Background & Overview

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1 EXHIBIT C Senate Committee on Revenue and Economic Development Date: Total pages: 69 Exhibit begins with: C1 thru: C69

2 Background & Overview Applied Analysis was retained by the Local Government Fiscal Working Group to review and analyze issues related to Nevada s tax system, including, without limitation, those specific to ad valorem (property) taxes. During the past 18 months, Applied Analysis obtained and analyzed parcel-level data from the Clark County Assessor s Office and the Washoe County Assessor s Office to develop an economic model to test tax collection sensitivity under various scenarios. Concurrently, the Local Government Fiscal Working Group identified and evaluated both longterm and short-term issues related to the state s property tax system. This presentation provides a primer on how property tax works in Nevada as well as some of the present challenges identified during our analysis. C2

3 Part I - Understanding Nevada s Ad Valorem Tax System Part II - How Did We Get To This Point? Part III - Where Are We Now? Part IV - What Are The Practical Implications? Part V - Where Do We Go From Here? C3

4 PART I - UNDERSTANDING NEVADA S AD VALOREM TAX SYSTEM Part II - How Did We Get To This Point? Part III - Where Are We Now? Part IV - What Are The Practical Implications? Part V - Where Do We Go From Here? C4

5 Part I Understanding Nevada s Ad Valorem (Property) Tax System C5

6 The Foundation C6

7 The Nevada State Legislature is given the authority to provide [f]or a uniform and equal rate of assessment and taxation secure a just valuation for the taxation of all property exempting mines and mining claims, the proceeds alone which shall be exempted by law for municipal, education, literary, scientific, religious or charitable purposes. -- Nevada Constitution, Article X (1864) C7

8 Tax Base & Tax Rates Determination of Taxable Value (Tax Base) Land: Full cash value Improvements: Replacement cost less depreciation at 1.5 percent per year for up to 50 years Assessment Rate: 35% of Taxable Value Tax Rates Vary by jurisdiction Legislatively imposed cap: $3.64 per $100 of assessed value* Constitutionally imposed cap: $5.00 per $100 of assessed value C8 *Note: The state imposes an additional $0.02 outside of the cap, making the effective cap $3.66.

9 The Calculation C9

10 Taxable Value Market Value C10

11 A Typical Home ($150,000) Taxable Value $150,000 Assessment Ratio Assessed Value Taxable Rate / $100 35% $52,500 $ Property Taxes Due $1,522 C11

12 Property Tax Calculation Summary Typical $150,000 Home Year 1 $50,000 $100,000 $$150,000 Year 2 $51,250 $102,500 $(1,538) $152,213 Year 3 $52,531 $105,063 $(3,152) $154,442 Year 4 $53,845 $107,689 $(4,846) $156,688 Year 5 $55,191 $110,381 $(6,623) $158,949 Year 51 $171,855 $343,711 $(257,783) $ 257,783 35% 35% 35% 35% 35% 35% Assessed Value $52,500 $53,274 $54,055 $54,841 $55,632 $90,224 Tax Rate (Per $100 of Value) $ $ $ $ $ $ $1,522 $1,544 $1,567 $1,590 $1,612 $2, % 1.00% 0.99% 0.98% 0.97% 0.51% Cash Value of Land* Repl. Cost of Improvements* Less: Depreciation Factor Total Taxable Value Assessment Rate Resulting Tax Liability Effective Tax Rate (Tax Liability as a Share of Taxable Value Before Depreciation) C12 *Note: For illustrative purposes, assumes an annual growth rate of 2.5 percent for land and improvements.

Policy Underpinnings Nevada is the only state in the United States that applies a depreciation factor to residential buildings (improvements) for property

13 Policy Underpinnings Nevada is the only state in the United States that applies a depreciation factor to residential buildings (improvements) for property tax calculations States With a Depreciation Deduction for Real Property Improvements States Without a Depreciation Deduction for Real Property Improvements C13

14 Overlapping Tax Rates C14

15 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C15

16 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C16 Counties

17 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C17 Schools

18 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C18 Cities

19 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C19 Special Purpose

20 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C20 Higher Ed

21 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C21 State

22 Overlapping Tax Rates CLARK COUNTY CAPITAL CLARK COUNTY FAMILY COURT CLARK COUNTY GENERAL OPERATING COUNTY SCHOOL DEBT (BONDS) COUNTY SCHOOL MAINTENANCE & OPERATION HENDERSON CITY HENDERSON CITY DEBT HENDERSON CITY LIBRARY INDIGENT ACCIDENT FUND MEDICAL ASST TO INDIGENT PERSONS STATE COOPERATIVE EXTENSION STATE OF NEVADA COMBINED RATE C22 State State

Although nearly all levels of government are affected by property tax collections, Nevada K-12 schools are the single largest beneficiary of the property tax by a significant margin.

