IMPACT FEES FOR NEW DEVELOPMENT

Nev. Rev. Stat. 278B
in effect

Nev. Rev. Stat. § 278B.010 Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 278B.020 to 278B.140, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 278B.020 “Capital improvement” defined.

“Capital improvement” means a: 1. Drainage project; 2. Fire station project; 3. Park project; 4. Police station project; 5. Sanitary sewer project; 6. Storm sewer project; 7. Street project; or 8. Water project.

Nev. Rev. Stat. § 278B.030 “Drainage project” defined.

“Drainage project” means any natural and artificial watercourses, water diversion and water storage facilities, including all appurtenances and incidentals necessary for any such facilities.

Nev. Rev. Stat. § 278B.040 “Facility expansion” defined.

“Facility expansion” means the expansion of the capacity of an existing facility associated with a capital improvement to serve new development. The term does not include the repair, maintenance or modernization of a capital improvement or facility.

Nev. Rev. Stat. § 278B.045 “Fire station project” defined.

1. “Fire station project” means one or more of the following portions of a fire station or a fire substation: (a) Office space used for the administration of the fire station or fire substation. (b) Storage areas. (c) Kitchen facilities. (d) Dormitories and locker rooms. (e) Restroom facilities. (f) Training or exercise facilities. (g) Briefing or conference facilities. (h) Facilities and such appurtenances necessary for housing and maintaining vehicles and equipment used for fire fighting or to provide emergency medical services. (i) A facility or portion of a facility that is required in order to comply with standards for occupational safety and health. (j) Parking areas for employees and the public. (k) Landscaping. (l) Utilities. 2. The term does not include: (a) A facility or portion of a facility that is used to replace services for the prevention or suppression of fire that were once provided elsewhere in the city or county. (b) Vehicles and equipment used for fire fighting or to provide emergency medical services. (c) A facility that is used for training firefighters from more than one fire station or fire substation.

Nev. Rev. Stat. § 278B.050 “Impact fee” defined.

“Impact fee” means a charge imposed by a local government on new development to finance the costs of a capital improvement or facility expansion necessitated by and attributable to the new development. The term does not include a tax for the improvement of transportation imposed pursuant to NRS 278.710.

Nev. Rev. Stat. § 278B.060 “Land use assumptions” defined.

“Land use assumptions” means projections of changes in land uses, densities, intensities and population for a specified service area over a period of at least 10 years and in accordance with the master plan of the local government.

Nev. Rev. Stat. § 278B.080 “New development” defined.

“New development” means: 1. The subdivision of land; 2. The construction, reconstruction, redevelopment, conversion, structural alteration, relocation or enlargement of any structure which adds or increases the number of service units; or 3. Any use or extension of the use of land which increases the number of service units.

Nev. Rev. Stat. § 278B.083 “Park project” defined.

“Park project” means real property, turf, trees, irrigation, playground apparatus, playing fields, areas to be used for organized amateur sports, play areas, picnic areas, horseshoe pits, trails, jogging and pedestrian paths, tennis courts, areas designated for the use of skateboards and other recreational equipment or appurtenances which are designed to serve natural persons, families and small groups and which are used for a park that is not larger than 50 acres in area. The term does not include auditoriums, arenas, bandstand and orchestra facilities, bathhouses, clubhouses, community centers that are more than 3,000 square feet in floor area, golf course facilities, greenhouses, swimming pools, zoo facilities or similar recreational facilities.

Nev. Rev. Stat. § 278B.087 “Police station project” defined.

1. “Police station project” means one or more of the following portions of a police station or a police substation: (a) Office space used for the administration of the police station or police substation. (b) Storage areas. (c) Locker rooms. (d) Restroom facilities. (e) Training or exercise facilities. (f) Briefing or conference facilities. (g) Parking areas for employees and the public. (h) Landscaping. (i) Utilities. 2. The term does not include: (a) A facility or portion of a facility that is used to replace police services that were once provided elsewhere in the city or county. (b) Vehicles and equipment used to provide police or administrative services. (c) A facility that is used for training police officers from more than one police station.

Nev. Rev. Stat. § 278B.090 “Sanitary sewer project” defined.

“Sanitary sewer project” means facilities for the collection, interception, transportation, treatment, purification and disposal of sewage, including all appurtenances and incidentals necessary for any such facilities.

Nev. Rev. Stat. § 278B.100 “Service area” defined.

