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Las Vegas stadium: Breaking down the room tax impact

Posted at 11:49 PM, Sep 02, 2016
and last updated 2016-09-03 02:53:26-04
More than 300,000 people are making their way to Las Vegas for labor day weekend.
 
Those are the same people developers hope will pay for the proposed $1.9 billion NFL stadium.
 
13 Action News did the math to figure out how much would be generated by the proposed .88 percent increase to the room tax.
 
Let's assume all of the 307,000 tourists are sharing a room with someone. That means 153,500 rooms booked each night.
 
On an average $109 room, the increased room tax would add an extra 96 cents.
 
That would generate $147,360 dollars a night for the stadium. If those tourists stay three nights, that number jumps to $442,080.
 
Some have said the increase could deter people from coming to Las Vegas.
 
Everyone 13 Action News spoke with at the Welcome to Las Vegas sign Friday said they wouldn’t notice the change.
 
When it comes to big cities, Las Vegas is currently on the lower end when it comes to room taxes at 12.9 percent.
 
That number is only slightly higher than our biggest convention rival in Orlando at 12.5 percent.
 
Chicago, Houston and Indianapolis lead the nation all at or above 17 percent.
 
If lawmakers approved the room tax increase for the stadium and another half percent increase for convention center expansion, Las Vegas rate would move to 14.28 percent.
 
That would move Sin City into the company of cities like New York City (14.75 percent), Los Angeles (15.5 percent) and San Francisco (16.64 percent). 
 
Stadium developers say a full year of the increased room tax would generate $50 million for the stadium.