AB 362 — Provides for taxes on the sale or transfer of a controlling interest in an entity which possesses an interest in real property. (BDR 32-687)

7.5.7.

ToThe verifyDepartment theshall, accuracyto ofensure anythat returnthe filedtax or,imposed if no return is filed by asubsection taxpayer,2 toof determinesection the8 amount of the tax required to be paid pursuant to this chapter,act theis Department,collected orfairly anyand personequitably authorized in writingall bycounties, thecoordinate Department, may examine the books,collection papers and recordsadministration of anythat persontax. who may be liable for the tax imposed by this chapter.

For this purpose, the Department may conduct such audits of the records of the various counties as are necessary to carry out the provisions of this chapter with respect to subsection 2 of section 8 of this act.

AnyWhen personrequested, who may be liable for the taxDepartment imposedshall byrender thisassistance chapterto andthe whocounty keepsrecorder outside of thisa Statecounty anywhose books,population papersis andless recordsthan 30,000 relating thereto shall pay to the Departmentimposition an amount equal to the allowance provided for state officers and employeescollection generally while traveling outside of the Statetax forimposed eachby daysubsection or2 fraction thereof during which an employee of thesection Department8 is engaged in examining those documents, plus any other actual expenses incurred by the employee while he or she is absent from his or her regular place of employmentthis toact. examine those documents.

- *AB362_R1* – 4 – 3.

The Department is not entitled to receive any fee for rendering any assistance pursuant to subsection 2.

6.

(Deleted by amendment.) Sec.

7.

(Deleted by amendment.) Sec.

In addition to all other taxes imposed pursuant to this section, there is hereby imposed a tax on the sale or transfer of a controlling interest in any entity which possesses, directly or indirectly, an interest in real property in this State when the value - *AB362* – 4 – of the interest in real property exceeds $100, at the rate of $1.30 for each $500 of value, or fraction thereof, of the interest in real property possessed, directly or indirectly, by the entity.

TheFor valuethe purposes of this section, an entity’sentity only possess an interest in real property is:if the entity possesses, directly or indirectly, more than 50 percent of the total ownership interest in the real property.

(a) The estimatedvalue fairof marketan valueentity’s ofinterest thein real property,property ifis the entityestimated possesses,fair directlymarket orvalue indirectly,of the entire interest in the real property.

(b) If the entity possesses, directly or indirectly, less than the entire interest in the real property, the estimated fair market value of the real property multiplied by the ownership interest in the real property possessed, directly or indirectly, by the entity, expressed as a percentage.

A taxable sale or transfer of a controlling interest mayin occuran inentity oneincludes a single transaction or in a series of related transactions.

It is presumed that transactions which occur within 624 months of each other are a series of related transactions.

A taxable sale or transfer of a controlling interest mayin bean entity includes a sale or transfer made by one seller or transferor - *AB362_R1* – 5 – or maya besale or transfer made by a group of sellers or transferors acting in concert.

It is presumed that sellers or transferors who are relatedacting toin eachconcert otherif bythe bloodsellers or marriagetransferors withinare: the fourth degree of consanguinity are acting in concert.

(a) Persons who are related to each other by blood or marriage within the fourth degree of consanguinity;

or (b) Entities which are under common control.

On or before the last day of the month immediately following the month in which the sale or transfer of a controlling interest in an entity which is subject to any of the taxes imposed by section 8 of this act occurs, the person conveyingreceiving the interest shall file with the Departmentcounty arecorder returnof oneach acounty formin prescribedwhich by the Departmententity has an interest in real property a return and remit to the Departmentcounty recorder any tax due pursuant to section 8 of this act.

(a) Identify each parcel of real property in thisthe Statecounty in which the entity possesses, directly or indirectly, an interest,interest; including, without limitation, the county in which the parcel is located;

- *AB362* – 5 – (b) State the estimated fair market value of each parcel of real property in thisthe Statecounty in which the entity possesses, directly or indirectly, an interest;

Upon(Deleted written application made before the date on which payment must be made, the Department may for good cause extend by 30amendment.) daysSec. the time within which a taxpayer is required to pay a tax imposed by this chapter.

