2005 Nevada Revised Statutes - Chapter 278C — Tax Increment Areas

CHAPTER 278C - TAX INCREMENT AREAS

NRS 278C.010 Definitions.

NRS 278C.020 Clerkdefined.

NRS 278C.030 Costof the undertaking defined.

NRS 278C.040 Countydefined.

NRS 278C.050 Engineerdefined.

NRS 278C.060 Governingbody defined.

NRS 278C.070 Municipalitydefined.

NRS 278C.080 Newspaperdefined.

NRS 278C.090 Postingdefined.

NRS 278C.100 Publicationand publish defined.

NRS 278C.110 Speciallybenefited zone defined.

NRS 278C.120 Taxincrement account defined.

NRS 278C.130 Taxincrement area defined.

NRS 278C.140 Undertakingdefined.

NRS 278C.150 Designationof area; creation of special account; certain property to be excluded fromarea.

NRS 278C.160 Provisionalorder: Procedure.

NRS 278C.170 Provisionalorder: Meeting; notice of meeting; comments about undertaking; modification orrescission of proceedings; restrictions on changes after provision of notice.

NRS 278C.180 Listof persons who reside within proposed area; mailing of notice; verification ofmailing.

NRS 278C.190 Verificationof posting of notice.

NRS 278C.200 Publicationof notice; verification of publication.

NRS 278C.210 Actionsat hearing; resolutions; complaint, protest or objection of proceedings.

NRS 278C.220 Procedureafter hearing; modification of plans; adoption of ordinance creating area.

NRS 278C.230 Amendmentof ordinance creating area; notice to be provided to certain owners of tractsof land; amount of taxes to be allocated must be computed separately fororiginal area and each addition of land thereto.

NRS 278C.240 Applicabilityto undertaking of provisions governing payment of prevailing wage.

NRS 278C.250 Allocation,division and disposition of money from taxes; limitation on revenue; repaymentof bond or other indebtedness.

NRS 278C.260 Limitationupon revenue from taxes ad valorem not applicable.

NRS 278C.270 Appealfrom adverse order.

NRS 278C.280 Typesof securities authorized; terms of securities; securities issued as specialobligations do not constitute outstanding indebtedness of municipality;securities issued as general obligation constitute outstanding indebtedness ofmunicipality; net pledged revenues.

NRS 278C.290 Maturationand payment of securities.

NRS 278C.300 Expirationof area.

NRS 278C.310 Effectof chapter.

_________

NRS 278C.010 Definitions. Except as otherwise provided in this chapter or where thecontext otherwise requires, terms used or referred to in this chapter are asdefined in the County Bond Law, insofar as they apply to counties, and the CityBond Law, insofar as they apply to cities, and except as otherwise provided inthose laws, as defined in the Local Government Securities Law, but thedefinitions provided in this chapter, except where the context otherwiserequires, govern the construction of this chapter.

(Added to NRS by 2005, 1757)

NRS 278C.020 Clerkdefined. Clerk means the county clerk orcity clerk, as appropriate.

(Added to NRS by 2005, 1757)

NRS 278C.030 Costof the undertaking defined. Cost of theundertaking or any phrase of similar import, means the cost of any projectas the latter phrase is defined in the Local Government Securities Law.

(Added to NRS by 2005, 1757)

NRS 278C.040 Countydefined. County means any county in thisState.

(Added to NRS by 2005, 1757)

NRS 278C.050 Engineerdefined. Engineer means the municipal engineeror firm of engineers employed by the municipality in connection with any undertaking,any project or the exercise of any power authorized in this chapter.

(Added to NRS by 2005, 1757)

NRS 278C.060 Governingbody defined. Governing body means theboard of county commissioners, the board of supervisors, the city council orthe board of commissioners, as appropriate.

(Added to NRS by 2005, 1757)

NRS 278C.070 Municipalitydefined. Municipality means any county orcity in this State.

(Added to NRS by 2005, 1757)

NRS 278C.080 Newspaperdefined. Newspaper means a newspaper printedin the English language at least once each calendar week of general circulationin the municipality.

(Added to NRS by 2005, 1757)

NRS 278C.090 Postingdefined. Posting means posting in threepublic places at or near the site of the undertaking or any project designatedat least 20 days before the designated hearing or other time or event.

