COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3050S.01I Bill No.:SB 749 Subject:Taxation and Revenue - Sales and Use Type:Original Date:March 4, 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. 3050S.01I
Bill No. SB 749
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March 4, 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 2028Local 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. 3050S.01I
Bill No. SB 749
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March 4, 2025
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FISCAL ANALYSIS
ASSUMPTION
Section 94.900 - City of Nevada Public Safety Sales Tax
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 $38,208,695 2021$43,931,887 $49,116,769 $46,410,826 $48,826,592 $43,931,887 2022$43,446,518 $51,704,817 $51,124,402 $52,879,022 $43,446,518 2023$48,624,132 $53,461,870 $51,767,032 $56,676,505 $48,624,132
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.
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 L.R. No. 3050S.01I
Bill No. SB 749
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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 assumes the Department of Revenue is provided with core funding to handle a certain
amount of activity each year. Oversight assumes DOR could absorb the costs related to this
proposal. If multiple bills pass which require additional staffing and duties at substantial costs,
DOR could request funding through the appropriation process.
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
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. L.R. No. 3050S.01I
Bill No. SB 749
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FISCAL DESCRIPTION
Current law authorizes certain cities to impose a sales tax at a rate of 0.5% for the purpose of
improving public safety. This act adds the city of Nevada to such list of cities.
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
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 4, 2025March 4, 2025