NRS354.5989. Limitations on fees for business licenses; exceptions.

      1.  A local government shall not increase any fee for a business license or adopt a fee for a business license issued for revenue or regulation, or both, except as permitted by this section. This prohibition does not apply to fees:

      (a) Imposed by hospitals, county airports, airport authorities, convention authorities, the Las Vegas Valley Water District or the Clark County Sanitation District;

      (b) Imposed on public utilities for the privilege of doing business pursuant to a franchise;

      (c) Imposed in compliance with the provisions of NRS 711.670 on video service providers for the privilege of doing business pursuant to chapter 711 of NRS;

      (d) For business licenses which are calculated as a fraction or percentage of the gross revenue of the business;

      (e) Imposed pursuant to NRS 244.348, 268.0973, 268.821 or 269.182; or

      (f) Regulated pursuant to NRS 354.59881 to 354.59889, inclusive.

      2.  The amount of revenue the local government derives or is allowed to derive, whichever is greater, from all fees for business licenses except:

      (a) The fees excluded by subsection 1, for the fiscal year ended on June 30, 1991; and

      (b) The fees collected for a particular type of business during the immediately preceding fiscal year ending on June 30 that a local government will not collect in the next subsequent fiscal year,

Ê is the base from which the maximum allowable revenue from such fees must be calculated for the next subsequent fiscal year. To the base must be added the sum of the amounts respectively equal to the product of the base multiplied by the percentage increase in the population of the local government added to the percentage increase in the Consumer Price Index for the year ending on December 31 next preceding the year for which the limit is being calculated. The amount so determined becomes the base for computing the allowed increase for each subsequent year.

      3.  A local government may not increase any fee for a business license which is calculated as a fraction or percentage of the gross revenue of the business if its total revenues from such fees have increased during the preceding fiscal year by more than the increase in the Consumer Price Index during that preceding calendar year. The provisions of this subsection do not apply to a fee:

      (a) Imposed in compliance with the provisions of NRS 711.670 on video service providers for the privilege of doing business pursuant to chapter 711 of NRS;

      (b) Imposed pursuant to NRS 244.348, 268.0973, 268.821 or 269.182; or

      (c) Regulated pursuant to NRS 354.59881 to 354.59889, inclusive.

      4.  A local government may submit an application to increase its revenue from fees for business licenses beyond the amount allowable pursuant to this section to the Nevada Tax Commission, which may grant the application only if it finds that the rate of a business license of the local government is substantially below that of other local governments in the State.

      5.  The provisions of this section apply to a business license regardless of the fund to which the revenue from it is assigned. An ordinance or resolution enacted by a local government in violation of the provisions of this section is void.

      6.  As used in this section, “fee for a business license” does not include a tax imposed on the revenues from the rental of transient lodging.

      (Added to NRS by 1981, 308; A 1981, 1254; 1983, 1053; 1987, 808; 1989, 2078; 1991, 34, 1439; 1993, 1179, 2325; 1995, 695, 2190; 1999, 1312; 2007, 1384)