Las Vegas Sun

March 28, 2024

Census: Tax burden for Nevadans is on the rise

Nevada ranked 22nd in the number of state taxes paid in 2004 per capita, with The average Nevadan paying $2,029, according to a study by the U.S. Census Bureau.

The top five states were:

Hawaii: $3,048

Wyoming: $2,968

Connecticut: $2,937

Minnesota: $2,889

Delaware: $2,862

The bottom five were: Texas: $1,367

South Dakota: $1,378

Colorado: $1,533

New Hampshire: $1,543

Alabama: $1,549

CARSON CITY -- The average tax burden in Nevada is on the rise, according to new statistics from the U.S. Census Bureau.

Nevada collected $4.7 billion in taxes in fiscal year 2004. It ranked 22nd in the per capita amount of state taxes paid, with residents paying an average $2,029 each -- five dollars more than the national average.

The state ranked 25th in 2003, when residents paid an average $1,841 in taxes.

The survey looked at all state taxes, including taxes on properties, gas, sales and business licenses.

The rise comes partly from the state's booming budget, which has captured significantly more sales and gaming taxes -- money that largely comes from out-of-state tourists, experts said.

"We're sitting pretty," said Greg Bortolin, spokesman for Gov. Kenny Guinn. "Our economy -- our tourist-driven economy -- has done very well in the last year."

Estimates typically show that out-of-state visitors pay about 26 percent of all sales taxes, and between 80 and 90 percent of all gaming taxes, said Jeremy Aguero, principal analyst for Applied Analysis.

"Two out of every 10 people who are here are non-residents who are contributing their taxes," he said.

But some lawmakers said the numbers also reflect the $836 million tax hike passed in the 2003 legislative session.

Sen. Bob Beers, R-Las Vegas, said the ranking of taxes paid per capita is particularly enlightening because it takes into account the state's huge population growth.

"The only way you can move up on that list is by raising taxes more than the other states," he said.

On Monday, lawmakers will find out exactly how much they reaped from the tax increases when the Economic Forum releases estimates on how much the government will take into revenue this year.

The surplus from the current biennium could easily top $700 million, several watchers have said.

"We recognize that we increased a lot of taxes," said Sen. Mike McGuinness, R-Fallon, the chairman of the Senate Taxation Committee. "With the surplus, you can see what some of that brought in."

But while several measures now in the Legislature aim to tweak the tax hikes, none would make huge repeals.

Senate Bill 392, for example, would ensure that people who rent out properties wouldn't have to pay a licensing fee unless they have four or more properties.

It also would ensure that people who have at-home caregivers wouldn't have to pay some employment taxes.

Senate Bill 391 would give banks a relief on the fee paid for each branch.

And McGuinness said he supports a bill that would lower the bank payroll tax from 2 percent to the 0.65 percent that other businesses pay.

If the Legislature fixes those problems and a few other small items, Nevada should drop a few notches in the national rankings, McGuinness said.

"It's not necessarily a good thing, but it's lower than most people think," he said.

Indeed, there is little difference among states that rank in the middle of the list, Nevada Taxpayers Association president Carole Vilardo pointed out.

Arkansas, which ranked 23rd, paid an average of $2 less than Nevada residents.

Vilardo said she and others pushed legislators to repeal more of the new taxes, but there was little appetite. Most of the bills dealing with changes are now before the Senate Finance Committee.

"The word was: This will be a technical bill," Vilardo said.

Assembly Speaker Richard Perkins, D-Henderson, said Nevada remains one of the most tax friendly states for individuals and businesses.

Most tax increases in 2003 were aimed at casinos, big businesses, banks and developers, he said.

"I don't think people in Nevada want us to give money back to the casinos to the detriment of the education system," Perkins said.

Aguero agreed that the tax structure is friendly to most residents.

"The reality is that individual tax burden in Nevada remains among the lowest in the United States," he said.

And few could have predicted that the economy in Nevada would be so strong, Aguero said. The last 18 months have seen substantial improvements over the previous 18 months, he said.

"I don't know anyone who is sober who would have expected this," he said.

archive