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Wednesday, October 08, 2008

Should Wicomico County Subsidize Crown Sports Center?

As reported in this morning's Daily Times, the Crown Sports Center is asking Wicomico County for some relief from the Amusements and Admissions tax.  Is this a valid request, or just another stab at corporate welfare?

You would probably guess from the title and first paragraph that I'm opposed to this proposal.  You would be wrong.  At this point, I'm pretty agnostic about the whole thing.

Why?

Let's examine a few questions:
  • Is this a corporate subsidy?
  • Is this corporate welfare?
  • Is it bad public policy?
  • Is it fair?

Read More ...


45 comments:

Anonymous said...

LETS give away more money out of the tax base, why not....

Bill created it and he can afford it... Quit winning about the money, they need to get rid of some of the Chiefs they have there adn stream line their operation from mis-management.

Anonymous said...

I really don't like these kind of things, however at least these people are local, at least these people have not only provided jobs but they have created a market for the public. They have been a service to the city when they housed the police horses.

Now then, given the city gave a couple city slickers (or thought they were) $14 million of our future tax dollars and just how many jobs have they created? And jury duty is not included!

Anonymous said...

The Crown is a huge asset to the area. I do not think they are making the kind of profits that you see large oil companies make or paying executives the kind of money that AIG was. The Amusement tax in Md is extremely confusing and I think there is still a question if the Crown owes it. I commend Bill Hearne for filling a need in this community when the County was financially unable to do so. I 100% support the effort to get the taxes abated.

Anonymous said...

Pay your taxes. It's funny how someone can open a business and when they don't pay the proper taxes they act like it's a big surprise and they didn't know about it.

Anonymous said...

No! Although Crown Sports Center fills the void that the Wicomico YOUTH and Civic Center is supposed to provide, subsidizing it would only turn it into another WYCC disaster.

Anonymous said...

Sir:

Some obvious aspects of your post:

1. Your lack of an Ivy League education -- "I’m pretty agnostic about the whole thing." At least that tops Tip's "politics ain't beanbag," but not by much.

2. That you're a come here -- the tennis exemption reflects the former "National Indoor Tennis Tournament" -- it was once was held here annually with much local hype and is the reason why the "new" Civic Center is much larger than we need and can support. The exemption for bowling reflects the fact that "back in the day" the County was run by business interests even more so than now.

Let's put the "Crown" tax exemption of the ballot next month for another one of those non-binding referendums.

Anonymous said...

cant afford it...word on the street is that crown is going to be opening a brand new laser tag arena? its true..it's on there website. so, if you can afford to put in laser tag you shouldnt have to pay your taxes....sign me up!

Anonymous said...

Things are tough, so it's time for more welfare for the masses, right?

Anonymous said...

Would someone please tell me who sponsored the Admission and Amusements Tax?

We need to pin the 'tail on the donkey'.

Please, someone find out who the culprit was. Then, we can tar and feather the bastard.

Crown was broadsided on this tax just like so many of us on other taxes also. Like the flush tax for instance.

G. A. Harrison said...

Anon 1035 -

You are correct that I don't have an Ivy League education. I'm a proud southerner. However, if you would consult a decent dictionary, you would find that "agnostic" is a perfectly appropriate term for what I meant. Admittedly, the putting "pretty" before it was not the best choice.

I think you will also find out that the exemption for tennis was for the indoor tennis facilities in town. If I am not mistaken there were two at one point during the "tennis boom". It works well with you bowling comment.

As for putting it on the ballot, I hope that you were kidding.

Mardela said...

Requests like this after giving away "free" use of their facilities for the good of the public (cancer walk) makes one wonder what their true motive is.

That being said, many will reply saying that they are wonderful people and that one has nothing to do with the other. This is probably true, but the appearance of this sometimes is stronger than the truth.

If they are given this tax break, why shouldn't we give other businesses tax breaks for what ever reason they have?

This is a private company run by very nice and successful people. If they feel that this tax is too much of a burden, they need to get their attorneys to work on what they can do. Otherwise, make adjustments to the pricing and pass this on to the user. Welcome to America!

joe albero said...

Let me get on the record on this subject as it is one that is somewhat complicated.

When I had businesses in Ann e Arundel County they had the highest Amusement Tax in the entire United States, 10%.

That being said, you paid ONE tax or the other. In other words, you pay NO SALES TAX if you're paying the Amusement Tax. It with the higher of the two evils that you paid. I believe the Hearne Family will eventually learn this as the Government is trying to tack on and demand more money than they deserve anyway.

MANY Accountants are not aware of the uniqueness of the Amusement Tax and if they study it enough, (as my Rockville Accountants did) they will come to learn I am absolutely right and not as much money is owed.

