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).

1-1 Section 1. Chapter 360 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 1. A person who intends to locate or expand a business in this state

1-4 may apply to the commission on economic development for a partial

1-5 abatement of one or more of the taxes imposed on the new or expanded

1-6 business pursuant to chapter 361, 364A or 374 of NRS.

1-7 2. The commission on economic development shall approve an

1-8 application for a partial abatement if the commission makes the

1-9 following determinations:

1-10 (a) The business is consistent with:

1-11 (1) The state plan for industrial development and diversification

1-12 that is developed by the commission pursuant to NRS 231.067; and

1-13 (2) Any guidelines adopted pursuant to the state plan.

1-14 (b) The applicant has executed an agreement with the commission

1-15 which states that the business will, after the date on which a certificate of

2-1 eligibility for the abatement is issued pursuant to subsection 5, continue

2-2 in operation in this state for a period specified by the commission, which

2-3 must be at least 5 years but not more than 15 years, and will continue to

2-4 meet the eligibility requirements set forth in this subsection. The

2-5 agreement must bind the successors in interest of the business for the

2-6 specified period.

2-7 (c) The business is registered pursuant to the laws of this state or the

2-8 applicant commits to obtain a valid business license and all other permits

2-9 required by the county, city or town in which the business operates.

2-10 (d) Except as otherwise provided in NRS 361.0687, if the business is a

2-11 new business in a county whose population is 50,000 or more, the

2-12 business meets at least two of the following requirements:

2-13 (1) The business will have 75 or more full-time employees on the

2-14 payroll of the business by the fourth quarter that it is in operation.

2-15 (2) Establishing the business will require the business to make a

2-16 capital investment of at least $1,000,000 in this state.

2-17 (3) The average hourly wage that will be paid by the new business

2-18 to its employees in this state is at least 100 percent of the average

2-19 statewide industrial hourly wage as established by the employment

2-20 security division of the department of employment, training and

2-21 rehabilitation on July 1 of each fiscal year and:

2-22 (I) The business will provide and pay for a health insurance plan

2-23 for all employees that includes an option for health insurance coverage

2-24 for dependents of the employees; and

2-25 (II) The cost to the business for the benefits the business provides

2-26 to its employees in this state will meet the minimum requirements for

2-27 benefits established by the commission by regulation pursuant to

2-28 subsection 9.

2-29 (e) Except as otherwise provided in NRS 361.0687, if the business is a

2-30 new business in a county whose population is less than 50,000, the

2-31 business meets at least two of the following requirements:

2-32 (1) The business will have 25 or more full-time employees on the

2-33 payroll of the business by the fourth quarter that it is in operation.

2-34 (2) Establishing the business will require the business to make a

2-35 capital investment of at least $250,000 in this state.

2-36 (3) The average hourly wage that will be paid by the new business

2-37 to its employees in this state is at least 100 percent of the average

2-38 statewide industrial hourly wage as established by the employment

2-39 security division of the department of employment, training and

2-40 rehabilitation on July 1 of each fiscal year and:

2-41 (I) The business will provide and pay for a health insurance plan

2-42 for all employees that includes an option for health insurance coverage

2-43 for dependents of the employees; and

3-1 (II) The cost to the business for the benefits the business provides

3-2 to its employees in this state will meet the minimum requirements for

3-3 benefits established by the commission by regulation pursuant to

3-4 subsection 9.

3-5 (f) If the business is an existing business, the business meets at least

3-6 two of the following requirements:

3-7 (1) The business will increase the number of employees on its

3-8 payroll by 10 percent more than it employed in the immediately

3-9 preceding fiscal year or by six employees, whichever is greater.

3-10 (2) The business will expand by making a capital investment in this

3-11 state in an amount equal to at least 20 percent of the value of the

3-12 tangible property possessed by the business in the immediately preceding

3-13 fiscal year. The determination of the value of the tangible property

3-14 possessed by the business in the immediately preceding fiscal year must

3-15 be made by the:

3-16 (I) County assessor of the county in which the business will

3-17 expand, if the business is locally assessed; or

3-18 (II) Department, if the business is centrally assessed.

