During a Wednesday, Aug. 27, meeting, the Clark County Council signed off on support for enacting a 0.1% local sales tax, authorized under state law.
The revenue source, a councilmatic sales tax increase approved through House Bill 1590, signed by the governor in 2020, would add just one cent to every $10 spent in Clark County. Over time, the levy could generate approximately $7 million annually for construction, property acquisition, and maintenance of affordable housing. The funds could also be used to support behavioral health facilities for vulnerable populations.
“This is arguably the most important subject we have to work on right now,” Councilor Glen Yung said during Tuesday’s work session. “The consequences of not having enough attainable housing are dire, and they’re expensive.”
Community Planning Manager Jordan Boege opened the session with a presentation on the “housing continuum,” from emergency shelter to permanent supportive housing to affordable rental and ownership opportunities. He noted that financing remains one of the biggest challenges, as traditional funding sources are often inadequate for local needs.
Councilors reviewed a broad set of tools the county could employ, including:
Other ideas included using real estate excise tax (REET) revenues more flexibly, exploring contingent loan agreements with developers, and updating zoning codes to reduce barriers to construction.
Councilor Wil Fuentes added sobering numbers to the conversation: according to Zillow, the average home price in Clark County is now around $585,000, a 7% annual increase, putting ownership out of reach for many middle-income families. Renters are also squeezed, with one-bedroom apartments averaging about $2,000 per month. Meanwhile, state projections estimate the county will need over 35,000 additional affordable housing units by 2045.
“Just to add a couple more things to that sense of urgency, is that Clark County has the highest eviction rate in the state, and we have a growing homeless population,” County Chair Sue Marshall added.
According to the Council for the Homeless, roughly 5,100 people became homeless in Clark County last year, and 8,894 people experienced homelessness at some point last year, a 2% increase from 2023.
Councilors expressed interest in adopting the 1590 sales tax “councilmanically,” meaning by council vote rather than a ballot measure, so funds could begin flowing sooner. Several noted that while the tax is small, it would give the county leverage to attract state and federal dollars and support projects in cities that are not levying their own housing tax.
At the same time, members acknowledged the complexity of deciding how to invest the new funds. They discussed hiring a consultant or creating a dedicated staff position to design a work plan, set measurable goals, and track results.
“We need to have outside help to direct the use of these funds so that they’re used the most efficiently,” Councilor Yung said.