1700 Clark County Capital: $0.0500 Clark County Family Court: $0.0192 County Operations: $0.4599 $180 $435 School District Debt: $0.5534 $86 $1,339 School District Operations: $0.

23 Although nearly all levels of government are affected by property tax collections, Nevada K-12 schools are the single largest beneficiary of the property tax by a significant margin. Distribution of Property Tax Rates for a Single Entity (City of $2.8985/$100 of Assessed Value) Projected Property Tax Revenues Statewide, FY , in millions State of Nevada $ Clark County Capital: $ Clark County Family Court: $ County Operations: $ $180 $435 School District Debt: $ $86 $1,339 School District Operations: $ $401 Henderson Operations: $ $897 Schools Towns Counties Special Districts Henderson Debt: $ Cities State Henderson Libraries $ Other: $ C23 Source: Nevada Department of Taxation, Redbook; Clark County Treasurer

24 The Abatements C24

25 3% Annually 8% Annually C25

26 County Moving Avg. Growth Rate CPI Change Residential Cap[1] General Cap[2] Carson City -0.6% Churchill 1.9% 1.9% 1.9% Clark -2.7% Douglas -1.7% Elko 6.4% 3.0% 6.4% Esmeralda 6.8% 3.0% 6.8% Eureka 5.0% 3.0% 5.0% Humboldt 6.3% 3.0% 6.3% Lander 25.0% 3.0% 8.0% Lincoln 6.9% 3.0% 6.9% Lyon - Mineral 7.1% 3.0% 7.1% Nye -0.1% Pershing 5.5% 3.0% 5.5% Storey 2.9% 2.9% 2.9% Washoe 0.0% White Pine 1.5% 1.5% 1.5% Statewide -2.1% C26 Fiscal Year Tax Cap Factors [1] Residential cap cannot be greater than commercial. [2] Commercial is the lower of 8% or the greater of 10yr average AV or 2x CPI. Source: Nevada Department of Taxation

27 Clark County Abatement Caps History FY Residential [1] Commercial [2] 10yr AV CPI 2x CPI % 8.0% 12.6% 2.7% 5.4% % 8.0% 15.7% 3.4% 6.8% % 8.0% 16.9% 3.2% 6.4% % 8.0% 15.8% 2.9% 5.8% % 8.0% 11.1% 3.8% 7.7% % 8.0% 8.6% -0.4% -0.8% % 6.3% 6.3% 1.6% 3.2% % 6.4% 4.4% 3.2% 6.4% % 4.2% 3.3% 2.1% 4.2% % 3.0% 1.4% 1.5% 3.0% % 3.2% -1.8% 1.6% 3.2% % 0.1% [1] Residential cap cannot be greater than commercial. [2] Commercial is the lower of 8% or the greater of 10yr average AV or 2x CPI. C27 Source: Nevada Department of Taxation

28 Other Important Concepts Real vs. Personal Property Centrally Assessed Property Net Proceeds of Mines Redevelopment Property Tax Appeals Property Tax Collection Allowances C28

29 Part I - Understanding Nevada s Ad Valorem Tax System PART II - HOW DID WE GET TO THIS POINT? Part III - Where Are We Now? Part IV - What Are The Practical Implications? Part V - Where Do We Go From Here? C29

30 Part II How Did We Get To This Point? C30

31 C31

1864 The basis for the taxation of property in Nevada is established by the second Constitutional Convention of Nevada and ratified by the people

Consisting of one paragraph, it gave the Legislature the authority to provide for a uniform and equal rate of assessment and taxation secure a

