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It is GREAT to live in Nevada...

During fiscal year 2012, more than $2.0 billion in taxes and fees were paid by Nevada hotel-casino operators. This included major contributions to Nevada's three largest sources of revenue: sales tax, property tax and gaming tax. Nevada hotel casinos account for more than $1.4 billion, or approximately 46 percent of state General Fund tax revenues – more than any other industry.

NV Hotel-Casino Industry's Contribution
to State General Fund Revenues - FY 2012

General Fund Revenue Source* Total Collections Hotel-Casino
Industry
Contributions
Hotel-Casino
Industry as a
Percent of Total
Taxes and Selected Industry Fees and Charges      
Branch Bank Excise Tax $3,047,528 $0 0.0%
Business License Fee $64,790,426 $5,767,830 8.9%
Business License Tax (Phased Out) $597 $0 0.0%
Cigarette Tax $82,974,853 $15,031,314 18.1%
Gaming Taxes $686,450,412 $686,450,412 100.0%
Governmental Services Tax $62,358,153 $29,557,765 47.4%
HECC Transfer (Higher Education Capital Fund) $5,000,000 $5,000,000 100.0%
Insurance Taxes $237,858,943 $24,810,660 10.4%
Liquor Tax $40,649,951 $15,262,951 37.5%
Live Entertainment Tax $136,982,047 $125,337,855 90.4%
Mining Taxes and Fees $120,425,485 $0 0.0%
Modified Business Tax (MBT) – Financial $20,717,296 $0 0.0%
Modified Business Tax (MBT) - Nonfinancial [1] $348,943,337 $78,502,830 22.5%
Other Tobacco Tax $8,274,310 $1,498,933 18.1%
Real Property Transfer Tax [2] $48,373,678 $0 0.0%
Sales and Use Tax $875,596,070 $274,324,249 31.3%
Total Tax Revenue $2,742,443,087 $1,261,544,800 46.0%
Other Revenue $339,325,087 $33,723,353 9.9%
Total $3,081,768,174 $1,295,268,152 42.0%

*Note: Reflects collections within the Nevada general fund and excludes taxes, fees and other charges that inure to the benefit of other state and local municipalities [1] The modified business tax is a tax on gross payroll, less a deduction for employer-provided health care coverage. Because the hotel-casino industry provides such a significant share of these benefits to its employees, the industry’s share of modified business tax collections is lower than its share of employees; [2] Assumed to be zero due to a lack of available data; Sources: Economic Forum; LVCVA; Nevada Gaming Control Board, Quarterly Statistical Report; Department of Taxation and Applied Analysis

This tax payment by the tourism and gaming industry allows Nevada residents and businesses to enjoy among the lowest tax burdens in the nation, according to reports issued by the Tax Foundation and the Washington D.C. Chief Financial Officer.


Source: The Tax Foundation

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 45th out of 51 metropolitan areas in the United States.
  • Property taxes in Nevada are far lower than most states, and tax abatements that favor residential homeowners have widened the gap between classes of taxpayers.
  • Tourists pay a significant portion of the sales tax. It is estimated that approximately 31 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.
Tax Burden Share of Income National Ranking
Family of Three ($25,000) $3,027 12.10% 24th
Family of Three ($50,000) $3,849 7.70% 40th
Family of Three ($75,000) $4,734 6.30% 45th
Family of Three ($100,000) $5,099 5.10% 46th
Family of Three($150,000) $6,305 4.20% 49th

Source: Office of the Chief Financial Officer, District of Columbia (2011).

Nevada's gaming licensees and their patrons pay numerous industry-specific taxes, including gaming taxes, room taxes, quarterly fees on slot machines and table games in addition to the various levies imposed on business generally such as sales, payroll and property taxes. The largest industry specific levy, the gross gaming fee, is 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.


Note: Estimated Major Tax Collections Per Employee By Industry Includes Retail Sales and Use Taxes, Ad Valorem (Property) Taxes and Gross Gaming Fees (Excludes Net Proceeds of Minerals) 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
  • A general admissions tax
  • Bank excise measured by income
  • Bank share tax
  • Special intangible tax
  • Franchise tax on income
  • Inventory tax
Source: Nevada Taxpayers Association.

