On Tuesday, the Nevada Employment Security Council voted unanimously to maintain the current unemployment insurance tax rate, which averages 1.33 percent of taxable payroll, through 2010.
Due to the extreme economic conditions that the Silver State is currently experiencing, the once-robust Unemployment Insurance Trust Fund is rapidly running out of the funds needed to pay Nevadans who have lost their jobs, according to a statement from the Reno Sparks Chamber of Commerce. Historically, the tax rate has been countercyclical to the economic climate, with a higher rate in robust economic conditions and a very low rate during recessionary period.
The Reno Sparks Chamber of Commerce, Northern Nevada’s largest business organization, appeared before the Council to urge the members to proceed with caution in changing the Unemployment Insurance tax that all businesses must pay. Tray Abney, the Chamber’s Director of Government Relations, testified that the business community is suffering through unprecedented economic turmoil and, after getting burdened with recent tax increases approved by the State Legislature, cannot shoulder anymore costs at this time.
“We know the Council was in a very difficult position today when weighing placing a higher tax burden on the Silver State’s businesses or borrowing more from the federal government,” said Doug Kurkul, Chamber CEO.
“We applaud the Council for making this tough decision and are committed to working with them to replenish the trust fund when economic conditions improve.”