Earlier this week, City Council gave developers of the Gold Hill Mesa and South Nevada Urban Renewal Areas the lion’s share of city sales tax revenue from the proposed developments. Under the set-asides, each developer will get 87.5 percent of the revenue generated by the city’s 2.5 percent sales tax for the first five years, and 75 percent for the next 20 years.
Developers had sought more, asking for 100 percent of the revenue. It’s not yet clear whether Council’s decision to reduce the city’s sales tax contribution will affect development plans. It’s possible that developers may impose and retain an “impact fee” on taxable transactions, collecting it as a de facto sales tax.