On average, the other 49 states are more like California, reporting that more than 27 percent of state and local government expenditures are financed through business and personal income taxes. Indeed, every other state with legalized gaming has a state personal or business income tax - or both, which far surpass gaming taxes. Simply put, because of Nevada's success as a leading tourism and gaming destination, individuals and other businesses are able to pay less than they would almost anywhere else in the country.


Note: Other Selective Sales Taxes and Other Taxes include levies imposed on gaming and tourism operations. Source: Office of the Chief Financial Officer, District of Columbia.

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. Hotel-casino operators account for 7 of the top 10 property taxpayers in the state. In fact, the top 10 gaming property taxpayers report a total assessed value of more than $7 billion, a figure roughly on par with the total assessed value of Nevada's counties and Carson City, excluding Clark and Washoe Counties. MGM Resorts International alone reports a greater assessed value than every county in Nevada except Clark and Washoe.

Clark County Largest Taxpayers (2012 – 2013)

  Taxpayer Assessed [1] Appraised [2]
1 MGM Resorts International $2,453,765,826 $7,010,759,503
2 NV Energy $1,618,820,753 $4,625,202,151
3 Caesars Entertainment Corp. $1,514,349,117 $4,326,711,763
4 Las Vegas Sands Corp. $958,971,521 $2,739,918,631
5 Wynn Resorts Limited $720,065,000 $2,057,328,571
6 Station Casinos Inc. $486,757,127 $1,390,734,649
7 Boyd Gaming Corp. $323,806,369 $925,161,054
8 Nevada Property 1 LLC $279,418,598 $798,338,851
9 Howard Hughes Corp. $164,087,944 $468,822,697
10 General Growth Properties Inc. $161,490,791 $461,402,260
11 Universal Health Services Inc. $157,157,814 $449,022,326
12 Southwest Gas $151,845,727 $433,844,934
13 Ruffin Companies $144,016,444 $411,475,554
14 Picerne Real Estate Group $136,101,028 $388,860,080
15 Camden Property Trust $135,546,483 $387,275,666
16 Hospital Corporation of America $129,933,454 $371,238,440
17 Molasky Group of Companies $121,282,758 $346,522,166
18 World Market Center Las Vegas $111,509,890 $318,599,686
19 Wal-Mart Stores Inc. $108,130,608 $308,944,594
20 Eldorado Energy LLC $107,299,899 $306,571,140

Washoe County Largest Taxpayers (2012 – 2013)

  Taxpayer Assessed [1] Appraised [2]
1 Peppermill Casinos Inc. $106,730,452 $304,944,149
2 Prologis NA3 LLC $65,483,880 $187,096,800
3 Golden Road Motor Inn Inc. $45,028,236 $128,652,103
4 Sparks Legends Development Inc. $41,745,486 $119,272,817
5 Prologis NA3 NV V LLC $41,165,385 $117,615,386
6 Circus & Eldorado Joint Venture $37,107,026 $106,020,074
7 International Game Technology $35,280,000 $100,800,000
8 Northwestern Mutual Life Ins. $34,888,567 $99,681,620
9 Reno Retail Company LLC $26,151,176 $74,717,646
10 Hyatt Equities LLC $24,351,195 $69,574,843
11 Catholic Healthcare West Inc. $23,323,485 $66,638,529
12 Not Available $23,149,853 $66,142,437
13 Wal-Mart Real Estate Business Trust $22,361,551 $63,890,146
14 Nevada Pacific Development Corp. $22,337,847 $63,822,420
15 Charles River Laboratories Inc. $21,465,827 $61,330,934
16 Meadowood Mall SPE LLC $20,244,778 $57,842,223
17 Gage Village Commercial Dev. LLC $20,206,328 $57,732,366
18 Penney J C Properties Inc. $17,183,730 $49,096,371
19 Prime Park Vista LLC $15,379,225 $43,940,643
20 Firecreek Crossing of Reno LL $14,871,724 $42,490,640


Note: [1] Assessed value reflects 35 percent of appraised value. [2] Appraised value approximates market value. Sources: Clark County Assessor's Office, secured and unsecured tax rolls, Washoe County Assessor's Office, Top Washoe County Taxpayers.