Finally,Sections section11 18.5and 12 of this bill providesalso thatprohibit the amendatoryOffice provisionsfrom ofawarding thiscertain billpartial doabatements notof applytaxes toimposed anyon abatementa grantednew or anyexpanding applicationbusiness forif anthe applicant previously received such a partial abatement filedfor beforelocating Julyor 1,expanding 2019.the business in this State.

EXPLANATIONAssembly –Amendment MatterNo. in bolded italics is new;

matter621 between brackets [omitted material] is material to beAssembly omitted.Bill No.

400 Page 4 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

SectionsSection 1-4.1.

(Deleted[NRS by231.053 amendment.)is -hereby 80thamended Sessionto (2019)read –as 2follows: – Sec.

231.053 After considering any advice and recommendations of the Board, the Executive Director:

1.

Shall direct and supervise the administrative and technical activities of the Office.

2.

Shall develop and may periodically revise a State Plan for Economic Development, which:

(a) Must include a statement of:

(1) New industries which have the potential to be developed in this State;

(2) The strengths and weaknesses of this State for business incubation;

(3) The competitive advantages and weaknesses of this State;

(4) The manner in which this State can leverage its competitive advantages and address its competitive weaknesses;

(5) A strategy to encourage the creation and expansion of businesses in this State and the relocation of businesses to this State;

and (6) Potential partners for the implementation of the strategy, including, without limitation, the Federal Government, local governments, local and regional organizations for economic development, chambers of commerce, and private businesses, investors and nonprofit entities;

and (b) Must not include provisions for the granting of any abatement, partial abatement or exemption from taxes or any other incentive for economic development to a person [who will] :

(1) Who will locate or expand a business in this State that is subject to the tax imposed pursuant to NRS 362.130 or the gaming license fees imposed by the provisi(2) For which any abatement or partial abatement has been approved by the Office and is in effect.

3.

Shall develop criteria for the designation of regional development authorities pursuant to subsection 4.

4.

Shall designate as many regional development authorities for each region of this State as the Executive Director determines to be appropriate to implement the State Plan for Economic Development.

In designating regional development authorities, the Executive Director must consult with local governmental entities affected by the designation.

The Executive Director may, if he or she determines that such action would aid in the implementation of the State Plan for Economic Development, remove the designation of any regional development authority previously designated pursuant to this section and declare void any contract between the Office and that regional development authority.

Shall establish procedures for entering into contracts with regional development authorities to provide services to aid, promote and encourage the economic development of this State.

6.

May apply for and accept any gift, donation, bequest, grant or other source of money to carry out the provisions of NRS 231.020 to 231.139, inclusive, and 231.1555 to 231.1597, inclusive.

7.

May adopt such regulations as may be necessary to carry out the provisions of NRS 231.020 to 231.139, inclusive, and 231.1555 to 231.1597, inclusive.

8.

In a manner consistent with the laws of this State, may reorganize the programs of economic development in this State to further the State Plan for Economic Development.

If, in the opinion of the Executive Director, changes to the Assembly Amendment No.

621 to Assembly Bill No.

400 Page 5 laws of this State are necessary to implement the economic development strategy for this State, the Executive Director must recommend the changes to the Governor and the Legislature.] (Deleted by amendment.) Sec.

2.

[NRS 231.0685 is hereby amended to read as follows:

231.0685 The Office shall, on or before January 15 of each odd-numbered year, prepare and submit to the Director of the Legislative Counsel Bureau for transmission to the Legislature a report concerning the abatements from taxation that the Office approved pursuant to NRS 274.310, [274.320,] 274.330, 360.750, 360.752, 360.753 or 360.754.

The report must set forth, for each abatement from taxation that the Office approved during the fiscal years which are 3 fiscal years and 6 fiscal years immediately preceding the submission of the report:

1.

The dollar amount of the abatement;

2.

The location of the business for which the abatement was approved;

3.

The value of infrastructure included as an incentive for the business;

4.

If applicable, the number of employees that the business for which the abatement was approved employs or will employ;

5.

Whether the business for which the abatement was approved is a new business or an existing business;

6.

The economic sector in which the business operates, the number of primary jobs related to the business, the average wage paid to employees of the business and the assessed values of personal property and real property of the business;

7.

Any information concerning whether the business for which the abatement was approved participates or has participated in a program of workforce development, as defined in NRS 231.146, implemented by the Executive Director;

and 8.

Any other information that the Office determines to be useful.] (Deleted by amendment.) Sec.

3.

[NRS 231A.170 is hereby amended to read as follows:

231A.170 1.

For the purpose of NRS 231A.110, a qualified active low- income community business is limited to those businesses meeting the Small Business Administration size eligibility standards established in 13 C.F.R.

§§ 121.101 to 201, inclusive, at the time the qualified low-income community investment is made.

A business must be considered a qualified active low-income community business for the duration of the qualified community development entity’s investment in, or loan to, the business if the entity reasonably expects, at the time it makes the investment or loan, that the business will continue to satisfy the requirements for being a qualified active low-income community business, other than the Small Business Administration size standards, throughout the entire period of the investment or loan.

2.

Except as otherwise provided in this subsection, the businesses limited by this section do not include any business that derives or projects to derive 15 percent or more of its annual revenue from the rental or sale of real estate.

This exclusion does not apply to a business that is controlled by, or under common control with, another business if the second business:

(a) Does not derive or project to derive 15 percent or more of its annual revenue from the rental or sale of real estate;

and (b) Is the primary tenant of the real estate leased from the first business.

3.

The following businesses are not qualified active low-income community businesses:

(a) A business that has received an abatement from taxation pursuant to NRS 274.310, [274.320,] 274.330, 360.750, 360.753 or 360.754.

(b) An entity that has liability for insurance premium tax on a premium tax report filed pursuant to NRS 680B.030.

