Reno-Sparks Metrics

Here are the latest economic stats and graphs for Northern Nevada. Please feel free to share this information far and wide.

stat 8-1-19

positive 8-1-19

assisted 8-1-19

emp 8-1-19

job growth 8-1-19

yoy construction 8-1-19

visitor 8-1-19

gaming 8-1-19

taxable 8-1-19

single family 8-1-19

resales 8-1-19

earnings 8-1-19

weekly hours 8-1-19

fuel 8-1-19

gold 8-1-19

pot 8-1-19

Northern Nevada Metrics

Here are the latest economic stats and graphs for Northern Nevada. Please feel free to share this information — and as always, don’t hesitate to contact us with questions.
 
stat 5-16

positive 5-16

emp index 5-16
job growth 5-16
u3 5-16
yoy 5-16
visitor 5-16
gaming 5-16
retail 5-16
family home 5-16
home resales 5-16
housing opp 5-16
weekly earnings 5-16
weekly hours 5-16
fuel 5-16
gold 5-16
pot 5-16

Northern NV Metrics

Here are the latest economic stats and graphs for Northern Nevada. Please feel free to share this information — and as always, don’t hesitate to contact us with questions. Also, if you’d like to sign up for our weekly newsletter, the Fact Pack, you can do so in the sign up box on the right side of this page.
 
r stat 4-11

r pos 4-11

r emp index 4-11
r job growth 4-11
r yoy 4-11
r visitor 4-11
r gross gaming 4-11
r taxable 4-11
r resales 4-11
r weekly earnings
r weekly hours 4-11
r fuel 4-11
r gold 4-11
r pot 4-11

Northern NV Metrics

Here are the latest economic stats and graphs for Northern Nevada. Please feel free to share this information — and as always, don’t hesitate to contact us with questions. Also, if you’d like to sign up for our weekly newsletter, the Fact Pack, you can do so in the sign up box on the right side of this page.
 
r stat highlights

r positive

r emp index
r job growth
r yoy construction
r annualized
r gross gaming
r taxable retail
r home resales
r housing opp
r weekly earnings
r weekly hours
r fuel
r gold
r pot

Northern Nevada Economic Metrics

Here the latest economic stats and graphs for Northern Nevada. Please feel free to share this information — and as always, don’t hesitate to contact us with questions.
 
