SB 375 — Revises threshold for determining whether certain persons and entities who operate home-based businesses are exempt from the requirement to obtain a state business license. (BDR 7-773)
Last action — (No further action taken.)
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed Assembly
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5To Executive
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6Enacted
This bill died with 2019 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Summary
AN ACT relating to state business licenses; revising the threshold for determining whether certain persons and entities who operate home-based businesses are exempt from the requirement to obtain a state business license; and providing other matters properly relating thereto.
Bill Text
What changed in the latest version
30 added · 131 removed30 line(s) added, 131 removed.
(Reprinted with amendments adopted on April 22, 2019) FIRST REPRINT S.B.
375–SENATOR HANSEN M ARCH 20, 2019 ____________ Referred to Committee on Judiciary SUMMARY—ExemptsSUMMARY—Revises threshold for determining whether certain persons and entities who operate home-based businesses are exempt from the requirement to obtain a state business license.
EffectEfEffect on Localthe Government:State:
No.
Effect on the State:
No.
exemptingrevising the threshold for determining whether certain persons and entities who operate home-based businesses are exempt from the requirement to obtain a state business license;
LegislativeLegUnder Counsel’sexisting Digest:law, a person who operates a business from his or her home and whose net earnings from that business are not more than 66 2/3 percent of the average annual wage is exempt from the requirement to obtain a state business license.
Under(NRS existing76.020, law,76.100) This bill provides instead that a person who operates a business from his or her home andis whoseexempt from the requirement to obtain a state than $60,000.nse if his or her annual net earnings from that business are not more thanTHE 66PEOPLE 2/3OF percentTHE ofSTATE theOF license.NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
(NRS 76.020, 76.100) This bill provides instead that a person who operates a business from his or her home is exempt from the requirement to obtain a state business license if his or her annual gross earnings from that business are not more than $60,000.
This bill also extends the exemption for home-based businesses to certain business entities that operate a business from the home of a natural person who is a shareholder, director, officer, member, managing member, partner or trustee of the entity.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
(b) Any natural person who performs a service or engages in a trade for profit if the person is required to file with the Internal - *SB375**SB375_R1* – 2 – Revenue Service a Schedule C (Form 1040), Profit or Loss From Business Form, or its equivalent or successor form, a Schedule E (Form 1040), Supplemental Income and Loss Form, or its equivalent or successor form, or a Schedule F (Form 1040), Profit or Loss From Farming Form, or its equivalent or successor form, for that activity;
(c) A person who operates a business from his or her home and whose [net] annual grossnet earnings from that business are not more than [66 2/3 percent of the average annual wage, as computed for the preceding calendar year pursuant to chapter 612 of NRS and rounded to the nearest hundred dollars.] $60,000.
(d) AnA entitynatural organizedperson pursuantwhose tosole this title that operates a business fromis the homerental of afour natural person who is a shareholder, director, officer, member, managing member, partner or trusteefewer ofdwelling theunits entityto andothers. whose annual gross earnings from that business are not more than $60,000.
(e) A natural person whose sole business isorganized thepursuant rentalto ofchapter four82 or fewer84 dwellingof unitsNRS. to others.
[(e)] (f) A business organized pursuant to chapter 8281 orof 84NRS ofif NRS.the business is a nonprofit unit-owners’ association.
[(f)] (g) A business organized pursuant to chapter 81 of NRS if the business is a nonprofit unit-owners’ association.
NRS(Deleted 76.100by isamendment.) herebySec. amended to read as follows:
76.100 1.
A person shall not conduct a business in this State unless and until the person obtains a state business license issued by the Secretary of State.
If the person is:
(a) An entity required to file an initial or annual list with the Secretary of State pursuant to this title, the person must obtain the state business license at the time of filing the initial or annual list.
(b) Not an entity required to file an initial or annual list with the Secretary of State pursuant to this title, the person must obtain the state business license before conducting a business in this State.
2.
