Existing law authorizes the Office of Economic Development to grant a partial abatement of property taxes, modified business taxes and sales and use taxes to a business that locates or expands in this State and meets certain qualifications for the abatement. (NRS 360.750, 360.753, 360.754, 360.890, 360.950) If the Office approves an application by a business for such an abatement or partial abatement, the business is required to enter into an agreement with the Office to allow the Department of Taxation to conduct audits of the business to determine whether the business is in compliance with the requirements for the abatement or partial abatement. (NRS 360.755) Section 1 of this bill requires an audit of a data center that is approved for a partial abatement to include a determination of the colocated businesses that have entered into contracts to use or occupy the data center and the taxable personal property that is located at the data center. Section 1 further requires such information to be kept confidential and not disclosed to any person other than an employee of the Department, the county assessor or county treasurer to whom the Department is required to provide the information or an officer or employee of such a county assessor or county treasurer. Existing law authorizes the Office 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 or county and fire protection district in which the project is located 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 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 requires the effective date of the abatement, as established by the agreement, to be not earlier than the date on which the Office approves the application. 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 require, for the limited purpose of considering and taking action on such an application, certain temporary voting members to be appointed to the Board of Economic Development by the governing bodies of the county, city 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. Finally, 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. Sections 4 and 8 of this bill require the Office to forward a copy of the certificate of eligibility which identifies the estimated amount of transferrable tax credits available to the governing body of the county or city in which the project is located. 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
BDR: 360.755, 360.889, 360.890, 360.891, 360.896, 360.945, 360.950, 360.955, 360.980, 239.010, 271B.110