Las Vegas Sands desires to open a $4 billion built-in resort in Uniondale, NY, and can reportedly ask Nassau County for some tax reduction.
Nassau Coliseum in Uniondale, NY. Las Vegas Sands desires some tax reduction to open a Lengthy Island on line casino. (Picture: Brooklyn Vegan)
The gaming firm’s proposal not too long ago gained the assist of County Govt Bruce Blakeman, and the legislature there final week voted 17-1 in favor of permitting Sands to maneuver ahead. So there’s clear political assist for the on line casino lodge, however how prepared policymakers are to forego wanted income is a distinct matter.
Talking on the situation of anonymity, a Sands supply near the matter informed Newsday the operator is in search of gross sales tax exemption on sure objects and “a discount within the mortgage recording tax.” As an alternative of these taxes, Sands would make different funds to Nassau County, to the Hempstead public college and system, and to different related “taxing jurisdictions.”
The gross sales tax abatement the Las Vegas-based firm is in search of pertains to building gear, uncooked supplies, and furnishings for the on line casino resort. Nassau County’s gross sales tax charges attain as excessive as 8.875%, with New York’s state minimal of 4% utilized all through the county. Hempstead and Uniondale every have gross sales tax charges of 8.625%, in accordance with the Gross sales Tax Handbook.
Tax Breaks Typically Tied to Massive-Scale Tasks
Sands’ efforts to obtain tax reduction in Nassau County aren’t far-flung. It’s a tactic continuously employed by entities trying to carry large-scale initiatives, together with motels and stadiums, to new jurisdictions.
The Sands supply informed Newsday that the gaming firm hasn’t held talks with the Nassau County Industrial Improvement Affiliation (IDA) relating to the potential of tax reduction.
Nevertheless, the gaming firm could possibly be dealing from a place of power. It desires to develop the Nassau Coliseum web site right into a on line casino lodge. At the moment, the county owns that venue, that means it’s not gathering any property tax on it. Sands has a 99-year lease on the previous residence of the NHL’s New York Islanders.
Moreover, the proposed gaming challenge will create 1000’s of jobs, and the inflow of tourists to the property, assuming it’s accredited, will generate new streams of gross sales tax receipts for the county.
Sands Chairman and CEO Rob Goldstein not too long ago mentioned the operator’s general New York spend could possibly be $5 billion to $6 billion, noting these figures are effectively in extra of the lower than $1 billion the corporate spent to develop Sands Bethlehem.
Precedent Might Work in Sands’ Favor
There’s some precedent for tax reduction regarding Nassau Coliseum. The Nassau County IDA gave developer Bruce Ratner $4.5 million price of decreased levies to function the venue, together with decreased gross sales and mortgage taxes.
Ratner used some sale tax exemptions, as did the Islanders in 2019, whereas the crew used Nassau Coliseum whereas ready for a brand new venue to be constructed, in accordance with Newsday.
Sands should nonetheless clear environmental and zoning assessments. It should even be chosen for one among three downstate on line casino licenses by New York policymakers earlier than it may break floor on the Lengthy Island gaming venue.
