Existing law authorizes the governing body of a municipality to designate a tax increment area for the purpose of creating a special account for the payment of bonds or other securities issued to defray the cost of certain undertakings, including a drainage and flood control project, an overpass project, a sewerage project, a street project, an underpass project, a water project, a rail project and a natural resources project. The designation of a tax increment area provides for the allocation of a portion of taxes levied upon taxable property in the tax increment area each year to pay the bond requirements of loans, money advanced to, or indebtedness incurred by the municipality to finance or refinance the undertaking. (Chapter 278C of NRS) Section 3 of this bill authorizes a governing body of a municipality to adopt an ordinance designating a tax increment area known as a transportation and housing reinvestment zone to promote transportation projects, transportation improvements and mixed-use, multi-family and affordable housing developments within the zone. Section 3 requires the ordinance to: (1) define the transportation projects, transportation improvements and mixed-use, multi-family or affordable housing developments that will qualify for investment in the transportation and housing reinvestment zone; and (2) establish a base year and method by which the governing body will calculate the increase in property tax revenue resulting from the transportation projects, transportation improvements or mixed-use, multi-family or affordable housing developments undertaken in the zone. Section 3 authorizes a governing body to finance a transportation project, transportation improvement or mixed-use, multi-family or affordable housing development by issuing general obligation bonds, medium-term obligations, revenue bonds or other securities. Section 2 of this bill defines the term “transportation and housing reinvestment zone.” Section 4 of this bill provides that a transportation and housing reinvestment zone: (1) must expire not more than 30 years after the date the ordinance designating the zone is adopted; (2) may include property that at the time the zone is designated is included within a redevelopment area or another tax increment area; and (3) is not subject to the statutory limitation on taxes ad valorem. Section 5 of this bill requires the property tax revenue in the transportation and housing reinvestment zone to be allocated between the taxing agencies and the tax increment account created for the zone such that only the amount which exceeds that portion of the taxes that would be produced by the property tax rate as shown upon the equalized assessment roll for the base year established in the ordinance by the governing body may be allocated to the tax increment account. Sections 6-22 of this bill make conforming changes to incorporate the provisions governing a transportation and housing reinvestment zone into the chapter and distinguish the designation of such a zone from the tax increment areas that are currently authorized under existing law.

Statutes affected:
As Introduced: 278C.120, 278C.130, 278C.150, 278C.155, 278C.157, 278C.159, 278C.170, 278C.180, 278C.190, 278C.200, 278C.210, 278C.240, 278C.260, 278C.280, 278C.290, 278C.305, 278C.310
BDR: 278C.120, 278C.130, 278C.150, 278C.155, 278C.157, 278C.159, 278C.170, 278C.180, 278C.190, 278C.200, 278C.210, 278C.240, 278C.260, 278C.280, 278C.290, 278C.305, 278C.310