The tax package: Doubles the Modified Business Tax for large businesses from
0.63 percent of payroll to 1.17 percent, adds .035 percent to the sales tax,
raising the base Nevada sales tax to 6.85 percent, doubles the business
licensing fee to $200 a year for businesses located in Nevada and extends
the automobile registration depreciation schedule dedicating the added money
to the General Fund, among other changes. It is projected to raise $781
million over the biennium.
The Appropriations Act sets out how the majority of General Fund money will
be spent over the biennium. Totals $3.88 billion.
The Authorizations Act spells out how the vast majority of non-General Fund
money, primarily federal money, will be spent. Includes Highway Fund money.
Totals about $12 billion.
K-12 education bill funds the per-pupil Distributive School Account, special
education, remediation programs, the Regional Professional Development
program and Class Size Reduction. Totals $2.799 billion for the biennium.
Public Employee pay bill sets out how public employees will be paid.
Includes an overall 4.6 percent decrease in public worker pay for the coming
biennium. State workers will take the reduction in the form of 12 unpaid
furlough days each year. Unclassified workers also take the reduction.
Public school employees must work out how to achieve the reduction with
their individual school boards. University professional employees must do
the same.
The Public Employee Retirement System changes which reduce the rate workers
accrue retirement benefits from 2.67 percent a year to 2.5 percent and make
other changes to benefits provided existing employees and retirees. The
Public Employee Benefits Program changes, designed to save about $50 million
over the biennium, are expected to be added to the PERS legislation.
The so-called business portal plan creating a "one stop shop" for businesses
coming to Nevada to become registered and licensed. It also imposes the
annual $200 business license fee contained in the tax package on businesses
that are registered with the Secretary of State but do not have a physical
location in Nevada. No hard estimate of the money generated is available.
There are also several other measures containing tax and fee changes on the
governor¹s desk.
