Senate Bill No. 317–Senators Wiener, McGinness, Porter, Townsend, Titus, Amodei, Care, Neal, O’Connell, O’Donnell, Rawson, Rhoads, Schneider and Shaffer

March 5, 1999

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Referred to Committee on Taxation

 

SUMMARY—Provides for reduction in business tax for businesses that provide care for adult dependents of employees. (BDR 32-1100)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to taxation; providing for a reduction in the business tax for businesses that provide or subsidize day care for certain adult dependents of employees; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 364A of NRS is hereby amended by adding thereto

1-2 a new section to read as follows:

1-3 1. To the extent allowed by subsection 3, a business is entitled to a

1-4 credit against the tax imposed by this chapter equal to one-half the

1-5 amount the business expends to provide day care on its premises to

1-6 qualified dependents or to reimburse qualified employees for the cost of

1-7 day care for qualified dependents of the employees at a licensed facility,

1-8 but the amount of the credit may not exceed $35 per day or $5,000 per

1-9 year, whichever is less, for each qualified dependent.

1-10 2. An employee whose qualified dependent receives care provided or

1-11 paid for by the business that employs him shall, if requested, provide

1-12 proof to the business that the dependent needs continuous supervision.

1-13 An employee whose qualified dependent receives care paid for by the

1-14 business that employs him shall provide proof to the business of his

1-15 payments to the licensed facility.

2-1 3. The total credit allowed to a business under this section may not

2-2 exceed 25 percent of the liability of the business for tax under this

2-3 chapter calculated without the allowance.

2-4 4. As used in this section:

2-5 (a) "Licensed facility" means a facility licensed pursuant to chapter

2-6 449 of NRS.

2-7 (b) "Qualified dependent" means a person who:

2-8 (1) Has attained the age of 21 years;

2-9 (2) Needs continuous supervision;

2-10 (3) Resides permanently with a qualified employee; and

2-11 (4) Is related to the qualified employee or his spouse within the

2-12 third degree of consanguinity at common law and for whom the qualified

2-13 employee or his spouse is entitled to claim an exemption for the purpose

2-14 of federal income tax.

2-15 (c) "Qualified employee" means an employee who works 35 hours or

2-16 more per week for the business.

2-17 Sec. 2. NRS 364A.140 is hereby amended to read as follows:

2-18 364A.140 1. A tax is hereby imposed upon the privilege of

2-19 conducting business in this state. The tax for each calendar quarter is due

2-20 on the last day of the quarter and must be paid on or before the last day of

2-21 the month immediately following the quarter on the basis of the total

2-22 number of equivalent full-time employees employed by the business in the

2-23 quarter.

2-24 2. The total number of equivalent full-time employees employed by the

2-25 business in the quarter must be calculated pursuant to NRS 364A.150.

2-26 3. Except as otherwise provided in NRS 364A.152 and 364A.170, and

2-27 section 1 of this act, the amount of tax due per quarter for a business is $25

2-28 for each equivalent full-time employee employed by the business in the

2-29 quarter.

2-30 4. Each business shall file a return on a form prescribed by the

2-31 department with each remittance of the tax. If the payment due is greater

2-32 than $1,000, the payment must be made by direct deposit at a bank in

2-33 which the state has an account, unless the department waives this

2-34 requirement pursuant to regulations adopted by the commission. The return

2-35 must include a statement of the number of equivalent full-time employees

2-36 employed by the business in the preceding quarter and any other

2-37 information the department determines is necessary.

2-38 5. The commission shall adopt regulations concerning the payment of

2-39 the tax imposed pursuant to this section by direct deposit.

3-1 Sec. 3. This act becomes effective upon passage and approval for the

3-2 purpose of adoption by the Nevada tax commission of any regulations

3-3 necessary to implement the provisions of this act and on January 1, 2000,

3-4 for all other purposes.

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