Article 10, Nevada Constitution

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Article 10 of the Nevada Constitution is entitled Taxation and consists of seven sections.

Section 1

Text of Section 2:

Uniform and Equal Rate of Assessment and Taxation; Exceptions and Exemptions; Inheritance and Income Taxes Prohibited

[Effective through November 24, 2014, and after that date unless the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election.]

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 provide by law for an abatement of the tax upon or an exemption of part of the assessed value of a single-family residence occupied by the owner to the extent necessary to avoid severe economic hardship to the owner of the residence.[1]

Amendments

  • Amended in 1902, 1906, 1942, 1960, 1962, 1974, 1978, 1982, 1986, 1989, 1990 and 2002. The first amendment was proposed and passed by the 1899 Legislature; agreed to and passed by the 1901 Legislature; and approved and ratified by the people at the 1902 General Election. See: Statutes of Nevada 1899, p. 139; Statutes of Nevada 1901, p. 136. The second amendment was proposed and passed by the 1903 Legislature; agreed to and passed by the 1905 Legislature; and approved and ratified by the people at the 1906 General Election. See: Statutes of Nevada 1903, p. 240; Statutes of Nevada 1905, p. 277. The third amendment was proposed and passed by the 1939 Legislature; agreed to and passed by the 1941 Legislature; and approved and ratified by the people at the 1942 General Election. See: Statutes of Nevada 1939, p. 360; Statutes of Nevada 1941, p. 559. The fourth amendment was proposed and passed by the 1957 Legislature; agreed to and passed by the 1959 Legislature; and approved and ratified by the people at the 1960 General Election. See: Statutes of Nevada 1957, p. 805; Statutes of Nevada 1959, p. 939. The fifth amendment was proposed and passed by the 1960 Legislature; agreed to and passed by the 1961 Legislature; and approved and ratified by the people at the 1962 General Election. See: Statutes of Nevada 1960, p. 509; Statutes of Nevada 1961, p. 825. The sixth amendment was proposed and passed by the 1971 Legislature; agreed to and passed by the 1973 Legislature; and approved and ratified by the people at the 1974 General Election. See: Statutes of Nevada 1971, p. 2299; Statutes of Nevada 1973, p. 1938. The seventh amendment was proposed and passed by the 1975 Legislature; agreed to and passed by the 1977 Legislature; and approved and ratified by the people at the 1978 General Election. See: Statutes of Nevada 1975, p. 1925; Statutes of Nevada 1977, p. 1727. The eighth amendment was proposed and passed by the 1979 Legislature; agreed to and passed by the 1981 Legislature; and approved and ratified by the people at the 1982 General Election. See: Statutes of Nevada 1979, p. 1983, Statutes of Nevada 1981, p. 2070. The ninth and tenth amendments were proposed and passed by the 1983 Legislature; agreed to and passed by the 1985 Legislature; and approved and ratified by the people at the 1986 General Election. See: Statutes of Nevada 1983; pp. 2141 and 2225; Statutes of Nevada 1985, pp. 2331 and 2401. The amendments were combined pursuant to Nev. Art. 16, § 1. The eleventh amendment was proposed and passed by the 1987 Legislature; agreed to and passed by the 1989 Legislature; and approved and ratified by the people at a special election held on May 2, 1989. See: Statutes of Nevada 1987, p. 2442; Statutes of Nevada 1989, p. 2228. The twelfth amendment was proposed by initiative petition and approved and ratified by the people at the General Elections of 1988 and 1990. The thirteenth amendment was proposed and passed by the 1999 Legislature; agreed to and passed by the 2001 Legislature; and approved and ratified by the people at the 2002 General Election. See: Statutes of Nevada 1999, p. 3968; Statutes of Nevada 2001, p. 3462.
Text of Section 2:

Uniform and Equal Rate of Assessment and Taxation; Exceptions and Exemptions; Inheritance and Income Taxes Prohibited

[Effective November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters at the 2014 General Election.]

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.

