Casino giants listed as top Nevada taxpayers

Friday, Jan. 10, 2003 | 11:22 a.m.

CARSON CITY -- MGM MIRAGE in Las Vegas is the biggest property taxpayer in Nevada.

State Controller Kathy Augustine, in her annual report on state government, Wednesday outlined the financial picture for the state saying the "economy will grow and gradually rebound in the foreseeable future, but at a slower pace."

She reported that six casino companies are in the top 10 list of the largest property taxpayers in Nevada. MGM MIRAGE has an assessed value of $1.4 billion with properties such as the MGM Grand, New York-New York, Bellagio, The Mirage, Treasure Island, half of the Monte Carlo, the Golden Nugget downtown and a complex of three casino-hotels in Primm.

Assessed value is 35 percent of full cash value.

Augustine said Park Place Entertainment Corp. was second, with an assessed value of $883.8 million for its properties including Caesars Palace, followed by Mandalay Resort Group at $771.6 million, Nevada Power Co. at $644 million and the utility's sister company, Sierra Pacific Power in Reno, at $406.6 million.

In sixth place was Rouse Co. in Las Vegas, developer of Summerlin, the Fashion Show Mall and the Hughes Center at $360.9 million; followed by The Venetian resort at $322.1 million, Newmont Gold Co. at $310.8 million, Harrah's Entertainment at $273.3 million and Station Casinos Inc. at $267.2 million.

Augustine said the state's economy has been declining since mid-2001 but prior to the terrorist attacks of Sept. 11, there were indications conditions were improving.

"Since then, however, the state's economy has continued to suffer. Almost every performance indicator -- taxable sales, gaming activity, jobs and income -- has deteriorated, if not in actual terms, at least in respect to former growth rates.

She said total taxable sales, used to measure the economy, grew 5.8 percent in fiscal year 2001 but declined by half a percentage point in fiscal 2002 after the Sept. 11 attack. Gaming revenues increased by 2.5 percent in fiscal year 2001 but fell by 2.9 percent in fiscal year 2002.

"Declines were especially pronounced on the games and tables side where win (the amount taken in by the house) was down 7.2 percent," she said. "Win was off by just 0.5 percent for the less volatile slots."

In fiscal year 2002 which ended June 30 2002, Augustine reported the number of passengers arriving at and departing from Nevada airports fell to 39.1 million, down 10.3 percent from the previous fiscal year.

She said the national economic outlook "is clouded in uncertainty," because of the threat of war, accounting scandals and the declining stock market.

"As with the U.S. economy, recovery in the Silver State will likely be relatively weak, especially when measured against the high-growth period covering much of the 1990s and early 2000s.

"However, expectations are for Nevada to experience a significant, but gradual rebound," she said.

Many of the same companies are also the largest taxpayers in Clark County, according to a report compiled by the Clark County assessor's office.

MGM MIRAGE, Park Place Entertainment and Mandalay Resort Group top the list as the largest taxpayers in Clark County.

They are followed by Nevada Power Co., with an assessed value of $635.5 million, followed by the F.S. Rouse LLlC, which consists of the Howard Hughes Corp., with an assessed value of $360.9 million.

Four casino companies and one property owner round out Clark County's top 10 largest taxpayers.

In sixth place was The Venetian at $322.1 million; followed by Harrah's Entertainment Inc. at $273.3 million; Station Casinos Inc. at $267.2 million; Sierra-Nevada Multifamily Investments, which consists of Camden USA Inc., Oasis Club, Oasis Crossing and other apartments, at $191.2 million; and Coast Resorts Inc. at $151.8 million.