Few things have dodged the budgetary ax this year, as conservative
Republicans milk a rare opportunity to gut the social contract;
everything from education to prenatal care has been on the block.
But somehow, one local welfare project seems to have avoided this
fiscal bloodbath.
For nearly 15 years, Tucson Greyhound Park and other Arizona racing
facilities have gotten an almost-free tax ride, thanks to the generous
citizens of our fair state. This largesse dates back to 1994, when
American Indian casino gaming began eating into profits at Arizona’s
dog and horse tracks. As a hedge against further losses, lawmakers
created a tax exemption for simulcast-race wagering, allowed the tracks
special deductions for capital improvements and instituted a “hardship
tax credit,” which often allows them to avoid paying any taxes at
all.
Opponents of greyhound racing don’t think these tracks deserve any
breaks whatsoever—especially when crashing state tax revenues
threaten vital services. “It’s outrageous,” says Joan Eidinger,
publisher of the Phoenix-based Greyhound Network News. “We’re
closing schools, and the taxpayers are subsidizing this?”
According to the Arizona Department of Racing, in fiscal year
1995—the last year before the subsidies took effect—the
state received nearly $9 million in revenues from horse and dog tracks.
In 2008, because of the exemptions, that sum shrank to about $430,000.
A 2007 review by the Arizona Office of the Auditor General revealed
that exemptions and tax credits for the racing industry cost the state
$44 million in revenues between 2001 and 2006.
In fiscal 2008, according to the Department of Racing, Tucson
Greyhound Park pulled in a cool $16.2 million in wagers, and kept $3.4
million of that—while paying nothing in parimutuel betting
taxes.
A call to park manager Tom Taylor for comment was not returned. But
Susan Via has plenty to say about TGP’s free ride. She heads Tucson Dog
Protection, which last year spearheaded a South Tucson ordinance to
improve the treatment of dogs kenneled at the park. Via says these tax
credits and exemptions simply prop up a fading sport.
“If the voters are really concerned about raising adequate revenue
for the state of Arizona, stop giving breaks to this industry,” she
says. “Make them pay their fare share on simulcasting. That’s
three-fourths of their revenue, and they pay zero taxes on it.”
Simulcasting allows people to bet on races in places such as bars or
other off-track venues.
Racing advocates argue that Arizona’s tracks provide jobs. “But at
what cost?” Via asks. “At what cost to the animals, and at what cost to
the reputation of the state? And at what cost to the people? I’m not
sure that encouraging more gambling is a great idea in a time of
economic collapse and hardship. And I’m not sure that subsidizing a
dying recreational industry is where Arizona wants to go.”
So why do these special tax breaks endure? Simply put, political
power. They were created with plenty of arm-twisting back in 1994, says
Eidinger. “This legislation was passed at 2 o’clock in the morning on
the last day of the legislative session.” Leaders “wouldn’t let anyone
out of the room until they made a decision.”
And it endures through power as well, she says, thanks in large part
to intense, behind-the-scenes brokering by Phoenix attorney John
Mangum. He represents Arizona’s racing industry, and is known as one of
the Capitol’s hardest-driving lobbyists. “The gambling lobby is the
most powerful lobbying group in both chambers of the Legislature,”
Eidinger says. “And Mangum is really tough.”
Mangum didn’t return several calls from the Tucson Weekly seeking comment. Nor were calls returned by House Speaker Kirk Adams or
Senate President Bob Burns regarding the special tax breaks.
Meanwhile, the racing industry also leaves taxpayers to shoulder the
lion’s share of regulatory costs. The Arizona Department of Racing
operates on a shoestring budget of just more than $3 million, and more
than $2.6 million of that comes from the state’s general fund. “The
bottom line,” says department director Luis Marquez, “is that the
(hardship) tax credit affects general-fund revenues, which affects the
state.”
He says the credits haven’t been specifically discussed at the
Legislature in recent years. “But the department has made the argument
that the industry needs to fund more of its own regulation. As part of
those ideas, we have included alternatives that have something to do
with the hardship tax credit. But it has never materialized on anything
in the Legislature, or been discussed as part of any bill.”
