Nev. Rev. Stat. § 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

NRS  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 .