Assembly Amendment No.

621 to Assembly Bill No.

400 Page 6 (c) A business engaged in banking or lending.

(d) A massage parlor.

(e) A bath house.

(f) A tanning salon.

(g) A country club.

(h) A business operating under a nonrestricted license for gaming issued pursuant to NRS 463.170.

(i) A liquor store.

(j) A golf course.] (Deleted by amendment.) Sec.

4.

[NRS 266.267 is hereby amended to read as follows:

266.267 [1.] A city council shall not enter into a lease of real property owned by the city for a term of 3 years or longer or enter into a contract for the sale of real property until after the property has been appraised pursuant to NRS 268.059.

Except as otherwise provided in this section, paragraph (a) of subsection 1 of NRS 268.050 and subsection 3 of NRS 496.080:

[(a)] 1.

The sale or lease of real property must be made in the manner required pursuant to NRS 268.059, 268.061 and 268.062;

and [(b)] 2.

A lease or sale must be made at or above the highest appraised value of the real property as determined pursuant to the appraisal conducted pursuant to NRS 268.059.

[2.

The city council may sell or lease real property for less than its appraised value to any person who maintains or intends to maintain a business within the boundaries of the city which is eligible pursuant to NRS 374.357 for an abatement from the sales and use taxes imposed pursuant to chapter 374 of NRS.]] (Deleted by amendment.) Sec.

5.

or Part(d) 597,An enterprise community established pursuant to 24 C.F.R.

Part 597,  may submit a request to the governing body of the county, city or town in which the business would operate for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of the taxes imposed pursuant to chapter 361 [or 374] of NRS [.] or the local sales and use taxes.

for(a) theEvaluating economicwhether development of the county, city or town.ficial (b) Issuing a certificate of endorsement for an application for such an abatement thatwould is found to be beneficial for the economic development of the county, city or town.

(b) Issuing a certificate of endorsement for an application for such an abatement that is found to be beneficial for the economic development of the county, city or town.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the applicationAssembly toAmendment theNo. Office of Economic Development.

621 to Assembly Bill No.

400 Page 7 application to the Office of Economic Development.

and - 80th Session (2019) – 3 – (2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.

(I) Commence operation and continue in operation in the historically underutilized business zone, as defined in 15 U.S.C.

§ 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

Part 570 or enterprise community established pursuant to 24 C.F.R.

§ 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

Part 570 or enterprise community established pursuant to 24 C.F.R.

and (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] county treasurer of the county in which the business will be located.

- 80th Session (2019) – 4 – (a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

(b) If the abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] partial abatement must not exceed 75 percent of the taxes on personal property payable by a business each year pursuant to that chapter.

(a) To meet the eligibility requirements for the partial aba(b)abatement; Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3, Assembly Amendment No.

621 to Assembly Bill No.

400 Page 8  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

decision8. of the Office of Economic Development may petition foral judicial review in the manner provided in chapter 233B of NRS.

An applicant for an abatement who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

Part 597, - 80th Session (2019) – 5 –  may submit a request to the governing body of the county, city or town in which the business would operate for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of the taxes imposed pursuant to chapter 361 [or 374] of NRS [.] or the local sales and use taxes.

The notice must set forth the date, time and location of the hearing at which the governing body will subsection,consider “localwhether salesto andendorse use taxes” means the taxesapplication. imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(1) The State Plan for Economic Development developed by the Administrator pursuant to subsection 2 of NRS 231.053;

andyand (2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.

(b)Assembly TheAmendment applicantNo. has executed an agreement with the Office which states:

621 to Assembly Bill No.

400 Page 9 (b) The applicant has executed an agreement with the Office which states:

§ - 80th Session (2019) – 6 – 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

Part 570 or enterprise community established pursuant to 24 C.F.R.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and alleall other permits required by the county, city or town in which the business will operate.

and (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] county treasurer of the county in which the business will be located.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to the chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

- 80th Session (2019) – 7 – 6.

274.320Assembly 1.Amendment No.

621 to Assembly Bill No.

400 Page 10 274.320 1.

(a) A historically underutilized business zone, as defined in 15 U.S.C.

§ 632;orically632; underutilized business zone, as defined in 15 (b) A redevelopment area created pursuant to chapter 279 of NRS;

(b) A redevelopment area created pursuant to chapter 279 of NRS;

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic - 80th Session (2019) – 8 – Development.

(1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

$250,000Assembly inAmendment capitalNo. equipment that will be retained at the location of the business in the historically underutilized business zone, as defined in 15 U.S.C.

621 to Assembly Bill No.

400 Page 11 (d) The applicant invested or commits to invest a minimum of $250,000 in capital equipment that will be retained at the location of the business in the historically underutilized business zone, as defined in 15 U.S.C.

- 80th Session (2019) – 9 – 5.

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

If a business whose partial abatement has been approved pur(a)pursuant Toto meetthis thesection eligibilityand requirementsis forin theeffect partialceases: abatement;

(a) To meet the eligibility requirements for the partial abatement;

decision8. of the Office of Economic Development may petition foral judicial review in the manner provided in chapter 233B of NRS.

An applicant for an abatement who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

Part 597, - 80th Session (2019) – 10 –  may submit a request to the governing body of the county, city or town in which the business operates for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of the local sales and use taxes imposed on capital equipment .[pursuant to chapter 374 of NRS.] The governing body of the county, city or town shall provide notice of the request to the board of trustees of the school district in which the business operates.

[pursuant to chapter 374 of NRS.] The governing body of the county, city or town shall provide notice ofAssembly theAmendment requestNo. to the board of trustees of the school district in which the business operates.

The621 noticeto mustAssembly setBill forthNo. the date, time and location of the hearing at which the governing body will consider “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

400 Page 12 must set forth the date, time and location of the hearing at which the governing body will consider whether to endorse the application.

