4 of this bill provides that this reduction in the amount of these deductions applies to the taxes due for the calendar year 2020 and each calendar year thereafter.
Thus, the reduction in the amount of these deductions would apply to the tax paid in fiscal year 2021 based on the net proceeds of the minerals extracted for calendar year 2020.
Thus, the year 2021 based on the net proceeds of the minerals extracted for calendar yearal 2020.
Existing law creates several accounts to be used for certain purposes relating to education.
(NRS 387.1247, 387.1253, 387.129) Section 2.5 of this bill creates the Supplemental Support for Classroom Instruction Account.
Section 2.7 of this bill Account:
(1) must be distributed on an equal, per pupil basis to the school districts, the governing body of the university school for profoundly gifted pupils and the State Public Charter School Authority for block grants in an equal, per pupil - *AB4_R2* – 2 – amount to the public schools of this State;
and (2) may be used only for the purpose of providing classroom instruction to the pupils enrolled in the public schools of $50,000,000 of the State General Fund portion of the tax on the net proceed of minerals to the Supplemental Support for Classroom Instruction Account.
Section 2.9 of this bill appropriates $50,000,000 to the Account for the New Nevada Education Funding Plan.
(a) Sold;
- *AB4_R1* – 2 – (a) Sold;
(a) Except as otherwise provided in subsection 4:
(a) Sixty percent of the amount of:
The annual - *AB4_R2* – 3 – depreciation charge consists of amortization of the original cost in a manner prescribed by regulation of the Nevada Tax Commission.
The annual depreciation charge consists of amortization of the original cost in a manner prescribed by regulation of the Nevada Tax Commission.
[(j)] (10) The costs of Nevada-based corporate services relating to [paragraphs (e)] subparagraphs (5) to [(i),] (9), inclusive.
- *AB4_R1* – 3 – [(j)] (10) The costs of Nevada-based corporate services relating to [paragraphs (e)] subparagraphs (5) to [(i),] (9), inclusive.
If the gross proceeds of a geographically separate extractive operation in a calendar year exceed $10,000,000, the amount of any deduction set forth in paragraph (a) of subsection 3 for that operation may not exceed 60 percent of the amount of that deduction as determined pursuant to the applicable subparagraph of that paragraph.
5.
[5.] 6.
5.
The Department shall report annually to the Mining - *AB4_R2* – 4 – Oversight and Accountability Commission the expenses and deductions of each mining operation in the State of Nevada.
The Department shall report annually to the Mining Oversight and Accountability Commission the expenses and deductions of each mining operation in the State of Nevada.
[6.] 7.
6.
(c) The operating of the facilitiesor equipment for transportation;
(c) The operating of the facilities or equipment for transportation;
[7.] 8.
7.
(g) Any federal, state or local taxes.
- *AB4_R1* – 4 – (g) Any federal, state or local taxes.
[8.] 9.
8.
As used in this section, “Nevada-based corporate services” means corporate services which are performed in the State of Nevada from an office located in this State and which directly support mining operations in this State, including, without limitation, accounting functions relating to mining operations at a mine site in this State such as payroll, accounts payable, production reporting, cost reporting, state and local tax reporting and recordkeeping concerning property.
As used in this section, “Nevada-based corporate services” means corporate services which are performed in the State of Nevada from an office located in this State and which directly limitation, accounting functions relating to mining operations at a mine site in this State such as payroll, accounts payable, production reporting, cost reporting, state and local tax reporting and recordkeeping concerning property.
1.5.
NRS 362.170 is hereby amended to read as follows:
362.170 1.
There is hereby appropriated to each county the total of the amounts obtained by multiplying, for each extractive operation situated within the county, the net proceeds of that operation and any royalties paid by that operation, by the combined rate of tax ad valorem, excluding any rate levied by the State of Nevada, for property at that site, plus a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to the county.
The Department shall report to the State Controller on or before May 25 of each year [the] :
- *AB4_R2* – 5 – (a) The amount appropriated to each county, as calculated for each operation from the final statement made in February of that year for the preceding calendar year.
The State Controller shall distribute all money due to a county on or before May 30 of each year.
(b) The total amount of the tax collected by the Department pursuant to NRS 362.100 to 362.240, inclusive, that is not appropriated to the counties pursuant to this subsection, plus the amount of any penalties and interest collected by the Department that is not appropriated to the counties pursuant to this subsection.
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On or before May 30 of each year, the State Controller shall:
(1) Transfer the first $50,000,000 of the amount determined pursuant to this paragraph to the Supplemental Support for Classroom Instruction Account created by section 2.5 of this act for use in accordance with section 2.7 of this act;
and (2) Allocate the remaining amount determined pursuant to this paragraph to the State General Fund.
The county treasurer shall apportion to each local government or other local entity an amount calculated by:
(Deleted by amendment.) Sec.
(a) Determining the total of the amounts obtained by multiplying, for each extractive operation situated within its jurisdiction, the net proceeds of that operation and any royalty payments paid by that operation, by the rate levied on behalf of that local government or other local entity;
(b) Adding to the amount determined pursuant to paragraph (a) a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to that local government or local entity;
and (c) Subtracting from the amount determined pursuant to paragraph (b) a commission of 5 percent, of which 3 percent must be deposited in the county general fund and 2 percent must be accounted for separately in the account for the acquisition and improvement of technology in the office of the county assessor created pursuant to NRS 250.085.
The amounts apportioned pursuant to subsection 2, including, without limitation, the amount retained by the county and excluding the percentage commission, must be applied to the uses for which each levy was authorized in the same proportion as the rate of each levy bears to the total rate.
4.
The Department shall report to the State Controller on or before May 25 of each year the amount received as tax upon the net proceeds of geothermal resources which equals the product of those net proceeds multiplied by the rate of tax levied ad valorem by the State of Nevada.
