Assembly Bill No. 543–Committee on Ways and Means

 

April 9, 2003

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Referred to Committee on Ways and Means

 

SUMMARY—Repeals credit against general tax on insurance premiums for certain assessments paid by insurers providing industrial insurance. (BDR 57‑962)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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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; repealing the credit against the general tax on insurance premiums for certain assessments paid by insurers providing industrial insurance; 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 NRS 680B.036 is hereby repealed.

1-2  Sec. 2.  1.  If, on July 1, 2003, an insurer providing industrial

1-3  insurance in this state pursuant to chapters 616A to 617, inclusive,

1-4  of NRS has, pursuant to NRS 680B.036, accumulated credit against

1-5  the premium tax required to be paid by NRS 680B.027 that has not

1-6  been claimed, the insurer may, on or before September 30, 2004, file

1-7  a claim with the Executive Director of the Department of Taxation

1-8  requesting that the accumulated credit be applied to reduce any

1-9  premium tax the insurer is required to pay on or after July 1, 2003,

1-10  and before January 1, 2006. Any accumulated credit against the

1-11  premium tax that is not claimed on or before September 30, 2004,

1-12  pursuant to this section is forfeited and may not be claimed after

1-13  September 30, 2004.

1-14      2.  On or before June 30, 2006, the Executive Director shall, for

1-15  each insurer who filed a claim pursuant to subsection 1, determine

1-16  whether any such credit remained on December 31, 2005, and, if so,

1-17  calculate the remaining credit for each such insurer. Except as

2-1  otherwise provided in this subsection, the Executive Director shall,

2-2  not later than July 31, 2006, prepare for each such remaining credit

2-3  the proper vouchers for a cash refund. If the amount of a remaining

2-4  credit exceeds the amount of premium tax paid by the insurer

2-5  pursuant to NRS 680B.027 during the period of July 1, 1999,

2-6  through December 31, 2005, the Executive Director shall, before

2-7  preparing the voucher, reduce the amount of the refund to an

2-8  amount that equals the amount of tax paid during that period.

2-9  3.  Upon presentation of the proper vouchers, the State

2-10  Controller shall issue his warrants upon the appropriate fund and the

2-11  State Treasurer shall pay the warrants from the money collected

2-12  during Fiscal Year 2005-2006 from premium taxes paid by insurers

2-13  pursuant to NRS 680B.027.

2-14      4.  The Executive Director shall, on or before October 1, 2006,

2-15  submit a report to the Budget Division of the Department of

2-16  Administration and the Fiscal Division of the Legislative Counsel

2-17  Bureau setting forth the amount of money that was refunded

2-18  pursuant to this section.

2-19      Sec. 3.  This act becomes effective on July 1, 2003.

 

2-20  TEXT OF REPEALED SECTION

 

2-21      680B.036  General tax on premiums: Credit for policies of

2-22  industrial insurance. Each insurer providing industrial insurance

2-23  in this state pursuant to chapters 616A to 617, inclusive, of NRS is

2-24  entitled to a credit against the premium tax paid pursuant to NRS

2-25  680B.027 for its policies of industrial insurance in an amount equal

2-26  to the assessment paid by the insurer to the Division of Industrial

2-27  Relations of the Department of Business and Industry pursuant to

2-28  NRS 232.680.

 

2-29  H