That may be about to change. Rep. Kyrsten Sinema of Phoenix, who
serves as assistant leader to the Democratic caucus, recently got a
peek at the numbers Eidinger had put together. “When I saw that, I
thought, ‘Holy cow!'” Sinema says. “This is an issue that has flown
under the radar. And I think that’s partly because it’s an issue that’s
not well-understood. I’ll be honest: When (Eidinger) talked to me about
it, I had never heard of it before. But I think it’s something that can
be talked about in next year’s budget.”
And so Tucson Greyhound Park just keeps ambling along, making money
but not paying the same taxes as other Arizona businesses. It’s
actually a nifty little cash cow—despite the protestations of its
owners, Florida businessmen Joseph Zappala and Robert Consolo Jr.
Speaking to the Tucson Citizen in 2000, Zappala described the
park as “the worst investment we’ve ever made.”
However, according to a 2007 audit, the partners had never filed
individual Arizona income tax returns. Neither had their management
company. But the pair did manage to pay themselves a management fee of
$2.2 million—in addition to whatever profits the track made.
If that’s a bad investment, we’d sure like to see a good one.
This article appears in Jun 4-10, 2009.
Calling dog racing “fading” or “dying” is inaccurate. The owners taking in millions prove otherwise. That they call it a “management fee” that makes Tucson Greyhound “Park” appear to lose money is an outrage. They claim they can’t afford to feed the dogs healthy food or get them out of their cages more than a few minutes a day or separate them instead of giving them dangerous steroids to prevent heats. They can afford it. Consolo and Zappala are just a couple of cheap _________. Hey Floridians, please start picketing these turkeys! Meanwhile, we Tucsonans need to start picketing Midtown Grill and Jeff’s Pub that are complicit in the cruelty.
Ask yourself why your local grocer, dry cleaner, bicycle shop and plumber all pay income taxes to Arizona, yet dog tracks like Tucson Greyhound Park does not. If you are angry about higher university tuition, cuts to education, closing state parks and other measures designed to save Arizona money, call or write your representative or senator and ask them to do what other states do – tax the lucrative simulcasting revenue dog tracks haul in every year. Ask them to repeal the unfair tax credits that lead to inadequate oversight and regulation of this sorry industry by the Department of Racing. Tucson Greyhound Park’s out-of-state multimillionaire owners can afford to pay their fair share of taxes to Arizona. Make them do it!
If you’re wondering how greyhound racing can have a free ride at the expense of students/teachers/education, the disabled, the elderly, veterans, and anyone who has to pay a so-called temporary tax or has lost their jobs because of AZ budget cuts IT’S TIME TO ACT.
Contact your elected officials by phone and/or email and ask them how and why the free ride for the greyhound racing industry continues at the expense of your children, your family, your neighbors, and yourself.
Mr. Vanderpool – Thank you for writing this article!
Hundreds of dogs are injured and many die each year while racing in Arizona. This cruelty must end, for both humane and fiscal reasons.
Lawmakers should take a look at TGP’s tax breaks and say no more!
Christine Dorchak, Esq., President, GREY2K USA
Thank you Mr. Vanderpool!
Regardless of one’s position on the ethics of greyhound racing, the fact that not only isn’t this industry paying taxes but that our tax money is supporting it is an outrage.
Some of my work involves families where there are serious questions of the parents’ fitness to care for their children. With the current economic crisis, services which protect such children have been slashed. But yet we can pay for gambling to continue???!!
I have to second the comment by DQ – Contact your officials NOW and let them know that this has got to stop!
Thank you Mr. Vanderpool for an excellent article that has needed to be written for some time. Other reporters have passed on this one, but you are unafraid to bring this issue to the public’s attention. Our politicians need to know about this- they don’t know or understand what’s going on with this because it was done before they were in office! It’s time to REPEAL this “hardship” tax credit- please contact your legislators
http://www.azleg.gov/MemberRoster.asp
This will take you to a page with all the contact info for the people that represent you. Tell them you don’t want to subsidize greyhound and horse racing with your tax dollars while your kids suffer budget cuts.
