Nevada SB 430: Expanding the definition of “chronic or debilitating medical condition” for certain purposes related to the medical use of marijuana. (BDR 40-1152)

Bill Text

S.B. 430
- *SB430*

SENATE BILL NO. 430–COMMITTEE ON
REVENUE AND ECONOMIC DEVELOPMENT

MARCH 24, 2025
____________

Referred to Committee on Revenue and
Economic Development

SUMMARY—Revises provisions relating to taxation.
(BDR 32-693)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to taxation; providing for the issuance of
transferable tax credits and the partial abatement of
certain taxes for certain projects of single-family
residences; exempting such residences from the taxes on
real property and transfers of such residences from the
taxes on transfers of real property in certain
circumstances; prohibiting the sale of such residences to
certain corporate investors; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, financial institutions and other employers are required to 1
pay an excise tax (the modified business tax) on wages paid by them. (NRS 2
363A.130, 363B.110) Existing law provides for the imposition and administration 3
of sales and use taxes pursuant to the Sales and Use Tax Act and the Local School 4
Support Tax Law. (Chapters 372 and 374 of NRS) Any amendment to the Local 5
School Support Tax Law also applies to other sales and use taxes imposed under 6
existing law. (NRS 354.705, 374A.020, 376A.060, 377.040, 377A.030, 377B.110, 7
543.600; and various special and local acts) Sections 2-13 of this bill authorize the 8
Housing Division of the Department of Business and Industry to approve 9
applications for the issuance of transferable tax credits and granting of abatements 10
of the excise tax on employers other than financial institutions or local sales and 11
use taxes imposed pursuant to the Local School Support Tax Law that are 12
submitted by a project sponsor engaged in a project for the acquisition, 13
development and construction of single-family residences to be sold for the direct 14
cost of the residences to households who will occupy the residences and whose 15
income is less than 130 percent of the area median income. Section 9 authorizes the 16
project sponsor, on behalf of the project, to apply to the Division for these tax 17

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- *SB430*
incentives. Sections 9 and 19 of this bill provide for the confidentiality of certain 18
information in the application and for the adoption of regulations. Section 9 19
authorizes the Division to approve such an application if the Division finds that the 20
project meets the qualifications. 21
If the Division approves an application for transferable tax credits, section 10 22
requires the Division to issue to the project sponsor in the qualified project a 23
certificate of eligibility for transferable tax credits. Section 10 provides that a 24
project is eligible for transferable tax credits in an amount equivalent to the costs of 25
financial assistance provided by the project sponsor to purchasers of single-family 26
residences. Section 10 also provides that the expiration of the transferable tax 27
credits is 4 years after the date of issuance to the project sponsor. 28
If the Division approves an application for an abatement, section 11 provides 29
that the project sponsor is entitled to an abatement of: (1) employer excise taxes for 30
a period of not more than 10 years in an amount equal to the amount of the 31
employer excise taxes that would otherwise be owed for the project; and (2) certain 32
local sales and use taxes for a period of not more than 20 years and in an amount 33
equal to those local sales and use taxes that would otherwise be owed in the county 34
in which the project is located. Sections 15 and 16 of this bill make conforming 35
changes as a result of the authorization of these abatements. 36
Section 12 requires the project sponsor to repay any portion of transferable tax 37
credits and any portion of an abatement to which the project sponsor is not entitled 38
if the Division determines that the project sponsor becomes ineligible for the 39
incentives. Section 13 requires the Division to prepare and submit to the 40
Legislature certain reports concerning any tax incentives provided to a project 41
pursuant to sections 2-13. 42
Existing law provides for the assessment of ad valorem taxes on certain real 43
and personal property and provides certain exemptions from those taxes. (Chapter 44
361 of NRS) Section 14 of this bill provides an exemption from the tax on real 45
property for the initial owner of a single-family residence constructed as part of a 46
project approved pursuant to sections 2-13. The Nevada Constitution requires the 47
Legislature to provide a specific date on which an exemption from property taxes 48
will cease to be effective. (Nev. Const. Art. 10, § 6) To comply with this 49
requirement, section 14 prohibits an application for an exemption pursuant to that