If the amusement tax is 6% in Wicomico County, then the Hearne's only owe NOTHING!

OK, as for where things need to be amusement tax wise down the road. While I agree, the taxpayers shouldn't have to pay or should I say, lose money along the way. However, the Hearne's can shut down their facility and simply rent warehouse space and be done with all the extremely hard work Bill Hearne puts into the place. WITHOUT the Crown Center, the County gets ZERO taxes anyway, so quit your bitching.

I have been well aware of this situation for some 6 months now and have chosen to stay out of it, basically because I consider the Hearne Family, well, Family. I was not aware this article was being brought forth by GA and while I would never tell my contributors what they can or can't write about, GA has the right to his opinion and I respect that.

My sugestion to the Hearne Family is as follows. Crdeate a non taxable Yearly MEMBERSHIP for all activities there and they can forget collecting the amusement taxes from you anyway. I did it with Private Membership Only Billiard Rooms around the state of Maryland and eliminated those Amusement Taxes without any problem whatsoever.

Anyhow, the Hearne Family has given from their harts with the Crown Center, as I mentioned not that long ago in one of my Posts referencing Relay for Life. Think long and hard before you go atacking these fine people because they can simply close their doors and jobs will be lost and positive income can finally be made if they simply rented the space as warehouses.

Anonymous said...

Tax dollars should never be used for this type of thing. Government is broke and out of control now. Stop the madness of giving away tax dollars, it doesn't help the majority and only benefits a few.

Anonymous said...

GA:

You're "ambivalent" (i.e., undecided), perhaps, about this County level "bailout" ploy?

Anonymous said...

Is this a sick joke????

Anonymous said...

Amusement tax? Is this charged to the WYCC when they register softball leagues? I do believe Bill Hearne registers soccer leagues and hosts tournaments. Is there an admission charged to spectators to support these players or someone that simply enjoys the games? I don't get it. I can see amusement taxes on video games, carnival rides, even on CoCos but not on a sports center.

G. A. Harrison said...

Sorry Anon, I sure hope that you aren't the product of an Ivy League education.

From Webster's -

agnostic (adj.)

Definition 2 - noncommital, undogmatic

I typically use the word regarding certain aspects of public policy. When doing so, I am being UNDOGMATIC.


Mardela -
You should be ashamed! While I don't know Mr. Hearne personally, my father does and claims that he is a great person. To question his motives in donating the facility because the Relay for Life would have been rained out is wrong.

As for the second half of your comment, Mr. Hearne is doing what he has a perfect right to do - PETITION HIS ELECTED OFFICIALS.

Just because a man is wealthy and/or successful, are you claiming that he has lost certain fundamental rights? If so, I would suggest that you are in the wrong place and direct you to the Daily Kos.

As I stated in the original post, I am agnostic on this issue. However, I would like to see that any accomodation given to the Crown Sports Center be done fairly.

G. A. Harrison said...

Anon 1224 -

I understand your confusion. First, WYCC does not pay an amusement tax because they are a non-profit entity (in more ways than one). The YMCA doesn't pay amusement tax either.

Your take on the amusement tax is exactly the same one that I had when I heard about this matter last Saturday. However, when I checked the state's web site, there is no question it applies as written.

I just think that this is one more example of the Unfree State.

Wymzie said...

I think it is bad public policy.

I have never been to Crown myself, but I know many people who have and from what I have seen from the vast amount of activity from the outside, it looks to me as if this has become an asset to the community.
From a business point of view when you have an asset in your community, more money comes in, more money is spent at existing business's and therefore everyone benefits.
I take issue with the categorization of this being corporate welfare.
Bringing in business and not being penalized for doing so makes for good government.
I disagree with these types of taxes period.
I also disagree with inventory taxes, equipment taxes, tax abatement's and the like.
This only encourages dishonesty and, keeps corporate eyes set on more favorible enviroments.
It is a shame that governments rely on this type of stuff to pay for their existence. It only proves how un-necessary most of the crap that they provide is.
I spent last month in Wyoming, and was so refreshed by the business environment there. They are so happy for anyone to come and do business there and welcome you with open arms, with no personal income tax and no corporate taxes.
Sales tax is the same as here, and no state inventory tax.
They offer no stupid incentives to more there because they are so friendly there is truly no reason to do so.
I think more states need to rethink there policies as they are just pushing people out and discouraging entrepreneurs.

Anonymous said...

Anonymous said...
I 100% support the effort to get the taxes abated.

10:11 AM

Since you think it's a great idea sign your name so that we will know that you are not affiliated with Crown.

Anonymous said...

Mardela said...
Requests like this after giving away "free" use of their facilities for the good of the public (cancer walk) makes one wonder what their true motive is.

