Nev. Admin. Code § 361.819 - Distribution of ad valorem taxes collected on property located in tax increment area and for which parcel effective incremental value is greater than zero

1. Except as otherwise provided in subsection 2, NAC 361.821 and subsections 2 and 3 of NRS 278C.250, the ad valorem taxes collected on a parcel or other taxable unit of property which is located in a tax increment area and for which the parcel effective incremental value is greater than zero must be distributed as follows:

(a) The amount of taxes determined by multiplying the parcel share of base value by the combined overlapping adjusted tax rate applicable to that property must be distributed to the entities entitled to receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 278C.250 in proportion to their respective entity-adjusted parcel tax rates;

(b) The amount of taxes determined by multiplying the combined overlapping debt and override adjusted parcel tax rate by the parcel effective incremental value applicable to that property must be distributed to the entities described in paragraphs (a), (b) and (c) of subsection 4 of NRS 278C.250 in proportion to their respective debt and override adjusted parcel tax rates;

(c) The amount of taxes determined by multiplying the tax rate specified in subsection 1 of NRS 387.195 by the parcel effective incremental value applicable to that property must be distributed as provided in paragraph (d) of subsection 4 of NRS 278C.250;

(d) After deducting the amount of taxes required to be distributed pursuant to paragraphs (a), (b) and (c), any remaining amount which does not exceed the combined total amount required for annual debt service on any bonds that have been issued by the entity that created that tax increment area and regarding which any revenues of that tax increment area have been pledged, must be distributed to that entity as provided in paragraphs (b) and (c) of subsection 1 of NRS 278C.250; and

(e) After deducting the amount of taxes required to be distributed pursuant to paragraphs (a) to (d), inclusive, any remaining amount must be distributed:

(1) Except as otherwise provided in subparagraph (2), to the taxing entities that impose a nonschool, nondebt and nonoverride adjusted parcel tax rate in proportion to their respective nonschool, nondebt and nonoverride adjusted parcel tax rates as provided in paragraph (d) of subsection 1 of NRS 278C.250; or

(2) If the taxes are collected on property located in a tax increment area created pursuant to NRS 278C.155, to the entity that created the tax increment area.

2. Paragraph (c) of subsection 1 does not apply to any taxes levied on property located in a tax increment area created pursuant to NRS 278C.155.

3. For the purposes of this section:

(a) "Combined overlapping debt and override adjusted parcel tax rate" means the sum of all the debt and override adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.

(b) "Debt and override adjusted parcel tax rate" means:

(1) For the fiscal year beginning on July 1, 2004, the debt and override tax rate of a taxing entity applicable to a parcel or other taxable unit of property for that fiscal year; and

(2) For each subsequent fiscal year, the sum obtained by adding:

(I) The debt and override adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year; and

(II) The product obtained by multiplying the debt and override parcel tax rate increase of that taxing entity applicable to that property for the current fiscal year by the entity percentage allowed parcel tax rate increase of that taxing entity applicable to that property.

(c) "Debt and override parcel tax rate increase" means the remainder obtained by subtracting the debt and override adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the debt and override tax rate of that taxing entity applicable to that property for the current fiscal year.

(d) "Debt and override tax rate" means the portion of the rate of ad valorem taxes of a taxing entity which is equal to the sum obtained by adding:

(1) The debt tax rate of that taxing entity which is levied to pay any bonded indebtedness approved by a majority of the registered voters within the area of that taxing entity voting upon the question;

(2) The portion of the rate of ad valorem taxes of that taxing entity attributable to any increase in that rate since the creation of the tax increment area which was approved by a majority of the registered voters within the area of that taxing entity voting upon the question; and

(3) The portion of the rate of ad valorem taxes of that taxing entity which is levied pursuant to NRS 387.3285 or 387.3287, and which was approved by a majority of the registered voters within the area of that taxing entity voting upon the question, as respectively described in paragraphs (a), (b) and (c) of subsection 4 of NRS 278C.250.

(e) "Nonschool, nondebt and nonoverride adjusted parcel tax rate" means the remainder obtained by subtracting from the entity-adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property:

(1) If included in that entity-adjusted parcel tax rate, the tax rate mandated by subsection 1 of NRS 387.195; and

(2) The debt and override adjusted parcel tax rate of that taxing entity applicable to that property.

(f) "Property" means property located in a tax increment area.

Notes

Nev. Admin. Code § 361.819

Added to NAC by Com. on Local Gov't Finance by R022-08, 4-17-2008, eff. 7-1-2008

NRS 361.4733