The legislature's own summary of the bill, or its official long title.
Existing law imposes a payroll tax on: (1) financial institutions and on mining companies subject to the tax on the net proceeds of minerals, with the rate of the payroll tax set at 2 percent of the amount of the wages, as defined under existing law, paid by the financial institution or mining company during each calendar quarter in connection with its business activities; and (2) other business entities, with the…
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Existing law imposes a payroll tax on: (1) financial institutions and on mining companies subject to the tax on the net proceeds of minerals, with the rate of the payroll tax set at 2 percent of the amount of the wages, as defined under existing law, paid by the financial institution or mining company during each calendar quarter in connection with its business activities; and (2) other business entities, with the rate of the payroll tax set at 1.475 percent of the amount of the wages, as defined under existing law but excluding the first $50,000 thereof, paid by the business entity during each calendar quarter in connection with business activities. (NRS 363A.030, 363A.130, 363B.110, 612.190) Existing law provides a credit against the payroll tax equal to an amount which must not exceed the amount of any donation of money which is made by a taxpayer to a scholarship organization that provides grants on behalf of pupils who are members of a household with a household income below a certain level to attend schools in this State, including private schools, chosen by the parents or legal guardians of those pupils. (NRS 363A.130, 363B.110, 388D.270) Existing law requires a scholarship organization, before accepting a donation on behalf of a taxpayer, to apply to the Department of Taxation for approval of the tax credit for the donation. Existing law requires the Department to approve or deny applications in the order in which the applications are received. (NRS 363A.139, 363B.119) Sections 1 and 2 of this bill require applications for approval of the tax credits to be made between May 1 and June 1 of each year and require the Department to review and approve applications on or before July 1 of each year. Sections 1 and 2 require each application to include certain information, including information about the number of pupils meeting certain criteria who have applied to the scholarship organization for a grant for the upcoming school year and the cost to provide a grant to each such pupil. Sections 1 and 2 require the Department to approve applications for the tax credit: (1) first, up to an amount that would allow every scholarship organization to make a grant to every pupil who applied for a grant and received a grant for the immediately preceding school year; (2) second, up to an amount that would allow every scholarship organization to make a grant to every pupil who applied for a grant and is the sibling of a pupil who received a grant for the immediately preceding school year; and (3) finally, up to an amount that would allow every scholarship organization to make a grant to every pupil who applied for a grant and is not in one of the previous two categories. If sufficient tax credits are not available to provide a grant to every pupil in a particular category, sections 1 and 2 require the tax credits to be allocated among the scholarship organizations on a pro rata basis according to the number of pupils in that category who applied to the scholarship organization. Sections 1 and 2 require a scholarship organization to expend the entire amount of any donation for which a taxpayer receives a tax credit not later than 24 months after the date on which the application for the tax credit was approved by the Department. Sections 1 and 2 require a scholarship organization that does not expend the entire amount of a donation within this time period to repay to the Department the tax credit that was allowed for the donation in an amount equal to the amount of the donation that was not expended. Existing law authorizes one or more natural persons to associate to establish a nonprofit corporation under the laws of this State. (Chapter 82 of NRS) Section 2.5 of this bill requires a scholarship organization to be a domestic nonprofit corporation.
