So how much did we get?
I too asked the Nevada Department of Taxation (NDT) about how much money Storey County received from the record $1.6 billion in taxable sales in the form of a public records request on March 25th, 2018. Given the relatively basic nature of the request, I am amazed NDT can’t figure out by now. Confidence level waning.
I too asked Storey County Comptroller Hugh Gallagher how much we got from the record $1.6 billion in taxable sales, and he said “about a million”. Since Mr. Thompson chose not to provide a number for FY 2016-2017, we can assume he either doesn’t have them or they are pretty close to “about a million”. Pants on fire by omission.
Even if we got $3.5 million or even $5 million from the $1.6 billion in taxable sales, it’s chump change as I will show below.
Numbers May Be Tortured to Lie, Math Can Not.
Storey County’s rate is 7.6% and is made up of:
· 2% sales tax
· 2.6% local school support tax (LSST)
· .5% basic city-county relief tax (BCCRT)
· 1.75% supplemental city-county relief tax (SCCRT)
· .25% promotion of tourism
· .25% infrastructure
· .25% tri county railway commission
Here is what Mr. Spreadsheet has to say about what we should have received from the record $1.6 billion in taxable sales:
Taxable Sales = $1,600,000,000
|2% Nevada State Sales Tax
|2.6% Local School Tax
|.5% basic city-county relief tax (BCCRT)
|1.75% supplemental city-county relief tax (SCCRT)
|.25% promotion of tourism
|.25% tri county railway commission
|Total Tax Revenue
Mr. Spreadsheet says our schools should have gotten $41,600,000 and the county should have gotten a whopping $ 48,000,000.
Party on, Wayne!
Bait and Switch
Mr. Thompson reminds us that only two companies (Tesla and Switch) enjoy the status of tax freeloaders thanks to the GigaFactory “Deal (hustle) of the Century”, and that they can only dance on Storey County Taxpayer shoulders for another six years.
We can’t know for certain what impact this dancing has until the NDT comes clean with the breakdown of receipts from the record $1.6 billion in taxable sales from FY 2106-2017. When they do I will push that in another article on The Teller.
But if Mr. Gallagher’s estimate of “about a million” is close, we have two major takeaways from that:
- The two freeloaders represent nearly all the volume of the taxable sales in Storey County, and
- Since these sales are for one time purchases surrounding the building of the “GigaFactory”, we will never enjoy similar robust taxable sales numbers once the building is completed.
In other words, when the taxable sales music stops and the dance ends for Tesla and Switch in six years, there could very well be little to no taxable sales revenue coming in from TRIC.
In fact, I’ll bet you a doughnut that in six years it will forever be less than the $121,600,000 we should have received from FY 2016-2107.
Meanwhile, the cost to the county of maintaining three fire stations and law enforcement will dance on.
Time will tell what the real impact of Tesla, Switch and the other 150 “world class” companies have on our bottom line.
I remain hopeful that dancing to the music of the band of merry TRICsters will be a net win for all of Storey County and not just the select few.
But I’m not holding my breath.
postscript: Commissioner Gilman and Kris Thompson have been anointed “Government Relation Representatives” for Blockchains, the company behind the cryptocurrency Ethereum who just bought out TRIC and hope to turn their little corner of paradise into an amusement park for grownups. Although Jack McGuffey gets bamboozled putting his socks on every morning, we had better keep both hands on our wallets and not let them bamboozle Marshall McBride and Pat Whitten into giving away what is left of the farm for a couple bottles of Ripple and a free pass to Glance Thrillman’s petting zoo.
Nicole Barde’s Reply to Kris Thompson:
You never fail to disappoint in your misreading of the actual words that I write.
While I have restrained from responding to your rants in the past I will now since I am running for the office of Commissioner in the general election. I want to make sure that people understand from ME what I say and mean ……and NOT what you say I mean.
If anyone has any doubt about where I stand on TRIC, corporate business, small business, community development and how to manage our finances PLEASE go to my website at bardecampaign.com and see the commitment that I make to the residents of this county on those and other issues. You can also call me at 775-583-8047…I don’t bite!
But I digress..a couple of things.
I have called the Department of Taxation to try and get the actual numbers. , ie what portion of the tax on the $1.6 Billion taxable sales , sales tax, does Storey actually get. They couldn’t tell me. So I recently asked Hugh Gallagher, our Comptroller, and he said “about $1Million”.
For anyone who’s worked with numbers you know that you can torture them to say anything. There are many sources for this number but Hugh has the books so I tend to believe him.
Additionally, it was discussed at a prior Commission meeting that we have to build two fire stations out at TRI and don’t have the funds to do it. It was hoped that Roger Norman would do it but now that TRIC is sold out the county has to find other deep pockets to help fund the fire stations.
If we are swimming in money why can’t we find the money to build them ?
The issue is that expenses are going up at a faster rate than revenue growth…..THAT is what I said at the meeting. I also said that laying off is hard so to be prudent on hiring.
Having had to lay off thousands of people over my 20 year span in a high tech corporation it is the worst thing I’ve ever had to do….and I don’t ever want to see that happen here again.
I am a TRIC supporter for the jobs and revenues it brings to the region. And while I support providing reasonable competitive incentives to get companies to move here I am not in favor of corporate welfare. While I support the effluvium pipeline, it was corporate welfare to expect tax taxpayers of this county to foot the bill for the pipeline.
As for Tesla , as of the 2017 report on the GOED website , Tesla had about 1000 Qualified Employees ( full time, Tesla/ Panasonic direct employees). The thousands you cite are temporary construction jobs, while wonderful for the economy they will go away once the job is done.
While I am exceedingly grateful that Tesla located at TRIC and I have high expectations that all that they have promised will come true. I am still a skeptic and in “ show me” mode.
We all know what that means.
So I will remain a skeptic and ensure that we are protected.
Pat Whitten is about to enter into negotiations with Tesla on the Services Agreement …..lets see how that goes.
Kris, I want to thank you for your rants. You are the number one promotional boost to bardeblog.com. EVERY time you rant my readership goes up!!
“The only thing necessary for the triumph of evil is for good men to do nothing.”