California Alliance for Golf sends letter to the Governor opposing the golf tax

February 10, 2009

The Honorable Arnold Schwarzenegger
Governor of California
State Capitol Building
Sacramento, CA 95814
RE: Sales Tax on Golf
Dear Governor Schwarzenegger:

On behalf of our client, the California Alliance for Golf (CAG), I am writing to inform you the alliance, and the millions of golfers in California it represents, remain strongly opposed to your proposal to impose a sales tax on golf.

Over the past weeks, golfers in this state have become aware of the proposed golf tax, and tens of thousands have mobilized, the very great majority of them public course players. Moreover, the golf tax issue has received significant and unprecedented statewide editorial and news coverage highlighting the negative consequences of the proposed tax. Enclosed are copies of much of this recent coverage.

As pointed out in our November letter, CAG recognizes the state is facing extremely difficult financial problems that need to be addressed. CAG supports broad-based approaches to address the state’s fiscal challenges, but does not believe individual industries should be singled out.

Singling out an industry like golf for a new tax would impose an inequitable and risky burden. That’s why the Legislative Analyst’s Office, California’s nonpartisan fiscal and policy advisor, urged last week that golf and other service taxes not be part of a budget-balancing package.

The golf industry in California has been particularly hard hit by the economic downturn. An additional tax of up to 10 percent on playing golf and golf-related activities would wreak significant harm on the industry, reducing play, slashing golf-related jobs and shutting down courses that are already operating on slim margins. City and county parks and recreational programs, already struggling with reduced budgets, would see further cuts as public course golf revenues drop.

In order to preserve needed jobs in this tough economy, keep courses open that are key to California’s tourist and recreational economy, and protect the viability of an activity enjoyed by millions of Californians, CAG respectfully urges you to reconsider this unfair tax on the golf industry.

Sincerely,

STEVE BAKER
Legislative Advocate

cc: Senate President Tempore Darrell Steinberg
Assembly Speaker Karen Bass

Comments

Diane Long: We need people to spend money in our state, taxing when they do will only deter golfers spending money to play our beautiful courses.; February 10, 2009, 4:38 PM

frank watts: taxing golf and golfers is very unfair. you cannot even begin to balance the state's budget through this golf tax you propose. i urge you to rethink this plan. given more thought on the matter i'm sure you will see how shortsighted this plan is.; February 10, 2009, 9:25 PM

Scott Nutter

There are consequences of this tax that are obvious and have been covered by others. These consequences alone should make the passing of this legislation questionable. When you add the unintended consequences, this legislation would clearly be harmful to the state's economy.

A tax would reduce play. There are people that can barely afford to play golf now. Any increase always eliminates these people on the margins. There are people that can afford to play golf but question it due to economic circumstances. These people can easily eliminate their golf. There are also people who will just dig in and say, "enough." This should be obvious. Also obvious, the layoff of staff which includes the people that maintain the golf courses. With courses in worse condition, you now eliminate another segment of golfers who don't want to play in ragged conditions. The situation spirals.

Golf takes up the time of many retirees. These retirees who will choose not to or will be unable to play golf will look to other ways to fill their time. Many of these people are very smart and intelligent workers. This is how they gained the privilege of becoming retired. With no golf to play and with economic conditions being what they are, these people are likely to say, "this legislation and economic conditions make me think that I should probably go back to work." These people don't necessarily HAVE to work. With unemployment being what it is, the last thing that you want to do is have people work and take jobs from people who NEED to work. I will use myself as an example. I was very good at what I did. If I re-entered the workplace, I will take the business from at least three people. This is an unintended consequence and one that will adversely effect people in the workplace that are struggling to get by.

February 11, 2009, 9:56 AM

David Hawkins: I say we should balance the budget on the backs of weight lifters and physical fitness centers instead.; February 12, 2009, 11:23 AM

Thomas Edmunds

Great Governor,

This is the only sport in the world that teaches the individual true sportsmanship. We are the only sport that does not need a REF or REPLAYS to call our own infractions. Mr Governor, I call an infraction on "U".

Tom Edmunds

February 14, 2009, 5:37 PM

Richard

I bet there is no tax on gymnasiums....

this is a joke...it sounds nearly as bad as taxing internet dowloads NY is proposing....

seriously...your government has lost the ploy...

February 18, 2009, 5:19 AM

GIL CASTRO

THE WORLD IS OFF THE BEAM.......

GOLF TAX IS A PENALTY FOR THIRTY YEARS OF SWEAT EQUITY.........

AN ADDITIONAL BURDEN ON A SMALL MINORITY THAT SELECTS TO ENJOY A SMALL PLEASURER

ANY AND ALL RELATED COSTS FOR A ROUND OF GOLF IS MY "STIMULUS PACKAGE" THAT CONTRIBUTES TO MULTILAYERS OF COMMODITIES , LABOR AND SERVICES.........

AN ADDITIONAL TAX WOULD HAVE A NEGATIVE INFLUENCE ON THIS EFFORT.........

PLEASE ASK YOURSELF "IS IT WORTH IT? WHAT IS THE ECONOMIC IMPACT IN THE SHORT TERM AND LONG TERM ?

AND FINALLY "" IS THIS BURDEN ONLY ON A SELECT FEW OR IS IT FOR NONGOLFERS , AS WELL.

FORE .......ON THE "FAIR WAY"

May 14, 2009, 2:11 AM