Nevada Taxable Sales Records and Jobs Reports for Restaurants and Bars Since the Implementation of the Nevada Clean Indoor Air Act  Restaurant & Bars Statewide Compared to General Economy  Restaurant & Bars in Clark, Washoe Counties Compared to Statewide For more information, please contact: Tom McCoy, Nevada Government Relations Director American Cancer Society Cancer Action Network / cell: Re: AB 571 Date: May 27, 2011

Taxable Sales, FY2007 – Present Annual Sales and Jobs Reports: Restaurants and Bars in Nevada Now Outperforming the Overall Economy SUMMARY OF FINDINGS  Similar to trends in other business sectors, Nevada food services and drinking places (Dept of Taxation category 722: statewide, in the aggregate) were experiencing consistent monthly sales declines prior to going smoke-free when the Nevada Clean Indoor Air Act took effect in Dec  Food services and drinking places statewide seem to be stabilizing more quickly than many other business sectors. Food services and drinking places experienced less severe sales declines than those sales declines witnessed in the overall Nevada economy (across all business sectors) during the period FY2009 and FY2010.  Food services and drinking places in Clark County and Washoe County both reflect these specific trends: they experienced sales declines consistent with the prevailing overall economic trends in Nevada in FY2007 and FY2008, but their annual sales are now outperforming the general economy in FY2009 and FY2010.  Taxable sales for food services and drinking places are now experiencing increases in FY11 with Nevada Clean Indoor Air Act standards still in effect.  A large number of jobs were added in food services and drinking places during the year that followed the effective date of the Nevada Clean Indoor Air Act. Only after more widespread economic declines occurred across other business sectors did food services and drinking places begin to shed jobs.  Food services and drinking places are now adding jobs and FY10 jobs numbers in this sector are reflective of employment opportunities being on the increase.

Taxable Sales, FY2007 through FY2010 After Widespread Economic Downturn, Restaurants and Bars in Nevada Outperform the Overall Nevada Economy in FY09 and FY10 Data Source: Nevada Department of Taxation Combined Sales & Use Statistical Report FY 2007FY 2008FY 2009FY 2010* All Business Sectors - Statewide $49,427,707,106$48,196,848,945$42,086,614,338$37,772,066,777 Food Services & Drinking Places - Statewide $7,542,940,258$7,209,818,437$6,536,724,171$6,369,756,316 Food Services & Drinking Places - Clark County $6,253,428,272$6,018,913,343$5,454,575,196$5,345,052,369 Food Services & Drinking Places - Washoe County $820,677,538$737,184,755$656,049,410$629,270,699 * Most recent full fiscal year available

Nevada Taxable Sales, FY2007 through FY2010 Data Source: Nevada Department of Taxation, Combined Sales & Use Statistical Report Nevada Clean Indoor Air Act eliminated indoor smoking in restaurants and bars that serve food mid- way through FY2007 (Dec. 08, 2006)

Local Detail: Clark County and Washoe County Restaurants and Bars Taxable Sales, FY2007 through FY2010 Data Source: Nevada Department of Taxation, Combined Sales & Use Statistical Report

Monthly Detail: Taxable Sales Before and After NCIAA Effective Date Food Services and Drinking Places (Statewide) CY2006 Food Services & Drinking Places - Statewide CY2007 Food Services & Drinking Places - Statewide January $696,600,393$595,266,574 February $689,791,748$596,438,600 March $782,486,604$704,330,363 April $745,133,981$638,086,968 May $740,177,491$669,968,674 June $679,001,444$662,187,311 July $609,289,500$567,010,047 August $613,042,078$604,658,197 September $621,775,014$622,094,787 October $622,686,215$665,213,601 November $595,361,508$576,629,738 December $595,861,545$578,664,228 Data Source: Nevada Department of Taxation, Combined Sales & Use Statistical Report Nevada Clean Indoor Air Act takes effect

Monthly Detail: Taxable Sales Before and After NCIAA Effective Date Food Services and Drinking Places (Statewide) Data Source: Nevada Department of Taxation, Combined Sales & Use Statistical Report Nevada Clean Indoor Air Act eliminated indoor smoking in restaurants and bars that serve food mid-way through FY2007 (Dec. 08, 2006) Twelve-month period before NCIAA took effect; taxable sales losing ground Twelve-month period after NCIAA took effect; taxable sales show no immediate increased negative trend

