In fiscal year 2006, more than $1.3 billion in-state gaming taxes and fees, including the gross proceeds tax, entertainment tax, quarterly slot tax, quarterly games tax, annual slot tax and annual games tax were paid, totaling nearly 48 percent of Nevada's General Fund Tax Revenue collected.

This tax payment by tourism and gaming allows Nevada residents and businesses to enjoy the 4th lowest tax burden in the nation, according to a study by the government of the District of Columbia.

Source: Tax Foundation

The gaming licensee pays all gaming taxes, other than the entertainment tax. The bulk of taxes are assessed on gross revenues without any deductions - regardless of profitability, and regardless of an ability to pay - with no ability to raise the price of a "bet." It is worth noting that the leisure and hospitality industry generates $7,050 in major tax payments per employee - 40 percent more than the overall average of $5,030 by all industries in Nevada. Stated otherwise, the gaming industry provides a large tax subsidy for other businesses and industries, which bear a significantly lower tax burden.

Source: Applied Analysis

Unlike other states such as California, Nevada does not have a corporate or personal income tax. Because of the gaming industry in Nevada, many of the additional taxes imposed on individuals and businesses in other states are not imposed in Nevada. Some of these taxes include:

• Personal income tax
• Corporate income tax
• Sales tax on food
• Admissions tax
• Bank excise measured by income
• Bank share tax
• Special intangible tax
• Franchise tax on income
• Inventory tax

On average, the other 49 states are more like California, which finance 40 percent of state expenditures through state income taxes. Indeed, every other state with legalized gaming has a state personal or business income tax - or both, which far surpass gaming taxes.

Nevada's tax structure continues to be one of the least burdensome on the average citizen in the nation for the following reasons:

• Residents pay very low per capita taxes. The comparative tax burden for a family of three with an income of $75,000 ranks Las Vegas as 48th out of 51 metropolitan areas in the United States.
• Property taxes here are far lower than most states. Las Vegas' property tax is ranked 45th out of 51 metropolitan areas, based on a family of three with an income of $50,000.
• Tourists pay a significant portion of the sales tax. It is estimated that 35 percent of the sales tax is paid by the gaming industry, its employees, and tourists, thereby reducing the tax burden of the average Nevada resident.

Source: Applied Analysis

Because of Nevada's success as a leading tourism and gaming destination, individuals and other businesses share little of the state's tax burden. They pay no personal income tax and no corporate income tax - the two taxes that are other states' principal sources of tax revenue.

And it doesn't stop with gaming taxes...

Few Nevadans completely understand how significantly gaming contributes to state and local governments through sales taxes, property taxes and business activity taxes as well. For example, of the ten largest taxable property owners in each Clark and Washoe Counties, six are gaming companies or related enterprises that contributed more than $7.8 billion in assessed valuation in 2006.