An application for a state business license must:
(a) Be made upon a form prescribed by the Secretary of State;
(b) Set forth the name under which the applicant transacts or intends to transact business, or if the applicant is an entity organized - *SB375* – 3 – pursuant to this title and on file with the Secretary of State, the exact name on file with the Secretary of State, the business identification number as assigned by the Secretary of State pursuant to NRS 225.082, and the location in this State of the place or places of business;
(c) Be accompanied by a fee in the amount of $200, except that if the applicant is a corporation organized pursuant to chapter 78, 78A or 78B of NRS, or a foreign corporation required to file an initial or annual list with the Secretary of State pursuant to chapter 80 of NRS, the application must be accompanied by a fee of $500;
and (d) Include any other information that the Secretary of State deems necessary.
If the applicant is an entity organized pursuant to this title and on file with the Secretary of State and the applicant has no location in this State of its place of business, the address of its registered agent shall be deemed to be the location in this State of its place of business.
The application must be signed pursuant to NRS 239.330 by:
(a) The owner of a business that is owned by a natural person.
(b) A member or partner of an association or partnership.
(c) A general partner of a limited partnership.
(d) A managing partner of a limited-liability partnership.
(e) A manager or managing member of a limited-liability company.
(f) An officer of a corporation or some other person specifically authorized by the corporation to sign the application.
4.
If the application for a state business license is defective in any respect or the fee required by this section is not paid, the Secretary of State may return the application for correction or payment.
Show all 67 changed lines (27 more)
5.
A state business license issued pursuant to this section must contain the business identification number assigned by the Secretary of State pursuant to NRS 225.082.
6.
The state business license required to be obtained pursuant to this section is in addition to any license to conduct business that must be obtained from the local jurisdiction in which the business is being conducted.
7.
For the purposes of this chapter, a person:
(a) Shall be deemed to conduct a business in this State if a business for which the person is responsible:
(1) Is organized pursuant to this title, other than [a] :
(I) A business organized pursuant to [:
(I) Chapter] chapter 82 or 84 of NRS;
[or] - *SB375* – 4 – (II) [Chapter] A business organized pursuant to chapter 81 of NRS if the business is a nonprofit unit-owners’ association or a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.
§ 501(c);
or (III) An entity that operates a business from the home of a natural person who is a shareholder, director, officer, member, managing member, partner or trustee of the entity and whose annual gross earnings from that business are not more than $60,000;
(2) Has an office or other base of operations in this State;
(3) Except as otherwise provided in NRS 76.103, has a registered agent in this State;
or (4) Pays wages or other remuneration to a natural person who performs in this State any of the duties for which he or she is paid.
(b) Shall be deemed not to conduct a business in this State if the business for which the person is responsible:
(1) Is not organized pursuant to this title;
(2) Does not have an office or base of operations in this State;
(3) Does not have a registered agent in this State;
(4) Does not pay wages or other remuneration to a natural person who performs in this State any of the duties for which he or she is paid, other than wages or other remuneration paid to a natural person for performing duties in connection with an activity described in subparagraph (5);
and (5) Is conducting activity in this State solely to provide vehicles or equipment on a short-term basis in response to a wildland fire, a flood, an earthquake or another emergency.
8.
As used in this section, “registered agent” has the meaning ascribed to it in NRS 77.230.
Sec.
3.
H - *SB375**SB375_R1*
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View plain text versions (2)
- Reprint 1 View text Current pdf
- Introduced As Introduced pdf
Amendments
1 amendmentClick Show changes on an amendment above to see how it modifies the bill.
Action History
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(No further action taken.)
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From printer. To engrossment. Engrossed. First reprint. To committee. Exemption effective.
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From committee: Amend, and re-refer to Committee on Finance. Placed on Second Reading File. Read second time. Amended. (Amend. No. 251.) Re-referred to Committee on Finance. To printer.
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Notice of eligibility for exemption.
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From printer. To committee.
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Read first time. Referred to Committee on Judiciary. To printer.
Sponsors
- Ira Hansen · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 66 not signed on
Sponsors (1)
- Hansen, Ira Republican
Co-sponsors (0)
None.
Not signed on (66)
66 members have not signed on to this bill.
Show all 66 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does SB 375 do?
- AN ACT relating to state business licenses; revising the threshold for determining whether certain persons and entities who operate home-based businesses are exempt from the requirement to obtain a state business license; and providing other matters properly relating thereto.
- Who sponsors SB 375?
- SB 375 is sponsored by Hansen, Ira (Republican).
- What is the current status of SB 375?
- This bill died with 2019 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 375?
- Track SB 375 free on One Click Politics — get push/email alerts when it moves.
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