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(1) The State Plan for Economic Development developed by the Administrator pursuant to subsection 2 of NRS 231.053;

andyand (2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.

§ 632, redevelopment area - 80th Session (2019) – 11 – created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and alleall other permits required by the county, city or town in which the business operates.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3, Assembly theAmendment businessNo. shall repay to the Department of Taxation the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax with the requirements of this section.

621 to Assembly Bill No.

400 Page 13  the business shall repay to the Department of Taxation the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

- 80th Session (2019) – 12 – 7.

Part 597 in this State may submit a request to the governing body of the county, city or town in which the business is located for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of the taxes imposed pursuant to chapter 361 [or 374] of NRS [.] or the local sales and use taxes.

governing3. body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development.

- 80th Session (2019) – 13 – (1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

(I)Assembly ContinueAmendment inNo. operation in the enterprise community for a period specified by the Office, which must be at least 5 years;

621 to Assembly Bill No.

400 Page 14 (I) Continue in operation in the enterprise community for a period specified by the Office, which must be at least 5 years;

 The agreement must bind successors in interest of the business for the specified period.

successors in interest of the business (c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the business operates.

and (b) Immediately forward a certificate of eligibility for the abateme(1)abatement Theto: Department of Taxation;

(1) The Department of Taxation;

and (3) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] county treasurer of the county in which the business is located.

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

(b) If the abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] partial abatement must not exceed 75 percent of the taxes on personal property payable by a business each year pursuant to that chapter.

- 80th Session (2019) – 14 – 6.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada TaxoreTax the Commission determines that the business has substantially complied with the requirements of this section.

(a)Assembly ShallAmendment adoptNo. regulations relating to the minimum level of benefits that a business must provide to its employees to qualify for an abatement pursuant to this section.

621 to Assembly Bill No.

400 Page 15 (a) Shall adopt regulations relating to the minimum level of benefits that a business must provide to its employees to qualify for an abatement pursuant to this section.

who:.9.

As used in this section, “dislocated worker” means a person (a)who: Has been terminated, laid off or received notice of termination or layoff from employment;

(a) Has been terminated, laid off or received notice of termination or layoff from employment;

(d) Has been self-employed but is no longer receiving an income from self-employmentself- employment because of general economic conditions in the community or natural disaster;

- 80th Session (2019) – 15 – Sec.

The governing body of the county, city or town shall provide notice of the request to the board of trustees of the school district in which the business operates.

The notice mustfmust set forth the date, time and location of the hearing at which the governing body will consider whether to endorse the application.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic makesDevelopment. the following determinations:ve the application if the Office (a) The business is consistent with:

The Office shall approve the application if the Office makes the following determinations:

(a) The business is consistent with:

(1)Assembly TheAmendment dateNo. on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

and621 - 80th Session (2019) – 16 – (2) That the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsectionAssembly 4:Bill No.

400 Page 16 (1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

and (2) That the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 4:

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and alleall other permits required by the county, city or town in which the business operates.

(3)(2) IfThe theNevada partialTax abatementCommission; is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer of the county in which the business is located.

and (3) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] county treasurer of the county in which the business is located.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the - 80th Session (2019) – 17 – failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not6.not been approved until the date of payment of the tax.

The6. Office of Economic Development:nt of the tax.

The Office of Economic Development:

(b)Assembly MayAmendment adoptNo. such other regulations as the Office determines to be necessary or advisable to carry out the provisions of this section.

621 to Assembly Bill No.

400 Page 17 (b) May adopt such other regulations as the Office determines to be necessary or advisable to carry out the provisions of this section.

(d) Has been self-employed but is no longer receiving an income from self-employmentself- employment because of general economic conditions in the(e)the Iscommunity currently unemployed and unable to return to a previous industry or occupation.natural disaster;

Secs.or (e) Is currently unemployed and unable to return to a previous industry or occupation.

9Sec. and 10.

(Deleted9. by amendment.) Sec.

[NRS 353.207 is hereby amended to read as follows:

353.207 1.

The Chief shall:

(a) Require the Office of Economic Development and the Office of Energy each periodically to conduct an analysis of the relative costs and benefits of each incentive for economic development previously approved by the respective office and in effect during the immediately preceding 2 fiscal years, including, without limitation, any abatement of taxes approved by the Office of Economic Development pursuant to NRS 274.310, [274.320,] 274.330, 360.750, 360.752, 360.753, 360.754, 360.890, 360.950, 361.0687 [, 374.357] or 701A.210, to assist the Governor and the Legislature in determining whether the economic benefits of the incentive have accomplished the purposes of the statute pursuant to which the incentive was approved and warrant additional incentives of that kind;

(b) Require each office to report in writing to the Chief the results of the analysis conducted by the office pursuant to paragraph (a);

and (c) Establish a schedule for performing and reporting the results of the analysis required by paragraph (a) which ensures that the results of the analysis reported by each office are included in the proposed budget prepared pursuant to NRS 353.205, as required by that section.

2.

Each report prepared for the Chief pursuant to this section is a public record and is open to inspection pursuant to the provisions of NRS 239.010.] (Deleted by amendment.) Sec.

10.

[NRS 360.225 is hereby amended to read as follows:

360.225 1.

During the course of an investigation undertaken pursuant to NRS 360.130 of a person claiming:

(a) A partial abatement of property taxes pursuant to NRS 361.0687;

(b) An exemption from taxes pursuant to NRS 363B.120;

(c) A deferral of the payment of taxes on the sale of eligible property pursuant to NRS 372.397 or 374.402;

(d) [An abatement of taxes on the gross receipts from the sale, storage, use or other consumption of eligible machinery or equipment pursuant to NRS 374.357;

(e)] A partial abatement of taxes pursuant to NRS 360.752 on or before June 30, 2023;

[(f)] (e) A partial abatement of taxes pursuant to NRS 360.754 on or before December 31, 2056;

[(g)] (f) A partial abatement of taxes pursuant to NRS 360.890 on or before June 30, 2032;

or Assembly Amendment No.

