Single family parcels in Seattle run $20 per square foot on the low side, climbing up to more than $150. Even the city-owned golf courses are valued at $12.50 per square foot! As a result of this low-ball valuation, the private courses pay less than 6% of the property tax they should.
Full Answer
How do you value a golf course for tax purposes?
Assessors must use a cost approach to value the course's clubhouse and other improvements. To qualify for the special tax treatment, a golf course must be (1) open to the public, (2) located on at least 50 acres, and (3) a minimum 9-hole regular or championship course.
How are property tax rates calculated for private courses?
And since property tax rates are calculated, roughly, by dividing the local government budget by the total appraised property value in that district, private courses’ proportionally lower appraised values mean other property owners are paying more.
Where does your property tax money go?
Where does your property tax go? Property taxes make up at least 9.4 percent of the state’s General Fund, which supports public services for Washington residents. Revenue at a Glance provides more detail on property taxes and how they help fund these services.
How much is your private golf course land worth?
The land of Sand Point Country Club, in Northeast Seattle, is appraised at $1.03 per square foot. Broadmoor Golf Club, in Madison Park, at $0.76 per square foot. Across the county’s 27 private golf courses and one driving range, the average appraised land value is $0.49 per square foot, according to county data.
Do golf clubs pay tax?
taxable clubs organised by the club. If your club is taxable, is a non-profit company and has a taxable income of $416 or less, no tax is payable and it is not required to lodge a tax return. other taxes and concessions for non-profit organisations, see Tax basics for non‑profit organisations (NAT 7966).
Is there money in owning a golf course?
Profitable golf courses are generally selling for six to eight times EBITDA, while courses that aren't profitable tend to sell at 0.8 to 1.4 times revenue.
Is buying a house on a golf course a good investment?
Golf course properties typically have great resale value, selling at two to three times that of an average home – which is a magnet for investors.
How much revenue do golf courses generate?
Golf Course Owners make between $30,000 to several hundred thousand dollars per year. However, golf course owners sometimes will lose money if the course has a bad year.
How many acres do you need for a golf course?
“This means an 18-hole course of all short par 3s could be built on as little as 30 acres, while an intermediate length or executive course of 18 holes of par 3s and 4s would require 75-100 acres, and a full size par 72 course would need 120-200 acres.
What percentage of golf courses are profitable?
On an encouraging note, Sageworks' data show that even though golf courses have negative margins, they have strengthened steadily since 2008, when the average net profit margin was about -9%.
Is living on a golf course worth it?
In addition to having your next round of golf right outside your door, living on a golf course often affords views of sprawling green vistas. Even if golf isn't your game, the benefits of living in a golfing community may be something worth considering.
Is living on a golf course good?
There are so many wonderful advantages to living on a golf course or in a golf course community – from the high property values and quality school districts that usually are nearby, to the other community amenities and golf at your fingertips, living on a golf course is living the dream.
What is the appeal of living on a golf course?
The primary appeal of living near a golf course is the view from your backyard: gently rolling greens, clusters of mature trees, ponds, lakes and fountains, as well as an occasional wildlife sighting.
How do public golf courses make money?
Green fee play, memberships, food & beverage, and pro shop sales are the four main levers that can lead to an increase in revenue at a golf course. Of course, within each revenue stream, many specific opportunities exist for golf courses to produce more revenue.
Are golf clubs a good investment?
They are a worthy investment for most golfers and can help your consistency off the tee. My advice would be to look at upgrading the shaft in your driver as well as looking for a new driver, you may find that this makes a bigger difference for less money.
How many gallons of water do golf courses use?
In California, an average 18-hole golf course sprawls over 110 to 115 acres and conservatively uses almost 90 million gallons of water per year, enough to fill 136 Olympic-size swimming pools, said Mike Huck, a water management consultant who works with golf courses statewide.
What is the Maryland golf course tax code?
Code Ann., Tax-Prop. § 8-212 – 8-218) .
What is the income approach for golf courses in Indiana?
Indiana requires assessors to use an income approach to determine the value of golf courses that, among other things, must (1) provide for the uniform and equal assessment of golf courses of similar grade quality and play length and (2) exclude the value of personal and intangible property, and any income derived from such property.
What is the most common assessment method for golf courses?
According to the National Golf Course Owners Association (NGCOA), the most common assessment method for golf courses is the cost approach. Assessors may also use the income and market approaches if certain data are available. Many states have enacted preferential tax treatment programs for certain land uses, including golf courses ...
What is preferential tax treatment?
Many states have enacted preferential tax treatment programs for certain land uses, including golf courses and other open space or recreational land, that provide an economic incentive to property owners to preserve the land for open space or recreational purposes. These programs commonly require specified land uses to be assessed based only on ...
How many acres are golf courses?
To qualify for the special tax treatment, a golf course must be (1) open to the public, (2) located on at least 50 acres, and (3) a minimum 9-hole regular or championship course.
What is the cap on golf courses in Nevada?
