Cranston Top Golf

Good Comment

 



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.


______________________


Editor's note:

Good comment although we disagree.  

We do not think this is anything, but a lease?  




Comments

Anonymous said…
The WooSox signed a lease so it seems they should pay taxes.
Anonymous said…
WoooSox twitter has a post about the new parking meter app. It got me thinking. Between the cost of buying the kiosks and the credit card processing fees is the City making more or less parking revenue? Speaking of revenue the City should have a Zimbalist bobblehead night to raise revenue to pay for the ball park.
Anonymous said…
The deal structure could include a very low value lease (the taxable part of the deal) and very high value other contracts, like concessions and service contracts
Anonymous said…
You need to go read item 10b of the January 12 2021 agenda. Buried at the end is the lease.
Anonymous said…
Not only does it not appear legal it isn't right. We build and lease them a ball park where they are making millions of dollars and they do not pay taxes like everyone else
. That is not right.