A Ben's Liquor customer who wished to remain unidentified picks up a six pack of micro-brew beer at the store Wednesday. A sin tax on alcohol will take effect Friday August 1. photo by Rick Gunn
The wages of sin and the other great inevitability have traditionally been separate, but there is no "and" in the Nevada version -- it's just sin tax.
A night out on the town is getting more expensive.
"The smokers, they care a lot. They give us a hard time," Abdul Hamid, 38, manager of Eagle Gas, 2152 N. Carson St., said of the raise in cigarette prices. "Some walk out and threaten to quit."
A customer at Ben's Fine Wine & Spirits, 444 E. William St., announced she only had one cigarette Wednesday because of the increase in cost. Since the cigarette tax went into effect July 22, a pack of cigarettes costs 45 cents more.
However, she was buying two cases of beer before the tax on alcohol goes into effect on Friday.
Manager Jim Chivers, 55, said people are buying more alcohol than usual but stopped short of describing it as stockpiling.
"Where a customer might have formerly bought one box of alcohol, now they are buying two," Chivers said.
Beer will be 70 cents more a gallon with the new tax, which raises the price of a six-pack by 3.9 cents.
The liquor excise tax is $3.60 a gallon for Nevada, increasing the price of a bottle of the hard stuff by $1.55 after Friday, according to the Fiscal Analysis Division of the Legislative Counsel Bureau.
The sin taxes were approved as part of a $836 million tax bill to fund Nevada's two-year $5 billion budget.
The long-awaited tax plan raises existing cigarette taxes and liquor taxes and contains both the tax package and funding totaling some $1.65 billion for public schools throughout the state.
It will provide the state with an estimated $836 million over the next two years.
Nevada joins a national trend started last year as states around the country raised tobacco taxes by a combined $3 billion, according to a recent report released by the National Conference of State Legislatures.
According to that report, the combined increase in tobacco taxes this year is $642 million.
Four states raised alcohol taxes this year for a combined increase of $22 million, the report said.
Nevada also raised gambling and slot taxes and created a new 5 percent tax on live entertainment and a 10 percent tax on casino shows.
The plan in Senate Bill 8 also increases fees charged by the secretary of state's office and reduces collection allowances the state pays businesses to collect cigarette, liquor and sales taxes.
"It's a state tax. Nobody can do anything," Hamid said.
During a night out, the first stop most people make is the ATM.
Banks paying a higher rate on their payrolls are also being levied a $7,000 annual tax on each branch, ATMs excluded, after Friday.
ATM fees have not been raised as a result of the new taxes, but if they are that will be an independent business decision, according to the Analysis Division's Russell Guindon.
The new live entertainment tax passed by state lawmakers and signed by Gov. Kenny Guinn last week won't kick in until Jan. 1.
There will be a 10 percent tax on tickets for most events and a 5 percent tax at large gatherings seating more than 7,500 people.
"What will happen is Sept. 1 there will be some changes to the casino entertainment tax, with the introduction of the live entertainment tax becoming effective Jan. 1," Guindon said.
The former casino entertainment tax will end and a new charge will be implemented.
Establishments with between 300 and 7,500 seats must pay 10 percent of admissions and any food or merchandise sold, according to Guindon. Establishments with fewer than 300 seats, less than 51 slot machines or six table games must also pay 10 percent.
Taxpayers won't find any relief at home, either.
The Legislature raised the real-estate transfer tax charged by counties by $2.60 per $1,000 value of a home, business or land. That increase, which goes into effect Oct. 1, triples the $1.30 per $1,000 valuation tax now charged in Carson, Douglas and Storey counties to $3.90. Washoe County's $1.50 transfer tax will go up to $4.10. The highest rate in the state will be in Clark County, where the tax will double its $2.50 per $1,000 transfer tax to $5.10.
The median price of homes in the Reno-Sparks-Carson City area is $180,000, meaning the transfer tax on a sale will increase from $270 to $738.
A night out with Nevada's sin taxes
Pack of Marlboros Before: $4.44 After: $4.99
Six-pack of Budweiser Before: $5.25 After: $5.29
A fifth of Early Times whiskey Before: $8.69 After: $10.24
Concert ticket Before: $25 After: $27.50
