Et Tu, Carowinds?
Taxpayers Taken for Yet Another Ride.
I have often joked that with all the uptown-centric political promotion that Charlotte is famous for, it would only be a matter of time before business leaders tried to find a way to get taxpayers to pay to move the Carowinds amusement park uptown. You know, because clearly if a business doesn’t reside within or adjacent to the I-277 loop, it just can’t possibly be a viable enterprise.
In the case of Carowinds, I thought we could maybe get creative. How about using roller coasters as a substitute for the blue line extension? Combining entertainment with transportation would certainly set Charlotte apart.
Ya, I digress, but while thankfully we’re not talking about moving the park uptown, the tax incentive train is once again pulling into the station.
Carowinds, a thriving and successful member of the Cedar Fair Entertainment conglomerate of amusement parks, recently announced plans to expand the park with a $50 million addition. The park bought 61 acres of vacant land next to the existing 337 acres the park occupies. This was an exciting development, not only because I love amusement parks and figured bigger is always better, but the jobs it would bring would be good for the economy.
Of course, no good thing can go untainted.
Despite the current economic success of Cedar Parks (net income of $101.9 million in 2012, up from $65.3 million in 2011 according to their annual report) and the virtual impossibility of threatening to leave the Charlotte region, both the Charlotte City Council and the Mecklenburg County Commission will be voting on property tax rebates for the company to the tune of $330,000 and $600,000 respectively at this weeks meetings of both bodies.
The City Council apparently gave tentative approval for the incentives behind a closed door meeting on June 24. The open meeting votes must now take place, but what a shame the public is only now being made aware of this. This was clearly planned to prevent any opposition from surfacing. Of course, with this group of elected officials, it isn’t likely that the people would be listened to anyway.
I love the park. It was my first job and I worked there for three seasons. I met some of my best friends while there. But this, like all other giveaways, is just nonsensical.
This constant “economic development” behavior that amounts to nothing more than bribery is a black stain on our community.
I fully believe that the number and amount of incentive grants are directly proportional to how bad a city must be for business. If a grant is necessary to lure an out of town business or foster an entrepreneurial start-up, clearly the environment for business is generally poor. The “need” for these grants is a tacit admission of that.
So just remember, citizen, that while you are being saddled with tax increases from both the City and the County, our fair elected officials are giving yet another nearly million dollars of your money away to a profitable and successful business enterprise. Perhaps one that competes with your business for entertainment dollars.
Seriously, this is just pathetic.
Yes, it’s pathetic. But it’s also how the game is now played. Unfortunately, business and government have become a blurred line and it’s been happening for a long time. The only way to stop it is to amend the Constitution so no state or community is allowed to give business incentives, because they all do it. And the ones that don’t…lose.
I’m glad you agree in principle. I guess I’m just of the mindset that doing the right thing is always right. Using the actions of others to justify a stance I find very unprincipled. Everyone says they hate incentives, so perhaps all it will take is one brave locality to stand up and say no to get the others to follow. Idealistic? Of course. 🙂
That said, I wonder what Carowinds regular property tax bill is and what percentage tax decrease would be necessary in order to achieve the same savings as the incentive. I’m betting it would be a pretty small one. The blanket tax decrease would also be a benefit to the rest of the community. I just absolutely detest this government picking and choosing winners and losers.
I’m with you on the Constitutional amendment.
“The blanket tax decrease would also be a benefit to the rest of the community.” This is the dagger in Zon’s argument that we have to do it to compete.
A lower overall tax rate for businesses/citizens would create more jobs than taxing the crap out of people and giving big chunks of it to the well connected businesses/owners. Plus, it is fair and just. It works on all three levels. Who would have known?? (besides, astute business owners, libertarian minded, founding fathers, free market supporters, etc etc)
Tax decrease or cash payment incentive, what’s the difference? It’s still money the local government doesn’t have. And structured this way it’s paid for in large part by people not from here through tourism taxes. You call that a dagger?
Tax decrease benefits everyone. Incentive benefits a chosen few.
You’re right for a change: “It’s still money the local government doesn’t have.” It’s the taxpayers money. Government gets involved, becomes enamoured of itself and its ability to take by force and then begins to believe the money belongs to it. The bureaucrats become power happy, spending on projects like children in a sandbox and to them the the analogy is accurate: a bad decision costs them nothing, but it does cost the billpayers – the tax payers.
So give them nothing. If they don’t like it let them move. Or, as C says, give us all a tax cut. Let the bureaucrats eat cake.
Tax incentives to Carowinds? Will Carowinds move if we say no? Don’t answer that folks…
– Corporations (and unions) donating to political campaigns and PACs.
– Politicians donating to corporations (and unions).
– Revolving door alumni moving between govco and corporations (a la Goldman Sachs) and unions.
Outlaw all of these practices and they will still find a way to continue the relationship. Remember, if there is a market it will be served.
Christian – A tax decrease spread across the entire tax base will not provide the incentives Cedar is looking for in order to expand. I don’t know what their tax bill is, but their property tax, along with everyone else’s, would have to be cut by a significant percent in order to make it meaningful. And the city simply cannot afford that and still provide essential services. Besides, this money is not coming from property taxes. It’s coming from tourism taxes, the majority of which comes from visitors. Meaning Business is paying for a lot of it in the form of Hotel taxes when they bring in their employees to work locally. Your math simply does not add up.
