APPENDIX Report of the State of Nevada Economic Forum

Transcription

1 269 APPENDIX Report of the State of Nevada Economic Forum Forecast of Future State Revenues December 1, 2010

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3 271 STATE OF NEVADA ECONOMIC FORUM OF FUTURE STATE REVENUES December 1, 2010

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9 277 REPORT TO THE GOVERNOR AND THE LEGISLATURE ON FUTURE STATE REVENUES December 1, 2010 Senate Bill 23 (1993) provided for the creation of an Economic Forum to forecast future state General Fund revenues. The Forum, a panel of five representatives from the private sector with backgrounds in economics, business, and taxation, is required to adopt an official forecast of unrestricted General Fund revenues for the biennial budget cycle. All agencies of the state, including the Governor and the Legislature, must use the Forum's forecast. A seven-member Technical Advisory Committee made up of Executive and Legislative Branch staff members as well as a representative of local government was also created in S.B. 23 to provide assistance and resources to the Forum. The Forum must present its forecast to the Governor and the Legislature by December 1, 2010, and any required revisions by May 1, This report includes the December 1, 2010, forecast of unrestricted General Fund revenues for Fiscal Years , and Methodology and Procedures Governor Gibbons appointed the five members of the Economic Forum in 2010 for a two-year term. These appointments include two members nominated by the leadership of the Senate and Assembly. The Forum has since met in open meeting three times on September 29, 2010; November 5, 2010; and December 1, 2010, to complete its assigned responsibilities and duties regarding the approval of forecasts of unrestricted General Fund revenues for Fiscal Years , , and

10 278 The first meeting of the Forum on September 29, 2010, was devoted to organizing and reviewing the assigned task; reviewing the accuracy of forecasts prepared in December 2008, May 2009, and January 2010; reviewing historical taxable sales and gaming market statistics; and determining a course of action for future meetings. At that time, the Forum directed the Technical Advisory Committee to prepare forecasts for non-major revenues based on projections by individual state agencies, the Budget Division of the Department of Administration and the Fiscal Analysis Division of the Legislative Counsel Bureau. The Forum also requested that the economic assumptions underlying the projections for major revenues be provided. In addition, the Forum solicited information from others known to develop such data and asked for commentary from economic experts not directly involved in the forecasting process. In response to this request, the Budget Division and the Fiscal Analysis Division provided projections and economic analyses for seven major General Fund revenues at the second meeting of the Forum on November 5, The Department of Taxation, Gaming Control Board, and Nevada Commission on Tourism also provided projections and economic analyses concerning the major revenues they have the responsibility to collect. The Forum also received forecasts of all non-major General Fund revenues developed by the Technical Advisory Committee for the Forum s review and consideration. In addition to the state agency information, the Economic Forum received forecasts of gaming percentage fees and sales taxes and state and national economic outlook from Augustine Faucher and Daniel White from Moody s Analytics, an economic and information consulting firm under contract with the state. Other public and private experts provided various economic analyses to the Forum on the current and future outlook for the state s employment and economic situation, including Bill Anderson, Chief Economist, Research and Analysis Bureau, Nevada Department of Employment, Training, and Rehabilitation; Jeff Hardcastle, Nevada State Demographer; Alan Schlottman, Professor of Economics, University of Nevada, Las Vegas; Brian Bonnenfant, Project Manager, Center for Regional Studies, University of Nevada, Reno; and Thomas Harris, Director, Center for Economic Development, University of

11 279 Nevada, Reno. These presentations provided the Economic Forum information on the outlook for the national, state, and local economies, which the Forum used to evaluate the General Fund revenue forecasts that were prepared and presented at the November 5 meeting. The Economic Forum reviewed the forecast information and requested that updated forecasts and information be provided at the meeting on December 1, At its December 1, 2010, meeting, the Economic Forum received updated information on the national and state economic outlooks from Daniel White from Moody s Analytics, and on the state employment outlook from Bill Anderson, Nevada Department of Employment, Training, and Rehabilitation. The Forum also received updated forecasts from the Department of Taxation, Gaming Control Board, Nevada Commission on Tourism, the Budget Office, the Fiscal Analysis Division, the Technical Advisory Committee and Moody s, which were used to produce the binding forecast of all unrestricted General Fund revenue. A copy of the Economic Forum s official December 1, 2010, forecast is provided in the attached table. A final meeting of the Forum will be scheduled during the 76 th Legislative Session, on or before May 1, 2011, to make any necessary revisions to the December 1, 2010, forecast. Economic Review: Although the National Bureau of Economic Research did not determine that the Great Recession officially began until December 2007, the signs of growing weakness in the U.S. economy were apparent well before then. The expansion of the U.S. economy that was prevalent through much of the first half of the decade showed signs of weakness beginning as early as 2005 and These effects were largely attributed to weaknesses in the housing market, but quickly began to affect other sectors of the economy, as growth in employment, wages, and GDP began to slow in 2006 and Although it was clear from the outset that corrections in the housing market would cause other negative effects on economic conditions throughout the US, the depth and the breadth of the Great Recession were greater than anticipated.

12 280 TABLE 1. ANNUAL GROWTH IN ECONOMIC INDICATORS CALENDAR YEARS U.S. Real GDP Employment (Total Nonfarm) Wage Growth Personal Income Consumer Price Inflation Fuels & Utilities Housing Starts Oil ($ per barrel) $66 $72 $100 $62 Nevada Gross State Product Employment (Total Nonfarm) Personal Income Wage Growth Housing Starts Las Vegas Visitors Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, Census Bureau, Nevada Department of Employment, Training and Rehabilitation, Las Vegas Convention and Visitors Authority After a few years of weak growth, real Gross Domestic Product (GDP) growth was actually flat in 2008, with downturns in the construction, manufacturing, finance, and insurance sectors being key contributors. Real GDP growth was -2.6 percent in 2009, which was the first annual decrease in real GDP since Although employment declined in 2008, wages paid to employees actually increased by 2.1 percent that year, while personal income increased by 4.0 percent. In 2009, both employment and wages decreased by 4.3 percent in 2009; however, personal income decreased by only 1.7 percent. One of the factors contributing to personal income being stronger than wages is the increase in transfer payments received as a result of federal extensions of unemployment benefits signed by President Bush in June 2008 and November 2008, and by President Obama in February 2009 and November The relationship between employment, wages, and personal income in Nevada followed the same pattern as the U.S. economy, but was even more severe than was seen nationally. For 2008, employment decreased by 2.2 percent and wages decreased by

