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Does The Incline Village General Improvement District (“IVGID”) Assess And Collect Special Taxes?

IVGID 101 Posted on by

Since we’ve elsewhere explained what special taxes represent, here we examine whether IVGID, in particular, receives the special taxes? And if so, the amount.

Although we’ve explained Nevada general improvement districts (“GIDs”) have no power to assess and collect special taxes, it turns out they do. Given we’ve demonstrated that the test for determining whether a monetary exaction is a fee1 involves “analyz(ing) whether the charge:

(1) Applies to the direct beneficiary of a particular service2;

(2) Is allocated directly to defraying the costs of providing the service3;

(3) Is reasonably proportionate to the benefit received;”4 and,

(4) In most instances5 the element of choice6,

And where it doesn’t, it will be held (to be) invalid”7 as a tax8.

Additionally, we’ve demonstrated that there are other Circumstances Under Which a “Fee” is Transformed Into a “Tax,”

And when these circumstances occur, precisely what type of tax are we talking about? That’s right. Special taxes.

And now you know!

  1. See  State v. Medeiros, 89 Haw. 361, 973 P.2d 736, 741-742 (1999).
  2. See Medeiros, supra, at 973 P.2d 743.
  3. See Rizzo v. City of Philadelphia, 668 A.2d 236, 238 (Pa. Commw. Ct. 1995).
  4. See Clean Water Coalition v. The M Resort, LLC, 127 Nev. 301, 255 P. 3d 247, 256 (2011); City of Madera v. Black, 181 Cal. 306, 313, 184 P. 397 (1919). Where the ordinance or resolution adopting the fee does not require that the funds generated from the fee be used for the service represented by payment, “leaving open the possibility that the charge could be used for general revenue raising purposes,” it must be held to be invalid [see Executive Aircraft Consulting, Inc. v. City of Newton, 252 Kan. 421, 426, 845 P.2d 57 (1993) citing National Cable Television Ass’n, Inc. v. F.C.C., 554 F.2d 1094, 1106 (D.C. Cir. 1976)].
  5. See our Circumstances Where The “Paid by Choice” Factor Can Be Disregarded discussion.
  6. See U.S. v. City of Huntington, W.Va., 999 F.2d 71, 74 (4th Cir. 1993).
  7. See Rizzo v. City of Philadelphia, 668 A.2d 236, 238 (Pa. Commw. Ct. 1995).
  8. See Dickson, Sheriff v. Jeff. Co. Bd. of Education, 311 Ky. 781, 786, 225 S.W.2d 672 (1949).

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