NRS373.165. Pledge of continuing increases in taxes imposed pursuant to NRS 373.0665. [Effective January 1, 2017, if a majority of the registered voters in this State voting on the question approve the question placed on the ballot at the 2016 General Election in each county in this State asking the voters whether to authorize the State to impose, for the period beginning January 1, 2017, and ending on December 31, 2026, the taxes and the increases in those taxes authorized by NRS 373.0665.]

      1.  Except as otherwise provided in subsection 2, any continuing increases in any taxes imposed pursuant to NRS 373.0665 must not be pledged beyond June 30 of the fiscal year that is 5 full fiscal years after bonds or other obligations which are secured by the taxes imposed pursuant to NRS 373.0665 are issued or incurred, but the taxes imposed pursuant to NRS 373.0665 that are in effect on that June 30 must continue to be pledged to those bonds or other obligations until they are paid in full.

      2.  At any time after bonds are issued or other obligations incurred with a pledge of the taxes imposed pursuant to NRS 373.0665, the Legislature may, except as otherwise provided in paragraph (b) of subsection 3 of NRS 373.0665:

      (a) Continue the pledge of the increase in taxes imposed pursuant to NRS 373.0665 beyond June 30 of the fiscal year that is 5 full fiscal years after bonds or other obligations secured by the taxes imposed pursuant to NRS 373.0665 are issued or incurred, but not beyond June 30 of the fiscal year that is 5 full fiscal years after the action by the Legislature authorized by this paragraph. The process set forth in this paragraph may be repeated until all bonds or other obligations secured by the taxes imposed pursuant to NRS 373.0665 have been paid in full.

      (b) Specify a different applicable percentage, including an applicable percentage of zero, but:

             (1) The applicable percentage must not exceed 7.8 percent;

             (2) The applicable percentage must not be reduced with respect to any fiscal year preceding the fiscal year following the effective date of any action of the Legislature authorized by this subsection; and

             (3) The effective date of any action by the Legislature reducing the applicable percentage must not be sooner than the later of:

                   (I) June 30 of the fiscal year that is 5 full fiscal years after bonds or other obligations secured by the taxes imposed pursuant to NRS 373.0665 are issued or incurred; or

                   (II) June 30 of the fiscal year that is 5 full fiscal years after the date of any action by the Legislature authorized by paragraph (a).

      3.  As used in this section, “applicable percentage” has the meaning ascribed to it in paragraph (b) of subsection 5 of NRS 373.0665.

      (Added to NRS by 2013, 3545, effective January 1, 2017, if a majority of the registered voters in this State voting on the question approve the question placed on the ballot at the 2016 General Election in each county in this State asking the voters whether to authorize the State to impose, for the period beginning January 1, 2017, and ending on December 31, 2026, the taxes and the increases in those taxes authorized by NRS 373.0665)