13 percent; however, personal income actually increased by 1.1 percent. In 2009, employment decreased by 9.1 percent and wages decreased by 9.5 percent, but personal income only decreased by 5.0 percent. The difference in growth rates between employment, wages, and personal income in Nevada is also due to transfer payments, which increased by 12.6 percent in 2008 and 18.7 percent in The Consumer Price Index (CPI), which measures the increase in consumer prices, increased by 2.9 percent in 2007 and by 3.8 percent in The increases in 2008 were largely attributable to significant increases in energy costs, with the CPI measuring fuels and utilities increasing by 9.7 percent in Fears of inflation in 2008 quickly turned to fears of deflation in 2009, though, with the CPI for all items decreasing by 0.3 percent. Decreases in prices during 2009 were largely caused by decreases in energy costs the price of a barrel of oil, for example, decreased from $100 in 2008 to $62 in 2009 as well as a decrease in demand for US-made products as the Great Recession took hold worldwide. The housing market continued to deteriorate during 2007 and 2008, with existing home sales reaching levels not seen since the mid-1990s, the sale of new homes at levels not seen since the mid-1980s, and new housing starts at their lowest rates in nearly 50 years. Combined with record levels of foreclosures in the residential market, this decreased demand led to continued falling prices, especially in states such as California, Nevada, Arizona, and Florida, which saw some of the largest appreciations in real estate during the economic expansions in the first half of the past decade. First-time homebuyer tax credits approved in 2008 and 2009 stimulated existing home sales, shown by a nationwide increase in existing single-family home sales of 5.3 percent in 2009; however, with high foreclosure levels maintained throughout 2009, home prices continued to decline in spite of the increased demand.

14 282 TABLE 2: SELECTED U.S. HOUSING MARKET STATISTICS CALENDAR YEARS New Housing Starts ( change) Average New House Price ( change) Sales of New Single-Family Homes ( change) Average Existing House Price ( change) Sales of Existing Single-Family Homes ( change) Total Mortgage Originations ( change) Total Mortgage Loans Past Due ( change) Sources: Moody's Analytics, National Association of Realtors, Office of Federal Housing Enterprise Oversight, U.S. Census Bureau, Federal Reserve Board, Mortgage Bankers' Association Nevada, which had been one of the fastest growing states and one of the most economically prosperous states throughout the expansion of the early 2000s, was one of the hardest hit states during the Great Recession. Rapid economic growth throughout the state fueled residential and non-residential construction, which in turn contributed to the housing boom that increased both the demand and the price for residential real estate throughout Nevada. The collapse of the housing market, beginning in 2006, sent shockwaves through the state s economy, not only decreasing the sales of single-family homes and the sales price of those homes that were sold, but also drastically increasing unemployment in the construction sector and the rate of foreclosures throughout the state. This collapse spread and left virtually no sector of the Nevada economy untouched, with the majority of industries and businesses affected by reduced demand and increased unemployment. A notable exception to this pattern, however, was the mining industry in rural Nevada, which continued to prosper during the Great Recession due to increased prices in gold, silver, and other minerals. The effects of the Great Recession felt throughout the U.S. also further exacerbated the depth and breadth of the recession in Nevada, as visitors to Las Vegas, as reported by the Las Vegas Convention and Visitors Authority, decreased by 4.4 percent in 2008 and

15 percent in 2009 after slightly positive increases in 2006 and The visitors who did come to Las Vegas and other tourist destinations in Nevada brought smaller budgets, which negatively affected both sales and gaming tax revenues during those years. Continued Economic Struggles in 2010 After the End of the U.S. Recession The National Bureau of Economic Research determined that the Great Recession officially ended in June 2009, eighteen months after it began. Despite the end of the recession, though, recovery throughout the U.S. and especially in harder-hit states, such as Nevada has come slowly. Moody s Analytics reported in October 2010 that only one state North Dakota is in a phase of economic expansion, that eight states Arizona, Illinois, Michigan, Mississippi, Nevada, New Mexico, Rhode Island, and Vermont are still in recession or at risk of being in recession, and that the remaining 41 states were in the recovery phase. By comparison, Moody s reported in November 2009 that only 11 states had reached the recovery phase, while the remaining states were still affected by the recession to some degree. Nationwide, signs of an extremely slow recovery have been evident. Although the rate of existing single-family home sales continues to fall nationwide, stabilization in prices, as well as small increases in new home construction, show signs of promise that the housing market may finally be beginning to stabilize. In addition, improvements in employment, real GDP, and consumer spending have yielded promise that the worst of the economic conditions may be behind them for some states, but not necessarily for other harder-hit states, such as Nevada. Some of the improvements in economic conditions are attributable to the effects of the economic stimulus approved by Congress and signed by President Obama in February A recent report by the Congressional Budget Office (CBO) estimates that, between July and September 2010, between 1.4 and 3.6 million Americans were put to work as a direct result of the American Recovery and Reinvestment Act of 2009,

16 284 and that the unemployment rate, which hit a high of 10.1 percent in October 2009, would have reached levels between 10.4 percent and 11.6 percent without the Act having been passed. Housing The housing market, which had largely been in free fall nationwide since 2005, received some temporary relief during 2008 and 2009 due, in part, to federal income tax credits for first-time homebuyers approved under the Bush and Obama administrations. The last of these tax credits, approved and enacted in November 2009, extended the $8,000 first-time homebuyer credit until April 30, 2010, and further expanded the credit to other buyers who had owned their current home for at least eight years. Nationwide, the rate of single-family home sales increased by 5.3 percent in 2009, and during the first two quarters of 2010, sales were up 11.9 percent compared to the same two quarters in In the third quarter of 2010 the first full quarter without a homebuyer tax credit in two years home sales decreased by 21.4 percent compared to the third quarter of 2009 and by 25.3 percent compared to the second quarter of Home prices, which had also been in deep decline through the Great Recession, also enjoyed a brief period of increase in the beginning of 2010, as the temporary increase in demand for homes led to a temporary increase in the average price of an existing single-family home in the U.S. For the first two quarters of 2010, the average price was 1.7 percent higher than the same two quarters in Although the average price nationwide remained relatively stable in the third quarter, a continued glut of inexpensive inventory from foreclosures and short sales are expected to cause the average price of a home to continue to decline through the end of 2010 and into New home starts continued to be weak in 2009, with only 440,000 reported nationwide, as the market continued to attempt to clear the surplus of existing homes. In 2010, however, there have been signs indicating that the weakness in new home construction may be subsiding. Though estimates are only slightly above ,000 new

17 285 homes are forecast for 2010 signs are pointing to the fact that the recovery, however slight, may be having some effect on new home construction. In Nevada one of the states that felt the real estate boom the most during the first half of the last decade the signs of recovery in the housing market have not been so evident. Like the rest of the country, existing single-family home sales in Nevada were strong in the first half of 2010 due to the federal first-time homebuyer credits, increasing by 3.3 percent compared to the first two quarters in Like the rest of the country, though, sales in the third quarter were down drastically, decreasing by 17.8 percent compared to the third quarter in 2009 and decreasing by 6.0 percent compared to the second quarter of Unlike single-family home sales, the trend for home prices in Nevada did not follow the national trend. During the first two quarters of 2010, the average price of a home in Nevada decreased by 8.1 percent, with anticipated decreases during the last two quarters of 2010 due to the significant amount of foreclosure and short-sale homes on the market driving down prices statewide. Similarly, Nevada new home completions are anticipated to decline from 6,900 in 2009 to 6,200 in 2010 based on forecasts prepared by Moody s Analytics. Inflation The rate of inflation, which had been negative in 2009, grew by a modest 1.8 percent during the first three quarters of The increase in prices seen during 2010 is largely attributable to increases in the cost of energy, which increased by 10.9 percent during this period. The price of food was relatively unaffected, though, increasing by only 0.5 percent during this period. Average crude oil prices, as measured by the West Texas Intermediate Spot rate, rose from an average of $43 a barrel in the first quarter of 2009 to an average of $76 a barrel in the third quarter of 2010, due to an increase in demand for oil spurred by improvements in the global economy. By the middle of November, the price per barrel