621 to Assembly Bill No.

400 Page 18 [(h)] (g) An abatement of taxes pursuant to NRS 360.950 on or before June 30, 2036,  the Department shall investigate whether the person meets the eligibility requirements for the abatement, partial abatement, exemption or deferral that the person is claiming.

2.

If the Department finds that the person does not meet the eligibility requirements for the abatement, exemption or deferral which the person is claiming, the Department shall report its findings to the Office of Economic Development and take any other necessary actions.] (Deleted by amendment.) Sec.

A person who intends to locate or expand a business in this State may apply to the Office of Economic Development pursuant to this section for a partial abatement of one or more of the taxes imposed on the [newnew or expanded]expanded :business pursuant to chapter 361 [,] or 363B [or 374] of NRS [.] or the local sales and use taxes.

(a)As Newused in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business pursuantis to chapterbe 361located ,or 363Bexpanded, orexcept 374the oftaxes NRS.imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(b) Expanded business pursuant to chapter 361 or 363B of NRS or the local sales and use taxes.

As used in this paragraph, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property - 80th Session (2019) – 18 – sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is to be located or expanded, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(1) The State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053;

andomicand Development (2) Any guidelines adopted by the Executive Director of the Office to implement the State Plan for Economic Development.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all businessother operates.iredpermits required by the county, city or town in which the (d) Except as otherwise provided in subsection 4 or 5, the average hourly wage that will be paid by the business tooperates. its new employees in this State is at least 100 percent of the average statewide hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

(e)(d) TheExcept businessas will,otherwise byprovided thein eighthsubsection calendar4 quarteror following5, the calendaraverage quarterhourly inwage whichthat thewill abatementbe becomespaid effective,by offerthe abusiness healthto insuranceits plannew for all employees thatin includesthis anState optionis forat healthleast insurance100 coveragepercent for dependents of the employees,average andstatewide thehourly healthwage careas benefitsestablished by the businessEmployment offersSecurity toDivision itsof employeesthe inDepartment thisof StateEmployment, -Training 80thand SessionRehabilitation (2019)on –July 191 –of willeach meetfiscal theyear. minimum requirements for health care benefits established by the Office.

(e) The business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, offer a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees, and the health care benefits the business offers to its employees Assembly Amendment No.

621 to Assembly Bill No.

400 Page 19 in this State will meet the minimum requirements for health care benefits established by the Office.

(1) The business will have 50 or more full-time employees on the payroll of the business by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

(1) The business will have 10 or more full-time employees on the payroll of the business by the eighth calendar quartereesquarter following the calendar quarter in which the abatement becomes effective who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

- 80th Session (2019) – 20 – (h) If the business is an existing business, the business meets at least one of the following requirements:

(I) Except as otherwise provided in sub-subparagraph (II), a county whose population is 100,000 or more or a city whose population is 60,000 or more, the business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by twenty-fiveiscaltwenty-five year in employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective;

or (II) A county whose population is less than 100,000, an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or a city whose population is less than 60,000, the business will, by the eighth calendar quarterAssembly followingAmendment theNo. calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by six employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after (2) The business will expand by making a capital investment in this State, not later than the date which is 2 years after the date on which the abatement becomes effective, in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective, and the capital investment will be in capital assets that will be retained at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

621 to Assembly Bill No.

400 Page 20 quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by six employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

(2) The business will expand by making a capital investment in this State, not later than the date which is 2 years after the date on which the abatement becomes effective, in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective, and the capital investment will be in capital assets that will be retained at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

- 80th Session (2019) – 21 – (I) County assessor of the county in which the business will expand, if the business is locally assessed;

Notwithstanding the provisions of subsection 2, the Office of (a)Economic ShallDevelopment: not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the abatement from any affected county, school district, city or town.

(a) Shall not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the abatement from any affected county, school district, city or town.

(a) The applicant intends to locate or expand in a county in which the rate of unemployment is 7 percent or more and theythe in average hourly wage that will be paid by the applicant to its new employees in this State is less than 70 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

(b) The applicant intends to locate or expand in a county in which the rate of unemployment is less than 7 percent and the average hourly wage that will be paid by the applicant to its new employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security DivisionAssembly ofAmendment theNo. Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

-621 80th Session (2019) – 22 – (c) The applicant intends to locateAssembly inBill aNo. county but has already received a partial abatement pursuant to this section for locating that business in that county.

400 Page 21 Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

(c) The applicant intends to locate in a county but has already received a partial abatement pursuant to this section for locating that business in that county.

(e) The applicant has changed the name or identity of the business to evade the provisions of paragraphs (c) or (d).

Notwithstanding any other provision of law, if the Office of Economic Development approves an application for a partial abatement pursuant to this section, in determining the types of taxes imposed on a new or expanded business for which the partial abatement will be approved and the amount of the partial abatement:

(b) If the new or expanded business is located in a county in which the rate of unemployment is less than 7 percent and the average hourly wage that will be paid by the business to its new employees in this State is less than 100 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year, the Office shall not:

As used in this subparagraph, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of - 80th Session (2019) – 23 – tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the new or expanded business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.] 6.

(c)(b) IfThe theNevada partialTax abatementCommission; is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer.

and (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer.

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the ExecutiveAssembly DirectorAmendment ofNo. the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

621 to Assembly Bill No.

400 Page 22 Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this subsection,section. pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

and - 80th Session (2019) – 24 – (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115.

