NAC361.817. Distribution of ad valorem taxes collected on property located in redevelopment area and for which parcel effective incremental value is greater than zero.

     1. Except as otherwise provided in subsection 2 of NRS 279.676 and NAC 361.821, the ad valorem taxes collected on a parcel or other taxable unit of property which is located in a redevelopment area and for which the parcel effective incremental value is greater than zero must be distributed as follows:

     (a) The amount of taxes determined by multiplying the parcel share of base value by the combined overlapping adjusted tax rate applicable to that property must be distributed to the entities entitled to receive those taxes pursuant to paragraph (a) of subsection 1 of NRS 279.676 in proportion to their respective entity adjusted parcel tax rates;

     (b) The amount of taxes determined by multiplying the combined overlapping post-1996 adjusted parcel tax rate by the parcel effective incremental value applicable to that property must be distributed to the entities described in paragraphs (c) and (d) of subsection 1 of NRS 279.676 in proportion to their respective post-1996 adjusted parcel tax rates; and

     (c) After deducting the amount of taxes required to be distributed pursuant to paragraphs (a) and (b), any remaining amount must be distributed to the redevelopment agency as provided in paragraph (b) of subsection 1 of NRS 279.676.

     2. For the purposes of this section:

     (a) “Combined overlapping post-1996 adjusted parcel tax rate” means the sum of all the post-1996 adjusted parcel tax rates of all the taxing entities that levy an ad valorem tax on a parcel or other taxable unit of property.

     (b) “Post-1996 adjusted parcel tax rate” means:

          (1) For the fiscal year beginning on July 1, 2004, the post-1996 debt tax rate of a taxing entity applicable to a parcel or other taxable unit of property for that fiscal year; and

          (2) For each subsequent fiscal year, the sum obtained by adding:

               (I) The post-1996 adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year; and

               (II) The product obtained by multiplying the post-1996 parcel tax rate increase of that taxing entity applicable to that property for the current fiscal year by the entity percentage allowed parcel tax rate increase of that taxing entity applicable to that property.

     (c) “Post-1996 debt tax rate” means the portion of the debt tax rate of a taxing entity which is levied to pay any bonded indebtedness approved by the voters of the taxing entity on or after November 5, 1996, as described in paragraph (c) of subsection 1 of NRS 279.676. The post-1996 debt tax rate of a taxing entity for a fiscal year must be determined by multiplying the debt tax rate of that taxing entity for that fiscal year by a fraction, the numerator of which is the total amount of principal and interest coming due in that fiscal year on all the bonded indebtedness of that taxing entity which was approved by the voters of that taxing entity on or after November 5, 1996, and is to be paid with ad valorem taxes, and the denominator of which is the total amount of principal and interest coming due in that fiscal year on all the bonded indebtedness of that taxing entity for which the debt tax rate is being levied. For the purposes of this paragraph, the amount of principal and interest on the bonded indebtedness of a taxing entity coming due in a fiscal year for which the debt tax rate is being levied, and the amount of such indebtedness coming due in a fiscal year to be paid with ad valorem taxes approved by the voters of that taxing entity on or after November 5, 1996, must be determined by reference to the approved final budget of that taxing entity which was used by the Commission to certify the combined tax rate in accordance with NRS 361.4547, and must not be adjusted thereafter despite the occurrence of any event that changes the amount of bonded indebtedness of the taxing entity coming due in that fiscal year to be paid with ad valorem taxes.

     (d) “Post-1996 parcel tax rate increase” means the remainder obtained by subtracting the post-1996 adjusted parcel tax rate of a taxing entity applicable to a parcel or other taxable unit of property for the immediately preceding fiscal year from the post-1996 tax rate of that taxing entity applicable to that property for the current fiscal year.

     (e) “Post-1996 tax rate” means the portion of the rate of ad valorem taxes of a taxing entity which is equal to the sum obtained by adding the post-1996 debt tax rate of that taxing entity to the rate of ad valorem taxes of that taxing entity attributable to a new or increased tax rate which is approved by the voters of that taxing entity on or after November 5, 1996, as described in paragraph (d) of subsection 1 of NRS 279.676.

     (f) “Property” means property located in a redevelopment area.

     (Added to NAC by Com. on Local Gov’t Finance by R022-08, 4-17-2008, eff. 7-1-2008)