During fiscal year 2010, 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 nearly $1.3 billion, or approximately 46 percent of state General Fund tax revenues – more than any other industry.

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 47th 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 34 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.

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.

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

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 6 of the top 10 property taxpayers in the state. In fact, the top 10 gaming property taxpayers report a total assessed value of nearly $10 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.