Disaster Relief / American Recovery & Reinvestment Act
BACKGROUND
The golf industry suffered its second setback in the last several years in 2009 when it was excluded from the American Recovery and Reinvestment Act and denied federal disaster relief. Section 1604 of the act grouped golf among several other businesses, including state and local governments, private entities, gambling establishments, aquariums, zoos and swimming pools, which also were denied the benefits of the economic stimulus plan. Golf industry observers will recall that, in the wake of hurricanes Katrina, Rita and Wilma in 2005, Congress omitted golf facilities from tax legislation that provided relief to a number of businesses devastated by flooding along the Gulf Coast.
In fact, the bill introduced by Sen. Charles Grassley (R-Iowa) following severe flooding in the Midwest in the spring and summer of 2008 was modeled after the 2005 Gulf Opportunity Zone Act (GO Zone Act). That legislation provided tax breaks for businesses in Gulf Coast and Atlantic seaboard states affected by the damaging hurricanes. Specifically, the tax benefits were made available to owners of “qualified Gulf Opportunity Zone property.” However, the GO Zone Act excluded “any property used in connection with any private or commercial golf course [OR] country club ….” Since Sen. Grassley drafted S. 3322 using the GO Zone Act as a template, his bill contained this same exclusion, denying much needed tax relief to golf courses and clubs.
In an effort to ensure that the final draft of the legislation removed this exclusion, many of golf’s allied associations, including the NGCOA, lobbied members of Congress to change the bill’s language. But the exclusionary language was kept in the bill, which was ultimately passed by the Senate. However, the House of Representatives was not comfortable with the entire bill and refused to pass it. But shortly before the legislative session ended, the $700 billion economic bailout bill was debated. After members of the House of Representatives first voted down the bill, Senate leaders decided to add some sweeteners to the bill to encourage its passage. The biggest sweetener added was the bill that included Sen. Grassley’s language.
Since that bill had tax breaks for different businesses and since the idea of a bailout was more acceptable the second time around – especially as the stock market continued to tumble – members of the Senate and then the House quickly passed the new package, which was quickly signed by the President.
IMPLICATIONS FOR GOLF COURSE OWNERS & OPERATORS
Natural disasters can wreak the same havoc and devastation on golf courses that they do on any other business. In fact, the damage is often more severe because the open land areas where courses sit are even more vulnerable to the destruction caused by hurricanes and floods.
Golf owners, operators and others who follow the industry will recall that in 2005, following Hurricane Katrina, the slow rebuilding of golf courses and the failure to build new courses practically shut down the real estate, travel and tourism industries throughout Louisiana and Mississippi.
WHERE WE STAND
The NGCOA believes golf has been unfairly singled out in legislation that has benefited thousands of small businesses following natural disasters. This discriminatory treatment of golf courses and country clubs has been unfair, harmed employees and hindered redevelopment. It also ignored the economic and charitable benefits of our industry.
WHAT THE NGCOA IS DOING
Keen observers of Congress and the political process are highly doubtful that disaster relief will be brought up again by the nation’s lawmakers. However, if a new natural disaster bill were to be brought forward, the NGCOA would again raise a loud voice to amend the current law. Meanwhile, the NGCOA will continue to join with golf’s other leading associations and organizations on National Golf Day and through other government relations efforts to make sure Congressional leaders are reminded of golf’s economic impact and its need for the same protection afforded other similar businesses.
WHAT YOU CAN DO
It is discouraging to know that Congress once again overlooked golf’s contribution to local, state and national economies by denying owners and operators equal access to disaster relief. However, we must continue to make our voices heard, if for no other reason than to guard against unfair treatment spreading to other important issues. At every opportunity, you are encouraged to argue for golf’s importance as a strong business catalyst and supporter of local communities. As you know, golf is responsible for two million jobs and annually contributes $76 billion to our economy. In addition, charities raise more than $3.5 billion from events held at golf courses. Economic impact studies conducted in the last several years have made a compelling case for golf’s contributions. Those studies can be viewed at http://www.ngcoa.org/pageview.asp?doc=2212.
WHERE TO LEARN MORE
http://www.govtrack.us/congress/bill.xpd?bill=s110-3322