Peter Carlozzi, from Almaden, watches his ball sail down the fairway on hole 17 at Coyote Creek Golf Course Wednesday. The new tax could force people to cut back on golfing.
Golf course owners and some of their customers are teed off at Gov. Arnold Schwarzenegger for proposing a 10 percent tax on all things golf - from greens and driving range fees to cart rentals, club memberships and dues - the list goes on, course operators said.
"It's like getting hit with a sucker punch," said Tony Lauria, director of sales and marketing at Coyote Creek Golf Club north of Morgan Hill. "It's unfair to hit an industry that's struggling, and doing its best to keep our jobs."
The proposed golf tax is an attempt to help close a nearly $42 billion state budget deficit. The proposal would also tax auto repairs, veterinary care, amusement park and sporting event admissions, and appliance and furniture repairs.
Service taxes in other states include levies on pet grooming, water well drilling, fur storage, massages, shoe repairs, swimming pool cleaning, taxidermy, and dating and diaper services. But that doesn't make the groups affected by Schwarzenegger's proposal feel any better.
Lauria said he is concerned that not very many golfers have heard about the proposal, which has not been well publicized.
Also, he said the information that is available is not very specific, and doesn't clearly identify other service industries that would be subject to sales tax for the first time.
"Where's the transparency?" he asked.
Lauria echoed the concerns of some of the course's patrons that day, that a tax on rounds of golf would hurt senior citizens and people on a fixed income.
Also hurt by the tax, according to Lauria, would be the list of nonprofit groups and schools that raise money by organizing golf tournaments.
Coyote Creek, he said, hosts a number of such fundraiser tournaments each year.
He added, "Why doesn't the governor tax the weight training industry he came from? Or the entertainment industry he came from? He needs to get more creative than to just go after the golf industry."
Furthermore, making it more difficult or expensive for golfers to golf would "greatly impact" the industry as a whole, which is suffering because fewer people are able to afford to play golf as much as they used to. Lauria said business has dropped off steadily the last couple of years, not only at Coyote Creek but also at area competing courses.
He said the number of rounds played on both weekdays and weekends has declined. On Wednesday, he said about 150 golfers had reserved tee times, and that's significantly fewer than they would have had in good times.
Golf courses throughout the state have had to close, and many are operating with less staff than they need, Lauria added.
Coyote Creek has responded by discounting their rates from $80 a round with a cart, to $55. He said neighboring courses are making similar offers.
A group of senior citizens, all retired teachers, were on the practice green Wednesday afternoon. They spoke passionately about not just the tax but also the many budget problems the governor has had lately.
"I'd be happy to pay that tax if it would help balance the budget," said Gene Sterling of San Jose.
But others disagreed.
"It's a bad idea," said Ernie Fortino as he waited in the Gilroy Golf Course pro-shop for his golf buddies to arrive Wednesday morning. "We're already overtaxed. The state needs to stop spending. Some of us can afford it but some of us can't."
Fortino, 73, said he's been playing golf at the Gilroy Municipal Golf Course on Hecker Pass a couple times a week for more than 15 years.
The owner of Fortino Winery just down the road, Fortino said wine and golf are two of California's tourism staples and the tax will only hurt the state in the long run in the form of fewer players, lost jobs and closed courses.
Andrew Bergot, 39 of Morgan Hill, was on the Coyote Creek driving range Wednesday. He said a sales tax on a bucket of balls, or even on a round of golf would not affect his playing habits. Bergot said he plays golf a couple of times a month, predominantly at Coyote Creek.
"No one wants to pay more money, but it wouldn't be that big a deal for me," said Bergot. "And in the (economic) times we're in, you've got to look at everything."
He envisioned a possible benefit to golfers the tax could bring: "If less people are playing golf, maybe the price will go down for greens fees."
Morgan Hill resident Paul Wyrybkowski, 51, a golf pro at Silver Creek Valley Country Club, but was also out hitting range balls at Coyote Creek on his day off Wednesday. He hopes the tax doesn't go through.
"We're already paying taxes," Wyrybkowski said, referring to income and payroll taxes the owners and managers of golf courses currently pay, and calling Schwarzenegger's proposal a "double tax." "It would hurt the game of golf, and I think there's other ways of solving the budget issues."
The affected industry groups say they are being unfairly targeted and that similar businesses are exempt.
"This unfair tax singles out golf," said Don DeLorenzo, operator of the Gilroy course. "Why not spread it out? If something's gotta give, let's look at all the recreational industries."
Earlier this week, DeLorenzo e-mailed golfers letting them know about the proposed tax and urging them to visit www.forecalifornia.com - a Web site launched by the California Alliance for Golf to unite the state's golf community - and to write their legislators.
"We're a blue collar golf course but there are some clubs that have very influential members who may have some clout," DeLorenzo said, giving actor Clint Eastwood - who owns Tehama Golf Club in Carmel - as an example.
The Schwarzenegger administration estimates that the service taxes would raise $1.4 billion through the next fiscal year, which runs from July 1, 2009, to June 30, 2010. The governor wants to implement the taxes on appliance and furniture repairs, golf, veterinary care and vehicle repairs by March 1. The taxes on amusement park and sporting event tickets would kick in on April 1.
Michael Moore and Sara Suddes Michael Moore covers county and law enforcement issues for the Morgan Hill Times. Reach him at (408) 779-4106, ext. 202, or mmoore@morganhilltimes.com.
Sara Suddes is an education reporter for South Valley Newspapers. Send her an email or (408) 847-7158.
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