How Gaming Benefits Nevada
During fiscal year 2014, 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 $1.4 billion, or approximately 45 percent of State General Fund revenues – more than any other industry.
NV Hotel-Casino Industry's Contribution to State General Fund Revenues - FY 2014
|General Fund Revenue Source*||Total Collections||Hotel-Casino
Industry as a
Percent of Total
|Branch Bank Excise Tax||$2,788,166||$0||0.0%|
|Business License Fee||$72,166,482||$6,429,579||8.9%|
|Business License Tax (Phased Out)||$2,814||$0||0.0%|
|Governmental Services Tax||$62,267,322||$28,020,295||45.0%|
|HECC Transfer (Higher Education Capital Fund)||$5,000,000||$5,000,000||100.0%|
|Live Entertainment Tax||$154,136,218||$139,156,241||90.3%|
|Mining Taxes and Fees||$26,221,970||$0||0.0%|
|Modified Business Tax (MBT) – Financial||$23,789,898||$0||0.0%|
|Modified Business Tax (MBT) – Nonfinancial [a]||$361,095,880||$78,648,637||21.8%|
|Other Tobacco Tax||$11,620,286||$2,075,825||17.9%|
|Real Property Transfer Tax [b]||$60,047,457||$0||0.0%|
|Sales and Use Tax||$967,706,171||$314,807,385||32.5%|
|Total Tax Revenue||$2,851,648,150||$1,349,581,832||47.3%|
*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. [a] 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. [b] Assumed to be zero due to a lack of available data. Sources: Economic Forum; LVCVA; Nevada Gaming Control Board, Quarterly Statistical Report; Nevada Department of Taxation; Nevada Department of Employment, Training and Rehabilitation and Applied Analysis.
Large tax contributions by the tourism and gaming industry allow Nevada’s residents and businesses to enjoy among the lowest tax burdens in the nation.
State Business Tax Climate Rankings, 2014
Source: Tax Foundation and Applied Analysis.
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 49th out of 51 selected 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 33 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 on Hypothetical Family of Three in Nevada
|Income||Tax Burden||Share of Income||National Ranking|
Source: Office of the Chief Financial Officer, District of Columbia (2012).
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.
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. The hospitality industry pays a significant share of property taxes. In Clark County, hotels and hotel-casinos account for just 2 percent of improved nonresidential acreage, but 42 percent of taxable nonresidential property value. Including residential uses, hotels and hotel-casinos account for 1 percent of improved acreage, but nearly 13 percent of all taxable value, excluding vacant land. Nearly all of the top 10 property taxpayers in Clark County are hotel-casino operators, with MGM Resorts International claiming the number one spot. Meanwhile, hotel-casino operators account for half of the top 10 property taxpayers in Washoe County, with Peppermill Casinos Inc. reporting the second-highest value.
|Taxpayer||Assessed [a]||Appraised [b]|
|Clark County (2014-2015 Assessment Roll)(in Millions)|
|1||MGM Resorts International||$3,165||$9,042|
|3||Caesars Entertainment Corp.||$1,624||$4,639|
|4||Las Vegas Sands Corp.||$998||$2,851|
|5||Wynn Resorts Limited||$853||$2,438|
|6||Station Casinos Inc.||$553||$1,579|
|7||Boyd Gaming Corp.||$293||$836|
|8||Nevada Property 1 LLC (Cosmopolitan)||$275||$786|
|9||Eldorado Energy LLC||$210||$600|
|10||Hilton Grand Vacations||$190||$543|
|11||Howard Hughes Corp.||$186||$531|
|12||Picerne Real Estate Group||$180||$514|
|13||Southwest Gas Corp.||$178||$508|
|14||Universal Health Services Inc.||$173||$494|
|15||General Growth Properties Inc.||$165||$471|
|17||Molasky Group of Companies||$148||$423|
|18||Hospital Corporation of America||$136||$388|
|19||Harsch Investment Properties||$135||$385|
|20||World Market Center Las Vegas||$116||$331|
|Washoe County (2014 Assessment Roll)(in Millions)|
|1||BRE/Reno Property Owner LLC||$103||$294|
|2||Peppermill Casinos Inc.||$84||$241|
|3||Golden Road Motor Inn Inc.||$43||$122|
|4||MPT of Reno LLC||$39||$110|
|5||Sparks Legends Development Inc.||$37||$105|
|6||Circus & Eldorado Joint Venture||$28||$81|
|7||Northwestern Mutual Life Ins.||$27||$79|
|8||International Game Technology||$25||$71|
|9||Hyatt Equities LLC||$24||$69|
|10||BRE/PAC Nevada LLC||$24||$67|
|11||Nevada Pacific Development Corp.||$22||$63|
|12||G & I VII Reno Operating LLC||$19||$55|
|13||Wal-Mart Real Estate Business Trust||$19||$55|
|14||Charles River Laboratories Inc.||$16||$46|
|15||Meadowood Mall SPE LLC||$16||$45|
|16||Gage Village Commercial Dev. LLC||$15||$44|
|18||TR Reno LLC||$15||$43|
|20||Prime Park Vista LLC||$14||$41|
Note: [a] Assessed value reflects 35 percent of appraised value. [b] 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.