NRS350.0135. Proposal resulting in increase of rate of property taxes: Determination and notification of affected governmental entities by municipality; approval or objection by affected governmental entity; notification of commission of objection; resolution of conflict by commission; establishment of related methods and procedures by commission; exception.

      1.  Before a municipality may submit to the commission a proposal that will result in an increase in the rate of property taxes, the municipality shall:

      (a) Determine whether there is an affected governmental entity; and

      (b) If there is an affected governmental entity, provide written notification to the affected governmental entity.

      2.  A notification sent pursuant to subsection 1 must include, without limitation, a description of:

      (a) The proposal and the estimated amount the proposal would increase property taxes; and

      (b) The potential effect of the increase on the entity.

      3.  The governing body of an entity that receives a notification pursuant to subsection 1 shall, by resolution, approve or object to the proposal described in the notice. If the entity approves the proposal, the entity must state in the resolution approving the proposal that the entity has no intent to levy property taxes which, if combined with the increase proposed in the proposal, would cause the combined property tax rate for the area containing the municipality and the entity to exceed the limitation on property taxes set forth in NRS 361.453.

      4.  If an entity objects to a proposal pursuant to subsection 3, the municipality which provided notice pursuant to subsection 1 shall provide the commission with notification in writing of the objection and the entity’s reasons for objecting when submitting the proposal to the commission pursuant to NRS 350.014.

      5.  If the commission receives a proposal to which an objection has been raised pursuant to subsection 3, the commission shall resolve any conflict between the municipality and the entity over the use of the remaining allowable increase in property taxes and determine whether to approve, in whole or in part, or reject the increase in property taxes set forth in the proposal.

      6.  In resolving a conflict pursuant to subsection 5, the commission may impose:

      (a) A condition or provision described in subsection 2 of NRS 350.0145; and

      (b) A condition that:

             (1) The amount of the general obligation debt proposed to be imposed must be reduced;

             (2) The rate of the special elective tax must be reduced; or

             (3) Both subparagraphs (1) and (2).

      7.  The commission may establish:

      (a) A method for resolving conflicts over the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811;

      (b) A method for determining the highest and best use of the unlevied amount of property taxes that may be levied pursuant to NRS 354.59811, which must be based upon a comparison of the public needs to be served by the proceeds from the proposed debt or tax levy in a proposal submitted pursuant to NRS 350.014 and the public needs to be served by other possible debts or tax levies by other municipalities whose tax-levying powers overlap; and

      (c) A procedure for allowing a municipality that does not levy the maximum amount of property taxes which it may levy pursuant to NRS 354.59811 to reserve a percentage of the remaining allowable increase of property taxes for use in the future and a procedure for determining whether to grant such a reservation. If established, such procedures must:

             (1) Allow all municipalities whose tax-levying powers may be affected by such a reservation to enter objections to such a reservation; and

             (2) Provide a method for resolving conflicts over the remaining allowable increase of property taxes between municipalities whose tax-levying powers overlap, which must be based upon the highest and best use for the remaining allowable increase of property taxes.

      8.  This section does not apply to any proposal that is not expected to result in an increase in the rate of property taxes in any jurisdiction.

      9.  As used in this section:

      (a) “Affected governmental entity” means a governmental entity:

             (1) That has territory which overlaps the territory of the municipality proposing the special elective tax or general obligation debt;

             (2) That is currently not levying the maximum rate of property taxes which it may levy pursuant to NRS 354.59811; and

             (3) For which the total combined tax rate levied on the overlapping territory would exceed the limit set forth in NRS 361.453 if the current combined tax rate levied on the overlapping territory is added to:

                   (I) The tax rate projected for the special elective tax or general obligation debt being proposed by the municipality; and

                   (II) The unlevied amount of property taxes that currently may be levied by the governmental entity pursuant to NRS 354.59811.

      (b) “Remaining allowable increase of property taxes” means the difference between the tax rate allowed for a municipality in the current fiscal year pursuant to NRS 354.59811 minus the tax rate levied by the municipality in the current fiscal year.

      (Added to NRS by 2001, 878)