(Added to NRS by 2005, 1757)

NRS 278C.100 Publicationand publish defined. Publication orpublish means publication in at least one newspaper, except as otherwiseexpressly provided or necessarily implied in this chapter, at least once a weekfor 3 consecutive weeks by three weekly insertions, the first publication beingat least 15 days before the designated time or event.

(Added to NRS by 2005, 1757)

NRS 278C.110 Speciallybenefited zone defined. Specially benefitedzone means an area which is specially benefited by an undertaking under thischapter.

(Added to NRS by 2005, 1758)

NRS 278C.120 Taxincrement account defined. Tax increment accountmeans a special account created pursuant to NRS278C.220.

(Added to NRS by 2005, 1758)

NRS 278C.130 Taxincrement area defined. Tax increment areameans the area:

1. Whose boundaries are coterminous with those of aspecially benefited zone established as provided in NRS 278C.150;

2. Specially benefited by an undertaking under thischapter;

3. Designated by ordinance as provided in NRS 278C.220; and

4. In which is located the taxable property theassessed valuation of which is the basis for the allocation of tax proceeds tothe tax increment account pursuant to NRS278C.250.

(Added to NRS by 2005, 1758)

NRS 278C.140 Undertakingdefined. Undertaking means any enterprise toacquire, improve or equip, or any combination thereof:

1. In the case of counties:

(a) A drainage and flood control project, as defined inNRS 244A.027;

(b) An overpass project, as defined in NRS 244A.037;

(c) A sewerage project, as defined in NRS 244A.0505;

(d) A street project, as defined in NRS 244A.053;

(e) An underpass project, as defined in NRS 244A.055; or

(f) A water project, as defined in NRS 244A.056.

2. In the case of cities:

(a) A drainage project or flood control project, asdefined in NRS 268.682;

(b) An overpass project, as defined in NRS 268.700;

(c) A sewerage project, as defined in NRS 268.714;

(d) A street project, as defined in NRS 268.722;

(e) An underpass project, as defined in NRS 268.726; or

(f) A water project, as defined in NRS 268.728.

(Added to NRS by 2005, 1758)

NRS 278C.150 Designationof area; creation of special account; certain property to be excluded fromarea.

1. Except as otherwise provided in subsections 2, 3and 4, the governing body of a municipality, on the behalf and in the name ofthe municipality, may designate a tax increment area comprising any speciallybenefited zone within the municipality designated for the purpose of creating aspecial account for the payment of bonds or other securities issued to defraythe cost of an undertaking, including, without limitation, the condemnation ofproperty for an undertaking, as supplemented by the Local Government SecuritiesLaw, except as otherwise provided in this chapter.

2. The right-of-way property of a railroad companythat is under the jurisdiction of the Surface Transportation Board must not beincluded in a tax increment area unless the inclusion of the property ismutually agreed upon by the governing body and the railroad company.

3. A tax increment area may not include a propertythat is, at the time the boundaries of the tax increment area are created,included within a redevelopment area previously established pursuant to thelaws of this State.

4. The taxable property of a tax increment area mustnot be included in any subsequently created tax increment area until at least50 years after the effective date of creation of the first tax increment areain which the property was included.

(Added to NRS by 2005, 1758)

NRS 278C.160 Provisionalorder: Procedure.

1. Whenever the governing body of a municipality is ofthe opinion that the interests of the municipality and the public require anundertaking, the governing body, by resolution, shall direct the engineer toprepare:

(a) Preliminary plans and a preliminary estimate of thecost of the undertaking, including, without limitation, all estimated financingcosts to be capitalized with the proceeds of the securities issued by themunicipality and all other estimated incidental costs relating to theundertaking;

(b) A statement of the proposed tax increment areapertaining thereto, the last finalized amount of the assessed valuation of thetaxable property in such area, and the amount of taxes, including in suchamount the sum of any unpaid taxes, whether or not delinquent, resulting fromthe last taxation of the property, based upon the records of the countyassessor and the county treasurer; and

(c) A statement of the estimated amount of the taxproceeds to be credited annually to the tax increment account during the termof the proposed securities payable therefrom.