If10.5. the tax is paid during the period of extension, no penalty or late charge may be imposed for failure to pay at the time required, but the taxpayer shall pay interest at the rate of 1 percent per month from the date on which the amount would have been due without the extension until the date of payment, unless otherwise provided in NRS 360.232 or 360.320.

If, after acceptance of the return filed pursuant to section 9 of this act, the county recorder disallows an exemption that was claimed at the time the return was filed or through audit or otherwise determines that an additional amount of tax is due, the county recorder shall promptly notify the person who filed the return of the additional amount of tax due.

If the additional amount of tax is not paid within 30 days after the date the person is notified, the county recorder shall impose a penalty of 10 percent of the additional amount due in addition to interest at a rate of 1 percent per month, or a portion thereof, of the additional amount due calculated from the date the return was filed through the date on which the additional amount due, penalty and interest are paid to the county recorder.

The Departmentcounty recorder shall deposittransmit allthe taxes,proceeds interestof andthe penaltiestax requiredimposed toby be paid pursuant to section 8 of this act inat the Controllingend Interestof Transfereach Taxquarter Account, which is hereby created in the Statefollowing Generalmanner: Fund.

The(a) StateAn Controller,amount actingequal uponto that portion of the collectionproceeds datawhich furnishedis byequivalent theto Department10 shall,cents for each quarter:$500 of value or fraction thereof in the Account for Affordable Housing created pursuant to NRS 319.500.

(a)- Transfer*AB362_R1* from– the6 Controlling– Interest(b) TransferIn Taxa Accountcounty 1whose percentpopulation ofis all700,000 taxes,or interestmore, andan penaltiesamount collectedequal withto respectthat portion of the proceeds which is equivalent to 60 cents for each county$500 duringof thevalue precedingor quarterfraction thereof must be transmitted to the appropriatecounty accounttreasurer for deposit in the Statecounty Generalschool Funddistrict’s asfund compensationfor capital projects established pursuant to theNRS State387.328, forto thebe costsheld ofand collectingexpended in the tax.same manner as other money deposited in that fund.

(b)(c) DetermineIn ana amountcounty ofwhose moneypopulation equalis toless anythan taxes,700,000, interestan andamount penaltiesequal collectedto duringthat portion of the precedingproceeds quarterwhich withis respectderived tofrom eachthe countytax pursuantimposed toby subsection 23 of section 8 of this act,act lessmust thebe amounttransmitted transferred to the State GeneralTreasurer Fundfor pursuantuse toas paragraphrequired (a),by andNRS transfer561.355. the amount determined to the State General Fund.

(c)(d) DetermineAn an amount of money equal to anythat taxes,portion interestof and penalties collected during the precedingproceeds quarterwhich withis respectequivalent to each$1.30 countyfor pursuanteach to$500 subsection 3 of sectionvalue 8or offraction thisthereof act,must lessbe thetransmitted amount transferred to the State GeneralController Fundfor pursuantdeposit to paragraph (a), and transfer the amount determined to the appropriate account in the State General FundFund. for use as required by NRS 561.355.

(d)(e) DetermineThe anremaining amountproceeds ofmust moneybe equaltransmitted to anythe taxes,State interestController andfor penaltiesdeposit collectedin during the precedingLocal quarterGovernment withTax respectDistribution toAccount eachcreated countyby pursuantNRS to360.660 subsectionfor 1credit of section 8 of this act, - *AB362* – 6 – less the amount transferred to the Staterespective Generalaccounts Fundof pursuantCarson toCity paragraphand (a),each and:county.

(1) Deposit an amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof in the Account for Affordable Housing created pursuant to NRS 319.500.