11:06 AM

Mardela, you make a good point there and I understand what you are say. The Crown Sportscenter is in business to make a dollar and they charge for everything. I coach youth sports and play as well and everything associated with Crown has a price tag on it. They were charging $90/hr to rent the courts for practice. Their prices per student are approximately 3 times what the county charges. They are also competing with the county sports programs which we already pay taxes on. They con you into giving up your phone number and email so they can bombard you with "specials." It is almost harrassing at times.

If they want to stay in business then they need to pay the price. No more handouts to people that can afford it.

Anonymous said...

One thing that everyone neglects to admit is that Mike Mercer, Director of Crown Sports Center was a member of the Wicomico County Recreation Commission for quite sometime so he has a connection with Gary Mackes. This inturn offers a connection to the likes of the liberal council members such as McCain, Cannon, Pollitt, etc.

Anonymous said...

Hello....we subsidize the hotel, restaurant and tourism businesses in this town/county already with tourism/bed tax. What's the difference?

Anonymous said...

Let me tell you all one thing about Bill Hearne. He has not been in business all of his life because he is a leech or because he evades his financial responsibilities. He is successful because he does what is required when required on top of all that he gives to so many that you have no idea. Do any of you know how many people he has helped get their license then give them a job with very good benefits? Do you have a clue why its so hard to get a driving job with him? You can't drive a truck that a driver won't quit driving until he either retires or dies. Bill Hearne has always paid his way and the way of many others in life. So unless you know the man, don't go bashing him or his method of doing business. How many times have you seen his name or business name in the paper asking anyone for any kind of provisions, abatements or assistance? Unlike local lawyers that ask for major tax breaks and receive them.

Do you also realize it's not about the amount of the tax owed? If he knew he owed it, his accountants would have made sure it was paid. It cost Wick more to buy a truck and trailer than this tax that is being levied. As GA said, he is doing what he has every right to do, petition the local government. If you prefer the way the rules are laid out in ohhhh say, Communist Cuba, take a swim 90miles south of Florida and live there.

NO, I do not work for Bill Hearne, his family or the Crown Center. I just happen to be one fortunate enough to know him.

Anonymous said...

He's in business, if he doesn't want to pay the taxes owed, he can shut it down. I have to pay my taxes.

Anonymous said...

I didn't think that Republicans had any problems with corporate welfare?

Anonymous said...

Maybe Ricky and Cannon will try for a twofer -- give them a big tax break and also kill the tax cap so the rest of us can get hit for the deficit!

And then put a tax on our cable rates to upgrade PAC14.

They've really got us trapped in Wicomico now that the home market has tanked so that we can't sell and move elsewhere like Joe was smart enough to do a couple years ago.

Anonymous said...

Well to their credit, at least Crown is FOR the people and BY the people of the county.

By contrast, look how Worcester County and Ocean City bent over FRONTWARDS to give a tax break to Trimpers Amusements and Jolly Roger Amusements. Neither of those businesses benefit the ordinary taxpayers and citizens of Ocean City or Worcester County nor are patronized by locals.

Anonymous said...

I don't think this is about Mr. Hearne being a nice person. I know for a fact he is a nice guy. The problem is that "Crown" is asking for tax relief and they shouldn't get it. The ordinary citizens of this county need a tax break, not a business that is in business for a profit.

If they can't handle being in business then maybe they should turn the complex over to the county parks and recs or go back to leasing it as a warehouse.

Anonymous said...

4:22 --

That adult book store in Salisbury serves the local folk ("for" and "by" the people) so it should get a tax break, too, right?

Anonymous said...

GA:

You and William Jefferson Clinton must have that "the meaning of 'is' is" gene in common. There's no known cure, sorry.

Anonymous said...

This is exactly why I've been a proponent to succeed from the Western Shore.

We are not 'of the same blood' that they are across the Bay.

They've - (Maryland Legislature) - has taxed everyone of our residents into oblivion and then try and tell you that your undertaxed.

I know we were just one vote shy from Succeeding in 1960's . . .but we can Succeed and form our own State by using a Referendum mechanism to be initiated in every County on the Eastern Shore.

I'm sure it would pass overwhelmingly.

Johnnie Miller

Anonymous said...

Johnnie, show us documentation of the Seccession vote of the 60's.

Anonymous said...

RE: Posting 6:39

You wanted Succession legislation.

Here it is:

http://en.wikipedia.org/wiki/Eastern_Shore,_Maryland

Actually, the Eastern Shore attempted Succession 3 times the latest in 1998 via legislation by Senator Stolzfus & Colburn:

It really wouldn't be all that hard. It just takes a few ingredients: Diligence, Perseverance, Tenacity, Dedication.

G. A. Harrison said...

Since an awful lot of you want Crown to pay full freight, I hope he raises his prices. Since they have a virtual monopoly on their services, a 10% - 15% price hike shouldn't be a problem.