3-19 (3) The average hourly wage that will be paid by the existing

3-20 business to its new employees in this state is at least 100 percent of the

3-21 average statewide industrial hourly wage as established by the

3-22 employment security division of the department of employment, training

3-23 and rehabilitation on July 1 of each fiscal year and:

3-24 (I) The business will provide and pay for a health insurance plan

3-25 for all new employees that includes an option for health insurance

3-26 coverage for dependents of the employees; and

3-27 (II) The cost to the business for the benefits the business provides

3-28 to its new employees in this state will meet the minimum requirements for

3-29 benefits established by the commission by regulation pursuant to

3-30 subsection 9.

3-31 3. Notwithstanding the provisions of subsection 2, the commission on

3-32 economic development may:

3-33 (a) Approve an application for a partial abatement by a business that

3-34 does not meet the requirements set forth in paragraph (d), (e) or (f) of

3-35 subsection 2;

3-36 (b) Make the requirements set forth in paragraph (d), (e) or (f) of

3-37 subsection 2 more stringent; or

3-38 (c) Add additional requirements that a business must meet to qualify

3-39 for a partial abatement,

3-40 if the commission determines that such action is necessary.

3-41 4. Before approving an application for a partial abatement pursuant

3-42 to this section, the commission on economic development shall hold at

3-43 least one public hearing in the county, city or town in which the new

4-1 business will be located or the existing business will expand. The

4-2 commission shall, at least 10 days before the hearing, provide notice of

4-3 the hearing to the governing body of the county, city or town in which the

4-4 new business will be located or the existing business will expand. The

4-5 notice must set forth the date, time and location of the hearing.

4-6 5. If the commission on economic development approves an

4-7 application for a partial abatement, the commission shall immediately

4-8 forward a certificate of eligibility for the abatement to:

4-9 (a) The department;

4-10 (b) The Nevada tax commission; and

4-11 (c) If the partial abatement is from the property tax imposed pursuant

4-12 to chapter 361 of NRS, the county treasurer.

4-13 6. An applicant for a partial abatement pursuant to this section or an

4-14 existing business whose partial abatement is in effect shall, upon the

4-15 request of the executive director of the commission on economic

4-16 development, furnish the executive director with copies of all records

4-17 necessary to verify that the applicant meets the requirements of

4-18 subsection 2.

4-19 7. If a business whose partial abatement has been approved pursuant

4-20 to this section and is in effect ceases:

4-21 (a) To meet the requirements set forth in subsection 2; or

4-22 (b) Operation before the time specified in the agreement described in

4-23 paragraph (b) of subsection 2,

4-24 the business shall repay to the department or, if the partial abatement

4-25 was from the property tax imposed pursuant to chapter 361 of NRS, to

4-26 the county treasurer, the amount of the exemption that was allowed

4-27 pursuant to this section before the failure of the business to comply

4-28 unless the Nevada tax commission determines that the business has

4-29 substantially complied with the requirements of this section. The business

4-30 is also required to pay interest on the amount due at the rate most

4-31 recently established pursuant to NRS 99.040 for each month, or portion

4-32 thereof, from the last day of the month following the period for which the

4-33 payment would have been made had the partial abatement not been

4-34 approved until the date of payment of the tax.

4-35 8. A county treasurer:

4-36 (a) Shall deposit any money that he receives pursuant to subsection 7

4-37 in one or more of the funds established by a local government of the

4-38 county pursuant to NRS 354.611, 354.6113 or 354.6115; and

4-39 (b) May use the money deposited pursuant to paragraph (a) only for

4-40 the purposes authorized by NRS 354.611, 354.6113 and 354.6115.

4-41 9. The commission on economic development:

4-42 (a) Shall adopt regulations regarding:

5-1 (1) The minimum level of benefits that a business must provide to

5-2 its employees if the business is going to use benefits paid to employees as

5-3 a basis to qualify for a partial abatement; and

5-4 (2) The notice that must be provided pursuant to subsection 4.

5-5 (b) May adopt such other regulations as the commission on economic

5-6 development determines to be necessary to carry out the provisions of this

5-7 section.

5-8 10. The Nevada tax commission:

5-9 (a) Shall adopt regulations regarding:

5-10 (1) The capital investment that a new business must make to meet

5-11 the requirement set forth in paragraph (d) or (e) of subsection 2; and

5-12 (2) Any security that a business is required to post to qualify for a

5-13 partial abatement pursuant to this section.

5-14 (b) May adopt such other regulations as the Nevada tax commission

5-15 determines to be necessary to carry out the provisions of this section.