2. The resolution must describe the undertaking ingeneral terms and must state:

(a) What portion of the expense of the undertaking willbe paid with the proceeds of securities issued by the municipality inanticipation of tax proceeds to be credited to the tax increment account andpayable wholly or in part therefrom;

(b) How the remaining portion of the expense of theundertaking, if any, is to be financed; and

(c) The basic security and any additional security forthe payment of securities of the municipality pertaining to the undertaking.

3. The resolution must designate the tax incrementarea or its location, so that the various tracts of taxable real property andany taxable personal property can be identified and determined to be within orwithout the proposed tax increment area, but need not describe in minute detaileach tract of real property proposed to be included within the tax incrementarea.

4. The engineer shall file with the clerk thepreliminary plans, estimate of costs and statements.

5. Upon the filing of the preliminary plans, estimateof costs and statements with the clerk, the governing body shall examine thepreliminary plans, estimate of costs and statements, and if the governing bodyapproves of the preliminary plans, estimate of costs and statements, it shallby resolution provisionally order the undertaking.

(Added to NRS by 2005, 1759)

NRS 278C.170 Provisionalorder: Meeting; notice of meeting; comments about undertaking; modification orrescission of proceedings; restrictions on changes after provision of notice.

1. In the resolution making the provisional order, thegoverning body shall set a time and place for a meeting to consider theordering of the undertaking and hear all complaints, protests, objections andother relevant comments concerning the undertaking that are made in accordancewith subsection 2. The time for the meeting must be at least 20 days after thedate the governing body adopts the resolution that provisionally orders theundertaking.

2. The Federal Government, the State, any public body,or any natural person who resides in the municipality or owns taxable personalor real property in the municipality, or any representative of any such naturalperson or entity, may submit a complaint, protest, objection or other commentabout the undertaking before the governing body. If such an entity or persondesires to submit a complaint, protest, objection or other comment about theundertaking for consideration by the governing body, the entity or person must:

(a) File a written complaint, protest, objection orother comment about the undertaking with the clerk at least 3 days before thedate of the meeting described in subsection 1;

(b) Present an oral complaint, protest, objection orother comment about the undertaking to the governing body at the meetingdescribed in subsection 1; or

(c) Present the complaint, protest, objection or othercomment in the manner required pursuant to paragraphs (a) and (b).

3. Notice of the meeting described in subsection 1must be given:

(a) To all persons on the list established pursuant to NRS 278C.180, by mailing;

(b) By posting; and

(c) By publication.

4. The notice must:

(a) Describe the undertaking and the project orprojects relating thereto without mentioning minor details or incidentals;

(b) State the preliminary estimate of the cost of theundertaking, including all incidental costs, as stated in the preliminaryplans, estimate of costs and statements of the engineer filed with the clerkpursuant to NRS 278C.160;

(c) Describe the proposed tax increment area pertainingto the undertaking, the last finalized amount of the assessed valuation of thetaxable property in the area, and the amount of taxes, including in such amountthe sum of any unpaid taxes, whether or not delinquent, resulting from the lasttaxation of the property, based upon the records of the county assessor and thecounty treasurer;

(d) State what portion of the expense of theundertaking will be paid with the proceeds of securities issued by themunicipality in anticipation of tax proceeds to be credited to the taxincrement account and payable wholly or in part therefrom, and state the basicsecurity and any additional security for the payment of securities of themunicipality pertaining to the undertaking;

(e) State how the remaining portion of the expense, ifany, is to be financed;

(f) State the estimated amount of the tax proceeds tobe credited annually to the tax increment account pertaining to the undertakingduring the term of the proposed securities payable from such proceeds, and theestimated amount of any net revenues derived annually from the operation of theproject or projects pertaining to the undertaking and pledged for the paymentof those securities;

(g) State the estimated aggregate principal amount tobe borrowed by the issuance of the securities, excluding proceeds thereof tofund or refund outstanding securities, and the estimated total bondrequirements of the securities;

(h) Find, determine and declare that the estimated taxproceeds to be credited to the tax increment account and any such net pledgedrevenues will be fully sufficient to pay the bond requirements of thesecurities as they become due; and

(i) State the date, time and place of the meetingdescribed in subsection 1.

5. All proceedings may be modified or rescinded whollyor in part by resolution adopted by the governing body at any time before thegoverning body passes the ordinance ordering the undertaking and creating thetax increment area and the tax increment account pertaining thereto pursuant toNRS 278C.220.

