Friday, Nov. 2, 2012 | 3:18 p.m.
Nevada’s plan to raise the tax employers pay to cover jobless claims from an average of 2 percent to 2.25 percent to help repay $800 million borrowed from the federal government met no resistance at a hearing Friday.
The state Employment Security Division held the hearing on the proposal that would increase the annual levy per employee from $538 to $605. The increase would help pay back money borrowed to pay increased claims during the recession.
The Nevada Taxpayers Association, the Las Vegas Chamber of Commerce and the Nevada Manufacturers Association all supported the proposed increase at the hearing on the impact of small businesses.
A public hearing will be conducted Dec. 4 on adopting the increase for 2013.
Andy Flag, who runs a computer repair business in Reno with one employee, said he’s not bothered by the increase, but he complained that the federal government is charging the state interest on the money it borrowed.
This year, the state paid $23.9 million in interest.
Analyst David Schmidt of the Employment Security Division said raising the rate will enable the state to repay the federal government by 2016.