Cost of having fun increases and may end
Golf course owner
will not pay $5,000 tax bill
Staff reporter
Recreational-type businesses, specifically golf courses, are now being assessed as a commercial business and it may put Pine Edge Golf Course out of business.
Myron and Pat Schmidt own the unique rural golf course near Goessel that serves as a drawing card for the Goessel community and county. However, a recent assessment changed Schmidt's business property from agricultural to commercial.
The Schmidts addressed Marion County Commission Monday to ask for support in changing state laws that require appraisers to assess golf courses as business property.
"The golf course is a recreational business that relies on people playing golf," Myron Schmidt said.
Marion County Planning Commission approved the use of the agricultural land as a golf course.
"Now all of a sudden I've been thrown in the classification of commercial," Schmidt said.
He noted that city golf courses do not pay property or sales taxes because they are government-owned businesses. Private country clubs pay 12 percent, Schmidt said, and privately owned pay 25 percent.
County appraiser Cindy Magill clarified that those country clubs that are non-profit pay the 12 percent, for-profits pay 25.
"I'm here to get fairness in business," Schmidt said.
He referred to a golf magazine that listed the top reasons people golf at specific courses.
The reasons were ranked with location as the first followed by price.
Schmidt said competing with Hillsboro and Marion courses puts him at an unfair advantage because of the amount of taxes he now has to pay.
"I'm not against paying taxes. I'm willing to pay my share," Schmidt said.
With the new classification, Schmidt's taxes now are $5,000 per year.
"That means 500 people will have to play my course," he said, which doesn't include any other expenses.
Letters were written by Schmidt and the City of Goessel to state legislators. The only response Schmidt received was from Senator Jim Barnett.
"The golf course is a real asset to the community," Peggy Jay, mayor of Goessel, said. "We don't have a wellness center and everybody has to drive somewhere (for recreational activities). This is an activity that all ages can play. With a community of retired people, the course is a real asset."
This issue is not unique to Marion County, Magill said, with Sedgwick, McPherson, and Harvey counties also looking at golf courses.
Commissioner Dan Holub doesn't want government to compete with free enterprise and asked what the county can do.
Magill said the commission could take a position and ask legislature to review. Golf entities also need to get involved.
Acting commission chairman Bob Hein said he wanted to see local legislators get involved.
"They need to get this issue to committee for discussion," he said.
The commission agreed to send letters to local representatives. Other entities, such as school districts and cities also are encouraged to send letters in support of changing classification requirements.
Schmidt told the commission that he does have options. One could be to make his business a non-profit entity.
Another is to close the course.
"One option I am not going to do is pay the $5,000," Schmidt said.