6. Except as otherwise provided in this section, apublic body shall not make a substantial change in the undertaking, thepreliminary estimates, the proposed tax increment area or other statementsrelating thereto after the first publication or posting of notice or after thefirst mailing of notice to the property owners, whichever occurs first, withoutadditional notice and a hearing pursuant to this section. A public body maydelete a portion of the undertaking and property from the proposed taxincrement area without notice and a hearing pursuant to this section. Asubsequent final determination of the amount of assessed valuation of taxableproperty in the tax increment area or a subsequent levy of taxes does notadversely affect proceedings taken pursuant to this chapter.

7. The engineer may make minor changes in and developthe undertaking as to the time, plans and materials entering into theundertaking at any time before its completion. Any minor changes authorized bythis subsection must be made a matter of public record at a public meeting ofthe governing body.

(Added to NRS by 2005, 1759)

NRS 278C.180 Listof persons who reside within proposed area; mailing of notice; verification ofmailing.

1. The governing body shall cause a list of the namesand addresses of all persons who reside within a proposed tax increment areaand who own taxable property within a proposed tax increment area to becreated. The names and addresses for the list may be obtained from the recordsof the county assessor or from such other sources as the clerk or the engineerdeems available. A list of such names and addresses pertaining to any taxincrement area may be revised from time to time, but must be revised at leastonce every 12 months if the list is needed for a period longer than 12 months.

2. If notice is required to be mailed pursuant to thischapter, the notice must be sent by prepaid, first-class mail, to the lastknown address of the person to whom the notice is being sent.

3. The mailing of any notice required in this chaptermust be verified by the affidavit or certificate of the engineer, clerk, deputyor other person mailing the notice. Each verification of mailing must be filedwith the clerk and be retained in the records of the municipality at leastuntil all bonds and any other securities pertaining to a tax increment accounthave been paid in full, or any claim is barred by a statute of limitations.

4. A verification of mailing is prima facie evidenceof the mailing of the notice in accordance with the requirements of thissection.

(Added to NRS by 2005, 1761)

NRS 278C.190 Verificationof posting of notice.

1. The posting of any notice required in this chaptermust be verified by the affidavit or certificate of the engineer, clerk, deputyor other person posting the notice. Each verification of posting must be filedwith the clerk and must be retained in the records of the municipality at leastuntil the bonds and other securities pertaining to a tax increment account havebeen paid in full and until any claim is barred by a statute of limitations.

2. A verification of posting is prima facie evidenceof the posting of the notice in accordance with the requirements of thissection.

(Added to NRS by 2005, 1761)

NRS 278C.200 Publicationof notice; verification of publication.

1. Any notice required to be published pursuant tothis chapter must be published in a newspaper of general circulation within thearea of the tax increment area about which the notice relates at least once aweek for 3 consecutive weeks. The first publication must be at least 15 daysbefore the designated time or event, and the last publication must be at least14 days after the first publication.

2. Publication is complete on the day of the lastpublication.

3. Any publication required in this chapter must beverified by the affidavit of the person who publishes the notice. Eachverification of publication must be filed with the clerk and must be retainedin the records of the municipality at least until all the bonds and any othersecurities pertaining to a tax increment account have been paid in full, or anyclaim is barred by a statute of limitations.

4. A verification of publication is prima facieevidence of the publication of the notice in accordance with the requirementsof this section.

(Added to NRS by 2005, 1762)

NRS 278C.210 Actionsat hearing; resolutions; complaint, protest or objection of proceedings.

1. At the time and place of the hearing, the governingbody shall cause to be read and consider all written complaints, protests,objections and other relevant comments made in accordance with NRS 278C.170 and hear all oralcomplaints, protests, objections and other relevant comments made pursuant tothat section.

2. After considering all written and oral complaints,protests, objections and other relevant comments that were properly submittedand after considering any other relevant material put forth, if the governingbody determines that the undertaking, or a part thereof, is not in the publicinterest:

(a) The governing body, by resolution, shall make anorder which states that the undertaking or a part of the undertaking, asappropriate, is not in the public interest and which states the reasons thatthe undertaking, or part of the undertaking, is not in the public interest;

(b) The public body may, by resolution and inaccordance with the notice and hearing requirements of this chapter, modify theproposed tax increment area or undertaking to conform to the order; and

(c) The undertaking or part of the undertaking, asappropriate, must be stopped until the governing body adopts a new resolutionfor the undertaking which conforms to the order.

