According to the Las Vegas Sun, a potential tax reform in Nevada may threaten the future of Insomniac’s Electric Daisy Carnival in Las Vegas in future years. The report explains the State Legislature is debating the Live Entertainment Tax, which levies a specific percentage of revenue for certain live productions, and its possible extension to more or all large scale live performance events in the state. Right now, EDC Las Vegas and many other productions are exempt from the tax but that free pass is in jeopardy right now.
The law indicates that there be a 10-percent tax when there is a live performance with a maximum occupancy of 7,499. If the venue is 7,500 capacity or larger, a flat admission fee of 5 percent is charged — but there are many exceptions to this rule as it stands. In general the new tax would be simplified, more broad, and applicable to Pasquale Rotella’s event.
The Sun runs the numbers:
A three-day pass to this year’s festival (not including handling fees already applied) is $300, and Insomniac is accepting only those three-day purchases. A 10-percent tax on 320,000 tickets sold at that price would, conceivably, raise about $9.5 million in new revenue for the state — if EDC were held, of course.
Insomniac is not exactly quiet on this matter. In a statement on April 25, Rotella issued the following remarks:
Insomniac loves doing business in Las Vegas, and right now our primary focus is producing the best show for the fans who will attend Electric Daisy Carnival on June 21, 22 and 23. While we would love to bring another festival to Nevada, we are tabling any further discussions until the state Legislature settles the Live Entertainment Tax issue.
Although the future is uncertain, one does wonder if the $9.5 million in potential revenue, plus whatever additional new taxes the state could collect, is worth losing the reported $207 million in revenue they made in the busiest weekend for Las Vegas hotel room occupancy all year. More news here as the story develops.
Via: Las Vegas Sun