ORDINANCE NO. 42 POSSESSORY INTEREST TAX. General Provisions PROPERTY EXEMPT FROM TAXATION. Valuation of Possessory Interests

Transcription

1 ORDINANCE NO. 42 POSSESSORY INTEREST TAX General Provisions SHORT TITLE PURPOSES AUTHORITY DEFINTIONS PROPERTY EXEMPT FROM TAXATION AGENT OR DESIGNATED PARTY THE TAX CYCLE IMPOSITION AND RATE OF TAX Valuation of Possessory Interests SUBJECT MATTER OF VALUATION DATE OF VALUATION METHOD OF VALUATION RATE OF VALUATION FOR ASSESSMENTS INFORMATION STATEMENT OF TAXPAYER Filing of Tax Return and Payment of Tax FILING DATE ASSESSMENT OF TAX ESTIMATES OF TAX 1 Approved November 17, 1999

2 EXTENSION OF TIME TO FILE RETURN AND PAY TAX CLAIMING EXEMTPOIN REPORTING OF EXEMPT INTEREST Remedies APPEAL PROCEDURES FAILURE TO FILE A RETURN AND PAY TAX AUDIT COLLECTION POWER Miscellaneous Provisions USE OF TAX PROCEEDS SEVERABILITY CONFLICT WITH OTHER LAWS EFFECTIVE DATE 2 Approved November 17, 1999

3 General Provisions SHORT TITLE: This Ordinance is known and may be cited as the Possessory Interest tax Code PURPOSES: The purpose of this Ordinance is to: 1) Promote economic growth on the Reno-Sparks Indian Colony; 2) Generate revenue so that the Reno-Sparks Indian Colony can provide essential governmental services to all persons residing on or working within the jurisdiction of the Reno-Sparks Indian Colony. 3) Provide revenue to promote the general welfare, safety and peace of the Reno-Sparks Indian Colony AUTHORITY: This Ordinance is adopted by the Reno-Sparks Indian Colony Tribal Council pursuant to Article VI, Section 1(g) of the Reno- Sparks Indian Colony Constitution DEFINITIONS: All definitions contained in Ordinance 26, Ordinance 31 and Ordinance 43, formerly known as Title 11, Chapters I, II and N, apply to this Chapter. This Chapter also includes the additional terms: a) Possessory Interest: means a non-exempt interest in real property, _owned in fee or obtained by means of a lease, permit, easement, right of way or any other agreement or process pertaining to land owned or thereafter acquired by the Reno-Sparks Indian Colony (or otherwise determined by the Colony to be within the jurisdiction of the Colony) which grants rights to possession and use of such property to a degree les than absolute fee simple ownership, and includes the value of all improvements on or relating to such interests of lands including, but. not way of limitation, the following: (1) Pipelines; (2) Electric Power Lines; 3 Approved November 17, 1999

4 (3) Water and gas lines; (4) Telephone and telegraph lines; and (5) Improvements and personal property located on any right of way, permit, easement, lease or grant. (c) Tax Revenue Department: means the Tax Revenue Department of the Colony. (d) Utility: shall mean any privately or publicly held entity primarily engaged in supplying, transmitting, transporting, or distributing electricity, oil and oil products, gas, natural gas, natural gas products, water, carbon dioxide, liquid hydrocarbons, telephone, telegraph, cellular telephone or other communication services, or transportation services including freight services PROPERTY EXEMPT FROM TAXATION: The following property shall be exempt from the tax enacted by this Ordinance: (a) Any possessory interest in any Tribal or individually owned trust or fee land used solely for the purpose of a permanent residence.; (b) Any possessory interest held by the United States, the State of Nevada or its subdivisions, or the Reno-Sparks Indian Colony; (c) Any possessory interest consisting of utility service which solely serves the Reno-Sparks Indian Colony or its individual residents; (d) Any possessory interest which gives use of the property for a continuous period of less than thirty (30) days; and (e) Any possessory interest granted by the Reno-Sparks Indian Colony in a commercial business lease, so long as the lease expressly excludes the possessory interest from taxation pursuant to this Ordinance. 4 Approved November 17, 1999

5 AGENT OR DESIGNATED PARTY: Every entity or person subject to tax shall designate an agent as the individual to act on behalf of the taxpayer. This person shall complete all forms and provide all information required by this ordinance to the Tax Revenue Department. THE TAX CYCLE: The tax rate and method to determine assessed value of a possessory interest shall remain constant for a four-year tax cycle. The initial tax cycle shall commence on the effective date of this ordinance and terminate on December 31, Thereafter, the tax cycle shall consist of a full four-year period ending the last day of December of odd numbered years. IMPOSITION AND RATE OF TAX: The Possessory Interest Tax shall be imposed on the ownership of possessory interests on January 1''of each taxable year and shall be assessed at the rate oft here percent (3%) of the assessed value of the possessory interest as determined and appraised in by the annual average rate of the Gross Domestic Product (GPD) Price Deflator of the preceding year for the succeeding tax cycles. Upon passage of any amendment to this ordinance by the Tribal Council changing the tax rate and/or the method for assessing the tax, notice shall be given to all taxpayers and shall be published in newspapers of general circulation and posted or published at such places as the Tribal Council designates. Valuation of Possessory Interests SUBJECT MATIER OF VALUATION: The subject matter for valuation under this Ordinance shall be all real property within a possessory interest, and the improvements thereon DATE OF VALUATION: All possessory interests subject to taxation shall be valued as of January 1'' of each calendar year. During the first week of January of each year, the Tax Revenue Department shall send taxpayers the required tax forms for filing and payment of taxes. 5 Approved November 17, 1999

