This chapter shall be known as the
Tourism Improvement District Law.
(Added to NRS by 2005, 2362 )
Except as otherwise provided in NRS
271A.030 to 271A.060 , inclusive, and unless the context otherwise
requires, the words and terms defined in NRS 271.035 to 271.250 ,
inclusive, and 271A.030 to 271A.060
, inclusive, have the meanings
ascribed to them in those sections.
(Added to NRS by 2005, 2362 )
“District” means a tourism
improvement district created pursuant to NRS 271A.070 .
(Added to NRS by 2005, 2362 )
“Municipality” means any
county or city in this State.
(Added to NRS by 2005, 2362 )
“Project” means:
1. With respect to a county whose population is 400,000 or more:
(a) An art project, as defined in NRS 271.037 ;
(b) A tourism and entertainment project, as defined in NRS 271.234
; or
(c) A sports stadium which can be used for the home games of a
Major League Baseball or National Football League team and for other
purposes, including structures, buildings and other improvements and
equipment therefor, parking facilities, and all other appurtenances
necessary, useful or desirable for a Major League Baseball or National
Football League stadium, including, without limitation, all types of
property therefor and immediately adjacent facilities for retail sales,
dining and entertainment.
2. With respect to a city in a county whose population is 400,000
or more:
(a) A project described in paragraph (a), (b) or (c) of subsection
1; or
(b) A recreational project, as defined in NRS 268.710 .
3. With respect to a municipality other than a municipality
described in subsection 1 or 2, any project that the municipality is
authorized to acquire, improve, equip, operate and maintain pursuant to
subsections 1, 2 and 4 to 10, inclusive, of NRS 244A.057 or NRS 268.730 or 271.265 ,
as applicable.
4. Any real or personal property suitable for retail, tourism or
entertainment purposes.
5. Any real or personal property necessary, useful or desirable in
connection with any of the projects set forth in this section.
6. Any combination of the projects set forth in this section.
(Added to NRS by 2005, 2362 )
“Retailer” has the meaning
ascribed to it in NRS 374.060 .
(Added to NRS by 2005, 2363 )
TOURISM IMPROVEMENT DISTRICTS
1. Except as otherwise provided in this section and NRS 271A.080
, the governing body of a municipality
may:
(a) Create a tourism improvement district for the purposes of
carrying out this chapter and revise the boundaries of the district by
adopting an ordinance describing the boundaries of the district and
generally describing the types of projects which may be financed within
the district pursuant to this chapter.
(b) Without any election, acquire, improve, equip, operate and
maintain a project within a district created pursuant to paragraph (a).
The project may be owned by the municipality, another governmental
entity, any other person, or any combination thereof.
(c) For the purposes of carrying out paragraph (b), include in an
ordinance adopted pursuant to paragraph (a) the pledge of a single
percentage specified in the ordinance, which must not exceed 75 percent,
of:
(1) An amount equal to the proceeds of the taxes imposed
pursuant to NRS 372.105 and 372.185 with regard to tangible personal property sold at retail, or
stored, used or otherwise consumed, in the district during a fiscal year,
after the deduction of a sum equal to 0.75 percent of the amount of those
proceeds; and
(2) The amount of the proceeds of the taxes imposed pursuant
to NRS 374.110 , 374.190 and 377.030 with regard to tangible personal property sold at retail, or
stored, used or otherwise consumed, in the district during a fiscal year,
after the deduction of 0.75 percent of the amount of those proceeds.
2. A district created pursuant to this section by:
(a) A city must be located entirely within the boundaries of that
city.
(b) A county must be located entirely within the boundaries of that
county and, when the district is created, entirely outside of the
boundaries of any city.
3. If any property within the boundaries of a district is also
included within the boundaries of any other tourism improvement district
or any improvement district for which any money has been pledged pursuant
to NRS 271.650 , the total amount of
money pledged pursuant to this section and NRS 271.650 with respect to such property by all such
districts must not exceed the amount authorized pursuant to this section.
4. The governing body of a municipality shall not, after October
1, 2009, create a tourism improvement district that includes within its
boundaries any property included within the boundaries of a redevelopment
area established pursuant to chapter 279 of
NRS.
