SB 452 — Revises provisions governing the allocation of the proceeds of the basic governmental services tax. (BDR 43-1204)

EXEMPTSenate S.B.Bill No.

452452–Committee SENATEon BILLNFinance OCHAPTER.......... .

452–COMMITTEE ON F INANCE M AY 2, 2023 ____________ Referred to Committee on Finance SUMMARY—Revises provisions governing the allocation of the proceeds of the basic governmental services tax.

(BDR 43-1204) 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.

Existing law imposes a basic tax for governmental services for the privilege of operating any vehicle upon the public highways of this State, which is collected by the Department of Motor Vehicles.

(NRS 371.030, 482.260) Under existing law, the basic governmental services tax is 4 cents on each $1 of the valuation of the vehicle, and the valuation of the vehicle is 35 percent of the manufacturer’s suggested retail price in Nevada with a reduction based on the age of the vehicle 371.060)using Senatea Billdepreciation No.schedule set forth in existing law.

(NRS 371.040, 371.050, 371.060) Senate Bill No.

Existing law allocates the revenue from this portion of the governmental services tax, with 25 percent of the proceeds allocated to the State General Fund and 7575es percent of the proceeds allocated to the State Highway Fund.

(NRS 482.182) Section 2 of this bill removes the allocation of these proceeds to the General Fund and, instead, requires the Department to direct that the entire amount of theseFundthese proceeds be transferred to the State Highway Fund.

-EXPLANATION *SB452* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

3.- 82nd Session (2023) – 2 – received or collected for each county must be made to the State Education Fund or the fund for capital projects or debt service fund of a county school district, as applicable, before any distribution is made to a local government, special district or enterprise district.

TheFor distributionthe purpose of calculating the amount of the basic governmental services tax receivedto or collected for each county must be madedistributed to the State Education Fund or the fund for capital projects or debt service fund of a county school district, as applicable, beforethe anytaxes distributionlevied isby madeeach to a local government, special district orand enterprise district.district are the product of its certified valuation, determined pursuant to subsection 2 of NRS 361.405, and its tax rate, established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980, except that the tax rate for school districts, including the rate attributable to a district’s debt service, is the rate established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1978, but if the rate attributable to a district’s debt service in any fiscal year is greater than its rate for the fiscal determine the amount attributable to debt service.st be used to 4.

For the purpose of calculating the amount of the basic governmental services tax to be distributed to the State Education Fund or the fund for capital projects or debt service fund of a county school district, as applicable, the taxes levied by each local government, special district and enterprise district are the product of its certified valuation, determined pursuant to subsection 2 of NRS 361.405, and its tax rate, established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980, except that the tax rate for school districts, including the rate attributable to a district’s debt service, is beginning on July 1, 1978, but if the rate attributable to a district’s debt service in any fiscal year is greater than its rate for the fiscal year beginning on July 1, 1978, the higher rate must be used to determine the amount attributable to debt service.

4.

An amount equal to any basic governmental services tax distributed to a redevelopment agency in the Fiscal Year 1987-1988 - *SB452* – 3 – must continue to be distributed to that agency as long as it exists but must not be increased.

7.

As used in this section:

- 82nd Session (2023) – 3 – Carson City.....1.07 percent Lincoln............3.12 percent Churchill.........5.21 percent Lyon................2.90 percent Clark.............22.54 percent Mineral............2.40 percent Douglas...........2.52 percent Nye .................4.09 percent Elko ..............13.31 percentPershing..........7.00 percent Esmeralda.......2.52 percentpercentcent Storey..............0.19 percent Eureka.............3.10 percent Washoe.........12.24 percent Humboldt........8.25 percent White Pine......5.66 percent Lander.............3.88 percent (2) For all other basic and supplemental governmental services tax received or collected by the Department, the amount attributable to each county based on the county of registration of the vehicle for which the tax was paid.

(b)] State Highway Fund from the proceeds of the basic governmental services tax collected by the Department and its - *SB452* – 4 – agents during the preceding month, [75 percent of] the amounts indicated pursuant to this section.

(5)- Five82nd years,Session is(2023) a– sum4 equal– to 18 percent of those proceeds;

Five years, is a sum equal to 18 percent of those (6) Six years, is a sum equal to 22 percent of those proceeds;

(5) Five years, is a sum equal to 26 percent of those proceeds;

Five years, is a sum equal to 26 percent of those (6) Six years, is a sum equal to 30 percent of those proceeds;

The amount required to be transferred pursuant to subsection 1 from the proceeds of the basic governmental services tax imposed on vehicles to which the minimum amount of that tax applies - *SB452* – 5 – pursuant to paragraph (b) of subsection 3 of NRS 371.060 is a sum equal to 63 percent of those proceeds.

Sec.706.211 NAll money collected by the Department under the:

3.provisions of NRS 706.011 to 706.861, inclusive, must be deposited in the State Treasury for credit to the Motor Vehicle Fund.

NRS 706.211 is hereby amended to read as follows:

706.211 All money collected by the Department under the in the State Treasury for credit to the Motor Vehicle Fund.

- 82nd Session (2023) – 5 – Sec.

Notwithstanding the provisions of NRS 218D.430 and 218D.435, a committee may vote inon this act before the expiration of the period prescribed for the return of a fiscal note in NRS 218D.475.

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