Nevada § 278C.250 - Allocation, division and disposition of money from taxes; limitation on revenue; repayment of bond or other indebtedness

§ 278C.250. Allocation, division and disposition of money from taxes; limitation on revenue; repayment of bond or other indebtedness

1. After the effective date of the ordinance adopted pursuant to NRS 278C.220 : (a) Any taxes levied upon taxable property in the tax increment area each year by

or for the benefit of the State, the municipality and any public body must be divided

as follows: (1) That portion of the taxes that would be produced by the rate upon which the tax

is levied each year by or for each of those taxing agencies upon the total sum of

the assessed value of the taxable property in the tax increment area as shown upon

the last equalized assessment roll used in connection with the taxation of the property

by the taxing agency, must be allocated to and when collected must be paid into the

funds of the respective taxing agencies as taxes by or for the taxing agencies on

all other property are paid. (2) Except as otherwise provided in this section, the portion of the taxes levied

each year in excess of the amount determined pursuant to subparagraph (1) must be

allocated to, and when collected must be paid into, the tax increment account pertaining

to the undertaking to pay the bond requirements of loans, money advanced to, or indebtedness,

whether funded, refunded, assumed or otherwise, incurred by the municipality to finance

or refinance, in whole or in part, the undertaking. Unless the total assessed valuation of the taxable property in the tax increment

area exceeds the total assessed value of the taxable property in the area as shown

by the last equalized assessment roll referred to in this subsection, all of the taxes

levied and collected upon the taxable property in the area must be paid into the funds

of the respective taxing agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been

paid, all money thereafter received from taxes upon the taxable property in the tax

increment area must be paid into the funds of the respective taxing agencies as taxes

on all other property are paid. (b) If the undertaking is a natural resources project or a rail project for which

the municipality has received approval from the Interim Finance Committee pursuant

to NRS 278C.157 , any taxes levied upon the sale or use of tangible personal property in the tax increment

area each year by or for the benefit of the State, the municipality and any public

body must be divided as follows: (1) That portion of the taxes that would be produced by the rate upon which the tax

is levied each year by or for each of those taxing agencies upon the total sum of

the sales and use of tangible personal property in the tax increment area in the fiscal

year immediately preceding the effective date of the ordinance adopted pursuant to NRS 278C.220 , must be allocated to and when collected must be paid into the funds of the respective

taxing agencies as taxes by or for the taxing agencies on all other sales of tangible

personal property are paid. (2) Except as otherwise provided in this section, of the portion of the taxes levied

each year in excess of the amount determined pursuant to subparagraph (1), 50 percent

of that amount must be allocated to, and when collected must be paid into the tax

increment account pertaining to the undertaking to pay the bond requirements of loans,

money advanced to, or indebtedness, whether funded, refunded, assumed or otherwise,

incurred by the municipality to finance or refinance, in whole or in part, the undertaking. The remaining 50 percent of that amount must be allocated to and when collected

must be paid into the funds of the respective taxing agencies as taxes by or for the

taxing agencies on all other sales of tangible personal property are paid. Unless the total amount of the taxes imposed on the sale and use of tangible personal

property in the tax increment area exceeds the total amount of the taxes imposed on

the sale and use of tangible personal property in the tax increment area in the fiscal

year immediately preceding the effective date of the ordinance adopted pursuant to NRS 278C.220 , all of the taxes levied and collected upon the sale or use of tangible personal

property in the tax increment area must be paid into the funds of the respective taxing

agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been

paid, all money thereafter received from taxes upon the sale or use of tangible personal

property in the tax increment area must be paid into the funds of the respective taxing

agencies as taxes on all other taxes on the sale or use of tangible personal property

are paid. (c) If the undertaking is a natural resources project or a rail project for which

the municipality has received approval from the Interim Finance Committee pursuant

to NRS 278C.157 , any taxes imposed pursuant to NRS 363A.130 or 363B.110 on employers located in the tax increment area must be divided as follows: (1) That portion of the taxes that would be produced by the rate upon which the tax

is imposed each year by the Department of Taxation in the fiscal year immediately

preceding the effective date of the ordinance adopted pursuant to NRS 278C.220 , must be allocated to and when collected must be paid to the Department of Taxation

as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid. (2) Except as otherwise provided in this section, of the portion of the taxes imposed

each year in excess of the amount determined pursuant to subparagraph (1), 50 percent

of that amount must be allocated to, and when collected must be paid into, the tax

increment account pertaining to the undertaking to pay the bond requirements of loans,

money advanced to, or indebtedness, whether funded, refunded, assumed or otherwise,

incurred by the municipality to finance or refinance, in whole or in part, the undertaking. The remaining 50 percent of that amount must be allocated to and when collected

must be paid to the Department of Taxation as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid. Unless the total amount of the taxes imposed pursuant to NRS 363A.130 and 363B.110 on employers located in the tax increment area exceeds the total amount of the taxes

imposed on employers located in the tax increment area in the fiscal year immediately

preceding the effective date of the ordinance adopted pursuant to NRS 278C.220 , all of the taxes imposed on employers located in the tax increment area must be

paid to the Department of Taxation. When the loans, advances and indebtedness, if any, and interest thereon, have been

paid, all money thereafter received from taxes imposed pursuant to NRS 363A.130 or 363B.110 on employers located in the tax increment area must be paid to the Department of