18 286 had reached $88 on the strength of the economic recovery in the U.S. and worldwide; however, concern regarding the impending debt crisis in Ireland, along with similar concerns for other member nations in the European Union, had reduced the price to below $84 by the end of November. The Federal Reserve, in early November, announced that it would create an additional $600 billion in U.S. currency for the purposes of repurchasing debt previously issued by the U.S. This practice, known as quantitative easing, is designed in part to further stimulate the economy, but concerns remain as to whether these actions by the Fed in order to stimulate the economy will raise inflation to excessive levels. Employment The highest U.S. unemployment rate since 1983 occurred during the third quarter of 2009, with a rate of 10.1 percent in October. The number of nonfarm employees in the U.S. during that quarter was just above 130 million, about 7.8 million fewer than were employed at the peak for employment in the first quarter of The decrease in unemployment from 10.1 percent to the most recent level of 9.5 percent in October 2010, however, resulted in only modest gains in the number of persons employed it is expected that fewer than 300,000 more persons in the U.S. were employed during the third quarter of 2010 than were employed during the third quarter of The expected gains in that four-quarter period were primarily in the education and health services sector, which added nearly 375,000 jobs; the professional and business services sector, which added 340,000 jobs; the natural resources and mining sector, which added approximately 60,000 jobs; and the leisure and hospitality sector, which added 46,000 jobs. Areas where employment continued to contract included construction, which lost 269,000 jobs; financial activities, which lost 120,000 jobs, and trade, transportation, and utilities; which lost 20,000 jobs. Despite the addition of federal employees in 2010 for the decennial census, total government employment decreased by 110,000 between the third quarter of 2009 and the third quarter of 2010.

19 287 While the U.S. unemployment rate was beginning its decline at the end of 2009 and into 2010, though, Nevada s unemployment rate continued to increase. The rate, which was 12.9 percent in October 2009, continued to increase, reaching a high of 14.4 percent in August and September Further highlighting the state s struggles with unemployment after the end of the Great Recession, Nevada s unemployment rate became the highest in the nation in March 2010, when the rate surpassed that of Michigan. For comparison to the U.S., from the third quarter of 2009 to the third quarter of 2010, Nevada total nonfarm employment is expected to have lost a total of 18,700 jobs, with the most significant losses in construction (15,400 jobs lost) and total government (3,100 jobs lost). Losses were also seen in the leisure and hospitality sector (2,300 jobs lost), the financial activities sector (2,000 jobs lost), and the transportation and utilities sector (900 jobs lost). Among the few sectors creating jobs during this period were wholesale trade (1,400 jobs gained), retail trade (1,300 jobs gained), and education and health services (1,300 jobs gained). Consumer Spending Consumer spending, which declined in the last half of 2008 and the first half of 2009 as the Great Recession took hold throughout the U.S., began improving in the third quarter as more people were able to find employment. Due to reductions in home values nationwide, which have reduced the perception of wealth for many homeowners, as well as increases in the saving rate, the increases in consumer spending have been modest. For the third quarter of 2010, real consumer spending increased by 2.8 percent, with significant increases in recreational goods and vehicles (11.7 percent), durable goods (7.4 percent), and motor vehicles and parts (5.5 percent). Increases in the cost of gasoline, however, are reflected in a quarterly decline in consumption of gasoline and other energy goods of 2.7 percent. The combination of rising incomes, as the recovery brings additional jobs to the country, relatively stable prices due to low rates of inflation, and increases in consumer

20 288 sentiment and confidence, has led to the belief that consumer expenditures will continue to increase in the fourth quarter of 2010, going into However, uncertainty in federal law, with the expiration of extended unemployment benefits at the end of November and the expiration of the Bush-era tax cuts at the end of December, may cause some consumers to pause and examine the potential effects on their discretionary income until Congress and President Obama make decisions regarding those policies. General Fund Revenue Forecast Fiscal Years , , and At the December 1, 2010, meeting, the Economic Forum took into consideration presentations on the employment outlook made by Bill Anderson from the Nevada Department of Employment, Training, and Rehabilitation, and the Nevada general economic outlook by Daniel White from Moody s Analytics. The Forum also took into consideration the economic outlooks used to derive the General Fund revenue forecasts made by the Budget Division, the Department of Taxation, the Gaming Control Board, the Nevada Commission on Tourism, and the Fiscal Analysis Division. Also considered were comments made by Dr. Glen Atkinson, Dick Bartholet, Brian Bonnenfant, Brian Kaiser, Dr. Tom Harris, and Dr. Mark Nichols of the University of Nevada, Reno, who provided written comments relating to forecasts and economic outlooks presented at the November 5, 2010, meeting. The Forum also took into account information presented on the state economic outlook by the University of Nevada, Reno; the University of Nevada, Las Vegas; and the Nevada State Demographer at the November 5, 2010, meeting. (Exhibits presented to the Economic Forum at its meetings are available from the Fiscal Analysis Division upon request, or on the Legislative Counsel Bureau s website.) Based on consideration of the information that was provided to the Forum at these meetings, the following forecast was approved at the December 1, 2010, meeting. Total Nevada General Fund revenues are forecast at $2.6 billion for FY and $2.7 billion for FY The biennial total of $5.3 billion is 12.4 percent lower than the revised revenue estimate of $6.1 billion for the biennium.

21 289 As you will note in the chart below, gaming taxes are forecast to provide 27.0 percent of all General Fund revenues during the biennium, an increase from the 22.3 percent now estimated for the current biennium. Sales tax collections are forecast to provide 30.3 percent of all General Fund revenues during the biennium, an increase from the 25.8 percent now estimated for the current biennium. Modified business tax collections are forecast to provide 8.5 percent of all General Fund revenues during the biennium, a decrease from the 12.4 percent now estimated for the current biennium. NEVADA GENERAL FUND REVENUES ECONOMIC FORUM S, BIENNIUM Cigarette Tax 3.1 Sales Taxes 30.3 Real Property Transfer Tax 1.7 Modified Business Tax 8.5 Live Entertainment Tax 4.7 Gaming Taxes 27.0 Other Taxes 6.8 Nontax Revenues 8.8 Insurance Premium Tax 9.1 More detailed information on specific revenues in addition to gaming, sales, and modified business taxes is available in the accompanying table. Sales Taxes Sales tax collections are forecast to reach $757.4 million in FY , an 0.3 percent increase from FY levels. Sales taxes are expected to increase by 1.3 percent in FY and increase by 3.2 percent in FY These forecasts result in projected total sales tax receipts of $1.6 billion during the biennium.

