SB 124 — Revises provisions relating to the tax upon the net proceeds of minerals and royalties of mining operations. (BDR 32-908)

and (2) Must not be considered by a fact finder or arbitrator in determining the financial ability of the local government to pay compensation or monetary benefits;benefits .

and[; (3) [Except as otherwise provided in section 77 of chapter 624, Statutes of Nevada 2019, at page 4252, must] Must be transferred to the Education Stabilization Account pursuant to NRS 387.1213.

and (3) Except as otherwise provided in section 77 of chapter 624, Statutes of Nevada 2019, at page 4252, must be transferred to the Education Stabilization Account pursuant to NRS 387.1213.] Sec.

387.1212special 1.revenue fund to be administered by the Superintendent of Public Instruction for the purpose of supporting the operation of the public schools in this State.

The State Education Fund is hereby created as a special revenue fund to be administered by the Superintendent of Public Instruction for the purpose of supporting the operation of the public schools in this State.

(c) The proceeds of the tax imposed pursuant to subsection 1 of NRS(d) The money identified in subsection 8 of NRS 387.195;120A.610;

(d) The money identified in subsection 8 of NRS 120A.610;

- *SB124_R1* – 6 – (g) The money identified in subsection 1 of NRS 328.450;

(i)- 82nd Session (2023) – 6 – NRS 360.850;oney identified in paragraph (a) of subsection 2 of (j) The money identified in paragraph (a) of subsection 2 of NRS 360.850;360.855;

(j) The money identified in paragraph (a) of subsection 2 of NRS 360.855;

(p) The money identified in paragraph (b) of subsection 4 of NRS(q) The portion of the proceeds of the excise tax imposed pursuant to subsection 1 of NRS 678B.390;463.385 identified in paragraph (c) of subsection 5 of NRS 463.385;

(q) The portion of the proceeds of the excise tax imposed pursuant to subsection 1 of NRS 463.385 identified in paragraph (c) of subsection 5 of NRS 463.385;

3.support for the State Education Fund must be provided by directlaw, legislative appropriation from the State General Fund in an amount determined by the Legislature to be sufficient to fund the operation of the public schools in this State for kindergarten through grade 12 for the next ensuing biennium for the population reasonably estimated for that biennium.

In addition to money from any other source provided by law, support for the State Education Fund must be provided by direct legislative appropriation from the State General Fund in an amount determined by the Legislature to be sufficient to fund the operation of the public schools in this State for kindergarten through grade 12 for the next ensuing biennium for the population reasonably estimated for that biennium.

- *SB124_R1*82nd Session (2023) – 7 – 4.claims against the State are paid.paid out on claims as other Sec.

Money in the Fund must be paid out on claims as other claims against the State are paid.

Sec.

Except as otherwise provided in subsections 3 , [and] 4 [,] and 5, each year after the close of the previous fiscal year and before the issuance of the State Controller’s annual report, each county school district shall transfer from the county school district fund to the Education Stabilization Account any amount by which the budgeted[budgeted] actual ending fund balance of the county school district fund exceeds 16.6 percent of the total budgeted[budgeted] actual expenditures for the fund.

Money transferred pursuant to subsection 1 to the Education Stabilization Account is a continuing appropriation solely for the purpose of authorizing the expenditure of the transferred money for thethe3. purposes set forth in this section.

3.The balance in the Education Stabilization Account must not exceed 15 percent of the total of all appropriations and authorizations from the State Education Fund, excluding the Education Stabilization Account, for the immediately preceding fiscal year.

The balance in the Educational Stabilization Account must not exceed 15 percent of the total of all appropriations and authorizations from the State Education Fund, excluding the Education Stabilization Account, for the immediately preceding fiscal year.

or (b) The collection of revenue in any fiscal year will result in the State Education Fund receiving 97 percent or less of the money authorized for expenditure from the State Education Fund,  the Committee shall by resolution establish an amount of money to transfer from the Education Stabilization Account to the State Education Fund and direct the State Controller to transfer that amount to the State Education Fund.

When determining the budgetedactual ending fund balance for the purposes of subsection 1, each county school district shall exclude:

(a)- Any82nd moneySession deposited(2023) – 8 – or before June 30, 2020;ed in the county school district fund on (b) Any money apportioned to the county school district for capital projects or beforedebt Juneservice 30,pursuant 2020;to subsection 2 of NRS 362.170 and deposited in the county school district fund when authorized by law;

- *SB124_R1* – 8 – (b) Any money apportioned to the county school district for capital projects or debt service pursuant to subsection 2 of NRS 362.170 and deposited in the county school district fund when authorized by law;

387.1214the 1.State Education Fund from the State General Fund pursuant toto NRS 387.1212, the Legislature shall determine the statewide base per pupil funding amount for each fiscal year of the biennium, which is the amount of money expressed on a per pupil basis for the projected enrollment of the public schools in this State, determined to be sufficient by the Legislature to fund the costs of all public schools in this State to operate and provide general education to all pupils for any purpose for which specific funding is not appropriated pursuant to paragraph (a), (b) or (e) of subsection 2 or NRS 387.122.

