Now that you know what are ad valorem taxes, here we examine whether GIDs have the power to levy and collect them? As elsewhere stated, GIDs are limited purpose special districts¹ along the lines of vector control (mosquitos), library, fire, water, sewer and cemetery districts. In Nevada this means they’re creatures of statute set forth at Title 25², and addressed by Chapter NRS 318.

Nev. Const. Art. 8, Sec. 8: As elsewhere discussed, we begin our analysis with the Nevada Constitution given it “is the ‘supreme law of the State’ which ‘control[s] over any conflicting statutory provisions.’”³ Since Nev. Const. Art. 8, Sec. 8 instructs that the Legislature shall provide for/restrict the powers of all general purpose governments, the Legislature has created the GID law⁴, and the Incline Village General Improvement District (“IVGID”) is a GID⁵, its powers are recognized/restricted by NRS 318.

Dillon’s Rule: Also as elsewhere discussed, since Nevada is a Dillon’s Rule State⁶ to county, city and other local governments (like GIDs), we refresh the reader’s recollection of Dillon’s Rule. That is, a local government’s powers are limited and only extend to those which are:

1) Granted in express words;

2) Necessarily implied or…incident to…powers expressly granted; and,

3) Absolutely essential to the declared objects and purposes of the (municipal) corporation – not simply convenient, but indispensable⁷.

The rule also states that any reasonable doubt by the court as to whether a power has been granted will be ruled against the local government.”⁸

NRS 318.225: instructs that

“The board shall have power and authority to levy and collect general (ad valorem) taxes on and against all taxable property within the district.”

NRS 361.445: instructs that

“The assessment made by the county assessor and by the Department, as equalized according to law, shall be the only basis for property taxation by any city, town, school district, road district or other district in that county.”

As the reader can see, in Nevada there is in fact NRS authority permitting GID Boards to levy and collect an ad valorem tax.

And now you know!

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1. See our What Are GIDs discussion.
2. See Public Organizations for Community Service (go to https://www.leg.state.nv.us/nrs/).
3. See Thomas v. Nev. Yellow Cab Corp., 130 Nev. Adv. Op. 52, 327 P.3d 518, 521 (2014).
4. See NRS 318.010.
5. See NRS 318.015(1) which instructs that “each district organized pursuant to the provisions of this chapter shall be a body corporate and politic…quasi-municipal corporation” and general improvement district.
6. In Nevada’s jurisprudence, the Nevada Supreme Court has adopted and applied Dillon’s Rule [see Tucker v. Mayor and Bd. of Alderman, 4 Nev. 20, 26 (1868); State ex rel. Rosenstock v. Swift, 11 Nev. 128 (1876); NRS 244.137(2) and 268.001(2)].
7. See NRS 244.137(3) and 268.001(3).
8. See NRS 244.137(4) and 268.001(4).