5-16 11. An applicant for an abatement who is aggrieved by a final

5-17 decision of the commission on economic development may petition for

5-18 judicial review in the manner provided in chapter 233B of NRS.

5-19 Sec. 2. NRS 361.0687 is hereby amended to read as follows:

5-20 361.0687 1. A person who intends to locate or expand a business in

5-41 employees.

6-1 (e) The cost to the business for the benefits the business provides to its

6-2 employees in this state will meet the minimum requirements for benefits

6-3 established by the commission pursuant to subsection 8.

6-4 (f) A capital investment for personal property will be made to locate or

6-5 expand the business in Nevada which is at least:

6-6 (1) If the personal property directly related to the establishment of the

6-7 business in this state is primarily located in a county whose population:

6-8 (I) Is 100,000 or more, $50,000,000.

6-9 (II) Is less than 100,000, $20,000,000.

6-10 (2) If the personal property directly related to the expansion of the

6-11 business is primarily located in a county whose population:

6-12 (I) Is 100,000 or more, $10,000,000.

6-13 (II) Is less than 100,000, $4,000,000.

6-14 (g) The business will create at least the following number of new, full-

6-15 time and permanent jobs in the State of Nevada by the fourth quarter that it

6-16 is in operation:

6-17 (1) If a new business will be primarily located in a county whose

6-18 population:

6-19 (I) Is 100,000 or more, 100 jobs.

6-20 (II) Is less than 100,000, 35 jobs.

6-21 (2) If an expanded business will be primarily located in a county

6-22 whose population:

6-23 (I) Is 100,000 or more, and the business has at least 100 employees

6-24 in this state, 20 jobs. An expanded business primarily located in such a

6-25 county that has less than 100 employees is not eligible for a partial

6-26 abatement pursuant to this section.

6-27 (II) Is less than 100,000, and the business has at least 35 employees

6-28 in this state, 10 jobs. An expanded business primarily located in such a

6-29 county that has less than 35 employees is not eligible for a partial

6-30 abatement pursuant to this section.

6-31 (h) For the expansion of a business primarily located in a county whose

6-32 population:

6-33 (1) Is 100,000 or more, the book value of the assets of the business in

6-34 this state is at least $20,000,000.

6-35 (2) Is less than 100,000, the book value of the assets of the business

6-36 in this state is at least $5,000,000.

6-37 (i) The business is registered pursuant to the laws of this state or the

6-38 applicant commits to obtain a valid business license and all other permits

6-39 required by the county, city or town in which the business operates.

6-40 (j) The proposed abatement has been approved by the governing body of

6-41 the appropriate affected local government as determined pursuant to the

6-42 regulations adopted pursuant to subsection 8. In determining whether to

6-43 approve a proposed abatement, the governing body shall consider whether

7-1 the taxes to be paid by the business are sufficient to pay for any investment

7-2 required to be made by the local government for services associated with

7-3 the relocation or expansion of the business, including, without limitation,

7-4 costs related to the construction and maintenance of roads, sewer and water

7-5 services, fire and police protection and the construction and maintenance of

7-6 schools.

7-7 (k) The applicant has executed an agreement with the commission which

7-8 states that the business will continue in operation in Nevada for 10 or more

7-9 years after the date on which a certificate of eligibility for the abatement is

7-10 issued pursuant to subsection 5 and will continue to meet the eligibility

7-11 requirements contained in this subsection. The agreement must bind the

7-12 successors in interest of the business for the required period.

7-13 3. An applicant shall, upon the request of the executive director of the

7-14 commission on economic development, furnish him with copies of all

7-15 records necessary to verify that the applicant meets the requirements of

7-16 subsection 2.

7-17 4. The percentage of the abatement must be 50 percent of the taxes

7-18 payable each year.

7-19 5. If an application for a partial abatement is approved, the commission

7-20 on economic development shall immediately forward a certificate of

7-21 eligibility for the abatement to:

7-22 (a) The department; and

7-23 (b) The county assessor of each county in which personal property

7-24 directly related to the establishment or expansion of the business will be

7-25 located.

7-26 6. Upon receipt by the department of the certificate of eligibility, the

7-27 taxpayer is eligible for an abatement from the tax imposed by this chapter

7-28 for 10 years:

7-29 (a) For the expansion of a business, on all personal property of the

7-30 business that is located in Nevada and directly related to the expansion of

7-31 the business in this state.

