Nevada’s Economic Forum projects $11.4 billion in tax revenue, billions higher than prior forecast
Nevada Gov.-elect Joe Lombardo reiterated his pledge not to increase taxes after seeing the state’s tax revenue forecast on Monday.
The nonpartisan Economic Forum committee projected $11.4 billion in tax revenue, and the funds would be available for the 2023-25 biennium. That’s just over $2 billion higher than the forecast made for the 2021-23 biennium. The Economic Forum is responsible for forecasting the state’s general fund revenue for the two-year budget.
Economic analysts pointed to sales tax from continued pent-up tourism demand following the COVID-19 pandemic, casino gambling tax revenue, along with live entertainment taxes and visitor spending on upcoming events like the Super Bowl in Las Vegas.
“Vegas always seems to find a way to bring the shows and the events to town, to drive this higher,” said Economic Forum Chair Linda Rosenthal.
The revenue could drop if the economy slows or goes into a recession, and people might spend less due to high inflation.
Outgoing Democratic Gov. Steve Sisolak will hand over the reins to Republican Lombardo, who will use the forecast to prepare budget recommendations for the majority Democrat state legislature, which meets in February.