The targeted tax revenue per square foot of the businesses in that zone that profit from the massive foot traffic of Times Square and a hotel tax per night is u

The targeted tax revenue per square foot of the businesses in that zone that profit from the massive foot traffic of Times Square and a hotel tax per night is used to create a safer experience that is the attraction people come to see pays for that. Hotels can say not to tax the room and stop the Times Square event but they will lose far more revenue, a little extra tax for far more revenue makes a ton of sense. In other words, the people who visit for the experience pay for it by the hotel room and sales tax when they eat at Planet Hollywood.