State tax collections running ahead of predictions

Nevada Capitol

Nevada Capitol

Through the first six to eight months of this fiscal year, actual state tax collections are running well above what the Economic Forum predicted as well as what the state General Fund took in last fiscal year.
General Fund revenue streams have brought in a total of $2.75 billion year to date, Legislative Counsel Bureau Deputy Economist Joe Reel told the Joint Interim Revenue Committee on Wednesday.
That is $668.5 million more than the forecast for the first six to eight months of this fiscal year — 32.6 percent more than projected.
That total is 61 percent of what economists and the Economic Forum predicted for the entire fiscal year, well above the 46.3 percent of the total the state collected at this point in fiscal 2021.
Reel and Legislative Economist Russell Guindon made clear the second half of the year might not be as good but neither indicated they expect a dramatic drop in revenue.
“But are we going to be at $1.2 billion at the end of the year? I don’t think so,” said Guindon.
The major revenue streams account for three-quarters of the General Fund each year. They are the sales tax, the gaming percentage fee (gaming tax), the insurance premium tax, modified business tax, live entertainment tax, real property transfer tax and commerce tax.
Reel said only the commerce tax is below projections so far.
Despite the rosy numbers, Revenue Committee Chair Dina Neal, D-North Las Vegas, advised lawmakers to not to get ahead of themselves.
”Don’t start thinking about how you’re going to spend that money,” she said.


Use the comment form below to begin a discussion about this content.

Sign in to comment