New list of objections and update
Hello everyone,
Thank you so much again, we are at 143 and counting. I plan to send this over to our county commissioner early next week. So, please keep sharing. I also wanted to share my newest list of objections.
Please feel free to send your concerns and objections in as well. Another great way to help out is that you can also email our representative directly as well to JHERMAN@WASHOECOUNTY.US and let her know that we do don't want a UIT in Cold Springs.
Objections to the formation of an unincorporated town in Cold Springs
Cons:
**There has not been an economic sustainability report completed to show that the UIT of Cold Springs would be fiscally stable or even fiscally possible. It would be grossly irresponsible and negligent to not provide a neutral sustainability report by a professional firm before moving forward on this project.
**The town board is volunteer and hold a 2 year term.
**The town board has the ability to approve codes that can regulate what the residents can and can’t do within the town’s jurisdiction. For examples regulations can be passed limiting pets and livestock, the appearance of homes and businesses, and will be able to issue fines for people that break their codes.
From document 1 below “A town board may adopt all ordinances, rules, and regulations and perform all other acts necessary for the execution of the powers and jurisdiction conferred NRS Chapter 269 (NRS 269.155) as well as revise and codify those ordinances into a town code. (NRS 269.166 to 269.169) It can punish breaches of ordinances. (NRS 269.160)”
**Higher taxes
NRS 269.115 says that the county shall (which means they are required to) levy a tax, not exceeding 1.5 percent per annum, upon the assessed value of all real and personal property situated in any unincorporated town in their respective counties, made taxable by law for state and county purposes.
From document 1 section E “Sources of Revenue Available to Unincorporated Towns 1. Property Tax Property tax, also referred to as the Ad Valorem Tax, is an important source of revenue for local governments. Real and personal property in Nevada can be assessed for taxation. There are exceptions, but generally property subject to taxation must be assessed at 35% of its taxable value. Furthermore, the total ad valorem tax levy for all public purposes must not exceed $3.64 on each $100 of assessed valuation. This has serious implications for local government. For example, any given piece of taxable property may be subject to tax by the state, county, town, special district, or school district. A local government seeking to levy a new ad valorem tax will need to take this limit into consideration. It can be especially difficult for local governments with low assessed valuation of taxable property. To generate sufficient revenues, the local government in this situation may have to levy higher ad valorem taxes than a local government with high assessed valuation of taxable property. Once the statutory limit of $3.64 is reached, generating additional revenue can be difficult. Local governments may find themselves feuding. Disputes that cannot be resolved by the local governments themselves will be resolved by the Tax Commission. (NRS 361.455) According to NRS 269.120 the board of county commissioners “assess, fix, and designate the amount of taxes that should be levied and collected for city or town purposes on all real and personal property assessable for state or county purposes within any town or city in their county.” In practice, as part of the budgeting process, the town board would submit their request(s) for taxes to be levied to the county commissioners. Towns have access to the funds set aside for them pursuant to NRS 269.095. For example, if a general ad valorem tax is assessed on a particular unincorporated town, that money is to be used solely for the benefit of that town by the governing body of that town, e.g., the town board. The board of county commissioners can levy and collect taxes on assessable real and personal property within any town or city within their county (NRS 269.120.) There are exceptions, but generally the board of county commissioners “shall levy a tax, not exceeding 1.5% per annum” upon the assessed value of all real and personal property situated in any unincorporated town” in their respective county (NRS 269.115)”
**The town can collect additional fees from other sources.
From Doc. 1 “Unincorporated towns may collect revenue through licenses, permits, and franchise fees. Examples include business licenses and animal fees. liquor licenses, gaming licenses, and building permits. If an unincorporated town offers a franchise to a particular business to provide a service for the town, e.g., ambulance service, then the town will also collect a franchise fee for giving that business the exclusive right to provide that service in the town.”
**Lack of commercial, lodging, recreational and gaming tax revenue to help with depreciating property tax revenue.
Nevada State tax law depreciates home replacement values by 1.5% per year for 50 years, which means that after there is no new construction, we would be looking at a yearly depreciation of property tax revenue for 50 years, unless we develop new residential development. (Document 2 goes into detail about the structure of the Nevada Tax system)
Document 1
LEGAL AND ECONOMIC CONSIDERATIONS FOR INCORPORATION OF NEVADA TOWNS
https://www.unr.edu/Documents/business/uced/technical-reports/statewide/2000-01-02rpt.pdf
Document 2
STATE OF NEVADA PROPERTY TAX SYSTEM RECOMMENDATIONS FOR SYSTEM IMPROVEMENTS INCLUDING REMOVAL OF DEPRECIATION AND CHANGES TO PROPERTY VALUATION
http://www.ekayconsultants.com/Prop%20Tax%20Paper.pdf
Thank you all again for your support.