(1) The capital investment that a new business must make to meet the requirement set forth in paragraph (f) or (g) of subsection 2;

andheand requirement set forth in paragraph (f) or (g) of subsection (2) Any security that a business is required to post to qualify for a partial abatement pursuant to this section.

A person who intends to locate or expand a business in this State may apply to the Office of Economic Development pursuant to this section for a partial abatement of one or more of the taxes imposed on the [newnew or expanded]expanded :business pursuant to chapter 361 [,] or 363B [or 374] of NRS [.] or the local sales and use taxes.

(b)As Expandedused in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business pursuantis to chapterbe 361located or 363Bexpanded, offexcept NRS.the Assembly Amendment No.

NRS621 orto theAssembly localBill salesNo. and use taxes.

As400 usedPage in23 this paragraph, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is to be located or expanded, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

- 80th Session (2019) – 25 – (1) The State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053;

(2) State the date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

(e) The business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, offer a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees, and the health care benefits the business offers to its employees in this State will meet the minimum requirements for health care benefits established by the Office.

(1) The business will have 75 or more full-time employees on the payroll of the business by the eighth calendar quarter - 80th Session (2019) – 26 – following the calendar quarter in which the abatement becomes effective who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

(g) Except as otherwise provided in NRS 361.0687, if the business is a new business in a county whose population is less than 100,000, in an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of AgriculturesAgriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or in a city whoseAssembly populationAmendment isNo. less than 60,000, the business meets at least one of the following requirements:

621 to Assembly Bill No.

400 Page 24 whose population is less than 60,000, the business meets at least one of the following requirements:

(2) The business will expand by making a capital investment in this State in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the immediatelyueimmediately of preceding fiscal year.

- 80th Session (2019) – 27 – 3.

(b) Shall consider the level of health care benefits provided by the business to its employees, the projected economic impact of the business and the projected tax revenue of the business after ded(c)deducting May,projected ifrevenue from the Officeabated determinestaxes. that such action is necessary:

(c) May, if the Office determines that such action is necessary:

(b) The applicant intends to locate or expand in a county in averagewhich hourly wage that will be paid by the applicantrate toof itsunemployment new employees in this State is less than 857 percent ofand the average statewide hourly wage,wage asthat establishedwill bybe thepaid EmploymentAssembly SecurityAmendment DivisionNo. of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

621 to Assembly Bill No.

400 Page 25 by the applicant to its new employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

(e)5. The applicant has changed the name or identity of the business to evade the provisions of paragraph (c) or (d).

- 80th Session (2019) – 28 – 5.

(a) If the new or expanded business is located in a county in which the rate of unemployment is 7 percent or more and the average hourly wage that will be paid by the business to its new employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training andtand Security Rehabilitation on July 1 of each fiscal year, the Office shall not:

(2) Approve an abatement of the taxes imposed pursuant to taxchapter otherwise363B dueof pursuantNRS towhich NRSexceeds 363B.110.t25 percent of the amount of [(3)tax Approveotherwise andue abatement of the taxes imposed pursuant to chapter 374 of NRS which363B.110. exceeds the local sales and use taxes.

[(3) Approve an abatement of the taxes imposed pursuant to chapter 374 of NRS which exceeds the local sales and use taxes.

- 80th Session (2019) – 29 – (a) The Department;

7.Assembly Amendment No.

An621 applicant for a partial abatement pursuant to thisAssembly sectionBill orNo. an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the req8.reIf a business whose partial abatement has been approved pursuant to this section and is in effect ceases:

400 Page 26 7.

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

8.

If a business whose partial abatement has been approved pursuant to this section and is in effect ceases:

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

9.

A county treasurer:

- 80th Session (2019) – 30 – (1) The capital investment that a new business must make to meet the requirement set forth in paragraph (f) or (g) of subsection 2;

An applicant for a partial abatement pursuant to this section who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manneromicmanner provided in chapter 233B of NRS.

and (b)Assembly TheAmendment localNo. sales and use taxes imposed on the purchase of tangible personal property used to operate, manufacture, service, maintain, test, repair, overhaul or assemble an aircraft or any component of an aircraft.

and621 exceptto asAssembly otherwiseBill providedNo. in subsections 3 and 4, the Office of Economic Development shall approve an application for a partial abatement if the Office makes the following determinations:

400 Page 27 (b) The local sales and use taxes imposed on the purchase of tangible personal property used to operate, manufacture, service, maintain, test, repair, overhaul or assemble an aircraft or any component of an aircraft.

2.

Notwithstanding the provisions of any law to the contrary and except as otherwise provided in subsections 3 and 4, the Office of Economic Development shall approve an application for a partial abatement if the Office makes the following determinations:

(3) States that the business will, after the date on which a certificate of eligibility for the partial abatement is issued pursuant to subsection 5, continue in operation in this State for a period - 80th Session (2019) – 31 – specified by the Office, which must be not less than 5 years, and will continue to meet the eligibility requirements set forth in this subsection;

(c) The business owns, operates, manufactures, services, maintains, tests, repairs, overhauls or assembles an aircraft or any component of an aircraft;

or (2) An existing business, that it will increase its number of full-time employees on the payroll of the business in this State by 3 percent or three employees, whichever is greater, within 1 year after receiving its certificate of eligibility for a partial abatement;

[and]and (g) The business meets at least one of the following requirements:

(3) The business develops, refines or owns a patent or other intellectual property, or has been issued a type certificate by the - 80th Session (2019) – 32 – Federal Aviation Administration pursuant to 14 C.F.R.

Part 2121. [.] ;

and (h) If the application is for the partial abatement of the taxes imposed by the Local School Support Tax Law, the application has been approved by a vote of at least two-thirds of the members of the Board of Economic Development created by NRS 231.033.

