Americans For Prosperity
FOR IMMEDIATE RELEASE
June 30, 2008
AFP AZ calls '08 Session “worst in memory”
PHOENIX—The Arizona chapter of Americans for Prosperity (AFP Arizona) said today that the Legislative Session that ended Friday was the “worst in memory” for fiscal conservatives.
"This is a $10.9 billion budget masquerading as a $9.9 billion budget," said AFP Arizona director Tom Jenney. "And it comes at a time when general fund revenues are about $9.1 billion." Because the budget uses debt and accounting gimmicks to push spending commitments off the books, the Legislature and Governor in January will face a cash deficit carry-forward of over a billion dollars, something Jenney said is unconstitutional. Combined with the impact of automatic voter-mandated spending increases, the deficit in January could be more than $1.5 billion.
"This Legislative Session was a near-total disaster for fiscal conservatives," said AFP Arizona chairman Chad Kirkpatrick, citing the failure to pass measures that would permanently repeal the state equalization property tax rate. That failure leaves open the possibility that Arizona politicians will attempt to impose a $250 million property tax increase on homeowners and businesses next year.
AFP Arizona also condemned other measures adopted last week by the Governor and majorities of legislators, including a scheme to finance a billion dollars in new debt for university capital projects by expanding the Arizona lottery, and a scheme to grant the special privileges of issuing tax-free bonds and levying taxes to the developer of a rock and roll theme park in Eloy.
The group did cite several small victories, such as blocking the passage of special tax breaks for solar companies and for an entertainment district in downtown Phoenix, and preventing the creation of a new taxing district for baseball stadiums in Pima County. Also, fiscal conservatives in the Legislature prevented the referral of a transportation sales tax to the November ballot, forcing the TIME Coalition to raise private funds for its ballot initiative.
Here is the Senate vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.sthird.1.asp
Here is the House vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.hfinal.1.asp
Here is the House vote on HCR2072 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hcr2072.hthird.1.asp
Here is the Senate vote on HB2220 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2220.sthird.1.asp
Here is the Senate vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sfinal.1.asp
Here is the House vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1450.hthird.1.asp
Here is the House vote on SB1084 (a “Y” indicates a vote in favor of giving taxing authority to baseball stadiums in Pima County):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1084.hthird.1.asp
Contact: Tom Jenney, Arizona state director, Americans for Prosperity
tjenney@afphq.org (602) 478-0146
Showing posts with label Decades Theme Park. Show all posts
Showing posts with label Decades Theme Park. Show all posts
Monday, June 30, 2008
Tuesday, June 24, 2008
Theme Park Measure Could Take State for a Ride
UPDATE: This measure passed out of the Senate, despite being poor policy, and is now headed to the Governor.
By Byron Schlomach, Commentary
In the Mel Brooks play, “The Producers,” a planned swindle would only succeed if a joke of a Broadway play was a monumental flop. The play, “Springtime for Hitler,” ended up being a success against all reason. Right now the Arizona Legislature is planning a similar heist: the Decades Music Theme Park.
The Legislature has proposed a law to create a “special attraction district” in Eloy that would only include the Decades park and give it quasi-governmental status. Why is this proposed law a scam? In essence, the law is designed to subsidize private companies that cannot raise the money or otherwise get financing without special government treatment. In this case, the special privilege is the ability to issue government bonds. The bill now being considered would allow the owners of Decades to issue $750 million in government bonds.
People who buy government bonds accept less interest than they would otherwise for two reasons. First, they don’t have to pay federal income tax on the interest earned. Second, government bonds are backed by the ability of a government entity to tax its citizens, so they are generally safe investments.
In the case of the proposed theme park, the bonds will be financed by sales taxes paid only by park visitors. That means these bonds are really every bit as speculative as corporate bonds, because they are entirely dependent on the ability of a company to attract customers.
There are very likely to be good-faith buyers of these special attraction district bonds who will have every reason to think the bonds are as safe as school district bonds.
Then, if the park doesn’t work out and goes out of business, widows, retirees and institutional investors could find their government-grade bonds worth pennies on the dollar at best. If this unfortunate scenario were to happen, disappointed investors would likely sue those responsible, including the state of Arizona. Even if there’s no lawsuit, Arizona’s bond ratings will suffer if the park goes belly-up. Future bond buyers, with no idea if they’re really buying speculative corporate bonds or genuine government bonds, might avoid buying Arizona bonds all together.
