Storey County FY 17-18 Taxable Sales Tax Figures Continue to Disappoint

The final taxable sales report for fiscal year 2017-18 was released by the Nevada Department of Taxation (NDT) last week and the news is mixed. With the final month of FY17-18 in the books, we can look at the FY17-18 Taxable Sales totals and do some analysis. The good news is that the revenue into county coffers is up. The bad news is that taxable sales were down for the sixth straight month and way down year over year.

The Good

The good news is that the net value of cash deposited into county coffers was up despite the lagging numbers. According to NDT, Storey County School District revenue was $1,370,410, up 2.4%. Combined revenue into the Storey County General Fund was $5,310,631 up 15.05% over FY16-17. Storey County deposited $5,200 from retail liquor sales, $12,000 from cigarette sales, and over $90,000 in revenue from Marijuana*.

The Bad

Sales were down over $100 million dollars this June compared to June of 2017. The June 2018 figures represent the sixth straight drop monthly drop in taxable sales compared to the same monthly totals from last year. In total, FY17-18 taxable sales are down $341,730,438 or 20.64% compared to FY16-17.

 

 

The FY17-18 impact of SB1 in terms of Storey County abated revenue from taxable sales is as follows:

	Without Abatements	With Abatements	Delta
2.6% Local School Tax	$33,213,735.31	$1,370,410.00	$31,843,325.31
.5% basic city-county relief tax (BCCRT)	$6,387,256.79	$683,343.00	$5,703,913.79
1.75% supplemental city-county relief tax (SCCRT)	$22,355,398.77	$2,296,878.21	$20,058,520.56
.25% promotion of tourism	$3,193,628.40	$320,000.00*	$2,873,628.40
.25% infrastructure	$3,193,628.40	$320,000.00*	$2,873,628.40
.25% tri county railway commission	$3,193,628.40	$320,000.00*	$2,873,628.40
Total Tax Revenue	$71,537,276.05	$5,310,631.21	$66,226,644.84

* These numbers are not yet available from NDT and are estimated based on analysis of the last 6 years numbers.

Yes, gentle reader, we would have banked another $66 million dollars if it wasn’t (primarily) for Tesla and Switch. In other words, we get roughly 8% of what we would have gotten had SB one not given away our money.

The Ugly

While all of Nevada share in carrying the burden of the tax abatements, we here in Storey County has really paid the price. Below is a rough accounting of what Tesla, Switch and the other Sales Tax abaters have cost Storey County Residents. Prepare for an inconvenient truth…

Sales Tax Abatements
FY15-16	$8,755,767.51
FY16-17	$85,088,804.72
FY17-18	$66,226,644.84
Total	$160,071,217.07

the table above represents lost Taxable Sales revenue. It does not include the lost revenue from property tax abatements or secured and unsecured personal property. Or the County Debt owed to TRIC for all the developer expenses. Or the new pipeline.

The $160 million dollars represents a commitment of roughly $40,000 per man woman and child in Storey County.

What Could Have Been

A popular myth Commissioner McBride likes to foist upon the unwitting is the notion that the legislation that burdened Storey County Taxpayers with Elon Musk and Tesla and we had no voice In the conversation. “We did not have a seat at the table.” he has said on the record.

The facts reflect otherwise. Storey County Commissioner Lance Gilman was in fact at the table in the Legislature when the SB1 was crafted.  Commissioner Gilman was there representing himself and his big money interests instead of the taxpayers of Storey County. While TRIC has cost Storey County north of $200 million dollars.

*Storey County gets Marijuana money even though the County Commissioners voted to prohibit Marijuana sales of any kind in the county.