AfterIt ais directthe legislativeintent appropriationof isthe madeLegislature tothat the Statestatewide Educationbase Fundper frompupil thefunding Stateamount Generalfor Fundany pursuantfiscal year, to NRSthe 387.1212,extent thepracticable, Legislaturebe shallnot determineless than the statewide base per pupil funding amount for eachthe fiscalimmediately yearpreceding offiscal theyear, biennium,adjusted whichby isinflation, unless the amount of money expressedcontained onin athe perState pupilEducation basisFund, forexcluding the projectedEducation enrollmentStabilization ofAccount, contained in the publicState schoolsEducation inFund, thisexcluding State,the determinedEducationey toStabilization beAccount, sufficientdecreases byfrom the Legislaturepreceding tofiscal fundyear, it is the costsintent of allthe publicLegislature schoolsthat ina thisproportional Statereduction tobe operatemade andin provideboth generalthe educationstatewide tobase allper pupilspupil forfunding anyamount purposeand forthe whichweighted specific funding is not appropriated pursuant to paragraph (a), (b) or (e) of subsection 22. or NRS 387.122.

It is the intent of the Legislature that the statewide base per pupil funding amount for any fiscal year, to the extent practicable, be not less than the statewide base per pupil funding amount for the immediately preceding fiscal year, adjusted by inflation, unless the amount of money contained in the State Education Fund, excluding the Education Stabilization Account, decreases from the preceding fiscal year.

If the amount of money contained in the State Education Fund, excluding the Education Stabilization Account, decreases from the preceding fiscal year, it is the intent of the Legislature that a proportional reduction be made in both the statewide base per pupil funding amount and the weighted funding appropriated pursuant to paragraph (e) of subsection 2.

After a direct legislative appropriation is made to the State Education Fund from the State General Fund pursuant to NRS 387.1212, the money in the State Education Fund, excluding any amount of money in the Education Stabilization Account, must be appropriated- as82nd establishedSession by(2023) law– 9 – biennium for the following purposes:or each fiscal year of the biennium(a) To each school district, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide food services and transportation for pupils and any other similar service that the followingLegislature purposes:deems appropriate.

(a) To each school district, an amount of money determined to be sufficient by the Legislature, when combined with any other - *SB124_R1* – 9 – resources available for this purpose, to provide food services and transportation for pupils and any other similar service that the Legislature deems appropriate.

(d) To each charter school or university school for profoundly gifted pupils, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide:

(e) To each school district, charter school or university school for profoundly gifted pupils, an amount of money determined to be sufficient by the Legislature, when combined with any other resources available for this purpose, to provide additional weighted funding for each pupil estimated to be enrolled in the school district, charter school or university school for profoundly gifted pupils whowhoct, is:

The adjusted base per pupil funding appropriated pursuant to paragraph (c) of subsection 2 for each school district must be determined by applying the cost adjustment factor established pursuant to NRS 387.1215 which applies to the school district and- the82nd attendanceSession area(2023) adjustment– established10 pursuant– to NRS 387.1218 which applies to each applicable area of the school district to the statewide base per pupil funding amount.

The adjusted base per pupil funding appropriated pursuant to subparagraph (2) of paragraph (d) of subsection 2 for each charter school or university school for profoundly gifted pupils must be - *SB124_R1* – 10 – determined by applying the cost adjustment factor established pursuant to NRS 387.1215 which applies to the charter school or university school and, if applicable, the attendance area adjustment established pursuant to NRS 387.1218 to the statewide base per pupil funding amount.

A pupil who belongs to more than one category of pupils or for whom a school district, charter school or university school for profoundly gifted pupils is eligible to receive the statewide multiplier pursuant to NRS 387.122 mustmustligible to receive only the weighted funding for the single category to which the pupil belongs which has the largest multiplier or the statewide multiplier, whichever is larger.

or (2) The amount of money contained in the State Education Fund, excluding the Education Stabilization Account, increases from the preceding fiscal year but in an amount which, after funding the appropriations required by paragraphs (a) to (d), inclusive, of subsection 2, is insufficient to fund the multiplier for each category of pupils, in which event it is the intent of the Legislature that the remaining money in the State Education Fund be used to provide a multiplier for each category of pupils which is as close as practicable to the multiplier for the preceding fiscal year;

(b) The recommendations of the Commission for the multiplier for each category of pupils be considered and the multiplier for one category- of82nd pupilsSession may(2023) be– changed11 by– an amount that is not proportional to the change in the multiplier for one or more other categories of pupils if the Legislature determines that a disproportionate need to serve the pupils in the affected category exists;

and (c) If the multipliers for all categories of pupils in a fiscal year are increased from the multipliers in the immediately preceding - *SB124_R1* – 11 – fiscal year, a proportional increase is considered for the statewide base per pupil funding amount.

