Chicago Teachers Union Charges Bulls Owner With United Center Tax Dodge

[proud2BlibKansan]

CHICAGO — In its latest bid to pressure supporters of charter schools, the Chicago Teachers Union has completed a study suggesting that Bulls Chairman Jerry Reinsdorf and the owners of the United Center are paying less than a quarter of the property taxes they should be paying on the arena.

The soon-to-be-released study, "Nothing but Net Profit: Jerry Reinsdorf, Property Tax Relief, and Corporate School Reform on Chicago's Near West Side," says tax breaks the United Center received from the state have saved the owners tens of millions of dollars, in exchange for Reinsdorf and Bill Wirtz, then owner of the Blackhawks, agreeing to build it on their own without public financing.

According to data CTU obtained from the Cook County Board of Review through the Freedom of Information Act, the United Center paid $8.5 million in property taxes for the six years from 2002 through 2007.

That's because the General Assembly had previously approved legislation setting the UC's assessment at 20 percent of market value — well below the 38 percent maximum rate for commercial properties at the time — and gave the UC a sweetheart deal to deduct income taxes, maintenance costs and mortgage interest from income.


Read more: http://www.dnainfo.com/chicago/20130103/chicago/chicago-teachers-union-charges-bulls-owner-with-united-center-tax-dodge#ixzz2GxcggZr4

[Tempest]

1. This comes on the heels of something I just read

But according to research published by the Bureau of Labor Statistics, having a pro sports team in town may be a net negative for the local economy. Paul Staudohar, professor emeritus of business administration at California State University, found in an examination of last year’s National Basketball Association lockout that shutting down sports leagues can be good for a city’s finances:

Even if the 2011–2012 season had been canceled, it likely would have had little, if any, effect on the economic health of the cities that host NBA teams. A 2001 study of past work stoppages found that, in 37 metropolitan area economies with professional sports franchises, there was no overall financial impact. Indeed, the cities appeared to perform better financially in years that games were canceled. There were other options that people spent their entertainment dollars on, in a substitution effect, while security needed for public safety at sporting events cost less because games were not played.

Source: ThinkProgress

[proud2BlibKansan]

2. It's a huge issue all over the country.

Tax forgiveness scams are rampant. And our kids suffer. I'm so glad to see the CTU doing this.

[Tempest]

3. I was in Denver when the new baseball stadium was on the agenda

Naturally the owners of the Rockies and the local politicians were talking glowingly about all the revenues it would bring in.

So far it's been a big money loser for the city.

[proud2BlibKansan]

4. Here in KC, where both pro sports teams are losers, they manage to get the taxpayers

to pay for stadiums and renovations by threatening to leave town.

The Royals stadium is gorgeous. So beautiful it was the site of the All Star game this year. And all these baseball folks from all over the country were here for a week marveling at the facilities. (As if they were wondering how the hell does one of the worst teams in baseball get to play in such a great ballpark.)

It really makes me ill. The taxpayers haven't approved a levy for the schools since 1969 but are willing to pay overpaid athletes to play ball - and not very well - in these gorgeous stadiums.