Sec.
2.
(Deleted by amendment.) - *AB4_R2* – 6 – Sec.
2.3.
Chapter 387 of NRS is hereby amended by adding thereto the provisions set forth as sections 2.5 and 2.7 of this act.
Sec.
2.5.
1.
The Supplemental Support for Classroom Instruction Account is hereby created in the State General Fund, to be administered by the Superintendent of Public Instruction.
2.
The money in the Account must be invested as other money of the State is invested.
All interest and income earned on the money in the Account must be credited to the Account.
3.
The money in the Account must be used only for the purposes specified in section 2.7 of this act.
4.
Any money remaining in the Account at the end of a fiscal year does not revert to the State General Fund, and the balance in the Account must be carried forward.
Sec.
2.7.
1.
Using the method described in subsection 2, the Superintendent of Public Instruction shall transfer the balance of the money in the Supplemental Support for Classroom Instruction Account created by section 2.5 of this act to school districts, the governing bodies of university schools for profoundly gifted pupils and the State Public Charter School Authority for block grants to each public school in this State for the purposes described in subsection 3.
The money must not be used for administrative expenditures of the Department of Education, the State Public Charter School Authority, the governing body of a university school for profoundly gifted pupils or a school district.
2.
On or before July 1 of each year, the Superintendent of Public Instruction shall determine the amount of money per pupil to be transferred pursuant to subsection 1 by dividing the total amount of money available in the Supplemental Support for Classroom Instruction Account by the most recently reported number of pupils enrolled in the public schools of this State.
The Superintendent of Public Instruction shall then determine the amount to be transferred to:
(a) Each school district by multiplying the amount of money per pupil by the number of pupils enrolled in the public schools of the school district;
(b) The governing body of each university school for profoundly gifted pupils by multiplying the amount of money per pupil by the number of pupils enrolled in the university school for profoundly gifted pupils;
and (c) The State Public Charter School Authority by multiplying the amount of money per pupil by the number of pupils enrolled in charter schools sponsored by the State Public Charter School Authority.
3.
The money received by each school district and the State Public Charter School Authority pursuant to subsection 1:
- *AB4_R2* – 7 – (a) Must be distributed by:
(1) Each school district by dividing the amount of money transferred by the Superintendent for Public Instruction to the school district pursuant to subsection 1 by the number of pupils enrolled in the school district to determine a per pupil amount, then multiplying the per pupil amount by the number of pupils enrolled in each public school in the school district to determine the amount of the block grant to be transferred to each such public school;
(2) The governing body of each university school for profoundly gifted pupils by transferring the money received to the university school for profoundly gifted pupils as a block grant;
and (3) The State Public Charter School Authority by dividing the amount of money transferred by the Superintendent for Public Instruction to the State Public Charter School Authority pursuant to subsection 1 by the number of pupils enrolled in charter schools sponsored by the State Public Charter School Authority to determine a per pupil amount, then multiplying the per pupil amount by the number of pupils enrolled in each charter school sponsored by the State Public Charter School Authority to determine the amount of the block grant to be transferred to each such charter school;
and (b) May be used only for the purpose of providing classroom instruction to the pupils enrolled in the public school receiving the block grant.
4.
The money received by each school district, governing body of a university school for profoundly gifted pupils and the State Public Charter School Authority pursuant to subsection 1:
(a) May not be used to settle or arbitrate disputes between a recognized organization representing employees of a school district or public school and the school district or public school, or to settle any negotiations;
(b) May not be used to adjust the district-wide schedule of salaries and benefits of the employees of a school district or the school-wide schedule of salaries and benefits of the employees of a charter school;
(c) Must not be budgeted by a school district, university school for profoundly gifted pupils or charter school in a manner that creates any obligation or deficit for funding in any fiscal year after the fiscal years for which the money was received;
and (d) Must not supplant money that the school district, governing body of a university school for profoundly gifted pupils, State Public Charter School Authority or public school would otherwise spend on classroom instruction.
- *AB4_R2* – 8 – 5.
The money transferred pursuant to subsection 1 must be accounted for separately by each school district, governing body of a university school for profoundly gifted pupils and the State Public Charter School Authority.
On or before November 1 of each year, each school district, governing body of a university school for profoundly gifted pupils and the State Public Charter School Authority shall prepare a report detailing how all money received pursuant to subsection 1 was spent during the immediately preceding fiscal year and submit the report to the Director of the Legislative Counsel Bureau for transmission to the next session of the Legislature, if the report is submitted in an even-numbered year, or to the Legislative Commission, if the report is submitted in an odd-numbered year.
6.
Any remaining balance of the transfer made pursuant to subsection 1 at the end of the fiscal year must be used for the purposes identified in subsection 3, does not revert to the State General Fund and the balance must be carried forward to the next fiscal year.
Sec.
2.9.
There is hereby appropriated from the State General Fund to the Account for the New Nevada Education Funding Plan created by NRS 387.129 the sum of $50,000,000.
Sec.
3.
3.5.
The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.
Sec.
1.
This act becomes effective upon passage and approval.
This section and sections 1 and 2.9 to 4, inclusive, of this act become effective upon passage and approval.
H - *AB4_R1*
2.
Sections 1.5 to 2.7, inclusive, of this act become effective on January 1, 2021.
H - *AB4_R2*
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Amendments