7-32 (b) For a new business, on all personal property of the business that is

7-33 located in Nevada and directly related to the establishment of the business

7-34 in this state.

7-35 7. If a business for which an abatement has been approved is not

7-36 maintained in this state in accordance with the agreement required in

7-37 subsection 2, for at least 10 years after the commission on economic

7-38 development approved the abatement, the person who applied for the

7-39 abatement shall repay to the county treasurer or treasurers who would have

7-40 received the taxes but for the abatement the total amount of all taxes that

7-41 were abated pursuant to this section. The person who applied for the

7-42 abatement shall pay interest on the amount due at the rate of 10 percent per

7-43 annum for each month, or portion thereof, from the last day of the month

8-1 following the period for which the payment would have been made if the

8-2 abatement had not been granted until the date of the actual payment of the

8-3 tax.

8-4 8. A county treasurer:

8-5 (a) Shall deposit any money that he receives pursuant to subsection 7 in

8-6 one or more of the funds established by a local government of the county

8-7 pursuant to NRS 354.611, 354.6113 or 354.6115; and

8-8 (b) May use the money deposited pursuant to paragraph (a) only for the

8-9 purposes authorized by NRS 354.611, 354.6113 and 354.6115.

8-10 9. The commission on economic development shall adopt regulations

8-11 necessary to carry out the provisions of this section. The regulations must

8-12 include, but not be limited to:

8-13 (a) A method for determining the appropriate affected local government

8-14 to approve a proposed abatement and the procedure for obtaining such

8-15 approval; and

8-16 (b) Minimum requirements for benefits that a business applying for a

8-17 partial abatement must offer to its employees to be approved for the partial

8-18 abatement.

8-19 10. The department shall adopt regulations concerning how county

8-20 assessors shall administer partial abatements approved pursuant to this

8-21 section.

8-22 11. An applicant for an abatement who is aggrieved by a final decision

8-23 of the commission on economic development may petition for judicial

8-24 review in the manner provided in chapter 233B of NRS.]

8-25 2. For a business to qualify pursuant to section 1 of this act for a

8-26 partial abatement from the taxes imposed by this chapter, the

8-27 commission on economic development must determine that, in addition

8-28 to meeting the other requirements set forth in subsection 2 of that

8-29 section:

8-30 (a) If the business is a new business in a county whose population is

8-31 50,000 or more:

8-32 (1) The business will make a capital investment in the county of at

8-33 least $50,000,000 if the business is an industrial or manufacturing

8-34 business or at least $5,000,000 if the business is not an industrial or

8-35 manufacturing business; and

8-36 (2) The average hourly wage that will be paid by the new business

8-37 to its employees in this state is at least 100 percent of the average

8-38 statewide industrial hourly wage as established by the employment

8-39 security division of the department of employment, training and

8-40 rehabilitation on July 1 of each fiscal year.

8-41 (b) If the business is a new business in a county whose population is

8-42 less than 50,000:

9-1 (1) The business will make a capital investment in the county of at

9-2 least $5,000,000 if the business is an industrial or manufacturing

9-3 business or at least $500,000 if the business is not an industrial or

9-4 manufacturing business; and

9-5 (2) The average hourly wage that will be paid by the new business

9-6 to its employees in this state is at least 100 percent of the average

9-7 statewide industrial hourly wage as established by the employment

9-8 security division of the department of employment, training and

9-9 rehabilitation on July 1 of each fiscal year.

9-10 3. If a partial abatement from the taxes imposed by this chapter is

9-11 approved by the commission on economic development pursuant to

9-12 section 1 of this act:

9-13 (a) The partial abatement must:

9-14 (1) Be for a duration of at least 1 year but not more than 10 years;

9-15 (2) Not exceed 50 percent of the taxes payable by a business each

9-16 year pursuant to this chapter; and

9-17 (3) Be administered and carried out in the manner set forth in

9-18 section 1 of this act.

9-19 (b) The executive director of the commission on economic

9-20 development shall notify the county assessor of the county in which the

9-21 business is located of the approval of the partial abatement, including,

9-22 without limitation, the duration and percentage of the partial abatement

9-23 that the commission granted. The executive director shall, on or before

9-24 April 15 of each year, advise the county assessor of each county in which

9-25 a business qualified for a partial abatement in the immediately preceding

9-26 fiscal year as to whether the business is still eligible for the partial

9-27 abatement.

9-28 Sec. 3. This act becomes effective upon passage and approval.