PRESS RELEASE (UPDATED)
RENO TAX REVOLT
RENO TAX REVOLT
For Immediate Release
July 10, 2017, Updated January 27, 2018
For more information contact;
800 554 9519
Subj: WC1 Sales Tax harms Washoe! Auto Sales Plummet
Reno NV -
While overall Nevada sales tax rose 4.6% statewide it was down 3.8% in Washoe (April, 2017). Taxpayers voted with their wallets and Washoe revenue fell dramatically costing us millions in lost taxes!
Auto Sales and Parts (Cat 441) up almost 20% in Carson and soared 47.6% in Lyon! Meanwhile Car Dealer Taxes in Washoe County plunged 8.6%! Source: NV Dept of Taxation Combined Sales & Use Statistical Report (Month of April 2017 when tax took effect) https://tax.nv.gov/uploadedFiles/taxnvgov/Content/TaxLibrary/SUT_Stat_Apr_17.pdf
It is hard to find any other reason other than the WC1 aftermath*. Various out of County dealers emphasize the tax savings in their county. For example Lyon County is 7.1% vs 8.265 in Washoe. A big difference!
* noun 1.the consequences or aftereffects of a significant unpleasant event.
Since April of 2017, auto sales tax has rebounded along with the booming economy but in single digits while neighboring counties are experiencing double digit car sales increases. For example through October, 2017 Washoe had a dismal 3.7% car sales increase over the same period in 2016. Yet in Carson, car sales hit 14.7% Lyon County up 12.8%. Some folks took the drive to Winnemucca at 10.7%. All representing millions in lost revenue for Washoe. Still some dealers such as Mercedes, Lexus, Mitsubishi don’t have another Northern Nevada Dealer but if that changes, sales will fall more.
The sales tax drop is in spite of Washoe’s booming population growth (about 6% yearly). Gas tax in Washoe only went up about 2 cents July first, making it 40 to 50 cents higher than Fernley or Carson. It will continue to go up unless the RTC5 tax is repealed.