COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3161H.01I Bill No.:HB 1572 Subject:Taxation and Revenue - Sales and Use; Motels and Hotels; Cities, Towns, and
Villages
Type:Original Date:April 8, 2025Bill Summary:This proposal authorizes the city of Nevada to impose a sales tax for public
safety.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue*$0$0 or up to $7,596**$0 or up to $11,622Total Estimated Net
Effect on General
Revenue $0$0 or up to $7,596**$0 or up to $11,622
*Represents the potential 1% Department of Revenue collection fee, if voters approve the sales
tax(es).
** The estimated fiscal impact for fiscal year 2027 is lesser because FY 2027 is a partial year (8
months).
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3161H.01I
Bill No. HB 1572
Page 2 of
April 8, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028City of Nevada*
$0
$0 or up to
$752,017**
$0 or up to
$1,150,586
Local Government
$0
$0 or up to
$752,017**
$0 or up to
$1,150,586
*Pending voter approval.
** The estimated fiscal impact for fiscal year 2027 is lesser because FY 2027 is a partial year (8
months). L.R. No. 3161H.01I
Bill No. HB 1572
Page 3 of
April 8, 2025
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FISCAL ANALYSIS
ASSUMPTION
Section 94.900 - Public Safety Sales Tax for the City of Nevada
Officials from the Office of Administration - Budget and Planning (B&P) note Section
94.900.1(1)(n) - B&P defers to the local government in the City of Nevada for the fiscal impact.
DOR’s retained collection fee will increase TSR because DOR will be able to collect its 1%
administration fee for handling the collection of the tax. B&P defers to DOR for more specific
estimates of actual collection costs.
Officials from the Department of Revenue (DOR) note the legislation states any city with more
than eight thousand but fewer than nine thousand inhabitants and that is a county seat of a county
with more than nineteen thousand but fewer than twenty-two thousand inhabitants can impose a
sales tax for public safety services. DOR believes that the City of Nevada is the one allowed the
sales tax.
DOR records show that the City of Nevada has taxable sales of:
Fiscal Year Jul-SeptOct-DecJan-MarApril- JuneTotal2020$38,208,695 $44,612,841 $43,665,437 $42,989,998 $169,476,971 2021$43,931,887 $49,116,769 $46,410,826 $48,826,592 $188,286,074 2022$43,446,518 $51,704,817 $51,124,402 $52,879,022 $199,154,759 2023$48,624,132 $53,461,870 $51,767,032 $56,676,505 $210,529,539
The Department notes this proposal allows a one-half of one percent sales tax. Using the taxable
sales and a 2% inflation rate in the future, DOR calculated the amount that Nevada would
collect, and the fee retained by DOR as:
Fiscal YearTotal SalesTotal CollectionsDOR 1% FeeFinal Collection2026$223,415,631$1,117,078$11,171$1,105,9072027$227,883,943$1,139,420$11,394$1,128,0262028$232,441,622$1,162,208$11,622$1,150,586
DOR notes that this proposal would become effective on August 28, 2025, and the first election
this issue could be presented to the voters would be the April 2026 general municipal election.
This sales tax would become effective on the first day of the second calendar quarter after the
director of revenue receives notice of the adoption of the sales tax, which is estimated to be
October 1, 2026 (FY 2027) if adopted by the voters. Sales tax is remitted one month behind
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months. L.R. No. 3161H.01I
Bill No. HB 1572
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April 8, 2025
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Nevada1/2 of 1% Tax Fiscal YearDOR 1%Local Collection2026$0 $0 2027 (8 months)$7,596$752,0172028$11,622$1,150,586*Effective Date 8/28/2025
If any city passes a sales tax the Department will need to make changes to the department’s
Revenue Premier system, Rate Manager system, MyTax portal system, Avalara Sales and use tax
rate map, and website changes. These changes are estimated at $1,832 per system change
($7,328) per city that passes the sales tax.
Oversight notes the DOR requests one-time cost for website income-tax changes and updates to
comply with the proposed language; however, Oversight notes that DOR receives appropriation
for routine website updates and will not show those costs in the fiscal note.
Oversight will range the fiscal impact from $0 (not approved by voters) up to the estimates
calculated by the Department of Revenue for the fiscal impact to general revenue and local
political subdivisions.
FISCAL IMPACT – State GovernmentFY 2026FY 2027
(8 Mo.)
FY 2028GENERAL REVENUEPotential Revenue Gain - §94.900 -
DOR 1% Collection Fee, if approved
by voters$0
$0 or up to
$7,596
$0 or up to
$11,622
ESTIMATED NET EFFECT ON
GENERAL REVENUE$0
$0 or up to
$7,596
$0 or up to
$11,622 L.R. No. 3161H.01I
Bill No. HB 1572
Page 5 of
April 8, 2025
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FISCAL IMPACT – Local GovernmentFY 2026FY 2027
(8 Mo.)
FY 2028CITY OF NEVADAPotential Revenue Gain - §94.900 -
Public Safety Sales Tax if approved by
voters $0
$0 or up to
$752,017
$0 or up to
$1,150,586
ESTIMATED NET EFFECT ON
CITY OF NEVADA$0
$0 or up to
$752,017
$0 or up to
$1,150,586
FISCAL IMPACT – Small Business
Small businesses in the city of Nevada would be impacted if the new tax is approved by voters.
FISCAL DESCRIPTION
Current law authorizes certain cities to impose a sales tax of up to 0.5% for the purpose of
improving public safety. This bill adds any city with a population between 8,000 and 9,000
inhabitants, that is the county seat of a county with a population between 19,000 and 22,000
inhabitants to this authorization.
Upon enactment, this will apply to the City of Nevada.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Julie MorffJessica HarrisDirectorAssistant DirectorApril 8, 2025April 8, 2025