Nevada § 278.4983 - Residential construction tax

§ 278.4983. Residential construction tax

1. The city council of any city or the board of county commissioners of any county

which has adopted a master plan and recreation plan, as provided in this chapter,

which includes, as a part of the plan, future or present sites for neighborhood parks

may, by ordinance, impose a residential construction tax pursuant to this section. 2. If imposed, the residential construction tax must be imposed on the privilege of

constructing apartment houses and residential dwelling units and developing mobile

home lots in the respective cities and counties. The rate of the tax must not exceed: (a) With respect to the construction of apartment houses and residential dwelling

units, 1 percent of the valuation of each building permit issued or $1,000 per residential

dwelling unit, whichever is less. For the purpose of the residential construction tax, the city council of the city

or the board of county commissioners of the county shall adopt an ordinance basing

the valuation of building permits on the actual costs of residential construction

in the area. (b) With respect to the development of mobile home lots, for each mobile home lot

authorized by a lot development permit, 80 percent of the average residential construction

tax paid per residential dwelling unit in the respective city or county during the

calendar year next preceding the fiscal year in which the lot development permit is

issued. 3. The purpose of the tax is to raise revenue to enable the cities and counties to

provide neighborhood parks and facilities for parks which are required by the residents

of those apartment houses, mobile homes and residences. 4. An ordinance enacted pursuant to subsection 1 must establish the procedures for

collecting the tax, set its rate, and determine the purposes for which the tax is

to be used, subject to the restrictions and standards provided in this chapter. The ordinance must, without limiting the general powers conferred in this chapter,

also include: (a) Provisions for the creation, in accordance with the applicable master plan, of

park districts which would serve neighborhoods within the city or county. (b) A provision for collecting the tax at the time of issuance of a building permit

for the construction of any apartment houses or residential dwelling units, or a lot

development permit for the development of mobile home lots. 5. All residential construction taxes collected pursuant to the provisions of this

section and any ordinance enacted by a city council or board of county commissioners,

and all interest accrued on the money, must be placed with the city treasurer or county

treasurer in a special fund. Except as otherwise provided in subsection 6, the money in the fund may only be

used for: (a) The acquisition, improvement and expansion of neighborhood parks; or (b) The installation or improvement of facilities in existing or neighborhood parks

in the city or county, that are attributable to the new construction or development for which the money was

collected. Money in the fund must be expended within the park district from which it was collected

and must not be expended for maintenance or operational expenses. 6. If a neighborhood park has not been developed or facilities have not been installed

in an existing park in the park district created to serve the neighborhood in which

the subdivision or development is located within 3 years after the date on which 75

percent of the residential dwelling units authorized within that subdivision or development

first became occupied, all money paid by the subdivider or developer, together with

interest at the rate at which the city or county has invested the money in the fund,

must be refunded to the owners of the lots in the subdivision or development at the

time of the reversion on a pro rata basis. 7. The limitation of time established pursuant to subsection 6 is suspended for any

period, not to exceed 1 year, during which this State or the Federal Government takes

any action to protect the environment or an endangered species which prohibits, stops

or delays the development of a park or installation of facilities. 8. For the purposes of this section: (a) “ Facilities ” means turf, trees, irrigation, playground apparatus, playing fields, areas to be

used for organized amateur sports, play areas, picnic areas, horseshoe pits and other

recreational equipment or appurtenances designed to serve the natural persons, families

and small groups from the neighborhood from which the tax was collected. (b) “ Improvement of facilities ” means the expansion, modification, redesign, redevelopment or enhancement of existing

facilities or the installation of new or additional facilities. (c) “ Neighborhood park ” means a site not exceeding 25 acres, designed to serve the recreational and outdoor

needs of natural persons, families and small groups.