Nrs: Chapter 271B - Economic Diversification

Link to law: https://www.leg.state.nv.us/NRS/NRS-271B.html
Published: 2015

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[Rev. 2/10/2015 4:48:49

PM--2014R2]

CHAPTER 271B - ECONOMIC DIVERSIFICATION

GENERAL PROVISIONS

NRS 271B.010        Definitions.

[Effective through June 30, 2036.]

NRS 271B.020        “District”

defined. [Effective through June 30, 2036.]

NRS 271B.030        “Lead

participant” defined. [Effective through June 30, 2036.]

NRS 271B.040        “Municipality”

defined. [Effective through June 30, 2036.]

NRS 271B.050        “Participant”

defined. [Effective through June 30, 2036.]

NRS 271B.060        “Qualified

project” defined. [Effective through June 30, 2036.]

ECONOMIC DIVERSIFICATION DISTRICTS

NRS 271B.070        Creation;

pledge of proceeds of certain taxes; location. [Effective through June 30,

2036.]

NRS 271B.080        Agreement

with Department of Taxation regarding distribution of pledged amounts.

[Effective through June 30, 2036.]

NRS 271B.090        Agreement

to distribute pledged amounts to lead participant of qualified project located

within district; restrictions; automatic termination of agreement. [Effective

through June 30, 2036.]

NRS 271B.100        Preparation

of annual reports and submittal to Legislature. [Effective through June 30,

2036.]

NRS 271B.110        Agreement

with owner of property interest within district to defray cost of local

governmental services. [Effective through June 30, 2036.]

NRS 271B.120        Independent

auditing of certain claims; additional restrictions on financing or

reimbursement. [Effective through June 30, 2036.]

_________

GENERAL PROVISIONS

      NRS 271B.010  Definitions. [Effective through June 30, 2036.]  As used in this chapter, unless the context

otherwise requires, the words and terms defined in NRS

271B.020 to 271B.060, inclusive, have the

meanings ascribed to them in those sections.

      (Added to NRS by 2014, 28th Special Session, 25)

      NRS 271B.020  “District” defined. [Effective through June 30, 2036.]  “District” means an economic diversification

district created pursuant to NRS 271B.070.

      (Added to NRS by 2014, 28th Special Session, 25)

      NRS 271B.030  “Lead participant” defined. [Effective through June 30, 2036.]  “Lead participant” has the meaning ascribed to

it in NRS 360.915.

      (Added to NRS by 2014, 28th Special Session, 25)

      NRS 271B.040  “Municipality” defined. [Effective through June 30, 2036.]  “Municipality” means any county or city in

this State.

      (Added to NRS by 2014, 28th Special Session, 25)

      NRS 271B.050  “Participant” defined. [Effective through June 30, 2036.]  “Participant” has the meaning ascribed to it

in NRS 360.925.

      (Added to NRS by 2014, 28th Special Session, 25)

      NRS 271B.060  “Qualified project” defined. [Effective through June 30, 2036.]  “Qualified project” has the meaning ascribed

to it in NRS 360.940.

      (Added to NRS by 2014, 28th Special Session, 25)

ECONOMIC DIVERSIFICATION DISTRICTS

      NRS 271B.070  Creation; pledge of proceeds of certain taxes; location.

[Effective through June 30, 2036.]

      1.  Except as otherwise provided in this

section, if a qualified project is located within the jurisdiction of a

municipality, the governing body of the municipality may:

      (a) Create an economic diversification district

for the purposes of carrying out this chapter by adopting an ordinance

describing the boundaries of the district, which must be the geographic

boundaries of the qualified project, and generally describing the purposes

within the district for which money pledged pursuant to this chapter may be

used; and

      (b) For the purposes of carrying out paragraph

(a), include in an ordinance adopted pursuant to that paragraph the pledge of

an amount equal to the proceeds of all sales and use taxes imposed on or owed

by each participant in the qualified project with regard to tangible personal

property purchased in the municipality for use in the district, or stored, used

or otherwise consumed in the district by the participant, during a fiscal year

other than the amount of any local sales and use taxes for which the lead

participant has received an abatement pursuant to an application approved by

the Office of Economic Development pursuant to NRS 360.950.

      2.  The governing body of a municipality

may not include in an ordinance adopted to create a district pursuant to

paragraph (a) of subsection 1 on or after September 11, 2014, the pledge of any

proceeds of the taxes imposed pursuant to NRS

374.110 and 374.190 with regard to

tangible personal property sold at retail, or stored, used or otherwise

consumed, if the governing body obtains an opinion from independent bond

counsel stating that the applicability of this provision would impair an

existing contract for the sale of bonds which were issued before September 11,

2014.

      3.  A district created pursuant to this

section by:

      (a) A city must be located entirely within the

boundaries of that city.

      (b) A county must be located entirely within the

boundaries of that county and, when the district is created, entirely outside

of the boundaries of any city.

