Assembly Bill No. 656–Committee on Taxation

 

(On Behalf of Department of Taxation)

 

March 26, 2001

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Referred to Committee on Taxation

 

SUMMARY—Authorizes annual payment of business tax under certain circumstances. (BDR 32‑394)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to the business tax; authorizing the annual payment of the tax under certain circumstances; 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.140 is hereby amended to read as follows:

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

1-3  conducting business in this state. [The] Except as otherwise provided in

1-4  this section, the tax for each calendar quarter is due on the last day of the

1-5  quarter and must be paid on or before the last day of the month

1-6  immediately following the quarter on the basis of the total number of

1-7  equivalent full-time employees employed by the business in the quarter.

1-8    2.  If the tax required to be paid by a business for a calendar quarter

1-9  pursuant to subsection 1 is less than $25, the business may submit a

1-10  written request to the department to pay the tax annually for each

1-11  calendar quarter of a fiscal year ending June 30. Upon approval of the

1-12  request, the tax becomes due on the last day of the fiscal year and must

1-13  be paid on or before the last day of July immediately following the fiscal

1-14  year. If a business ceases operation before the end of the fiscal year, the

1-15  tax becomes due on the date on which the business ceases its operation

1-16  and must be paid on or before the last day of the month immediately

1-17  following that date. A business may continue to pay the tax annually

1-18  until the department withdraws its approval for the annual payment. The

1-19  department may withdraw its approval at any time if it determines that

1-20  the tax due for any calendar quarter is at least $25.

2-1    3.  The total number of equivalent full-time employees employed by

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

2-3    [3.] 4.  Except as otherwise provided in NRS 364A.152 and 364A.170,

2-4  the amount of tax due [per quarter] for a business for each calendar

2-5  quarter is $25 for each equivalent full-time employee employed by the

2-6  business in the quarter.

2-7    [4.] 5.  Each business shall file a return on a form prescribed by the

2-8  department with each remittance of the tax. If the payment due is greater

2-9  than $1,000, the payment must be made by direct deposit at a bank or

2-10  credit union in which the state has an account, unless the department

2-11  waives this requirement pursuant to regulations adopted by the

2-12  commission. The return must include [a] :

2-13    (a) If the tax is paid quarterly, a statement of the number of equivalent

2-14  full-time employees employed by the business in the preceding quarter and

2-15  any other information the department determines is necessary.

2-16    [5.] (b) If the tax is paid annually, a statement of the number of

2-17  equivalent full-time employees employed by the business for each

2-18  calendar quarter of the preceding fiscal year and any other information

2-19  the department determines is necessary.

2-20    6.  The commission shall adopt regulations concerning the payment of

2-21  the tax imposed pursuant to this section by direct deposit.

2-22    Sec. 2.  NRS 364A.340 is hereby amended to read as follows:

2-23    364A.340  A person who:

2-24    1.  Is required to be licensed pursuant to chapter 624 of NRS; and

2-25    2.  Contracts with a subcontractor who is required to be licensed

2-26  pursuant to that chapter and to have a business license and pay the tax

2-27  imposed by this chapter,

2-28  shall require proof that the subcontractor has a business license and has

2-29  paid the tax imposed by this chapter before commencing payments to the

2-30  subcontractor. For the purposes of this section, a subcontractor proves that

2-31  he has a business license and has paid the tax imposed by this chapter by

2-32  presenting a receipt for or other evidence that he made the last [quarterly]

2-33  payment required pursuant to this chapter.

2-34    Sec. 3.  This act becomes effective on July 1, 2002.

 

2-35  H