22 290 Gaming Percentage Fee Taxes Total gaming percentage fee tax revenues are forecast to reach $658.6 million in FY , an increase of 4.4 percent from actual FY collections. From this base, gaming taxes are estimated to increase by 3.2 percent in FY and increase by 3.3 percent in FY to yield revenues of $1.4 billion for the General Fund during the biennium. Modified Business Taxes Total modified business tax revenues are forecast to reach $372.8 million in FY , a decrease of 3.2 percent from actual FY collections. Due to the tax rate decrease that will become effective on July 1, 2011, for general businesses, modified business taxes are estimated to decrease by 39.7 percent in FY With an increase by 2.5 percent in FY , this revenue source is forecast to yield $455.2 million for the General Fund during the biennium.

23 GENERAL FUND REVENUES - ECONOMIC FORUM DECEMBER 1, 2010 : FY 2008 THROUGH FY 2010 AND : FY 2011 THROUGH FY 2013 ECONOMIC FORUM'S FOR FY 2011, FY 2012, AND FY 2013 APPROVED AT THE DECEMBER 1, 2010, MEETING ECONOMIC FORUM DECEMBER 1, DESCRIPTION FY 2008 FY 2009 FY 2010 [a.] TAXES TOTAL MINING TAXES AND FEES [3-FY09][19-FY10][20-FY10] $35,131, $72,355, $76,847, $85,350, $100,000 $60,100,000 TOTAL SALES AND USE TAX [1-FY04][1A-FY09][1B-FY09][1-FY10] $985,739, $859,536, $784,348, $786,802, $796,246, $821,484, TOTAL GAMING TAXES [2-FY04][3-FY04][1-FY06] $803,946, $691,960, $668,367, $691,218, $709,983, $733,311, LIVE ENTERTAINMENT TAX [4a-FY04][4b-FY04][2-FY06] $131,820, $121,567, $119,719, $122,790, $124,425, $128,911, TOTAL INSURANCE TAXES [21-FY10] $257,367, $239,202, $234,549, $236,232, $240,540, $243,945, MBT-NONFINANCIAL [10-FY04][5-FY06][6-FY06][2-FY10] $263,902, $253,118, $363,411, $351,500, $203,800, $208,900, MBT-FINANCIAL [11-FY04][5-FY06] $20,698, $24,397, $21,698, $21,300, $21,000, $21,500, CIGARETTE TAX [6-FY04][2-FY09][3-FY10] $110,418, $96,986, $88,550, $86,067, $84,318, $82,794, REAL PROPERTY TRANSFER TAX [13-FY04][8-FY06] $85,882, $65,922, $53,315, $44,804, $42,590, $45,843, ROOM TAX [5-FY09][4-FY10] $97,671,733 $104,120, GOVERNMENTAL SERVICES TAX [5-FY10] $51,330,663 $61,596, $61,750, $62,213, LIQUOR TAX [5-FY04][2-FY09][7-FY10] $39,434, $36,980, $38,425, $38,753, $39,194, $39,660, OTHER TOBACCO TAX [7-FY04][2-FY09][8-FY10] $8,840, $9,140, $9,574, $10,031, $10,118, $10,341, HECC TRANSFER $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 BUSINESS LICENSE FEE [8-FY04][3-FY06][4-FY06][6-FY10] $19,566, $22,516, $41,940, $54,068, $29,521, $29,521,800 BUSINESS LICENSE TAX [9-FY04] $13, $3, $8, $15, $5, $5,000 BRANCH BANK EXCISE TAX [12-FY04][7-FY06] $3,142, $3,131, $3,378, $3,084, $3,087, $3,105, TAX AMNESTY [22-FY10] TOTAL TAXES $2,770,904, $2,501,821, $2,658,139, $2,702,732, $2,371,680, $2,496,637, LICENSES INSURANCE LICENSES $14,500, $14,738, $15,376, $16,000, $16,160, $16,321, MARRIAGE LICENSES $490, $446, $419, $410, $399, $389, TOTAL SECRETARY OF STATE [14-FY04][9-FY10][23-FY10] $100,565, $93,199, $90,962, $92,817, $92,817,200 $92,817,200 PRIVATE SCHOOL LICENSES $217, $204, $207, $209, $213, $210, PRIVATE EMPLOYMENT AGENCY $18, $17, $14, $13, $13,000 $13,000 TOTAL REAL ESTATE [15-FY04][16-FY04] $2,884, $2,642, $2,610, $2,482, $4,849, $4,613, ATHLETIC COMMISSION FEES [24-FY10] $3,200, $3,458, $2,946, $4,080, $4,100, $4,200, TOTAL LICENSES $121,877, $114,707, $112,536, $116,013, $118,553, $118,565, FEES AND FINES VITAL STATISTICS FEES [17-FY04][25-FY10] $979, $820, $791, $1,083, $1,226, $1,226,100 DIVORCE FEES $201, $211, $187, $186, $184, $183, CIVIL ACTION FEES $1,530, $1,653, $1,438, $1,463, $1,487, $1,512, INSURANCE FEES $2,143, $1,177, $816, $1,000, $1,000,000 $1,000,000 MEDICAL PLAN DISCOUNT REGISTRATION FEES $12, $10, $10, $12, $11, $11, TOTAL REAL ESTATE FEES $957, $793, $687, $608, $637, $629, SHORT-TERM CAR LEASE [4-FY09][10-FY10] $29,792, $27,519, $33,579, $36,254, $35,801, $35,989, ATHLETIC COMMISSION LICENSES/FINES $482, $149, $179, $188, $188,100 $188,100 WATER PLANNING FEES STATE ENGINEER SALES [11-FY10] $2,272, $2,146, $3,026, $2,400, $2,400,000 $2,400,000 SUPREME COURT FEES $220, $202, $202, $202, $202,100 $202,100 NOTICE OF DEFAULT FEES [26-FY10] $2,442,525 $9,106,000 $8,649,500 $8,383,500 MISC. FINES/FORFEITURES $2,400, $6,185, $1,896, $1,429, $1,403, $1,407, TOTAL FEES AND FINES $40,991, $40,869, $45,257, $53,933, $53,191, $53,133, USE OF MONEY AND PROPERTY LYON COUNTY REPAYMENTS OTHER REPAYMENTS [18-FY04] $5,145, $4,556, $1,591, $1,097, $453, $453,594 MARLETTE REPAYMENT $10,512 $10,512 $10,512 $10,512 $10,512 $10, INTEREST INCOME $56,336, $18,505, $2,386, $1,566, $3,323, $6,147, TOTAL USE OF MONEY AND PROPERTY $61,492, $23,071, $3,988, $2,673, $3,787, $6,610, FY 2011 FY 2012 FY 2013