Nevada, on the other hand, sets a $3,432 per acre cap (annually adjusted for inflation) on golf course open space land. We also identified two other states, Indiana and South Carolina, that provide other forms of preferential tax treatment for golf courses.
Why are golf courses preferential?
Many states have enacted preferential tax treatment programs that reduce the tax burden open space and recreational land in general, and golf courses in particular, as an economic incentive for property owners to preserve the land for open space or recreational purposes.
When did Seattle restrict golf membership?
Many Seattle golf clubs restricted membership to white players only through the late 1960s. While the sport has given more opportunities to Black players in recent years, tax subsidies for private courses are remnants of golf’s inequitable beginnings, Scott said.
Why did private country clubs proliferate in the first half of the 20th century?
(That language became unenforceable in 1948.) Private country clubs proliferated in the first half of the 20th century in part because public clubs had been ordered to desegregate. Many Seattle golf clubs restricted membership to white players only through the late 1960s.
Will golf courses be taxed in 2020?
2020 may be a year of reckoning for King County’s private golf courses, or at least for their tax bills. The King County Assessor, heeding calls from urban density advocates who have long said the courses pay less than they ought, has pledged to reexamine how golf courses are valued — potentially raising their tax liabilities.
Does Wilson want golf courses to pay higher taxes?
Though Wilson said he’s reconsidering how his department values golf courses, actually getting them to pay higher taxes might require action from voters or the state Legislature. And clubs would likely challenge any action from the assessor that could boost their liability.
How much land is needed for golf?
Golf is unique, however, in the sheer amount of land required - as much as 200 acres, not including unusable areas such as wetlands and water features.
How many acres are there in Glenway Golf Course?
Glenway Golf Course is one of four - count ‘em - four golf courses operated by the City of Madison. That’s some 750 acres of land dedicated to the exclusive use of at most a couple dozen people at a time.
What is opportunity cost?
In basic terms, opportunity cost is a result of making a decision that excludes other options. You gain whatever benefit comes from your decision, but you also lose the potential for doing other things with your resources.
Is it safe to assume that public golf courses are equally challenged?
On a tight municipal budget, the problem of dedicating scarce resources to maintaining the needy landscape of a golf course is obvious. Even many private courses, which are able to charge much higher green fees, have difficulty turning a profit. It seems safe to assume that public courses are equally challenged.
Can golf courses be developed in flood plains?
Golf courses are often in flood plains and areas that can't be developed. Environmental benefits: https://www.gcsaa.org/cours... Good point. I did a business case analysis for a small city in Oregon that used its municipal golf course to dispose of effluent.
Is golf discrimination against women?
Public golf is a different animal from private golf. The historic (and, in some cases, ongoing) discrimination against people of color and women has been limited to private golf courses; Or, at least discrimination at public golf courses has never been greater than that at any other public facility.
Paying your property tax
You should pay your property taxes directly to the county treasurer's office where your property is located. We’ve provided contact information for Washington’s 39 counties to assist you.
Can I appeal my property valuation?
You may appeal your property’s assessment to the county board of equalization in the county where your property is located.
What if I can't pay my property tax?
If you live in Washington and meet certain criteria such as age and income, you may be eligible for either an exemption or deferral.
How does funding schools impact my property taxes?
About one third of your property tax goes to funding education. The Legislature passed Engrossed House Bill (EHB) 2242 in 2017, in response to a Supreme Court order to fund education. This bill makes changes to:
Where does your property tax go?
Property taxes make up at least 9.4 percent of the state’s General Fund, which supports public services for Washington residents. Revenue at a Glance provides more detail on property taxes and how they help fund these services.
How much is a golf course in Seattle worth?
Per the Department of Assessment, the golf course land is worth less than $5 million each. If we tack on the club buildings, the value of both golf courses amounts to $20.5 million. In 2019, Seattle brought in $15 million in fees from developers to pay for affordable housing. So let’s use 2020’s MHA funds to eminent domain ...
What does undervaluing a golf course in Seattle mean?
The undervaluing of the private Seattle Golf Courses means you, as a renter or homeowner, pay more property tax. Washington State property tax for a given parcel is based on two things: the government budget for a tax district and the value of the given parcel as a percentage of the value of all property.
How much is Talaris Conference Center in Seattle?
More importantly, the Talaris Conference Center, a large parcel in Seattle’s Laurelhurst neighborhood that was recently acquired by housing developers just sold for $20.14 per square foot (the assessed value is $33.49.)
Is a parcel in Seattle worth more than one in King County?
So it stands to reason that a large undeveloped parcel in Seattle is worth more than one in rural King County. And indeed, the data backs this up. The most recent comparable sale used for golf courses is inside North Bend city limits, not far off I-90, and next to a park and river.
Should Seattle buy Sandpoint?
The City of Seattle should buy Broadmoor and Sandpoint golf courses via eminent domain, using MHA funds to do so, and convert them into housing and parks. Seriously. As The Seattle Times points out, buying new parks is normally extraordinarily expensive. But here’s an opportunity for us to buy parkland for cheap.