Fact Pack! Water Fight
By Hightower Las Vegas and RCG Economics on September 1, 2026
Last Monday, on August 24, as many Fact Pack readers likely know by now, Nevada filed a federal lawsuit against the U.S. Department of the Interior and the Bureau of Reclamation in response to new federal rules that will effectively cut Nevada’s water allotment by 71 percent over the next two years.
Source: Deputy Editor Emily Gardner @ Maven’s Notebook As of 8/27/26
Nevada state officials and water negotiators argue in the suit that the federal framework ignored the required economic impact analysis for Southern Nevada. Gov. Joe Lombardo called the issue “a matter of survival” for Las Vegas and the state’s economic engine.
The Arizona Department of Water Resources (ADWR) has also called parts of the proposal “unacceptable.” The new federal framework calls for 1.25 million acre-feet of water cuts across the three Lower Basin states:
- 760,000 acre-feet for Arizona
- 440,000 acre-feet for California
- 50,000 acre-feet for Nevada.
(One acre-foot is equivalent to 325,851 gallons.)
Basin map and current allocations:
Graphic source: Public Policy Institute of California; Data as of March 2025 updates to Colorado River Compact
Data Center Fight
Since the Nevada Legislature passed a 2015 bill creating property and sales tax breaks for data centers, the state has issued incentives to 14. This Data Center Map shows current and planned locations totaling 76 facilities as of Monday, Aug. 31.
A public opinion war on data centers and resource use is playing out across the state, and several jurisdictions have paused or banned data center construction. This map from The Nevada Independentshows the data center state of affairs (click for the interactive scroll over version):
Source: The Nevada Independent As of 8/31/26
National Outlook
Data released earlier this week showed Q2 GDP rose by 1.5 percent Q2, meeting expectations in most surveys.
The University of Michigan consumer sentiment index was revised upward last Friday to 51.7 for August from 51.0 in the preliminary estimate, and still below July’s mark of 55.2.
Inflation expectations trend line:
Cost to Start an LLC
According to a methodology that includes the initial filing fee and any annualized renewal fee, Nevada is the 3rd most expensive state in which to start a Limited Liability Corporation (its initial filing fee is $425 with a renewal fee of $350 for a year one total of $775, according to the methodology employed in the infomap below):
As of June 2026
All states require an initial filing fee. States differ in their requirements for recurring fees, which may include annual or biennial reports, franchise taxes, or other mandatory filings. California, for example, levies an $800 annual franchise tax.
Eleven states have no recurring filing fee or tax: Alabama, Arizona, Idaho, Minnesota, Mississippi, Missouri, Montana, New Mexico, Ohio, South Carolina, and Texas.
Reminder for why so many companies incorporate in Nevada:
- Nevada levies no personal income tax, no corporate income tax, and no franchise tax. There is no tax on corporate shares, capital gains, or business inventory at the state level. The Nevada Commerce Tax applies only to businesses generating more than $4 million in Nevada-source gross revenue per fiscal year.
- Nevada statutes and courts do not hold owners personally liable for company debts absent direct proof of fraud or intentional misconduct; failing to adhere to minor corporate formalities does not void the liability protection. If a member faces personal litigation, the creditor’s sole legal remedy against the LLC interest is a charging order (a lien against distributions).
- Nevada does not require passive LLC members (non-managing owners) to be listed on public records—only managers or managing members appear on the filed list.
A New Thing in Food Service
Boston’s Logan International Airport, Caesars, and corporate campuses for Disney and Tesla, have a nifty new thing: small robotic kiosks that offer hot food 24/7.
Measuring just 10 square feet and needing only an electrical outlet to operate — other than the restocking of ingredients when supplies run low — name brands that are selling food through Just Baked Smart Bistro kiosks include Hot Pockets and White Castle.
Kiosk image and graphic source: Automated Retail Technologies
Reno RV Maker Tops NV Growth Rankings
Off-grid/off-road RV maker AEONrv has been named the No. 1 fastest-growing private company in Nevada on the 2026 Inc. 5000 list. The firm saw a 4,231 percent increase in revenue from 2022 to 2025. The Reno-based manufacturer ranked 66th nationally—in the top 1.3 percent.