I personally will not eat at any establishments that have pari mutuel wagering. “NO” to Midtown Bar and Grill- “NO” to famous Sams- “NO” to Jeff’s Pub where they are quoted as laughing when the dogs fall and hurt themselves and break a leg (in the caliente insert) I Think it’s Un-American to not pay your fair share- but I don’t want my money to go to dog racing!
Just say no to greyhound racing. First of all, it’s cruel to the dogs. Second, they’ve hired powerful lobbyists to get them out of paying their fair share of taxes. Not exactly fair to the rest of us, is it?
I’m glad this is getting the attention it deserves. Thanks to Tim Vanderpool for covering this story.
I’m writing this from Guam, a US Territory 3 hours from Tokyo and 7 from Hawaii. Thirty years of dog racing here ended in November ’08 when Guam Greyhound Inc folded and essentially abandoned more than 200 racing greyhounds. The local humane society affiliate, Guam animals In Need, stepped in and with the help of advocacy groups across the nation — including Joan Eidinger’s — rescued, rehabilitated and transported more than 150 of the animals to California, New York, Japan and Hawaii. It’s a real success story, we’re proud to be part of it, and many thanks to all those who made it possible.
People who abuse animals, as well as the lobbyists lackeys who support them, lack empathy, compassion and any kind of social consciousness. Millions of dollars in taxpayer monies are being used to prop up dying racetracks, nationwide, subsidizing the cruelty of dog racing, sealing in misery the fate of thousands of greyhounds for years to come. This is an industry, in which the dogs are often injured while racing, and are killed when they are no longer profitable and can’t be adopted. In their attempt to mask the cruelty with talk of jobs and revenue, they distort the truth. As an activist in Florida, I know the scenario all too well. Thank you Susan Via and Joan Eidinger for standing up to these bullies and thank you Tim Vanderpool for your fine investigative reporting. Don’t let these scum bags continue to hide behind the infamous “didn’t return calls”! As the insightful Mark Twain once said, “Of all the animals, man is the only one that is cruel. He is the only one that inflicts pain for the pleasure of doing it”
People who abuse animals, as well as the lobbyists lackeys who support them, lack empathy, compassion and any kind of social consciousness. Millions of dollars in taxpayer monies are being used to prop up dying racetracks, nationwide, subsidizing the cruelty of dog racing, sealing in misery the fate of thousands of greyhounds for years to come. This is an industry, in which the dogs are often injured while racing, and are killed when they are no longer profitable and can’t be adopted. In their attempt to mask the cruelty with talk of jobs and revenue, they distort the truth. As an activist in Florida, I know the scenario all too well. Thank you Susan Via and Joan Eidinger for standing up to these bullies and thank you Tim Vanderpool for your fine investigative reporting. Don’t let these scum bags continue to hide behind the infamous “didn’t return calls”! As the insightful Mark Twain once said, “Of all the animals, man is the only one that is cruel. He is the only one that inflicts pain for the pleasure of doing it”
Robert Consolo, one of the owners of Tucson Greyhound Park, had one of his mansions written about in the tony September 2002 issue of the Robb Report.
The Miami high rise overlooking Biscayne Bay has a lot going on for it including collector items, mohair upholstery, exotics woods and more which is a far cry from the fleas and ticks and syringes at the TGP kennel.
You can read the article called Home Tour Ocean Line Glamour.
http://www.robbreport.com/Home-Tour-Ocean-…
This is the kind of stuff that corporations who don’t pay taxes whether to the state as income or Arizona income tax get away with.
I’d like to know why the Arizona Department of Racing’s Commissioners and the AZ Auditors renewed TGP’s license last year when they knew (it was in the audit report) that these millionaires weren’t paying Arizona income tax.
Why aren’t the citizens of Arizona in an outrage over this tax break??? Dog racing is a selfish inhumane and costly form of “entertainment”. It continues right in front of you, yet you are allowing a few to prosper, enjoying untaxable income…while turning a blind eye to the injuries and poor treatment of thegreyhounds ’til they are no longer profitable. Sounds a little like a cruel dictatorship to me.
HARDSHIP TAXES should be for the benefit of PEOPLE NOT TUCSON GREYHOUND PARK’S RICH FLORIDA KINGPINS! Not for a dying industry that cages greyhounds, disregards the laws–has TGP enforced the better treatment of greyhounds that the South Tucson electorate mandated?–Don’t be ridiculous! Of course NOT! It would cost too much money.
