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Nevada drew 58% of state revenue from taxes in 2019

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.

Nationwide, taxes accounted for the largest source of revenue in 46 states. The only outliers were Alaska, Louisiana, Montana, and Wyoming—each of which relied more heavily on federal funds in 2019.

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.

Meanwhile, officials in Reno are pushing legislation to increase property taxes and fees from the Department of Motor Vehicles. Senate Bill 73 is projected to bring in over $36 million over the biennium, according to the DMV’s fiscal note.
This article was originally posted on Nevada drew 58% of state revenue from taxes in 2019

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