Affordable Taxes and a Lack of…
Nevada tax benefits are a large draw for why 5000 people a month relocate to Southern Nevada. Even though Nevada’s cost is 4% higher than the national average, Nevada is still more affordable than most of the country. Nevada has reasonable utility costs and affordable housing, but the tax structure pushes it to the top of the desirable list. Because tourists contribute greatly to the state’s coffers, residents save money.
Nevada Specific Tax Benefits
Nevada’s tax benefits are great for families, businesses, and retirees. Here’s why:
- Zero State Income Tax
- No Inheritance Tax
- There’s No Corporate Income Tax
- No Inventory Tax
- There’s not any Franchise Tax
- Property Tax In Clark County is about 1% of the property value
- Nevada’s average Property Tax is .77% – National average is 1.19%
- Sales Tax In Las Vegas, Henderson, and N. Las Vegas is 8.375%
- Nevada State Sales Tax Rate is 4.6% added to the Clark County rate of 3.775% equals 8.375%. Other counties are usually lower. No Sales Tax on food, candy, medical or medicine for people
The Downside Of Nevada’s Cost of Living
The state’s tax benefits are among the best in the country. With tourists paying the residents’ share, what’s the catch? Doesn’t there have to be a downside? OK, here’s some truth:
Because 250,000 tourists visit The Strip each weekend, their statistics are added to the 2 million residents’ stats when they crash their cars or commit a crime. Drunk drivers- same thing- averaged between 250,000 fewer people than there really are. Since tourists don’t count, Las Vegas Valley residents pay higher insurance rates.
Cost Of Goods- Not Good or Bad
Not only are insurance statistics skewed, but the cost of living in Southern Nevada is also lower than what they say. Rent on the Las Vegas Strip is high. Therefore all consumable goods are priced higher. Gas on the strip can be $.50 more than in the valley, but their prices are averaged in. Groceries are the same thing. Due to fresh food, meat, and seafood arriving daily, we always have fresh food.
Food and Freight in Southern Nevada is another interesting topic. I’ve written an entire blog about that called Food and Freight. Being such a large consumable city where food for hotel guests is also trucked in, many trucks leave empty, raising the cost of food. Las Vegas has attracted many high freight consumers to take advantage of less expensive trucking rates. These companies include Ben and Jerry’s, Big O Tires, Home Shopping Network, and Ocean Spray Cranberries.
When stats show the police to residents to crime statistics, they do not add for 250,000 tourists every da either. Many vacationers like to get drunk and then create trouble. The problem lies in the number of private security the resorts employ that are not reflected anywhere. When you see crime stats about Las Vegas, know that both the police and crime rates do not reflect the city’s reality. Henderson which is 5 miles from The Strip and called Las Vegas by many, is the #2 Safest City In The U.S.
The tax rates in Nevada are certainly attractive. However, there’s a “team” spirit that makes us want to stay and be a part of this incredible energy. Having called Las Vegas home for over 25 years, we’ve seen a lot of changes and growth. What makes us proud of the community are the creative problem-solving companies and people that also call Southern Nevada home.
This blog was written by Kurt Grosse. Kurt is a 25 year Las Vegas Top-Producing Realtor and Retired Building Engineer (P.E., C. E.) known by his clients as “The Protector.”