Hotels are good business; an excise tax boom for City

By Josh Resnek

New hotels operating in Everett are the equivalent of a gusher in a Texas oil field contributing new untold riches to the city’s treasury, according to figures the state has released.

In the first quarter of the fiscal year 2020 (June to August 2019) Everett reported receiving more than $500,000 in excise taxes from room rentals at just too locations in the city.

On an annualized basis, that’s more than $2 million that the city might reasonably expect from excise taxes for hotel room rentals from the Envision Hotel on the Parkway and the Encore Boston Harbor Hotel at the casino.

In fact, Encore’s excise tax contributions are expected to be much larger as the business grows over the next two to three years.

It is impossible to predict what new lavish spending programs the mayor will use the added funds for.

The excise taxes also include additional revenues that added up to $255,000 for the quarter that comes from meals served by the casino’s restaurants in addition to other restaurant excise taxes that are nominally charged.

The restaurants, according to Encore officials, have not been operating at maximum capacity.

In fact, business has been soft at the restaurants.

Company officials told industry analysts two weeks ago on a widely attended conference call that they are experimenting and planning about what to do to.

Part of the effort, according to Matt Maddox, the Wynn Company’s Mr. Everything, is to seek out the best opportunities to build a stronger local business base as well as to use in the future the twelve acres of land Encore owns across from the casino and hotel.

There are possibilities for additional hotels, facilities and entertainment venues that can contribute largely to the bottom line in the years to come. A Motley Fool analyst has suggested that Wynn Company could raises billions of dollars by selling the properties its owns without selling the businesses themselves.

It is a novel idea but for the time being, Wynn Company is holding on to its property.

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