(2) For proceeds collected with respect to a county whose population is 700,000 or more, transfer an amount equal to that portion of the proceeds which is equivalent to 60 cents for each $500 of value or fraction thereof to the Intergovernmental Fund and remit the money to the county treasurer for deposit in the county school district’s fund for capital projects established pursuant to NRS 387.328, to be held and expended in the same manner as other money deposited in that fund.

(3) Deposit the remaining proceeds in the Local Government Tax Distribution Account created by NRS 360.660 for credit to the respective accounts of Carson City and each county.

From the taxes required to be transmitted to the State Controller pursuant to paragraph (d) of subsection 1, the county recorder of each county may deduct and withhold 2 percent of those taxes to reimburse the county for the cost of collecting the tax.

3.

3.4.

The expenses authorized by subsection 23 include, without limitation:

4.5.

- *AB362_R1* – 7 – (b) “Tier two affordable housing” has the meaning ascribed to it in NRS 278.01906.

- *AB362* – 7 – 2.

If(Deleted the Department determines that any tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and certify to the State Board of Examiners the amount collected in excess of the amount legally due and the person from whom it was collected or by whomamendment.) itSec. was paid.

If approved by the State Board of Examiners, the excess amount collected or paid must, after being credited against any amount then due from the person in accordance with NRS 360.236, be refunded to the person or his or her successors in interest.

Sec.

(Deleted by amendment.) Sec.

15.

(Deleted by amendment.) Sec.

16.

(Deleted by amendment.) Sec.

17.

(Deleted by amendment.) Sec.

18.

(Deleted by amendment.) Sec.

19.

(Deleted by amendment.) Sec.

20.

(Deleted by amendment.) Sec.

21.

(Deleted by amendment.) Sec.

22.

(Deleted by amendment.) Sec.

23.

Any person who willfully falsely declares the estimated fair market value of real property on a return filed pursuant to section 9 of this act is guilty of a misdemeanor and shall pay the amount of any additional tax required on account of the falsification and a penalty which is equal to 25 percent of that amount.

Sec.

24.

(Deleted by amendment.) Sec.

24.1.

The county recorder shall:

ExceptConduct asand otherwiseapply providedaudits inand NRSother 360.235procedures andfor 360.395:enforcement as uniformly as is feasible.

(a) No refund may be allowed unless a claim for it is filed with the Department within 3 years after the last day of the month following the month in which the overpayment was made.

(b) No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the Department within that period.

EachCollect claimany musttax bethat inis writingdue andpursuant mustto state the specificprovisions groundsof uponthis whichchapter in an equitable manner so that every taxpayer pays the claimfull isamount founded.imposed by law.

3.

Failure to file a claim within the time prescribed in this chapter constitutes a waiver of any demand against the State on account of overpayment.

4.

Within 30 days after rejecting any claim in whole or in part, the Department shall serve notice of its action on the claimant in the manner prescribed for service of notice of a deficiency determination.

15.24.2.

ExceptThe ascounty otherwiserecorder providedmay inaudit thisall section,records NRSrelating 360.320to orthe anycollection otherand specificcalculation statute, interest must be paid upon any overpayment of any amounttax of the taxes imposed by this chapterchapter. at the rate set forth in, and in accordance with the provisions of, NRS 360.2937.

-If *AB362*the –county 8recorder –deems 2.it necessary to conduct an audit, the audit must be completed within 3 years after the date the relevant return was filed.

If- the*AB362_R1* Department– determines8 that– any2. overpayment has been made intentionally or by reason of carelessness, the Department shall not allow any interest on the overpayment.

The county recorder may issue subpoenas to require the production of documents necessary to determine the amount of the tax due pursuant to this chapter or to determine whether a person qualifies for an exemption from taxes pursuant to this chapter.

The county recorder may have the subpoenas served, and upon application of the district attorney, to any court of competent jurisdiction, enforced in the manner provided by law for the service and enforcement of subpoenas in a civil action.

