City Parking Tax...

Howdy all,

I just wanted to see what everyone thought of the 8% parking tax that the city of Sandusky has leveled against Cedar Point (and only CP is affected by the tax) and what you think will be the result longterm?

Cedar Point parking will still be only $8 this year, because the city delayed passing the tax until after CP was forced to order supplies for the season. This means however that the city will take about $600,000 in expected profit from the company.

Let me know what you think...

John

_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

http://guidetothepoint.com/cpplace.aspx?mode=thread&TopicID=11105

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2003 - Wicked Twister Crew

OK, yes I knew about that thread however I would like to know what the EMPLOYEES think of the issue and how they think it will effect Cedar Point. That is why I posted it here....thanks though.

John

_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

Sandusky has what 90% of the country doesnt, a tourist attraction that brings in 3million people a year.

And along with those 3 million people come extra costs Sandusky must incur that towns of comparable size never even have to think about.

Call it mismanagement if you must, but its really not all that fair for the people who live there year round to pick up the tab for all those tourists who come in for a weekend and suck up all of their resources.

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:james
magnum crew 2002
johnny rockets 2003

Ok magnumjames, so are you saying that the parking tax is fair? Just wondering.

I have heard reports that 25% of the city budget comes from CP taxes, in that case aren't they already doing enough?

The 3 million extra people each summer do costs Sandusky by way of road maintenance and so forth however it also brings in a huge income, both for the city and for the individuals living there as fulltime residents. Imagine how many people in Sandusky would not have jobs if Cedar Point was not there...imagine how many people would never have moved to Sandusky? Also, CP property taxes fund a huge majority of the Sandusky City schools, money that the fulltime residents would have to pay themselves.

Just a thought, take it for what it is, but I would like to know how you see it.

John
_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

well i'm not pro tax, but me thinking a tax is fair or not is irrelevant. Do i understand the why's about taxes? sure do.

It's all relative. If there were more businesses in Sandusky CP wouldn't supply 25% of their budget...while still paying the same amt. they are now.

With CP and its influx of visitors, Sandusky must provide services that they wouldn't need otherwise.

Take away CP and Sandusky could probably close a firestation, they'd have a smaller water/sewage plant, the roads wouldn't need work as regularly (tho i think thats at the state level), etc etc saving them millions.

I'm guesstimating the admission and parking tax would probably give them $4,500,000 a year. Honestly, thats not alot.

Those really are the only objectionable taxes. Property, school, sales taxes... those are everywhere. and a non issue.

If it appears that CP is being unfairly targeted, realize that CP really is the only business in Sandusky ;) so naturally it would seem that way.

When you break it down, CP is only paying for the city's services. To cry murder, well i guess that's very corporate of them.

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:james
magnum crew 2002
johnny rockets 2003

I guess the real question is whether the taxes are proportional to the size of the business...the main objection I have is that from what I see the City taxes CP proportionally more then the rest of the businesses in Sandusky.

With CP and its influx of visitors, Sandusky also gains a HUGE amount of taxable revenue from ALL the businesses.

While the tax is going to be used to pay for SOME things that CP traffic directly relates to, other CP taxes go towards the general budget deficit that the city is nearing.

Just my view.

John
_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

hmm... i'm gonna search for that yearly report thing they put out not too long ago.

But just for rough estimates figure each person who goes to CP spends 100$. Thats $350million or so.

$4.5mil in ticket/parking taxes and probably another 10-15 in school/property/etc taxes. Then lets round that up even more just to give them the benefit. Let's say CP pays a total of $25million in taxes a year.

They bring in $350 pay $25. Is that reeeeeally too much? Personally, it looks pretty normal to me. Here in NYS, if i were to go spend $350 at the store they'd take $28 from me.

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:james
magnum crew 2002
johnny rockets 2003

You live in america right? Well bend over now because father taxes is cuming to get you.

compared to other nations, i'd say we have it pretty good here.

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:james
magnum crew 2002
johnny rockets 2003

The way I see it, the city has CP by the short and curlies. Many towns will give their big businesses tax breaks in order to keep them from relocating and removing a lot of jobs. CP can't really relocate - not without substantial cost - so the city can pretty much levy whatever taxes they feel like and CP is pretty much stuck with them. Just my 2 cents though... I don't pretend to know didly squat about business economics.

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Jon

Park Op 2000, 2001, 2002, 2003
"He's gonna rue the day he came up against The Extreme baby!
Bill I'm talking imminent rueage, imminent rueage..."

Keep in mind as well, the state of ohio is also looking to raise revenues by taxing parking (it is in the state house or senate i cant remember) at the STATE level, meaning that any parking will be double taxed both by local and state govt. This will only hurt the city in the long run if they go through with this, because with decreased revenue they will be less likely able to hire as many employees (major source of taxation of income state and local), as well as new ride building will slow (fewer people parking, ect...) thus with a rising parking tax the state and local govt net about 0 dollars on the whole deal lol.