32 1864 The basis for the taxation of property in Nevada is established by the second Constitutional Convention of Nevada and ratified by the people of the territory as Article 10. Consisting of one paragraph, it gave the Legislature the authority to provide for a uniform and equal rate of assessment and taxation secure a just valuation for the taxation of all property excepting mines and mining claims, the proceeds alone which shall be taxed and also excepting such property as may be exempted by law for municipal, education, literary, scientific, religious or charitable purposes. C32

33 1962 Voters approve privilege tax in place of personal property tax on motor vehicles. C33

34 1979 A statutory cap on the property tax rate is set at $3.64 per $100 of assessed value. State property tax levy eliminated. C34

35 1981 Year of the Tax Shift. Primary revenue source of local governments shifted from property tax to sales tax. Property tax revenue to local governments capped at 4.5% increase annually. Buildings are depreciated at the rate of 2%. Value no longer based on market. C35

36 1983 State levies property tax rate of 5 per $100 of assessed value for debt service. Property tax for schools operating increases 25 to 75. Depreciation of buildings reduced to 1.5%. C36

37 1991 Fair Share bill enacted to correct inequities in 1981 Tax Shift plan. C37

38 2005 Property tax abatement program is established. Owner-occupied single family homes and residential rental property with rents at or below HUD fair market rents are capped at a maximum of 3% over the amount of the previous year s tax bill. All other property is capped at the current year plus 9 prior years of CPI or 8%, whichever is greater, over the amount of the previous year s tax bill. The caps do not apply to new construction for the first year. C38

39 2007 Common-interest community property assessment procedures are changed. The partial abatements (tax caps) for non-owner occupied properties and non HUD rental units is limited to ensure the abatement is not less than 0% nor more than 8%. The $5,000 limit on exemptions of personal property taxes for lodges and charitable organizations is repealed; and an exemption is added for land owned by the Archaeological Conservancy. C39

40 2015 C40 A constitutional amendment is requested (SJR13) to change the valuation of property from taxable value to cash value (market value). This measure must be approved again by the 2017 legislature before it can be placed on the 2018 general election ballot.

A new property tax system must be considered which will allow relief to the residents whose property tax values have increased to such an extent as to jeopardize their ability to continue to live in

threaten their ability to continue living in their homes during the next 2 years while the Legislature studies our current property tax statutes to determine the appropriate remedy to the current

41 A new property tax system must be considered which will allow relief to the residents whose property tax values have increased to such an extent as to jeopardize their ability to continue to live in their homes (Section 1 (9)) The provisions of this act are necessary to ensure that the property owners of this State are protected from severely spiking property tax bills that will otherwise threaten their ability to continue living in their homes during the next 2 years while the Legislature studies our current property tax statutes to determine the appropriate remedy to the current property tax crisis. (Section 1 (11)) State and local governments provide critical services to the residents of the State and must be assured of sufficient revenue to fund such services, including, without limitation, police and fire protection, welfare services, and educational services and facilities. (Section 1 (7)) C41

42 Part I - Understanding Nevada s Ad Valorem Tax System Part II - How Did We Get To This Point? PART III - WHERE ARE WE NOW? Part IV - What Are The Practical Implications? Part V - Where Do We Go From Here? C42

43 Part III Where Are We Now? C43

44 Nevada Property Tax Collection Trend Fiscal Years Billions Property Tax Collections $5.0 Boom: $4.5 Assessed Value: +106% Property Taxes: +57% Abatement: $3.3B $4.0 Property Tax Abatement Bust: Recovery: Assessed Value: -43% Property Taxes: -31% Abatement: $0.9B $3.5 Assessed Value: +26% Property Taxes: +12% Abatement: $1.8B $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 '05 '06 '07 '08 Note: FY 2006 does not include projected property tax collections or abatements for the state portion, as the Redbook did not report them for that year. '09 '10 '11 C44 '12 '13 '14 '15 '16 '17 Source: Nevada Department of Taxation, Redbook

45 Nevada Property Tax Collection Trend Fiscal Years Billions Property Tax Collections Property Tax Abatement $5.0 Current property tax collections are approaching FY 2007 levels. $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 '05 '06 '07 '08 Note: FY 2006 does not include projected property tax collections or abatements for the state portion, as the Redbook did not report them for that year. '09 '10 '11 C45 '12 '13 '14 '15 '16 '17 Source: Nevada Department of Taxation, Redbook