Data Source: Nevada Department of Taxation Combined Sales & Use Statistical Report Linear Trendline Comparison: Taxable Sales Before (CY06) & After (CY07) the NCIAA Effective Date Food Services and Drinking Places (Statewide) CY 2006 CY 2007 Nevada Clean Indoor Air Act takes effect

Data Source: Nevada Department of Taxation, Combined Sales & Use Statistical Report CY 2005CY 2006% Change July$700,944,190$609,289, % Aug$680,026,570$613,042, % Sept$682,583,500$621,775, % Oct$698,501,653$622,686, % Nov$652,748,053$595,361, % Nevada Clean Indoor Air Act took effect Dec. 08, 2006 In the five months before the Nevada Clean Indoor Air Act took effect, restaurants and bars were consistently sustaining significant declines in taxable sales over the same time periods in the previous year. Monthly Detail: Taxable Sales Declines Leading Up To NCIAA Effective Date Food Services and Drinking Places (Statewide)

Taxable Sales, FY11 The Situation Now: Nevada Department of Taxation Reports Large Increases in Restaurant and Bar Sales (With No Changes to Nevada Clean Indoor Air Act) Source: PRESS RELEASE TAXATION REVENUE STATISTICS Taxable Sales Summary – March 2011 Statewide taxable sales for March 2011 of $3,648,542,204 represents a 9.6% increase over March 2010 and a 5.6% increase for the nine months of fiscal year The largest increases in statewide taxable sales were realized by Food Services and Drinking Places, up 8.0%; Motor Vehicle and Parts Dealers, up 15.0%; Accommodation, up 28.1%; Wholesale Electronic Markets and Agents and Broker, up 381.3%; and Clothing and Clothing Accessories Stores, up 9.4%.

Data Source: Nevada Workforce searchable database; Nevada Dept of Employment, Training, and Rehabilitation Nevada Clean Indoor Air Act eliminated indoor smoking in restaurants and bars that serve food mid-way through FY2007 (Dec. 08, 2006) Annual Jobs Report: Employment Before and After NCIAA Effective Date Food Services and Drinking Places (Statewide) Number of Jobs Reported, Annual Data, FY2006 – Present Taxable sales figures show severe statewide economic decline occurred broadly across various business sectors in FY08, FY09, FY10

FY2006FY2007FY2008FY2009FY2010FY2011 March89,80094,10098,40091,10092,20095,600 June92,80096,700100,00093,20094,900 September92,70096,10097,60092,10094,600 December93,30096,70093,80090,90093,900 Annual91,30095,40097,60091,80093,700 Quarterly Detail: Employment Before and After NCIAA Effective Date Food Services and Drinking Places (Statewide) Number of Jobs Reported Quarterly Interval and Annual Data, FY2006 – Present Data Source: Nevada Workforce searchable database; Nevada Dept of Employment, Training, and Rehabilitation

Quarterly Detail: Employment Before and After NCIAA Effective Date Food Services and Drinking Places (Statewide) Nevada Clean Indoor Air Act eliminated indoor smoking in restaurants and bars that serve food mid-way through FY2007 (Dec. 08, 2006) Twelve-month period before NCIAA took effect; jobs being added Twelve-month period after NCIAA took effect; jobs still being added without any decreases attributable to the NCIAA Taxable sales figures show severe statewide economic decline occurred broadly across various business sectors in FY08, FY09, FY10 Number of Jobs Reported, Quarterly Interval Data, FY2006 – Present Data Source: Nevada Workforce searchable database; Nevada Dept of Employment, Training, and Rehabilitation

Taxable Sales, FY2007 – Present Annual Sales: Restaurants and Bars in Nevada Now Outperforming the Overall Nevada Economy CONCLUSIONS  Indoor nonsmoking policies do not serve as a predictor of aggregated taxable sales trends or employment trends in Nevada eating and drinking places.  More general trends seen across all business sectors of the Nevada economy appear to run parallel to taxable sales trends seen specifically in eating and drinking places.  Recent increases in taxable sales receipts and employment numbers for eating and drinking places in FY11 are one component of an improving economic climate seen in many other business sectors in Nevada.  Lawmakers should not attribute economic declines in Nevada to nonsmoking policies that have not negatively impacted actual sales or jobs figures for eating and drinking places in any measurable way.