BOOS co taupe eee SENATE JOINT RESOLUTION No, 1- COMMITTEE OF THE WHOLE PREFILED JULY 30, 2020 Referred to Committee of the Whole SUMMARY—Proposes to amend the Nevada Constitution to revise Provisions governing the taxation of minerals extracted in this State. (BDR C-27) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes, EXPLANATION - Mer bd er ne: ter ete comic ie ie tad SENATE JOINT RESOLUTION—Proposing to amend the Nevada Constitution to revise provisions governing the taxation of minerals extracted in. this State and to require the Legislature to provide by law for a program to make Payments to eligible persons in this State from a portion of the tax on the proceeds of ‘minerals. Ax. 10. § 5) The Nevada Constitution also exempts minesaed mining claims from the property tax, (Nev. Const. Art. 10. § 1) This resolution proposes to amend the Nevada Constitution to el iminate: (1) the Fequirement for the Legislature to impose a tax upon the my Proceeds of minerals appease ot 10 excced 5 percent of the net proceed ion 2) the appropriation of a portion of those proceeds to cach ‘county in this State. Instead, this resolution would amend the Nevada Constitution to impose a tax on the gross Brogeeds of all minerals extracted in this State during 2 calendar year at a rate of extracted in this State. minerals extracted in thia amangt that creates. generates or increases any public revenue in any form. The Proacuant #0 the Nevada Constitution proposed by this tesshainn yori also Provide that an affirmative vote of not fewer thee two-thirds of the members 1f this resolution is passed during the 32nd Special Session of th Legislature it Tara llso be passed by the next Legislature and then approved sat wey by the Decora afte {iction before the proposed amendments 10 the Nevada Contras become effective. eee RESOLVED BY THE SENATE AND ASSEMBLY OF THE STATE OF Nevaba. JOINTLY, That Section $ of Article 10 of the Nevag, Constitution be amended to read as follows: ec. 5.1. The Hegisleture} Legislature shall provide by law for the taxation of mines, mining claims dad the proceeds of all minerals, including oil, gas and other hydrocarbons, extracted in this State. 2. jit addition 10 any other taxes provided by law, for each calendar year beginning on or after January 1, 2023, a {ax is hereby imposed upon the fret} gross proceeds of all minerals, including oil, gas and other hydrocarbons, extracted in this feteter} State during a calendar year, at a rate fot se of 7.75 percent of the gross Froceeds {-Ne-other tex may-be-impesed-tnot-a-mineral-or +, unless the Legislature increases or reduces the rate of the tax by a law enacted fg accordance with subsection 5. 3. ‘axed exept that-no-valie-may-be attributed to-any-mineet waaaiitibuted-to-the-suefuee-of-a-mine-or claim if one hurdred 1 2 3 doHersworth-of tabor-hes-been-aetually performed on-the Ss Fifty percent of any money collected by the State from the 6 ‘ax imposed pursuant to subsection 2 on the gross proceeds 7 of minerals extracted in this State must be Segregated in 8 Proper accounts in the State Treasury and, in accordance 9 with appropriations made by law, used exclusively to fund a 10 Program established pursuant to subsection 4. WW 4 The Legislature shall provide by law for a program 12 fo make payments from the money held in the State 13 Treasury pursuant ‘to subsection 3 to eligible persons 14 domiciled in this State on a yearly basis, with the first 15 payment being due on August 30, 2024, and subsequent 16 payments being due on the tast Friday of August for each 17 year thereafter. The Legislature shall establish by law the 18 criteria which a person must satisfy to be eligible for such 19 payments, 20 5. Notwithstanding any other provision of this 21 Constitution: 22 (4) A majority of all the members elected to each House 23 is necessary to pass any provision of a bill that enacts ov 24 amends any law providing for the taxation of mines, mining 25 claims or the proceeds of minerals, including oil, gas and 26 other hydrocarbons, extracted in this State, if the provision 27 Creates, generates or increases any public revenue in any 28. Sorm, including, without limitation, any provision of a bill 29 that increases the rate of the tax imposed pursuant to 30 subsection 2. 31 (6) An affirmative vote of not fewer than two-thirds of 32 the members elected to each House is necessary to pass a 33 bill which provides for an exemption from or a reduction in 34 the rate of the tax imposed pursuant to subsection 2 with 35 respect to the gross proceeds of minerals extracted in this 36 State during a calendar ‘year by a class of persons extracting 37 such minerals or with respect to the gross proceeds of a type 38 of mineral extracted in this State during a calendar ‘year, 39 40 And be it further 41 RESOLVED, That this resolution becomes effective upon 42. adoption. @ wa