Country Club Tax Status in Question

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Country Club Tax Status in Question Maryland legislature to increase country club assessments to 50 per- cent of the fair market value but was killed in committee without a floor vote. Speaking in an editorial voice, the newsletter said any additional tax assessment will result in a higher dues structure for all country clubs throughout the state. It said the ma- jority of members are not rich and are already cutting their expenses to fiWm survive inflation. Results of mem- Country Club Tax Status In Question bers letting their memberships at Country club taxes were recently in clubs are exempt from annual land private clubs lapse would be that the the news in Maryland, and implica- assessment increases and pay virtu- state would be faced with over- tions of what is going on in that ally the same rate of taxes each year, crowding of recreational facilities. state are of interest to country club even though the value of land More park and municipal courses officials across the country. around the country club is continu- would be needed, resulting in in- The Washington Post recently ally increasing, it was reported in the creased government expenses. featured an article on the tax status newsletter of the Mid-Atlantic Asso- of country clubs that take advan- ciation of Golf Course Superin- tage of a tax break if the club tendents. In 1966 when the agree- Golf Cars No Longer Allowed "promises to keep its land in open ments were signed, the assessed On Plnehurst No. 2 Course space for 10 years." This agreement value for club land was about 54 The famed Pinehurst No. 2 golf can be renewed for succeeding 10- percent of the fair market value. course will no longer allow golf cars .year periods. The Maryland state Since these assessments have not on its 7,051-yard layout, and will re- law was formed in 1966 and next changed despite inflation, the cur- quire use of caddies. year will terminate the first 10-year rent assessment value is now only 28 The announcement was made by period agreement. percent of the fair market value. A bill was recently introduced in the William C. Brent, Jr., president of Under the present law, country Pinehurst, Inc., who said: "We have made this move in order to preserve the quality which Pinehurst No. 2 has become so famous for around the world." The course, which plays to a par 71, is one of five championship courses at Pinehurst, in North Caro- lina. Pinehurst is the only private country club in the United States with five 18-hole courses. All five courses begin and end at the 80- year-old Pinehurst Country Club as well as the new $2.1 million mem- bers' club which will open later this month. Pinehurst No. 2 is also the site of the $200,000 World Open Golf Championship in September, and its fourth green is overlooked by the World Golf Hall of Fame. $250,000 Industry Challenge Is Initiated by Spalding GOLFDOM's Herb Graffis and PGA President Henry Poe admire the As anyone related to the golf indus- Graffis Cup which will be awarded to the PGA Section generating the try must know by now, Spalding is largest contributions to the National Golf Day charities drive this year. making a $250,000 challenge that no The 23-year-old event, which provides help for more than 35 golf chari- other leading pro shop golf ball can ties, generates funds as golfers contribute $1 or more to try to beat the outdistance its "Top-Flite" ball. target score (with handicap) set at the Round of Champions at Firestone Country Club in Akron, Ohio June 2. The target score to beat is the low- The challenge is directed at the Ti- est round of the competing champions — P&A champ Lee Trevlno ver- tleist, Royal +6, Blue Max, Wilson sus U.S. Open champ Hale Irwin for men and LPGA and Women's Open LD, Titleist DT and Maxfli balls. champ Sandra Haynie and 1974 LPGA player-of-the-year JoAnne Gar- The publicity-minded challenge ner for women. has received excellent exposure in the golf industry by advertising and there is little doubt that Wilson and National and Local Chapters word-of-mouth, and manufacturers the PGA plan to appeal the deci- Don't Back Members on Jobs, of the other golf balls have until sion to the Fifth Circuit Court of One Superintendent Says August 31 to accept the challenge. Appeals, also in New Orleans. "Many claims have been made Golf City's chief counsel Henry Associations should back a superin- by manufacturers about the dis- Klein told GOLFDOM he was hap- tendent from the time he applies for tance their golf balls travel," said py with the judgement, but thought a job, right through until he accepts Ralph Carlson, Spalding's business an appeal was imminent. a position and continue to repre- manager of golf. "So by issuing our The defendants in the case stand sent him as long as he keeps the job, direct challenge we hope to show to pay out around $225,000 plus in- according to Wayne Evans, superin- golfers once and for all which ball terest if their appeal is turned down. tendent at Brandywine Country actually travels the farthest. In this Klein indicated that over $116,000 Club in Brandywine, Md. way, their decision on which golf had been credited to the defense, be- "The area in which associations ball to buy can be made solely on cause of a number of other defend- are falling short is in the endorse- facts. ants who had settled out of court. ment of each and every superin- "$250,000 says Top-Flite is the In other litigation pending tendent," Evans said. "The crux of longest ball and the first competitor against equipment manufacturers, a the situation lies in the fact that that can outdistance us in a head-to- pre-trial conference was held in fed- there is no real job assurance for the head test goes home with the cash," eral court in Chicago May 23 in the superintendent in that he has no real Carlson said. case of sporting goods dealer Morris contract." The test will be conducted inde- Mages versus over a dozen of the Evans said the superintendent pendently by Opinion Research club manufacturers. has more wide-ranging responsibil- Corp., Princeton, N.J. Carlson Klein, who is also involved in the ities than either the pro or the club spelled out some of the rules govern- Chicago case, is basing his anti-trust manager. He is responsible for the ing the challenge. The golf site action against the manufacturers in planning and maintenance of would be chosen based on the much the same way the New Or- millions of dollars worth of land, mutual agreement of the challenger leans action was taken. Another pre- turf, ornamental plantings and and Spalding. Opinion Research trial conference is set for the court of equipment. then would select a "reliable base" Judge Bernard Decker in Chicago Evans said he feels certification of amateur golfers from among men on Aug. 21. Over 30 attorneys are is a must. He said it gives the and women having a wide range of working on the defense case. superintendent tremendous lever- handicaps. They would use a driver and a five iron until Opinion Re- search determines the winner on the Keep Members Interested, CMAA Exec Says basis of the total distance of the two shots. Being acutely aware of rising costs, the mood of its members. "When "We feel the challenge is a truly Wichita Country Club in Kansas re- tennis became a national popular- meaningful distance test," Carlson cently started its own Fight Infla- ity," he said, "our club already had said. "No machines. No gimmicks. tion Plan, according to its club anticipated the trend. From two un- Using the best gauge, the men and manager, Josef Auerbach. used concrete courts, we advanced women who play the game." As of Writing in the newsletter of the to six modern outdoor and three ex- yet, no other company has taken Club Managers Association of cellent indoor courts. The tennis Spalding up on its challenge. It was America, the newly elected secre- roster lists almost 300 active tennis also reported another factor in the tary-treasurer explained the pro- families. In the first 18 months of in- challenge is that should Spalding gram that he feels is the kind of door operation, they spent over win a challenge, Spalding would be thing country clubs will have to do $75,000 on indoor fees." allowed to use the fact in its adver- in the future to keep members inter- The basis of Auerbach's views tising campaign. ested. was that management must continu- "Three evenings a week we fea- ously analyze its own market area ture all you can eat family style din- and must constantly find new ways Damages Awarded ners at a low overall price," he said. to interest membership participa- In "Pro-only" Case; "Children under 12 get half price tion. He said it will be exceedingly Wilson, PGA to Appeal and children under six eat free. more difficult in the future to cover "We also recognize the fact that operational deficits by dues in- Fourteen weeks after a verdict was a franchise which sells billions of creases or assessments. The com- reached, damages were finally hamburgers can't be all wrong," he petition for the entertainment dol- awarded in the Golf City "Pro- said. "The club features our own lar will be even greater as inflation only" suit in New Orleans May 30.
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