24 GENERAL FUND REVENUES - ECONOMIC FORUM DECEMBER 1, 2010 : FY 2008 THROUGH FY 2010 AND : FY 2011 THROUGH FY 2013 ECONOMIC FORUM'S FOR FY 2011, FY 2012, AND FY 2013 APPROVED AT THE DECEMBER 1, 2010, MEETING DESCRIPTION FY 2008 FY 2009 FY 2010 [a.] FY 2011 ECONOMIC FORUM DECEMBER 1, 2010 FY 2012 FY 2013 OTHER REVENUE HOOVER DAM REVENUE $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 PROPERTY TAX: 4-CENT OPERATING RATE [13-FY10] $36,448,071 $28,167,000 PROPERTY TAX: 5-CENT CAPITAL RATE [14-FY10] $34,690,823 $22,533,000 ROOM TAX: STATE 3/8 OF 1 RATE [15-FY10] $2,334,563 $3,265,400 INSURANCE VERIFICATION FEES [17-FY10] $7,000,000 $2,500,000 SUPPL. ACCOUNT FOR MED. ASSIST. TO INDIGENT [18-FY10] $25,199,365 $20,311,600 CLEAN WATER COALITION - CLARK COUNTY [27-FY10] $62,000,000 LOBBYIST REGISTRATION FEE [28-FY10] $100,000 COURT ADMINISTRATIVE ASSESSMENTS [16-FY10] $4,580,172 $4,580,200 COURT ADMINISTRATIVE ASSESSMENT FEE [29-FY10] $271,461 $2,150,100 $2,149,700 $2,149,700 MISC. SALES AND REFUNDS $2,383, $1,334, $923, $1,066, $871, $872, COST RECOVERY PLAN $7,139, $7,142, $9,148, $9,137, $9,137,700 $9,137,700 PETROLEUM INSPECTION FEES UNCLAIMED PROPERTY [9-FY06][5-FY09][12-FY10][30-FY10][31-FY10] $49,179, $50,092, $66,201, $56,376, $45,558, $45,570, TOTAL OTHER REVENUE $59,001, $58,868, $187,098, $212,488, $58,017, $58,030, TOTAL GENERAL FUND REVENUE $3,054,267, $2,739,340, $3,007,019, $3,087,840, $2,605,229, $2,732,977,

25 GENERAL FUND REVENUES - ECONOMIC FORUM DECEMBER 1, 2010 : FY 2008 THROUGH FY 2010 AND : FY 2011 THROUGH FY 2013 ECONOMIC FORUM'S FOR FY 2011, FY 2012, AND FY 2013 APPROVED AT THE DECEMBER 1, 2010, MEETING ECONOMIC FORUM DECEMBER 1, DESCRIPTION FY 2008 FY 2009 FY 2010 [a.] FY 2011 FY 2012 FY 2013 TAXES MINING TAX AND MINING CLAIMS FEE 3064 Net Proceeds of Minerals [3-FY09][19-FY10] $34,685, $72,300, $76,350, $66,500, $60,000, Net Proceeds Penalty $292,867 $5,889 $301,761 $50, $50,000 $50, Centrally Assessed Penalties $152, $49, $178, $50, $50,000 $50, Mining Claims Fee [20-FY10] $17,150 $18,750,000 TOTAL MINING TAXES AND FEES $35,131, $72,355, $76,847, $85,350, $100,000 $60,100,000 SALES AND USE 3001 Sales & Use Tax [1-FY04][1A-FY09][1-FY10] $966,101, $842,380, $755,344, $757,383, $767,444, $791,769, State Share - LSST [1-FY04][1B-FY09][1-FY10] $7,916, $6,896, $7,264, $7,384, $6,475, $6,680, State Share - BCCRT [1-FY04][1B-FY09][1-FY10] $1,759, $1,532, $3,268, $3,313, $3,357, $3,464, State Share - SCCRT [1-FY04][1B-FY09][1-FY10] $6,156, $5,361, $11,442, $11,597, $11,751, $12,124, State Share - PTT [1-FY04][1B-FY09][1-FY10] $3,806, $3,364, $7,028, $7,123, $7,218, $7,447, TOTAL SALES AND USE $985,739, $859,536, $784,348, $786,802, $796,246, $821,484, GAMING - STATE 3032 Pari-mutuel Tax $4, $3, $4, $4, $4,000 $4, Racing Fees $15, $15, $13, $13, $13,000 $13, Racing Fines/Forfeitures $2, $2, $ $1, $1,000 $1, Percent Fees - Gross Revenue [2-FY04] $770,965, $655,199, $630,526, $658,556, $679,529, $702,158, Gaming Penalties $670, $847, $1,030, $1,000, $875, $875, Flat Fees-Restricted Slots [3-FY04][1-FY06][1-FY08] $9,507, $8,999, $8,578, $8,381, $8,265, $8,409, Non-Restricted Slots [1-FY06][1-FY08] $12,771, $12,662, $12,425, $12,358, $12,449, $12,623, Quarterly Fees-Games $6,990, $6,926, $6,699, $6,675, $6,709, $6,787, Advance License Fees $2,599, $6,872, $8,663, $3,781, $1,700, $2,000, Slot Machine Route Operator $36, $37, $37,000 $37, $38, $39, Gaming Info Systems Annual $18,356 $18,000 $12,000 $12,000 $12,000 $12, Equip Mfg. License $209, $219, $228, $229, $231, $234, Race Wire License $35, $19, $15, $32, $35, $40, Annual Fees on Games $119, $137, $134, $137, $119, $114, TOTAL GAMING - STATE $803,946, $691,960, $668,367, $691,218, $709,983, $733,311, LIVE ENTERTAINMENT TAX (LET) 3031G Live Entertainment Tax-Gaming [4b-FY04] $121,638, $112,405, $108,244, $109,863, $112,502, $116,517, NG Live Entertainment Tax-Nongaming [4b-FY04][2-FY06][2-FY08] $10,181, $9,162, $11,475, $12,927, $11,923, $12,394, TOTAL LET $131,820, $121,567, $119,719, $122,790, $124,425, $128,911, INSURANCE TAXES 3061 Insurance Premium Tax [21-FY10] $256,693, $238,524, $233,905, $235,600, $239,900, $243,300, Insurance Retaliatory Tax $120, $98, $60, $70, $70,000 $70, Captive Insurer Premium Tax $553,405 $580,370 $583,747 $562, $570, $575, TOTAL INSURANCE TAXES $257,367, $239,202, $234,549, $236,232, $240,540, $243,945, MODIFIED BUSINESS TAX (MBT) 3069 MBT - Nonfinancial [10-FY04][5-FY06][6-FY06][3-FY08][2-FY10] $263,902, $253,118, $363,411, $351,500, $203,800, $208,900, MBT - Financial [11-FY04][5-FY06] $20,698, $24,397, $21,698, $21,300, $21,000, $21,500, TOTAL MBT $284,600,418 $277,516,292 $385,109,788 $372,800, $224,800, $230,400, CIGARETTE TAX 3052 Cigarette Tax [6-FY04][2-FY09][3-FY10] $110,418, $96,986, $88,550, $86,067, $84,318, $82,794, REAL PROPERTY TRANSFER TAX (RPTT) 3055 Real Property Transfer Tax [13-FY04][8-FY06] $85,882, $65,922, $53,315, $44,804, $42,590, $45,843, ROOM TAX 3057 Room Tax [4-FY10] $97,671,733 $104,120,000 GOVERMENTAL SERVICES TAX (GST) 3051 Govermental Services Tax [5-FY10] $51,330,663 $61,596, $61,750, $62,213, OTHER TAXES 3113 Business License Fee [8-FY04][3-FY06][4-FY06][6-FY10] $19,566,390 $22,516,702 $41,940,370 $54,068, $29,521, $29,521, Liquor Tax [5-FY04][2-FY09][7-FY10] $39,434, $36,980, $38,425, $38,753, $39,194, $39,660, Other Tobacco Tax [7-FY04][2-FY09][8-FY10] $8,840, $9,140, $9,574, $10,031, $10,118, $10,341, HECC Transfer $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000, Business License Tax [9-FY04] $13, $3, $8, $15, $5, $5, Branch Bank Excise Tax [12-FY04][7-FY06] $3,142, $3,131, $3,378, $3,084, $3,087, $3,105, TOTAL TAXES $2,770,904, $2,501,821, $2,658,139, $2,702,732, $2,371,680, $2,496,637,

