Wednesday, October 24, 2007
Saw It Coming
As was predicted in an entry earlier this week, the Steelers have issued a response to the City Controller’s report that the sports teams should contribute to a payment in lieu of taxes the City because as for-profit enterprises operating in facilities owned by an authority, they are exempt from property taxes. The Steelers stated that they are already paying enough in taxes—they claim $40 million since 2001—and they deliver spin-off benefits to the region’s economy.
But look a bit closer and it is clear that the Steelers as an organization aren’t really paying a lot of the taxes they include in their count. The amusement tax is collected from patrons when they purchase tickets; the non-resident usage fee is paid by the athletes; the parking tax is likewise collected from customers and remitted to the City.
It is fairer to state that the team is paying the payroll tax and the business privilege tax, the latter being reduced under the state’s reform package.
“When all of these taxes and fees are taken into account, we believe we are one of the highest taxed sports franchises in the country”. Other local firms in the private sector ought to be furious, especially since many of them are paying taxes on payroll, business privilege, as well as property taxes to the City, County, and school district. The sports teams got a nice subsidy when regional and state leaders, in their zeal to keep the teams here, opted to place ownership of the venues under the tax-exempt status of the Sports and Exhibition Authority.
The Steelers should recognize that favorable treatment and be grateful rather than reacting with bogus claims of tax payments.
But look a bit closer and it is clear that the Steelers as an organization aren’t really paying a lot of the taxes they include in their count. The amusement tax is collected from patrons when they purchase tickets; the non-resident usage fee is paid by the athletes; the parking tax is likewise collected from customers and remitted to the City.
It is fairer to state that the team is paying the payroll tax and the business privilege tax, the latter being reduced under the state’s reform package.
“When all of these taxes and fees are taken into account, we believe we are one of the highest taxed sports franchises in the country”. Other local firms in the private sector ought to be furious, especially since many of them are paying taxes on payroll, business privilege, as well as property taxes to the City, County, and school district. The sports teams got a nice subsidy when regional and state leaders, in their zeal to keep the teams here, opted to place ownership of the venues under the tax-exempt status of the Sports and Exhibition Authority.
The Steelers should recognize that favorable treatment and be grateful rather than reacting with bogus claims of tax payments.
