Las Vegas Sands ( LVS) rose nearly 4% Friday despite news of China possibly restoring a property tax that could affect the company's large real estate development on Hengqin Island.

According to a Deutsche Bank analyst report, the Chinese government issued a notice to enforce the 13-year-old "land appreciation" tax. The graduated tax was a 30% to 60% tariff on real estate appreciation (both commercial and residential) that has never been enforced, according to the report.

The tax applies only to mainland China, and not Macau or Hong Kong. That means Wynn ( WYNN) and MGM ( MGM), which operate casinos outside of the mainland, won't be affected.

Las Vegas Sands, however, is building an 80-million-square-foot non-gaming development on Hengqin Island, which is part of mainland China.

"At this point we believe it is too early to tell whether the LAT will be broadly enforced, or whether it will be selectively enforced -- i.e. exclude Hengqin -- however we might not know for years," Deutsche Bank analyst Bill Lerner wrote in the report

Lerner, who rates Las Vegas Sands a buy with a $119 price target, said the tax's potential hit to the stock is about $5 or $6 a share. Las Vegas Sands has said it expects between $23 billion and $65 billion in proceeds from the Hengqin development.

Separately, JPMorgan reiterated its overweight rating on the company's stock Friday.

Shares of Las Vegas Sands were up 3.7%, or $3.71, to $104.55 in afternoon trading.