Economic recovery yields more tax dollars than anticipated

By SAM METZ
AP / Report for America

CARSON CITY, Nev. (AP) — Nevada’s economy is rebounding more quickly than in some past recessions, but coronavirus variants continue to raise questions about the state’s path toward full recovery. The five-member panel responsible for the forecasts used to allocate tax revenue toward the state budget on Tuesday reviewed how the pandemic, federal funds and changes approved by state lawmakers earlier this year affect their earlier forecasts. The state’s unemployment rate remains the nation’s highest, but has rebounded substantially from a year ago. The state projects it will collect less tax revenue in the next two years than projected due to a state Supreme Court ruling that a payroll tax extension passed in 2019 was unconstitutional.