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Senate Bill No. 571–Senators James, Raggio, O’Donnell, Amodei, Rawson, Jacobsen, McGinness, Porter, Townsend and Washington

 

May 15, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises provisions governing business tax. (BDR 32‑1548)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: Yes.

 

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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 taxation; excluding the first five employees from the computation of the tax on conducting a business; requiring certain businesses to file an annual statement with the department of taxation; 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.130 is hereby amended to read as follows:

1-2    364A.130  1.  Except as otherwise provided in subsection [6,] 7, a

1-3  person shall not conduct a business in this state unless he has a business

1-4  license issued by the department[.] and has filed the annual statement

1-5  required by subsection 2, if applicable.

1-6    2.  On or before August 1 of each year, a person who conducted a

1-7  business in this state during the preceding fiscal year for which no tax

1-8  was paid pursuant to this chapter shall transmit to the department a

1-9  statement of the total number of equivalent full-time employees that were

1-10  employed by the business during each quarter of the fiscal year to which

1-11  the statement applies. The total number of equivalent full-time employees

1-12  must be determined in the manner provided in NRS 364A.150 and

1-13  364A.151. The statement must be made upon a form prescribed by the

1-14  department.

1-15    3.  The application for a business license must:

1-16    (a) Be made upon a form prescribed by the department;

1-17    (b) Set forth the name under which the applicant transacts or intends to

1-18  transact business and the location of his place or places of business;

2-1    (c) Declare the estimated number of employees for the [previous] first

2-2  calendar quarter[;] of operation of the business following the filing of the

2-3  application;

2-4    (d) Be accompanied by a fee of $25; and

2-5    (e) Include any other information that the department deems necessary.

2-6    [3.] 4.  The application for a business license and the statement

2-7  required by subsection 2 must be signed by:

2-8    (a) The owner, if the business is owned by a natural person;

2-9    (b) A member or partner, if the business is owned by an association or

2-10  partnership; or

2-11    (c) An officer or some other person specifically authorized to sign the

2-12  [application,] document, if the business is owned by a corporation.

2-13    [4.] 5.  If the application for a business license or the annual

2-14  statement required by subsection 2 is signed pursuant to paragraph (c) of

2-15  subsection [3,] 4, written evidence of the signer’s authority must be

2-16  attached to the [application.

2-17    5.] document.

2-18    6.  For the purposes of this chapter, a person shall be deemed to

2-19  conduct a business in this state if a business for which the person is

2-20  responsible:

2-21    (a) Is incorporated pursuant to chapter 78 or 78A of NRS;

2-22    (b) Has an office or other base of operations in this state; or

2-23    (c) Pays wages or other remuneration to a natural person who performs

2-24  in this state any of the duties for which he is paid.

2-25    [6.] 7.  A person who takes part in a trade show or convention held in

2-26  this state for a purpose related to the conduct of a business is not required

2-27  to obtain a business license specifically for that event.

2-28    Sec. 2.  NRS 364A.140 is hereby amended to read as follows:

2-29    364A.140  1.  A tax is hereby imposed upon the privilege of

2-30  conducting business in this state. The tax for each calendar quarter is due

2-31  on the last day of the quarter and must be paid on or before the last day of

2-32  the month immediately following the quarter on the basis of the [total]

2-33  taxable number of equivalent full-time employees employed by the

2-34  business in the quarter.

2-35    2.  The [total] taxable number of equivalent full-time employees must

2-36  be determined by subtracting five equivalent full-time employees from the

2-37  total number employed by the business in the quarter [must be] as

2-38  calculated pursuant to NRS 364A.150[.] and 364A.151.

2-39    3.  Except as otherwise provided in NRS 364A.152 and 364A.170, the

2-40  amount of tax due per quarter for a business is $25 for each taxable

2-41  equivalent full-time employee employed by the business in the quarter.

2-42    4.  Each business shall file a return on a form prescribed by the

2-43  department with each remittance of the tax. If the payment due is greater

2-44  than $1,000, the payment must be made by direct deposit at a bank or

2-45  credit union in which the state has an account, unless the department

2-46  waives this requirement pursuant to regulations adopted by the

2-47  commission. The return must include a statement of the number of

2-48  equivalent full-time employees employed by the business in the preceding

2-49  quarter and any other information the department determines is necessary.

3-1    5.  The commission shall adopt regulations concerning the payment of

3-2  the tax imposed pursuant to this section by direct deposit.

3-3    Sec. 3.  Section 1 of Assembly Bill No. 656 of this session is hereby

3-4  amended to read as follows:

3-5     Section 1.  NRS 364A.140 is hereby amended to read as follows:

3-6     364A.140  1.  A tax is hereby imposed upon the privilege of

3-7  conducting business in this state. [The] Except as otherwise provided

3-8  in this section, the tax for each calendar quarter is due on the last day

3-9  of the quarter and must be paid on or before the last day of the month

3-10  immediately following the quarter on the basis of the taxable number

3-11  of equivalent full-time employees employed by the business in the

3-12  quarter.

3-13    2.  If the tax required to be paid by a business for a calendar

3-14  quarter pursuant to subsection 1 is less than $25, the business may

3-15  submit a written request to the department to pay the tax annually

3-16  for each calendar quarter of a fiscal year ending June 30. Upon

3-17  approval of the request, the tax becomes due on the last day of the

3-18  fiscal year and must be paid on or before the last day of July

3-19  immediately following the fiscal year. If a business ceases operation

3-20  before the end of the fiscal year, the tax becomes due on the date on

3-21  which the business ceases its operation and must be paid on or

3-22  before the last day of the month immediately following the calendar

3-23  quarter in which the business ceases its operation. A business may

3-24  continue to pay the tax annually until the department withdraws its

3-25  approval for the annual payment. The department may withdraw its

3-26  approval at any time if it determines that the tax due for any

3-27  calendar quarter is at least $25.

3-28    3.  The taxable number of equivalent full-time employees must be

3-29  determined by subtracting five equivalent full-time employees from

3-30  the total number employed by the business in the quarter as calculated

3-31  pursuant to NRS 364A.150 and 364A.151.

3-32    [3.] 4.  Except as otherwise provided in NRS 364A.152 and

3-33  364A.170, the amount of tax due per quarter for a business is $25 for

3-34  each taxable equivalent full-time employee employed by the business

3-35  in the quarter.

3-36    [4.] 5.  Each business shall file a return on a form prescribed by

3-37  the department with each remittance of the tax. If the payment due is

3-38  greater than $1,000, the payment must be made by direct deposit at a

3-39  bank or credit union in which the state has an account, unless the

3-40  department waives this requirement pursuant to regulations adopted

3-41  by the commission. The return must include [a] :

3-42    (a) If the tax is paid quarterly, a statement of the number of

3-43  equivalent full-time employees employed by the business in the

3-44  preceding quarter and any other information the department

3-45  determines is necessary.

3-46    [5.] (b) If the tax is paid annually, a statement of the number of

3-47  equivalent full-time employees employed by the business for each

3-48  calendar quarter of the preceding fiscal year and any other

3-49  information the department determines is necessary.

4-1     6.  The commission shall adopt regulations concerning the

4-2  payment of the tax imposed pursuant to this section by direct deposit.

4-3    Sec. 4.  1.  This section and section 3 of this act become effective

4-4  upon passage and approval.

4-5    2.  Section 2 of this act becomes effective upon passage and approval

4-6  for purposes of the adoption of regulations by the department of taxation

4-7  and on July 1, 2001, for all other purposes.

4-8    3.  Section 1 of this act becomes effective on July 1, 2002.

 

4-9  H