Under existing law, financial institutions, certain mining businesses and other employers are required to pay an excise tax (the modified business tax) on the wages paid by them. (NRS 363A.130, 363B.160) Existing law establishes a credit against the modified business tax paid by certain businesses equal to an amount which is approved by the Department of Taxation and 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 which is not more than 300 percent of the federally designated level signifying poverty to attend schools in this State, including private schools, chosen by the parents or legal guardians of those pupils. (NRS 363A.130, 363A.139, 363B.110, 363B.119, 388D.270) Section 1 of this bill: (1) prohibits a scholarship organization from using a donation for which the donor received a tax credit to provide a grant on behalf of a pupil unless the scholarship organization also used a donation for which a donor received a tax credit to provide a grant on behalf of the pupil for the immediately preceding school year at the same school; and (2) requires a scholarship organization to repay the amount of any tax credit approved by the Department if the scholarship organization violates this provision. Section 1 requires a scholarship organization to notify the Department if there ceases to be any pupil on whose behalf the scholarship organization is authorized to make a grant. Sections 2 and 3 of this bill prohibit the Department from approving an application for a tax credit made by a scholarship organization that has provided or is required to provide this notification. Section 1 requires a scholarship organization which, at the time it is required to provide this notification, has not expended all of the donations for which a tax credit was received by a taxpayer to repay to the Department the tax credits received in an amount equal to the amount of the unexpended donations.

Statutes affected:
As Introduced: 388D.270, 363A.139, 363B.119
BDR: 388D.270, 363A.139, 363B.119