16.24.3.

NoIf injunction,an writaudit ofis mandateconducted orby otherthe legalcounty orrecorder equitablepursuant processto maythe issueprovisions inof anythis suit,chapter, actionthe ordate proceedingon inwhich anythe courtaudit againstwill thisbe Statecompleted ormust againstbe anyincluded officerin of the Statenotice to preventthe ortaxpayer enjointhat the collectionaudit underwill this chapter of a tax imposed by this chapter or any amount of tax, penalty or interest required to be collected.conducted.

NoThe suitdate oron proceedingwhich may be maintained in any court for the recoveryaudit ofwill anybe amountcompleted allegedmay tobe haveextended beenby erroneouslythe orcounty illegallyrecorder determinedif orthe collectedcounty unlessrecorder agives claimprior forwritten refundnotice orof creditthe hasextension beento filed.the taxpayer.

The notice must include an explanation of the reason or reasons that the extension is required.

3.

If, after the audit, the county recorder determines that delinquent taxes are due, interest and penalties may not be imposed for the period of the extension if the taxpayer did not request the extension or was not otherwise the cause of the extension.

17.24.4.

Any amount determined to be refundable by the county recorder after an audit must be refunded to the taxpayer.

Sec.

24.5.

WithinIf 90any daystax afterimposed a final decision upon a claim filed pursuant to this chapter is renderednot bypaid thewhen Nevadadue, Tax Commission, the claimantcounty maymay, bringwithin an4 actionyears againstafter the Departmentdate onthat the groundstax setwas forthdue, inrecord the claim in a courtcertificate of competent jurisdiction in Carson City, the countyoffice of this State where the claimant resides or maintains his or her principal place of business or a county inrecorder which anystates: relevant proceedings were conducted by the Department, for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

(a) The amount of the tax and any interest or penalties due;

(b) The name and address of the person who is liable for the amount due as they appear on the records of the county;

and (c) That the county recorder has complied with all procedures required by law for determining the amount due.

FailureFrom tothe bringtime anof action within the timerecording specifiedof constitutesthe acertificate, waiverthe ofamount anydue, demandincluding againstinterest theand Statepenalties, onconstitutes accounta ofdemand allegedfor overpayments.payment.

18.24.6.

If thea Departmentperson failsis todelinquent mailin noticethe payment of actionany ontax aimposed claimby withinthis 6chapter monthsor afterhas not paid the claimamount isof filed,a deficiency determination, the claimantcounty may considerbring thean claimaction disallowedin anda filecourt anof appealthis withState, thea Nevadacourt Taxof Commissiona withincounty 30of daysany afterother thestate lastor daya court of the 6-United monthStates period.that has competent jurisdiction to collect the delinquent or deficient amount, penalties and interest.

IfThe theaction: claimant is aggrieved by the decision of the Nevada Tax Commission rendered on appeal, the claimant may, within 90 days after the decision is rendered, bring an action against the Department on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

(a) May not be brought if the decision that the payment is delinquent or that there is a deficiency determination is on appeal to a hearing officer pursuant to section 24.17 of this act.

- *AB362_R1* – 9 – (b) Must be brought not later than 4 years after the payment became delinquent or the determination became final.

IfThe judgmentdistrict isattorney renderedshall forprosecute the plaintiff,action. the amount of the judgment must first be credited towards any tax due from the plaintiff.

The provisions of the Nevada Revised Statutes, Nevada Rules of Civil Procedure and Nevada Rules of Appellate Procedure relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceedings.

In the action, a writ of attachment may issue.

A bond or affidavit is not required before an attachment may be issued.

TheIn balancean ofaction, thea judgmentcertificate mustby bethe refundedcounty torecorder showing the plaintiff.delinquency is prima facie evidence of:

(a) The determination of the tax or the amount of the tax;

(b) The delinquency of the amounts;

and (c) The compliance by the county recorder with all the procedures required by law relating to the computation and determination of the amounts.

