An economic-impact report provides clear evidence that golf - and its related businesses - is a major revenue source for the state of Washington. Commissioned by GOLF 20/20 for the non-profit group Washington Golf Alliance, the report was prepared by SRI International, a company that has done similar golf-related financial analyses for other states.
The report was initiated because the golf industry in Washington is starting encountering some major tax ramifications in its capitol city of Olympia. Like many other governments, the Evergreen State is facing a giant deficit. A lobbyist commissioned by the Washington State Golf Association informed the organization that there are a couple Senate and House bills now (March 2010) in committee that could eventually make it to the House or Senate Floor for a vote.
The bills (House Bill 1255 and Senate Bill 5911) could prove onerous to both private and public golf facilities, as well as trickling down to related industries, including tourism, services and manufacturing. HB 1255 has been introduced to the Washington State House Finance Committee with the intent to apply a business and occupation tax on initiation fees and dues at private clubs. This would be an average "hit" of $26,000 to every private course in the state, while inflicting other economic impacts on the industry.
The state is not just targeting private clubs. SB 5911 could affect every course that uses surface water (i.e. lakes, rivers, streams) for irrigation. Like HB 1255, this would add another hefty tax on courses that utilize these water sources, potentially putting some facilities - already teetering on the edge - into the abyss and out of business.
With Olympia now in session, these bills - along with others affecting the golf industry - may be forced through to offset the state's deficit.
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