r stat highlights

r positive

r emp index
In December 2018, the RCG Employment Index’s 12-month moving average (“12MMA”) for Reno-Sparks increased by 0.1 points to 99.5. The monthly Index held steady at 99.9 since last month, still under the all-time high of 100.0, which was last reached in October 2018. The trough of 89.6 occurred in January 2010.
r job growth
Reno-Sparks job growth on a 12MMA held steady from November to December, at 4.4%. The rate of growth is down .5 points from the 4.9% recorded in a year ago in December 2017. The lowest rate of growth in the last 10 years happened in December 2009 (-9.3%). The region’s previous record 12MMA high was in January 2018 when jobs grew by 5.1%.
The 12MMA headline unemployment rate also held at 3.7% in December. When compared to the December 2017 headline rate of 4.2%, this year’s rate was 0.5 percentage-points lower. Reno has reached unemployment rates seen before the Great Recession.
r u3
The U-3 unemployment rate, or headline rate, for Nevada, after ticking down 0.3 points in Q3 2018, dropped another 0.1 points to 4.5 in Q4. The U-3 rate is now lower than the average rate for 2007 (4.6%), the year the Great Recession hit. Along with this drop in the U-3 rate, the U-6 rate, which measures underemployment, had a similar 0.1-point decline from 9.4% to 9.3%.
In terms of the U-3 rate, Nevada is still .6 points higher than the national average of 3.9%. While the U-6 rate saw some improvement, the national average of 7.6% is still 1.7 points lower than Nevada’s rate.
r yoy construction
There were 91,658 construction jobs in Nevada in December 2018. 17,692 (or 19.3%) of those jobs were in the Reno-Sparks MSA (12MMA). This is a 5.4% jump from the 16,792 jobs reported in December 2017, and the 7th consecutive month of significant job growth for the area. Reno’s very healthy economy has produced strong residential and commercial (especially industrial) real estate demand, but also has led to a housing (for-sale and for-rent) and industrial space shortage.
The latest stats show that 7.3% of the region’s payroll job-base is in construction. Construction jobs in the Reno-Sparks MSA peaked at 24,042 in August 2006 on a 12MMA basis. Current construction jobs are at 73.5% of the peak. At the time of the peak, the industry accounted for 11.1% of all jobs. The large number of jobs in the construction sector was a consequence of the pre-Recession real estate bubble. The sector bottomed out in February 2012 when there were only 8,792 construction jobs.
r visitor volume
The annualized visitor count for Washoe County decreased 0.49% from November 2018 to 4.99 million in December. The YoY visitation rate sank by 2.9% in December, continuing a downward trend in both YoY and MoM numbers. This is in contrast to Clark County, where visitation numbers grew by .17% in December and began to tick upward in October 2018.
Washoe County has now seen four straight months of YOY decline, bringing the average annualized rate down to 2.0%. The 12MMA peak occurred in May 2004, when 467,904 visitors came to Washoe. The highest annual growth rate happened in January 2013, when visitor volume grew 5.8%.
r gross gaming
Washoe County’s 12MMA YOY gross gaming revenue grew by 4.4% in December 2018, a drop of 0.8% from November. This leaves total 12MMA revenue at $72.1 million. In comparison, Clark County saw a YOY growth rate of 2.4% this December. The YOY growth rate for Washoe County has been positive for more than 3 years straight at an average of 3.4%, corresponding to a similar growth streak in visitor volume. Industry insiders also credit a reinvigorated Reno economy and casinos’ focus on locals for this stability.
Gaming revenues peaked nearly 12 years ago in June 2006 at $89.4 million, and the county is still at 80% of that peak. On an annual growth rate basis, the peak of 5.5% happened 12 years ago in May and June of 2006.
r taxable retail
Washoe County’s economy continues to benefit from rising taxable retail sales. In November 2018, the 12MMA growth rate was 5.1% YOY, a decrease of 1.1 points from November 2017. The YOY growth rate has hovered about 5% after dropping in August. Taxable retail sales reached $721.5 million in November on a 12MMA basis, having already surpassed the previous peak (March 2016) on a nominal basis (not inflation-adjusted). Washoe’s taxable sales growth rate is 0.1 points higher than the statewide average.
Job growth, success in business attraction and retention, resulting in construction activity plus proximity to the Bay Area and the Pacific Northwest, are driving the region’s economy, though increasing visitation has also contributed.
r single family
The Q4 2018 median sales price of $375,000 for single-family home resales in the Reno-Sparks area represents a 7.3% jump YOY. Compared to the previous quarter, the price dropped by 1.3%. The Q4 median price is now approximately $52,501 (16.3%) greater than the $319,393 that would have resulted from using the 1990-2001 average annual appreciation rate of 4% per year. Last quarter the difference was $60,607, a difference of -2.7 points. This represents the first drop in the Reno-Sparks median price since 3Q 2016. Housing affordability is a looming problem that is being monitored closely by public officials and community leaders for its potential negative impact on economic growth and business attraction.
r home resales
In December 2018 MLS home resales in Washoe County fell by 1.62% from the previous month to 496 on a 12MMA. When compared to December 2017, resales fell by 12.1%, which continues the trend of YoY sales decline that began in June 2018.
The median sales price rose to $376,168 (12MMA) in November, an 11.7% jump from the year prior. By comparison, the November Las Vegas median resale price rose by 14.0%, but is much lower at $257,575. The looming housing affordability issue in both regions also applies to the new home market.
r commercial
According to Colliers International, Reno-Sparks Office vacancy in Q4 2018 has grown after falling in Q2 and Q3. Office vacancy rose by 0.8 points from the previous quarter to 11.8%. The Reno-Sparks Spec Office market has seen slow and steady improvement since Q3 2010, when the Spec Office market had reached peak vacancy of 21.6%.
The Industrial vacancy rate also rose in Q4, adding 0.8 percentage-points and reaching 5.7%. This rise comes after falling for 9 straight quarters, though the industrial vacancy rate is still well below the 10% stabilized rate.
r weekly earnings
The 12MMA of the nominal average weekly wage (not adjusted for inflation) in the Reno-Sparks MSA grew about $10 (or .23%) in December 2018 over the previous month, to $853. This marked the 18th consecutive month of growth. On a YOY basis, this wage is up 6.9% from $798 in December 2017.
The inflation-adjusted (real) 12MMA wage for December 2018 of $713.67 is up just over $7 from the previous month’s wage and is $29 (4.3%) higher than the wage recorded 12 months ago. Reno-Sparks workers are starting to see real wage growth pick up after more than a year of relative stagnation.
In December, the region’s average weekly earnings were 5.1% higher than the Las Vegas average of $676. Reno-Sparks’ real wage has fallen from the $730 peak in May 2016, just over 2 years ago.
r weekly hours
In December 2018, the Reno-Sparks MSA’s 12MMA average weekly hours worked grew for the second straight month, hitting 35.7 hours. Weekly hours worked have finally started to climb after remaining stagnant for much of 2018. Weekly hours in Las Vegas also seem to be trending slowly upward. On a YOY basis, 12MMA weekly hours for Reno-Sparks are the same as they were in December 2017. The most recent weekly hours worked peak happened in July 2009 at 36.8 hours, while the trough of 32.5 hours happened in September 2014.
r fuel
The average price per gallon for regular unleaded gasoline in Reno-Sparks as of Feb 4, 2019 was $2.81, down $0.17 (-5.7%) from $3.25 the previous month. When compared to the previous year, the price of regular unleaded is down $0.14 (-4.8%). Gas prices have been rising steadily and could impact resident and business spending in other 1areas of the local economy.
According to AAA, “For most states, gas prices are starting off the first week in February cheaper than the last week in January. On the week, only eight states saw gas prices increase which is a big shift from the week prior that saw increases for 25 states. With the majority of state gas price averages decreasing, the national gas price average held flat at $2.26 even though the Energy Information Administration’s (EIA) latest demand rate reflected summer-like numbers. 
For the week ending Jan 25, the EIA reported U.S. gasoline demand at 9.6 million b/d. The last time the rate was this high was during the 2018 Labor Day weekend. As the EIA rate is an estimate, it’s considered preliminary and the agency may revise it later this year when it releases final figures for the month. If the estimate is not revised, one reason for the jump could be the extreme cold weather seen last week. 
“Three-fourths of the country faced below freezing temperatures last week which may have prompted many motorists, especially in the mid-west, to fill-up early and often ahead of the storm, in turn driving demand. This is similar to what we see prior to hurricanes,” said Jeanette Casselano, AAA spokesperson. “Now that the storm has passed, demand is likely to fall more in-line with typical February estimates.”
r gold
Per the World Gold Council, in January the 12MMA month-end spot price for an ounce of pure gold fell by about $2 (-0.14%) from December to just over $1,262. On a YOY basis, the 12MMA price of gold is down 1.1%. The peak of $1677.77 occurred in December 2012. Despite the dips in recent months, the YOY growth rate has generally trended upward for the last 2 years.
r pot
Nevada excise tax revenues generated from marijuana sales through the first 17 months of its collection are over $101 million, with the most recent recorded month, November 2018, seeing 1.23% growth in revenue from the previous month, and 51.53% growth over November 2017. This November brought in over $8.3 million in combined retail and wholesale taxes. The most readily available report by the Nevada Department of Taxation contains only retail and wholesale excise taxes, and does not include sales and use taxes paid at points of sale in the dispensaries, or the annual licensing fees paid by the industry. The wholesale excise tax is collected at a 15% rate from growers to dispensaries on medicinal- and recreational-use marijuana, while the 10% retail excise tax is charged only to recreational users purchasing marijuana at a dispensary.
According to the Department’s original forecast, tax revenue from the sale of marijuana was expected to reach $120 million in the first 2 years. Collections indicate that the performance is on track to exceed the Department’s forecast.

