S.J.R. 17


Senate Joint Resolution No. 17--Committee on Taxatio
    n

                  March 29, 1995
                 _____________

         Referred to Committee on Taxation


SUMMARY--Proposes to amend Nevada constitution to 
          allow legislature to exempt property from 
          taxation if amount of tax to be collected 
          would be less than cost to collect it. 
          (BDR C-598)

FISCAL NOTE:  Effect on Local Government: No.
              Effect on the State or on Industrial Insurance: No.



EXPLANATION--Matter in italics is new; matter in bra
ckets [ ] is material to be omitted.

SENATE JOINT RESOLUTION--Proposing to amend the constitution of the 
        State of Nevada to allow the legislature to exempt property 
        from taxation if the amount of tax to be collected would be 
        less than the cost to collect the tax.


  RESOLVED BY THE SENATE AND ASSEMBLY OF THE STATE OF 
NEVADA, JOINTLY, That section 1 of article 10 of the 
constitution of the State of Nevada be amended to read as 
follows:
  Section 1.  1.  The legislature shall provide by law for 
a uniform and equal rate of assessment and taxation, and 
shall prescribe such regulations as shall secure a just 
valuation for taxation of all property, real, personal and 
possessory, except mines and mining claims, which shall be 
assessed and taxed only as provided in section 5 of this 
article.
  2.  Shares of stock, bonds, mortgages, notes, bank 
deposits, book accounts and credits, and securities and 
choses in action of like character are deemed to represent 
interest in property already assessed and taxed, either in 
Nevada or elsewhere, and shall be exempt.
  3.  The legislature may constitute agricultural and open-
space real property having a greater value for another use 
than that for which it is being used, as a separate class 
for taxation purposes and may provide a separate uniform 
plan for appraisal and valuation of such property for 
assessment purposes. If such plan is provided, the 
legislature shall also provide for retroactive assessment 
for a period of not less than 7 years when agricultural and 
open-space real property is converted to a higher use 
conforming to the use for which other nearby property is 
used.
  4.  Personal property which is moving in interstate 
commerce through or over the territory of the State of 
Nevada, or which was consigned to a warehouse, public or 
private, within the State of Nevada from outside the State 
of Nevada for storage in transit to a final destination 
outside the State of Nevada, whether specified when 
transportation begins or afterward, shall be deemed to have 
acquired no situs in Nevada for purposes of taxation and 
shall be exempt from taxation. Such property shall not be 
deprived of such exemption because while in the warehouse 
the property is assembled, bound, joined, processed, 
disassembled, divided, cut, broken in bulk, relabeled or 
repackaged.
  5.  The legislature may exempt motor vehicles from the 
provisions of the tax required by this section, and in lieu 
thereof, if such exemption is granted, shall provide for a 
uniform and equal rate of assessment and taxation of motor 
vehicles, which rate shall not exceed five cents on one 
dollar of assessed valuation.
  6.  The legislature shall provide by law for a progressive 
reduction in the tax upon business inventories by 20 percent 
in each year following the adoption of this provision, and 
after the expiration of the 4th year such inventories are 
exempt from taxation. The legislature may exempt any other 
personal property, including livestock.
  7.  No inheritance tax shall ever be levied.
  8.  The legislature may exempt by law property used for 
municipal, educational, literary, scientific or other 
charitable purposes, or to encourage the conservation of 
energy or the substitution of other sources for fossil 
sources of energy.
  9.  No income tax shall be levied upon the wages or 
personal income of natural persons. Notwithstanding the 
foregoing provision, and except as otherwise provided in 
subsection 1 of this section, taxes may be levied upon the 
income or revenue of any business in whatever form it may be 
conducted for profit in the state.
  \10.  The legislature may exempt from taxation that 
property for which the annual taxes due would be less than 
the cost of collecting those taxes.\\

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