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Official: Tax Not Shifting Shows

LAS VEGAS -- The recently passed state live entertainment tax has yet to prompt a single event planner to move to another locale, Las Vegas Events President Pat Christenson said Tuesday.

Responding to a question from board member Robert Forbuss at the monthly meeting of the Las Vegas Visitors and Convention Authority, Christenson said the tax isn't a plus but hasn't hurt efforts to keep and recruit events to Las Vegas.

"Not really, not yet," Christenson said in answer to Forbuss' question about fallout from the new live entertainment tax. "The 5 percent (tax rate on large venues) doesn't help, and the 10 percent (rate on venues with capacities of less than 7,500) certainly doesn't help, but those costs get factored into their whole decision-making process."

Christenson and Las Vegas Events' programming director together pitch events on the city, trying to lure events attractive to big-spending tourists to fill space during slow weekends.

"We bring the new tax up when we talk (to event holders), but no one says 'Oh no! We're not going to go to Las Vegas.' There are similar taxes in other jurisdictions and the people we do business with aren't surprised."

Senate Bill 8, the catch-all, hodgepodge of a 156-page tax bill that theoretically raised enough new revenue that the state wouldn't run up a constitutionally prohibited deficit, replaced the former casino entertainment tax with a tax on live entertainment, in and outside casinos.

The new tax takes effect Jan. 1, while an interim levy designed to capture tax revenues from casino venues with capacities of more than 2,749 as well as outdoor entertainment events takes effect Sept. 1.

The casino entertainment tax imposed a 10 percent tax on all amounts paid for admission, food, merchandise or beverages in casino showrooms, lounges, nightclubs and cabarets in which music, dancing or other entertainment is provided.

Nonprofit event promoters also are exempt from levying the tax, meaning Las Vegas Events, the private, not-for-profit organization that promotes the National Finals Rodeo, won't collect the tax on rodeo tickets.

Authority spokesman Rob Powers said it is still too early to say whether the new entertainment taxes will hurt Las Vegas tourism.

"Time will tell," Powers said. "One of Las Vegas' great strengths is that people rightfully perceive it as a value destination. Any change in that perception would be a negative (for tourism)."

Forbuss said he's had concerns about a live entertainment tax from the start, through its various permutations until its final form.

"It's not the most predictable (revenue source)," Forbuss said. "It was a tax the Legislature grabbed because everything else was unpalatable."

Another concern, Forbuss said, is the relatively high cost of many Las Vegas shows.

"Our events can be very expensive," he said. "I saw the Eagles the other night and the ticket was $250."

At $250, the 5 percent tax applied to concerts at the 17,150-capacity MGM Grand Garden Arena would add $12.50 to the price of a ticket.

However, Forbuss wasn't sure whether the tax would affect the city's ability to lure events.

"Other places do charge significant taxes, so these new taxes will be something event promoters have seen," he said.

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