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 provide by law for an abatement of the tax upon or an exemption of part of the assessed value of a single-family residence occupied by the owner to the extent necessary to avoid severe economic hardship to the owner of the residence.[1]

Amendments

  • Amended in 1902, 1906, 1942, 1960, 1962, 1974, 1978, 1982, 1986, 1989, 1990 and 2002. The first amendment was proposed and passed by the 1899 Legislature; agreed to and passed by the 1901 Legislature; and approved and ratified by the people at the 1902 General Election. See: Statutes of Nevada 1899, p. 139; Statutes of Nevada 1901, p. 136. The second amendment was proposed and passed by the 1903 Legislature; agreed to and passed by the 1905 Legislature; and approved and ratified by the people at the 1906 General Election. See: Statutes of Nevada 1903, p. 240; Statutes of Nevada 1905, p. 277. The third amendment was proposed and passed by the 1939 Legislature; agreed to and passed by the 1941 Legislature; and approved and ratified by the people at the 1942 General Election. See: Statutes of Nevada 1939, p. 360; Statutes of Nevada 1941, p. 559. The fourth amendment was proposed and passed by the 1957 Legislature; agreed to and passed by the 1959 Legislature; and approved and ratified by the people at the 1960 General Election. See: Statutes of Nevada 1957, p. 805; Statutes of Nevada 1959, p. 939. The fifth amendment was proposed and passed by the 1960 Legislature; agreed to and passed by the 1961 Legislature; and approved and ratified by the people at the 1962 General Election. See: Statutes of Nevada 1960, p. 509; Statutes of Nevada 1961, p. 825. The sixth amendment was proposed and passed by the 1971 Legislature; agreed to and passed by the 1973 Legislature; and approved and ratified by the people at the 1974 General Election. See: Statutes of Nevada 1971, p. 2299; Statutes of Nevada 1973, p. 1938. The seventh amendment was proposed and passed by the 1975 Legislature; agreed to and passed by the 1977 Legislature; and approved and ratified by the people at the 1978 General Election. See: Statutes of Nevada 1975, p. 1925; Statutes of Nevada 1977, p. 1727. The eighth amendment was proposed and passed by the 1979 Legislature; agreed to and passed by the 1981 Legislature; and approved and ratified by the people at the 1982 General Election. See: Statutes of Nevada 1979, p. 1983, Statutes of Nevada 1981, p. 2070. The ninth and tenth amendments were proposed and passed by the 1983 Legislature; agreed to and passed by the 1985 Legislature; and approved and ratified by the people at the 1986 General Election. See: Statutes of Nevada 1983; pp. 2141 and 2225; Statutes of Nevada 1985, pp. 2331 and 2401. The amendments were combined pursuant to Nev. Art. 16, § 1. The eleventh amendment was proposed and passed by the 1987 Legislature; agreed to and passed by the 1989 Legislature; and approved and ratified by the people at a special election held on May 2, 1989. See: Statutes of Nevada 1987, p. 2442; Statutes of Nevada 1989, p. 2228. The twelfth amendment was proposed by initiative petition and approved and ratified by the people at the General Elections of 1988 and 1990. The thirteenth amendment was proposed and passed by the 1999 Legislature; agreed to and passed by the 2001 Legislature; and approved and ratified by the people at the 2002 General Election. See: Statutes of Nevada 1999, p. 3968; Statutes of Nevada 2001, p. 3462.]—(Proposed amendment passed by the 2011 Legislature; agreed to and passed by the 2013 Legislature; effective November 25, 2014, if approved and ratified by the voters at the 2014 General Election. See Statutes of Nevada 2011, p. 3871; Statutes of Nevada 2013, p. 3958.

Section 2

Text of Section 2:

Total Tax Levy for Public Purposes Limited

The total tax levy for all public purposes including levies for bonds, within the state, or any subdivision thereof, shall not exceed five cents on one dollar of assessed valuation.[1]

Amendments

  • Added in 1936. Proposed and passed by the 1933 legislature; agreed to and passed by the 1935 legislature; and approved and ratified by the people at the 1936 general election. See: Statutes of Nevada 1933, p. 369; Statutes of Nevada 1935, p. 428.

Section [3]

Text of Section [3]:

Total Tax Levy for Public Purposes Limited

Household goods and furniture of single household exempt from taxation. All household goods and furniture used by a single household and owned by a member of that household are exempt from taxation.[1]

Amendments

  • Added in 1982. Proposed by initiative petition and approved by the people at the 1980 and 1982 general elections.

