(Robert Davis) – Nevada ranked No. 3 for states with the highest percentage of revenue brought in by taxes in fiscal year 2019, according to a recent report.
The study, conducted by Pew Trusts, found that 58% of the Silver State’s total revenue that year came from state and local taxes.
Another 31% of the state’s revenue came from federal funds, according to the study. Service charges and miscellaneous fees made up a combined 9.7% of revenue, while local funds made up 1.2%.
Analysts said the analysis accounts only for “general revenue,” which excludes revenue from sources such as state-owned liquor stores, utilities, and insurance trust funds.
Altogether, taxes and federal funds accounted for over 80% of revenue in all the states.
According to another Pew study, most of Nevada’s tax revenue comes from general sales taxes. In fiscal year 2019, sales taxes made up 56.4% of the state’s total revenue, which ranked Nevada 5th in sales taxes collected. Property taxes made up just 3.4% of the state’s revenue.
Nevada state lawmakers have introduced several measures this legislation session to raise more revenue through taxes to help pay for Gov. Steve Sisolak’s $8.6 billion state budget.
The budget itself restores many of the cuts made in 2020, including $331 for K-12 education and restoring the 6% rate reduction for Nevada Medicaid providers.
Similarly, the budget includes additional tax incentives to help the economy recover from the pandemic. They include abatements for investments of $1 billion or more, a partial abatement of personal property taxes, and additional incentives for data centers.
Senate Bill 11 would allow Washoe County to create an additional “government service tax” of $0.01-cents per $1 of value of a vehicle registered in the county. The bill is expected to raise $27 million per year, according to its fiscal note.
Proceeds from SB-11 would be spent on infrastructure projects and increasing services for people experiencing homelessness. The bill is projected to provide over $9 million annually for a new “super shelter” in the Governor’s Bowl, according to the Reno Gazette Journal.