Besides, I thought you lived outside Charlotte. If that’s the case, why would you care what Charlotte does with its money?
Property taxes not collected is indeed coming out of general revenue funds. If it’s being reimbursed by hotel / motel taxes, that is still revenue lost that *could* be used for other services.
The root of this though I find interesting. Liberals are so often concerned with issues of “fairness” and “making sure the rich pay their fair share”. I simply don’t understand defense of a position which benefits few at the expense of the many. It’s wrong. We don’t have priveleged royalty in this country, but incentives create a preferential class…an elite class. Equality under the law is important. Government should never give benefit to one that another does not have.
Zon- how do property tax refunds paid to Carowinds originate in tourism tax dollars? All of those “tourism” tax dollars you to which you refer, are already committed to the NASCAR HOF, convention center/timewarner arena etc. As a single working mom, I had to rent a u- haul to move. I the bill was $15.00 higher because I rented the truck in Meck County. thanks to the rental car tax or as you refer to it a tourism tax. Zon you said someone who lived outside of Charlotte should not care re the corporate welfare for Carowinds. Is not Meck County committing tax dollars to Carowinds along with Charlotte? Have you read the article Christian referred to Zon?
If, as you say, “I fully believe that the number and amount of incentive grants are directly proportional to how bad a city must be for business” then please tell us which “good for business” cities don’t offer incentives? I predict you can’t name one…
I don’t know that there are any cities/counties which don’t seek the benefits of business by paying for business to come there. I have heard one story of the state of Idaho doing so to some business years ago. The business moved there anyway. The politicians are just trying to do what they believe is the correct thing to do to enhance business.
If they would reduce regulations and simplify taxes they would accomplish the same end, but that would involve cutting government payrolls wouldn’t it?
Tell me folks if you were a local business losing or making money would you not put your hand out to our current city/county commission? If you can back their campaigns for office then its become very common for politicians to pay the big business folks back with incentives.
The biggest issue I see coming for local government is they simply dont know how to say NO. Who is going to be the first business that they say NO too? Its yet to be done to my knowledge. Its going to have to happen for revenue neutral to happen in the future.
As we leave the recession clearly this county has not learned to live within their means like the rest of us. The surrounding counties will continue to live off our resources as we will not say NO to any of them. We are going to be backed into a corner and be forced to approve casinos to make ends meet. The again I can think of no better use for a empty Nascar Hall of Fame than a revenue producing casino.
“Then again I can think of no better use for a empty Nascar Hall of Fame than a revenue producing casino.” Damn, why didn’t somebody think of that for Eastland Mall before they wasted our money twice? Bwaaaaaaaaaaaa Haaaa Haaaaa!!!
Sosa , A good idea , BUT I dont even think a Casino would make it on the eastside. We already have some illegal ones on South Blvd so lets keep it close to the downtown area. Then again when the trolley gets built out to eastland you can hit 2 casinos in one night. (Hoorah)
If they converted the Hall to a casino the future mayor Cannon could make more profits from his parking lots that he owns adjacent to the facility. Talk about keeping in the family nice and tight.
I’ve lived between Columbia and Charlotte my entire life and never once have I been to the park or care to go.
I see Carowinds, the NASCAR HOF, Knight’s Stadium, Panthers, Whitewater Center and the Bobcats/Arena as complete wastes of tax dollars.
Parks Helms calls them “quality of life” entities.
I have no problem those enterprises exist, just make them viable with your own money and from those who choose to use them.
Wiley, go back to your trailer and turn on American Idol. Stop at Burger King on the way and get 3 whoppers. Just because you don’t like to go out and do things (i.e. Carowinds, Nascar, baseball, Panthers, Biking, Hiking, Rafting….etc, etc), doesn’t mean the rest of us don’t. There’s a reason why you’ve lived between Columbian and Charlotte your entire life. I bet you complain about the drive time and traffic whenever you visit the “big city” of Charlotte, or Columbia.
Thank you for showing us your exceptional reading comprehension and spelling prowess….
..snickers.
Willy, so should we subsidize via tax dollars other recreational activities as well – say like public shooting ranges – just because a lot of people enjoying the shooting sports?
The point is, once you open that door you create a system where the government starts picking winners and losers. Now maybe the winners they pick reflect the will of the people and maybe not, but that’s irrelevant.
Subsidizing companies with tax dollars is like adding 2 gallons of water to your car’s 16 gallon gas tank that currently contains 14 gallons of gas; the gauge will read FULL (a good thing from all appearances in the short run), but because the fuel system is not designed to exist with such an unnatural additive – over some period of time, sooner or later – it will predictably and undeniably fail. Call it a distortion or a dilution, the end result is the same.
Capitalism (like the internal combustion engine) is not designed to operate with outside forces influencing the system. So you either accept predictable failure at some point, or you admit the true desire is to change the economic system.
Willy Loman? Left sales for a government job huh? Certainly pays more and youre home with Linda and the kids by 5.
Idle hands the devil’s advocate, thanks for the pranks.