Report: Nevada No. 36 among states that ‘sponge tax dollars’

By Rich Coleman

Thursday, April 7, 2011 | 2:05 a.m.

A new report finds that Nevada ranks No. 36 among states “that sponge tax dollars,” receiving more back from the federal government than they contribute in taxes.

According to the report, researchers used 2007 through 2009 data from the U.S. Census Bureau’s Consolidated Federal Funds Report and data from the Internal Revenue Service to compile the rankings.

States were scored for each year based on tax dollars paid to the IRS compared to federal dollars received. The three years were then combined for a final ranking.

From 2007 to 2009, Nevada paid an average of $17.05 billion in federal taxes and received an average of $17.53 billion in federal funding. Per tax dollar paid, Nevada received $1.03.

Mississippi was at the top of the “sponge” list, receiving $31.27 billion in federal funding and paying $11.06 billion in federal taxes from 2007 to 2009.

Delaware was ranked last, paying $17.38 billion while receiving only $6.95 billion in federal funding.