3. Any complaint, protest or objection to theregularity, validity and correctness of the proceedings taken and the documentsmade before the date of the hearing is waived unless presented in the mannerspecified in this chapter.

(Added to NRS by 2005, 1762)

NRS 278C.220 Procedureafter hearing; modification of plans; adoption of ordinance creating area.

1. If, after considering all written and oralcomplaints, protests, objections and other relevant comments that were properlysubmitted and after considering any other relevant material put forth, thegoverning body determines that the undertaking is in the public interest anddefines that public interest, the governing body shall determine whether toproceed with the undertaking. If the governing body has ordered anymodification to an undertaking and desires to proceed, it shall direct theengineer to modify the plans, estimate of costs and statements, as appropriate.

2. The engineer, if so directed, shall appropriatelymodify them and file the modified plans, estimate of costs and statements, asappropriate, with the clerk.

3. When the plans, estimates and statements are filedwith the clerk and are satisfactory to the governing body, if the governingbody wants to proceed with the undertaking, the governing body shall, byordinance:

(a) Overrule all complaints, protests and objectionsnot otherwise acted upon;

(b) Order the undertaking;

(c) Describe the tax increment area pertaining to theundertaking; and

(d) Create the tax increment account for theundertaking.

4. The governing body must adopt the ordinance in thesame manner as a regular ordinance.

(Added to NRS by 2005, 1762)

NRS 278C.230 Amendmentof ordinance creating area; notice to be provided to certain owners of tractsof land; amount of taxes to be allocated must be computed separately fororiginal area and each addition of land thereto.

1. The governing body may amend an ordinance adoptedpursuant to NRS 278C.220 by adopting asupplemental ordinance, introduced and adopted in the same manner as a regularordinance, to:

(a) Modify the undertaking by specifying new projectsor removing or modifying projects specified in the original ordinance;

(b) Add areas to or remove areas from a tax incrementarea; and

(c) Make such other changes, additions or deletions asthe governing body determines will further its objectives within the taxincrement area.

2. If a proposed amendment would add any area to orremove any area from a tax increment area, the governing body shall provide bymail notice of the date, time and place of the meeting at which the proposedamendment will be considered to the last known owner or owners of each tract ofland proposed to be added or removed.

3. The amount of taxes to be allocated to a taxincrement account pursuant to NRS 278C.250must be computed separately for the original tax increment area and eachaddition of land thereto.

(Added to NRS by 2005, 1763)

NRS 278C.240 Applicabilityto undertaking of provisions governing payment of prevailing wage. The provisions of NRS338.010 to 338.090, inclusive, applyto any construction work to be performed under any contract or other agreementrelated to an undertaking ordered by a governing body pursuant to this chapter.

(Added to NRS by 2005, 1763)

NRS 278C.250 Allocation,division and disposition of money from taxes; limitation on revenue; repaymentof bond or other indebtedness.

1. After the effective date of the ordinance adoptedpursuant to NRS 278C.220, any taxeslevied upon taxable property in the tax increment area each year by or for thebenefit of the State, the municipality and any public body must be divided asfollows:

(a) That portion of the taxes that would be produced bythe rate upon which the tax is levied each year by or for each of those taxingagencies upon the total sum of the assessed value of the taxable property inthe tax increment area as shown upon the last equalized assessment roll used inconnection with the taxation of the property by the taxing agency, must beallocated to and when collected must be paid into the funds of the respectivetaxing agencies as taxes by or for the taxing agencies on all other propertyare paid.

(b) Except as otherwise provided in this section, theportion of the taxes levied each year in excess of the amount determinedpursuant to paragraph (a) must be allocated to, and when collected must be paidinto, the tax increment account pertaining to the undertaking to pay the bondrequirements of loans, money advanced to, or indebtedness, whether funded,refunded, assumed or otherwise, incurred by the municipality to finance orrefinance, in whole or in part, the undertaking. Unless the total assessedvaluation of the taxable property in the tax increment area exceeds the totalassessed value of the taxable property in the area as shown by the lastequalized assessment roll referred to in this subsection, all of the taxeslevied and collected upon the taxable property in the area must be paid intothe funds of the respective taxing agencies. When the loans, advances andindebtedness, if any, and interest thereon, have been paid, all moneythereafter received from taxes upon the taxable property in the tax incrementarea must be paid into the funds of the respective taxing agencies as taxes onall other property are paid.

