Mailstop 0032 Reno, Nevada 89557-0032

Phone: (775) 784-1771 Fax: (775) 784-4337

November 4, 2015
Mike Kazmierski
EDAWN
5190 Neil Road
#110
Reno, NV 89502
RE: Fiscal Impact on Families Resulting From a $0.005 Increase in Washoe County Sales Tax Rate
The below analysis summarizes the estimate, method, and sources for the amount of additional
expenditures per family of four resulting from a $0.005 increase in the sales tax rate.
Median family income of a four-person family (US Census Bureau, 2014 American Community Survey,
Washoe County):
$75,564
Percent of income before taxes spent on taxable sale purchases for a four-person family (Bureau of
Labor Statistics, 2014 Consumer Expenditure Survey, US)1:
23.3%
Annual average amount of taxable sale purchases for a four-person family with median family income:
$17,637.20
Current Washoe County sales tax rate:

7.725%

Annual average amount of sales tax revenue contributed by a four-person family with median family
income at the current Washoe County sales tax rate2:
$1,362.47
Proposed Washoe County sales tax rate:

8.225%

Annual amount of sales tax revenue contributed by a four-person family with median family income at
the proposed Washoe County sales tax rate2:
$1,450.66
Annual average difference in sales tax revenue contributed by a four-person family with median family
income between current and proposed Washoe County sales tax rates3:
$88.19
1.
2.
3.

See Accompanying BLS Table 1400 for complete list of annual average expenditures by type and size of consumer unit (households),
and expenditures identified as taxable sales items.
Assumes all expenditures are made in Washoe County only.
Assumes all expenditures are made in Washoe County only. Actual difference is dependent on how price increases will affect
demand (price elasticity). Price increases may change purchasing behaviors, increase online purchases, and increase purchases in
counties with lower sales tax rates, especially for major items.

The table below estimates the amount of taxable sales contributed by visitors to Washoe County:

Impact on Families Resulting From an Increase in Sales Taxes

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% of Washoe County Taxable Sales Contributed by Visitors

2014 Visitor Count to Washoe County 1

4,631,195

Taxable Spending per Visitor per Day 2

201

Total Taxable Sales Made by Visitors

930,870,195

Total CY2015 Taxable Sales in Washoe County 3

6,817,588,648

% of Washoe County Taxable Sales Made by Visitors 4

13.7%

1. RSCVA estimates that reflect total "visitor days" (unique visitors X length of stay).
2. As reported by the 2013 Visitor Profile (RSCVA) for shopping ($116) and food & drink ($85).
Assumes all food & drink is taxable "food aw ay from home".
3. Nevada Department of Taxation
4. Assumes 100% of visitor expenditures are spent in Washoe County.

Contact Brian Bonnenfant for questions related to calculations, methods, or sources used in the above
analysis.

Impact on Families Resulting From an Increase in Sales Taxes

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