Will the MLB Stadium Engender Another Room Tax Raise?

If the rumored Major League Baseball stadium gets approved, can we expect yet another room tax levied on to us visitors?

The transient-lodging-tax rate was increased 0.88% in the resort corridor to support the public’s $750 million contribution to the $2 billion Allegiant Stadium price tag. It increase the average nightly hotel-room rate by $1.50. The increase was "only" 0.5% for rooms beyond the resort corridor, but still within the "stadium district," which extends over a 25-mile radius around the Clark County Government Center downtown.

The stadium bonds were created to include reserve funds to make up for any shortfall in room-tax collections. Those funds have already been accessed to cover interest payments to bond holders due to the decline in tourism during the shutdown in 2020.

If or when those run out, Clark Clark County will be required to fund any shortfall from its general fund.

In other words, the room-tax increase is backed by bonds that are a general obligation of Clark County, putting taxpayers on the hook once the reserves run dry. In fiscal year 2022, the county’s obligation is $35.4 million, with a balloon payment of $59.2 million coming in 2048. The interest on the bonds ($709 million) will ultimately exceed the principal of $645 million remaining.

That's why, when top executives of the Oakland Athletics approached county officials about "participating" in the funding of a new Major League Baseball stadium for them to play in, those officials were decidedly cool to the idea of helping to fund the new stadium.

We'd say that the idea isn't quite DOA. Vegas is rarely averse to raising "export" taxes like the one on rooms that mostly visitors pay and another major league team, especially one that plays 81 home games a year, would be a major draw. That said, we'd also note that the public's appetite to subsidize professional sports teams worth multiple of billions is somewhat lacking from Once-Bitten-Twice-Shy Syndrome.

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Donzack Mar-03-2022

Discount

If we show hotel tax receipts will we get discounted admission?

jay Mar-03-2022

accounting

Is there any accounting available to say how much $ were collected from the room tax ? It seems to me that taxes are put into place to help fund projects but once the threshold is met the tax never goes away. 

I remember someone pointing out that some toll bridge in NYC had exceeded its revenue obligation by 2x but when they tried to repeal the toll - there was public outcry about loss of jobs, and how the revenue stream would cripple other projects. 

https://www.nytimes.com/2014/11/22/nyregion/as-verrazano-bridge-turns-50-a-myth-about-its-tolls-persists.html

Kevin Lewis Mar-03-2022

F*** the tourists

I have this quaint and antiquated notion, that those who pay taxes should be the ones who benefit from them. The vast majority of visitors wouldn't give a flying fart about a baseball stadium, especially since there would only be a game about 2 out of every 9 days. And whatever economic boost the stadium might afford would accrue to Vegas itself, not the tourists. But hey, tax 'em anyway! It's not like they can complain or do anything about it, right?? (And they've been SO willing to bend over so far!)

Question of the Day - 03 March 2022

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