August 30, 2014
CARSON CITY, Nev. (AP) - The state's largest revenue source is losing ground because of a changing economy that has shifted from consumption of goods to consumption of services.
A report presented Thursday to the Senate Committee on Legislative Operations and Elections shows 36 percent of Nevada general fund tax revenues comes from sales and use taxes.
Since the mid-1960s, services have outpaced goods in what Nevadans purchase, but services aren't taxed.
Jeremy Aguero of Applied Analysis told committee members that Nevada's current sales tax base is about $40 billion. But he says another $87 billion in economic activity isn't subject to sales tax.
The committee took no action on SCR1, which would authorize a technical committee be formed to study the taxing of services during the interim.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.