Given we’ve shared that a general improvement district’s (“GID’s”) Board of Trustees’ (“Board’s”) power to “fix, and from time to time increase or decrease…rates, tolls or charges other than special assessments” flows from NRS 318.197(1), and this NRS instructs those exactments may “includ(e)…service charges…for services or facilities furnished,” here we examine service charges, whether they can be exacted in addition to the charges for services or facilities the District assesses, and whether they are assessed by the District?

Although NRS 318.197 expressly uses the words “service charges” in describing the rates, tolls and charges a GID Board may fix, nowhere is the term defined. So we’re relegated to searching elsewhere. And here’s what we’ve discovered.

“A service charge is a fee collected to pay for services related to (a)…product or service being purchased. The charge is usually added at the time of the transaction.”¹ “It is typically collected when there are interactions between a consumer, and the company involved.”² Many industries collect service charges, including restaurants, banking, and travel and tourism. When collected these charges may cover services rendered to the (customer), or they may cover administrative or processing costs (associated therewith). Since service charges are paid directly to the (provider of a service,) they are different from tips which are paid to the (person) who (actually) renders the service.”¹

“Service charges come with different names depending on the industry…For example, a ‘service charge’ is typically added to your bill in a (San Francisco) restaurant to pay for” employees’ health care costs². At many hotels a “resort fee” is added to the cost of your lodging for the availability of wi-fi, a couple of bottles of water per day, access to the facility’s swimming pool and fitness facilities, or at the Hyatt Lake Tahoe Hotel, the Diamond Peak Ski Shuttle. At financial institutions the charge can be “a monthly fee…charged…for maintaining a checking or savings account…In the airline industry(, it can be an additional charge)…to pay for services such as entertainment, baggage handling, seat selection, (a meal,) travel agent commissions, etc…In the utility industry(, it can be a charge)…in addition to the actual bill (itself) for power…used.”³ It can be an additional fee imposed for the privilege of using a credit card to make payment. Finally, “Airbnb is an example of an online rental platform that imposes ‘service charges’ to cover company costs.”²

So does the Incline Village General Improvement District (“IVGID”) assess service charges? The answer is yes. And here are some examples: Water/sewer service bills include administration charges⁴. If you pay for your water/sewer bill with an eCheck or credit card, the District adds a service charge. “EChecks will be charged a flat rate of $1.50 per transaction…Credit cards will be charged a service fee of 2.45%.”⁵ If the District provides food and beverage service, mandatory gratuity (payable to IVGID) is included in the charge.

And now you know!

1. Go to https://www.investopedia.com/terms/s/service-charge.asp.
2. Go to https://corporatefinanceinstitute.com/resources/wealth-management/service-charge/#:~:text=A%20service%20charge%2C%20also%20called,of%20a%20product%20or%20service.
3. Look at your IVGID utility bill. In addition to charges for actual water used or capital improvement costs, you will discover a separate monthly “administrative” charge. In the credit card world this is service charge.
4. Go to https://www.yourtahoeplace.com/wp-content/uploads/2025/05/20250514_PW_ScheduleofServiceCharges_2025_Adopted_05142025.pdf.
5. Go to https://www.yourtahoeplace.com/residents/water-sewer-bill-pay/.