“Service area” means any specified area within the boundaries of a local government in which new development necessitates capital improvements or facility expansions and within which new development is served directly and benefited by the capital improvement or facility expansion as set forth in the capital improvements plan. The term does not include any area that makes up the entire area of a local government, unless the local government is a city whose population is less than 15,000 or a county whose population is less than 15,000.

Nev. Rev. Stat. § 278B.110 “Service unit” defined.

“Service unit” means a standardized measure of consumption, use, generation or discharge which is attributable to an individual unit of development calculated for a particular category of capital improvements or facility expansions.

Nev. Rev. Stat. § 278B.120 “Storm sewer project” defined.

“Storm sewer project” means facilities for the collection, interception, transportation and disposal of rainfall and other storm waters, including all appurtenances and incidentals necessary for any such facilities.

Nev. Rev. Stat. § 278B.130 “Street project” defined.

“Street project” means the arterial or collector streets or roads which have been designated on the streets and highways plan in the master plan adopted by the local government pursuant to NRS 278.220, including all appurtenances, traffic signals and incidentals necessary for any such facilities.

Nev. Rev. Stat. § 278B.140 “Water project” defined.

“Water project” means facilities for the collection, transportation, treatment, purification and distribution of water, including all appurtenances and incidentals necessary for any such facilities.

Nev. Rev. Stat. § 278B.150 Capital improvements advisory committee: Establishment; designation of planning commission; duties.

1. Before imposing an impact fee, the governing body of the local government must establish by resolution a capital improvements advisory committee. The committee must be composed of at least five members. 2. The governing body may designate the planning commission to serve as the capital improvements advisory committee if: (a) The planning commission includes at least one representative of the real estate, development or building industry who is not an officer or employee of the local government; or (b) The governing body appoints a representative of the real estate, development or building industry who is not an officer or employee of the local government to serve as a voting member of the planning commission when the planning commission is meeting as the capital improvements advisory committee. 3. The capital improvements advisory committee shall: (a) Review the land use assumptions and determine whether they are in conformance with the master plan of the local government; (b) Review the capital improvements plan and file written comments; (c) Every 3 years file reports concerning the progress of the local government in carrying out the capital improvements plan; (d) Report to the governing body any perceived inequities in the implementation of the capital improvements plan or the imposition of an impact fee; and (e) Advise the local government of the need to update or revise the land use assumptions, capital improvements plan and ordinance imposing an impact fee.

Nev. Rev. Stat. § 278B.160 Imposition and purpose of impact fee; costs that may be included; property of school district exempt.

1. A local government may by ordinance impose an impact fee in a service area to pay the cost of constructing a capital improvement or facility expansion necessitated by and attributable to new development. Except as otherwise provided in NRS 278B.220 , the cost may include only: (a) The estimated cost of actual construction, including, without limitation, the cost of connecting a capital improvement or facility expansion to a line or facility used to provide water or sewer service; (b) Estimated fees for professional services; (c) The estimated cost to acquire the land; and (d) The fees paid for professional services required for the preparation or revision of a capital improvements plan in anticipation of the imposition of an impact fee. 2. All property owned by a school district is exempt from the requirement of paying impact fees imposed pursuant to this chapter.

Nev. Rev. Stat. § 278B.170 Contents of capital improvements plan.

A capital improvements plan must include, by service area: 1. A description of the existing capital improvements and the costs to upgrade, improve, expand or replace those improvements to meet existing needs or more stringent safety, environmental or regulatory standards. 2. An analysis of the total capacity, level of current usage and commitments for usage of capacity of the existing capital improvements. 3. A description of any part of the capital improvements or facility expansions and the costs necessitated by and attributable to the new development in the service area based on the approved land use assumptions. 4. A table which establishes the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of capital improvements or facility expansions. 5. An equivalency or conversion table which establishes the ratio of a service unit to each type of land use, including but not limited to, residential, commercial and industrial uses. 6. The number of projected service units which are required by the new development within the service area based on the approved land use assumptions. 7. The projected demand for capital improvements or facility expansions required by new service units projected over a period not to exceed 10 years.

Nev. Rev. Stat. § 278B.180 Public hearing to consider land use assumptions; notice of hearing.

