[Vision2020] RE: Co-op pays taxes

Thu Jul 7 11:48:21 PDT 2005

Bill

My last to you was offlist, but as you want to put this on list I will 
respond in that venue.

I do not want to get into a p-ss fight.  I think that the Co-op is a good 
organization and does a commendable job.

The point is simple.  If you are not for profit, you do not make money and 
that being the case, you do not contribute taxes.  Those seeking a higher 
tax revenue base from the downtown area are suggesting that people pay their 
'fair share' and that those who do not pay taxes in the downtown area are 
some how getting a free ride.

NSA, the Eagles, Goodwill and all the rest pay taxes on employee wages.  
Where applicable, they pay sales taxes.  The issue is property taxes, which 
you point out that the Co-op as a renter pay for the property owner through 
your lease payments.  You pay no income tax, since you are not for profit 
any more than the other organizations do.

So why are you in downtown?  Obviouosly because the location and the price 
of rentals and or property values make that area ideal to serve the purpose 
of your customer base.

You see Bill, I see having the Co-op and Goodwill in Downtown as a good 
thing, even though they do not generate large sources of tax revenue.  You 
provide a worthwhile service in a location that is readily accessible to the 
bulk of the walking and bike riding population, in addition to serving other 
goods as the community minded organizations that you are.

But if the purpose of zoning is to maximize revenues from retail shopping 
space in the Main Street area, than Goodwill and the Co-op and the 
Kenwoirthy and all the rest of the things that are desirable goals 
otherwise, do not fit the bill any better than does NSA.

Frankly, I would be extremely supportive of seeing that the Co-op got tax 
exempt status, because I think that it is a very significant engine for one 
of the possible legs of economic development here.  Organic farming as a 
means of providing value added agricultural products has value in and above 
any of the few dollars that flow to city coffers from the tax that your 
leasor pays.  I do not see the ten or fifteen grand a year in property taxes 
generated as having anywhere near the economic benefit of having the Co-op 
exactly where it is.

But the fortunes of downtown are mainly dictated by what other things we do 
to bring in the required tax revenues we need to support this city.  
Downtown, even if fully stocked with retail outlets, is not going to bring 
in the money needed for the budget required.

