Senate Bill 432 Statement from the County

FOR IMMEDIATE RELEASE

March 28, 2023

Senate Bill 432 was introduced the evening of March 27, 2023. If passed, SB 432 will divert certain Storey County property and sales taxes from Tesla, Panasonic, Redwood, and potentially Switch, Google, and other companies to its surrounding counties and to the State when tax abatements expire.

Diverted funds may be distributed as follows: 60% to neighboring counties; 20% to a statewide economic development account; and 20% to Storey County.

The bill will establish a Joint Powers Authority composed of 2 members from Storey County and 5 members from one or more abutting counties.

The Joint Powers Authority will decide how 60% of Storey County’s post-abated taxes are redistributed to its abutting counties to offset housing, water, power, and other perceived adverse “impacts.”

However, Storey County has demonstrated abundant data showing that its economic activity is fiscally benefiting neighboring jurisdictions.

Gigafactory-related economic activity, payroll spending, increased property valuation, and commercial and residential development generated over $117 million in tax revenue to Washoe County, Reno, Sparks, Nevada, and the State Department of Education since 2015. Additionally, single- and multi-family homes are generating net positive revenues to these local jurisdictions after public services are provided.

Some have opined that Storey County will be “rich” and that it has no valid use for the estimated $15-18 million annual revenues from the Gigafactory. However, in addition to operating costs, the county’s current and future debt and fiscal obligations exceed $140 million, and its five-year capital improvement plan shows $142 million in critical infrastructure (roads, water, and buildings) addressing a century of deferred maintenance during its hard times.

Planned capital expenditures include, but are not limited to:

• $210 million – Water transmission and distribution improvements within Storey County
• $40 million – Road and drainage improvements
• $44 million – Fire and law enforcement station upgrades
• $20 million – Flood mitigation in Lockwood and Mark Twain

Storey County is working around-the-clock on this matter. The county will facilitate public workshops and other opportunities for engagement with its residents and businesses.

A resource page containing links, economic reports, and other resources is available here.

Sincerely,

Austin Osborne, Storey County Manager