A preliminary report shows that the tax increase covering part of a new Las Vegas stadium for the Oakland Raiders produced more than $4.6 million in revenue last month. March was the first month in which the tax increase took effect.
Last fall, the State of Nevada authorized a hotel tax increase, including a 0.88% uptick in some locations, that would help fund the $750 million public contribution that will be directed to the stadium. Projections call for the increase to raise $14.8 million by the end of June, and the $4.6 million raised in March is higher than the $3.7 million per month that would be needed to reach $14.8 million.
Much of the money came from hotels located on or near the Las Vegas Strip, and the revenue result is something that is pleasing local officials. More from the AP (via the Bozeman Daily Chronicle):
The preliminary tax collection figures from March for the stadium that the Oakland Raiders want to call home were released Tuesday. The bulk of the money came from resorts and other lodging facilities in and around the Las Vegas Strip, where tourists are paying about $1.50 more per night on their hotel bill for an average-priced room.
“I think it validates the model in terms of what’s necessary to service the debt for the stadium,” said Steve Sisolak, commission chairman in Clark County, where the stadium is to be located. “It’s nice to see money actually collected and start to put some money in the bank for the stadium.”
The NFL approved the Raiders’ request to relocate in late March. The new Las Vegas stadium is expected to open for the 2020 season.