      (Added to NRS by 2014, 28th Special Session, 26)

      NRS 271B.080  Agreement with Department of Taxation regarding distribution of

pledged amounts. [Effective through June 30, 2036.]  After

the adoption of an ordinance pursuant to NRS 271B.070,

the governing body of the municipality and the Department of Taxation shall

enter into an agreement specifying the dates and procedure for distribution to

the municipality of any money pledged pursuant to NRS

271B.070. The distributions must:

      1.  Be made not less frequently than

monthly; and

      2.  Cease at the end of the fiscal year in

which the 20th anniversary of the adoption of the ordinance creating the

district occurs.

      (Added to NRS by 2014, 28th Special Session, 26)

      NRS 271B.090  Agreement to distribute pledged amounts to lead participant of

qualified project located within district; restrictions; automatic termination

of agreement. [Effective through June 30, 2036.]

      1.  Except as otherwise provided in this

section, if the governing body of a municipality adopts an ordinance pursuant

to NRS 271B.070, the municipality may enter into

an agreement with the lead participant in the qualified project for the cost of

acquiring, improving or equipping, or any combination thereof, the qualified

project, which may contain such terms as are determined to be desirable by the

governing body of the municipality, including the payment of reasonable

interest and other financing costs for the qualified project. Any such

reimbursements may be secured by a pledge of, and be payable from, any money

pledged pursuant to NRS 271B.070 and received by

the municipality with respect to the district. If such an agreement is entered

into, the agreement must provide for the payment to the lead participant of the

money pledged pursuant to NRS 271B.070 and

received by the municipality not later than 15 days after the date on which

such money is distributed to the municipality pursuant to NRS 271B.080. An agreement entered into pursuant to

this section is not subject to the limitations of subsection 1 of NRS 354.626 and may, at the option of the

governing body, be binding on the municipality beyond the fiscal year in which

it was made, only if the agreement pertains solely to one or more participants

in the qualified project.

      2.  No agreement entered into pursuant to

this section may be secured by or payable from the general fund of the

municipality, the power of the municipality to levy ad valorem property taxes,

or any source other than any money pledged pursuant to NRS

271B.070 and received by the municipality with respect to the district, or

any combination thereof. No bond, note or other agreement issued or entered

into pursuant to this section may ever become a general obligation of the

municipality or a charge against its general credit or taxing powers, nor may

any such bond, note or other agreement become a debt of the municipality for

purposes of any limitation on indebtedness.

      3.  Any agreement entered pursuant to this

section must automatically terminate on or before the end of the fiscal year in

which the 20th anniversary of the adoption of the ordinance creating the

district occurs.

      (Added to NRS by 2014, 28th Special Session, 26)

      NRS 271B.100  Preparation of annual reports and submittal to Legislature.

[Effective through June 30, 2036.]  On

or before September 1 of each year, the governing body of a municipality that

adopts an ordinance pursuant to NRS 271B.070 shall

prepare and submit to the Director of the Legislative Counsel Bureau for

submission to the Legislature, or to the Legislative Commission when the

Legislature is not in regular session, an annual report containing:

      1.  A statement of the status of the

qualified project located or expected to be located in the district, and of any

changes in that status since the last annual report.

      2.  An assessment of the financial impact

of the district on the provision of local governmental services, including,

without limitation, services for police protection and fire protection.

      (Added to NRS by 2014, 28th Special Session, 27)

      NRS 271B.110  Agreement with owner of property interest within district to

defray cost of local governmental services. [Effective through June 30, 2036.]  The governing body of a municipality may enter

into an agreement with one or more of the owners of any interest in property

within a district, pursuant to which that owner would agree to make payments to

the municipality or to another local government that provides services in the

district, or to both, to defray, in whole or in part, the cost of local

governmental services during the term of the use of any money pledged pursuant

to NRS 271B.070. Such an agreement must specify

the amount to be paid by the owner of the property interest, which may be

stated as a specified amount per year or as an amount based upon any formula

upon which the municipality and owner agree.

      (Added to NRS by 2014, 28th Special Session, 27)

      NRS 271B.120  Independent auditing of certain claims; additional restrictions

on financing or reimbursement. [Effective through June 30, 2036.]  The governing body of a municipality:

      1.  Shall require the review of each claim

submitted pursuant to any contract or other agreement made with the governing

body to provide any financing or reimbursement pursuant to NRS 271B.090, by an independent auditor.

      2.  Shall not provide any financing or

reimbursement pursuant to NRS 271B.090 from the

proceeds of the taxes described in subsection 2 of NRS

271B.070, if the governing body obtains an opinion from independent bond

counsel stating that the applicability of this subsection would impair an

existing contract for the sale of bonds that were issued before September 11,

2014.

      (Added to NRS by 2014, 28th Special Session, 27)