(Added to NRS by 2005, 2363 )
The
governing body of a municipality shall not adopt an ordinance pursuant to
NRS 271A.070 unless:
1. If the ordinance:
(a) Creates a district, the governing body has determined that no
retailers will have maintained or will be maintaining a fixed place of
business within the district on or within the 120 days immediately
preceding the date of the adoption of the ordinance; or
(b) Amends the boundaries of the district to add any additional
area, the governing body has determined that no retailers will have
maintained or will be maintaining a fixed place of business within that
area on or within 120 days immediately preceding the date of the adoption
of the ordinance.
2. The governing body has made a written finding at a public
hearing that the project will benefit the district.
3. The governing body has made a written finding at a public
hearing, based upon reports from independent consultants which were
addressed to the governing body, to the board of county commissioners, if
the governing body is not the board of county commissioners for the
county in which the tourism district is or will be located, and to the
board of trustees of the school district in which the tourism improvement
district is or will be located, as to whether the project and the
financing thereof pursuant to this chapter will have a positive fiscal
effect on the provision of local governmental services, after considering:
(a) The amount of the proceeds of all taxes and other governmental
revenue projected to be received as a result of the properties and
businesses expected to be located in the district;
(b) The use of any money proposed to be pledged pursuant to NRS
271A.070 ;
(c) Any increase in costs for the provision of local governmental
services, including, without limitation, services for education,
including operational and capital costs, and services for police
protection and fire protection, as a result of the project and the
development of land within the district; and
(d) Estimates of any increases in the proceeds from sales and use
taxes collected by retailers located outside of the district and of any
displacement of the proceeds from sales and use taxes collected by those
retailers, as a result of the properties and businesses expected to be
located in the district.
4. The governing body has, at least 45 days before making the
written finding required by subsection 3, provided to the board of
trustees of the school district in which the tourism improvement district
is or will be located:
(a) Written notice of the time and place of the meeting at which
the governing body will consider making that written finding; and
(b) Each analysis prepared by or for or presented to the governing
body regarding the fiscal effect of the project and the use of any money
proposed to be pledged pursuant to NRS 271A.070 on the provision of local governmental
services, including education.
Ê After the receipt of the notice required by this subsection and before
the date of the meeting at which the governing body will consider making
the written finding required by subsection 3, the board of trustees shall
conduct a hearing regarding the fiscal effect on the school district, if
any, of the project and the use of any money proposed to be pledged
pursuant to NRS 271A.070 , and may
submit to the governing body of the municipality any comments regarding
that fiscal effect. The governing body shall consider those comments when
making any written finding pursuant to subsection 3 and shall consider
those comments when considering the terms of any agreement pursuant to
NRS 271A.110 .
5. If the governing body is not the board of county commissioners
for the county in which the tourism district is or will be located, the
governing body has, at least 45 days before making the written finding
required by subsection 3, provided to the board of county commissioners
in the county in which the tourism improvement district is or will be
located:
(a) Written notice of the time and place of the meeting at which
the governing body will consider making that written finding; and
(b) Each analysis prepared by or for or presented to the governing
body regarding the fiscal effect of the project and the use of any money
proposed to be pledged pursuant to NRS 271A.070 on the provision of local governmental
services.
Ê After the receipt of the notice required by this subsection and before
the date of the meeting at which the governing body will consider making
the written finding required by subsection 3, the board of county
commissioners may conduct a hearing regarding the fiscal effect on local
governmental services, if any, of the project and the use of any money
proposed to be pledged pursuant to NRS 271A.070 , and may submit to the governing body of the
municipality any comments regarding that fiscal effect. The governing
body may consider those comments when making any written finding pursuant
to subsection 3 and shall consider those comments when considering the
terms of any agreement pursuant to NRS 271A.110 .
6. The governing body has determined, at a public hearing
conducted at least 15 days after providing notice of the hearing by
publication, that:
(a) As a result of the project:
(1) Retailers will locate their businesses as such in the
district; and
(2) There will be a substantial increase in the proceeds
from sales and use taxes remitted by retailers with regard to tangible
personal property sold at retail, or stored, used or otherwise consumed,
in the district; and
(b) A preponderance of that increase in the proceeds from sales and
use taxes will be attributable to transactions with tourists who are not
residents of this State.
