How much more visitors will pay to park at and enter Kings Island, The Beach Waterpark and other Mason area attractions could be determined next week by Mason City Council.
Council member are scheduled Monday, Nov. 23, to hold a second reading of resolutions that, if approved, would impose a 3 percent tax on tickets for area attractions, excluding nonprofits, and levy a 5 percent tax on parking.
Shirley Bonekemper, executive director for the Warren County Convention & Visitors Bureau, said the tax would have “a significant negative impact” to Kings Island, as well as the businesses that are supported by and thrive because of the park.
“We need to connect the dots and look at the big picture and long term economic impact this tax would cause,” Bonekemper said. “We should be looking at ways to support the county’s leading industry, and not create barriers that impact their ability to improve and reinvest in product development.”
John Harris, president of the Northeast Cincinnati Chamber of Commerce, said the chamber will work to fight the admissions tax, which he called “an economic deterrent.”
“Particularly now with the downturn in the economy, is this the time to be assessing business?” Harris said. “They need to be able to sustain a level to where they can keep and maintain an investment in their properties.”
Council member Tony Bradburn, chairman of the city’s finance committee, is a staunch advocate of the tax. He said if an attraction draws large groups of people to the city, additional government services such as fire and police protection must increase accordingly — and the city ought to be compensated.
A 3 percent admissions tax would offset the cost of those services by generating millions of dollars, Bradburn said.
Greg Scheid, vice president and general manager of Kings Island, said the park plans to fight against both taxes.
“It’s really disappointing. Mason’s slogan is ‘Your business partner,’ and I don’t feel like they’re being a very fair partner right now,” he said.
A sign in front of the park asks residents to protest the tax.
Scheid says a proposed ticket tax will have an effect on the entire Mason community, not just the amusement park.
Mason City Council is scheduled Monday, Nov. 23, to hold a second reading of resolutions that, if approved, would impose a 3 percent tax on tickets for area attractions, excluding nonprofits, and levy a 5 percent tax on parking.
Scheid met with Mason City Council during a work session Tuesday, Nov. 17, to plead his case. He said two-thirds of the park’s revenues are generated from group sales and season passes, and he appeared to be looking for concessions from council.
“The front gate piece I’m not that concerned about,” he said. “But I am with the other two-thirds.”
Council members have not given any indication how they might vote next week, or if the percentages might change. It will take four votes, and Mayor Tom Grossmann must abstain because some of his law firm’s clients might be subject to the tax.
The city is planning to revamp the Western Row Road interchange at Interstate 71, and city officials have said they need the tax to help pay for the estimated $24 million project.
Scheid said he directed traffic at the park on at least 40 occasions last summer and interchange improvements aren’t necessary because cars can usually get through the traffic lights in one cycle.
Scheid said the tax would tax people, not the park. A family purchasing a four-pack of regular passes and one parking pass will pay an additional $13.40 in taxes. Those purchasing a four-pack of Platinum Passes can expect to shell out $19.20 in additional taxes, according to Scheid.
“I think the entire Mason area is going to shoulder the bill for this because if we have less visitors at Kings Island, there’s less people staying at the restaurants, less people staying at the hotels, less people going to the convenience stores,” Scheid said. “They’re robbing Peter to pay Paul here.”
Kings Island maintains it has paid nearly $110,000 over the past two seasons to cover the cost of Mason police patrolling the park, but councilman Tony Bradburn said that money goes directly to officers as part of a private detail and is not part of the city’s cost of patrolling the area.
Park officials also said their employees have paid nearly $440,000 to the city of Mason in income tax over the same two-season span.
“When you look at delivery of services: police, fire and all the other stuff as well as the capital improvements we’re looking to do in the area, it doesn’t even come close,” Bradburn said.
Scheid wants to know why city council did not bring area attractions to the table before a resolution was read on the ticket tax.
“We were just shell-shocked,” he said. “The fact that it wasn’t on the agenda and no one bothered to give us any heads-up that it was going to be discussed — I just felt like it was pretty low of the city to go that way.”
Bradburn said area attractions, including Kings Island, had been involved with private conversations with Grossmann regarding the admissions tax prior to the Nov. 9 meeting, when the matter was introduced.
Scheid said he has not been involved in talks with the mayor for more than six months.
If the city imposes a 3 percent tax on tickets and 5 percent tax on parking, based on an estimated 3 million annual visitors, the city would receive $4.4 million from the proposed ticket tax and $1.5 million from the parking tax.
According to the Warren County treasurer’s office, Kings Island has paid $8 million in property taxes on the main park parcel since 2001 to all of the local taxing districts.
And The Beach Water Park, which also will take a hit if the tax passes, has paid $765,852 in property taxes since 1988.
Mason Finance Director Joe Reigelsperger said Kings Island ranked sixth in employer income tax withholding in 2008.
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