1. A local government which wishes to impose an impact fee must set a time at least 20 days thereafter and place for a public hearing to consider the land use assumptions within the designated service area which will be used to develop the capital improvements plan. 2. The notice must be given: (a) By publication of a copy of the notice at least once a week for 2 weeks in a newspaper of general circulation in the jurisdiction of the local government. (b) By posting a copy of the notice at the principal office of the local government and at least three other separate, prominent places within the jurisdiction of the local government. (c) Insofar as practicable, by providing copies of the notice to chambers of commerce and trade associations whose members are owners and officers of businesses that are likely to be affected by the proposed impact fee. 3. Proof of publication must be by affidavit of the publisher. 4. Proof of posting must be by affidavit of the clerk or any deputy posting the notice. 5. The notice must contain: (a) The time, date and location of the hearing; (b) A statement that the purpose of the hearing is to consider the land use assumptions which will be used to develop a capital improvements plan for which an impact fee may be imposed; (c) A map of the service area to which the land assumptions apply; and (d) A statement that any person may appear at the hearing and present evidence for or against the land use assumptions.

Nev. Rev. Stat. § 278B.190 Approval of land use assumptions; development of capital improvements plan; public hearing to consider adoption of plan and imposition of impact fee; notice of hearing.

1. The governing body of the local government shall approve or disapprove the land use assumptions within 30 days after the public hearing. 2. If the governing body approves the land use assumptions, it shall develop or cause to be developed a capital improvements plan. 3. Upon the completion of the capital improvements plan, the governing body shall set a time at least 20 days thereafter and place for a public hearing to consider the adoption of the plan and the imposition of an impact fee. 4. The notice must be given: (a) By publication of a copy of the notice at least once a week for 2 weeks in a newspaper of general circulation in the jurisdiction of the local government. (b) By posting a copy of the notice at the principal office of the local government and at least three other separate, prominent places within the jurisdiction of the local government. 5. Proof of publication must be by affidavit of the publisher. 6. Proof of posting must be by affidavit of the clerk or any deputy posting the notice. 7. The notice must contain: (a) The time, date and location of the hearing; (b) A statement that the purpose of the hearing is to consider the adoption of an impact fee; (c) A map of the service area on which the proposed impact fee will be imposed; (d) The amount of the proposed impact fee for each service unit; and (e) A statement that any person may appear at the hearing and present evidence for or against the land use assumptions.

Nev. Rev. Stat. § 278B.200 Receipt, consideration and waiver of complaints, protests and objections concerning impact fee.

1. On the date and at the place fixed for the hearing any person may, by written complaints, protests or objections, present his or her views concerning the proposed impact fee to the governing body, or present them orally, and the governing body may adjourn the hearing from time to time. 2. After the hearing has been concluded, after all written complaints, protests and objections have been read and considered, and after all persons wishing to be heard in person have been heard, the governing body shall consider the arguments, if any, and any other relevant material put forth, and shall by resolution or ordinance, pass upon the merits of each such complaint, protest or objection. 3. Any complaint, protest or objection to the regularity, validity and correctness of the proceedings and instruments taken, adopted or made before the date of the hearing shall be deemed waived unless presented in writing at the time and in the manner set forth in this section.

Nev. Rev. Stat. § 278B.210 Adoption of capital improvements plan and imposition of impact fee; accounting.

1. The governing body of the local government shall approve or disapprove the adoption of the capital improvements plan and the imposition of an impact fee within 30 days after the public hearing. 2. If the governing body approves the plan and the imposition of the impact fee, it shall adopt an ordinance providing that all the impact fees collected must be deposited in an interest-bearing account which clearly identifies the category of capital improvements or facility expansions within the service area for which the fee was imposed. 3. The records of the account into which the impact fees were deposited must be available for public inspection during ordinary business hours. 4. The interest and income earned on money in the account must be credited to the account.

Nev. Rev. Stat. § 278B.220 Inclusion of costs of financing in amount of impact fee.

Projected interest charges and other finance costs may be included in calculating the amount of impact fees if the money is used for the payment of principal and interest on the portion of the bonds, notes or other obligations issued by or on behalf of the local government to finance the capital improvements or facility expansions identified in the capital improvements plan as being necessitated by and attributable to new development.

Nev. Rev. Stat. § 278B.225 Impact fee to pay cost of street project: Ordinance to cumulatively increase fee on automatic basis to adjust for inflation; time at which such increases become effective.