46 +15.2% +0.8% +25.3% +11.8% Population Employment Personal Income -3.5% Property Tax Collections Since FY 2007 C46 K-12 Enrollment

47 Nevada Personal Income vs. Property Tax Collections Fiscal Years, 2000=100 Personal Income Property Tax Collections Since FY 2000, personal income has grown 102%, while property tax collections have only increased 87% '00 '01 '02 '03 '04 '05 Note: FY 2006 does not include projected property tax collections or abatements for the state portion, as the Redbook did not report them for that year. '06 '07 '08 C47 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation, Redbook; U.S. Bureau of Economic Analysis

48 Nevada Property Tax Collection Trend Fiscal Years Billions Property Tax Collections Property Tax Abatement $5.0 Between FY 2005 and FY 2017, property tax collections have grown 21.4 percent. $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 '05 '06 '07 '08 Note: FY 2006 does not include projected property tax collections or abatements for the state portion, as the Redbook did not report them for that year. '09 '10 '11 C48 '12 '13 '14 '15 '16 '17 Source: Nevada Department of Taxation, Redbook

49 Nevada Property Tax Collection Trend Billions Fiscal Years $4.0 Property Tax Collections (Totals) 25% 20% $3.5 $272.3 M $3.0 $2.0 $1.5 $0.5 15% 10% $2.5 $1.0 Property Tax Collections (Annual Growth) 5% 3.9% 0% 2.3% -5% Property Tax Collections -10% Property Tax Collections With Inflation & Population Impacts -15% $0.0 Property Tax Collections Inflation and Population Growth (Combined) -20% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 C49 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Source: Nevada Department of Taxation, Redbook; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Applied Analysis

50 Property Tax Revenues Per Capita Inflation Adjusted, 2000=100 Washoe County '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 $816 $813 $830 $842 $885 $882 $878 $915 $931 $998 $950 $866 $773 $725 $710 $711 $723 $634 $655 $660 $698 $714 $752 $714 $841 $923 $1,007 $922 $738 $642 $569 $543 $554 $560 Clark County C50 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation, Redbook; Clark County Comprehensive Planning; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Applied Analysis

51 Property Tax Revenues Per Housing Unit Inflation Adjusted, 2000=100 '09 '10 $1,981 '08 $2,284 '07 '11 '12 $1,709 '06 $1,682 C51 $1,670 '16 $1,697 '15 $1,790 '14 $2,135 '13 $2,088 $1,573 '12 $1,460 '11 $1,413 '10 $1,369 '09 $2,001 $2,305 $2,538 $1,777 '08 $1,413 '07 $2,336 $2,182 $1,855 '06 $2,167 Washoe County Clark County '13 '14 '15 '16 Source: Nevada Department of Taxation, Redbook; Clark County Comprehensive Planning; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Applied Analysis

52 Property Tax Revenues Per Student Inflation Adjusted, 2000=100 $5,151 $5,039 $4,963 $5,037 $5,330 $5,908 $6,421 $6,524 $6,014 $5,704 $5,439 $5,606 $3,864 $3,740 $3,626 $3,771 $4,186 $4,688 $5,577 Washoe County $6,071 $6,498 $5,941 $5,489 $4,678 $4,860 $4,655 Clark County '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 C52 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Nevada Department of Taxation, Redbook; Nevada Report Card; U.S. Bureau of Labor Statistics; Applied Analysis

53 Nevada Property Tax Collections vs. Abatements Fiscal Years Historical Property Tax Abatements $4.0 Billions Billions Historical Property Tax Collections $3.5 $ % $2.5 $2.0 $1.2 $1.0 $ % $0.6 $1.5 $0.4 Note: Property tax abatements were not $0.2 implemented until FY $0.0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 $1.0 $0.5 $0.0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Note: FY 2006 does not include projected property tax collections or abatements for the state portion, as the Redbook did not report them for that year. C53 Source: Nevada Department of Taxation, Redbook

54 Part I - Understanding Nevada s Ad Valorem Tax System Part II - How Did We Get To This Point? Part III - Where Are We Now? PART IV - WHAT ARE THE PRACTICAL IMPLICATIONS? Part V - Where Do We Go From Here? C54