Section 3[A]

Text of Section 3[A]:

Food Exempt from Taxes on Retail Sales; Exceptions

The legislature shall provide by law for:

1. The exemption of food for human consumption from any tax upon the sale, storage, use or consumption of tangible personal property; and

2. These commodities to be excluded from any such exemption:

(a) Prepared food intended for immediate consumption.
(b) Alcoholic beverages.[1]

Amendments

  • Added in 1984. Proposed and passed by the 1981 legislature; agreed to and passed by the 1983 legislature; and approved and ratified by the people at the 1984 general election. See: Statutes of Nevada 1981, p. 2093; Statutes of Nevada 1983, p. 2113.

Section 4

Text of Section 4:

Taxation of Estates Taxed by United States; Limitations

The legislature may provide by law for the taxation of estates taxed by the United States, but only to the extent of any credit allowed by federal law for the payment of the state tax and only for the purpose of education, to be divided between the common schools and the state university for their support and maintenance. The combined amount of these federal and state taxes may not exceed the estate tax which would be imposed by federal law alone. If another state of the United States imposes and collects death taxes against an estate which is taxable by the State of Nevada under this section, the amount of estate tax to be collected by the State of Nevada must be reduced by the amount of the death taxes collected by the other state. Any lien for the estate tax attaches no sooner than the time when the tax is due and payable, and no restriction on possession or use of a decedent's property may be imposed by law before the time when the tax is due and payable in full under federal law. The State of Nevada shall:

1. Accept the determination by the United States of the amount of the taxable estate without further audit.
2. Accept payment of the tax in installments proportionate to any which may be permitted under federal law.
3. Impose no penalty for such a deferred payment.
4. Not charge interest on a deferred or belated payment at any rate higher than may be provided in similar circumstances by federal law.[1]

Amendments

  • Added in 1986. Proposed and passed by the 1983 legislature; agreed to and passed by the 1985 legislature; and approved and ratified by the people at the 1986 general election. See: Statutes of Nevada 1983, p. 2224; Statutes of Nevada 1985, p. 2400.

Section 5

Text of Section 5:

Taxation of Estates Taxed by United States; Limitations

Tax on proceeds of minerals; appropriation to counties; apportionment; assessment and taxation of mines.

1. The legislature shall provide by law for a tax upon the net proceeds of all minerals, including oil, gas and other hydrocarbons, extracted in this state, at a rate not to exceed 5 percent of the net proceeds. No other tax may be imposed upon a mineral or its proceeds until the identity of the proceeds as such is lost.

2. The legislature shall appropriate to each county that sum which would be produced by levying a tax upon the entire amount of the net proceeds taxed in each taxing district in the county at the rate levied in that district upon the assessed valuation of real property. The total amount so appropriated to each county must be apportioned among the respective governmental units and districts within it, including the county itself and the school district, in the same proportion as they share in the total taxes collected on property according to value.

3. Each patented mine or mining claim must be assessed and taxed as other real property is assessed and taxed, except that no value may be attributed to any mineral known or believed to underlie it, and no value may be attributed to the surface of a mine or claim if one hundred dollars’ worth of labor has been actually performed on the mine or claim during the year preceding the assessment.[1]

Amendments

  • Added in 1989. Proposed and passed by the 1987 legislature; agreed to and passed by the 1989 legislature; and approved and ratified by the people at a special election held on May 2, 1989. See: Statutes of Nevada 1987, p. 2443; Statutes of Nevada 1989, p. 2229.

Section 6

Text of Section 6:

Enactment of Exemption from Ad Valorem Tax on Property or Excise Tax on Retail Sales

1.  The Legislature shall not enact an exemption from any ad valorem tax on property or excise tax on the sale, storage, use or consumption of tangible personal property sold at retail unless the Legislature finds that the exemption:

(a) Will achieve a bona fide social or economic purpose and the benefits of the exemption are expected to exceed any adverse effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted; and

(b) Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.

2.  In enacting an exemption from any ad valorem tax on property or excise tax on the sale, storage, use or consumption of tangible personal property sold at retail, the Legislature shall:

(a) Ensure that the requirements for claiming the exemption are as similar as practicable for similar classes of taxpayers; and

(b) Provide a specific date on which the exemption will cease to be effective.[1]

Amendments

  • Added in 2008. Proposed and passed by the 2005 Legislature; agreed to and passed by the 2007 Legislature; and approved and ratified by the people at the 2008 General Election. See: Statutes of Nevada 2005, p. 3048; Statutes of Nevada 2007, p. 3585.

See also

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