Car dealerships in Washoe County have to be more competitive when dealers in neighboring counties boast a lower sales tax, but they could be seeing some new legislation to level the playing field as they prepare for the WC-1 sales tax increase to go into effect.
"We'll make sure they will get the same deals here as they would get anywhere else or even better,” said Ryan Dolan, CEO Dolan Automotive Group.
Dolan Auto Group in Reno knows they will have to become even more competitive to keep buyers in Reno from going to neighboring counties when the sales tax in Washoe County becomes the highest in the state sometime next year.
As it is now, in Carson City, a $30,000 car will have $2,280 dollars in taxes. In Washoe, that same car will have $2,317.50 in taxes. When the increase kicks into high gear, that tax will be $2,480 in Washoe County.
Washoe County car dealerships may be getting some help from The Chamber of Reno-Sparks, Northern Nevada. They are looking into legislation that would level the playing field.
"It doesn't matter where I buy it, I could drive to Carson City, I could drive to Las Vegas, but I am going to pay the Washoe County sales tax rate because I am going to register that car in Washoe County,” explained Trey Abney, Director of Government Relations for The Chamber. They want to help with the disadvantage a tax increase makes for dealers of big ticket items.
Being one of WC-1's biggest supporters, The Chamber is exploring ways other states, including Kansas, tax cars on where it will be garaged rather than where it is purchased. This legislation is in the very early stages of conversation and there is not a known timeline of when it could be written.
"Is there a way to make sure that Washoe County gets that revenue and Washoe County car dealers are made whole,” said Abney.
This is all an effort to keep tax money where it was intended to go, something Dolan agrees with.
"We just want to make sure those taxes go to their schools, their roads, and their children."
The Washoe County Commissioners have begun the process of increasing the sales tax which will help pay for repairs and construction within the Washoe County School District and say it will be implemented sometime after April 2017.