Not only could Arizonans lose financially if policymakers ultimately approve this highly speculative project, we could lose in other ways. The private sector sets a pretty high bar for potential enterprises to pass in order to get funding. That doesn’t mean there is always success when enterprises are privately funded, but it does mean the winners often win big. Who knows what kind of big winner this government-backed project might prevent from opening.
If a theme park comes to Arizona, it needs to stand on its own financial feet. The test any such proposal passes should come from the private sector school of hard work, not the political school of smooth talk.
Byron Schlomach is director of the Goldwater Institute Center for Economic Prosperity
By Byron Schlomach, Commentary
In the Mel Brooks play, “The Producers,” a planned swindle would only succeed if a joke of a Broadway play was a monumental flop. The play, “Springtime for Hitler,” ended up being a success against all reason. Right now the Arizona Legislature is planning a similar heist: the Decades Music Theme Park.
The Legislature has proposed a law to create a “special attraction district” in Eloy that would only include the Decades park and give it quasi-governmental status. Why is this proposed law a scam? In essence, the law is designed to subsidize private companies that cannot raise the money or otherwise get financing without special government treatment. In this case, the special privilege is the ability to issue government bonds. The bill now being considered would allow the owners of Decades to issue $750 million in government bonds.
People who buy government bonds accept less interest than they would otherwise for two reasons. First, they don’t have to pay federal income tax on the interest earned. Second, government bonds are backed by the ability of a government entity to tax its citizens, so they are generally safe investments.
In the case of the proposed theme park, the bonds will be financed by sales taxes paid only by park visitors. That means these bonds are really every bit as speculative as corporate bonds, because they are entirely dependent on the ability of a company to attract customers.
There are very likely to be good-faith buyers of these special attraction district bonds who will have every reason to think the bonds are as safe as school district bonds.
Then, if the park doesn’t work out and goes out of business, widows, retirees and institutional investors could find their government-grade bonds worth pennies on the dollar at best. If this unfortunate scenario were to happen, disappointed investors would likely sue those responsible, including the state of Arizona. Even if there’s no lawsuit, Arizona’s bond ratings will suffer if the park goes belly-up. Future bond buyers, with no idea if they’re really buying speculative corporate bonds or genuine government bonds, might avoid buying Arizona bonds all together.
Not only could Arizonans lose financially if policymakers ultimately approve this highly speculative project, we could lose in other ways. The private sector sets a pretty high bar for potential enterprises to pass in order to get funding. That doesn’t mean there is always success when enterprises are privately funded, but it does mean the winners often win big. Who knows what kind of big winner this government-backed project might prevent from opening.
If a theme park comes to Arizona, it needs to stand on its own financial feet. The test any such proposal passes should come from the private sector school of hard work, not the political school of smooth talk.
Byron Schlomach is director of the Goldwater Institute Center for Economic Prosperity
Friday, June 20, 2008
Big Boondoggle Bill of 2008
Dear Arizona Taxpayer:
As I wrote yesterday, the Arizona Senate is considering SB1450, a bill that would award a private company the privilege of issuing $750 million in tax-free bonds, so that it can build a rock music theme park in Eloy.
Proponents of SB1450 have contacted me, arguing that the bill's language removes any legal obligation for taxpayers to bail out the theme park district in the event that it cannot attract enough visitors to pay back the bond creditors.
That appears to be true about the legal obligation, but the legislation does not remove the political obligation to bail out the theme park district. If the Eloy theme park turns out to be a flop, future legislatures will be under intense pressure to bail out the theme park. If they do not, the failure of the district to pay back creditors will hurt Arizona's bond ratings, effectively raising the interest rates for revenue bonds for traditional public-private partnerships, such as road construction projects.
Again, the economic downsides of the Decades Theme Park deal are not nearly as important as the question of principle at stake: Should the government give special taxing privileges to chosen companies? Again, the answer to that question is, "NO." The government should not be in the business of picking winners and losers in the economy.
