NRS361.4727. Increase in rate of tax for payment of obligations secured by proceeds of tax: Prerequisites; effect on partial abatements.

      1.  A taxing entity may, if otherwise so authorized by law, increase the rate of an ad valorem tax imposed by or on behalf of that taxing entity for the payment of any obligations secured by the proceeds of that tax if:

      (a) The taxing entity determines that the additional tax rate is necessary for the taxing entity to satisfy those obligations; and

      (b) The additional tax rate is stated separately on the tax bill of each taxpayer, with a separate line that identifies the portion of the tax liability resulting from the additional levy.

      2.  For the purposes of subsection 1, an additional tax rate shall be deemed to be necessary to satisfy the obligations secured by the proceeds of an ad valorem tax if the rate of the ad valorem tax most recently levied for the payment of those obligations will not produce sufficient revenue, after considering the effect of the partial abatements from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724 to satisfy those obligations during the next fiscal year.

      3.  Except as otherwise provided in this subsection, any increase in the rate of an ad valorem tax authorized pursuant to this section must be included in the calculation of the partial abatements from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724. An increase in the rate of an ad valorem tax authorized pursuant to this section is exempt from each partial abatement from taxation provided pursuant to NRS 361.4722, 361.4723 and 361.4724 if the obligations for which that increase is imposed are issued:

      (a) Before July 1, 2005; or

      (b) On or after July 1, 2005, and, before the issuance of the obligations:

             (1) The governing body of the taxing entity issuing the obligations makes a finding that no increase in the rate of an ad valorem tax is anticipated to be necessary for the payment of the obligations during the term thereof; and

             (2) The debt management commission of the county in which the taxing entity is located approves that finding.

      4.  For the purposes of this section, “taxing entity” does not include the State.

      (Added to NRS by 2005, 42; A 2005, 1753)