Northern Nevada Economic Metrics

Below are the latest economic stats and graphs for Northern Nevada. Please feel free to share this information — and as always, don’t hesitate to contact us with questions.  
r stat 1-9

r positive 1-9

r emp index 1-9
In November 2018, the RCG Employment Index’s 12-month moving average (“12MMA”) for Reno-Sparks increased by 0.1 points to 99.5. The monthly Index went up 0.2 points since October, and has hit an all-time high at 100.1, breaking the 100-point barrier for the first time. The trough of 89.6 occurred in January 2010.
r job growth 1-9
Reno-Sparks job growth on a 12MMA grew 0.2 points from October to November, from 4.2% to 4.4%. The rate of growth is down a full 1.5 points from the 4.8% recorded in a year ago in August 2017. The lowest rate of growth in the last 10 years happened in December 2009 (-9.3%). The region’s previous record 12MMA high was in January 2018 when jobs grew by 5.1%.
The 12MMA headline unemployment rate fell 0.1 points to 3.7% in November. When compared to the November 2017 headline rate of 4.3%, this year’s rate was 0.6 percentage-points lower. Reno has reached unemployment rates seen before the Great Recession.
r u6 1-9
The U-3 unemployment rate, or headline rate, for Nevada, after ticking down 0.2 points in Q2 2018, dropped another 0.3 points to 4.6 in Q3. The U-3 rate is now dead even with the average rate for 2007 (4.6%), the year the Great Recession hit. Along with this drop in the U-3 rate, the U-6 rate, which measures underemployment, had a similar 0.3-point decline from 9.7% to 9.4%.
In terms of the U-3 rate, Nevada is tied for the 6th highest U-3 rate in the nation with Arizona and New Mexico. While the U-6 rate saw some improvement, Nevada still holds the 4th highest rate in the country, above the #5 spot held last quarter.
r yoy construction 1-9
There were 90,758 construction jobs in Nevada in November 2018. 17,550 (or 19.3%) of those jobs were in the Reno-Sparks MSA (12MMA). This is a 5.2% jump from the 16,683 jobs reported in November 2017, and the 6th consecutive month of significant job growth for the area. Reno’s very healthy economy has produced strong residential and commercial (especially industrial) real estate demand, but also has led to a housing (for-sale and for-rent) and industrial space shortage.
The latest stats show that 7.4% of the region’s payroll job-base is in construction. Construction jobs in the Reno-Sparks MSA peaked at 24,042 in August 2006 on a 12MMA basis. Current construction jobs are at 73% of the peak. At the time of the peak, the industry accounted for 11.1% of all jobs. The large number of jobs in the construction sector was a consequence of the pre-Recession real estate bubble. The sector bottomed out in February 2012 when there were only 8,792 construction jobs.
r visitor 1-9
The annualized visitor count for Washoe County decreased 0.29% from October 2018 to 5.01 million in November. The YoY visitation rate sank by 2.2% in November, continuing a downward trend in both YoY and MoM numbers. This is in contrast to Clark County, where visitation numbers began to tick upward in September 2018.
Washoe County has now seen three straight months of YOY decline, bringing the average annualized rate down to 2.6%. The 12MMA peak occurred in May 2004, when 467,904 visitors came to Washoe. The highest annual growth rate happened in January 2013, when visitor volume grew 5.8%.
r gross gaming 1-9
Washoe County’s 12MMA YOY gross gaming revenue grew by 5.2% in November 2018, and is back up 0.7% from October after two months of decline. This leaves total revenue at $72.2 million. In comparison, Clark County saw a YOY growth rate of 2.3% this November. The YOY growth rate for Washoe County has been positive for more than 3 years straight at an average of 3.4%, corresponding to a similar growth streak in visitor volume.
Gaming revenues peaked nearly 12 years ago in June 2006 at $89.4 million, and the county is still at 80% of that peak. On an annual growth rate basis, the peak of 5.5% happened 12 years ago in May and June of 2006.
r taxable retail 1-9
Washoe County’s economy continues to benefit from rising taxable retail sales. In October 2018, the 12MMA growth rate was 5.4% YOY, a decrease of 0.6 points from October 2017. The YOY growth rate has remained essentially flat over the last 2 months, after dropping in August. Taxable retail sales reached $719.5 million in October on a 12MMA basis, having already surpassed the previous peak (March 2016) on a nominal basis (not inflation-adjusted). Washoe’s taxable sales growth rate is 0.6 points higher than the statewide average.
Job growth, success in business attraction and retention, resulting in construction activity plus proximity to the Bay Area and the Pacific Northwest, are driving the region’s economy, though increasing visitation has also contributed.
r single family 1-9
The Q3 2018 median sales price of $380,000 for single-family home resales in the Reno-Sparks area represents a 8.9% jump YOY. Compared to the previous quarter, the price grew by 1.3%. The Q3 median price is now approximately $60,607 (18.9%) greater than the $319,393 that would have resulted from using the 1990-2001 average annual appreciation rate of 4% per year. Last quarter the difference was $58,684. The Reno-Sparks median price is increasing rapidly. Housing affordability is a looming problem that is being monitored closely by public officials and community leaders for its potential negative impact on economic growth and business attraction.
r home resale 1-9
In November 2018 MLS home resales in Washoe County fell by 1.0% from the previous month to 505 on a 12MMA. When compared to November 2017, resales fell by 11.2%, which continues the trend of YoY sales decline that began in June 2018.
The median sales price rose to $374,502 (12MMA) in November, a 12.4% jump from the year prior. By comparison, the November Las Vegas median resale price rose by 14.6% but is much lower at $255,483. The looming housing affordability issue in both regions also applies to the new home market.