Further, if we let the Eloy deal pass, it will only encourage the rest of the sharks, who are already pestering the Legislature to pass the Big Boondoggle Bill of 2008, which includes special tax breaks for entertainment districts, ballparks, and other politically-favored industries, all in the name of "economic stimulus." Remember that every dollar given to a favored industry in a tax credit is a dollar that cannot be cut from the taxes of ordinary individuals, families, and businesses. Somehow, that does not seem very stimulating...
For emerging details on the Big Boondoggle Bill of 2008, see this story in the Republic:
http://www.azcentral.com/news/articles/2008/06/18/20080618stimulus0618.html
The tax credit handouts in the Big Boondoggle Bill of 2008 make the Eloy deal look almost innocent. It seems that our politicians just can't break the habit of picking winners and losers in the Arizona economy-no matter how many losers they pick. We will keep you posted on developments related to the Big Boondoggle Bill.
For Liberty,
Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
http://www.aztaxpayers.org/
tjenney@afphq.org
As I wrote yesterday, the Arizona Senate is considering SB1450, a bill that would award a private company the privilege of issuing $750 million in tax-free bonds, so that it can build a rock music theme park in Eloy.
Proponents of SB1450 have contacted me, arguing that the bill's language removes any legal obligation for taxpayers to bail out the theme park district in the event that it cannot attract enough visitors to pay back the bond creditors.
That appears to be true about the legal obligation, but the legislation does not remove the political obligation to bail out the theme park district. If the Eloy theme park turns out to be a flop, future legislatures will be under intense pressure to bail out the theme park. If they do not, the failure of the district to pay back creditors will hurt Arizona's bond ratings, effectively raising the interest rates for revenue bonds for traditional public-private partnerships, such as road construction projects.
Again, the economic downsides of the Decades Theme Park deal are not nearly as important as the question of principle at stake: Should the government give special taxing privileges to chosen companies? Again, the answer to that question is, "NO." The government should not be in the business of picking winners and losers in the economy.
Further, if we let the Eloy deal pass, it will only encourage the rest of the sharks, who are already pestering the Legislature to pass the Big Boondoggle Bill of 2008, which includes special tax breaks for entertainment districts, ballparks, and other politically-favored industries, all in the name of "economic stimulus." Remember that every dollar given to a favored industry in a tax credit is a dollar that cannot be cut from the taxes of ordinary individuals, families, and businesses. Somehow, that does not seem very stimulating...
For emerging details on the Big Boondoggle Bill of 2008, see this story in the Republic:
http://www.azcentral.com/news/articles/2008/06/18/20080618stimulus0618.html
The tax credit handouts in the Big Boondoggle Bill of 2008 make the Eloy deal look almost innocent. It seems that our politicians just can't break the habit of picking winners and losers in the Arizona economy-no matter how many losers they pick. We will keep you posted on developments related to the Big Boondoggle Bill.
For Liberty,
Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
http://www.aztaxpayers.org/
tjenney@afphq.org
Tuesday, June 17, 2008
A Message from Arizona Federation of Taxpayers
Dear Arizona Taxpayer:
Right now, members of the Arizona Senate are considering whether or not to award a private company the privilege of issuing $750 million in tax-free bonds, so that it can build a rock music theme park in Eloy.
If the project turns out to be a flop, and if tourists fail to come to Eloy in sufficient numbers, the state could have to pay back creditors, or it could jeopardize its bond rating, making it more expensive in the future to borrow money for traditional projects, such as road construction.
But the economic downsides of the Decades Theme Park deal are not nearly as important as the question of principle at stake: whether or not the government should not be handing out special privileges to chosen companies. The answer to that question is clearly, “NO.” The government should not be in the business of picking winners and losers in business.
PLEASE CONTACT YOUR STATE SENATOR, AND ENCOURAGE HIM OR HER TO OPPOSE THIS BILL. WE ARE ESPECIALLY CONCERNED ABOUT ANY SENATOR WHO VOTED YES (“Y”) ON THE EARLIER VERSION OF THE BILL:
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sthird.1.asp
In response to a query from the Senate, AFP Arizona hereby announces that the bill, SB1450, will be included in our 2008 Legislative Scorecard. Given the potential yearly fiscal impact, and the importance of the principle at stake, the bill will be a 50-point bill. In last year’s scorecard, that would have been just under 5 percent of the total, but there are fewer bills this year, so SB1450 could weigh as much as 10 percent of the overall score.
