Nevada has _no_ income tax? How do they pay for anything? In Sweden, income tax accounts for 60% of the entire tax base.
Do states in the US have other revenue streams other than taxes? Because I just assume that corporate tax is also a non-starter
Nevada is mostly desert with vast strands of land people do not inhabit. They rely on mines, the US government, and being next to California for their money. Area 51 for example. The Yucca Mountain Nuclear Waste Repository as another.
California in the past banned gambling so that is how Las Vegas got started. As far as I know now you can only gamble in the state lotteries or on Native American reservations.
They are also trying to do the Delaware thing and be a place for corporations to incorporate in. Many states charge franchise fees and income taxes on corporations. Nevada charges nothing except yearly filing fees. Last I checked Microsoft chose this state for their legal headquarters.
Local jurisdictions levy taxes on property and sales.
US States often orient their taxes to take advantage of local economies, attracting certain types of businesses or residents.
Sometimes the reasons are political or weird quirks, like in Texas where taxation is (by design) very difficult to change under their constitution.
Beyond that, sales tax on consumption. Property taxes on homes, vehicles, etc. gasoline tax for roads, typically both Federal and State. Nevada in particular is a hospitality state with much tourism so they’re likely getting good tax money on this.
Counties within a state and cities and towns may also add on, say a percent or two for schools or a big infrastructure project. Sometimes these are temporary measures for a fixed number of years. It’s all variable and complicated.
Here's a breakdown of their 2020 revenue: https://ofm.wa.gov/washington-data-research/statewide-data/w...
TL;DR:
- Washington is slightly more dependent on charges for services than the U.S. average.
- Washington depends more heavily on excise taxes, including the general sales & use tax, selective sales taxes, and the gross receipts tax (business & occupation tax) than most any other state.
- Washington is the only state with a general gross receipts tax - the Business & Occupation Tax.
Source: Rockefeller Institute's 2023 report, table 12A. <https://rockinst.org/issue-area/balance-of-payments-2023/>
The only states whose residents have on average paid more taxes than they receive back in terms of federal spending from 2015 to 2021 are ~~NY~~ CT, NJ, and MA. ~~NH, WY, ND, UT, SD, VT, and NE (+$3,907~~ WA, NY, UT, CO, NH, CA, and IL (+$1,794 seven-year per capita average) are also in the bottom ten in terms of being closest to breakeven. To put another way, residents of all 40 other states get more federal spending per person than they pay in federal taxes, than IL. Source: Rockefeller Institute's 2023 report, table ~~12A~~ 12B. <https://rockinst.org/issue-area/balance-of-payments-2023/>