r housing opp 1-9
In Q3, 2018 the Housing Opportunity Index (“HOI”) for the Reno-Sparks MSA dropped 1.4 points from 39.3 in Q2 to 37.9 on a four-quarter moving average (“4QMA”) basis. The U.S. index decreased by 0.5 points for the second month in a row, from 59.7 to 59.2, during the same period. The Reno-Sparks 4QMA HOI is now 20.8 points (35%) lower than the national number. On a YOY basis, the Reno-Sparks index fell 11.1 points from 49.0 in Q3 2017.
Reno-Sparks’ HOI peaked at 85.8 in Q1, 2012 and has been trending downward ever since. It bottomed out at 17.3 in Q4, 2006 at the peak of the housing boom. The 10-year average is 64.5. The region’s latest index is now 26.6 points below that 10-year average. There will be issues regarding housing affordability will spillover effects on economic growth and business attraction in Reno-Sparks if the index continues to deteriorate.
The HOI is based on the share of homes sold that are affordable to a family earning the median income in the Reno-Sparks MSA, assuming standard mortgage underwriting criteria.
r commercial 1-9
According to Colliers International, Reno-Sparks Office vacancy continues a downward trajectory in Q3 2018. Office vacancy fell 0.2 points from the previous quarter to 11.8% on a 4QMA basis, its lowest value in more than 13 years, since Q3 2004. The Reno-Sparks Spec Office market has seen slow and steady improvement since Q3 2010, when the Spec Office market had reached peak vacancy of 21.6%.
The Industrial vacancy rate also fell in Q3, dropping 0.4 percentage-points and reaching 5.2%. After 5 consecutive quarters of increasing vacancy, the Industrial markets vacancy rate has now fallen 9 straight quarters and is now well below the 10% stabilized rate.
r weekly earnings 1-9
The 12MMA of the nominal average weekly wage (not adjusted for inflation) in the Reno-Sparks MSA grew about $5 (or 0.64%) in November 2018 over the previous month, to $841. This marked the 17th consecutive month of growth. On a YOY basis, this wage is up 5.8% from $795 in November 2017.
The inflation-adjusted (real) 12MMA wage for November 2018 of $704.79 is up just over $3 from the previous month’s wage, and is $22 (3.2%) higher than the wage recorded 12 months ago. Reno-Sparks workers are starting to see real wage growth pick up after more than a year of relative stagnation.
In November, the region’s average weekly earnings were 4.8% higher than the Las Vegas average of $673. Reno-Sparks’ real wage has fallen from the $730 peak in May 2016, just over 2 years ago.
r weekly hours 1-9
In November 2018, the Reno-Sparks MSA’s 12MMA average weekly hours worked remained at 35.4 for the third straight month. Weekly hours worked have leveled off after a brief drop beginning in October 2017. Conversely, weekly hours in Las Vegas seem to be leveling after trending slowly upward. On a YOY basis, 12MMA weekly hours for Reno-Sparks are down 0.4 points from November 2017. The most recent weekly hours worked peak happened in July 2009 at 36.8 hours, while the trough of 32.5 hours happened in September 2014.
r fuel 1-9
The average price per gallon for regular unleaded gasoline in Reno-Sparks as of Jan 2, 2019 was $2.98, down $0.27 (8.2%) from $3.25 the previous month. When compared to the previous year, the price of regular unleaded is up $0.15 (5.2%). Gas prices have been rising steadily and could impact resident and business spending in other areas of the local economy.
According to AAA, “Heading into 2019, gasoline demand is expected to dwindle during the month of January, an expected change following the busy holiday travel season. At the same time, OPEC will begin production cuts on January 1, with hopes that the shift in global supply will push oil prices higher. The effectiveness of the cuts will likely not be known until later in the first quarter. 
“All eyes are on OPEC to kick off the year,” said Jeanette Casselano, AAA spokesperson. “Many are waiting to see if they stick to their promise to cut crude production by 1.2-million b/d and if the proposed cuts will be enough to restore balance to the market.” 
Over the past few years, OPEC and partnering countries have demonstrated a strong resolve to comply with proposed cuts in production. It is likely that the cartel will reconvene in April, and if there is a need to further balance global supply and demand, OPEC will likely tweak current production numbers at that meeting.”
r gold 1-9
Per the World Gold Council, in November the 12MMA month-end spot price for an ounce of pure gold fell by about $5 (0.4%) from October to just over $1,265. On a YOY basis, the 12MMA price of gold is still up 0.9%. The peak of $1677.77 occurred in December 2012. Despite the dips in recent months, the YOY growth rate has generally trended upward for 2 years, and is up for the last 12 months straight.
r pot 1-9
Nevada excise tax revenues generated from marijuana sales through the first 16 months of its collection are over $101 million, with the most recent recorded month, October 2018, seeing a whopping 10.1% increase in revenue from the previous month. October brought in about $8.2 million in combined retail and wholesale taxes. The most readily available report by the Nevada Department of Taxation contains retail and wholesale excise taxes. These taxes do not include sales and use taxes paid at points of sale in the dispensaries, or the annual licensing fees paid by the industry. The wholesale excise tax is collected at a 15% rate from growers to dispensaries on medicinal- and recreational-use marijuana, while the 10% retail excise tax is charged only to recreational users purchasing marijuana at a dispensary.
According to the Department’s original forecast, tax revenue from the sale of marijuana was expected to reach $120 million in the first 2 years. Collections indicate that the performance is on track to exceed the Department’s forecast.

