In Fiscal Year (FY) 2011, Nevada collected $10.2 billion in state and local taxes. While this is an impressive sum of money, it tells us little about whether or not the average Nevada taxpayer can afford this level of taxation.
As shown in the charts below, Nevada’s state and local tax burden (tax collections divided by personal income) was the twenty-second highest in the nation for FY 2011 at 10.2 percent—or 2.8 percent below the national average of 10.5 percent. Nevada’s tax burden has only grown by 19 percent to 10.2 percent in FY 2011 from 8.5 percent in FY 1950.
Nevada has a high sales tax burden (3.2 percent, 9th highest, and all other taxes burden (4 percent, 5th highest), such as amusements taxes, which is not surprising since these taxes naturally target the tourists who visit Las Vegas. Of course, these high taxes are offset by the fact that Nevada does not a have an individual or corporate income tax.
Note: FY 2012 state and local tax data from the U.S. Census Bureau will not be available until later in 2014 because FY 2012 is part of their comprehensive “Census of Governments” that is done every 5 years (on years ending 2 and 7). Rest assured that Key Policy Data will post the FY 2012 as soon as it becomes available.
Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.