(a)Assembly ShallAmendment approveNo. or deny an application submitted pursuant to this section and notify the applicant of its decision not later than 45 day(b) Must not:ving the application.

621 to Assembly Bill No.

400 Page 28 (a) Shall approve or deny an application submitted pursuant to this section and notify the applicant of its decision not later than 45 days after receiving the application.

(b) Must not:

or (2) Approve a partial abatement for any applicant for a period of more than [20]20 10 years.

or6. an existing business whose partial abatement is in effect shall,on upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

or (b) Operation before the time specified in the agreement described in paragraph (a) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from personal property taxes, to the appropriate - 80th Session (2019) – 33 – county treasurer, the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement required to be repaid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

TheAssembly documentAmendment mustNo. clearly state that the purchaser is only required to pay sales and use taxes imposed in this State at the rate of 2 percent.

621 to Assembly Bill No.

400 Page 29 The document must clearly state that the purchaser is only required to pay sales and use taxes imposed in this State at the rate of 2 percent.

12.

As used in this section:

(c) “Full-time employee” means a person who is in a permanent position of employment and works an average of 30 hours per week - 80th Session (2019) – 34 – during the applicable period set forth in subparagraph (3) of paragraph (a) of subsection 2.

(d) “Local sales and use taxes” means any taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in any political subdivision of this State, except the taxes imposed by the Sales and Use Tax Act .[.] and the Local School Support Tax Law.

(e) “Personal property taxes” means any taxes levied on personal property by the State or a local government pursuant to chaSec.chapter 361 of NRS.

Sec.

A person who intends to locate or expand a data center in this State may apply to the Office of Economic Development pursuant to this section for a partial abatement of one or more of the taxes imposed on the new or expanded data center pursuant to chapter 361 or[or 374374] of NRS.NRS [.] or the local sales and use taxes.

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the data center is to be located or expanded, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(2) State the date on which the abatement becomes effective, as agreed to by the applicant and the Office of Economic OfficeDevelopment, received the application;arlier than the date on which themust (3)not Statebe thatearlier thethan data center will, after the date on which the abatement becomes effective, continue in operation in this State for a period specified by the Office ofreceived Economic Development, which must be at least 10 years, and will continue to meet the eligibilityapplication; requirements set forth in this subsection;

(3) State that the data center will, after the date on which the abatement becomes effective, continue in operation in this State for a period specified by the Office of Economic Development, which must be at least 10 years, and will continue to meet the eligibility requirements set forth in this subsection;

(c)Assembly TheAmendment applicantNo. is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by each county, city or town in which the data center operates.

-621 80thto SessionAssembly (2019)Bill –No. 35 – (d) If the applicant is seeking a partial abatement for a period of not more than 10 years, the applicant meets the following requirements:

(1)400 ThePage data30 center(c) will,The byapplicant not later than the date that is 5registered yearspursuant afterto the datelaws onof whichthis theState abatement becomes effective, have or have added 10 or more full-time employees who are residents of Nevada and who will be employed at the dataapplicant centercommits and will continue to employobtain 10a orvalid morebusiness full-timelicense employees who are residents of Nevada at the data center until at least the date which is yea(2) Establishing or expanding the data center will require the data center or any combination of the data center and oneall orother morepermits colocatedrequired businessesby to make in each countycounty, incity thisor Statetown in which the data center isoperates. located, by not later than the date which is 5 years after the date on which the abatement becomes effective, a cumulative capital investment of at least $25,000,000 in capital assets that will be used or located at the data center.

(d) If the applicant is seeking a partial abatement for a period of not more than 10 years, the applicant meets the following requirements:

(1) The data center will, by not later than the date that is 5 years after the date on which the abatement becomes effective, have or have added 10 or more full-time employees who are residents of Nevada and who will be employed at the data center and will continue to employ 10 or more full-time employees who are residents of Nevada at the data center until at least the date which is 10 years after the date on which the abatement becomes effective.

(2) Establishing or expanding the data center will require the data center or any combination of the data center and one or more colocated businesses to make in each county in this State in which the data center is located, by not later than the date which is 5 years after the date on which the abatement becomes effective, a cumulative capital investment of at least $25,000,000 in capital assets that will be used or located at the data center.

(I) The data center will, by not later than the date which is 2 years after the date on which the abatement becomes effective, provide a health insurance plan for all employees employed at the data center that includes an option for health insurance coverage for dependents of the employees;

and (II) The health care benefits provided to employees employed at the data center will meet the minimum requirements for Developmenthealth bycare regulationbenefits pursuantestablished to subsection 12.onomic (4) At least 50 percent of the employees engaged in the construction of the data center are residents of Nevada, unless waived by the Executive Director of the Office of Economic Development uponby proofregulation satisfactorypursuant to thesubsection Executive12. Director of the Office of Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

(e)(4) IfAt least 50 percent of the applicantemployees isengaged seekingin athe partialconstruction abatementof forthe adata periodcenter are residents of yearsNevada, orunless morewaived butby notthe moreExecutive thanDirector 20of years,the Office of Economic Development upon proof satisfactory to the applicantExecutive meetsDirector of the followingOffice requirements:of Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

(1)(e) TheIf data center will, by not later than the dateapplicant that is 5seeking yearsa afterpartial the date on which the abatement becomesfor effective,a haveperiod -of 80th10 Sessionyears (2019) – 36 – or have added 50 or more full-timebut employeesnot who are residents of Nevada and who will be employed at the data center and will continue to employ 50 or more full-timethan employees20 whoyears, are residents of Nevada at the dataapplicant centermeets until at least the datefollowing whichrequirements: is years after the date on which the abatement becomes effective.

