WASHOE COUNTY NEWS RELEASE
On Oct. 14, the Washoe County treasurer received an opinion from the Washoe County District Attorney’s office regarding the allocation of property taxes to redevelopment agencies.
Specifically in question is the provision in NRS 279.676(3), regarding payments to redevelopment agencies to cover indebtedness incurred prior to July 1, 1987, which reads as follows:
“The taxing entities shall continue to pay to a redevelopment agency any amount which was being paid before July 1, 1987, and in anticipation of which the agency became obligated before July 1, 1987, to repay any bond, loan, money advanced or any other indebtedness, whether funded, refunded, assumed or otherwise incurred.”
The District Attorney’s Office opinion clarifies that the minimum allocation of property taxes to redevelopment agencies, therefore, is intended to cover debt obligations incurred before July 1, 1987, because statutes must be read in their entirety.
“It is unfortunate that taxable values and the resulting tax revenues have fallen to the point that we have to impact other agencies in order to meet the minimum allocation to the redevelopment agency,” said Davis. “This is an unprecedented occurrence, which is causing a very close examination of the allocation methods used in the state, and we will work with Reno Redevelopment and other agencies to assure that the allocations are done fairly and in accordance with our understanding of the law.”
Providing an allocation to the Reno Redevelopment Agency to cover the current payment for indebtedness incurred prior to July 1, 1987, would only be required for the current fiscal year, since prior year allocations were sufficient to cover the indebtedness incurred prior to July 1, 1987.
The funds to provide an additional allocation would have to come from all the entities which share in the distribution of these tax revenues, which includes the Washoe County School District, the state of Nevada, the city of Reno and Washoe County.
The district attorney’s opinion is attached.