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Cedar Creek Trading Co. 1999
MF 2002
Sky Ride ATL 2003

BA: OSU history, minor in economics

Good ol Cuyahoga county is on the hunt to raise sales tax again oh yay! 8% is in my future! And about saying in the US we have it easy on taxes.. are you on speed? According to the constition, the IRS is illegal, yet they take so much money.. I had to pay some stupid Cleveland tax $170, because I never worked in Euclid, where I live,which has the one of the highest tax rates in Ohio (2.85%) They get ya coming, and they get ya going...

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Matt - '02-'03 WT crew
Guest- "Are the towers supposed to move??" Me- "No, I just sit in a chair underneath it all day long, hoping it collapses on my head."

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magnumjames said:
hmm... i'm gonna search for that yearly report thing they put out not too long ago.

But just for rough estimates figure each person who goes to CP spends 100$. Thats $350million or so.

$4.5mil in ticket/parking taxes and probably another 10-15 in school/property/etc taxes. Then lets round that up even more just to give them the benefit. Let's say CP pays a total of $25million in taxes a year.

They bring in $350 pay $25. Is that reeeeeally too much? Personally, it looks pretty normal to me. Here in NYS, if i were to go spend $350 at the store they'd take $28 from me.

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:james
magnum crew 2002
johnny rockets 2003

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I am pretty sure that CP pays more then $25 million in taxes each year...actually I think the property tax alone is more then that. Well I will look it up later.

John
_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

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And about saying in the US we have it easy on taxes.. are you on speed?

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Those poor Ontarioans have to pay 15% sales tax! Not to mention their gas costing double what ours does. I have to pay 4% on clothes, 8 on junk, and 0 on food. People in Nevada and Oregon pay 0 on everything. The IRS has never kept any of my money when it came time to do my taxes. I, atleast, feel like i have it pretty easy. And I'm not too sure about property taxes... but my mom has a modest home in a great neighborhood, sure she *****es when she has to send the money...but i've done the math and as a percentage of her income, it reeeally isnt that much.

Look, a parking tax won't affect me...it won't stop anyone from coming to CP, and it might help Sandusky out a bit covering things they have absolutely no choice but to provide CP and its guests. CP is a well run multi multi million dollar company, they'll find a way around it. Even if its just something small like adding a penny to the cost of 64 different things inside the park. I just cant see any negative impacts it'll have.

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:james
magnum crew 2002
johnny rockets 2003

"I just cant see any negative impacts it'll have."

The main problem I have with it immediately is that they waited just long enough so that CP couldn't adjust the parking rater and made it effective immediately. Therefore no matter what it will have a $600,000 negative impact this year alone...don't be surprised if the rate changes next year.

Thats all I have to say about that for now.

John
_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

but thats a negative that affects stock holders, I meant guest-wise. I shouldve been clearer.

Anywho, its passed... naturally cp will fight it and really it makes no difference to me you or the 3 1/2 million ppl who will come to the park this summer. so whats the big deal.

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:james
magnum crew 2002
johnny rockets 2003

Well, a loss of profit effects the following years budget, which would thereby effect park improvements either in utilities or rides. That is afterall $600,000 that cannot be redevoted to creating future improvements. As a business major I can assure you that while the Present Value of $600,000 is worth a great deal more in Future Value, thereby reducing the long-term ability of the company to invest in the future of the company.

You are right, it will probably have minimal effect this year, however what is the long-term effect next year? ten years from now? twenty years from now?

Anything that effects the stock holders will effect the guests down the road...take the long term view.

John
_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003

But thats it exactly, CP doesnt strike me as the kind of company that would allow this to affect them. They already have the next few years figured out in some master plan. Next year, they'll just raise the cost of parking to make up for their loss this year.

I was a business major also, but to compare CP to some other business... thats apples and oranges. In CP's industry they constantly need to keep themselves at the top. It would be a huge mistake, and quite a shame, to cut back on anything over this. But, they're the best for a reason... they'd never allow that to happen. They'll take a hit this year, but the next they'll make it up. Even if that means parking going up to 10$...hell i pay that to park downtown so i can run a few errands.

I just dont see this having any adverse reactions in the long run. If it does everyone will cry about this tax, when in reality CP just played it wrong.

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:james
magnum crew 2002
johnny rockets 2003

Ok, so what you are saying is that if there is any negative effect from excessive taxation which doesn't hit its competitors that its Cedar Points fault? That is a very interesting analysis...

CP could very easily increase parking to $10, and yes people would still pay it, however to say that it would have absolutely no impact at all could be a little cocky.

Do you believe that it would be possible for ANY company to be taxed to such an extent that they start losing money? Are you really so sure that this will be the last tax addition leavied against CP? I doubt it, and it may not be the fact that this tax will push them over the edge, what about the taxes that follow?

John
_________________
Traffic Team Leader 2000
Traffic / Tolls Supervisor 2001
Traffic / Tolls Supervisor 2003