Washoe County voters will decide in November whether to raise the sales tax to fund the school district’s capital projects. Reno Public Radio’s Anh Gray takes a looks at how much taxpayers will be spending if the ballot measure passes.
Brian Bonnenfant is with the Center for Regional Studies at the University of Nevada, Reno. He says a recent analysis reveals that for a family of four with an annual income of about $75,000 a year, they will spend about $7 more a month. That’s based on their average taxable purchases.
“So, I would think that that would be interpreted as a very minimal impact on families," Bonnenfant says.
Although the added cost is minimal, Bonnenfant says tax increases can make a difference.
“You do have psychological affects when people see tax rates rise." Bonnenfant says. "It does affect their purchasing behaviors.”
But Bonnenfant says that usually only impact the sale of big ticket items like cars or furniture.
The measure proposes to raise the current sales tax from 7.725 percent to 8.225 percent. The increased tax revenue will go toward a backlog of school repairs and new construction.