The Economic Forum voted Friday to reduce cigarette tax revenue estimates by $20.9 million for the 2010-11 biennium.
Cigarettes was the first major revenue source taken up by the panel. Analysts pointed to the federal tax increase of 62 cents per pack as a key reason for their gloomy projections. In addition, they said Nevada expects a reduced number of tourists visiting the state over the coming fiscal year and a lower population growth rate for the state than in the past.
Before taking up the major revenues, the forum members agreed to accept the staff recommendations from their Technical Advisory Committee for a host of so-called minor revenues. Those minor revenues were reduced $15.8 million compared to December's projections. They are expected to generate $522.1 million for the coming biennium " a 2.9 percent drop.
According to the projection, the cigarette tax will generate $188.4
million over the biennium.
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