Taxation as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid. 2. Except as otherwise provided in subsection 2 of NRS 360.991 , the amount of the taxes levied each year which are paid into the tax increment account

pursuant to subparagraph (2) of paragraph (a) of subsection 1, subparagraph (2) of

paragraph (b) of subsection 1 and subparagraph (2) of paragraph (c) of subsection

1 must be limited by the governing body to an amount not to exceed the combined total

amount required for annual debt service of or any outstanding advances of money or

unfunded costs associated with the project or projects acquired, improved or equipped,

or any combination thereof, as part of the undertaking. 3. Any revenues generated within the tax increment area in excess of the amount referenced

in subsection 2, if any, will be paid into the funds of the respective taxing agencies

in the same proportion as their base amount was distributed. 4. Except as otherwise provided in this subsection, in any fiscal year, the total

revenue paid to a tax increment area pursuant to subparagraph (2) of paragraph (a)

of subsection 1 in combination with the total revenue paid to any other tax increment

areas and any redevelopment agencies of a municipality, other than any revenues paid

to any other tax increment areas pursuant to subparagraph (2) of paragraph (b) of

subsection 1 and subparagraph (2) of paragraph (c) of subsection 1, must not exceed: (a) In a county whose population is 100,000 or more or a city whose population is

150,000 or more, an amount equal to the combined tax rates of the taxing agencies

for that fiscal year multiplied by 10 percent of the total assessed valuation of the

municipality. (b) In a county whose population is less than 100,000 or a city whose population is

less than 150,000, an amount equal to the combined tax rates of the taxing agencies

for that fiscal year multiplied by 15 percent of the total assessed valuation of the

municipality. Notwithstanding the provisions of this subsection, if a county has a population of

less than 100,000 or if a city has a population of less than 150,000 at the time the

municipality issues securities for a tax increment area pursuant to NRS 278C.280 , the revenue limitation set forth in paragraph (b) must remain the revenue limitation

for the tax increment area until such time as the securities issued for that tax increment

area pursuant to NRS 278C.280 have been paid in full, including any securities issued to refund those securities,

regardless of whether the population of the municipality reaches or exceeds 100,000

after the issuance of those securities. 5. If the revenue paid to a tax increment area must be limited pursuant to paragraph

(a) or (b) of subsection 4 and the municipality has more than one redevelopment agency

or tax increment area, or one of each, the municipality shall determine the allocation

to each agency and area. Any revenue that would be allocated to a tax increment area but for the provisions

of this section must be paid into the funds of the respective taxing agencies. 6. The portion of the taxes levied each year in excess of the amount determined pursuant

to subparagraph (1) of paragraph (a) of subsection 1 which is attributable to any

tax rate levied by a taxing agency: (a) To produce revenue in an amount sufficient to make annual repayments of the principal

of, and the interest on, any bonded indebtedness that was approved by a majority of

the registered voters within the area of the taxing agency voting upon the question,

must be allocated to, and when collected must be paid into, the debt service fund

of that taxing agency. (b) In excess of any tax rate of that taxing agency applicable to the last taxation

of the property before the effective date of the ordinance, if that additional rate

was approved by a majority of the registered voters within the area of the taxing

agency voting upon the question, must be allocated to, and when collected must be

paid into, the appropriate fund of that taxing agency. (c) Pursuant to NRS 387.3285 or 387.3287 , if that rate was approved by a majority of the registered voters within the area

of the taxing agency voting upon the question, must be allocated to, and when collected

must be paid into, the appropriate fund of that taxing agency. (d) For the support of the public schools within a county school district pursuant

to NRS 387.195 , must be allocated to, and when collected must be paid into, the State Education

Fund. 7. The provisions of paragraph (a) of subsection 6 include, without limitation, a

tax rate approved for bonds of a county school district issued pursuant to NRS 350.020 , including, without limitation, amounts necessary for a reserve account in the debt

service fund. 8. As used in this section, the term “ last equalized assessment roll ” means the assessment roll in existence on the 15th day of March immediately preceding

the effective date of the ordinance.