Monday, June 27, 2005 | 11:03 a.m.
CARSON CITY -- The checks from Gov. Kenny Guinn's $300 million tax rebate to vehicle registrants probably won't be ready until September but a number of other bills will take effect Friday to provide tax relief to Nevadans and to provide raises for state employees.
July 1 is the start of the government's fiscal year, so hundreds of measures passed by the 2005 Legislature become effective on that date.
The property tax bills that Nevadans will receive this summer will be capped at 3 percent on homes and 7 percent on businesses. That was the biggest tax relief enacted by the Legislature.
But the tax on gross payroll of businesses will also decline Friday. Instead of staying at 0.65 percent, it will drop to 0.63 percent, a total savings to Nevada businesses of $15 million, officials said. More than 40,000 businesses pay this tax, Chuck Chinnock, director of the state Department of Taxation, said
That payroll tax was imposed at a rate of 0.70 percent to start in 2003 and then dropped to 0.65 in July 2004.
The Legislature also exempted landlords who rent four units or less from paying the $100 annual license fee. Chinnock also said family trusts would not have to pay the fee. There are an estimated 200,000 companies and firms that pay the $100 fee and Chinnock said a notice would be sent to them on their renewal dates about the change in the law.
Banks, entertainment venues and professional employees also are getting some tax relief.
Under the 2003 law, banks had to pay $7,000 a year on each branch they had. The new law says a bank can have one branch in each county that is exempt from the $7,000 tax. Many of the restaurants and bistros that were assessed the 10 percent entertainment tax in 2003 were given exemptions by the 2005 Legislature. The tax will no longer be imposed on an restaurant if it has a strolling musical group or a piano player.
Some counties and cities impose business license taxes on professionals such as engineers and lawyers, even if they are an employee in a business that was also taxed. The new law bars that kind of redundant taxing.
The cost of a new or renewed drivers license decreases by 50 cents to $18.50. And the extra $1.50 cents for renewing a driver's license by mail will go away.
Also, sales taxes will no longer be levied on vehicles sold to non-profit agencies, the sales tax is not charged.
A law giving owners of golf courses a property tax break on their land goes into effect. It says that golf course land cannot be valued at more than $2,860 an acre. In Clark County the value currently runs from $10,000 to $25,000 an acre. Clark County Assessor Mark Schofield said the Nevada Tax Commission still has to develop a formula for taxing the structures and other things on the golf courses.
The Nevada Heritage Association and the Habitat for Humanity International were given property tax exemptions.
Te government is pumping more money into the wallets of some. For instance, the Legislature provided money for a 2 percent pay raise for state workers, university staff and school teachers starting Friday.
In addition, there is an extra 10 percent for those in state government sworn law enforcement positions. And the Legislature gave those in state service who reached the top of their grade some relief. There are presently nine steps allowing a yearly increase of 5 percent. That was raised to 10 steps, helping long-time state workers.
There was $10 million allocated over the next two years to give performance raises or bonuses to school teachers who achieve higher standards or are in areas where there are shortages of teachers. There's an extra 5 percent pay increase for school speech pathologists, at a cost of $1 million over the two years.
Regents of the Nevada System of Higher Education will now be paid $80 per meeting. In the past, they did not receive any salary.
Those who received permanent total disability payments for on-the-job injuries since Jan. 1, 2004, have an annual cost of living raise. The Legislature set aside $500,000 to give those others who did not qualify for the cost of living increase to receive up to $1,200 in a year.
Those Nevada National Guardsmen called to active duty are going to get help. A state fund will reimburse them for the premiums paid for life insurance. Payments will be made for textbooks at the community colleges and universities. And it will provide relief for economic hardships when called to active duty.
Those who work in public service and are called to active duty will qualify for payments between their job in civilian life and their salary in the military.
The Legislature also set aside $175,000 for a pilot program in Clark County for discounted medical services for the uninsured working poor.
Hospitals, when discharging a patient, must provide him or her notice of any discounts or reduced charges that are available and how he or she may qualify.
The homestead exemption was raised from $200,000 to $350,000. This protects the equity in a home in a bankruptcy proceeding.
The Legislature also directed the state Department of Human Resources to apply for a federal Medicaid waiver so more working pregnant women would get pre-natal care; that $100 a month subsidy would be available to help pay for health insurance of low-income workers of small employers and that more people be covered for catastrophic illnesses.
archive
