SB 364 — Revises provisions relating to economic development. (BDR 32-799)

EXEMPT (Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT S.B.

- *SB364**SB364_R1* – 2 – investigations of a person claiming an abatement of taxes pursuant to section 1, investigate whether the person meets the requirements for eligibility for the abatement.

(NRS 218D.355) - *SB364**SB364_R1* – 3 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

An owner of a business or 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:

(a) OneThe or more of the property taxes imposed on real or personal property used to construct, operate, manufacture, reconstruct, maintain, repair or lay railroad tracks, railroad spurs and other physical infrastructure in this State necessary to provide rail service;service or qualifying railroad real property;

(b) OneThe or more of the local sales and use taxes imposed on the purchase of tangible personal property used to construct, operate, manufacture, reconstruct, maintain, repair or lay railroad tracks, railroad spurs and other physical infrastructure in this State necessary to provide rail service;

or (c) The taxes imposed by chapter 363B of NRS on the wages paid by an employer to full-time employees who construct, operate, manufacture, reconstruct, maintain, repair or lay railroad tracks, railroad spurs and other physical infrastructure in this State necessary to provide rail service.

- *SB364**SB364_R1* – 4 – (b) The business is registered pursuant to the laws of this State or the applicant commits to obtaining a valid business license and all other permits required by the county, city or town in which the business operates;

(1) A new business, it will have five10 or more full-time employees in this State on the payroll of the business within 1 year after receiving its certificate of eligibility for a partial abatement;

or (2) An existing business, it will increase its number of full- time employees in this State on the payroll of the business by 310 percent or threesix employees, whichever is greater, within 1 year after receiving its certificate of eligibility for a partial abatement;

(a) Shall approve or deny an application submitted pursuant to this section and notify the applicant of its decision not later than 45100 days after receiving the application.

- *SB364**SB364_R1* – 5 – (1) Consider an application for a partial abatement submitted pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the partial abatement from any affected county, school district, city or town and has complied with the requirements of NRS 360.757;

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 - *SB364**SB364_R1* – 6 – period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

(c) “Property taxes” means any taxes levied by the State or a local government pursuant to the provisions of chapter 301361 of NRS.

(d) “Qualifying railroad real property” means real property:

(1) On which railroad tracks or railroad spurs which are used to provide rail service are located, including the area between the rails.

(2) Which is adjacent to a railroad track or railroad spur which is used to provide rail service, up to 1 foot horizontally from the outside edge of the rails.

- *SB364_R1* – 7 – (e) A partial abatement of taxes pursuant to NRS 360.754 on or before December 31, 2056;

or [(g)] (h) An abatement of taxes pursuant to NRS 360.950 on or before June 30, 2036, - *SB364* – 7 –  the Department shall investigate whether the person meets the eligibility requirements for the abatement, partial abatement, exemption or deferral that the person is claiming.

and - *SB364_R1* – 8 – (b) Upon request by any person, the Executive Director of the Office of Economic Development shall disclose the audit report to the person who made the request, except for any information in the audit report that is protected from disclosure pursuant to subsection 5.

Before the Executive Director of the Office of Economic Development discloses the audit report to the public, the business may submit a request to the Executive Director to protect from - *SB364* – 8 – disclosure any information in the audit report which, under generally accepted business practices, would be considered a trade secret or other confidential proprietary information of the business.

- *SB364_R1* – 9 – Sec.

The document must clearly state that the - *SB364* – 9 – business is not required to pay sales and use taxes or the rate of sales and use tax that the business is required to pay.

Except as otherwise provided in NRS 360.753, 360.754, 360.893 and 360.965, and section 1 of this act, any state legislation enacted on or after July 1, 2012, which authorizes or requires the Office of Economic Development to approve any - *SB364_R1* – 10 – abatement of taxes or increases the amount of any abatement of taxes which the Office is authorized or required to approve:

or - *SB364* – 10 – (II) Any real or personal property from a governmental entity at no cost or at a reduced cost.

- *SB364_R1* – 11 – Sec.

- *SB364* – 11 – 2.

A business must be considered an impact qualified active low-income community business for the duration of the impact qualified community development entity’s investment in, or loan to, the business if the entity reasonably expects, at the time it makes the - *SB364_R1* – 12 – investment or loan, that the business will continue to satisfy the requirements for being an impact qualified active low-income community business throughout the entire period of the investment or loan.

- *SB364* – 12 – (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 - *SB364_R1* – 13 – (2) The Office of Economic Development must forward a copy of the written notice to the Department and each governmental entity or official to whom a copy of the certificate of eligibility for the abatement was forwarded.

- *SB364* – 13 – Sec.

- *SB364_R1* – 14 – (g) A country club.

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 or section 1 of this act is a qualified active low-income community business if the business elects to waive the abatement - *SB364* – 14 – and provides written notice of the waiver of the abatement to the Office of Economic Development not later than the due date of the first payment of any tax which would be abated if the abatement became effective.

- *SB364_R1* – 15 – (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.

- *SB364* – 15 – Sec.

Sections 1 to 11, inclusive, of this act become effective upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act, and on July 1, 2025, for all other purposes, and expire by limitation on June 30, 2045.2025,2045. H - *SB364*

H - *SB364_R1*