Chamber recommends sales tax increase |

Chamber recommends sales tax increase

Staff Reports

The board of directors of the Carson Valley Chamber of Commerce and Visitors Authority has voted to support the placing of an advisory question on the November 1998 ballot recommending a one-quarter cent sales tax increase in Douglas County. In addition, the board supported cost reduction wherever possible.

Lee Rathbun, chamber board member and the chamber representative on the Room Tax Loss Alternative Revenue and Service Advisory Committee, carried that information to the last meeting of the committee.

“The sales tax increase was the least onerous of what we looked at,” said Rathbun.

Although an increase in the sales tax will reduce to competitive edge for merchants that sell large ticket items (Carson City is now one-half cent more than Douglas County), the overall impact is less than a property or utility tax would be. It is estimated that tourists account for 35 percent of the sales tax revenue.

“We also have to be practical,” said Chamber President Milos Terzich. “Douglas County now receives more sales tax revenues that we produce through the tax-sharing formula. It wouldn’t be long before the legislators from Clark County decided that the formula should be changed, since their sales tax is higher and they are giving a portion of that revenue to Douglas County.”