AJR 2 — Proposes to amend the Nevada Constitution to revise provisions governing the rate of the tax upon the net proceeds of minerals extracted in this State. (BDR C-29)

A.J.R.Assembly Joint Resolution No.

22– ACommittee SSEMBLYof JOINTthe RWhole ESOLUTIONFILE NONUMBER.......... .

2– C OMMITTEE OF THE W HOLE AUGUST 1, 2020 ____________ Referred to Committee of the Whole SUMMARY—Proposes to amend the Nevada Constitution to revise provisions governing the rate of the tax upon the net proceeds of minerals extracted in this State.

(BDR C-29) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

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

LegislativeLegUnder Counsel’sthe Digest:Nevada Constitution, the Legislature must impose a tax upon the net proceeds of minerals extracted in this State at a rate not to exceed 5 percent of the net proceeds.

proceeds of minerals extracted in this State at a rate not to exceed 5 percent of the net proceeds.

(1) requires the Legislature to appropriate to each county an amount equal to the net proceeds of the minerals taxed in each taxing district in the county multiplied by the property taxamount rateamong imposedthe governmental units and districts in the county in the samet of that taxingproportion district;that property taxes are distributed among those governmental units and districts.

andThis (2)resolution requiresproposes theto apportionmentamend of that amount among the governmentalNevada unitsConstitution andto: districts in the county in the same districts.

that property taxes are distributed among those governmental units and This resolution proposes to amend the Nevada Constitution to:

and (2) establish the minimum rate of the tax on the net proceedstaxing ofdistrict minerals extracted in thiswhich Statethe asextractive theoperation propertyis taxlocated.tax rate imposed in the taxingEXPLANATION district– Matter in whichbolded theitalics extractive operation is located.new;

Rmatter ESOLVEDbetween BYbrackets THE[omitted Amaterial] SSEMBLYis ANDmaterial SENATEto OF THE STATE OF N EVADA , OINTLY , That Section 5 of Article 10 of the Nevada Constitution be amendedomitted. to read as follows:

-R *AJR2*ESOLVED –BY 2THE –A Sec.SSEMBLY AND SENATE OF THE S TATE OF N EVADA , JOINTLY , That Section 5 of Article 10 of the Nevada Constitution be amended to read as follows:

Sec.

The total amount so appropriated to each county must be apportioned among the respective governmental units and districts within it, including the county itself and the school district, in the same - 32nd Special Session (2020) – 2 – proportion as they share in the total taxes collected on property according to value.

Each patented mine or mining claim must be assessed and taxed as other real property is assessed and taxed, except that no value may be attributed to any mineral known or believed to underlie it, and no value may be attributed to the surface of a mine or claim if one hundred dollars’ worth of labor has been actually performed on the mine or claim during the year preceding the assessment.

H~~~~~ 20 - *AJR2*32nd Special Session (2020)