19.24.7.

In anyan judgment,action interestrelating must be allowed at the rate of 3 percent per annum upon the amount found to havea beentax illegallyimposed collectedpursuant from the date of payment of the amount to thethis datechapter, ofprocess allowancemust ofbe creditserved: on account of the judgment, or to a - *AB362* – 9 – date preceding the date of the refund warrant by not more than 30 days.

The1. date must be determined by the Department.

In accordance with the requirements for service of process set forth in the Nevada Rules of Civil Procedure;

or 2.

By serving the taxpayer at their place of residence in this State or their last known address.

20.24.8.

A judgmentlien maymay, notwithin be5 renderedyears inafter favorthe date of the plaintiffjudgment inor anywithin action5 broughtyears againstafter the Departmentlast toextension recoverof anythe amountlien paidin whena themanner actionprovided isin broughtthis chapter, be extended by orrecording in the nameoffice of anthe assigneecounty recorder a certified copy of the personjudgment, payingand from the amounttime orof bythat anyrecording, personthe otherlien thanmust be extended upon the personproperty whoin paidthat thecounty amount.for 5 years unless sooner released or otherwise discharged.

21.24.9.

The Departmentcounty may recover a refund or anyits partauthorized thereofrepresentative whichmay isissue erroneouslya madewarrant andfor anythe creditenforcement orof parta thereoflien whichand isfor erroneouslythe allowedcollection in an action brought in a court of competentany jurisdictiondelinquent intax Carsonthat Cityis oradministered Clarkpursuant Countyto inthis thechapter: name of the State of Nevada.

(a) Within 4 years after the person is delinquent in the payment of the tax;

or (b) Within 5 years after the last recording of a certificate copy constituting a lien for the tax.

The actionwarrant must be trieddirected into Carsona Citysheriff or Clarkconstable Countyand unlesshas the court,same witheffect theas consent of the Attorney General, orders a changewrit of placeexecution. of trial.

The Attorneywarrant Generalmust shallbe prosecutelevied the action, and the provisionssale ofmade thepursuant Nevadato Revised Statutes, the Nevadawarrant Rulesin ofthe Civilsame Proceduremanner and with the Nevadasame Ruleseffect ofas Appellatea Procedurelevy relating to service of summons, pleadings, proofs, trials and appealsa aresale applicablepursuant to thea proceedings.writ of execution.

22.24.10.

The county may pay or advance to the sheriff or constable the same fees, commissions and expenses or acting upon the warrant as are provided by law for acting upon a writ of - *AB362_R1* – 10 – execution.

The county must approve the fees for publication in a newspaper.

Approval from a court is not required for the publication.

Sec.

24.11.

IfThe anyamounts, amountincluding ininterest excessand ofpenalties, $25required hasto beenbe illegallypaid determined, either by theany Department or by the person filingpursuant the return, the Department shall certify that fact to thethis Statechapter Boardmust ofbe Examiners,satisfied andfirst theif: latter shall authorize the cancellation of the amount upon the records of the Department.

(a) The person is insolvent;

(b) The person makes a voluntary assignment of his or her assets;

(c) The estate of the person in the hands of executors, administrators or heirs, before distribution, is insufficient to pay all the debts due from the deceased;

or (d) The estate and effects of an absconding, concealed or absent person required to pay any amount by force of such revenue act are levied upon by process of law.

IfThis ansection amountdoes not exceedinggive $25 has been illegally determined, either by the Departmentcounty orrecorder bya thepreference personover: filing the return, the Department, without certifying that fact to the State Board of Examiners, shall authorize the cancellation of the amount upon the records of the Department.

(a) Any recorded lien that attached before the date when the amounts required to be paid became a lien;

or (b) Any costs of administration, funeral expenses, expenses of personal illness, family allowances or debts preferred pursuant to federal law or wages as provided in NRS 147.195.

