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Mar 11, 2008 10:06 AM | last updated Mar 11, 2008 10:09 AM
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Not just the Sonics want those stadium taxes

By David Brewster

The showdown in Olympia over the Sonics is much more than a shoving match between Speaker Frank Chopp, a populist who likes to defy bailouts for sports owners, and the Seattle establishment, which wants the team to buttress Seattle Center and tourism interests and for reasons of civic pride. A bigger issue is the years-long clamoring for a taxing source that might get away.

Those are the so-called "stadium taxes," a mixture of taxes on car rentals, restaurants and bars, hotel rooms, and local sales tax. The money is all generated locally in King County, but instead of going into the Olympia general fund, it gets rebated back to pay off construction of Safeco Field and Qwest Field. And they are supposed to expire as the stadiums are paid off in the next decade.

Expire? In a state with no income tax and Tim Eyman attacking other taxes like license tabs, "expire" is a dirty word. So instead we've had years of backstage maneuvering to direct those expiring taxes to pet projects in King County. Many are lined up, which is one main reason why the politicians in Olympia are reluctant to have the Sonics "jump the queue," thus angering many of the more patient supplicants.

Gov. Gregoire's letter to Mayor Greg Nickels and others, counseling a year of study and prioritizing, lays out many of the interests in the queue: "arts, low-income housing, education, youth sports, community and economic development, Puget Sound cleanup, Husky Stadium renovation, and [Seattle Center] projects."

Note that bit about Husky Stadium, whose advocates also attempted to jump the line earlier in the session (to no avail, apparently). The housing portion is seemingly aimed at housing for the homeless, a priority of Speaker Chopp. A comprehensive package, with something for all these interests, is what the year-long "study" would try to assemble.

Arts? That would be the request, over many sessions, to commit a goodly portion of hotel-motel taxes to 4Culture, the King County organization that funds arts, culture, and heritage institutions and which would be at a loss in 2012, when lodging taxes for arts expires (it shifts from paying off the Kingdome debt to Qwest Field in 2013). A bill to fund 4Culture with lodging tax money after 2020, when Qwest Field has been paid off, passed the Senate, 44-5, but is held up by Speaker Chopp, and likely doomed for this session.

One more political wrinkle is that the politicians get to spend money without raising their own taxes, which makes these stadium taxes all the sweeter. For instance, King County might reasonably be expected to fund the arts, given all its kind words for the arts, but instead it passes through money from the state. Put another way, the stadium tax money is really levied on visitors, not locals.

This complicated bit of buck-passing has a downside, however, and that is the way it deals politicians at all levels, county, city, state, into the decision-making. Sure enough, King County Executive Ron Sims, through whom all these county-based taxes must pass, has broken ranks with the City and the Steve Ballmer group wanting to buy the Sonics, by siding with Gregoire's approach of thinking about all the issues for a year, thus "prioritizing and bundling several of the issues to provide the most comprehensive plan for our civic project funding needs."

Comments
Not JUST jumping the que... but the shark, too!
Report a violationPosted by: hacknflack on Mar 11, 2008 12:18 PM
Um... excuse me, but the intent of the Lodging tax was to fund the arts... It got yanked in to the stadium biz when we decided (by voting AGAINST it) to blow up a the Kingdome with 25 years left on the mortgage, and build a new stadium for the team owned by Paul Allen, at that point in time the 5th richest man on the planet.

The Arts were told to take a back seat... we have to retire the debt... you'll get the base, but anything over that pays for the Kingdome (RIP). to service paying off what is now rubble and foundation of Quest Field.

I think it is important to quote the web page:

What is the King County Lodging Tax for Culture?
The Lodging Tax for Culture was established by state law in 1987 when the state legislature set a cap on the tax revenues servicing construction bonds for the Kingdome. A portion of the tax revenues above $5.3 million per year were dedicated to arts and heritage programs through the year 2012, when the Kingdome debt was originally scheduled to be retired. Between 2001 and 2012 cultural programs receive 70% of the excess revenue above $5.3 million.

What does the Lodging Tax for Culture support?
4Culture provides funding for support of the visual and performing arts, heritage programs and historic preservation. Annual funding supports the activities of more than 200 arts and heritage organizations, hundreds of artists and heritage specialists, capital construction and fixed asset purchases, project support, and cultural education in public schools. The cultural benefits of this tax extend to all communities and residents of King County.

What has been the impact of this fund?
New arts facilities and local history museums in communities throughout King County;
Expanded opportunities for suburban and rural audiences to attend and participate in the arts;
A regional network of local arts agencies providing cultural programs for their local communities;
Education programs in all King County public school districts;
More than 200 arts and heritage organizations receiving annual support for programs;
$844 million in economic impact annually, including $300 million in "new money," spent by visitors;
7 million visitors to cultural events each year;

Can the Sonics claim the same? And if they cut in line, what funds are left for the original purpose of this fund. I don't have the answers... But I do think it needs to be clear who was suposed to get the money from this tax.
Clarification on Taxes Asked for By Sonics
Report a violationPosted by: cvandyk5@msn.com on Mar 11, 2008 12:36 PM
The Sonics are asking for the restaurant tax -- not necessarily paid for by visitors -- that funded a major portion of Safeco Field. The tax is being collected ahead of schedule--the Safeco Field bonds will pay off early, and the tax will cease when those bonds are paid--unless legislation provides for some other use. This particular tax was never earmarked for the arts or anything else. The Washington State Restaurant Association suggested this approach for the Sonics and KeyArena three sessions ago. That is why it has had - and continues to have - support in the legislature. The current proposal does not affect the date of expiration of the tax. None of the proposals put forth by Nick Licata or anybody else for use of the funds at KeyArena or Seattle Center called for an extension of the tax. The WRA has been insistent that the tax expire as and when originally scheduled--this demand has been set out clearly by the many thousands of restaurant owners throughout the County who do not benefit from restaurant business at Safeco Field and are members of the restaurant association. Otherwise, they have--through the association, and according to the association--agreed to this use, however inappropriate anyone else may deem it--or however anyone else may want it for their project.
Baby Jesus Tax
Report a violationPosted by: rasul on Mar 11, 2008 1:21 PM
I call this tax the "Baby Jesus Tax," because it taxes a bed, meal and the modern equivalent of a donkey to get around, on any out of town visitor.

If Mary and Joseph wanted to come to Seattle, they would be asked, make that demanded, to chip in a few bucks for the Sonics, M's, and Seahawks. Or just as bad, a bunch of crappy parasitic artists. The best art doesn't need subsidies, it sells like hotcakes. Did Whiney Houston ever ask for any subsidies?
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