There are 61 census tracts in Nevada that have received the distinction of Qualified Opportunity Zones. The process of qualifying requires a nomination from the governor as all eligible areas must first meet low-income standards. Nevada’s opportunity zones are clustered together in a select number of counties and there is an overwhelming amount in Clark County. This indicates a bit of a monopoly as the top locations for opportunity zones in Nevada are as follows:
There are 45 census tracts that have been nominated as opportunity zones and this also includes the city of Las Vegas.
The city of Reno falls in this county and is home to a total of 8 opportunity zones.
Opportunity zones are intended to encourage private investments in low-income areas. To qualify as an opportunity zone, a census tract needs to meet the requirements for median income or poverty rate. These distinctions show that an area is economically distressed. The premise for this initiative is to revitalize low-income communities by enticing investors with capital gains tax incentives. This could lead to an improvement in business and an expanded workforce while also raising the property values in a distressed community.
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Nevada Tax Situation
The sales tax in Nevada is 6.85 percent, although that is also subject to local percentages as well. In some parts of Nevada, sales tax reaches as high as 8.1 percent. This higher rate is used to compensate for the zero personal income tax within the state. Residents of Nevada are not required to pay a state income tax.
The property taxes in Nevada are the 15thlowest in the country. The average property taxes per year on a median-priced home check in at $1,478. The tax situation has also enabled Nevada to become an ideal place for people to live out their retirement. The retirement taxes in Nevada are currently the lowest of all 50 states. And in Nevada, social security benefits are not able to be taxed.
For most categories, Nevada ranks favorably when it comes to taxes. Most categories rank very well, although state residents are subjected to high vehicle taxes, which ranked 39thin the country. Nevertheless, the tax situation has made Nevada one of the more popular destinations for people who are looking to relocate. It has also been beneficial for businesses and corporations that are looking for a new home.
NV Industries with Tax Breaks
Some very notable companies have utilized Nevada’s tax incentives to relocate to the state. There has been a high level of effort by the state government to make the state appealing to numerous industries. Here is a look at some of the industries that continue to benefit from Nevada’s tax incentives:
More than $1 billion in tax breaks were given to the Tesla company as it is it opened a facility outside of Reno. It was the largest tax break in state history.
There are numerous tax incentives available for filmmakers looking to conduct their work on location in Nevada.
The State’s economic development division has provided the largest tax revenue reductions to this sector.
Nevada has instituted a partial abatement when it comes to manufacturing equipment sales tax and that has helped draw in manufacturers.
The tax breaks have created a diverse environment for business in Nevada, although that does not mean every company is rushing for a chance to move into the state. For that reason, more incentive and abatement plans are being introduced as Nevada is aiming to stay at the forefront of economic development.
Nevada State Financial Facts
The state of Nevada features a reasonable cost of living that has been impacted by favorable average wages. The state is dominated by two large counties (Clark, Washoe) and there are approximately 75,000 employed residents in the 15 other counties. Here are some financial facts regarding the entire state of Nevada:
- Median household income – $65,384
- Median household savings
- $0 in savings: 43%
- $1,000 or less in savings: 62%
- Total household investments
55 percent of families that own their home
Median value of Nevada home – $287,400
4.7 percent unemployment rate
Current economic condition of Nevada
Nevada is revered for its economic status as it continues to be one of the leaders throughout the United States. Job growth remains very high as it has held steady at over 3 percent for some time. The overall household growth of income has also been increasing by 3 percent annually.
The makeup of Nevada has left a number of counties much less populated. The cities of Las Vegas and Reno are major contributors to the economy. Las Vegas features a cost of living that is higher than the rest of the state and it is even higher than the national average. However, the cost of living in more remote parts of Nevada has enabled that median number to remain lower. Also, Reno property values are soaring and that has influenced the overall economic trends in Nevada.
Nevada was considered to be one of the states to recover quickest from the 2008 recession and financial crisis. This is partly attributed to the state’s Catalyst Fund, which was set up post-recession to draw new businesses to Nevada. The $10 million fund worked well as large companies like Zappo’s relocated to the city of Henderson. The economic boom in Nevada was caused by more than just a reliance on the city of Las Vegas.
Primary Industries in Nevada
Las Vegas is responsible for a portion of the overall economy in Nevada. However, there is more to the Nevada economy than tourism, gaming and entertainment. The state has welcomed many large, successful companies that have diversified its industries. Here is a look at some of the main industries paving the way for progress in Nevada:
Top Economic Cities in Nevada
Nevada has an overwhelming amount of opportunity zones in Clark County, but that is not intended to deter investors from exploring economic possibilities in the state’s 16 remaining opportunity zones. There were more eligible census tracts, although the state established 61 in total, which have already seen a substantial amount of investments. The following locations are home to census tracts ow considered opportunity zones in the state of Nevada.
- Carson City
- Clark (45)
- Lyon (2)
- Washoe (9)
Economic growth is not synonymous with every city in Nevada. There are a fair number of cities that are in need if some type of revitalization. Carson City ranks No.4 on the list of poorest cities in Nevada. It features an unemployment rate of 9.5 percent and almost a 17 percent poverty rate. There are still a lot of positives in Carson City as it hosts several cultural events throughout the year. However, economic distress exists in that city as the government has identified a census tract in need of development. Capital gains tax incentives are intended to help those areas and mirror much of the growth that has made Nevada an economic success. The tax abatements and incentives may be a way to level out the economic prosperity that has made Nevada an appealing place to reside and work.