Reno-Sparks Economic Metrics

Below are all the latest economic data available for Northern Nevada. Please feel free to share these graphs far and wide — and as always, don’t hesitate to contact us with questions.
 
stat

posit r emp index

In August 2018, the RCG Employment Index’s 12-month moving average (“12MMA”) for Reno-Sparks increased by 0.1 points to 99.5. While the Index has been increasing at a slower rate, it continues making progress closer to the all-time high. The Index is up 0.7 points since August 2017. It peaked more than 12 years ago in December 2005 at 99.8 aka 100.0. The trough of 89.6 occurred in January 2010.

r job growth

Reno-Sparks job growth dropped 0.1 points between July and August, from 4.5% to 4.4% on a 12MMA basis. The rate of growth is down 0.4 points from the 4.8% recorded in a year ago in August 2017. The lowest rate of growth in the last 10 years happened in December 2009 (-9.3%). The region’s previous record 12MMA high was in August 2016 when jobs grew by 4.9%.
The 12MMA headline unemployment rate fell 0.1 points to 3.8% in August. When compared to the August 2017 headline rate of 4.5%, this August’s rate was 0.7 percentage-points lower. Reno has reached unemployment rates seen before the Great Recession.
r yoy
There were 88,267 construction jobs in Nevada in August 2018. 17,100 (or 19.4%) of those jobs were in the Reno-Sparks MSA (12MMA). This is a jump of 5% from the 16,292 jobs reported in August 2017, and the second consecutive month of significant job growth for the area. Reno’s very healthy economy has produced strong residential and commercial real estate demand, but also has led to a housing shortage and certain types of commercial space, especially industrial.
The latest stats show that 7.7% of the region’s payroll job-base is in construction. Construction jobs in the Reno-Sparks MSA peaked at 24,042 in August 2006 on a 12MMA basis. Current construction jobs are at 71% of the peak. At the time of the peak, the industry accounted for 11.1% of all jobs. The large number of jobs in the construction sector was a consequence of the pre-Recession real estate bubble. The sector bottomed out in February 2012 when there were only 8,792 construction jobs.
r visitor volume
The annualized visitor count for Washoe County decreased 0.67% from July 2018 to 5.09 million in August. Despite a YOY visitation growth rate of just 0.4%, Washoe County continues to outpace growth in Clark County, which had a visitation contraction in August of -1.8%.
Early in 2016, Washoe had been lagging behind Clark in visitor growth, but the tables have turned with YOY visitor growth rates in Washoe beating those of Clark every month since June 2016 for the reasons noted in the Clark County Stat Pack section.
Washoe County has now seen YOY growth in visitor volume every month since January 2015, at an average annualized rate of about 3%. The 12MMA peak occurred in May 2004, when 467,904 visitors came to Washoe. The highest annual growth rate happened in January 2013, when visitor volume grew 5.8%. Despite earlier challenges, the Reno-Sparks hospitality industry has made important gains and continues to grow stronger.
r gross gaming
Washoe County’s 12MMA YOY gross gaming revenue grew by 6% in August 2018, and is up 0.66% from the previous month. This leaves total revenue at $71.9 million. In comparison, Clark County saw a YOY growth rate of .8% this August. The YOY growth rate for Washoe County has been positive for more than 3 years straight at an average of 3.3%, corresponding to a similar growth streak in visitor volume.
Gaming revenues peaked nearly 12 years ago in June 2006 at $89.4 million, and the county is now at 80% of that peak. On an annual growth rate basis, the peak of 5.5% happened 12 years ago in May and June of 2006.
r taxable retail
Washoe County’s economy continues to benefit from rising taxable retail sales. In July 2018, the 12MMA growth rate was 6.9% YOY, an increase of 0.6 points from July 2017. The YOY growth rate has remained essentially flat over the last 4 months. Taxable retail sales reached $715.1 million in July on a 12MMA basis, having already surpassed the previous peak (March 2016) on a nominal basis (not inflation-adjusted). Washoe’s taxable sales growth rate is 2.5 points higher than the statewide average.
Job growth, success in business attraction and retention, resulting in construction activity plus proximity to the Bay Area and the Pacific Northwest, are driving the region’s economy, though increasing visitation has also contributed.
r weekly earnings
The 12MMA of the nominal average weekly wage (not adjusted for inflation) in the Reno-Sparks MSA grew about $6 (or 0.77%) in August 2018 over the previous month, to $823. This marked the 14th consecutive month of growth. On a YOY basis, this wage is up 3.9% from $792 in August 2017.
The inflation-adjusted (real) 12MMA wage for August 2018 of $693 is up almost $4 from the previous month’s wage, and is $9 (0.77%) higher than the wage recorded 12 months ago. Reno-Sparks workers are starting to see real wage growth pick up after more than a year of relative stagnation.
In July, the region’s average weekly earnings were 3% higher than the Las Vegas average of $672. Reno-Sparks’ real wage has fallen considerably from the $730 peak in May 2016, just over 2 years ago.
r weekly hours
In August 2018, the Reno-Sparks MSA’s 12MMA average weekly hours worked remained at the previous month’s 35.3 hours. Weekly hours worked appear to be leveling off some after trending down since October 2017. Conversely, weekly hours in Las Vegas seem to be leveling after trending slowly upward. On a YOY basis, 12MMA weekly hours for Reno-Sparks are down 0.6 points from August 2017. The most recent weekly hours worked peak happened in July 2009 at 36.8 hours, while the trough of 32.5 hours happened in September 2014.
r fuel
The average price per gallon for regular unleaded gasoline in Reno-Sparks as of Sep 23, 2018 was $3.44, up $0.04 (1.1%) from $3.40 the previous month. When compared to the previous year, the price of regular unleaded is up $0.43 (14.3%). Gas prices have been rising steadily and could impact resident and business spending in other areas of the local economy.
According to AAA, “The September switch-over to winter-blend gasoline ushered in cheaper gas prices compared to the summer, but that drop was short lived. Crude oil accounts for half of the retail pump price and crude is selling at some of the highest price points in four years. That means fall and year-end prices are going to be unseasonably expensive. 
Motorists in the West Coast region are paying the highest prices for retail gasoline in the country, with six of the region’s states represented in the nation’s top 10 most expensive list. Hawaii ($3.84) is the nation’s most expensive market, followed by California ($3.80), Washington ($3.44), Alaska ($3.33), Oregon ($3.29), Nevada ($3.27), and Arizona ($2.91). All prices in the region have increased on the week, with California (+7 cents) leading the way. Nevada increased five cents, while Hawaii and Washington each increased four cents. 
The EIA’s weekly petroleum status report showed West Coast gasoline stocks increased slightly to 27.89 million bbl during the week that ended on September 28. Stocks are approximately 760,000 bbl lower than where they were at this time last year, which could lead to price volatility if there are any supply shocks in the region this week.”
r gold
Per the World Gold Council, in September the 12MMA month-end spot price for an ounce of pure gold fell by about $8 (0.6%) from August to just over $1,275. On a YOY basis, the 12MMA price of gold is still up 2.4%. The peak of $1677.77 occurred in December 2012. Despite the dips in recent months, the YOY growth rate has generally trended upward for 2 years, and is up for the last 10 months straight.

Update: Northern Nevada Metrics

Reno-Sparks job growth, on a 12-month moving average (MMA), dropped 0.2 points in June, from 4.8 percent to 4.6 percent. The rate of growth is down 0.1 points from the 4.7 percent recorded in a year ago. The 12MMA “headline” unemployment rate fell 0.1 points to 3.9 percent in June. When compared to the June 2017 headline rate of 4.6 percent, this May’s rate was 0.7 percentage-points lower. Reno has reached rates seen before the Great Recession.
For the rest of the Reno-Sparks metrics, scroll down.
r stat highlights
 