For more information about why SB1450 is a bad bill, see the pieces from the Goldwater Institute and the AZ Free Enterprise Club (pasted below).
For Liberty,
Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
www.aztaxpayers.org
tjenney@afphq.org
(602) 478-0146
Springtime for Decades: Eloy theme park bill bad for Arizona
By Byron Schlomach, Ph.D., director of the Goldwater Institute Center for Economic Prosperity.
In the Mel Brooks play, The Producers, a planned swindle would only succeed if a joke of a Broadway play was a monumental flop. The play, Springtime for Hitler, ended up being a success against all reason. Right now the Arizona legislature is planning a similar heist: the Decades Music Theme Park.
The Arizona legislature has proposed a law to create a “special attraction district” in Eloy that would only include the Decades park and give it quasi-governmental status. Why is this proposed law a scam? In essence, the law is designed to subsidize private companies that cannot raise the money or otherwise get financing without special government treatment. In this case, the special privilege is the ability to issue government bonds. The bill now being considered would allow the owners of Decades to issue $750 million in government bonds.
People who buy government bonds accept less interest than they would otherwise for two reasons. First, they don’t have to pay federal income tax on the interest earned. Second, government bonds are backed by the ability of a government entity to tax its citizens, so they are generally safe investments.
In the case of the proposed theme park, the bonds will be financed by sales taxes paid only by park visitors. That means these bonds are really every bit as speculative as corporate bonds, because they are entirely dependent on the ability of a company to attract customers.
There are very likely to be good-faith buyers of these special attraction district bonds who will have every reason to think the bonds are as safe as school district bonds. Then, if the park doesn’t work out and goes out of business, widows, retirees, and institutional investors could find their government-grade bonds worth pennies on the dollar at best. If this unfortunate scenario were to happen, disappointed investors would likely sue those responsible, including the State of Arizona.
Even if there’s no lawsuit, Arizona’s bond ratings will suffer if the park goes belly-up. Future bond buyers, with no idea if they’re really buying speculative corporate bonds or genuine government bonds, might avoid buying Arizona bonds all together.
Not only could Arizonans lose financially if policymakers ultimately approve this highly speculative project, we could lose in other ways. The private sector sets a pretty high bar for potential enterprises to pass in order to get funding. That doesn’t mean there is always success when enterprises are privately funded, but it does mean the winners often win big. Who knows what kind of big winner this government-backed project might prevent from opening.
If a theme park comes to Arizona, it needs to stand on its own financial feet. The test any such proposal passes should come from the private sector school of hard work, not the political school of smooth talking.
Decades Music Theme Park Bill Strikes the Wrong Chord~
exempting income and property taxes is corporate and investor welfare
Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today announced its opposition to SB1450, the Regional Attraction District, otherwise known as the Decades Music Theme Park. The legislation exempts for-profit companies within the district from paying income and property taxes.
During testimony on the bill in Senate Commerce, proponents claimed that without this legislation, the area in Eloy where the park is proposed would not be an internationally recognized music theme park. Proponents of the bill also stated that some of the private investment was contingent on the bill.
“What gets built in Eloy should not be determined by legislating corporate subsidies being pushed by those who stand to benefit financially,” said Steve Voeller, president of the Club. “When corporate welfare is needed so that the private investment pays off, you could say the role of government has been exceeded.”
The legislation exempts businesses who locate with the district from paying property or income taxes. The park’s supporters claim that because they are required to raise $100 million in private investment before the bonds can be issued, the state’s investment is a sound one.
“If building a music theme park in Eloy makes economic sense, so much so that the first $100 million can be raised privately, then the project should be financed like other large projects and the owners should pay taxes like everybody else.”
Right now, members of the Arizona Senate are considering whether or not to award a private company the privilege of issuing $750 million in tax-free bonds, so that it can build a rock music theme park in Eloy.
If the project turns out to be a flop, and if tourists fail to come to Eloy in sufficient numbers, the state could have to pay back creditors, or it could jeopardize its bond rating, making it more expensive in the future to borrow money for traditional projects, such as road construction.