2 amendments

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Action History

  1. No further action taken.

  2. From printer. To re-engrossment. Re-engrossed. Second reprint. To Assembly.

  3. Action of refusal of passage rescinded. Re-referred to Committee of the Whole. To committee. From committee: Amend, and do pass as amended. Read third time. Amended. (Amend. No. 6.) Reprinting dispensed with. Read third time. Lost. (Yeas: 13, Nays: 8.) To printer.

  4. Read first time. Referred to Committee of the Whole. To printer. From printer. To committee. From committee: Amend, and do pass as amended. Declared an emergency measure under the Constitution. Read third time. Amended. (Amend. No. 5.) To printer. From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 29, Nays: 13.) To Senate. In Senate. Read first time. Referred to Committee of the Whole. To committee. From committee: Do pass. Declared an emergency measure under the Constitution. Read third time. Lost. (Yeas: 13, Nays: 8.)

Sponsors

  • Assembly Committee of the Whole · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Assembly Committee of the Whole

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation education
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Frequently asked questions

What does AB 4 do?
AN ACT relating to governmental financial administration; revising the formula for determining the measure of the tax on the net proceeds of minerals; creating the Supplemental Support for Classroom Instruction Account; requiring the transfer of a portion of the tax on the net proceeds of minerals to the Account; providing for the use of money in the Account; making an appropriation; and providing other matters properly relating thereto.
Who sponsors AB 4?
AB 4 is sponsored by Assembly Committee of the Whole.
What is the current status of AB 4?
This bill died with 31st (2020) Special Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 4?
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