how the tax would impact golf courses

He emphasized that township costs rise annually, but tax revenues have dropped for the past several years due to the struggling economy. He credited Township Manager Mary Flagg for holding the line on the budget, so that residents have not been faced with a tax increase in many years.

“The unintended consequence of this is going to be the loss of one or both of (the township’s) golf courses,” said Spring Hollow Golf Club Owner Ernest Basile.
Kimberton Golf Club owner Robert Hays said it was unfair of the township to try to close a budget deficit by raising taxes on three businesses—Pennhurst and the two golf courses are the only outfits likely to be impacted.

Dunphy explained that, on a $50 admission fee, only ten percent, or $5, would be taxed. The five percent tax on that $5 would amount to 25 cents. Both golf course owners seemed pleased with the callaway razr x irons proposal, and supervisors unanimously approved it.

However, Supervisor Christine McNeil, a vocal opponent of the Pennhurst attraction, did express some reservations, saying she feared the township would “become dependent on this tax on a use I don’t support.”

The board agreed to dramatically reduce the percentage the golf courses would be taxed on, bringing it down from the originally proposed 40 percent to 10 percent of the greens fees. That decision came after Ronald Brien, an attorney for Spring Hollow, noted that the state statute allowed for a lesser fee.
Supervisors are now hoping to adopt the new ordinance next month. If approved, it will enable the township to impose a 5 percent tax on “the amount paid for admission to any place or activity of amusement within East Vincent Township.”

The ordinance states that “the tax shall not be charged and collected on the first $10,000 of admissions per calendar year applicable to any amusement.” Therefore, small operations like callaway x-24 hot irons farms that offer hayrides, will not likely be impacted by the tax, Dunphy said. Health clubs and non-profit entities are also exempted by the state statute.

Initially, they believed the state law required the tax to be imposed on 40 percent of all golf course greens. During the meeting, Brien pointed out that the language in the state law read “up to 40 percent.”

Dunphy noted that Pennhurst representatives had been quoted in the press as saying the event had taken in over $950,000 the first year it opened. The township, therefore, stands to earn about $50,000 from the five percent amusement tax on Pennhurst ticket sales.

Supervisors’ Chairman Mark Dunphy said at a meeting Wednesday that the 5 percent amusement tax on ticket sales could discount golf clubs help the township close a $125,000 budget deficit this year. However, he explained that when supervisors first considered the tax, they did not realize that, by state statute, the tax must also be levied on golf courses, if it is adopted.

But while the amusement tax could help close a budget gap, it also had an unwelcome impact on golf courses. Dunphy and Supervisor Jane Peronteau both stressed that golf courses were included only because the state statute contains a uniformity clause that made it impossible for the township to exclude them.