But the economic downsides of the Decades Theme Park deal are not nearly as important as the question of principle at stake: whether or not the government should not be handing out special privileges to chosen companies. The answer to that question is clearly, “NO.” The government should not be in the business of picking winners and losers in business.
PLEASE CONTACT YOUR STATE SENATOR, AND ENCOURAGE HIM OR HER TO OPPOSE THIS BILL. WE ARE ESPECIALLY CONCERNED ABOUT ANY SENATOR WHO VOTED YES (“Y”) ON THE EARLIER VERSION OF THE BILL:
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sthird.1.asp
In response to a query from the Senate, AFP Arizona hereby announces that the bill, SB1450, will be included in our 2008 Legislative Scorecard. Given the potential yearly fiscal impact, and the importance of the principle at stake, the bill will be a 50-point bill. In last year’s scorecard, that would have been just under 5 percent of the total, but there are fewer bills this year, so SB1450 could weigh as much as 10 percent of the overall score.
For more information about why SB1450 is a bad bill, see the pieces from the Goldwater Institute and the AZ Free Enterprise Club (pasted below).
For Liberty,
Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
www.aztaxpayers.org
tjenney@afphq.org
(602) 478-0146
Springtime for Decades: Eloy theme park bill bad for Arizona
By Byron Schlomach, Ph.D., director of the Goldwater Institute Center for Economic Prosperity.
In the Mel Brooks play, The Producers, a planned swindle would only succeed if a joke of a Broadway play was a monumental flop. The play, Springtime for Hitler, ended up being a success against all reason. Right now the Arizona legislature is planning a similar heist: the Decades Music Theme Park.
The Arizona legislature has proposed a law to create a “special attraction district” in Eloy that would only include the Decades park and give it quasi-governmental status. Why is this proposed law a scam? In essence, the law is designed to subsidize private companies that cannot raise the money or otherwise get financing without special government treatment. In this case, the special privilege is the ability to issue government bonds. The bill now being considered would allow the owners of Decades to issue $750 million in government bonds.
People who buy government bonds accept less interest than they would otherwise for two reasons. First, they don’t have to pay federal income tax on the interest earned. Second, government bonds are backed by the ability of a government entity to tax its citizens, so they are generally safe investments.
In the case of the proposed theme park, the bonds will be financed by sales taxes paid only by park visitors. That means these bonds are really every bit as speculative as corporate bonds, because they are entirely dependent on the ability of a company to attract customers.
There are very likely to be good-faith buyers of these special attraction district bonds who will have every reason to think the bonds are as safe as school district bonds. Then, if the park doesn’t work out and goes out of business, widows, retirees, and institutional investors could find their government-grade bonds worth pennies on the dollar at best. If this unfortunate scenario were to happen, disappointed investors would likely sue those responsible, including the State of Arizona.
Even if there’s no lawsuit, Arizona’s bond ratings will suffer if the park goes belly-up. Future bond buyers, with no idea if they’re really buying speculative corporate bonds or genuine government bonds, might avoid buying Arizona bonds all together.
Not only could Arizonans lose financially if policymakers ultimately approve this highly speculative project, we could lose in other ways. The private sector sets a pretty high bar for potential enterprises to pass in order to get funding. That doesn’t mean there is always success when enterprises are privately funded, but it does mean the winners often win big. Who knows what kind of big winner this government-backed project might prevent from opening.
If a theme park comes to Arizona, it needs to stand on its own financial feet. The test any such proposal passes should come from the private sector school of hard work, not the political school of smooth talking.
Decades Music Theme Park Bill Strikes the Wrong Chord~
exempting income and property taxes is corporate and investor welfare
Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today announced its opposition to SB1450, the Regional Attraction District, otherwise known as the Decades Music Theme Park. The legislation exempts for-profit companies within the district from paying income and property taxes.
During testimony on the bill in Senate Commerce, proponents claimed that without this legislation, the area in Eloy where the park is proposed would not be an internationally recognized music theme park. Proponents of the bill also stated that some of the private investment was contingent on the bill.