1. The governing body of a local government which imposes an impact fee to pay the cost of constructing a street project may include a provision in the ordinance imposing the impact fee or adopt a separate ordinance providing that each year in which the governing body does not adopt any revisions to the land use assumptions or capital improvements plan or otherwise increase the impact fee, the current amount of the impact fee is cumulatively increased: (a) By a percentage equal to the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years; or (b) By 4.5 percent, Ê whichever is less. 2. Upon inclusion of a provision in the ordinance imposing the impact fee or the adoption of a separate ordinance authorized by subsection 1, no further action by the governing body is necessary to effectuate the annual increases. 3. Each increase authorized pursuant to this section becomes effective 1 year after: (a) The date upon which the impact fee initially becomes effective; (b) The date the governing body adopts a revised capital improvements plan; or (c) The effective date of any previous increase in the impact fee pursuant to this section, Ê whichever occurs last.

Nev. Rev. Stat. § 278B.230 Maximum impact fee per service unit; time for collection.

1. The impact fee per service unit, excluding the amount of any increase authorized pursuant to NRS 278B.225 , must not exceed the amount determined by dividing the costs of the capital improvements described in subsection 3 of NRS 278B.170 by the total number of projected service units described in subsection 6 of NRS 278B.170 . 2. If the number of new service units projected over a period is less than the total number of new service units shown by the approved land use assumptions at full development of the service area, the maximum impact fee which may be charged per service unit, excluding the amount of any increase authorized pursuant to NRS 278B.225 , must be calculated by dividing the costs of the part of the capital improvements required by the new service units described in subsection 7 of NRS 278B.170 by the projected new service units described in that subsection. 3. The impact fee may be collected at the same time as the fee for issuance of a building permit for the service unit or at the time a certificate of occupancy is issued for the service unit, as specified in the ordinance.

Nev. Rev. Stat. § 278B.240 Credits against impact fees; reimbursement of school district for certain costs.

1. If an owner is required by a local government, as a condition of the approval of the development, to construct or dedicate, or both, a portion of the off-site facilities for which impact fees other than for a park project are imposed, the off-site facilities must be credited against those impact fees. 2. If a school district is required by a local government to construct or dedicate, or both, a portion of the off-site facilities for which impact fees are imposed, the local government shall, upon the request of the school district, reimburse or enter into an agreement to reimburse the school district for the cost of the off-site facilities constructed or dedicated, or both, minus the cost of the off-site facilities immediately adjacent to or providing connection to the school development which would be required by local ordinance in the absence of an ordinance authorizing impact fees. 3. If an owner is required by a local government to: (a) Pay a residential construction tax pursuant to NRS 278.4983 ; (b) Dedicate land pursuant to NRS 278.4979 or otherwise dedicate or improve land, or both, for use as a park; or (c) Construct or dedicate a portion of the off-site facilities for which impact fees for a park project are imposed, Ê the owner is entitled to a credit against the impact fee imposed for the park project for the amount of the residential construction tax paid, the fair market value of the land dedicated, the cost of any improvements to the dedicated land or the cost of the off-site facilities dedicated or constructed, as applicable.

Nev. Rev. Stat. § 278B.250 Conditions upon collection of impact fee.

An impact fee must not be collected unless: 1. Collection is made to pay for a capital improvement or facility expansion which has been identified in the capital improvements plan; 2. The local government agrees to reserve capacity to serve future development and the owner and the local government enter into a written agreement to do so; or 3. The local government agrees that the owner of a new development may construct or finance the capital improvements or facility expansions and: (a) The costs incurred or money advanced will be credited against the impact fees otherwise due from the new development; or (b) It will reimburse the owner for those costs from the impact fees paid from other developments which will use those capital improvements or facility expansions.

Nev. Rev. Stat. § 278B.260 Refund of impact fee.

1. The local government shall, upon the request of an owner of real property for which an impact fee has been collected, refund the impact fee and any interest and income earned on the impact fee by the local government, if: (a) After collecting the fee the local government did not begin construction of the capital improvement or facility expansion for which the fee was collected within 5 years after collecting the fee; or (b) The fee, or any portion thereof, was not spent for the purpose for which it was collected within 10 years after the date on which it was collected. 2. The local government shall, upon the completion of the capital improvement or facility expansion identified in the capital improvements plan or upon expenditure of fees collected from a development, recalculate the impact fee for that development by using the actual costs of the capital improvement or facility expansion or the actual costs of those capital improvements or facility expansions completed and engineering estimates of those capital improvements or facility expansions to be completed within the service area. 3. If the impact fee based on the cost or recalculated cost is less than the impact fee paid, the local government shall refund: (a) The difference if the actual costs are known; or (b) The difference if it exceeds the impact fee paid by more than 10 percent, if estimates are used, Ê and any interest and income earned by the local government on the amount of money refunded. 4. The local government shall refund any impact fee or part thereof, and any interest and income earned by the local government on the amount of money refunded, if it is not spent within 10 years after the date of payment. 5. Each refund must be paid to the owner of the property on record at the time the refund is paid. If a local government paid the impact fee, the refund must be paid to that local government. 6. Any limitation of time established by this section is suspended for any period, not to exceed 1 year, during which this State or the Federal Government takes any action to protect the environment or an endangered species which prohibits, stops or delays the construction of the capital improvement or facility expansion for which an impact fee was collected.

