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- 83rd Session (2025)
Senate Bill No. 28–Committee on Government Affairs
CHAPTER..........
AN ACT relating to municipalities; establishing requirements for a
tax increment area for certain projects relating to
transportation or affordable housing; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the governing body of a municipality to designate a tax
increment area for the purpose of creating a special account for the payment of
bonds or other securities to defray the cost of certain undertakings, which is defined
to include various projects based on the mechanism used to create the tax increment
area, including a drainage and flood control project, an overpass project, a sewerage
project, a street project, an underpass project, a water project, a natural re sources
project or a rail project. The designation of a tax increment area provides for the
allocation of a portion of the taxes levied upon taxable property in the tax
increment area each year to pay the bond requirements of loans, money advanced to
or in debtedness incurred by the municipality to finance or refinance the
undertaking. (NRS 278C.140, 278C.150, 278C.250) Section 13 of this bill revises
the definition of undertaking to include: (1) an affordable housing project; (2) a
fixed guideway project; ( 3) a high -capacity transit project; (4) a multi -family
housing project; (5) a transit-oriented development; and (6) a transportation project.
Sections 3-11 of this bill define these projects and certain terms relating to these
projects.
Section 12 of thi s bill establishes requirements for a governing body of a
municipality to order one of these undertakings, including that the tax increment
area be located: (1) in an area designated for transit -oriented development or
another land use specified in the mas ter plan adopted by the governing body; and
(2) not more than one -half mile from certain structures for a fixed guideway or
high-capacity transit project. Section 12 also requires the governing body to ensure
that the area chosen for the tax increment area meets certain other requirements.
Section 12 further requires that if a governing body adopts an ordinance
designating the tax increment area and ordering one of these undertakings: (1) the
ordinance may include additional requirements for the tax increme nt area and
undertaking; and (2) the governing body must file an exhibit with the ordinance that
addresses the determination of the governing body that the area chosen for the tax
increment area meets these requirements.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. (Deleted by amendment.)
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Sec. 2. Chapter 278C of NRS is hereby amended by adding
thereto the provisions set forth as sections 3 to 12, inclusive, of this
act.
Sec. 3. “Affordable housing” has the meaning ascribed to it
in NRS 278.0105.
Sec. 4. “Affordable housing project” means any land,
building or other improvement and all real and personal
properties necessary in connection therewith, whether or not in
existence, suitable for affordable housing.
Sec. 5. “Fixed guideway” has the meaning ascribed to it in
NRS 277A.080.
Sec. 6. “Fixed guideway project” means any project to
design, build, equip, improve or operate and maintain a fixed
guideway or any portion of a fixed guideway and all
appurtenances and incidentals related thereto. For the purposes of
this section, “project” has t he meaning ascribed to it in
NRS 277A.100.
Sec. 7. “High-capacity transit” has the meaning ascribed to
it in NRS 277A.400.
Sec. 8. “High-capacity transit project” means any project to
design, build, equip, improve or operate and maintain high -
capacity transit or any portion of high -capacity transit and all
appurtenances and incidentals related thereto. For the purposes of
this section, “project” has the meaning ascribed to it in
NRS 277A.100.
Sec. 9. “Multi-family housing project” means any land,
building or other improvement and all real and personal
properties necessary in connection therewith, whether or not in
existence, suitable for a land use or zone th at contains a
residential building containing five or more individual dwelling
units.
Sec. 10. “Transit-oriented development” means a land use or
zone that includes a mix of integrated residential or commercial
use types located in proximity to a fixed guideway or high-capacity
transit.
Sec. 11. “Transportation project” means any facilities for a
municipal system of public transportation, including, without
limitation, facilities for a fixed guideway, facilities for high -
capacity transit, a passenger terminal, a parking facility and such
other buildings, structures, improvements, furnishings and
equipment related thereto.
Sec. 12. 1. A tax increment area compr ising a specially
benefited zone designated pursuant to NRS 278C.150 that is
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ordered for an undertaking described in subsection 5 of NRS
278C.140, must be located:
(a) In an area designated for transit -oriented development or
other land use specified in the land use element of the master plan
adopted by the governing body pursuant to NRS 278.150; and
(b) Not more than one-half mile from a planned or constructed
station, terminal or parking facility for a fixed guideway or high -
capacity transit project.
2. In addition to the requirements of subsection 1, if a
governing body of a municipality orders an undertaking described
in subsection 5 of NRS 278C.140, the governing body must ensure
that the area chosen for the tax increment area comprising the
specially benefited zone:
(a) Addresses all relevant elements of the master plan adopted
by the governing body pursuant to NRS 278.150;
(b) Encourages transit -oriented development, redevelopment
and infill development and multi -family or affordable housing
projects;
(c) Encourages collaboration between the municipality, other
municipalities and public agencies of this State;
(d) Promotes the growth and use of public transportation; and
(e) Increases access to employment or educational
opportunities, or both.
3. If the governing body adopts an ordinance pursuant to
NRS 278C.220 to create the tax increment area and tax increment
account pertaining thereto for an undertaking described in
subsection 5 of NRS 278C.140:
(a) The ordinance may, if necessary, pre scribe additional or
conforming policies, regulations, restrictions or requirements
relating to the tax increment area and undertaking, including,
without limitation, any zoning regulations adopted pursuant to
NRS 278.250; and
(b) The governing body shall file with the ordinance an exhibit
that addresses the determination of the governing body that the
location of the tax increment area meets the requirements of
subsections 1 and 2.
Sec. 13. NRS 278C.140 is hereby amended to read as follows:
278C.140 “Undertaking” means any enterprise to acquire,
improve or equip, or any combination thereof:
1. In the case of counties:
(a) A drainage and flood control project, as defined in
NRS 244A.027;
(b) An overpass project, as defined in NRS 244A.037;
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(c) A sewerage project, as defined in NRS 244A.0505;
(d) A street project, as defined in NRS 244A.053;
(e) An underpass project, as defined in NRS 244A.055; or
(f) A water project, as defined in NRS 244A.056.
2. In the case of cities:
(a) A drainage project or flood control project, as defined in
NRS 268.682;
(b) An overpass project, as defined in NRS 268.700;
(c) A sewerage project, as defined in NRS 268.714;
(d) A street project, as defined in NRS 268.722;
(e) An underpass project, as defined in NRS 268.726; or
(f) A water project, as defined in NRS 268.728.
3. In the case of a city with respect to any tax increment area
created pursuant to a cooperative agreement between the city and
the Nevada System of Higher Education pursuant to NRS 278C.155,
in addition to the projects described in subsection 2:
(a) A project for any other infrastructure necessary or desirable
for the principal campus of the Nevada State University that is
approved by the Board of Regents of the University of Nevada; or
(b) An educational facility or other capital project for the
principal campus of the Nevada State University that is owned by
the Nevada System of Higher Education and approved by the Board
of Regents of the University of Nevada.
4. In the case of a county or city with respect to any tax
increment area created by an ordinance adopted pursuant to NRS
278C.157, in addition to the projects described in subsections 1 and
2:
(a) A natural resources project; or
(b) A rail project.
5. In the case of a county or city with respect to any tax
increment area created in accordance with the requirements set
forth in section 12 of this act, in addition to the projects described
in subsections 1 and 2:
(a) An affordable housing project;
(b) A fixed guideway project;
(c) A high-capacity transit project;
(d) A multi-family housing project;
(e) A transit-oriented development; or
(f) A transportation project.
Sec. 14. This act becomes effective on July 1, 2025.
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