Lyon County events counting on Room Tax dollars to help boost advertizing efforts could find themselves short-funded if Fernley is able to follow through with plans to retain City generated room tax funds for its own use.

According to County Comptroller Josh Foli, Fernley officials are considering the possibility of doing so; however, he is unsure if NRS guidelines will allow this to happen.  He is researching this issue with State officials.

Foli said that during the past fiscal year the County collected approximately $175,000 in room tax funds, with approximately $120,000 of that coming from within the Fernley City limits.

Each County is allowed to set its own room tax rates.  Lyon County’s rate is currently at 6-percent.  The first 1-percent is a mandatory levy – with 3/8-percent of this going to the State and 5/8-percent going to the County.  This must be spent on advertizing.

It is not specified in NRS how the revenue over and above the first 1-percent is to be spent. That decision is left to the individual counties.

Lyon County Code mandates all remaining revenue collected from taxes on room rentals must go toward the funding of advertizing of Lyon County events.  During the past Lyon County grant cycle, approximately $250,000 was awarded to various entities throughout the County – on a population pro-rata basis.  The amounts of the grants during any particular cycle are based on cash on hand.