(c) The amount of the taxes levied each year which arepaid into the tax increment account pursuant to paragraph (b) must be limitedby the governing body to an amount not to exceed the combined total amountrequired for annual debt service of the project or projects acquired, improvedor equipped, or any combination thereof, as part of the undertaking.

(d) Any revenues generated within the tax incrementdistrict in excess of the amount referenced in paragraph (c), if any, will bepaid into the funds of the respective taxing agencies in the same proportion astheir base amount was distributed.

2. In any fiscal year, the total revenue paid to a taxincrement area in combination with the total revenue paid to any other taxincrement areas and any redevelopment agencies of a municipality must notexceed:

(a) In a municipality whose population is 100,000 ormore, an amount equal to the combined tax rates of the taxing agencies for thatfiscal year multiplied by 10 percent of the total assessed valuation of themunicipality.

(b) In a municipality whose population is less than100,000, an amount equal to the combined tax rates of the taxing agencies forthat fiscal year multiplied by 15 percent of the total assessed valuation ofthe municipality.

If therevenue paid to a tax increment area must be limited pursuant to paragraph (a)or (b) and the municipality has more than one redevelopment agency or tax incrementarea, or one of each, the municipality shall determine the allocation to eachagency and area. Any revenue that would be allocated to a tax increment areabut for the provisions of this section must be paid into the funds of therespective taxing agencies.

3. The portion of the taxes levied each year in excessof the amount determined pursuant to paragraph (a) of subsection 1 which isattributable to any tax rate levied by a taxing agency:

(a) To produce revenue in an amount sufficient to makeannual repayments of the principal of, and the interest on, any bondedindebtedness that was approved by a majority of the registered voters withinthe area of the taxing agency voting upon the question, must be allocated to,and when collected must be paid into, the debt service fund of that taxingagency.

(b) In excess of any tax rate of that taxing agencyapplicable to the last taxation of the property before the effective date ofthe ordinance, if that additional rate was approved by a majority of the registeredvoters within the area of the taxing agency voting upon the question, must beallocated to, and when collected must be paid into, the appropriate fund ofthat taxing agency.

(c) Pursuant to NRS387.3285 or 387.3287, if that ratewas approved by a majority of the registered voters within the area of thetaxing agency voting upon the question, must be allocated to, and whencollected must be paid into, the appropriate fund of that taxing agency.

(d) For the support of the public schools within acounty school district pursuant to NRS387.195, must be allocated to, and when collected must be paid into, the appropriatefund of that taxing agency.

4. The provisions of paragraph (a) of subsection 3include, without limitation, a tax rate approved for bonds of a county schooldistrict issued pursuant to NRS 350.020,including, without limitation, amounts necessary for a reserve account in thedebt service fund.

5. As used in this section, the term last equalizedassessment roll means the assessment roll in existence on the 15th day ofMarch immediately preceding the effective date of the ordinance.

(Added to NRS by 2005, 1763)

NRS 278C.260 Limitationupon revenue from taxes ad valorem not applicable. Theallowed revenue from taxes ad valorem determined pursuant to NRS 354.59811 does not apply to taxincrement areas created pursuant to this chapter.

(Added to NRS by 2005, 1765)

NRS 278C.270 Appealfrom adverse order. The Federal Government,the State, any public body or any natural person filing a written complaint,protest or objection in the manner and within the time provided in NRS 278C.170, may, within 30 days afterthe governing body has finally passed on the complaint, protest or objection byresolution pursuant to NRS 278C.210 orby ordinance pursuant to NRS 278C.220,commence an action or suit in a court of competent jurisdiction to correct orset aside the determination, but thereafter all actions or suits attacking thevalidity of the proceedings are perpetually barred.

(Added to NRS by 2005, 1765)

NRS 278C.280 Typesof securities authorized; terms of securities; securities issued as specialobligations do not constitute outstanding indebtedness of municipality;securities issued as general obligation constitute outstanding indebtedness ofmunicipality; net pledged revenues.