r positive

r assisted new jobs
The FY2018 final results for EDAWN-assisted new jobs were adjusted to 2,148 jobs. This is a 35.4% decrease over the number of assisted new jobs in 2017. The FY2019 forecast also predicts 2,500 new jobs, a considerable drop from previous years. EDAWN’s latest data supports its success in enabling job growth and diversification. Note: These figures do not include jobs related to Tesla.
r emp index
In June 2018 the RCG Employment Index’s 12-month moving average (“12MMA”) for Reno-Sparks held steady at 99.4. While the Index has been increasing at a slower rate, it continues making progress closer to the all-time high. The Index is up 0.7 points since May 2017. It peaked more than 12 years ago in December 2005 at 99.8 aka 100.0. The trough of 89.6 occurred in January 2010.
1
In June Reno-Sparks job growth, on a 12MMA, dropped 0.2 points from 4.8% to 4.6%. The rate of growth is down 0.1 points from the 4.7% recorded in a year ago in June 2017. The lowest rate of growth in the last 10 years happened in December 2009 (-9.3%). The region’s previous record 12MMA high was in August 2016 when jobs grew by 4.9%.
The 12MMA headline unemployment rate fell 0.1 points to 3.9% in June. When compared to the June 2017 headline rate of 4.6%, this May’s rate was 0.7 percentage-points lower. Reno has reached rates seen before the Great Recession.
2
The U-3 unemployment rate, or headline rate, for Nevada, after ticking up 0.1 points in Q1 2018, moved back down by 0.2 points in Q2. The U-3 rate is now 0.3 points above the average rate for 2007 (4.6%), the year the Great Recession hit. Along with this drop in the U-3 rate, the U-6 rate, which measures underemployment, had a 0.7-point decline from 10.4% to 9.7%.
In terms of the U-3 rate, Nevada fell one spot to have the 6th highest headline rate in the nation. While the U-6 rate saw strong improvement, Nevada still holds the 5th highest rate in the country, falling from 3rd-highest in the previous quarter. Nevada businesses maintain a significant reliance on part-time workers.
3
There were 86,658 construction jobs in Nevada in June 2018. 16,958 (19.6%) of those jobs were in the Reno-Sparks MSA (12MMA). While this is a notable jump of 6.7% from the 15,892 jobs reported in June 2017, construction jobs were largely unchanged since February of this year. Reno’s very healthy economy has produced strong residential and commercial real estate demand, but also to shortages of housing units and certain types of commercial space, especially industrial.
The latest stats show that 7.7% of the region’s payroll job-base is in construction. Construction jobs in the Reno-Sparks MSA peaked at 24,042 in August 2006 on a 12MMA basis. Current construction jobs are at 70.5% of the peak. At the time of the peak, the industry accounted for 11.1% of all jobs. The large number of jobs in the construction sector was a consequence of the pre-Recession real estate bubble. The sector bottomed out in February 2012 when there were only 8,792 construction jobs.
4
The annualized visitor count for Washoe County increased 0.09% from May 2018 to just over 5.15 million in June. With a YOY visitation growth rate of 3.4%, Washoe County continues to outpace growth in Clark County, which had a visitation growth rate in May of -1.7%. See Clark County commentary.
Early in 2016, Washoe had been lagging behind Clark in visitor growth, but the tables have turned with YOY visitor growth rates in Washoe beating those of Clark every month since June 2016 for the reasons previously noted in the Clark County Stat Pack section.
Washoe County has now seen YOY growth in visitor volume every month for 3.5 straight years (since January 2015) at an average rate of 3%. The 12MMA peak occurred in May 2004, when 467,904 visitors came to Washoe. The highest annual growth rate happened in January 2013, when visitor volume grew 5.8%. Despite earlier challenges, the Reno-Sparks hospitality industry has made important gains and continues to grow stronger.
r gross gaming
Washoe County’s 12MMA YOY gross gaming revenue grew by 6.4% in June 2018. This brings total revenue up to $71.4 million, or 80% of the peak (see below). In comparison, Clark County had a YOY growth rate of 2.7% this June. Both counties saw an increase in the gross gaming revenue growth rate. The YOY growth rate for Washoe County has been positive for more than 3 years straight at an average of 3%, corresponding to a similar growth streak in visitor volume.
Gaming revenues peaked nearly 12 years ago in June 2006 at $89.4 million. On an annual growth rate basis, the peak of 5.5% happened 12 years ago in May and June of 2006.
r taxable retail
Washoe County’s economy continues to benefit from rising taxable retail sales. In May 2018, the growth rate was 6.9% YOY, up 0.5 points from May 2017. Compared to April 2018, the YOY growth rate is flat. Taxable retail sales reached $708 million in April, having already surpassed the previous peak (March 2016) on a nominal basis (not inflation-adjusted). As the chart shows, Washoe’s taxable sales growth is 2.6 points higher than the overall Nevada average.
Success in business attraction and retention, and proximity to the Bay Area and the Pacific Northwest, is driving the region’s economy. It is the primary cause of growth in taxable retail sales, though increasing visitation has also contributed.
5
The Q2, 2018 median sales price of $375,000 for single-family home resales in the Reno-Sparks area represents a 13% jump YOY. Compared to the previous quarter, the price grew by 1.9%. The Q2 median price is now approximately $58,684 (18.6%) greater than the $316,316 that would have resulted from using the 1990-2001 average annual appreciation rate of 4% per year. Last quarter the difference was $54,730. The Reno-Sparks median price is increasing rapidly. Housing affordability is a looming problem that is being monitored closely by public officials and community leaders for its potential negative impact on economic growth and business attraction.