(2)(1) EstablishingThe ordata expandingcenter thewill, databy centernot willlater requirethan the datadate centerthat oris any5 combinationyears ofafter the datadate centeron andwhich onethe abatement becomes effective, have or have added 50 or more colocatedfull-time businessesemployees towho makeare inresidents eachof countyNevada inand thiswho Statewill inbe whichemployed at the data center isand located,will bycontinue notto lateremploy than50 theor datemore whichfull-time isemployees 5who yearsare cumulativeresidents capitalof investmentNevada ofat the data center until at least $100,000,000the indate capitalwhich assetsis that20 willyears beafter usedthe ordate locatedon atwhich the dataabatement center.becomes effective.

(2) Establishing or expanding the data center will require the data center or any combination of the data center and one or more colocated businesses to make in each county in this State in which the data center is located, by not later than the date which is 5 years after the date on which the abatement becomes effective, a cumulative capital investment of at least $100,000,000 in capital assets that will be used or located at the data center.

(I) The data center will, by not later than the date which is 2 years after the date on which the abatement becomes effective, provide a health insurance plan forAssembly allAmendment employeesNo. employed at the data center that includes an option for health insurance coverage for dependents of the employees;

621 to Assembly Bill No.

400 Page 31 for all employees employed at the data center that includes an option for health insurance coverage for dependents of the employees;

(4) At least 50 percent of the employees engaged in the construction of the data center are residents of Nevada, unless waived by the Executive Director of the Office of Economic Development upon proof satisfactory to the Executive Director of the Office of Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

(g) If the applicant is seeking a partial abatement of the taxes imposed by the Local School Support Tax Law, the application has been approved by a vote of at least two-thirds of the members of the Board of Economic Development created by NRS 231.033.

- 80th Session (2019) – 37 – (a) Shall not consider an application for a partial abatement pursuant to this section unless the Office of Economic Development has requested a letter of acknowledgment of the request for the abatement from each affected county, school district, city or town.

(c) May, if the Office of Economic Development determines that su(1)such Approveaction anis applicationnecessary: for a partial abatement pursuant to this section by a data center that does not meet the requirements set forth in paragraph (d) or (e) of subsection 2;

(1) Approve an application for a partial abatement pursuant to this section by a data center that does not meet the requirements set forth in paragraph (d) or (e) of subsection 2;

and (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the [The] county treasurer of each county in which the data center is or will be located.

If the Office of Economic Development approves an application for a partial abatement pursuant to this section, the Office may also approve a partial abatement of taxes for each colocated business that enters into a contract to use or occupy, for a period of at least 2 years, all or a portion of the new or expandedrexpanded a data center.

If a colocated business ceases to meet the requirements set forth in this subsection, the colocated business shall repay the amountAssembly ofAmendment theNo. abatement that was allowed in the - 80th Session (2019) – 38 – same manner in which a data center is required by subsection 7 to repay the Department or a county treasurer.

621 to Assembly Bill No.

400 Page 32 amount of the abatement that was allowed in the same manner in which a data center is required by subsection 7 to repay the Department or a county treasurer.

A data center shall provide the Executive Director of the Office and the Department with a list of the colocated businesses that are qualified to receive a partial abatement pursuant to this subsection and shalldshall notify the Executive Director within 30 days after any change to the list.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the data center shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the abatement that was allowed pursuant to this section before the failure of the data center to comply unless the Nevada Tax CommissionailureCommission of the determines that the data center has substantially complied with the requirements of this section.

(a) Shall deposit any money that he or she receives pursuant to subsection 5 or 7 in one or more of the funds established by a local - 80th Session (2019) – 39 – government of the county pursuant to NRS 354.6113 or 354.6115;

For an employee to be considered a resident of Nevada for following documents in the personnelpurposes file of thethis employee:thesection, (a)a Adata copycenter ofmust themaintain current and valid Nevada driver’s license of the employeefollowing ordocuments ain current and valid identification card for the employeepersonnel issuedfile byof the Departmentemployee: of Motor Vehicles;

(a) A copy of the current and valid Nevada driver’s license of the employee or a current and valid identification card for the employee issued by the Department of Motor Vehicles;

(c)Assembly ProofAmendment thatNo. the employee is a full-time employee;

and621 (d) Proof that the employee is covered by the health insurance plan which the data center is required to provideAssembly pursuantBill toNo. sub- subparagraph (I) of subparagraph (3) of paragraph (d) of subsection or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of subsection 2.

400 Page 33 (c) Proof that the employee is a full-time employee;

and (d) Proof that the employee is covered by the health insurance plan which the data center is required to provide pursuant to sub-subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 2 or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of subsection 2.

For the purpose of obtaining from the Executive Director of the Office of Economic Development any waiver of the requirements set forth in subparagraph (4) of paragraph (d) of subsection 2 or subparagraph (4) of paragraph (e) of subsection 2, a data center must submit to the Executive Director of the Office of Economic Development written documentation of the efforts to meet the requirements and documented proof that an insufficient number of Nevada residents is available and qualified foricientfor employment.

- 80th Session (2019) – 40 – (a) Shall adopt regulations regarding:

As used in this section, unless the context otherwise req(a)requires: “Colocated business” means a person who enters into a contract with a data center that is qualified to receive an abatement pursuant to this section to use or occupy all or part of the data center.

(a) “Colocated business” means a person who enters into a contract with a data center that is qualified to receive an abatement pursuant to this section to use or occupy all or part of the data center.

(Deleted[NRS by360.757 amendment.)is Sec.hereby amended to read as follows:

360.757 1.

The Office of Economic Development shall not take any action on an application for any abatement of taxes pursuant to NRS 274.310, [274.320,] 274.330, 360.750, 360.753 or 360.754 or any other specific statute unless the Office:

(a) Takes that action at a public meeting conducted for that purpose;

and (b) At least 30 days before the meeting, provides notice of the application to:

(1) The governing body of the county, the board of trustees of the school district and the governing body of the city or town, if any, in which the pertinent business is or will be located;

Assembly Amendment No.

