Existing law imposes a tax upon the net proceeds of minerals extracted in this State and mineral royalties. (NRS 362.100-362.240) A portion of the revenue generated by the tax upon the net proceeds of minerals and mineral royalties is appropriated to the county in which the mining operation is located for apportionment by the county treasurer to each local government or other local taxing entity in that county in an amount equal to the property tax rate for local purposes in that jurisdiction multiplied by the net proceeds extracted from and royalties paid by extractive operations in that jurisdiction, plus a pro rata share of any penalties and interest collected by the Department of Taxation for any late payment of the tax. (NRS 362.170) Existing law requires the portion of the revenue apportioned by the county treasurer to a county school district for any purpose other than capital projects or debt service for the county school district to be paid by the county treasurer to the State Treasurer for deposit in the State Education Fund. The county treasurer is authorized to retain a commission of 5 percent from this amount. (NRS 362.170) Section 1 of this bill removes the appropriation to the county, and apportionment by the county treasurer of, the portion of the revenue that would otherwise be apportioned to a county school district for any purpose other than capital projects or debt service for the county school district. Instead, section 1 requires the Department to deposit this revenue directly in the State Education Fund, which also has the effect of removing the retention by the county treasurer of a commission of 5 percent of the revenue and requiring the entire amount to be deposited in the State Education Fund. Section 2 of this bill makes a conforming change to reflect that this revenue will be transferred to the State Education Fund by the Department. Existing law requires, with certain exceptions, that each county school district annually transfer from the county school district fund to the Education Stabilization Account in the State Education Fund any amount by which the budgeted ending fund balance of the county school district fund exceeds 16.6 percent of the total budgeted expenditures for the fund. (NRS 387.1213) Section 2.3 of this bill revises this requirement to be based on the actual, rather than budgeted, ending fund balance of a county school district fund and the total actual, rather than budgeted, expenditures for the fund. Section 2.3 also clarifies that certain proceeds of the tax upon the net proceeds of minerals and mineral royalties that are received by a county school district are excluded from the actual ending fund balance of a county school district fund for the purpose of the transfer to the Education Stabilization Account required by existing law and, thus, are not subject to such a transfer. Section 1.5 of this bill makes a conforming change relating to the use of actual, rather than budgeted, ending fund balances and expenditures. If a county school district maintained an ending fund balance in its county school district fund which exceeded 16.6 percent of the total budgeted expenditures for the fund on June 30, 2020, existing law allows the county school district to maintain an ending fund balance which does not exceed that higher amount, rather than 16.6 percent, before being required to transfer money to the Education Stabilization Account. (Section 77 of chapter 624, Statutes of Nevada 2019, at page 4252) Section 5.5 of this bill repeals that provision, and section 2.3 instead provides that any money which was deposited in a county school district fund on or before June 30, 2020, is excluded from the actual ending fund balance of a county school district fund for the purpose of the transfer to the Education Stabilization Account required by existing law and, thus, is not subject to such a transfer. Existing law provides that the portion of the revenue generated by the tax upon the net proceeds of minerals and mineral royalties which is appropriated to a county school district pursuant to the Pupil-Centered Funding Plan is deemed to be the first money appropriated to the county school district pursuant to the Plan. (NRS 387.1214) Section 2.5 of this bill clarifies that such money is also deemed to be the first money spent by a county school district from the county school district fund each fiscal year. Section 4.5 of this bill provides that sections 2.3 and 2.5 do not apply to or affect the obligation of any entity to repay any amount of money to which the entity was not entitled. Existing law requires a person extracting any mineral in this State to file a statement which shows the estimated gross yield and estimated net proceeds from each operation for the current calendar year and an estimate of all royalties that will be paid during the current calendar year. (NRS 362.115) Existing law temporarily requires advance payment of the portion of the tax that is distributed to the State General Fund, based upon the estimated net proceeds and royalties for the current calendar year. (NRS 362.115) This advance payment requirement expires on June 30, 2023. (Chapter 4, Statutes of Nevada 2020, 31st Special Session, at page 32) Section 4 of this bill advances the date on which the advance payment requirement expires to June 30, 2022. Section 3 of this bill revises provisions governing certain duties of the Department relating to the expiration of the advance payment requirement to provide for the carrying out of those duties in Fiscal Year 2022-2023, rather than Fiscal Year 2023-2024.

Statutes affected:
As Introduced: 362.170, 387.1212
Reprint 1: 362.170, 354.6241, 387.1212, 387.1213, 387.1214
Reprint 2: 362.170, 354.6241, 387.1212, 387.1213, 387.1214
Reprint 3: 362.170, 354.6241, 387.1212, 387.1213, 387.1214
As Enrolled: 362.170, 354.6241, 387.1212, 387.1213, 387.1214
BDR: 362.170, 387.1212