Nevada revenue projections show more growth for next 2 years
Editors Note Updates with details.
CARSON CITY, Nev. (AP) _ Nevada's revenue from sales, gambling and other taxes will grow more than the inflation rate through mid-2021 for a total increase of $591 million, according to financial projections.
The Nevada Economic Forum approved the projections on Monday. Overall, the state's general fund revenue for 2019-2021 biennium is forecast at $8.8 billion, up 7.2 percent from the current $8.2 billion.
The Economic Forum is a panel of five financial experts from the private sector appointed to project general fund revenues. The governor and Legislature must use those projections to build the state budget unless they agree to raise or create new taxes and fees to cover planned spending.
The biennium covers two state fiscal years, which run July to June.
Several huge construction projects, especially in the southern part of the state, should support the tax numbers for the remaining seven months of this fiscal year and fiscal 2020, forum member Marv Leavitt said.
``The third year is the question in my mind,'' he said. ``How much the slowdown is going to affect sales taxes.''
Forum Chairman Linda Rosenthal agreed with Leavitt, saying she recognizes the potential for a slowdown in fiscal 2021. But she said there will still be growth and that revenue will not fall.
The sales and use tax is the largest revenue stream feeding the state's General Fund and is projected to bring in $2.72 billion of that total.
The sales tax projection estimates revenues will increase by about 5.2 percent in 2020 and 4 percent in 2021.
By The Associated Press, Copyright 2019