55 Part IV What Are The Practical Implications? C55

56 Abatement Distribution Fiscal Year 2017 $700 Million in Property Taxes Abated Means $700 Million in Taxpayer Savings C56

57 Abatement Distribution Fiscal Year 2017 State (Other) 5% $700 Million in Property Taxes Abated Means $700 Million in Reduced Public Funding, Particularly for Schools Towns 3% Special District 13% Schools 40% Cities 13% Counties 26% C57

58 Abatement Distribution by Land Use Land Use Vacant Taxes as Assessed Amount Abated Share Abated $82,923,312 $29,067, % $1,485,033,512 $377,518, % $69,879,594 $11,900, % $493,976,692 $102,192, % Non-Profit Community Facilities $4,321,717 $698, % Agriculture, Ranching & Wildlife $192,306 $12, % Transportation, Communication & Utilities $4,000,660 $619, % Minor Improvement $8,248,590 $2,378, % Other $12,748,865 $4,375, % Total $2,161,325,249 $528,762, % Residential Industrial Commercial C58 $610 Typical Single-Family Household Abatement Source: Clark County Treasurer; Clark County Assessors Office; Applied Analysis

59 Examples of Resort Property Valuation Reductions (2010) 95% 93% 85% 85% 58% 46% 44% 39% C59 Source: Las Vegas Sun/Clark County Assessors Office

60 Clark County Resort Corridor Properties Tax Collections as a % of County-wide Collections Fiscal Years 26% 24% 22% 22.9% 23.5% 22.1% 21.3% 21.5% 21.6% 21.2% 20.5% 20.3% 20% Resort Corridor property tax collections have remained relatively stable as a percentage of overall tax collections in Clark County. 18% 16% 14% 12% 10% '09 '10 '11 '12 '13 C60 '14 '15 '16 '17 Source: Clark County Treasurer

61 Clark County Resort Corridor Properties Abatements as a % of County-wide Abatements Fiscal Years 70% 59.5% 60% 50% 45.9% 39.3% 40% 30% 37.0% % 24.6% 20% 20.5% 19.6% '16 '17 10% 0% '09 '10 '11 '12 '13 C61 '14 '15 Resort Corridor property tax abatements currently account for less than 20 percent of all abatements in Clark County, which is in line with resort property assessed values as a percentage of County-wide value. Source: Clark County Treasurer

62 Clark County Resort Corridor Properties 20.3% Property Tax Collections as a Share of County- Wide Collections 19.6% Property Tax Abatements as a Share of County- Wide Abatements C62 Source: Clark County Treasurer

63 Part I - Understanding Nevada s Ad Valorem Tax System Part II - How Did We Get To This Point? Part III - Where Are We Now? Part IV - What Are The Practical Implications? PART V - WHERE DO WE GO FROM HERE? C63

64 Part V Where Do We Go From Here? C64

65 Key Takeaways The amount of the abatement will continue to increase. This will continue to put strain on the state s tax systems and acutely impact programs such as education and public safety. Over the longer-term, this will require the state and local governments to do more with less (e.g., increasing class sizes), find alternative revenue sources (e.g., sales tax and commerce tax) or reduce public services. Are we in the middle of the second major tax shift in Nevada s history? C65

66 Case in Point: 2015 Revenue Reforms $1.2 B $1.2 B Revenue Enhancements Approved by the Legislature for the Biennium Property Taxes Abated for the Biennium C66 Source: Legislative Counsel Bureau, Nevada Legislative Appropriations Report (November 2015); Nevada Department of Taxation, Redbook

67 Case in Point: AB1 Police Protection $36 M 310 Officers $35 M 300 Officers Impact of the Property Tax Caps on the Las Vegas Metropolitan Police Department Impact of 0.1% Sales Tax Increase Passed as Assembly Bill 1 during the 30th Special Session of the Nevada State Legislature (2016) C67 Source: Las Vegas Metropolitan Police Department; Applied Analysis

68 Flexibility Simplicity Equity Ease of Compliance Political Viability Integration C68

69 C69

Background & Overview

Background & Overview Applied Analysis was retained by the Local Government Fiscal Working Group to review and analyze issues related to Nevada s tax system, including, without limitation, those specific