7. The Commission on Tourism has determined, at a public hearing
conducted at least 15 days after providing notice of the hearing by
publication, that a preponderance of the increase in the proceeds from
sales and use taxes identified pursuant to subsection 6 will be
attributable to transactions with tourists who are not residents of this
State.
8. The Governor has determined that the project and the use of any
money proposed to be pledged pursuant to NRS 271A.070 will contribute significantly to economic
development and tourism in this State. Before making that determination,
the Governor:
(a) Must consider the fiscal effects of the pledge of money on
educational funding, including any fiscal effects described in comments
provided pursuant to subsection 4 by the school district in which the
tourism improvement district is or will be located, and for that purpose
may require the Department of Education or the Department of Taxation, or
both, to provide him with an appropriate fiscal report; and
(b) If the Governor determines that the pledge of money will have a
substantial adverse fiscal effect on educational funding, may require a
commitment from the municipality for the provision of specified payments
to the school district in which the tourism improvement district is or
will be located during the term of the use of any money pledged pursuant
to NRS 271A.070 . The payments may be
provided pursuant to agreements with owners of property within the
district authorized by NRS 271A.110
or from sources other than the owners of property within the district.
Such a commitment by a municipality is not subject to the limitations of
subsection 1 of NRS 354.626 and, notwithstanding any other law to the contrary, is binding
on the municipality for the term of the use of any money pledged pursuant
to NRS 271A.070 .
9. If any property within the boundaries of the district is also
included within the boundaries of any other tourism improvement district
or any improvement district for which any money has been pledged pursuant
to NRS 271.650 , all of the governing
bodies which created those districts have entered into an interlocal
agreement providing for:
(a) The apportionment of any money pledged pursuant to NRS 271.650
and 271A.070 with respect to such property; and
(b) The priority of the application of that money between:
(1) Bonds issued pursuant to chapter 271 of NRS; and
(2) Bonds and notes issued, and agreements entered into,
pursuant to NRS 271A.120 .
Ê Any such agreement for the priority of the application of that money
may be made irrevocable during the term of any bonds issued pursuant to
chapter 271 of NRS to which all or any
portion of that money is pledged, or during the term of any bonds or
notes issued or any agreements entered into pursuant to NRS 271A.120
to which all or any portion of that
money is pledged.
(Added to NRS by 2005, 2363 )
Any determination,
written finding or approval made pursuant to NRS 271A.080 is conclusive in the absence of fraud or
gross abuse of discretion.
(Added to NRS by 2005, 2366 )
After the adoption of an ordinance
creating a district in accordance with this chapter, the governing body
of the municipality and the Department of Taxation shall enter into an
agreement specifying the dates and procedure for distribution to the
municipality of any money pledged pursuant to NRS 271A.070 . The distributions must:
1. Be made not less frequently than once each calendar quarter; and
2. Cease at the end of the fiscal year in which the 20th
anniversary of the adoption of the ordinance creating the district occurs.
(Added to NRS by 2005, 2366 )
1. The governing body of a municipality may, except as otherwise
provided in subsection 2, enter into an agreement with one or more of the
owners of any interest in property within a district, pursuant to which
that owner would agree to make payments to the municipality or to another
local government that provides services in the district, or to both, to
defray, in whole or in part, the cost of local governmental services
during the term of the use of any money pledged pursuant to NRS 271A.070
. Such an agreement must specify the
amount to be paid by the owner of the property interest, which may be
stated as a specified amount per year or as an amount based upon any
formula upon which the municipality and owner agree.
2. The governing body of a municipality shall not enter into an
agreement pursuant to subsection 1 unless:
(a) The governing body has made a written finding pursuant to
subsection 3 of NRS 271A.080 that the
project and the use of any money pledged pursuant to NRS 271A.070 will not have a positive fiscal effect on
the provision of local governmental services; or
(b) The Governor requires a commitment from the municipality for
the provision of specified payments to the school district in which the
district is located during the term of the use of any money pledged
pursuant to NRS 271A.070 .