23.24.12.

AnyA personcertificate whoby willfully falsely declares the estimatedcounty fairrecorder marketstating valuethat of real property onhas been released from a returnlien filedimposed pursuant to section 9 of this actchapter is guiltyconclusive ofevidence athat misdemeanor and shall pay the amountproperty ofhas anybeen additionalreleased. tax required on account of the falsification.

24.24.13.

TheIf remediesan ofofficer theor Stateemployee providedof forthe incounty thisrecorder chapterdetermines arethat cumulative,a andtaxpayer nois actionentitled takento byan theexemption Department or thehas Attorneybeen Generaltaxed constitutesmore anthan electionis required by thelaw, Statehe toor pursueshe anyshall remedygive towritten thenotice exclusion of anythat otherdetermination remedyto forthe whichtaxpayer. provision is made in this chapter.

The notice must:

1.

Be given within 30 days after the officer or employee makes his or her determination or, if the determination is made as a result of an audit, within 30 days after the completion of the audit;

and 2.

If appropriate, include instructions indicating the manner in which the taxpayer may petition for a refund of any overpayment.

24.14.

A taxpayer is entitled to receive on any overpayment of any tax imposed by this chapter a refund together with interest at a rate determined pursuant to NRS 17.130.

No interest is allowed on a refund of any penalties or interest on the tax that is paid by a taxpayer.

Sec.

24.15.

The county recorder shall provide a taxpayer with a response to any written request submitted by the taxpayer - *AB362_R1* – 11 – that relates to a tax imposed by this chapter within 30 days after the county treasurer receives the request.

Sec.

24.16.

1.

After reviewing a petition for a refund, the county recorder or his or her designee shall approve or disapprove the refund.

If the county recorder approves the refund, he or she shall grant the refund to the taxpayer.

2.

If the county recorder denies a refund, the petitioner may file a written notice of appeal to the county recorder within 45 days after the date the county recorder decides to deny the petition.

If notice is not received by the county recorder within 45 days after his or her decision to deny the petition, the decision of the county recorder is final.

3.

If the county recorder receives a timely notice of appeal pursuant to subsection 2, he or she shall set a date for a hearing before a hearing officer and notify the parties of the date, place and time of the hearing.

Sec.

24.17.

1.

Any person who is aggrieved by a decision of the county recorder made pursuant to this chapter may appeal the decision by filing a notice of appeal with the county recorder within 30 days after service of the decision upon that person.

2.

A hearing officer, appointed by the county, may review any decision made by the county recorder and may reverse, affirm or modify any decision of the county recorder.

A hearing officer appointed pursuant to this section must not be an employee of the county recorder’s office.

A decision of a hearing officer is a final decision for purposes of judicial review.

3.

Service of a decision made by the county recorder or a hearing officer pursuant to this chapter must be made personally or by certified mail.

If service is made by certified mail:

(a) The decision must be enclosed in an envelope that is addressed to the taxpayer at his or her address as it appears on the declaration of value or in the records of the county.

(b) It is deemed to be complete at the time the appropriately addressed envelope containing the decision is deposited with the United States Postal Service.

4.

All decisions of the county recorder made pursuant to this chapter are final unless appealed.

5.

A county recorder or local government that is a party and is aggrieved by the decision of the hearing officer may seek judicial review of the decision in the district court of that county.

Sec.

24.18.

1.

The county recorder may waive any tax, penalty and interest owed by the taxpayer pursuant to this chapter, other than the tax imposed by subsection 2 of section 8, if the taxpayer meets the criteria adopted by regulation.

If a waiver is - *AB362_R1* – 12 – granted pursuant to this subsection, the county shall prepare and maintain on file a statement that contains:

(a) The reason for the waiver;

(b) The amount of the tax, penalty and interest owed by the taxpayer;

and (c) The amount of the tax, penalty and interest waived by the county.

