Nev. Rev. Stat. § 373.663 — Additional taxes in certain counties whose population is 700,000 or more: Imposition; rates and annual increases; approval by board of county commissioners; approval of certain increases by adoption of ordinance by board; approval of certain increases by voters; effective dates

NRS  373.0663    Additional taxes in certain counties whose population is 700,000
or more: Imposition; rates and annual increases; approval by board of county
commissioners; approval of certain increases by adoption of ordinance by board;
approval of certain increases by voters; effective dates.
1.  Except as otherwise provided in this
section, in a county whose population is 700,000 or more and in which a
commission has been created and a tax is imposed pursuant to NRS 373.030 :
(a) The board may by ordinance impose:
(1) An excise tax on each gallon of motor
vehicle fuel, except aviation fuel, sold in the county in an amount equal to
the product obtained by multiplying 3.6 cents per gallon by the lesser of the
applicable percentage or the adjusted average highway and street construction
inflation index for the fiscal year in which the ordinance becomes effective;
and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 3.6 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(b) The board may by ordinance impose:
(1) An excise tax on each gallon of motor
vehicle fuel, except aviation fuel, sold in the county in an amount equal to
the product obtained by multiplying 1.75 cents per gallon by the lesser of the
applicable percentage or the adjusted average highway and street construction
inflation index for the fiscal year in which the ordinance becomes effective;
and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 1.75 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(c) The board may by ordinance impose:
(1) An excise tax on each gallon of motor
vehicle fuel, except aviation fuel, sold in the county in an amount equal to
the product obtained by multiplying 1 cent per gallon by the lesser of the
applicable percentage or the adjusted average highway and street construction
inflation index for the fiscal year in which the ordinance becomes effective;
and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 1 cent per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(d) The board may by ordinance impose:
(1) An excise tax on each gallon of motor
vehicle fuel, except aviation fuel, sold in the county in an amount equal to
the product obtained by multiplying 9 cents per gallon by the lesser of the
applicable percentage or the adjusted average highway and street construction
inflation index for the fiscal year in which the ordinance becomes effective;
and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 9 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(e) The board may by ordinance impose:
(1) An excise tax on each gallon of motor
vehicle fuel, except aviation fuel, sold in the county in an amount equal to
the product obtained by multiplying 18.455 cents per gallon by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the ordinance becomes
effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 18.455 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(f) The board may by ordinance impose:
(1) An excise tax on each gallon of motor
vehicle fuel, except aviation fuel, sold in the county in an amount equal to
the product obtained by multiplying 18.4 cents per gallon by the lesser of the
applicable percentage or the adjusted average highway and street construction
inflation index for the fiscal year in which the ordinance becomes effective;
and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph (1),
on the first day of each fiscal year following the fiscal year in which that
tax becomes effective, in the amount determined by adding 18.4 cents per gallon
to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(g) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel that consists of an emulsion of water-phased hydrocarbon fuel sold
in the county in an amount equal to the product obtained by multiplying 19
cents per gallon by the lesser of the applicable percentage or the adjusted
average highway and street construction inflation index for the fiscal year in
which the ordinance becomes effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 19 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(h) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel that consists of liquefied petroleum gas sold in the county in an
amount equal to the product obtained by multiplying 22 cents per gallon by the
lesser of the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the ordinance becomes
effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 22 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(i) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel that consists of compressed natural gas sold in the county in an
amount equal to the product obtained by multiplying 21 cents per gallon by the
lesser of the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the ordinance becomes
effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 21 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(j) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel sold in the county, other than any special fuel described in
paragraph (g), (h) or (i), in an amount equal to the product obtained by
multiplying 27.75 cents per gallon by the lesser of the applicable percentage
or the adjusted average highway and street construction inflation index for the
fiscal year in which the ordinance becomes effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 27.75 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(k) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel that consists of liquefied petroleum gas sold in the county in an
amount equal to the product obtained by multiplying 18.3 cents per gallon by
the lesser of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the ordinance
becomes effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 18.3 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(l) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel that consists of compressed natural gas sold in the county in an
amount equal to the product obtained by multiplying 18.3 cents per gallon by
the lesser of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the ordinance
becomes effective; and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 18.3 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
(m) The board may by ordinance impose:
(1) An excise tax on each gallon of
special fuel sold in the county, other than any special fuel described in
paragraph (k) or (l), which is taxed by the Federal Government at a rate per
gallon or gallon equivalent of 24.4 cents or more, in an amount equal to the
product obtained by multiplying 24.4 cents per gallon by the lesser of the
applicable percentage or the adjusted average highway and street construction
inflation index for the fiscal year in which the ordinance becomes effective;
and
(2) Except as otherwise provided in
subsection 5, an annual increase in the tax imposed pursuant to subparagraph
(1), on the first day of each fiscal year following the fiscal year in which
that tax becomes effective, in the amount determined by adding 24.4 cents per
gallon to the amount of the tax imposed pursuant to subparagraph (1) during the
immediately preceding fiscal year, then multiplying that sum by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the increase becomes
effective.
