Experts: Beer, cigarette use drops | NevadaAppeal.com

Experts: Beer, cigarette use drops

(AP) – The use of beer and cigarettes among Nevadans and tourists is declining in the state, but the use of cigars, smokeless tobacco, wine and hard liquor is increasing.

Those findings were made by financial experts charged with predicting the state’s tax collections in the upcoming two fiscal years, the Las Vegas Sun reported.

The Technical Advisory Committee is predicting liquor tax proceeds will increase by 1.1 percent next fiscal year and 1.2 percent in the 2013 fiscal year.

Russell Guindon, senior deputy fiscal analyst for the Legislature, said there has been a “drastic decline” in the number of gallons of beer sold in Nevada, but there has been a steady growth in tax collections from hard liquor, wine and cordials.

He said he doesn’t know the reasons behind the change, but the committee is basing its revenue estimates on the trend.

Experts predict the tax collection from cigarettes will drop 2 percent next fiscal year and 1.8 percent in fiscal 2013.

But the sale of cigars and smokeless tobacco is expected to climb 0.9 percent next year and 2.2 percent the following year. People appear to be smoking more cigars and using more smokeless tobacco, Guindon said.

The committee also expects revenue from marriage licenses to drop 2.7 percent in each of the coming two fiscal years.

The Economic Forum meets next month to predict how much the state will receive from major revenue sources such as sales and gambling taxes.