2.

If the county recorder or a designated hearing officer finds that the failure of a person to make a timely payment of any tax imposed is the result of circumstances beyond his or her control and occurred despite the exercise of ordinary care and without intent to avoid such payment, the county recorder may relieve the person of all or part of any interest or penalty or both.

3.

If a person proves to the satisfaction of the county recorder that the person has in good faith remitted the tax in reliance upon written advice provided by an officer or employee of the county recorder, an opinion of the district attorney or Attorney General or the written results of an audit of the taxpayer’s records conducted by the county recorder, the county recorder may not require the taxpayer to pay delinquent taxes, penalties or interest if the county recorder determines after the completion of a subsequent audit that the taxes the taxpayer remitted were deficient.

Sec.

- *AB362* – 10 – (a) Except as otherwise provided in NRS 552.095 and 555.570, fees and money collected pursuant to the provisions of chapters 552, 555 and 587 of NRS.

(e) Laboratory fees collected for the testing of the purity and germinating power of agricultural seeds, as authorized by - *AB362_R1* – 13 – NRS 561.305, and as may be necessary pursuant to the provisions of NRS 587.015 to 587.123, inclusive.

25.5.

Section 11 of this act is hereby amended to read as follows:

Sec.

11.

1.

The county recorder shall transmit the proceeds of the tax imposed by section 8 of this act at the end of each quarter in the following manner:

(a) An amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof in the Account for Affordable Housing created pursuant to NRS 319.500.

(b) In a county whose population is 700,000 or more, an amount equal to that portion of the proceeds which is equivalent to 60 cents for each $500 of value or fraction thereof must be transmitted to the county treasurer for deposit in the county school district’s fund for capital projects established pursuant to NRS 387.328, to be held and expended in the same manner as other money deposited in that fund.

(c) In a county whose population is less than 700,000, an amount equal to that portion of the proceeds which is derived from the tax imposed by subsection 3 of section 8 of this act must be transmitted to the State Treasurer for use as required by NRS 561.355.

- *AB362_R1* – 14 – (d) An amount equal to that portion of the proceeds which is equivalent to $1.30 for each $500 of value or fraction thereof must be transmitted to the State Controller for deposit in the State General Fund.

(e) The remaining proceeds must be transmitted to the State Controller for deposit in the Local Government Tax Distribution Account created by NRS 360.660 for credit to the respective accounts of Carson City and each county.

2.

From the taxes required to be transmitted to the State Controller pursuant to paragraph (d) of subsection 1, the county recorder of each county may deduct and withhold 1 percent of those taxes to reimburse the county for the cost of collecting the tax.

3.

In addition to any other authorized use of the proceeds it receives pursuant to subsection 1, a county or city may use the proceeds to pay expenses related to or incurred for the development of tier one affordable housing and tier two affordable housing.

A county or city that uses the proceeds in that manner must give priority to the development of tier one affordable housing and tier two affordable housing for persons who are elderly or persons with disabilities.

4.

The expenses authorized by subsection 3 include, without limitation:

(a) The costs to acquire land and development rights;

(b) Related predevelopment expenses;

(c) The costs to develop the land, including the payment of related rebates;

(d) Contributions toward down payments made for the purchase of affordable housing;

and (e) The creation of related trust funds.

5.

As used in this section:

(a) “Tier one affordable housing” has the meaning ascribed to it in NRS 278.01902.

(b) “Tier two affordable housing” has the meaning ascribed to it in NRS 278.01906.

Sec.

-(a) *AB362*Upon –passage 11and –approval for the purpose of adopting any regulations and performing any other preparatory administrativeyadministrative tasks that are necessary to carry out the provisions of this act;

and (b) On JulyOctober 1, 2025, for all other purposes.

H - *AB362**AB362_R1* – 15 – 3.

Section 25.5 of this act becomes effective on October 1, 2030.

H - *AB362_R1*