2.  An ordinance authorized by this section
must be approved by a two-thirds majority of the members of the board. If the
board adopts an ordinance authorized by this section, the ordinance must impose
all of the taxes authorized by this section. Upon the adoption of such an
ordinance, and except as otherwise provided in subsection 5, no further action
by the board is necessary to effectuate the annual increases in the taxes
imposed by the ordinance.
3.  If the board adopts an ordinance
imposing the taxes authorized by this section, the ordinance:
(a) Must be adopted before October 1, 2013;
(b) Must become effective on January 1, 2014; and
(c) Is not affected by any changes in the
population of the county which occur after the adoption of the ordinance.
4.  The applicable percentage specified by
the board for the taxes imposed pursuant to this section must be the same
percentage for each tax imposed pursuant to this section. Except as otherwise
provided in subsection 5, the board may amend the applicable percentage by
ordinance from time to time, but any such amendment must not become effective
earlier than 90 days after the date of the adoption of the ordinance amending
the applicable percentage. Except as otherwise provided in subsection 4 of NRS 373.120 , the applicable percentage must
not be amended to reduce the applicable percentage at any time that bonds are
outstanding which are secured by the taxes imposed pursuant to this section.
5.  Upon the adoption of an ordinance
authorized by this section:
(a) For the period beginning on January 1, 2014,
and ending on December 31, 2026, no further action by the board is necessary to
effectuate the annual increases in the taxes imposed by the ordinance.
(b) For the period beginning on January 1, 2027,
and ending on December 31, 2036, the annual increases in the taxes authorized
by this section and imposed by the ordinance may not be effectuated unless, on
or before December 31, 2026, the board adopts an ordinance approved by a
two-thirds majority of the members of the board authorizing the effectuation of
the annual increases. If such an ordinance is not adopted by the board on or
before December 31, 2026, the board shall not impose any additional annual
increases in the taxes authorized by this section and imposed by the ordinance
after December 31, 2026, but any annual increases in such taxes imposed by the
ordinance on or before December 31, 2026, are not affected, amended, reduced or
eliminated and must be continued for any period during which bonds are
outstanding that are secured by such taxes imposed by the ordinance. If the
board adopts an ordinance pursuant to this paragraph, the ordinance is not
affected by any changes in the population of the county which occur after the
adoption of the ordinance.
(c) For the period beginning on January 1, 2037,
the annual increases in the taxes authorized by this section and imposed by the
ordinance may be effectuated if a question is placed on the ballot at the
general election on November 4, 2036, which asks the voters in the county
whether to authorize the board to impose, for the period beginning on January
1, 2037, the increases authorized by this section in the taxes imposed by the
ordinance and the question is approved by a majority of the registered voters voting
on the question. If the question is approved at the general election on
November 4, 2036, by a majority of such voters, no further action by the board
is necessary to effectuate the annual increases in the taxes authorized by this
section and imposed by the ordinance. If the question is not approved by a
majority of such voters, the board shall not impose any additional annual
increases in the taxes authorized by this section and imposed by the ordinance
after November 4, 2036, but any annual increases in such taxes imposed by the
ordinance on or before November 4, 2036, are not affected, amended, reduced or
eliminated and must be continued for any period during which bonds are
outstanding that are secured by such taxes imposed by the ordinance.
6.  As used in this section:
(a) “Adjusted average highway and street
construction inflation index” means:
(1) For the fiscal year in which an
ordinance adopted pursuant to this section becomes effective, the percentage
obtained by adding the average highway and street construction inflation index
for that fiscal year to:
(I) If the average highway and
street construction inflation index for the immediately preceding fiscal year
is greater than the applicable percentage, the remainder obtained by subtracting
the applicable percentage from the average highway and street construction
inflation index for the immediately preceding fiscal year; or
(II) If the average highway and
street construction inflation index for the immediately preceding fiscal year
is less than or equal to the applicable percentage, zero; and
(2) For each fiscal year following the
fiscal year in which the ordinance becomes effective, the percentage obtained
by adding the average highway and street construction inflation index for that
fiscal year to:
(I) If the adjusted average highway
and street construction inflation index for the immediately preceding fiscal
year is greater than the applicable percentage, the remainder obtained by
subtracting the applicable percentage from the adjusted average highway and
street construction inflation index for the immediately preceding fiscal year;
or
(II) If the adjusted average highway
and street construction inflation index for the immediately preceding fiscal
year is less than or equal to the applicable percentage, zero.
(b) “Applicable percentage” means the lesser of
7.8 percent or the percentage specified by the board in any ordinance imposing
a tax pursuant to this section.
(c) “Average highway and street construction
inflation index” means for a fiscal year the average percentage increase in the
highway and street construction inflation index for the 10 calendar years
immediately preceding the beginning of that fiscal year.
(d) “Highway and street construction inflation
index” means:
(1) The Producer Price Index for Highway
and Street Construction until that Index ceased to be published; and
(2) The Producer Price Index for Other
Nonresidential Construction thereafter or, if that Index ceases to be published
by the United States Department of Labor, the published index that most closely
measures inflation in the costs of highway and street construction, as
determined by the commission.
(e) “Special fuel” has the meaning ascribed to it
in NRS 366.060 .