26 GENERAL FUND REVENUES - ECONOMIC FORUM DECEMBER 1, 2010 : FY 2008 THROUGH FY 2010 AND : FY 2011 THROUGH FY 2013 ECONOMIC FORUM'S FOR FY 2011, FY 2012, AND FY 2013 APPROVED AT THE DECEMBER 1, 2010, MEETING ECONOMIC FORUM DECEMBER 1, DESCRIPTION FY 2008 FY 2009 FY 2010 [a.] FY 2011 FY 2012 FY 2013 LICENSES 3101 Insurance Licenses $14,500, $14,738, $15,376, $16,000, $16,160, $16,321, Marriage License $490, $446, $419, $410, $399, $389, SECRETARY OF STATE 3105 UCC [1-FY02][14-FY04][23-FY10] $1,610, $1,270, $1,326, $1,352, $1,352,600 $1,352, Las Vegas Commercial Filings [14-FY04][9-FY10][23-FY10] $4,813, $5,946, $3,487, $3,557,000 $3,557,000 $3,557, Notary Fees [23-FY10] $605, $675, $573, $594, $594,600 $594, Commercial Recordings [14-FY04][9-FY10][23-FY10] $72,249, $64,913, $65,197, $66,501, $66,501,300 $66,501, Video Service Franchise $114,750 $7,000 $28, Domestic Partnership Registry Fee [23-FY10] $55,000 $55,000 $55, Securities [14-FY04][23-FY10] $21,172, $20,386, $20,349, $20,756, $20,756,700 $20,756,700 TOTAL SECRETARY OF STATE $100,565, $93,199, $90,962, $92,817, $92,817,200 $92,817, Private School Licenses $217, $204, $207, $209, $213, $210, Private Employment Agency $18, $17, $14, $13, $13,000 $13,000 REAL ESTATE 3161 Real Estate License [15-FY04] $2,881, $2,636, $2,605, $2,479, $4,846, $4,610, Real Estate Fees $3, $5, $4, $3, $3,900 $3, TOTAL REAL ESTATE $2,884, $2,642, $2,610, $2,482, $4,849, $4,613, Athletic Commission Fees [24-FY10] $3,200, $3,458, $2,946, $4,080, $4,100, $4,200, TOTAL LICENSES $121,877, $114,707, $112,536, $116,013, $118,553, $118,565, FEES AND FINES 3200 Vital Statistics Fees [17-FY04][25-FY10] $979, $820, $791, $1,083, $1,226, $1,226, Divorce Fees $201, $211, $187, $186, $184, $183, Civil Action Fees $1,530, $1,653, $1,438, $1,463, $1,487, $1,512, Insurance Fines $2,143, $1,177, $816, $1,000, $1,000,000 $1,000, MD Medical Plan Discount Reg. Fees $12, $10, $10, $12, $11, $11, REAL ESTATE FEES 3107IOS IOS Application Fees $4, $6, $11, $8, $8,000 $8, Land Co Filing Fees $267, $187, $133, $90, $108, $97, Land Co Reg Rep Filing Fees 3167 Real Estate Adver Fees $8, $6, $4, $3, $3,200 $2, Real Estate Reg Fees $31, $22, $14, $9, $9,000 $10, Real Estate Exam Fees [19-FY04] $341,139 $237,828 $234,133 $234, $234,100 $234, CAM Certification Fee $48,850 $54,590 $57,645 $58, $59, $60, Real Estate Accred Fees $126, $101, $89, $72, $81, $81, Real Estate Penalties $88, $134, $83, $82, $82,000 $82, A.B. 165, Real Estate Inspectors $40, $41, $58, $52, $53, $54, TOTAL REAL ESTATE FEES $957, $793, $687, $608, $637, $629, Short Term Car Lease [4-FY09][10-FY10] $29,792, $27,519, $33,579, $36,254, $35,801, $35,989, AC Athletic Commission Licenses/Fines $482,325 $149,853 $179,125 $188, $188,100 $188, State Engineer Sales [11-FY10] $2,272, $2,146, $3,026, $2,400, $2,400,000 $2,400, Supreme Court Fees $220, $202, $202, $202, $202,100 $202, Notice of Default Fee [26-FY10] $2,442,525 $9,106,000 $8,649, $8,383, Misc Fines/Forfeitures $2,400, $6,185, $1,896, $1,429, $1,403, $1,407, TOTAL FEES AND FINES $40,991, $40,869, $45,257, $53,933, $53,191, $53,133,