6
In June 2018 MLS home resales in Washoe County fell by 2.4% from the previous month to 549 on a 12MMA. When compared to May 2017, resales fell by 0.4%, which is a major downward shift of 4 points compared to the same figure for May, ending more than 3 straight years of YOY increases with an average rate of growth of 4.2%.
The median sales price rose to $361,464 (12MMA) in June, a 13.9% jump from a year prior. By comparison, the Las Vegas median resale price in June rose by 14.5% but is much lower at $260,000. The looming housing affordability issue in both regions also applies to the new home market.
r housing opp
In Q2, 2018 the Housing Opportunity Index (“HOI”) for the Reno-Sparks MSA dropped 3.4 points from 42.7 in Q1 to 39.3 on a four-quarter moving average (“4QMA”) basis. The U.S. index decreased by 0.5 points, from 59.7 to 59.2, during the same period. The Reno-Sparks 4QMA HOI is now 19.9 points (34%) lower than the national number. On a YOY basis, the Reno-Sparks index fell 9.3 points from 48.6 in Q2, 2017.
Reno-Sparks’ HOI peaked at 85.8 in Q1, 2012 and has been trending downward ever since. It bottomed out at 17.3 in Q4, 2006 at the peak of the housing boom. The 10-year average is 64.6. The region’s latest index is now 25.3 points below that 10-year average. There will be issues regarding housing affordability will spillover effects on economic growth and business attraction in Reno-Sparks if the index continues to deteriorate.
The HOI is based on the share of homes sold that are affordable to a family earning the median income in the Reno-Sparks MSA, assuming standard mortgage underwriting criteria.
7
According to Colliers International, Reno-Sparks Office vacancy continues on a downward trajectory in Q2 2018. Office vacancy fell 0.1 points from the previous quarter to 12% on a 4QMA basis, its lowest value in more than 13 years, since Q4, 2004. The Reno-Sparks Spec Office market has seen slow and steady improvement since Q3 2010, when the Spec Office market had reached peak vacancy of 21.6%.
The Industrial vacancy rate also fell in Q1, dropping 0.7 percentage-points and reaching 5.6%. After 5 consecutive quarters of increasing vacancy, the Industrial markets vacancy rate has now fallen 8 straight quarters and is now well below the 10% stabilized rate. Although a large amount of new product has recently come to market, the Reno-Sparks MSA has had a healthy appetite for Industrial space.
r weekly hours
In June 2018, the Reno-Sparks MSA’s 12MMA average weekly hours worked remained at May’s figure of 35.4. Weekly hours appear to be leveling off some after trending down since October 2017. Conversely, weekly hours in Las Vegas seem to be leveling after trending slowly upward. On a YOY basis, 12MMA weekly hours for Reno-Sparks are down 0.4 points from June 2017. The most recent weekly hours peak happened in July 2009 at 36.8 hours, while the trough of 32.5 hours happened almost 4 years ago in September 2014.
8
The average price per gallon for regular unleaded gasoline in Reno-Sparks as of July 13, 2018 was $3.38, down $0.04 (-1.7%) from $3.44 the previous month. When compared to the previous year, the price of regular unleaded is up $0.45 (15.4%). Gas prices have been rising steadily and could impact resident and business spending in other areas of the local economy.
According to AAA, “The Energy Information Administration’s (EIA) latest reports detail a drop in consumer gasoline demand and a build in gasoline inventories. In fact, this was the first increase in inventories in six-weeks with a substantial addition of 3 million bbl. With a flat national average, U.S. gasoline supply and demand suggest they are balancing. But that’s not to say that we could not see spikes in demand closer to Labor Day as motorists squeeze in those final road trips. 
Pump prices in states in the West Coast region are among the highest in the country: Hawaii ($3.76), California ($3.61), Washington ($3.39), Alaska ($3.36), Oregon ($3.27), Nevada ($3.19) and Arizona ($2.89). When compared to last week, all pump prices in the region are down. Arizona (-2 cents) saw the largest drop. 
According to EIA’s petroleum status report for the week ending on August 3, inventories of gasoline in the region grew by 200,000 bbl. They now sit at 30.4 million bbl, which is nearly four million bbl higher than total levels at this time last year. Growing supplies will provide a cushion for price fluctuations, which could help pump prices stabilize if there are any shocks to regional supply this week.”
9
Per the World Gold Council, in July, the month-end spot price for an ounce of pure gold fell by almost $4 (0.3%) from June to just over $1,292 on a 12MMA basis. This puts an end to 8 months of consecutive increases, but on a YOY basis, the price of gold is up 3.5%. Despite the small dip, the YOY growth rate has generally trended upward for 2 years and is up for the last 8 months straight.
10
Nevada excise tax revenues generated from marijuana sales through the first 11 months are $62.6 million, with the most recent recorded month, May 2018, seeing a 8.6% increase in revenue from the previous month. May brought in about $7.1 million in combined retail and wholesale taxes, compared to $6.5 million in March. The most readily available report by the Nevada Department of Taxation contains retail and wholesale excise taxes. These taxes do not include sales and use taxes paid at points of sale in the dispensaries, or the annual licensing fees paid by the industry. The wholesale excise tax is collected at a 15% rate from growers to dispensaries on medicinal- and recreational-use marijuana, while the 10% retail excise tax is charged only to recreational users purchasing marijuana at a dispensary.
According to the Department, tax revenue from the sale of marijuana is expected to reach $120 million in the first 2 years. Collections over the first 11 months indicate that the performance may slightly exceed the Department’s forecast.

