Introduction

Senate Bill 1 from the 35th Special Session, known as the Southern Nevada Tourism Innovation Act, marks a major step forward in supporting the continued growth and development of Southern Nevada’s sports and entertainment landscape.

At the heart of this legislation is the creation of a Sports and Entertainment Improvement District, which will be established by the Clark County Board of Commissioners. This specially designated area is designed to support the funding and development of major sports and entertainment infrastructure—most notably, the future Las Vegas Major League Baseball stadium.

How It Works: Redirecting Existing Taxes

To finance the district’s development, the legislation authorizes the use of specific tax revenues already being collected within the area. These taxes, fees, and charges will be redirected from the general fund into a dedicated account to support stadium and entertainment-related investments.

The following revenue sources will be pledged to the Sports and Entertainment Improvement District:

1. Sales and Use Tax on goods sold, used, or stored within the district.
2. Local School Support Tax (another form of Sales and Use Tax) applied to the same.
3. Modified Business Tax (MBT) on wages paid to employees working within the district.
4. Insurance Premium Tax on premiums from policies connected to businesses or properties in the district.
5. Commerce Tax on gross revenues generated within the district.
6. Live Entertainment Tax on admissions to live entertainment venues within the district.
7. Liquor Tax on the purchase and consumption of liquor within the district.
8. Transportation Connection Tax from transportation network companies (e.g., rideshare services) where trips begin or end in the district.
9. Exhibition Fees from licensed facilities that host exhibitions within the district.

Ensuring Transparency and Accountability

To effectively implement this redirection of tax revenue, the Nevada Department of Taxation will develop commercially reasonable procedures to identify and separate these revenues from other collections. This ensures businesses operating within the district can comply smoothly and efficiently, and that the appropriate funds are directed to the dedicated baseball stadium tax account.

In addition, the Department will be responsible for monitoring the use of transferable tax credits, which can be applied against the Modified Business Tax or Insurance Premium Tax, ensuring integrity in the tax credit process.

Modeled on Proven Success

The structure and distribution model for this improvement district closely follows the existing Tourism Improvement Districts (TIDs) already in place across Nevada. These have successfully supported development in other high-traffic tourism zones and are a proven model for sustainable investment in large-scale infrastructure.

Building for Tomorrow

The Southern Nevada Tourism Innovation Act reflects the state’s commitment to maintaining its status as a global hub for sports, entertainment, and tourism. By leveraging existing tax revenues within a defined area, this initiative lays the groundwork for significant economic growth—without placing new taxes on residents or visitors.

For more information and updates on implementation procedures, check back here.