27 GENERAL FUND REVENUES - ECONOMIC FORUM DECEMBER 1, 2010 : FY 2008 THROUGH FY 2010 AND : FY 2011 THROUGH FY 2013 ECONOMIC FORUM'S FOR FY 2011, FY 2012, AND FY 2013 APPROVED AT THE DECEMBER 1, 2010, MEETING ECONOMIC FORUM DECEMBER 1, DESCRIPTION FY 2008 FY 2009 FY 2010 [a.] FY 2011 FY 2012 FY 2013 USE OF MONEY AND PROP 4420 Lyon County Repayments OTHER REPAYMENTS 4401 Higher Education Tuition Admin $2,188,014 $1,160, Forestry Nurseries Fund Repayment (05-M27) $26,250 $15,090 $20,670 $20,670 $20,670 $20, Bldg. and Grounds Repayments $47,413 $333, CIP 95-C14, Mailroom Remodel $21,122 $190, Comp/Fac Repayment $23,744 $23,744 $23,744 $23,744 $23,744 $23, CIP 95-M1, Security Alarm $2,998 $2,998 $2,998 $2,998 $2,998 $2, CIP 95-M5, Facility Generator $6,874 $6,874 $6,874 $6,874 $6,874 $6, CIP 95-S4F, Advance Planning $1,000 $1,000 $1,000 $1,000 $1,000 $1, CIP 97-C26, Capitol Complex Conduit System, Phase I $62,542 $62,542 $62,542 $62,542 $62,542 $62, CIP 97-S4H, Advance Planning Addition to Computer Facility $9,107 $9,107 $9,107 $9,107 $9,107 $9, S.B. 201, 1997; Cost of PBX System $249,967 $249, A.B. 576-Virtual Tape Storage $463,444 $463,444 $463, DoIT Repayment - April 9, 2008 IFC $348,240 $197, Motor Pool Repay - Carson 4409 Motor Pool Repay - Reno $24,385 $24,385 $24, Motor Pool Repay - LV $6,638 $6,638 $6, Purchasing Repayment $19,326 $164, State Personnel IFS Repayment; S.B. 201, 1997 Legislature $1,644,795 $1,644,795 $970,267 $970,267 $326,659 $326,659 TOTAL OTHER REPAYMENTS $5,145, $4,556, $1,591, $1,097, $453, $453, Marlette Repayment $10,512 $10,512 $10,512 $10,512 $10,512 $10,024 INTEREST INCOME 3290 Treasurer $55,876, $18,363, $2,373, $1,466, $3,310, $6,134, Other $459, $142, $13, $100, $13, $13,000 TOTAL INTEREST INCOME $56,336, $18,505, $2,386, $1,566, $3,323, $6,147, TOTAL USE OF MONEY & PROP $61,492, $23,071, $3,988, $2,673, $3,787, $6,610, OTHER REVENUE 3059 Hoover Dam Revenue $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 MISC SALES AND REFUNDS 3071 Property Tax: 4-cent operating rate (Clark & Washoe) [13-FY10] $36,448,071 $28,167, Property Tax: 5-cent capital rate (Clark & Washoe) [14-FY10] $34,690,823 $22,533, Room Tax: State 3/8 of 1 Rate [15-FY10] $2,334,563 $3,265, Insurance Verification Fees [17-FY10] $7,000,000 $2,500, Suppl. Account for Med. Assist. to Indigent [18-FY10] $25,199,365 $20,311, Clean Water Coalition - Clark County [27-FY10] $62,000, Lobbyist Registration Fee [28-FY10] $100, Misc Fees $197, $182, $252, $429, $231, $231, Court Admin Assessments [16-FY10] $1,386,084 $381,525 $4,580,172 $4,580, Court Administrative Assessment Fee [29-FY10] $271,461 $2,150,100 $2,149,700 $2,149, Telemarketing Fees $97, $91, Declare of Candidacy Filing Fee $40, $32, $63, $30, $30,000 $30, Fees & Writs of Garnishments $2, $2, $3, $3, $3, $3, Nevada Report Sales $30, $12, $9, $10, $10,000 $10, Excess Property Sales $41, $38, $32, $37, $37,400 $37, Sale of Trust Property $1, $2, $3, $3, $3,000 $3, Insurance - Misc $514, $522, $516, $513, $514, $515, Telemarketing Fines $10, Misc Refunds $ $3, Misc Refunds $61, $64, $42, $41, $42, $42, Cost Recovery Plan $7,139, $7,142, $9,148, $9,137, $9,137,700 $9,137,700 TOTAL MISC SALES & REF $9,522, $8,476, $120,596, $155,811, $12,158, $12,160, Petroleum Inspection Fees [4-FY08] 3255 Unclaimed Property [9-FY06][5-FY09][12-FY10][30-FY10][31-FY10] $49,179, $50,092, $66,201, $56,376, $45,558, $45,570, TOTAL OTHER REVENUE $59,001, $58,868, $187,098, $212,488, $58,017, $58,030, TOTAL GENERAL FUND REVENUE $3,054,267, $2,739,340, $3,007,019, $3,087,840, $2,605,229, $2,732,977,