Updated Reno-Sparks Metrics

Here are the latest updates to the Northern Nevada economic metrics we track, so you don’t have to. As always, feel free to reach out to John Restrepo at jrestrepo@rcg1.com with questions.
r stat highlights

r positive

r emp index
In May 2018 the RCG Employment Index’s 12-month moving average (“12MMA”) for Reno-Sparks ticked up to 99.4. While the Index has been increasing at a slower rate, it continues making progress closer to the all-time high. The Index is up 0.7 points since May 2017. It peaked more than 12 years ago in December 2005 at 99.8 aka 100.0. The trough of 89.6 occurred in January 2010.
r job growth
In May Reno-Sparks job growth, on a 12MMA, dropped 0.2 points from 5.0% to 4.8%. The rate of growth is up 0.2 points up from the 4.6% recorded in May 2017. The lowest rate of growth in the last 10 years happened in December 2009 (-9.3%).The region’s previous record 12MMA high was in August 2016 when jobs grew by 4.9%.
The 12MMA headline unemployment rate held at 4.0% in May. When compared to the May 2017 headline rate of 4.7%, this May’s rate was 0.7 percentage-points lower. In comparison, strong job numbers for the Las Vegas MSA resulted in a 0.1 point decline in the unemployment rate there after 4 consecutive months at 5.2%. Reno has reached rates seen before the Great Recession.
r yoy construction
There were 86,083 construction jobs in Nevada in May 2018. 16,925 (19.7%) of those jobs were in the Reno-Sparks MSA (12MMA). While this is a notable jump of 8.4% from the 15,608 jobs reported in May 2017, over February and March of this year, construction jobs were unchanged, and compared to April, construction jobs actually fell slightly by 17. Reno’s very healthy economy has produced strong residential and commercial real estate demand, but also to shortages of housing units and certain types of commercial space, especially industrial.
The latest stats show that 7.3% of the region’s payroll job-base is in construction. Construction jobs in the Reno-Sparks MSA peaked at 24,042 in August 2006 on a 12MMA basis. Current construction jobs are at 70.4% of the peak. At the time of the peak the industry accounted for 11.1% of all jobs. The large number of jobs in the construction sector was a consequence of the pre Great Recession real estate bubble. The sector bottomed out in February 2012 when there were only 8,792 construction jobs.
r visitor volume
The annualized visitor count for Washoe County increased 0.22% from April 2018’s 5.14 million to 5.15 million in May. With a YOY visitation growth rate of 3.7%, Washoe County continues to outpace growth in Clark County, which had a visitation growth rate in May of -1.8%. See Clark County commentary.
Early in 2016, Washoe had been lagging behind Clark in visitor growth, but the tables have turned with YOY visitor growth rates in Washoe beating those of Clark every month since June 2016 for the reasons previously noted in the Clark County Stat Pack section.
Washoe County has now seen YOY growth in visitor volume every month for more than 3 straight years (since January 2015) at an average rate of 3%. The 12MMA peak occurred in May 2004, when 467,904 visitors came to Washoe. The highest annual growth rate happened in January 2013, when visitor volume grew 5.8%. Despite earlier challenges, the Reno-Sparks hospitality industry has made important gains and continues to grow stronger.
r gross gaming
Washoe County’s 12MMA YOY gross gaming revenue grew by 5.2% in May 2018. This brings total revenue up to $70.5 million, or 79% of the peak (see below). In comparison, Clark County had a YOY growth rate of 2.7% this May. Both counties saw an increase in the gross gaming revenue growth rate. The YOY growth rate for Washoe County has been positive for more than 3 years straight at an average of 3%, corresponding to a similar growth streak in visitor volume.
Gaming revenues peaked nearly 12 years ago in June 2006 at $89.4 million. On an annual growth rate basis, the peak of 5.5% happened 12 years ago in May and June of 2006.
r taxable retail
Washoe County’s economy continues to benefit from rising taxable retail sales. In April 2018, growth was 6.9% YOY, just 0.1 points higher than the year period ending in April 2017. Compared to March 2018, the YOY growth rate is up 1.2 points. Taxable retail sales reached $705 million in April, having already surpassed the previous peak (March 2016) on a nominal basis (not inflation-adjusted). As the chart shows, Washoe’s taxable sales growth is 2.2 points higher than the overall Nevada average.
Success in business attraction and retention, and proximity to the Bay Area and the Pacific Northwest, is driving the region’s economy. It is the primary cause of growth in taxable retail sales, though increasing visitation has also contributed.
r taxable sales
The above chart displays Washoe County taxable sales generated in a selected sample of what we are calling the “better known” (“BK”) activities. We hope this gives our readers an insight into the level of economic activity in familiar industries. Some of these sectors are not necessarily large generators of sales taxes, but we think our readers will find them interesting. What is also interesting are the differences between Washoe and Clark Counties.
In April 2018, Retail made up 64.1% of taxable sales of the BK industries and 61.3% of total sales in all sectors. Compared to April 2017, Retail is up 1.3 points as a share of BK sectors. Accommodation & Food/Beverage was the second largest (15.5% of BK sectors and 14.8% of total sales). Accommodation & Food/Beverage is down 1.3 points from April 2017’s 16.8% of the BK industries. Manufacturing came in at a distant 3rd place with 6.4% of the BK set.
r weekly earnings
The 12MMA of the nominal average weekly wage (not adjusted for inflation) in the Reno-Sparks MSA grew $5 in June 2018 to $813. June was the 12th consecutive month of growth. When considered on a YOY basis the unadjusted weekly wage is up 2.8% from $791 in June 2017.
The inflation-adjusted (real) 12MMA wage for June 2018 of $688 is up $2 from the previous month’s wage. June’s wage is $3 higher than the wage recorded in June 2017. Reno-Sparks workers saw little wage growth over the year, a long-running problem for workers across the US. This has received attention by economists for some time. It is partially a function of the growth of the “gig economy” plus ongoing automation trends.
In June, the region’s average weekly earnings were 2.5% higher than the Las Vegas average of $671. Reno-Sparks’ real wage has fallen considerably from the $730 peak in May 2016, just over 2 years ago.
r weekly hours
In May 2018, the Reno-Sparks MSA’s average weekly hours gained back the 0.1 hours that it had lost in April, resulting in average weekly hours of 35.4. Weekly hours had been trending down and this was the first month that they increased since June 2017. Conversely, weekly hours in Las Vegas have been trending slowly upward, but in May saw a 0.1 hour decrease. On a YOY basis, weekly hours for Reno-Sparks are down -0.3 from May 2017. The most recent weekly hour’s peak happened in July 2009 at 36.8 hours, while the trough of 32.5 hours happened over 3 years ago in September 2014.
r unleaded fuel
The average price per gallon for regular unleaded gasoline in Reno-Sparks as of July 13, 2018 was $3.44, down $0.02 (-0.7%) from $3.46 the previous month. When compared to the previous year the price of regular unleaded is up $0.51 (17.2%). Gas prices have been rising steadily and could impact resident and business spending in other areas of the local economy.
According to AAA, “Total crude oil stocks fell an astonishing 12.7 million bbl last week. The Energy Information Administration (EIA) has not recorded a decline of that size since October 2016. EIA data measures stocks at 405.2 million bbl, which are roughly 90 million bbl lower than they were at this time last year. This puts a continued spotlight on tightening U.S. supplies, which are likely to continue dropping as domestic demand for gasoline holds strong while crude and gasoline exports from the U.S. remain robust. If these trends continue amid high global crude demand, oil prices may continue riding high and contribute to increased pump prices throughout the summer and possibly into the fall. 
Pump prices in the West Coast region are among the most expensive in the country: Hawaii ($3.73), California ($3.66), Washington ($3.44), Alaska ($3.40), Oregon (3.32), Nevada ($3.24) and Arizona ($3.00). Most prices in the region have declined on the week, with Arizona (-2 cents) leading the group. 
Inventories of gasoline in the region fell for a third consecutive week, according to the Energy Information Administration’s (EIA) petroleum status report for the week ending on June 29. Dropping by nearly 150,000 bbl, total inventories now sit at 30.5 million bbl. However, inventories are approximately 2.2 million bbl higher than they were at this point last summer, which will likely help prices stabilize if there are any major supply disruptions in the region this week.”
r gold
Per the World Gold Council, in June, the month-end spot price of gold (ounce of pure gold) increased by less than $1 (0.05%) to just over $1,296 on a 12MMA basis. On a monthly basis, gold prices have increased for 8 months straight. On a YOY basis, the price of gold is up 3.3%. Despite last month’s small dip, the YOY growth rate has been trending up for 6 months straight. Prices have been increasing on a YOY basis for the past 23 months.
r pot
Nevada excise tax revenues generated from marijuana sales through the first 9 months are $55.5 million, with the most recent recorded month, April 2018, seeing a -7.69% decline in revenue from the previous month. April brought in about $6.6 million in combined retail and wholesale taxes, compared to $7.1 million in March. The most readily available report by the Nevada Department of Taxation contains retail and wholesale excise taxes. These taxes do not include sales and use taxes paid at point of sales at the dispensaries or the annual licensing fees paid by the industry. The wholesale excise tax is collected at a 15% rate from growers to dispensaries on medicinal- and recreational-use marijuana, while the 10% retail excise tax is charged to only recreational users purchasing marijuana at a dispensary.
According to the Department, tax revenue from the sale of marijuana is expected to reach $120 million in the first 2 years. Collections over the first 10 months indicate that the Department’s forecast is right on track.