Las Vegas to Fund Arts Center after Rental Car Tax Proceeds Fall Short

After estimates of proceeds from a city car rental tax fell short of expectations, the Las Vegas City Council on March 18 approved the sale of $105 million in bonds against the car rental tax to fund a new performing arts center in the city. But the city still needed to make up a $45 million shortfall—the $105 million in bonds was short of original estimates of $150 million in proceeds from the rental car tax.

About an hour later, it was announced the city would soon close on the $85 million sale of redevelopment agency bonds to go toward various redevelopment projects. The funding would include money to make up the rental car tax shortfall in the city’s obligation for the performing arts center.

When backers of a yet unnamed downtown performing arts center went to local leaders in 2005 looking for seed money, the solution was a car rental tax hike on tourists.

The council’s vote came after estimates showed the tourism downturn hurting car rentals.

But the vote marked a shift toward more reliance on residents for financing. When the Legislature authorized local government to raise the tax on rental cars by 2 percentage points and use the money for the center, locals were prominently exempted.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Hertz, Avis Autonomy Partnerships: Good First Steps on a Long Path

Two new autonomous vehicle project partnerships bring the importance of fleet management to the fore.

An Inside Look at Car Rental in China

A trip to a new car rental convention in Guangzhou reveals a booming market, yet one facing unique challenges.

Job Finder: Access Top Talent. Fill Key Positions.

>