Posts Tagged Browns Stadium
Want a Just City Tax… Try Admission Tax on Sports Events, Fair and Proper
Posted by Roldo Bartimole in Economic Development, Politicians on November 24, 2009
November 24, 2009… The most reasonable tax for Cleveland City Council to raise income would be a special admissions tax on all events at Progressive Field, Quicken Arena, and Browns Stadium.
Why?
The reason is mainly because none of the teams pay any property taxes on their sports facilities. Not a penny.
They ride FREE.
Somehow Mayor Frank Jackson and City Council always overlook the guys at the top of the ladder. In this case, all Billionaires. How predictable.
We shall see how it makes sense.
A 10 percent added admission tax would bring in millions of new revenue. The tax would actually probably have an added benefit to sports fans. The teams would have to think twice before raising ticket prices.
So it’s likely that a major part of the cost would have to be borne by the teams and the already – if not over-paid – well paid athletes.
It would be fairer because, although the city pays the high cost of policing the sports events and takes the loss of property taxes, the fan base comes from a wide geographic area. Most likely most fans come from outside Cleveland and many outside Cuyahoga County.
They don’t share the burden of the cost of the stadiums to the city and county taxpayers. They enjoy the benefits, however.
So they should pay.
Even more to the point, the three team owners – Randy Lerner, Dan Gilbert and Larry Dolan – all come from billionaire families.
Who can afford to pay more taxes – billionaire families or an ordinary Cleveland family? It’s a trick question for the mayor and council members.
Even Mayor Jackson and Council President Marty Sweeney can figure that one out. If they want to.
If you can afford to go to games and events at these venues, built largely with government funds and advantaged with full 100 percent property tax relief, you should be willing to pay that extra charge to Cleveland.
After all, Cleveland residents feel the impact of the lost revenue from the exemption of property taxes. Some 15 percent would go to the city for its operation.
If you look at the attendance and average ticket price at events you can get a picture of how much money this could mean for the city.
The Cleveland Cavaliers had attendance in 2008-09 of 820,439, actually down from the previous season of 839,674. At an average price cited for tickets at the arena of $50, the Cavs would have attendance income of $41,983,700.
A 10 percent added admission tax would mean income of some $4.19 million in revenue for the city.
The Cleveland Browns had 578,672 in attendance (latest figures from 2006). At an average price of $55 for football tickets, it would mean revenue income of $31.8 million.
A 10 percent added admission tax would produce $3,182,696 of income for the city.
The Cleveland Indians had 27,110 in average in attendance for 80 games for an attendance of 2,168,800. At an average price of $26 for baseball tickets here, it would mean $56,388,800 in ticket revenue.
At a 10 percent added admission tax it would produce $5,638,880 for the city.
The city would earn more than $13 million in added admission tax revenue. It would produce more revenue than a garbage tax.
It would produce such revenue in a fairer manner. It would likely keep ticket price increases smaller or nonexistent.
The market will bear just so much, although sports fans seem to be unthinking consumers, paying more and more even though the teams reap huge amounts of money from television and radio and other sources. The NFL teams, for example, share some $100,000,000 (yes the zeros are correct) in revenue from broadcast and other sales of team products.
If you charged the 10 percent for ALL events at these tax-subsidized, property tax evaders, the city would earn even more money.
Doesn’t this make more sense and isn’t this fairer than taxing garbage?
Cleveland Taxes… Fair and Unfair, Dumb and Dumber
Posted by Roldo Bartimole in Economic Development, Politicians on November 17, 2009
November 17, 2009… I guess I’m just stupid. I don’t get it. Cleveland Mayor Frank Jackson wants to tax garbage to raise $13 million a year. Then he wants to tax non-profits to raise $5 million a year.
But residents already pay taxes to have their garbage picked up. Non-profits don’t any pay taxes. Seems to be a contradiction right there. Don’t you go after those that don’t pay taxes rather than those that do?
But there’s more.
Most Cleveland residents are not doing that well. Many of them you would call low income. Non-profits may be having some money problems but there’s plenty of money there.
Example: The Cleveland Clinic, likely the biggest of non-profits, had $3.4 BILLION in revenues in 2007, latest IRS report available.
Example: University Hospitals had net assets of nearly a billion, $994 million, in 2001, latest I could find.
Example: Cleveland Museum of Art has net assets of $873 million.
Example: Cleveland Foundation – assets of $1.49 billion.
Example: Gund Foundation – Assets of more than a half of billion dollars.
So from these behemoths you’d get $5 million a year but from working and unemployed stiffs you’d get $13 million? And you know the $9.25 garbage monthly fee will soon be $12, then $15 and then more.
So from the big money institutions you want $5 million but from people, who already pay plenty in income and property taxes, you want $13 million a year.
Doesn’t sound right. Not to me. Not to anyone with any sense.
What sounds even more ridiculous is this. The city would tax the Cleveland Museum of Art and the County gives the Cleveland Museum of Art $1.5 million in 2008 from the Arts & Culture fund from the cigarette tax.
Do we tax Playhouse Square, a non-profit that also gets subsidies from the County and got more than $1.5 million in 2008 from the County’s Culture & Arts fund, via a tax on cigarettes from the County?
Do you tax the Rock and Roll Hall of Fame, a non-profit? The Rock Hall got $880,000 from the Arts & Culture 2008 fund.
Do you give with one hand and take back with the other?
And then there’s this. Do you tax the tax exempt property users? They don’t pay taxes.
Would there be the tax on Progressive Field, on Q Arena, Browns Stadium? If not, why not? Shouldn’t they chip in?
It seems as though the plans for clipping people for chump change that hurts little guys but doesn’t much damage the big ones hasn’t been thought out and doesn’t make sense.
Go back to the drawing board, Mr. Mayor.