If private health clubs get tax exemption, the floodgates will open

"Let’s be clear. The reason a community provides public swimming pools, parks, tennis courts and programs is so that the general public has access to such amenities either free or at an affordable cost. This is what it means to serve the greater good."

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Opinion

March 25, 2021 - 8:45 AM

We can see the headline now: “Community Rec program has unfair advantage; steals clients from private health clubs.”

That’s the argument Lynn Jenkins, yes, our former Congresswoman-turned-lobbyist, is wanting Kansas legislators to swallow.

Jenkins represents Genesis Health Clubs, a Wichita-based chain that is banking she can convince legislators to excuse it from paying property taxes. 

Not that it’s paying its property taxes. Genesis is on record for owing $549,000 to Shawnee, Johnson and Douglas counties in back tax charges.

UNLIKE A PUBLIC recreation department, Genesis is very much a for-profit industry, with more than 57 clubs scattered across six states. It is the largest health club operation in the Midwest. 

So why should it get a break?

Because, according to Jenkins, “their competition isn’t private-sector clubs, but government-owned health clubs that pay no taxes at all.” 

Notice the “government-owned” jab.  As if municipally funded rec departments were some form of socialism.

Let’s be clear. The reason a community provides public swimming pools, parks, tennis courts and programs is so that the general public has access to such amenities either free or at an affordable cost. This is what it means to serve the greater good.

Not everyone, after all, has the means to pay dues to a private club. 

But the owners of Genesis, brothers Rodney and Brandon Steven of Wichita, probably wouldn’t know about that. In addition to their fitness empire, the brothers own 13 car dealerships, two professional hockey teams, and invest in real estate, restaurants, and insurance companies.

And they’re feeling put upon?

Cry us a river.

PROPERTY TAXES  also help support our schools, hospitals and local governments. According to a recent article by the Kansas Reflector, the Genesis outfit owes the city of Merriam $81,000 in annual property taxes. Of those funds, $36,000 go to local public schools. 

If private clubs like Genesis did not pay their property taxes, the damage to communities statewide would be in the millions.

And if legislators allow a for-profit business to duck its tax obligations, then they have no choice but to provide the same privilege for every privately operated business.

P.S. 

Jenkins added that Genesis should also be exempt from paying sales taxes.

That second request, she intimated, is in the pike.

Legislators should stop this movement in its tracks and vote no on House Bill 2445.

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