Senate Bill No. 403–Senator Washington

March 12, 1999

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Referred to Committee on Taxation

 

SUMMARY—Eliminates provision authorizing reduction in business tax for business that provides child care for certain employees with low income. (BDR 32-6)

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; eliminating the provision that authorizes a reduction in the business tax for a business that provides child care for certain employees with low income; 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. NRS 364A.150 is hereby amended to read as follows:

1-2 364A.150 1. The total number of equivalent full-time employees

1-3 employed by a business in a quarter must be calculated by dividing the total

1-4 number of hours all employees have worked during the quarter by 468.

1-5 2. To determine the total number of hours all employees have worked

1-6 during the quarter, the business must add the total number of hours worked

1-7 by full-time employees based in this state during the quarter to the total

1-8 number of hours worked by part-time employees based in this state during

1-9 the quarter and to the total number of hours worked in this state by

1-10 employees described in subsection 6. A "full-time employee" is a person

1-11 who is employed to work at least 36 hours per week. All other employees

1-12 are part-time employees. An occasional reduction in the number of hours

1-13 actually worked in any week by a particular employee, as the result of

1-14 sickness, vacation or other compensated absence, does not affect his status

1-15 for the purposes of this section if his regular hours of work are 36 or more

1-16 per week. All hours for which a part-time employee is paid must be

1-17 included.

2-1 3. [Except as otherwise provided in subsection 7, the] The total

2-2 number of hours worked by full-time employees of a business during the

2-3 quarter may be calculated by:

2-4 (a) Determining from the records of the business the number of hours

2-5 each full-time employee has worked during the quarter up to a maximum of

2-6 468 hours per quarter and totaling the results; or

2-7 (b) Multiplying 7.2 hours by the number of days each full-time

2-8 employee was employed by the business up to a maximum of 65 days per

2-9 quarter and totaling the results.

2-10 4. [Except as otherwise provided in subsection 7, the] The total

2-11 number of hours worked by part-time employees of a business during the

2-12 quarter must be calculated by determining from the records of the business

2-13 the number of hours each part-time employee has worked during the

2-14 quarter and totaling the results.

2-15 5. The total number of hours all employees have worked during the

2-16 quarter must be calculated excluding the hours worked by a sole proprietor

2-17 or one natural person in any unincorporated business, who shall be deemed

2-18 the owner of the business rather than an employee.

2-19 6. To determine the total number of hours all employees have worked

2-20 during the quarter, in the case of a business which employs a natural person

2-21 at a base or business location outside Nevada, but directs that person to

2-22 perform at least some of his duties in Nevada, the calculation must include

2-23 the total number of hours actually worked by that person in Nevada during

2-24 the quarter. To calculate the number of hours worked in Nevada, the

2-25 formula in paragraph (b) of subsection 3 must be used for full-time

2-26 employees, and the formula in subsection 4 must be used for part-time

2-27 employees.

2-28 [7. Except as otherwise provided in subsection 8, if a business employs

2-29 in a calendar quarter a person whose monthly income for that calendar

2-30 quarter is 150 percent or less of the federally designated level signifying

2-31 poverty, the business may exclude the total number of hours which the

2-32 employee worked during that calendar quarter in calculating the total

2-33 number of hours worked by employees of the business during the quarter if

2-34 the business provided to the employee for the whole calendar quarter:

2-35 (a) Free child care for the children of the employee at an on-site child

2-36 care facility; or

2-37 (b) One or more vouchers for use by the employee to pay the total cost

2-38 of child care for the calendar quarter at a licensed child care facility that is

2-39 within a reasonable distance from the business.

2-40 8. The number of hours excluded pursuant to subsection 7 must not

2-41 reduce the total tax liability of the business by more than 50 percent.

3-1 9. As used in this section, the term "on-site child care facility" has the

3-2 meaning ascribed to it in NRS 432A.0275.]

3-3 Sec. 2. This act becomes effective on July 1, 1999.

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