SB259 - Revises provisions relating to taxation. (BDR 32-703)

S.B. 259 - *SB259* SENATE BILL NO. 259–SENATOR NEAL FEBRUARY 27, 2025 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises provisions relating to taxation. (BDR 32-703) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to taxation; revising the permissible uses of proceeds of a certain sales and use tax for the benefit of counties and school districts; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes the board of county commissioners of each county to 1 enact an ordinance imposing, by a two-thirds vote of the members of the board or 2 by a majority vote of the people at a primary, general or special election, a sales 3 and use tax at the rate of one-quarter of 1 percent of the gross receipts of retailers. 4 (NRS 377D.100) Existing law authorizes the proceeds of the tax to be used to pay 5 the cost of: (1) one or more programs of early childhood education; (2) one or more 6 programs of adult education; (3) one or more programs to reduce truancy; (4) one 7 or more programs to reduce homelessness; (5) certain matters relating to affordable 8 housing; (6) incentives for the recruitment or retention of licensed teachers for 9 high-vacancy schools; and (7) certain programs of workforce training. (NRS 10 377D.130) Section 1 of this bill provides instead that the proceeds of the tax must 11 be used to pay for the cost of: (1) one or more programs to reduce homelessness; 12 and (2) establishing, operating or maintaining a public transit system. 13 Section 2 of this bill prohibits the use of money received from a tax imposed by 14 such an ordinance on or after October 1, 2025, for: (1) any program of early 15 childhood education operated by the county school district or any public school in 16 the county school district; (2) any program of adult education operated by the 17 county school district or any public school in the county school district; (3) any 18 program to reduce truancy; (4) any development or redevelopment of affordable 19 housing or ensuring the availability or affordability of housing, including, without 20 limitation, any infrastructure or services to support the development or 21 redevelopment of affordable housing; (5) any incentive for the recruitment or 22 retention of licensed teachers for high-vacancy schools in the county school district; 23 – 2 – - *SB259* or (6) any joint labor-management program of workforce training in the hospitality 24 industry. 25 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 377D.130 is hereby amended to read as 1 follows: 2 377D.130 1. The money received from any tax imposed 3 pursuant to NRS 377D.100 and any applicable penalty or interest 4 must be retained by the county, or remitted to a city [or school 5 district] in the county, and must only be used to pay the cost of: 6 (a) [One or more programs of early childhood education 7 operated by the county school district or any public school in the 8 county school district; 9 (b) One or more programs of adult education operated by the 10 county school district or any public school in the county school 11 district; 12 (c) One or more programs to reduce truancy; 13 (d)] One or more programs to reduce homelessness; and 14 (b) Establishing, operating or maintaining a public transit 15 system. 16 [(e) The development or redevelopment of affordable housing or 17 ensuring the availability or affordability of housing, including, 18 without limitation, any infrastructure or services to support the 19 development or redevelopment of affordable housing; 20 (f) Incentives for the recruitment or retention of licensed 21 teachers for high-vacancy schools in the county school district; and 22 (g) One or more joint labor-management programs of workforce 23 training in the hospitality industry.] 24 2. [If a public school ceases to be a high-vacancy school, the 25 county school district in which the public school is located: 26 (a) May continue to use the money received by the county 27 school district from any tax imposed pursuant to NRS 377D.100 to 28 pay incentives to licensed teachers at the public school pursuant to 29 paragraph (f) of subsection 1 for the remainder of the school year in 30 which the public school ceased to be a high-vacancy school; and 31 (b) Shall not use the money received by the county school 32 district from any tax imposed pursuant to NRS 377D.100 to pay 33 incentives to licensed teachers at the public school pursuant to 34 paragraph (f) of subsection 1 for any subsequent school year unless 35 the public school newly qualifies as a high-vacancy school. 36 3.] A county that receives money from a tax imposed pursuant 37 to NRS 377D.100, and any city [or school district] to which the 38 money is remitted, must account separately for all such money. On 39 – 3 – - *SB259* or before November 1 of each year, each such county [,] or city [or 1 school district] shall prepare a report detailing how all money 2 received from a tax imposed pursuant to NRS 377D.100 was spent 3 during the immediately preceding fiscal year and submit the report 4 to the Director of the Legislative Counsel Bureau for transmission to 5 the next session of the Legislature, if the report is submitted in an 6 even-numbered year, or to the Legislative Commission, if the report 7 is submitted in an odd-numbered year. 8 [4.] 3. As used in this section, [“high-vacancy school”] 9 “public transit system” means a system employing any method of 10 conveyance that is operated for public [school, other than a charter 11 school, in which 10 percent or more of the classroom teacher 12 positions at the public school are: 13 (a) Vacant for 20 consecutive days or more; or 14 (b) Filled by a substitute teacher for 20 consecutive days or 15 more in the same classroom or assignment.] use and transports 16 persons within a county. 17 Sec. 2. No money received from a tax imposed by an 18 ordinance approved pursuant to NRS 377D.130 before October 1, 19 2025, may be used on or after October 1, 2025, for: 20 1. Any program of early childhood education operated by the 21 county school district or any public school in the county school 22 district; 23 2. Any program of adult education operated by the county 24 school district or any public school in the county school district; 25 3. Any program to reduce truancy; 26 4. Any development or redevelopment of affordable housing or 27 ensuring the availability or affordability of housing, including, 28 without limitation, any infrastructure or services to support the 29 development or redevelopment of affordable housing; 30 5. Any incentive for the recruitment or retention of licensed 31 teachers for high-vacancy schools in the county school district; or 32 6. Any joint labor-management program of workforce training 33 in the hospitality industry. 34 H