ECONOMY:

Lawmaker aims to revoke tax breaks for golf courses

Friday, Oct. 31, 2008 | 1:55 p.m.

Archive of Sun politics stories

CARSON CITY – A Las Vegas assemblyman has proposed a bill that would end tax breaks for golf courses.

“We can’t afford books for children, but we can give people who play golf a break,” Assemblyman Tick Segerblom, D-Las Vegas, said of state budget cuts that have hit education.

Also, Assemblyman Harvey Munford, D-Las Vegas, plans to introduce a bill calling for a “Homeowners Bill of Rights” similar to the one vetoed by Gov. Jim Gibbons in 2007. The proposals are among the nearly 650 bills being prepared for introduction at the 2009 Legislature to start in February.

The 2005 Legislature, at the request of the Nevada Chapter of the National Golf Course Owners Association, agreed to classify golf courses as open space, which is taxed at a lower rate. The association argued the industry was a big part of the tourist program and it faced intense competition from other states such as Arizona and Florida that give tax breaks to golf courses.

The bill was introduced in the Senate but then the golf course tax advantage was added by the Assembly Growth and Infrastructure Committee. It passed the Assembly 40-1 with only Assemblywoman Sheila Leslie, D-Reno, opposing. The amended version cleared the Senate without opposition.

Segerblom said he became aware of the tax break when the Las Vegas National Golf Course in Las Vegas proposed building homes that would “ruin the neighborhood.” The golf course “pays virtually no taxes,” said Segerblom.

National Golf Course paid $4,000 and if the exemption were abolished, the tax bill would be $300,000, he said.

There are 58 golf courses in the Las Vegas area, said Segerblom and ending the open spaces exemption would mean $15 million more in taxes.

Ted Tylman, executive director of the golf course owners association, could not be reached for comment.

Bob Ostrovsky, who had lobbied in 2005 for the association bill, said he was sure the golf course owners would oppose the bill.

The tax break “has been good for the industry,’’ said Ostrovsky, how is no longer connected with the association.

Munford’s proposed “Homeowners Bill of Rights” is intended to protect members of homeowners associations from unfair assessments.

The 2007 bill, sponsored primarily by Assemblyman William Horne, D-Las Vegas, would have imposed ethical standards for members of the executive board; the board could not restrict motorcycles in the community; the community would be prohibited from using radar guns as the basis to levy a fine and the homeowner must be informed of any restrictions on renting or leasing.

The Assembly passed the bill unanimously and there were only two dissenting votes in the Senate – Senate Minority Dina Titus and Sen. Terry Care, both Las Vegas Democrats.

Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com.

Discussion: 7 comments so far…

By dnegri

10/31/08 at 3:20 p.m.

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Interesting. This is one of the "tax break scams" that David Caye Johnston explains and denounces in his great book, "Free Lunch". But since golf and white males go hand in hand, I'm not optimistic. And, of course, the stupid Republicans will claim it's a 'tax hike".
By jfnance32

10/31/08 at 3:59 p.m.

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Raise taxes on golf courses....we do not need those pesky tourists and those pesky private jobs.
By nowoolinmyeyes

10/31/08 at 5:44 p.m.

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dnegri -- you were right on the money. It took nance a mere 39 minutes to mischaracterize it as a tax raise. I guess he thinks we need kids without schoolbooks and decent teachers, citizens suffering from disease epidemics, dirty air and water, crowded roads, and too few and too poorly paid public servants to do an adequate job. Sure, Nevada ranks at or near the bottom in one category after another, but nance doesn't want the upper middle class and wealthy fellows to worry about that. They wouldn't want to carry their share of the tax burden, even when they are paying for their entertainment. They often, like nance, want to be nothing more than freeloaders. He is a consistent apologist for their selfcenteredness and cares little if at all about our state.
By The_Onion

10/31/08 at 7:48 p.m.

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Nance-

If golf courses got this exemption, then wouldn't the argument be about tax evasion, not tax increases? If you subscribe to this "incentive", then why do you oppose incentives for renewable energy and efficiency?

Also, if golf courses are open space, then shouldn't me and my family be able to go picnic on them, say the 15th fairway with a nice view of the mountains?

Does anyone know how much water we waste annually on these courses? How many jobs would be lost if these course owners had to pay taxes? (My guess is 0) How many of the courses are owned by out of state businesses? How much profit would these guys lose? (My guess, not enough to make them shut down)

What would shut them down? Supply and demand. Fewer people paying green fees and fewer tourists coming to Las Vegas might ultimately cost us a few courses. If we lose a few out of 58, well, I think all of those golfers that are still golfing would find a way to golf here, don't you think?

I think it is always important to look at the whole picture, don't you think Nance?
By ths

11/1/08 at 2:35 p.m.

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I agree that golf courses need to pay their fair tax.

Now I would worry about more restrictions regarding HOA's and how they can enforce private streets. I say this because of this recent event at the following link. If the police can't enforce things then someone has to.
http://www.heraldextra.com/content/view/...

Also many other things would cause an increase for the majority of the homeowners as they expect the HOA which is all residents to pay for someone to sue them. Why should the majority pay for the minority to create havic with lawsuits. That is why the Governor Veto the bill, because it was a bad bill.
By jfnance32

11/1/08 at 3:45 p.m.

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It will increase the cost of running a golf course and probably increase the cost of playing golf.

Golf cost is a factor in attracting tourists to Las Vegas.

Despite what you may think there is a market reaction to every economic action the government takes.

Will it be a big factor? Probably not, but it will probably cause some tourists not return to Vegas.
By rubic123

6/29/09 at 3:11 a.m.

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