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. (NRS 363A.139, 363B.119) Sections 1 and 2 of this bill require a scholarship organization to expend the entire amount of any donation for which a taxpayer receives a tax credit not later than 18 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.

Statutes affected:
As Introduced: 363A.139, 363B.119
BDR: 363A.139, 363B.119