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Founders' Note

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No new taxes!

The governor’s proposed levy on golf would do more harm than good for our cash-starved state.

BY ERIC MARSON AND ROB LYONPublished: February, 2009

In his rather astonishing public life, Arnold Schwarzenegger has faced down barbarian hordes, soul-devouring aliens and the truly evil and corrupt: California legislators and lobbyists.

But who would have thought that amid all the fictional and factual foes he’s battled over the years that the “Governator” would one day call out the California golf industry?

He may not be packing space-age weapons in this fight, but the Governor’s proposed sales tax extension for many California services — including green fees and other use of public golf courses — could deliver a fierce blow to an industry already in turmoil from the national economic downtown.

We realize that with the state of California facing an estimated $11 billion deficit, and with massive cuts in healthcare, education and maintenance of the state’s infrastructure being considered, that the plights of golf courses and the people who use them, aren’t very high on the state’s priority list.

But we also believe that a proposed sales tax — which would range from 7.25 cents to more than 10 cents depending on a county’s existing sales tax rate — would result in more harm to the game’s present and future than good for the state’s ravaged economy.

The problem isn’t the impact a golf tax would have on the well-to-do golfers who have no problem dropping $100 to play the state’s high-end public courses — what’s an extra 10-spot to people with enough disposable income anyway?

No, the brunt of any green fee surcharge would be borne by that group of golfers who comprise the vast bulk of California golfers: those who play on less expensive, municipal courses. These are the seniors on fixed incomes, junior golfers, and hard-working men and women who are being affected the most by the current recession. To them, even coming up with $30 to play the local muni course is a stretch.

But golfers aren’t the only ones  who will be affected by the proposed tax. According to a study quoted by the organizers of the website forecalifornia.com, the golf industry injected $6.9 billion into the state’s coffers in 2006, and employed more than 160,000 people across California. Golf brings tourists to the state, and that helps generate income for the hotel, restaurant and service industries.

Fewer people playing golf means fewer people staying at golf resorts, dining in local restaurants and buying equipment.
Not only golf-oriented businesses would be affected by a golf tax. City and county-owned golf courses generate huge revenue for their owners. That money is used to help fund city park programs — the less money coming into the city, the more facilities that are used by all citizens will be affected.

Forecalifornia.com is supported by the California Golf Alliance, a forum and vehicle for businesses, individuals and organizations that believe a green fee surcharge may do more long-term harm for the game of golf, and the state budget, than short-term good.

Organizations devoted to growing the game, such as the Southern California PGA, the SCGA and the Public Links Golf Association of Southern California, are part of the coalition.

Consider Southland Golf magazine on board as well.

ALSO SEE: SCGA and others to rally against Governor's proposed golf tax