Nevada Wins Bronze for Lowest Tax Rate

It’s good to live in Nevada – especially when you look at our low tax rate. WalletHub, a financial social media community, recently released a list of states ranked by the amount of taxes they charge the average citizen. Nevada came in third, behind Wyoming and Alaska.

Wyoming has an average tax rate of $2,365, Alaska a tax rate of $2,791 and the Silver State came in at $3,370 — 52 per cent better than the nation’s average.

Our lack of local or state income tax helped us jump in the rankings, and our 7.97-per-cent tax on telecommunications was tied for the lowest in the country (WalletHub).

We seem to be pretty famous for our low taxes; an article on eHow giving 10 reasons to live in Nevada has taxes as the top reason why you should move here. (Also included are our culture, scenery, entertainment and food.)

The highest places to pay taxes in the U.S.? They are Nebraska ($9,450), California ($9,509) and New York ($9,718). For the lowest real estate taxes, you’d have to move to Hawaii (0.28 per cent) or Alabama (0.43 per cent). Alaska and Oregon have the lowest vehicle sales taxes.

As mentioned in a previous blog, Nevada is currently celebrating its 150-year anniversary. March 21, 1864, is the date that President Abraham Lincoln signed legislation, allowing Nevada to become a part of the United States of America. To mark this occasion, on March 21, 2014, first lady Kathleen Sandoval used a sword – yes, a sword – to cut into a 1,300-pound angel food cake that marks the sesquicentennial. The sword was previously owned by Nevada’s fifth governor, Charles Clark Stevenson.

The cake was in the shape of Nevada, and comprised 170 sheet cakes and 520 pounds of white citrus frosting. It is an exact duplicate of the one created for the state’s 100-year anniversary. Volunteers spent four days to bake the cakes, and seven hours to assemble them in the shape of Nevada. The icing was completed early Friday.

In 1864, when Nevada became a state, taxes were completely different – and much lower. The Revenue Act of 1864 required those who made less than $600 to pay 0 per cent; $600 to $5,000 to pay 5 per cent; $5,000 to $10,000 to 7.5 per cent; and $10,000 and above to pay 10 per cent. When translated into more current dollars (2008, to be exact), the tax rates were 0 per cent for $13,260; 5 per cent for $13,260 to $110,496; 7.5 per cent for $110,496 to $220,993 and 10 per cent for $220,993 and above.

That same act – which expired in 1873 – also included taxes on matches and photographs.

If current taxes are on your mind, feel free to give me a call. My expertise is in financial guidance for both individuals and business, something I have been involved in since 2002. I am available for basic tax management and accounting, and more in-depth services like financial statements and financial planning.

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