I’ve explained this before. The city can only assess real estate taxes on an interest in real estate, like owning or having a lease. A lease is a taxable interest even though the underlying property (land and stadium) is not taxable because the city owns it.
So, to escape paying real estate taxes the team structures it’s occupancy as something other than a lease. Each of the concessions can be a concession contract to perform the service of selling food and drinks. That’s. Not an interest in real estate.
The team itself could have some other kind of contract, like the provision of AAA baseball and also a management services contract. Neither would be a taxable interest in real estate.
The problem would be that the city allowed that to be structured that way to escape taxes. This is especially galling when the city tries to go after concessions in non taxable properties like college campuses and hospitals.
If a Burger King is a concession at WPI (it is) some city councilors have expressed outrage that they aren’t paying real estate taxes u( on top of the personal, property taxes, dozens of license fees , inspection fees, fire alarm fees, sewer I,pact fees etc etc et c).
Where are those same city councilors on the ballpark not paying taxes? Crickets with a heaping side of hypocrisy.
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Editor's note:
Good comment although we disagree.
We do not think this is anything, but a lease?
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. That is not right.