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California Alliance for Golf sends letter to Tax Commission explaining why tax would hurt golfers and golf industry

 April 14, 2009

 

Gerald Parsky, Chairman

Commission on the 21^st Century Economy

915 L Street, 8^th Floor

Sacramento, CA 95814

 

RE:  “Working stiff” golfers—the true face of golf in California

 

Dear Chairman Parsky and Commissioners:

 

At the Commission’s public meeting last week in Davis, your 14-member panel continued to examine ways to overhaul the state’s tax structure, including the application of the sales tax to certain services.

 

My client, the California Alliance for Golf (CAG), and golfers across the state are concerned by press reports about the meeting that perpetuate the myth that golf in California is a rich man’s sport. The facts reveal otherwise.  

 

Scattered in cities and counties across the state, California’s typical golf course is an affordable 18-hole course where families and neighbors can enjoy a friendly round.  And the great majority of California golfers who play there are exactly the type of moderate income individuals—the average Joes and Jills— who would be seriously impacted by a new sales tax on golf and golf-related activities and services. 

 

From seniors on fixed incomes, to youth golfers in The First Tee and Youth on Course programs to the municipal course weekend players and the working class buddies at the driving range and on the golf tee: These people are the face of California golf.

 

When a golf tax late last year was proposed as part of the budget package, the media shined a spotlight on these “working stiff” golfers. They work hard at their jobs, pay their taxes and, in these tough economic times, continue to enjoy some “play” time via the healthy outdoor activity of golf.  In coverage across the state, they spoke out against taxing their play, on top of everything else, and the financial burden it would create—forcing them to reduce or eliminate the activity they enjoy. The news coverage also highlighted the resulting financial ripple effect for private and public golf courses.

 

There are many misconceptions about golf in California—who plays it and what benefits it provides to California’s economy, both in the private and public sector.

 

Golf is an important part of California’s recreational and tourist economy, providing some 160,000 jobs in California, directly and in related hotel and restaurant service employment.  The golf industry is already hurting with courses closing like never before and others going into foreclosure. A tax would only worsen the golf economy, and slash golf related jobs, in the state.

 

Moreover, California’s public courses are key revenue producers for local governments. City and county parks and recreational programs, already struggling with reduced budgets, could see significant cuts when public course golf revenues drop as a result of the tax. The manager of the LA Department of Recreation and Parks expressed his concerns in the Los Angeles Times that a golf tax would negatively impact the $15 million his department receives from golf fees,  an amount that represents fully half of the department’s revenue.

 

Golf already contributes substantially to California’s tax base through property taxes, payroll taxes, income taxes, and taxes on golf merchandise.  An additional tax on playing golf could break an industry already operating on slim margins, and have serious unintended consequences.

 

As you consider alternatives to the current tax structure, CAG urges you to examine closely any proposal to extend the sales and use tax to golf play and services—and the far reaching negative impacts for the state, cities and local governments, golf jobs and the golf industry, and average Californians that would result.

 Sincerely,

STEVE BAKER

Legislative Advocate

 

cc:       Bob Bouchier, Executive Director, CAG