621 to Assembly Bill No.

400 Page 34 (2) The governing body of any other political subdivision that could be affected by the abatement;

and (3) The general public.

2.

The notice required by this section must set forth the date, time and location of the meeting at which the Office of Economic Development will consider the application.

3.

The Office of Economic Development shall adopt regulations relating to the notice required by this section.] (Deleted by amendment.) Sec.

360.884 “Local sales and use taxes” means only the taxes imposed pursuant to chapters [374,]374, 377, 377A and 377B of NRS imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the county in which the qualified project is located.

The term does not include any taxes imposed by the Sales and Use Tax Act.Act [.] and the Local School Support Tax Law.

360.920 “Local sales and use taxes” means only the taxes imposed pursuant to [chapterschapters 374 and]and chapter[chapter] 377 of NRS on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the county in which the qualified project is located.

The term does not include the taxes imposed by the Sales and Use Tax Act.Act [.] and the Local School Support Tax Law.

-Sec. 80th Session (2019) – 41 – Secs.

1717. and 18.

(Deleted[NRS by372.397 amendment.)is Sec.hereby amended to read as follows:

372.397 1.

A person may apply to the Office of Economic Development for a deferment of the payment of the tax on the sale of eligible property for a sales price of $1,000,000 or more for use by the person in a business in this State.

If a purchase is made outside of the State from a retailer who is not registered with the Department, an application for a deferment must be made in advance or, if the purchase has been made, within 60 days after the date on which the tax is due.

If a purchase is made in this State from a retailer who is registered with the Department and to whom the tax is paid, an application must be made within 60 days after the payment of the tax.

If the application for a deferment is approved, the taxpayer is eligible for a refund of the tax paid.

2.

The Office of Economic Development shall certify the person’s eligibility for a deferment pursuant to this section if:

(a) The person meets the eligibility requirements set forth in NRS 360.750 for a partial abatement of the taxes imposed on the person pursuant to [chapter 374] chapters 361 or 363B of NRS;

(b) The purchase is consistent with the State Plan for Economic Development developed by the Executive Director of the Office pursuant to subsection 2 of NRS 231.053;

and (c) The Office determines that:

(1) The deferment is a significant factor in the decision of the person to locate or expand a business in this State;

and (2) The eligible property will be retained at the location of the person’s business in this State until at least the date which is 5 years after the date on which the Office certifies the person’s eligibility for the deferment.

 Upon certification, the Office shall immediately forward the deferment to the Nevada Tax Commission.

3.

Upon receipt of such a certification, the Nevada Tax Commission shall verify the sale, the price paid, the date of the sale and the applicable period for payment of the deferred tax.

It may require security for the payment in an amount which does not exceed the amount of tax deferred.

Assembly Amendment No.

621 to Assembly Bill No.

400 Page 35 4.

If the Office of Economic Development certifies a person’s eligibility for a deferment pursuant to this section:

(a) Payment of the total amount of tax due on the sale of the eligible property must be deferred without interest for the 60-month period beginning on the date the Office makes that certification;

and (b) Payment of the tax must be made in each month, beginning not later than the date which is 1 year after the date on which the Office makes that certification, at a rate which is at least sufficient to result in payment of the total obligation within the period described in paragraph (a).

5.

The Nevada Tax Commission shall adopt regulations governing:

(a) The aggregation of related purchases which are made to expand a business, establish a new business, or renovate or replace eligible property;

and (b) The period within which such purchases may be aggregated.

6.

As used in this section, “eligible property” does not include any of the following capital assets:

(a) Buildings or the structural components of buildings;

(b) Equipment used by a public utility;

(c) Equipment used for medical treatment;

(d) Machinery or equipment used in mining;

or (e) Machinery or equipment used in gaming.] (Deleted by amendment.) Sec.

18.

[NRS 274.320, 374.356, 374.357 and 374.358 are hereby repealed.] (Deleted by amendment.) Sec.

The amendatory provisions of thissections act5, 6.3, 7, 11, 12.5, 13, 15 and 16 do not apply to any abatement granted or any application for an abatement filed before Julythe 1,effective 2019.date of the amendatory provisions to those sections.

This section and sections [1 to] 5, [inclusive,] 6.3, 7, 11,[9, 10,] 11 [and] , 12.5, 13,13 [to 18, inclusive,] , 15, 16 and 18.5 of this act become effective on July[July 1, 2019.2019.] passage and approval.

[Sections 5, 7 and 11] Section 15 of this act [expire] expires by limitation on June 30, 2032.

~~~~~[ 19TEXT -OF 80thREPEALED SessionSECTIONS (2019)274.320 Abatement for expanding business in certain areas of economic development:

Endorsement required;

application;

requirements for approval;

certificate of eligibility;

duration and amount of abatement;

repayment required under certain circumstances;

regulations;

judicial review.

1.

A person who intends to expand a business in this State within:

(a) A historically underutilized business zone, as defined in 15 U.S.C.

§ 632;

(b) A redevelopment area created pursuant to chapter 279 of NRS;

(c) An area eligible for a community development block grant pursuant to 24 C.F.R.

Part 570;

or (d) An enterprise community established pursuant to 24 C.F.R.

Part 597,  may submit a request to the governing body of the county, city or town in which the business operates for an endorsement of an application by the person to the Assembly Amendment No.

621 to Assembly Bill No.

400 Page 36 Office of Economic Development for a partial abatement of the taxes imposed on capital equipment pursuant to chapter 374 of NRS.

The governing body of the county, city or town shall provide notice of the request to the board of trustees of the school district in which the business operates.

The notice must set forth the date, time and location of the hearing at which the governing body will consider whether to endorse the application.

2.