Export Partners by State
Just 13 U.S. states have a top export partner that is not Canada or Mexico.
- Notably, New York sends 34.7 percent of its exports to Switzerland.
- Gold — Bullion moves through New York’s COMEX (commodity exchange) to Switzerland’s world-class refineries to be melted or recast into standardized formats.
- Jewelry & Diamonds —Polished diamonds and precious jewelry constitute a large chunk of secondary luxury exports.
- Paintings & Fine Art — Collectors’ items routinely cross from New York’s prominent auction houses and galleries to Swiss buyers.
- Utah sends 48.1 percent of its exports to the United Kingdom. Like New York and Switzerland, Utah’s trade relationship with the UK is dominated by unwrought gold and precious metals
- China is the top export destination for Oregon and Washington.
- Germany ranks first for New Hampshire and South Carolina.
- Alaska’s top partner is South Korea; Hawaii’s is Australia.
- Florida —> Brazil
- Indiana —> Italy
Nevada is among the states with a relatively small share of its exported goods going to its top trading partner:
Source: Visual Capitalist As of 2026
Canadian Exports
Canada-U.S. trade negotiations broke down in August with 50 percent tariffs in effect on a slate of Canadian goods valued at roughly $28 billion Canadian dollars ($20 billion U.S.) annually, according to BMO senior economist Robert Kavcic. BMO estimates U.S. tariffs could cut half a percentage point from Canada’s annual GDP growth.
Total export value to the U.S. is estimated at $214.8 billion U.S.
Data source: Statistics Canada / Canadian government As of 8/26/26
Canada is the largest export partner of 25 U.S. states, so trade exposure cuts both ways. However, with more than two-thirds of Canadian exports destined for the U.S., Canada has considerably more at stake in any disruption to cross-border trade.
U.S. IOUs
Foreign holdings of U.S. Treasury securities stood at $9.29 trillion as of June 2026, with Japan, the UK, and China remaining the largest holders. Total foreign holdings of U.S. Treasuries increased 2.3 percent year over year.
Data source: Dept. of Treasury As of June 2026
- Japan topped the list despite a 3.3 percent year-over-year decline.
- The UK followed closely with $939.9 billion, after increasing its holdings by 9.8 percent annually.
- China held $633.4 billion in U.S. Treasuries, despite a 13.4 percent annual decline. (Note: Some Chinese holdings may be veiled through financial centers, such as the UK, Belgium, Luxembourg, and the Cayman Islands.)
- Belgium and the Cayman Islands ranked fourth and sixth, with holdings of $482.5 billion and $453.1 billion, respectively. Their positions highlight the above-noted role of financial and custodial centers in Treasury ownership data.
- The UAE recorded the largest annual increase among the 20 holders shown, with Treasury holdings rising 19 percent. Its holdings stood at $114.8 billion in June 2026.
Purchasing Power
Inflation’s effect on the U.S. Dollar around the world since 2019 (note that it has fared far better in more than 20 countries than it has here at home, where it has seen a 23 percent decline in value):
More Seniors Ahead
The share of the world population age 65 and older is projected to nearly double from 10.5 percent to 19.6 percent between 2025 and 2060, while the age 0 to 19 population will essentially remain flat, according to a new report from the U.S. Census Bureau.
Between 2020 and 2025, the proportion of the population age 65 and older exceeded the population age 5 and younger for the first time in recorded history.
Regional distribution data and projections show that in Africa and Asia, the global share of residents age 65 and older will grow from 7 percent to 11 percent and from 57 percent to 62 percent, respectively, while all other regions will see a decrease.
In 2025, the U.S. ranked the 48th oldest country out of 227, with 18.9 percent of its population age 65 or older. By 2060, older adults are projected to make up 23.4 percent of the U.S. population.
Regional population stats:
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Fact Pack will be dark next week for the Labor Day holiday.
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