Phil Nisbet

>From: "Bill London" <london at moscow.com>
>To: "Phil Nisbet" <pcnisbet1 at hotmail.com>
>CC: <vision2020 at moscow.com>
>Subject: Co-op pays taxes
>Date: Thu, 7 Jul 2005 10:57:36 -0700
>
>P-
>No. The Moscow Food Co-op is not tax exempt
>While the Co-op is a not-for-profit store (no owner/shareholder dividends
>are paid) so "profits" are put back into the store in new equipment or 
>lower
>prices, etc.  Thus the Co-op directly benefits its 3,500 members.
>But the Co-op is not tax-exempt and has never applied for any IRS exempt
>designation.
>BL
>
>
>
>----- Original Message -----
>From: "Phil Nisbet" <pcnisbet1 at hotmail.com>
>To: <london at moscow.com>
>Sent: Thursday, July 07, 2005 10:45 AM
>Subject: Re: [Vision2020] Varying Visions
>
>
> > Bill
> >
> > Did the Coop not file for any sort of Tax exempt status?
> >
> > You see, I have no problem with the Coop or any other of the entities 
>down
> > there.  Frankly, its a business with a community good.
> >
> > Phil
> >
> > >From: "Bill London" <london at moscow.com>
> > >To: "Phil Nisbet" <pcnisbet1 at hotmail.com>, <thansen at moscow.com>
> > >CC: <vision2020 at moscow.com>
> > >Subject: Re: [Vision2020] Varying Visions
> > >Date: Thu, 7 Jul 2005 10:41:20 -0700
> > >
> > >P-
> > >You are wrong about the Moscow Food Co-op.  The Co-op pays all relevant
> > >taxes.
> > >The Co-op does not own its building so it only pays property taxes
> > >indirectly through its rent.
> > >The Co-op pays all the usual sales and employee taxes.
> > >BL
> > >
> > >
> > >
> > >----- Original Message -----
> > >From: "Phil Nisbet" <pcnisbet1 at hotmail.com>
> > >To: <thansen at moscow.com>
> > >Cc: <vision2020 at moscow.com>
> > >Sent: Wednesday, July 06, 2005 9:54 PM
> > >Subject: RE: [Vision2020] Varying Visions
> > >
> > >
> > > > Tom,
> > > >
> > > > How about enlightening me about why you are upset with them and not
>with
> > >a
> > > > tax exempt store operating in the same zone, to whit, The Moscow 
>Coop?
> > >If
> > > > the issue is having tax paying entities in the Downtown area, then 
>is
>it
> > > > good to have Gart's taken over by a non-tax paying store like the
>Coop?
> > > > Should we be looking at driving the Non-tax paying Goodwill from the
> > > > confines of Main Street?  How about the Eagles or the Moose or the
> > >Masons?
> > > >
> > > > The thing that I am trying to suggest to you Tom, is that these tax
> > >exempt
> > > > entities are moving into downtown because its cheap.  Its cheap
>because
> > > > there is not a whole lot of economic activity.
> > > >
> > > > On the Fourth of July in almost any other town USA, Main Street is
> > >swarmed
> > > > with Parade crowds, stores having sales, street fairs and the rest.
>The
> > > > weekend of the Fourth was deathly quiet here.
> > > >
> > > > How do we keep all of downtown from being swallowed up by people who
>are
> > >not
> > > > tax paying?  How about gettting some economic activity generated?  
>If
> > >there
> > > > was demand because we had people making good money and willing to
>spend
> > >it,
> > > > then there would be no problem either generating tax revenues or
>seeing
> > >that
> > > > the price and cost of those buildings would not just keep them in
>paying
> > > > owners hands, but the Non-payers would look to sell and move.
> > > >
> > > > So, please, instead of bickering, lets look at what we can all find
> > > > acceptable in terms of industry and how we can attract it.  Lets 
>stop
> > >saying
> > > > that its the bad old legislature in Boise and start thinking of ways
>to
> > > > build legislative coalitions to increase U of I activity and chances
>for
> > > > grants.
> > > >
> > > > Phil Nisbet
> > > >
> > > > PS, Tom, I walk down to downtown to shop and hit the resteraunts all
>the
> > > > time.  I live where I do so that I have no need to drive to be in 
>the
> > >Heart
> > > > of Moscow.
> > > >
> > > > >From: "Tom Hansen" <thansen at moscow.com>
> > > > >To: "'Phil Nisbet'" <pcnisbet1 at hotmail.com>, 
><vision2020 at moscow.com>
> > > > >Subject: RE: [Vision2020] Varying Visions
> > > > >Date: Wed, 6 Jul 2005 19:35:09 -0700
> > > > >
> > > > >Mr. Nisbet stated:
> > > > >
> > > > >"Take a walk downtown, for those who insist that all is well in
> > >Mudville.
> > > > >Shops are not exactly vibrant or Garts, the bridal shop, the old
>silver
> > > > >shop
> > > > >and a bunch of other businesses would not have closed down and 
>moved
> > > > >elsewhere."
> > > > >
> > > > >And your option would be to grant Main Street addresses to 
>tax-exempt
> > > > >entities like NSA?
> > > > >
> > > > >Please enlighten us, Mr. Nisbet.
> > > > >
> > > > >Tom Hansen
> > > > >Moscow, Idaho
> > > > >
> > > > >"Life should NOT be a journey to the grave with the intention of
> > >arriving
> > > > >safely in an attractive and well preserved body, but rather to skid
>in
> > > > >sideways, chocolate in one hand, a drink in the other, body
>thoroughly
> > >used
> > > > >up, totally worn out and screaming 'WOO HOO. What a ride!'"
> > > > >
> > > > >
> > > >
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