Existing law authorizes the Office of Economic Development to approve applications for an abatement or partial abatement of certain taxes and the issuance of transferable tax credits submitted by the lead participant in a qualified project that will make a capital investment in this State of at least $1 billion. (NRS 360.880-360.980) Additionally, existing law authorizes the governing body of a county or city in which a qualified project is or is expected to be located to: (1) create an economic diversification district that includes within its boundaries the qualified project; and (2) pledge for certain purposes the proceeds of all sales and use taxes imposed in the county or city on each participant in the qualified project, other than any sales and use taxes for which an abatement is received. (Chapter 271B of NRS) Sections 2 and 6 of this bill require, as a condition of eligibility for the transferable tax credits or the abatement or partial abatement of taxes for a project that is or will be located in an economic diversification district, the lead participant to enter into an agreement with the governing body of the city, county or fire protection district in which the project is located, if the governing body so requires, to require the lead participant to make payments to defray the cost of local governmental services and infrastructure to service the project. Sections 2 and 6: (1) provide that the city or county in which a project is located is the lead negotiator for all such agreements; and (2) authorize a city, county or fire protection district that is not the lead negotiator to enter into an interlocal agreement with the lead negotiator. Sections 2, 3, 6 and 7 make records, files and communications exchanged between the lead participant and a county, city or fire protection district for the purpose of entering into certain agreements confidential and prohibit the disclosure of such records, files and communications except with the consent of the lead participant. Section 10 of this bill provides that these records, files and communications are not public records. Section 11 of this bill makes a conforming change to reflect that the governing body of a county or city is authorized to enter into agreements with owners of any interest in property for the payment of amounts to defray the costs of local government services, in addition to the agreement which the governing body of the county or city is required to enter into with the lead participant pursuant to sections 2 and 6. Existing law prohibits the Office from approving an application for a partial abatement for a qualified project whose participants intend to make a capital investment in this State of at least $1 billion unless the lead participant of the project has entered into an agreement with the Office establishing certain terms for the abatement, including the date on which the abatement becomes effective, which must not be earlier than the date on which the Office receives the application and not later than 1 year after the date on which the Office approves the application. (NRS 360.889) Section 2 limits the requirement to state the effective date of the partial abatement in the agreement to partial abatements of property taxes and requires the effective date of such an abatement, as established by the agreement, to be not earlier than July 1 of the fiscal year in which the Office executes the agreement. Section 6 adds a similar requirement regarding the effective date of an abatement to applications for an abatement for a qualified project whose participants intend to make a capital investment in this State of at least $3.5 billion. Sections 3 and 7 of this bill require the Office, within 15 days after receipt of an application for transferable tax credits or an abatement or partial abatement of taxes for a project with a capital investment of at least $1 billion in this State, to send a notification containing certain information to each city, county and fire protection district in which the project will be located. Sections 3 and 7 authorize the disclosure of certain confidential information in an application to an officer or employee of a county, city or fire protection district who is subject to an agreement prohibiting further disclosure of the information. Sections 3 and 7 require the Office to receive a letter of acknowledgment of an application from certain local governments before considering the application, unless such a letter is not received within 30 days of a request for the letter. Finally, sections 3 and 7 require the governing body of the county, city or fire protection district to state in the letter of acknowledgment whether the governing body will require the lead participant to enter into an agreement to defray the cost of local government services and infrastructure. Existing law authorizes the governing body of a county or city to grant an abatement of all or part of any permitting fee or licensing fee which the local government is authorized to impose, for the purpose of encouraging local economic development. (NRS 360.896, 360.980) Sections 5 and 9 of this bill similarly authorize a fire protection district to grant an abatement of any permitting fee or licensing fee which the fire protection district is authorized to impose.

Statutes affected:
As Introduced: 360.755, 360.889, 360.890, 360.891, 360.896, 360.945, 360.950, 360.955, 360.980, 239.010, 271B.110
Reprint 1: 360.889, 360.890, 360.896, 360.945, 360.950, 360.980, 239.010, 271B.110
Reprint 2: 360.889, 360.890, 360.896, 360.945, 360.950, 360.980, 239.010, 271B.110
As Enrolled: 360.889, 360.890, 360.896, 360.945, 360.950, 360.980, 239.010, 271B.110
BDR: 360.755, 360.889, 360.890, 360.891, 360.896, 360.945, 360.950, 360.955, 360.980, 239.010, 271B.110