(Added to NRS by 2005, 2366 )
1. Except as otherwise provided in this section, if the governing
body of a municipality adopts an ordinance pursuant to NRS 271A.070
, the municipality may:
(a) Issue, at one time or from time to time, bonds or notes as
special obligations under the Local Government Securities Law to finance
or refinance projects for the benefit of the district. Any such bonds or
notes may be secured by a pledge of, and be payable from, any money
pledged pursuant to NRS 271A.070 and
received by the municipality with respect to the district, any revenue
received by the municipality from any revenue-producing projects in the
district, or any combination thereof.
(b) Enter into an agreement with one or more governmental entities
or other persons to reimburse that entity or person for the cost of
acquiring, improving or equipping, or any combination thereof, any
project, which may contain such terms as are determined to be desirable
by the governing body of the municipality, including the payment of
reasonable interest and other financing costs incurred by such entity or
other person. Any such reimbursements may be secured by a pledge of, and
be payable from, any money pledged pursuant to NRS 271A.070 and received by the municipality with
respect to the district, any revenue received by the municipality from
any revenue-producing projects in the district, or any combination
thereof. Such an agreement is not subject to the limitations of
subsection 1 of NRS 354.626 and may, at the option of the governing body, be binding on
the municipality beyond the fiscal year in which it was made, only if the
agreement pertains solely to one or more projects that are owned by the
municipality or another governmental entity.
2. Before the issuance of any bonds or notes pursuant to this
section, the municipality must obtain the results of a feasibility study,
commissioned by the municipality, which shows that a sufficient amount
will be generated from money pledged pursuant to NRS 271A.070 to make timely payment on the bonds or
notes, taking into account the revenue from any other revenue-producing
projects also pledged for the payment of the bonds or notes, if any. A
failure to make payments of any amounts due:
(a) With respect to any bonds or notes issued pursuant to
subsection 1; or
(b) Under any agreements entered into pursuant to subsection 1,
Ê because of any insufficiency in the amount of money pledged pursuant to
NRS 271A.070 to make those payments
shall be deemed not to constitute a default on those bonds, notes or
agreements.
3. No bond, note or other agreement issued or entered into
pursuant to this section may be secured by or payable from the general
fund of the municipality, the power of the municipality to levy ad
valorem property taxes, or any source other than any money pledged
pursuant to NRS 271A.070 and received
by the municipality with respect to the district, any revenue received by
the municipality from any revenue-producing projects in the district, or
any combination thereof. No bond, note or other agreement issued or
entered into pursuant to this section may ever become a general
obligation of the municipality or a charge against its general credit or
taxing powers, nor may any such bond, note or other agreement become a
debt of the municipality for purposes of any limitation on indebtedness.
4. Any bond or note issued pursuant to this section, including any
bond or note issued to refund any such bond or note, must mature on or
before, and any agreement entered pursuant to this section must
automatically terminate on or before, the end of the fiscal year in which
the 20th anniversary of the adoption of the ordinance creating the
district occurs.
(Added to NRS by 2005, 2367 )
1. Except as otherwise provided in this section, notwithstanding
any other law to the contrary, any contract or other agreement relating
to or providing for the construction, improvement, repair, demolition,
reconstruction, other acquisition, equipment, operation or maintenance of
any project financed in whole or in part pursuant to this chapter is
exempt from any law requiring competitive bidding or otherwise specifying
procedures for the award of contracts for construction or other
contracts, or specifying procedures for the procurement of goods or
services. The governing body of the municipality shall require a
quarterly report on the demography of the workers employed by any
contractor or subcontractor for each such project.
2. The provisions of subsection 1 do not apply to any project
which is constructed or maintained by a governmental entity on any
property while the governmental entity owns that property.
3. The provisions of NRS 338.010 to 338.090 , inclusive, apply to any contract or other agreement for the
construction, improvement, repair, demolition or reconstruction of any
project that is paid for in whole or in part:
(a) From the proceeds of bonds or notes issued pursuant to
paragraph (a) of subsection 1 of NRS 271A.120 ; or
(b) Pursuant to an agreement for reimbursement entered into
pursuant to paragraph (b) of subsection 1 of NRS 271A.120 ,
Ê regardless of whether the project is publicly or privately owned.
(Added to NRS by 2005, 2368 )
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