Buying an average-priced new car in Carson City will cost you about $40 more beginning today because of a higher sales tax.
That’s because of a local boost by one-eighth of a penny on each dollar consumers spend, up from 7.45 percent to 7.6 percent. The average transaction price for a 2014 vehicle, as figured by Kelley Blue Book for August, was $32,495.
The tax boost adopted earlier by the Board of Supervisors is to help city capital improvement projects by underpinning bonded indebtedness. Initially, city government will issue $13.6 million in bonds backed by the enhanced sales tax stream.
“It’s roughly a million a year,” Finance Director Nick Providenti said of overall increased revenue city government should realize by Oct. 1, 2015.
He said on consumer purchases, the take is $12.50 per $10,000 in purchases, which accounts for the amount of increased tax on an average new car.
Providenti said the eighth of a penny, which also is .125 cents, is the same as the V&T Railway amount locally. Other local amounts include: a quarter of a penny, or .25 percent, for streets and the same for the county option tax; 2.25 percent for city government’s general fund, and 2.6 percent for schools. The finance director said the state part of the tax is 2 percent.
The eighth of a penny taking effect today is to finance business corridor improvement projects on Carson and William streets, including downtown, a new multi-purpose athletic center with gymnasiums and a second-level walking track, a new animal shelter, and upgrades to the city’s Community Center for cultural productions.