Nev. Rev. Stat. § 360.893 — Approval of application for partial abatement of taxes; duration and amount of partial abatement; payment of portion of abated taxes into trust fund in State Treasury; use of money in trust fund; issuance of document certifying abatement of sales and use taxes. [Effective through June 30, 2032.]

NRS  360.893    Approval of application for partial abatement of taxes; duration
and amount of partial abatement; payment of portion of abated taxes into trust
fund in State Treasury; use of money in trust fund; issuance of document
certifying abatement of sales and use taxes. [Effective through June 30, 2032.]
1.  If the Office of Economic Development
approves an application for a partial abatement of property taxes, employer
excise taxes or local sales and use taxes submitted pursuant to paragraph (b)
of subsection 1 of NRS 360.889 , the
Office shall immediately forward a certificate of eligibility for the partial
abatement of the taxes described in that paragraph to:
(a) The Department;
(b) The Nevada Tax Commission; and
(c) The county treasurer of the county in which
the qualified project will be located.
2.  Except as otherwise provided in
subsection 3, the partial abatement for the lead participant in the qualified
project must:
(a) For property taxes, be for a duration of not
more than 10 years after the effective date of the partial abatement and in an
amount that equals 75 percent of the amount of the property taxes that would
otherwise be owed by each participant for the qualified project;
(b) For employer excise taxes, be for a duration
of not more than 10 years after the effective date of the partial abatement and
in an amount that equals 75 percent of the amount of the employer excise taxes
that would otherwise be owed by each participant for employees employed by the
participant for the qualified project; and
(c) For local sales and use taxes, be for a
duration of not more than 15 years after the effective date of the partial
abatement and in an amount that equals the amount of the local sales and use
taxes that would otherwise be owed by each participant in the qualified
project.
3.  If the qualified project is a project
located on more than one site in this State, the partial abatement for the lead
participant must:
(a) For property taxes, be for a duration of not
more than 10 years after the effective date of the partial abatement and in an
amount that equals 75 percent of the amount of the property taxes that would
otherwise be owed by each participant for the qualified project;
(b) For employer excise taxes, be for a duration
of not more than 10 years after the effective date of the partial abatement and
in an amount that equals 75 percent of the amount of the employer excise taxes
that would otherwise be owed by each participant for employees employed by the
participant for the qualified project; and
(c) For local sales and use taxes, be for a
duration of not more than 15 years after the effective date of the partial
abatement and in an amount that equals that portion of the combined rate of all
the local sales and use taxes payable by each participant in the qualified
project each year which exceeds 0.6 percent. The Department of Taxation shall
issue to the lead participant a document certifying the abatement which can be
presented to retailers at the time of sale. The document must clearly state
that the purchaser is only required to pay sales and use taxes imposed in this
State at the rate of 2.6 percent. As used in this paragraph, “local sales and
use taxes” means the taxes imposed on the gross receipts of any retailer from
the sale of tangible personal property sold at retail, or stored, used or
otherwise consumed, in the political subdivision in which the new or expanded
business is located, except the taxes imposed by the Sales and Use Tax Act.
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Notwithstanding any other provision of law, if the Office of Economic
Development approves an application for a partial abatement of property taxes,
employer excise taxes or local sales and use taxes submitted pursuant to
paragraph (b) of subsection 1 of NRS 360.889
for a lead participant of a qualified project located on more than one site in
this State, the State Controller shall allocate, transfer and remit an amount
equal to all the sales and use taxes imposed in this State and collected from
the qualified project for the period of the abatement in the same manner as if
that amount consisted solely of the proceeds of the taxes imposed by NRS 374.110 and 374.190 .
4.  As a condition of approving a partial
abatement of taxes pursuant to NRS 360.880
to 360.896 , inclusive, the Executive
Director of the Office of Economic Development, if he or she determines it to
be in the best interests of the State of Nevada, may require the lead
participant to pay at such time or times as deemed appropriate, an amount of
money equal to all or a portion of the abated taxes into a trust fund in the
State Treasury to be held until all or a portion of the requirements for the
partial abatement have been met. Interest and income earned on money in the
trust fund must be credited to the trust fund. Any money remaining in the trust
fund at the end of a fiscal year does not revert to the State General Fund, and
the balance in the trust fund must be carried forward to the next fiscal year.
Money in the trust fund must not be used for any purpose other than the
purposes set forth in subsections 5 and 6.
5.  If any assessment, or installment
thereof, imposed on a qualified project pursuant to chapter
271 of NRS is delinquent, the money in the trust fund established pursuant
to subsection 4 must:
(a) First be used to repay the bonds or other
obligations of the State which are issued in connection with the qualified
project.
(b) If any money remains in the trust fund after
payments are made pursuant to paragraph (a), be used to repay bonds or other
obligations of a municipality issued in connection with the qualified project.
6.  Upon a determination by the Executive
Director of the Office of Economic Development that the requirements for the
partial abatement have been met, the money in the trust fund established
pursuant to subsection 4, including any interest and income earned on the money
during the time it was in the trust fund, must be returned to the lead
participant. If the Executive Director of the Office of Economic Development
determines that the requirements for the partial abatement have not been met:
(a) Except as otherwise provided in this
subsection:
(1) The money in the trust fund
established pursuant to subsection 4, after any payment made pursuant to
subsection 5, must be transferred to the entity that would have received the
money if the Office had not approved the partial abatement, as determined by
the Department; and
(2) Any amount of money in the trust fund
used to repay bonds or other obligations of the State or municipality pursuant
to subsection 5 must proportionally reduce the amount transferred to an entity
pursuant to subparagraph (1).
(b) The interest and income earned on the money
in the trust fund during the time it was in the trust fund must be distributed
to an entity receiving a distribution pursuant to paragraph (a) in the
proportion that the money distributed to the entity pursuant to that paragraph
bears to the total money distributed pursuant to that paragraph.
7.  If the Office approves a partial
abatement of local sales and use taxes, the Office shall issue to the lead
participant in the qualified project a document certifying the partial
abatement which can be presented to retailers at the time of sale. The document
must clearly state the rate of sales and use taxes which the purchaser is
required to pay in the county in which the abatement is effective.