Nevada § 360.825 - Acquisition of certain public utilities: Requirements for payments in lieu of taxes and franchise fees; distributions to local governments based on assessed valuation of taxable property

§ 360.825. Acquisition of certain public utilities: Requirements for payments in lieu of taxes and franchise fees; distributions to local governments based on assessed valuation of taxable property

1. Except as otherwise provided in this section, if on or after July 1, 2003, a local

government acquires from another entity a public utility that provides electric service,

natural gas service, telecommunication service or community antenna television, cable

television or other video service: (a) The local government shall make payments in lieu of and equal to all state and

local taxes and franchise fees from which the local government is exempt but for which

the public utility would be liable if the public utility was not owned by a governmental

entity; and (b) The Nevada Tax Commission shall, solely for the purpose set forth in this paragraph,

annually determine and apportion the assessed valuation of the property of the public

utility. For the purpose of calculating any allocation or apportionment of money for distribution

among local governments pursuant to a formula required by state law which is based

partially or entirely on the assessed valuation of taxable property: (1) The property of the public utility shall be deemed to constitute taxable property

to the same extent as if the public utility was not owned by a governmental entity;

and (2) To the extent that the property of the public utility is deemed to constitute

taxable property pursuant to this paragraph: (I) The assessed valuation of that property must be included in that calculation as

determined and apportioned by the Nevada Tax Commission pursuant to this paragraph;

and (II) The payments required by paragraph (a) in lieu of any taxes that would otherwise

be required on the basis of the assessed valuation of that property shall be deemed

to constitute payments of those taxes. 2. The payments in lieu of taxes and franchise fees required by subsection 1 are due

at the same time and must be collected, accounted for and distributed in the same

manner as those taxes and franchise fees would be due, collected, accounted for and

distributed if the public utility was not owned by a governmental entity, except that

no lien attaches upon any property or money of the local government by virtue of any

failure to make all or any part of those payments. The local government may contest the validity and amount of any payment in lieu

of a tax or franchise fee to the same extent as if that payment was a payment of the

tax or franchise fee itself. The payments in lieu of taxes and franchise fees must be reduced if and to the extent

that such a contest is successful. 3. The provisions of this section do not: (a) Apply to the acquisition by a local government of a public utility owned by another

governmental entity, except a public utility owned by another local government for

which any payments in lieu of state or local taxes or franchise fees was required

before its acquisition as provided in this section. (b) Require a local government to make any payments in lieu of taxes or franchise

fees to the extent that the making of those payments would cause a deficiency in the

money available to the local government to make required payments of principal of,

premium, if any, or interest on any bonds or other securities issued to finance the

acquisition of that public utility or to make required payments to any funds established

under the proceedings under which those bonds or other securities were issued. (c) Require a county to duplicate any payments in lieu of taxes required pursuant

to NRS 244A.755 .