Existing law requires the board of trustees of each school district to establish a fund for capital projects. (NRS 387.328) Existing law also creates the Fund to Assist School Districts in Financing Capital Improvements from which a grant of money may be obtained if certain emergency conditions exist within the school district. (NRS 387.333, 387.3335) Section 2 of this bill requires the board of county commissioners of a county whose population is 52,500 or more and less than 57,500 (currently Elko County), to levy a tax at a rate of not less than 1 cent and not more than 25 cents on each $100 of assessed valuation of taxable property within the county. Section 2 requires any money collected from such a tax to be deposited in the county treasury for credit to the fund for capital projects to be held and expended in the same manner as other money deposited in that fund. Section 6 of this bill authorizes the school district of a county where such a tax is imposed to pledge the proceeds of the tax, and the portion of the governmental services tax whose allocation to the school district is based on the amount of the property tax levy attributable to its debt service, to the payment of any bonds or other obligations the school district issued for capital projects. Section 8 of this bill provides that, if the board of county commissioners of a county which is required to levy such a tax does not adopt an ordinance levying the tax on or before June 30, 2024, the tax is levied at a rate of 25 cents on each $100 of assessed valuation of taxable property within the county. Section 4 of this bill creates the Fund to Assist Rural School Districts in Financing Capital Improvements and requires the money in the Fund to be used to make grants to school districts in counties whose population is less than 100,000 (currently all counties other than Clark and Washoe Counties) for certain capital projects. Section 3 of this bill authorizes the board of county commissioners of a county whose population is less than 100,000, other than a board which is required to levy a tax pursuant to section 2, to levy a tax on all taxable property in the county for a capital project for which a grant may be obtained from the Fund. Section 3 requires the board of county commissioners to determine the amount of money required for the capital project, excluding any amount that the board anticipates will be covered by a grant from the Fund, and fix a rate of taxation which will raise that amount. Section 3 requires the revenue from the tax to be expended for: (1) a capital project for which a grant was made from the Fund; or (2) if the amount collected for a fiscal year exceeds the amount of the grant for that year, in the same manner as other money in the fund for capital projects established by the school district. Section 5.5 of this bill requires the board of county commissioners of a county which levies a tax pursuant to section 2 or 3 to establish an oversight panel for school district capital improvement projects. Section 5 of this bill requires the board of trustees of a school district in a county which levies a tax pursuant to section 3 and authorizes the board of trustees of a school district in a county which levies a tax pursuant to section 2 during a fiscal year to apply to the Director of the Office of Finance in the Office of the Governor for a grant of money from the Fund. Section 5 requires the Director of the Office of Finance to make a grant of money from the Fund in an amount which is equal to: (1) the total amount of tax assessed pursuant to section 3 by the county for the capital project during the immediately preceding fiscal year; or (2) the amount of the proceeds of the tax imposed pursuant to section 2 for the immediately preceding fiscal year which the board of trustees of the school district has certified will be dedicated to the capital project. Existing law, in general, limits the total amount of property taxes which may be imposed to $3.64 on each $100 of assessed valuation. (NRS 361.453) Sections 2 and 3 exempt the rates for the property taxes in those sections from this limitation. Section 7 of this bill makes a conforming change to indicate these exemptions from the limitation. Existing law provides a partial abatement of the property taxes levied on property for which an assessed valuation has previously been established, a remainder parcel of real property, certain single-family residences and certain residential rental dwellings. (NRS 361.4722, 361.4723, 361.4724) With certain exceptions, existing law exempts new or increased property taxes from those partial abatements if a legislative act that became effective after April 6, 2005, imposed a duty on a taxing entity to levy the tax or increase the rate of the tax. (NRS 361.4726) Section 7.5 of this bill exempts any new property tax levied pursuant to section 2 or 3 from those partial tax abatements for the first fiscal year in which such a tax is imposed, but provides that such a tax is not exempt from those partial tax abatements for any fiscal year after the first fiscal year in which the tax is imposed. Section 9 of this bill makes appropriations from the State General Fund to the Fund for grants to school districts in counties whose population is less than 100,000 (currently all counties other than Clark and Washoe Counties), including grants for capital projects for schools located on qualified tribal land. Section 10 of this bill makes an appropriation to the Elko County School District for the construction of a school on the Duck Valley Indian Reservation.

Statutes affected:
As Introduced: 387.328, 361.453
Reprint 1: 387.328, 361.453, 361.4726
Reprint 2: 387.328, 361.453, 361.4726
As Enrolled: 387.328, 361.453, 361.4726
BDR: 387.328, 361.453