Name: Sport Finance Lab 3 1. Assume voters in the city of Minneapolis approve an increase in the city's hotel tax to help construct a new stadium for the Minnesota Vikings. The tax will be in place from 1/1/2015 to 12/31/2015. The city hotel tax will increase from 14.00% to 14.75%. If $337.50M is considered taxable hotel sales during the time period... a) How much tax revenue is generated in total? b) How much tax revenue will go toward stadium construction? c) How much tax revenue is kept by the city? 2. Assume the city of San Diego owns the parking lots around the San Diego Chargers existing stadium. The city of San Diego has agreed to publicly fund a portion of a new venue for the Chargers through a new parking tax on these lots. The city and team are trying to determine whether to add a $5.00 flat tax surcharge per parking space or a 22.00% surcharge per space. They estimate that 655K parking spots will be sold using the flat surcharge option and 705K parking spots will be sold using the % increase option. All parking spaces cost $20.00. a) How much tax revenue is generated using the flat surcharge option? b) How much tax revenue is generated using the % increase option? c) Which option is the best choice for the Chargers? MacBook Air 30 is COD 4 *** IN * $ 3 % 5 & 7 6 8 9 0 E R. T Y U