Las Vegas Sun

March 28, 2024

Nevada tax revenue projection up $95.7 million from initial estimate

CARSON CITY — A growing state economy will produce $95.7 million more in taxes for the Nevada Legislature to spend in the next two years.

The Economic Forum of financial experts projected today the state will have $7.9 billion for the next two fiscal years. The figure represents the limit that state can spend without raising taxes.

The projection is $95.7 million more than the body’s December projection on which Gov. Brian Sandoval built his proposed budget.

“I’m very encouraged about the economic growth,” said Ken Wiles, chairman of the Economic Forum.

Michael Lawton, senior research analyst for the Nevada Gaming Control Board, predicted “continued gradual growth” in the casino industry. The Economic Forum predicted a 1.8 percent increase in gaming taxes next fiscal year and 2.8 percent in fiscal 2019.

Bill Anderson, chief economist with the state Department of Employment, Training and Rehabilitation, estimated there would be 38,000 to 40,000 jobs added in each of the coming two fiscal years.

Unemployment in Nevada, which had the nation’s highest jobless rate during the recession, is down to 4.8 percent and lower than in 16 other states, he said.

Dan White, a director with Moody’s Analytics, said the economy is looking strong. Increasing consumer prices will mean higher sales tax collections, he said.

The Economic Forum estimated sales tax receipts would rise by 2.2 percent in 2018 and 2.8 percent in 2019. This is after tax credits are deducted. On the down side, it is predicting less income from cigarette taxes and marriage license fees.

While there will be $95.7 million extra in the next two fiscal years, there will be plenty of demands for that money. Public schools want more funding, and state workers will be pushing for bigger raises than the annual 3 percent set aside in the governor’s budget.