Ohhhh wait a minute…aren’t the voters/citizens paying for this track and its owners to make their millions tax free? What is wrong with this picture? The dogs lose; the people lose; BUT TGP–THEY WIN at the people and dogs’ expense! STOP THE HARDSHIP TAX CREDIT FOR THESE CHARACTERS!
In today’s STAR Senate President Bob Burns (R-Peoria) is quoted as saying, “legislative oversight is particularly important this year, with the state running a deficit, and given there is a cost involved.” (He is referring to domestic partnerships.)
Yet he is tongue tied and doesn’t call back Vanderpool about 15 years of subsidized greyhound racing.
Another Arizona legislative double standard.
I just read the Robb Report depiction of *ONE*of the homes the owners of the track have. Holy cow- what a hardship they have! Having Multiple homes, difficulty arises having 35 boxes of accessories and artifacts for a luxury penthouse over looking Biscayne Bay How ever will we be able to blend our Deco items with contemporary paintings?!?
The rich owners have an interior decorator who thinks outside the box, certainly. The owners of TGP are thinking outside the box, too. Why pay taxes when you can pay a lobyiest? They certainly aren’t thinking about the dogs who live inside a box 23 hours a day, eating raw diseased meat, and given steroids.
They aren’t thinking about a couple of their employees who are paid so low, they are begging on 4th ave for money in their off hours. I’ll bet they could find a better job elsewhere.They seem to only care about themselves. Maybe my tax dollars helped them keep that 1928 French Console..the one with the Miro painting above it…not so happy to have helped….
I am absolutely sick that Tucson Greyhound Park and the Phoenix track do not pay taxes! You would think the people that govern our state, in light of our huge budget problems, would be looking to this industry to pay their fare share. It’s time to stop the free ride. I do not want my tax dollars paying for this “sport”.
Our schools suffer, our roads are falling apart, we talk of tax increases to off set our budge short fall—-yet we allow
Tucson Greyhound Park to go “tax free”. On top of that TGP sends $2M+ a year to the owners… want to see what Consolo does his money? Here is an excerpt from The Robb Report, 2002: Robb Report – September 2002:
It began as boxes within a box. To be precise, 35 boxes of what Fredi and Robert Consolo modestly call their “accessories” had to find a home within a contemporary box – a penthouse overlooking Miami’s neon-blue Biscayne Bay. What emerged is a glamorous interior in the profoundly appropriate Art Deco style.
Google it for the whole story and remember where the money came from—-your tax dollars!
Great reporting Tim Vanderpool. Keep it up, maybe our legislators will listen!
Not only is the greyhound industry littered with corruption,deception,cruelty and ABUSE at it’s highest level,they have the ARIZONA LEGISLATURE in their back pocket as well!!Keep digging Tim you are only beginning to scratch the surface of “THE CESSPOOL OF CORRUPTION” KNOWN AS THE GREYHOUND RACING INDUSTRY.
Thank you Tim Vanderpool. You are doing a great job exposing the ugly and cruel world of Greyhound Racing.
Quit throwing good money after bad— this is a horrible waste of taxpayer’s money.
Contact Arizona Republicans and tell them what you think:
http://www.azhouserepublicans.com/page2/pa…
This is so typical of the corruption and lack of representation that exists in our political system. While social services are being slashed to the bone, legislators continue to accommodate the dog/horse racing industry and their lobbyists. Now that the public is finally getting a peak at this multi-year scam, it’s time to fully expose the situation for what it is.
It’s time to raise hell, Arizona, and that begins with direct contacts to your legislators. It can be as simple as a 60-second telephone call to your representatives stating: “Reverse the tax subsidies for dog/horse racing in our state and put those revenues back into our education fund.”
Simply put – unbelievable. We’re subsidizing maltreatment of animals but forgoing care for the disabled due to the budget “choices” made by our elected officials.
The dog racing industry could afford to take proper care of the dogs if they didn’t make such big contributions to the politicians for tax breaks.
Dog racing as with any so call sport using animals is cruel and inhumane. “It’s not a sport it abuse”….