Nev. Rev. Stat. § 278B.270 Collection of additional impact fees.

After the collection of the impact fee no additional impact fees may be collected for the same service unit. If the number of service units increases, the impact fee must be limited to the amount which is attributable to the additional service units.

Nev. Rev. Stat. § 278B.280 Prohibited uses of impact fees.

Impact fees must not be used for: 1. The construction, acquisition or expansion of public facilities or assets other than capital improvements or facility expansions which are included in the capital improvements plan. 2. The repair, operation or maintenance of existing or new capital improvements or facility expansions. 3. The upgrading, expansion or replacement of existing capital improvements or facilities to serve existing development to meet more stringent safety, environmental or regulatory standards. 4. The upgrading, expansion or replacement of existing capital improvements or facilities to provide better service to existing development. 5. The administrative and operating costs of the local government. 6. Except as otherwise provided in NRS 278B.220 , the payments of principal and interest or other finance charges on bonds or other indebtedness.

Nev. Rev. Stat. § 278B.290 Periodic review of capital improvements plan; public hearing to discuss revision; notice of hearing.

1. Each local government which imposes an impact fee shall review and may revise the land use assumptions and capital improvements plan at least once every 3 years. The 3-year period begins upon the adoption of the capital improvements plan by the local government. 2. Upon the completion of the revised capital improvements plan, the local government shall set a time at least 20 days thereafter and place for a public hearing to discuss and review the revision of the plan and whether the revised plan should be adopted. 3. The notice must be given: (a) By publication of a copy of the notice at least once a week for 2 weeks in a newspaper of general circulation in the jurisdiction of the local government. (b) By posting a copy of the notice at the principal office of the local government and at least three other separate, prominent places within the jurisdiction of the local government. 4. Proof of publication must be by affidavit of the publisher. 5. Proof of posting must be by affidavit of the clerk or any deputy posting the notice. 6. The notice must contain: (a) The time, date and location of the hearing; (b) A statement that the purpose of the hearing is to consider the revision of the land use assumptions, capital improvements plan and the imposition of an impact fee; (c) A map of the service area for which the revision is being prepared; and (d) A statement that any person may appear at the hearing and present evidence for or against the revision.

Nev. Rev. Stat. § 278B.300 Adoption of revised capital improvements plan.

The governing body of the local government shall approve or disapprove the adoption of the revised capital improvements plan, the land use assumptions and the imposition of an impact fee within 30 days after the public hearing.

Nev. Rev. Stat. § 278B.310 Development entitled to services and use of facilities upon payment of impact fee.

Any new development for which an impact fee has been paid is entitled to: 1. The permanent use and benefit of the facilities for which the fee was imposed; and 2. Receive immediate service from any existing facility with actual capacity to serve the new service units.

Nev. Rev. Stat. § 278B.320 Seller of property to provide buyer with notice of impact fee; contents of notice; liability of seller.

1. The seller of any property who has actual or constructive notice of the imposition or pending imposition of an impact fee on that property which has not been paid in full shall give written notice of the fee to the buyer before the property is conveyed. 2. The notice must contain: (a) The amount of the impact fee which has not yet been paid, if it has been imposed at the time the notice is given; and (b) The name of the local government which imposed or will impose the impact fee. 3. If the seller fails to give the notice required pursuant to this section, the seller is liable to the buyer for any amount of the impact fee which becomes payable on the property after the conveyance.

Nev. Rev. Stat. § 278B.330 Limitation on time for judicial review of final action, decision or order.

No action or proceeding may be commenced for the purpose of seeking judicial relief or review from or with respect to any final action, decision or order of any committee or other governing body authorized by this chapter unless the action or proceeding is commenced within 25 days after the date of filing of notice of the final action, decision or order with the clerk or secretary of the committee or governing body.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-278B.htmlFetched: 10/4/2026