(a) The amount of such money for the county from which the money was collected that does not exceed the total amount of money appropriated pursuant to subsection 2 to the county school district is deemed to be the first money appropriated pursuant to subsection 2 for that county school district [.] and the first money spent by that county school district from the county school district fundfun(b) duringThe amount of such money for the applicablecounty fiscalfrom year.which the money was collected which exceeds the total amount of money appropriated pursuant to subsection 2 to the county school district must be transferred to the county school district and is hereby authorized for expenditure as a continuing appropriation for the purpose of mitigating the adverse effects of the cyclical nature of the industry of extracting and processing minerals on the ability of the county school district to offer its pupils a reasonably equal educational opportunity.

(b) The amount of such money for the county from which the money was collected which exceeds the total amount of money appropriated pursuant to subsection 2 to the county school district must be transferred to the county school district and is hereby authorized for expenditure as a continuing appropriation for the purpose of mitigating the adverse effects of the cyclical nature of the industry of extracting and processing minerals on the ability of the county school district to offer its pupils a reasonably equal educational opportunity.

and (b) May not be used to adjust the district-wide schedules of salaries and benefits of the employees of a school district.

of Sec.

(a) Any estimated payments of the tax made by or on behalf of the taxpayer during the calendar year [2023] 2022 pursuant- to82nd NRSSession 362.115,(2023) as– that12 section– read on January 1, [2023;] 2022;

andand62.115, as that section read on January 1, (b) Any unused credit to which the taxpayer may be entitled as a result of any previous overpayment of the tax.

Notwithstanding any other provision of law, for the calendar year [2023,] 2022, each person extracting any mineral in this State may file with the Department a quarterly report stating an estimate for the year and the actual quarterly amounts of production, gross yield and net proceeds as of - *SB124_R1* – 12 – March 31, June 30, September 30 and December 31 of that year, and pay any additional amount of the portion of the tax due pursuant to paragraph (a) of subsection 1 of NRS 362.115, as that section read on January 1, [2023.] 2022.

The additional estimated tax liability must be calculated by determining the difference between the revised estimates of net proceeds based on the recent production figures as indicated by the quarterly reports and the original estimate supplied pursuant to paragraph (a) of subsection 1 of NRS 362.115, as that section read on January 1, [2023.] 2022.

Notwithstanding any other provision of law, for calendar year [2023,] 2022, if the amount paid pursuant to paragraph (a) of subsection 1 of NRS 362.115, as that section read on January 1, [2023,] 2022, is less than 90 percent of the amount certified pursuant to NRS 362.130 as the net proceeds of any minerals extracted and royalties paid during calendar year [2023] 2022 multiplied by a rate equal to the rate as determined pursuant to NRS 362.140 minus the combined rate of tax ad valorem for the county in which the operation is located, including any rate levied by the State of Nevada, thethes certificate prepared by the Department pursuant to this section must include a penalty of 10 percent of the amount by which that portion of the tax was underpaid unless:

(a) The amount paid pursuant to paragraph (a) of subsection 1 of NRS 362.115, as that section read on January 1, [2023,] 2022, in calendar year [2023] 2022 is equal to or greater than the liability of the operation for the calendar year [2022] 2021 for the portion of the tax that is - 82nd Session (2023) – 13 – equal to the net proceeds of any minerals extracted and royalties paid during that calendar year multiplied by a rate equal to the rate as determined pursuant to NRS 362.140 minus the combined rate of tax ad valorem for the county in which the operation is located, including any rate levied by the State of Nevada;

ororlocated, including any rate levied by (b) The person files quarterly reports pursuant to subsection 2 in a timely manner and the total of all payments exceeds 90 percent of the amount certified as the net proceeds of any minerals extracted and royalties paid during the calendar year [2023] 2022 multiplied by a rate equal to - *SB124_R1* – 13 – the rate as determined pursuant to NRS 362.140 minus the combined rate of tax ad valorem for the county in which the operation is located, including any rate levied by the State of Nevada.

The amendatory provisions of sections 2.3 and 2.5 of thisthi1.actAre act:a legislative pronouncement of already existing law and are intended to clarify rather than change such existing law;

1.

Are a legislative pronouncement of already existing law and are intended to clarify rather than change such existing law;

- 82nd Session (2023) – 14 – Sec.

-~~~~~ *SB124_R1*23 –- 1482nd –Session TEXT(2023) OF REPEALED SECTION Section 77 of chapter 624, Statutes of Nevada 2019:

Sec.

77.

Notwithstanding the provisions of subsection 1 of section 3 of this act, if the ending fund balance of a county school district fund exceeds 16.6 percent of the total budgeted expenditures for the fund for the fiscal year which ends on ending fund balance for its county school district fund in the succeeding fiscal year which does not exceed the ending fund balance for the fiscal year which ends on June 30, 2020, and any amount by which the ending fund balance exceeds that amount must be transferred to the Education Stabilization Account created by section 3 of this act.

Until the ending fund balance of such a county school district fund reaches 16.6 percent or less of the total budgeted expenditures for the fund, in each subsequent fiscal year may not exceed the endingt fund fund balance for the county school district fund in the immediately preceding fiscal year, and any amount by which the ending funding balance exceeds that amount must be transferred to the Education Stabilization Account created by section 3 of this act.

H - *SB124_R1*