The Nevada Independent

Your state. Your news. Your voice.

The Nevada Independent

OPINION: Nevada's hidden prison tax: Why it's time for lawmakers to step in

Nick Shepack
Nick Shepack
Opinion
SHARE

It's a largely unspoken reality: People have to pay to be imprisoned. In Nevada, a very expensive place to be imprisoned, most of the financial burden falls not on the incarcerated individuals, but on their families and loved ones. A web of fees and hidden charges — from commissary markups as much as 35 percent to medical fees incarcerated individuals have no ability to pay — has been designed to extract money from our most vulnerable populations. 

Over the past four years, the Nevada Department of Corrections (NDOC) has housed between 10,000 and 12,000 individuals at any given time. During this time, tens of millions of dollars have been drained from local communities into the prison system. Those bearing the burden are disproportionately lower income families, women and especially women of color

There’s no question how we got here. For decades, the Nevada Legislature has shifted the responsibility of paying for the prison system away from the state and onto the Department of Corrections. The problem is that prisons aren't set up to generate revenue. As a result, the department was forced to find ways to raise funds and the only option was to target those in their custody — or more accurately, their families. These mandates, along with lack of regulation and an influx of private companies eager to profit off captive consumers, has created devastating financial realities for thousands of families.

Fortunately, Nevada legislators have started to course correct. Bipartisan reforms passed during the 2023 legislative session, along with recently implemented regulations to more equitably fund the system, are already resulting in significant savings and increased access to health care and necessary items for incarcerated individuals. 

This upcoming session, the Nevada Legislature has yet another opportunity to right this historical wrong. The Interim Judiciary Committee voted to move forward with SB88, which would end medical debt upon release from NDOC. While most people believe that the completion of a prison sentence marks the end of a person's punishment, the reality is thousands of people are released with excessive debt — ranging from thousands of dollars to more than $100,000 in one case. The majority of this debt stems from medical costs, often resulting from injuries or self-harm during incarceration. 

The Fines and Fees Justice Center (FFJC) recently received a letter sent by NDOC to a man, who had just been released after nearly 15 years of incarceration, in order to attempt to collect medical debt. The letter stated that he owes $7,216.76 and that the debt was due within 30 days. Failure to pay this debt within the allotted time will result in NDOC using “any legal means” to collect it, including referring the debt to a collection agency, with all additional expenses such as interest and legal fees added to the total amount due. 

To put this into perspective, to pay off $7,200 in 30 days, a person in Nevada would have to make a salary of $115,000 a year without spending a dime on rent, food, gas or any other living expenses. This is an impossible expectation for someone recently released from prison.

Most who are released from prison end up working minimum or low-wage jobs, if they can find employment at all. After 15 years of incarceration, they are extremely unlikely to have any savings. This is a truly impossible request and most people receiving these letters are left with three options: Take out predatory short-term loans, ignore the bill and let it balloon, which ensures they are never able to build credit or commit illegal acts to make quick money. Debt upon release not only undermines individuals’ chances at successful reentry — it directly contradicts efforts to reduce recidivism and enhance public safety.

Annual collection rates on this debt are consistently miniscule, meaning it offers little actual financial benefit to NDOC or the state.  In 2024 while NDOC assessed just over $2 million in debt, it only collected a little more than $6,000, a collection rate of 0.003 percent. However, the harm it causes is significant. People who have served their time are burdened by overwhelming debt, sent to collections and left with destroyed or nonexistent credit. This makes it nearly impossible for them to secure housing, transportation or avoid falling into predatory financial schemes.

Reforms aimed at reducing the financial burden of those released from incarceration are gaining momentum across the country. Recently, Oklahoma’s Republican Gov. Kevin Stitt prioritized fines and fees reform in his address to the legislature, pledging to end this modern day debtors' prison. To emphasize his point, Stitt invited a man to his State of the State address who had spent 15 years in prison, was now dedicated to helping others, but still faced over $30,000 in incarceration-related fees. Stitt understands that burying people in fine and fee debt post incarceration is antithetical to successful reentry.  

Ensuring that formerly incarcerated individuals have the best chance at successful reentry should transcend political lines. These types of reforms help to strengthen communities, increase public safety and save the government money in the long run. 

In Nevada, the fines and fees system continues to undermine justice, disproportionately impacting those who can least afford it. However, this legislative session presents a critical opportunity for change. Ending debt upon release would not only relieve those who have served their time, but also strengthen our broader community.

Nick Shepack is the Nevada state director for the Fines and Fees Justice Center. Formerly with the American Civil Liberties Union of Nevada, he led successful efforts on prison reform, including improving solitary confinement conditions and decriminalizing traffic tickets. He is a Northern Nevada native and has a master’s degree in social work.

The Nevada Independent welcomes informed, cogent rebuttals to opinion pieces such as this. Send them to [email protected].

SHARE
7455 Arroyo Crossing Pkwy Suite 220 Las Vegas, NV 89113
© 2025 THE NEVADA INDEPENDENT
Privacy PolicyRSSContactNewslettersSupport our Work
The Nevada Independent is a project of: Nevada News Bureau, Inc. | Federal Tax ID 27-3192716