Nevada Constitution|Section 3 - State Indebtedness: Limitations and Exceptions

                                                
State Indebtedness: Limitations and Exceptions
The State may contract public debts; but such debts shall never, in the aggregate, exclusive of interest, exceed the sum of two per cent of the assessed valuation of the State, as shown by the reports of the county assessors to the State Controller, except for the purpose of defraying extraordinary expenses, as hereinafter mentioned. Every such debt shall be authorized by law for some purpose or purposes, to be distinctly specified therein; and every such law shall provide for levying an annual tax sufficient to pay the interest semiannually, and the principal within twenty years from the passage of such law, and shall specially appropriate the proceeds of said taxes to the payment of said principal and interest; and such appropriation shall not be repealed nor the taxes postponed or diminished until the principal and interest of said debts shall have been wholly paid. Every contract of indebtedness entered into or assumed by or on behalf of the State, when all its debts and liabilities amount to said sum before mentioned, shall be void and of no effect, except in cases of money borrowed to repel invasion, suppress insurrection, defend the State in time of war, or, if hostilities be threatened, provide for the public defense.
The State, notwithstanding the foregoing limitations, may, pursuant to authority of the Legislature, make and enter into any and all contracts necessary, expedient or advisable for the protection and preservation of any of its property or natural resources, or for the purposes of obtaining the benefits thereof, however arising and whether arising by or through any undertaking or project of the United States or by or through any treaty or compact between the states, or otherwise. The Legislature may from time to time make such appropriations as may be necessary to carry out the obligations of the State under such contracts, and shall levy such tax as may be necessary to pay the same or carry them into effect.

Amended in 1916, 1934 and 1989. The first amendment was proposed and passed by the 1913 Legislature; agreed to and passed by the 1915 Legislature; and approved and ratified by the people at the 1916 General Election. See: Statutes of Nevada 1913, p. 585; Statutes of Nevada 1915, p. 516. The second amendment was proposed and passed by the 1931 Legislature; agreed to and passed by the 1933 Legislature; and approved and ratified by the people at the 1934 General Election. See: Statutes of Nevada 1933, p. 357. The third amendment was proposed and passed by the 1987 Legislature; agreed to and passed by the 1989 Legislature; and approved and ratified by the people at a special election held on May 2, 1989. See: Statutes of Nevada 1987, p. 2422; Statutes of Nevada 1989, p. 2230.