1. To defray in whole or in part the cost of anyundertaking, a municipality may issue the following securities:

(a) Notes;

(b) Warrants;

(c) Interim debentures;

(d) Bonds; and

(e) Temporary bonds.

2. Any net revenues derived from the operation of aproject acquired, improved or equipped, or any combination thereof, as part ofthe undertaking must be pledged for the payment of any securities issuedpursuant to this section. The securities must be made payable from any such netpledged revenues as the bond requirements become due from time to time by thebond ordinance, trust indenture or other proceedings that authorize theissuance of the securities or otherwise pertain to their issuance.

3. Securities issued pursuant to this section:

(a) Must be made payable from tax proceeds accountedfor in the tax increment account; and

(b) May, at the option of the municipality and ifotherwise so authorized by law, be made payable from the taxes levied by themunicipality against all taxable property within the municipality.

Themunicipality may also issue general obligation securities other than the onesauthorized by this chapter that are made payable from taxes without also makingthe securities payable from any net pledged revenues or tax proceeds accountedfor in a tax increment account, or from both of those sources of revenue.

4. Any securities payable only in the manner providedin either paragraph (a) of subsection 3 or both subsection 2 and paragraph (a)of subsection 3:

(a) Are special obligations of the municipality and arenot in their issuance subject to any debt limitation imposed by law;

(b) While they are outstanding, do not exhaust the debtincurring power of the municipality; and

(c) May be issued under the provisions of the LocalGovernment Securities Law, except as otherwise provided in this chapter,without any compliance with the provisions of NRS350.020 to 350.070, inclusive,except as otherwise provided in the Local Government Securities Law, only afterthe issuance of municipal bonds is approved under the provisions of NRS 350.011 to 350.0165, inclusive.

5. Any securities payable from taxes in the mannerprovided in paragraph (b) of subsection 3, regardless of whether they are alsopayable in the manner provided in paragraph (a) of subsection 3 or in bothsubsection 2 and paragraph (a) of subsection 3:

(a) Are general obligations of the municipality and arein their issuance subject to such debt limitation;

(b) While they are outstanding, do exhaust the power ofthe municipality to incur debt; and

(c) May be issued under the provisions of the LocalGovernment Securities Law only after the issuance of municipal bonds isapproved under the provisions of:

(1) NRS350.011 to 350.0165, inclusive; or

(2) NRS350.020 to 350.070, inclusive,

except forthe issuance of notes or warrants under the Local Government Securities Lawthat are payable out of the revenues for the current year and are not to be fundedwith the proceeds of interim debentures or bonds in the absence of such bondapproval under the two acts designated in subparagraphs (1) and (2).

6. In the proceedings for the advancement of money, orthe making of loans, or the incurrence of any indebtedness, whether funded,refunded, assumed or otherwise, by the municipality to finance or refinance, inwhole or in part, the undertaking, the portion of taxes mentioned in subsection2 of NRS 278C.250 must be irrevocablypledged for the payment of the bond requirements of the loans, advances orindebtedness. The provisions in the Local Government Securities Law pertainingto net pledged revenues are applicable to such a pledge to secure the paymentof tax increment bonds.

(Added to NRS by 2005, 1765)

NRS 278C.290 Maturationand payment of securities. Any securities issuedby a municipality for a tax increment area pursuant to this chapter must matureand be fully paid, including any interest thereon, before the expiration of thetax increment area.

(Added to NRS by 2005, 1766)

NRS 278C.300 Expirationof area. A tax increment area must expire notmore than 30 years after the date on which the ordinance which creates the areabecomes effective.

(Added to NRS by 2005, 1766)

NRS 278C.310 Effectof chapter.

1. This chapter, without reference to other statutesof this State, except as otherwise expressly provided in this chapter,constitutes full authority for the exercise of powers granted in this chapter.

2. No other law with regard to the exercise of anypower granted in this chapter that provides for an election, requires anapproval, or in any way impedes or restricts the carrying out of the actsauthorized to be done applies to any acts taken under this chapter, except asprovided in this chapter.

3. The powers conferred by this chapter are inaddition and supplemental to, and not in substitution for, and the limitationsimposed by this chapter do not affect the powers conferred by, any other law.

(Added to NRS by 2005, 1766)

 

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