Of course, I expect that some of you who are having a fit about this will be the first ones to scream over a price hike.

Paying the taxes was never the real issue. The question I posed was more about what the county should do moving forward. Should Crown get a special exemption? Should the rate be drastically reduced for everyone?

Instead, an awful lot of you want to make this some bizarre indictment of Mr. Hearne and one of you wants to dictate what adjectives I use (and obviously doesn't have access to a dictionary).

I'm actually starting to understand why Albero gets so much grief. It's not necessarily what he writes as it is what some of his readers write.

G. A. Harrison said...

Good Grief People!

It's SECESSION, not SUCCESSION. The former means "a formal withdrawl" and the later "the act of following in sequence".

It all sounds so lovely. I can only assume that you would be willing to have your taxes doubled, or shut down little things like the public schools. This ain't Alaska, where such a thing would not only be politically feasible, but economically feasible as well.

Do you think that Delaware would want you? If not, we'd be in one hell of a pickle. Or were you planning on a 15% sales tax for Ocean City? I'm sure the Delaware beaches would love that.

I aplogize for flying off the handle, but people who can't engage in intelligent debate (and a few of you obviously can't) should try to read and leave the typing to others.

Anonymous said...

More Info On Secession:

GA: As hard as it may seem, Delaware even invited us. This one was a really close vote. It only failed by one vote.

In 1833 the Delaware General Assembly by unanimous vote invited the Maryland Eastern Shore Countries to join them in the formation of a new state. The offer was turned down by the Maryland State Senate by a vote of five against and four in favor. So the State of Delmar missed being formed by one vote. Another effort was made in 1835 and over the years up to the present, the Eastern Shore Counties in Maryland have talked of breaking away from Maryland.

Joe Long wrote me once that when he was in the Maryland assembly he personally suggested that the Eastern Shore of Maryland detach their selves from the state, float the Eastern Shore of Maryland. about a mile or two out in the ocean and declare our independence, attack the U.S., surrender, and apply for foreign aid. We then would have had no taxes, and could have lived like the rest of the world, on the taxpayers of the USA.

Anonymous said...

Enough progeny of the Wicomico power elite spend their idle hours at Crown that it will get a mega-size tax break -- and the hoi-palloi will get screwed.

Anonymous said...

TO: GA

This Amusement tax should not even be on the books for our County.

It's just like the Inventory Tax, we are the only County in the entire State of Maryland that has this tax on unsold inventory. And people want to know why we're not business friendly.

Anonymous said...

Mardela said...
Requests like this after giving away "free" use of their facilities for the good of the public (cancer walk) makes one wonder what their true motive is.


Are you suggesting the people at the Crown have the ability to make it rain?

Anonymous said...

G. A. Harrison said...
Since an awful lot of you want Crown to pay full freight, I hope he raises his prices....

G.A., why should Crown raise the prices? They should get more sponsors to support them instead of passing the burden onto the players.

By the way, the Crown is not a monopoly since the county also provides soccer, etc.

G. A. Harrison said...

Anon 2107 -

I said that they had a VIRTUAL monopoly. They do. Who else in the area offers this type of facility? You also proved my point about the folks screaming for them to pay up being also opposed to them raising their prices. You can't have it both ways.

Again, I am not advocating either position. I am arguing for either an elimination of exemptions for things like bowling and tennis OR a reduction (or elimination) of the tax that is across the board.

Obviously, I would prefer an elimination. Just don't expect to see the votes on council for that. Providing relief to Crown only sends the wrong kind of message.

Anonymous said...

When government gets out of the business of running sports programs, it can then tax those who operate similar or equivalent programs (even those held in fancy remodeled arenas).
Government needs to stick to its priorities, and offering youth soccer, volleyball or karate classes aren't priorities. Let places like Crown (or the Salvation Army) do that.

Anonymous said...

*ELL NO!!!!!!!

Anonymous said...

I am in the same pickle as Crown Sports Center. I own Delmarva Paintball and I too have a large A&A tax due.

7 years ago, when I moved my business from Laurel, DE to Salisbury (what was I thinking)I spoke with a representative from the MD comptrolers office about taxes. Not once did the A&A tax come up. I hired a bookeeping firm and an accountant. They too were uninformed about the A&A tax. So, unknowingly I did not charge my customers this tax for years.

Until… Like Crown, I had an audit. Everything else was in order but I recieved a huge bill with penalties and interest for years of A&A tax.

I’ve been trying to figure out what it is for. Why do some business have to pay it and others do not? Neither I nor my customers get any benefit from it. It seems to just be a random tax on random businesses.

Am I for Crown Receiving tax relief? Yes, but Delmarva Paintball should get the same.