Nevada has neither an individual nor a corporate income tax. Almost 85% of state-level tax collections come from general and selective sales (excise) taxes. Nevada levies a 6.5% state sales and use tax, with localities levying additional amounts ranging from none to 3.125%. There is a full array of state excise taxes covering amusements (almost 60% of Nevada's excise tax receipts), motor fuels, tobacco products, insurance premiums, public utilities, and other selected items. In 2002, contrary to trends in other states, Nevada lowered its gasoline tax a penny, from 24 cents to 23 cents a gallon. Nevada's estate tax is tied to the federal exemption for state death taxes, and is therefore on track to be phased out in tandem with the phasing out of the federal estate tax credit by 2007, absent countervailing action by the state to preserve its tax. Nevada's revenue losses from the phasing out of its estate tax are estimated at -$14 million for 2002/03, -$23 million for 2003/04 and -$39 million for 2006/07. Death and gift taxes accounted for 0.76% of state collections in 2002. Other state taxes include various license and franchise fees, state property taxes (although most property taxes are collected locally), severance taxes (a minerals extraction tax and a oil and gas conservation tax accounting for 0.5% of state-level tax revenue in 2002), and stamp taxes. Almost half of total state and local taxes (47.2% in 2000) in Nevada are collected at the local level.
The state collected $3.945 billion in taxes in 2002, of which 52.5% came from the general sales tax, 32% from selective sales taxes, 11.1% from license fees, and 2.8% from state property taxes. In 2003, Nevada ranked 41st among the states in terms of combined state and local tax burden, which amounted to about 8.9% of income.
The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.
|Sales and gross receipts||3,337,996||1,535.78|
|General sales and gross receipts||2,070,013||952.39|
|Selective sales taxes||1,267,983||583.39|
|Other selective sales||33,123||15.24|
|Hunting and fishing||6,557||3.02|
|Motor vehicle operators||13,064||6.01|
|Occupation and business, NEC||157,124||72.29|
|Corporation net income||(X)||(X)|
|Death and gift||30,088||13.84|
|Documentary and stock transfer||4,383||2.02|