Thursday, May 1, 2003 | 9:39 a.m.
CARSON CITY -- One bill that would raise taxes on companies that write industrial insurance and another that gives higher benefits to some workers injured on the job advanced in the Legislature Wednesday.
The Assembly Ways and Means Committee approved Assembly Bill 543 that would eliminate a tax exemption given to insurance companies that sell workers' compensation policies.
The Senate unanimously passed Assembly Bill 438 that would provide for an annual increase in the compensation paid to workers who suffer permanent total disabilities in on-the-job accidents.
Repealing the tax exemption to insurance companies such as Employers Insurance Company of Nevada would mean at least an extra $12 million a year in revenue for the state.
Those companies that write workers' compensation policies must pay an assessment to the state Division of Industrial Relations for its operation. The insurance firms are now able to offset that assessment against the 3.5 percent state insurance premium tax.
The industrial relations division regulates the workers' compensation insurance system to make sure injured workers receive their benefits.
Assemblyman David Goldwater, D-Las Vegas, said EICON could still claim a "home office" tax exemption that is available to companies based in Nevada. That would offset some of the proposed tax increase.
He said there have not been any complaints from out-of-state companies writing workers' compensation insurance about losing the tax exemption.
Representatives of EICON told the committee last week that scrapping that exemption would mean it would have to raise its premiums to employers to offset the $3.5 million to $4 million a year it would have to pay to the state.
The bill was amended to make it effective in January 2004 rather than in October. It now goes to the floor of the Assembly.
AB438, which goes to the governor for his signature, provides there will be an annual 2.3 percent increase in the award given to those workers who suffered permanent disabilities. The increase would start next January and then continue each year.
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