“What gets built in Eloy should not be determined by legislating corporate subsidies being pushed by those who stand to benefit financially,” said Steve Voeller, president of the Club. “When corporate welfare is needed so that the private investment pays off, you could say the role of government has been exceeded.”
The legislation exempts businesses who locate with the district from paying property or income taxes. The park’s supporters claim that because they are required to raise $100 million in private investment before the bonds can be issued, the state’s investment is a sound one.
“If building a music theme park in Eloy makes economic sense, so much so that the first $100 million can be raised privately, then the project should be financed like other large projects and the owners should pay taxes like everybody else.”
Monday, May 26, 2008
Legislators Need Fix for Budget Crisis
PHOENIX (AP) - Four months after starting their 2008 regular session back in January, Arizona legislators will return from the holiday weekend with plenty of work still on their plate.
Topping the to-do list: a new state budget, one that somehow erases $2 billion in red ink projected for what could be a $10 billion spending plan for the 2008-09 fiscal year that begins July 1.
Other topics awaiting action include meaty proposals on guest workers, child protection, gay marriage, drunken driving and a proposed rock 'n' roll theme park.
Topping the to-do list: a new state budget, one that somehow erases $2 billion in red ink projected for what could be a $10 billion spending plan for the 2008-09 fiscal year that begins July 1.
Other topics awaiting action include meaty proposals on guest workers, child protection, gay marriage, drunken driving and a proposed rock 'n' roll theme park.
Wednesday, April 30, 2008
SB 1450 Decades Theme Park Bill
It is will great saddness that I report the passage today of SB 1450 in the House of Representatives. The bill, which grants taxing authority to private enterprise, goes back to the Senate so perhaps we have another chance to stop this bad bill still.
Tuesday, April 29, 2008
THE FISCAL NOTE
An Examination of Tax and Fiscal Matters
By the Arizona Free Enterprise Club
Theme Park Legislation is Off Key
By the Arizona Free Enterprise Club
Theme Park Legislation is Off Key
Senate Bill 1450 (Theme Park bill) is poor tax policy. One of the principles of sound tax policy is neutrality. Whenever possible, the tax code should be agnostic toward whatever business activity is taking place. The tax code should not micromanage the economy and should interfere as little as possible in the decisions being made in the marketplace. Private enterprise should be left to succeed or fail based on the merits of the product or service being sold, the quality of the business plan, and the execution of the plan. A private company’s ultimate success or failure should not hinge on preferential tax treatment.
On December 2, 2007, The Arizona Republic made the following additional points:
• Attendance: Decade's projections are extremely optimistic, with 6 million visitors in the first year. Only six U.S. theme parks, all in Florida, reached that level in 2006. "Nobody gets 6 million visitors their first year," says Dennis Speigel, president of International Theme Park Services.
• Market: The theme-park industry is mature, with little growth in attendance outside the Disney parks. Hard Rock Park, a similar project, is opening in Myrtle Beach, S.C., next spring. It should give an indication of whether a rock-themed park will draw crowds. Decades supporters are assuming that the $400 million S.C. park would be a complement, whetting people's appetite for a larger attraction in the West, and not a competitive threat. Meanwhile, there's competition from theme parks next door. "You've got the entire developed Southern California market just a few hours away, which markets aggressively," says Robert Niles, editor of the Theme Park Insider Web site.
Supporters point out that the new tax wouldn't replace the regular sales tax but be on top of it. They say taxpayers wouldn't be on the hook for repaying the bonds. But Kevin McCarthy of the Arizona Tax Research Association sees a risk if Decades flounders. "When bonds go bad," he says, "it reflects poorly on everyone that's involved." There could be pressure for a bailout.
McCarthy also testified in Ways and Means that the legislation is likely unconstitutional because it exempts certain taxpayers from paying property taxes.
Lawmakers continue to raise valid concerns about this bill and are on solid footing as they do.
###
The Arizona Free Enterprise Club is a 501(c)(4) non-profit organization whose mission is to advance policies that promote a strong and vibrant Arizona economy. The Club believes that entrepreneurs and private enterprise are the principle drivers of our economy. The Club lobbies Arizona lawmakers in support of policies that allow the market to flourish and vigorously opposes policies that hinder private industry. Visit us at www.azfec.org.
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