6 METHOD OF VALUATION: Taxpayers shall calculate their tax liabilities in accordance with the capitalization of net income method. The value of the possessory interest shall be computed by taking the capitalized value of the net income exclusive of any nonutility income and deductions as proportions of the taxpayer's interest on the Colony and value of land. The capitalization rate shall be set at 13% except if the taxpayer demonstrates in writing why a different and higher rate is justified. RATE OF VALUATION FOR ASSESSMENT: The valuation for assessment of all taxable possessory interests shall be eighty (80%) percent of the assessed value thereof. This percentage shall be uniformly applied without exception to the assessed value of the various classes of possessory interests on the Colony. INFORMATION STATEMENT OF TAXPAYER: Every taxpayer whose possessory interest is in operation or capable of being in operation by April15'h of any year, shall prepare, sign and submit a statement with the Tax Revenue Department. The statement shall be submitted no later than March 31'' of that year. The statement shall include the following information: 1) The name and addresses of the person or business owning a possessory interest; 2) The location of the possessory interest; 3) The gross operating revenue, the gross operating expenses, and the net income, exclusive of any nonpossessory interest income, and any deductions of that portion of the facility on the Colony; 4) For utilities subject to the jurisdiction of the FEDERAL REGULATORY AUTHORITIES, the information incorporated in their related forms they file with those authorities shall be adequate. For others, the similar information that they file with the state regulatory commissions or authorities shall suffice. Filing of Tax Return and Payment of Tax FILING DATE: Each taxpayer shall file his tax return and pay its assessed tax no later than April 15th of each year. 6 Approved November 17, 1999

7 ASSESSMENT OF TAX: The Tax Revenue Department is authorized to assess taxes against a taxpayer. Such assessments are presumed to be correct. ESTIMATES OF TAX: All taxpayers may pay estimated taxes. The Tax Revenue Department shall provide taxpayers with forms to pay estimated taxes. EXTENSION OF TIME FOR FILING RETURN AND PAYING TAX: Upon filing a request with the Tax Revenue Department for an extension of time within which to pay assessed taxes, and upon a showing of good cause, the Tax Revenue Department may extend the time to file the return and pay taxes for period not to exceed 45 days. Such a request must be filed on or before April 15th of the tax year. CLAIMING EXEMPTION: Any person or entity with a possessory interest that is believed to be exempt shall file a claim for exemption. The claims for exemption shall be filed on the form provided by the Tax revenue Department and shall be accompanied by a map clearly indicating the specific property for which the exemption is claimed. REPORTING OF EXEMPT INTEREST: No taxpayer shall be required to file valuation forms for any possessory interest which is exempt, provided that the Tax Revenue Department may require any taxpayer to submit the information necessary to establish the tax exemption. Remedies APPEAL PROCEDURES: Any protest to an assessment, denial of claim for exemption, determination of value or any other matter relating to the possessory interest tax may only be raised in accordance with Reno-Sparks Indian Colony Administrative Regulation Approved November 17, 1999

8 FAlLURE TO FILE A RETURN AND PAY TAX: If a return is not filed, the Tax Revenue Department is authorized to make an estimate of the tax due and to asses that tax. The assessment shall be binding on the taxpayer unless the taxpayer produces good cause why he should be relieved of the assessment. In addition to the estimated tax due, there shall be a penalty of 10% of the tax due. The amount of the deficiency, if not paid within then (10) days of receipt of notice of the tax assessment, shall bear interest at the rate of 1% per month until paid in full. AUDIT: If it appears that the return filed by the taxpayer does not reflect the tax due under this ordinance, the Tax Revenue Department shall have the authority to audit the taxpayer for the deficiency, interest, penalties and costs associated with the audit COLLECTION POWER: The Tax Revenue Department shall have the authority to collect all taxes and penalties assessed, including the power to commence a civil action to enforce compliance with this ordinance. Any action pursuant to this provision must be instituted within three (3) years of the tax assessment date. Any civil pleadings filed pursuant to this section must be signed by the Tribal Chairman or Vice-Chairman, on behalf of the Colony. Miscellaneous Provisions USE OF TAX PROCEEDS: All tax proceeds collected by the Tax Revenue Department under this ordinance shall be deposited with the Finance Department. The Finance Department shall credit the tax proceeds to the general revenue fund of the Colony to defray the costs of providing essential governmental services and other purposes as determined by the Tribal Council. SEVERABILITY: If any part of this ordinance is held invalid, the remainder of the ordinance and other chapters of the T ax Code shall not be affected. 8 Approved November 17, 1999

9 CONFLICT WITH OTHER APPLICABLE LAW: In the event of a conflict between this ordinance and any other provision of law, this ordinance shall supersede and control EFFECTIVE DATE: This ordinance shall be effective on the date enacted by the Tribal Council. CERTIFICATION I, the undersigned, as Chairman of the Reno-Sparks Indian Colony Tribal Council, hereby certify that the Tribal Council is composed of seven (7) members of whom seven (7) members constituting a quorum were present at a duly called meeting and held on November 17, 1999, and that the foregoing Ordinance NO. 42 was duly adopted by a vote of six (6) for, zero (0) against, and zero (0) abstentions, pursuant to the authority under Article VI, Section 1(b), (e), (f) and (g) of the Constitution of the Reno-Sparks Indian Colony. Is/ Arlan Melendez Tribal Chairman 9 Approved November 17, 1999