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July 08, 2009
Oakland taxes county, A's tax fans
The new budget passed by the city of Oakland includes an 18.5% city tax on parking at Oakland-Alameda County Coliseum, something that's allowed by law, but Oakland is only just now getting around to doing because of the fiscal crisis infecting every corner of California. (Have I mentioned the IOUs?) Under the A's and Raiders lease agreements with the Coliseum, however, the teams are allowed to deduct any parking taxes from their rent payments — meaning the city is effectively siphoning off money from the county, which promptly responded by suing the city.
None of which stopped the A's from immediately announcing that they'd be raising parking fees by $2 per car effective immediately in order to pay for the tax — which, in case you were napping during that last paragraph, the A's won't actually have to pay. "In an effort to reduce the impact to our fans, the A's are only passing along a portion of the new tax," A's president Mike Crowley told the Oakland Tribune. Voila!
Well I suppose it really only becomes a double switch IF the A's take advantage of the provision and actually lower their rent payments as is their option. They may choose not to do so to stay on the good side of Alameda County since the county only loses out if the A's do take advantage of the rent reduction clause. If they don't than from the A's perspective nothing has changed nor does Alameda Co necessarily get screwed which may be important to the A's since they have and may continue to explore sites in Alameda Co for a new stadium.
Frankly I'm interested in seeing what the Raiders reaction is to this tax mess is later this year. And I'm also interested in Oakland's proposed "ticket tax" and the team's reactions to that. Seems Oakland is intent on taxing the hell out of the teams in their city limits all of a sudden.
Posted by Dan on July 9, 2009 01:37 AM
Yes, Dan, I am sure the A's won't reduce their rent payments by the amount of tax they pay. That would be a great business decision.
Posted by Chris A. on July 10, 2009 12:20 PM
I just said IF they didn't reduce the payments. And to date there has been no indication they will. Don't assume they're pulling a double switch until they pull it, to do otherwise is just an assumption, and assumptions are worth jack.
Posted by Dan on July 13, 2009 02:18 PM