28 GENERAL FUND REVENUES - ECONOMIC FORUM DECEMBER 1, 2010 : FY 2008 THROUGH FY 2010 AND : FY 2011 THROUGH FY 2013 ECONOMIC FORUM'S FOR FY 2011, FY 2012, AND FY 2013 APPROVED AT THE DECEMBER 1, 2010, MEETING ECONOMIC FORUM DECEMBER 1, 2010 DESCRIPTION FY 2008 FY 2009 FY 2010 [a.] FY 2011 FY 2012 FY NOTES: [a.] Subject to adjustment based on reconciliation with the Controller's Office and Budget Division FY (Actual collections are not displayed in the table for FY 2004, but notes were retained as they reflect the tax changes approved by the Legislature during the 2003 Regular and Special Sessions. FY 2004 [1-FY04] A.B. 4 (20th S.S.) reduced the collection allowance provided to the taxpayer for collecting and remitting the sales tax to the state from 1.25 to 0.5, effective July 1, [2-FY04] S.B. 8 (20th S.S.) increased gross gaming tax rates by 0.5: 3.0 to 3.5 on monthly revenue up to $50,000; 4.0 to 4.5 on revenue over $50,000 and up to $134,000; 6.25 to 6.75 on revenue exceeding $134,000, effective August 1, 2003 [3-FY04] S.B. 8 (20th S.S.) increased quarterly restricted slot fees by 33: from $61 to $81 per machine, up to 5 machines; from $106 to $141 for each machine over 5, up to 15 machines, effective July 22, [4a-FY04] S.B. 8 (20th S.S.) modified types of establishments and entertainment subject to the 10 Casino Entertainment Tax (CET), effective September 1 to December 31, 2003 [Estimated to generate $4,982,000 additional collections during 4-month period]. [4b-FY04] S.B. 8 (20th S.S.) repealed CET and replaced by Live Entertainment Tax (LET): 5 of admissions price, if entertainment is in facility with 7,500 or more seats; 10 of admissions price & food, beverage, and merchandise purchased, if facility has more than 300 and up to 7,500 seats; exempt from the tax if facility is a non-gaming establishment with less than 300 seats or is gaming establishment with less than 300 seats and less than 51 slot machines, 6 games, or any combination thereof, effective January 1, [5-FY04] [6-FY04] [7-FY04] [8-FY04] [9-FY04] [10-FY04] [11-FY04] [12-FY04] [13-FY04] [14-FY04] [15-FY04] [16-FY04] [17-FY04] [18-FY04] [19-FY04] FY 2006 [1-FY06] [2-FY06] [3-FY06] [4-FY06] [5-FY06] [6-FY06] [7-FY06] [8-FY06] [9-FY06] FY 2008 [1-FY08] [2-FY08] [3-FY08] [4-FY08] S.B. 8 (20th S.S.) increased liquor taxes by 75: beer from 9 cents to 16 cents per gallon; liquor up to 14 alcohol from 40 cents to 70 cents per gallon; liquor over 14 and up to 22 alcohol from 75 cents to $1.30 per gallon; liquor over 22 alcohol from $2.05 (15 cents for alcohol abuse program, 50 cents to local government, and $1.40 to state general fund) to $3.60 per gallon (15 cents for alcohol abuse program, 50 cents to local government, and $2.95 to state general fund), effective August 1, [Estimated to generate $13,873,000 in FY 2004 and $15,536,000 in FY 2005]. A.B. 4 (20th S.S.) reduced the collection allowance provided to the taxpayer for collecting and remitting the liquor tax to the state from 3 to 0.5, effective August 1, [Estimated to generate $734,000 in FY 2004 and $822,000 in FY 2005] S.B. 8 (20th S.S.) increased cigarette tax per pack of 20 by 45 cents: from 35 cents per pack (10 cents to Local Government Distribution Fund, 25 cents to state general fund) to 80 cents per pack (10 cents to Local Government Distribution Fund, 70 cents to state general fund), effective July 22, [Estimated to generate $63,268,000 in FY 2004 and $70,047,000 in FY 2005] A.B. 4 (20th S.S.) reduced the collection allowance provided to the taxpayer for collecting and remitting the cigarette tax to the state from 3 to 0.5, effective August 1, [Estimated to generate $2,538,000 in FY 2004 and $2,884,000 in FY 2005] A.B. 4 (20th S.S.) reduced collection allowance provided to taxpayer for collecting and remitting tax on other tobacco items from 2.0 to 0.5, effective August 1, S.B. 8 (20th S.S.) changed the $25 one-time annual business license fee to an annual fee of $100, effective July 22, S.B. 8 (20th S.S.) repealed the current quarterly $25 per employee tax when the Modified Business Tax comes online, effective October 1, [See Notes 10 and 11] S.B. 8 (20th S.S.) imposes tax on gross payroll of a business less a deduction for health care provided to employees, effective October 1, Tax rate is 0.70 in FY 2004 and 0.65 in FY S.B. 8 (20th S.S.) imposes tax of 2.0 on gross payroll of a financial institution less a deduction for health care provided to employees, effective October 1, S.B. 8 (20th S.S.) imposes excise tax on each bank of $7,000 per year ($1,750 per quarter) on each branch office, effective January 1, S.B. 8 (20th S.S.) imposes tax of $1.30 per $500 of value on the transfers of real property, effective October 1, S.B.2 and A.B. 4 (20th S.S.) makes changes to the rates and structure of the fees collected from entities filing with the Secretary of State's office, effective September 1, 2003 for Securities and UCC fee increases and November 1, 2003 for changes to commercial recording fees. S.B. 428 (2003 Session) increases real estate salesman, broker-salesman, & broker licensing fees by $20 for an original license and $10 for renewal of license (original & renewal license fee varies depending on type of license), effective July 1, A.B. 493 (2003 Session) established that revenues from fees collected by the Division of Financial Institutions of the Department of Business & Industry will be deposited in a separate fund to pay the expenses related to the operations of the Commissioner of Financial Institutions and the Division of Financial Institutions, effective January 1, Previously, the revenues from the fees were deposited in the state general fund. A.B. 550 (2003 Session) increased state's portion of the fee for issuing copy of a birth certificate by $2 and fee for issuing copy of death certificate by $1, effective October 1, 2003 S.B. 504 (2003 Session) transferred the State Printing Division of the Department of Administration to the Legislative Counsel Bureau and all debt to the state general fund was forgiven, effective July 1, Beginning in FY 2004, the portion of the fees collected by the Real Estate Division for Real Estate Testing Fees that belong to the general fund are transferred from Category 28 in BA 3823 to GL 4741 in the General Fund. Previously, the revenue from these fees were reverted to the general fund at the end of the fiscal year. S.B. 357 (2005 Session) allocates $1 per slot machine per quarter in FY 2006 and $2 per slot machine per quarter in FY 2007 from the quarterly fee imposed on restricted and nonrestricted slot machines and sunsets effective June 30, A total of $822,000 in FY 2006 and $1,678,000 is projected to be deposited in the Account to Support Programs for the Prevention and Treatment of Problem Gambling. (FY 2006: $84,666 - Restricted; $737,334 - Nonrestricted and FY 2007: $172,834 - Restricted; $1,505,166 - Nonrestricted) A.B. 554 (2005 Session) lowers the occupancy threshold from 300 to 200, effective July 1, Estimated to generate $3,600,000 in FY 2006 and FY S.B. 3 (22nd S.S.) provides an exemption for entities that have four or fewer rental dwelling units. Estimated to reduce collections by $2,975,000 in FY 2006 and $3,060,000 in FY S.B. 3 (22nd S.S.) allows an entity operating a facility where craft shows, exhibitions, trade shows, conventions, or sporting events to pay the BLF for entities not having a business license as an annual flat fee of $5,000 or on a $1.25 times the number entities without a business license times the number days of the show basis. Estimated to generate $134,420 in FY 2006 and $158,884 in FY S.B. 391 (2005 Session) replaces the NAICS-based approach for defining a financial institution with a structure based on a state or federal licensing or regulatory requirement for conducting financial activities. Collection agencies and pawn shops are not included as financial institutions, but as nonfinancial businesses. The changes are estimated to reduce MBT-Financial collections by $1,801,800 in FY 2006 and $2,047,500 in FY 2007 and increase MBT-Nonfinancial collections by $584,168 in FY 2006 and $621,237 in FY Net effect is a reduction in total MBT collections of $1,217,632 in FY 2006 and $1,426,263 in FY S.B. 523 (2005 Session) reduces the MBT-nonfinancial institutions tax rate from 0.65 to 0.63 from July 1, 2005 to June 30, Estimated to reduce collections by $6,978,000 in FY 2006 and $7,450,000 in FY S.B. 3 (22nd S.S.) provides an exemption for the first branch bank operated by a bank in each county, replacing the previous exemption for one branch bank only. Estimated to reduce collections by $441,000 in FY 2006 and FY S.B. 390 (2005 Session) increases the collection allowance provided to Clark County and Washoe County from 0.2 to 1.0, effective July 1, 2005, which makes the collection allowance 1.0 in all 17 counties. Estimated to reduce collections by $1,056,292 in FY 2006 and $1,022,504 in FY S.B. 4 (22nd S.S.) allocates $7,600,000 of the Unclaimed Property revenues collected by the State Treasurer to the Millennium Scholarship Trust Fund in FY 2006 and FY Per the June 30, 2007, sunset provision of S.B. 357 (2005 Session), the $2 per slot machine per quarter allocated from the quarterly license fee imposed on restricted and nonrestricted slot machines to the Account to Support Programs for the Prevention and Treatment of Problem Gambling ceases and the full amount collected from the quarterly slot fees remains in the General Fund. Per the A.B. 554 (2005 Session), race events that are part of the National Association of Stock Car Auto Racing (NASCAR) Nextel Cup series and all races associated with such an event are exempt from the LET, effective July 1, Per the sunset provision of S.B. 523 (2005 Session), the MBT-nonfinancial institutions tax rate increases to 0.65 from 0.63, effective July 1, S.B. 165 (2005 Session) requires the state General Fund portion of the petroleum inspection fees imposed pursuant to NRS to be deposited into a separate account for use by the Department of Agriculture, effective July 1, 2007.