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Talk of hotel tax hike has Mary Kay seeing red
Fort Worth Star Telegram ^ | January 29, 2004 | Eva-Marie Ayala

Posted on 01/29/2004 12:36:36 PM PST by PAR35

DALLAS - Cosmetics giant Mary Kay Inc. is threatening to have its conventioneers hop in their pink Cadillacs and head west if voters approve an increased hotel tax to pay for a new Cowboys stadium.

Mary Kay annually hosts one of the largest conventions in the city, bringing nearly 53,000 people to five three-day conferences that pump more than $115 million into the Dallas economy.

The Cowboys would like to use recent legislation that allows Dallas County to levy additional taxes on car rentals and hotel rooms to help pay for a proposed $1 billion stadium complex. If approved by voters, Dallas' hotel tax rate would rise from 15 percent to what officials said would be the highest in the nation at 18 percent.

But David B. Holl, president of the Dallas-based cosmetics company, sent to Dallas Convention & Visitors Bureau officials last month a letter stating that Mary Kay will "steadfastly oppose" raising the taxes. An increase would force the company to move the conventions from its home of 40 years and look elsewhere, possibly the new Gaylord Texan Resort & Convention Center in Grapevine, the letter stated.

"Each of our independent sales force members owns her own business and, consequently, pays her own way to attend our Dallas meetings," Holl wrote. "Being subject to an 18 percent hotel/motel tax when there are so many competing lower cost alternatives presents an unnecessary hardship for the small business owners who sell our products."

In his letter, Holl said responsible meeting planners would have to consider the high tax rate in their site selection. He said the Gaylord facility, which would be the area's largest hotel when it opens April 2, will have a 12 percent tax rate.

"We hope you can see that a successful referendum to increase the hotel/motel tax will have a far-reaching and negative financial impact on our city's convention and meeting business," he wrote.

The letter has many officials concerned.

"This would be devastating to the city," said Phillip Jones, Dallas Convention & Visitors Bureau president and chief executive officer.

The bureau does not have an official position on the new stadium plan because final details have not been determined, but Jones said Holl's letter is bringing to light what reality might be like if it moves forward.

"We are not opposed to the project -- a $1 billion stadium in Dallas would be good for the area," he said. "Our concern is the funding mechanism that will be used."

Dallas County commissioners, who would be the Cowboys' public partner in the deal, are worried about losing such convention business. They will have to weigh it against the benefits of building a stadium as they make their decisions, County Judge Margaret Keliher said.

"It's going to be an economic decision for us," she said. "If Mary Kay pulled out of Dallas, that would certainly affect the economics. That's a consideration that we'll have to take into account as we decide what to bring to the voters."

The leading sites for the stadium complex are the Las Colinas area in Irving and along the Trinity River, south of downtown Dallas.

Keliher said she is not surprised by Mary Kay's reaction and expects more from the company. But she emphasized that the final details of the stadium deal have not been determined.

On Monday, Keliher said, commissioners will have a closed meeting to discuss various aspects of the stadium proposal, including how much public money should be used, as well as other funding sources.

A spokesman for the Cowboys could not be reached to comment Wednesday.

Dallas Mayor Laura Miller, who has been a vocal opponent of the current plan, said she is encouraged to know that the commissioners will discuss other funding options, which she said should include taxing the stadium's parking or tickets so that users of the facility help pay for the building.

Miller said it is heartbreaking that one of the city's largest corporate residents, which she said does many good deeds for the city, would leave its home to stage conventions because it is too expensive.

"The message is clear that one of our biggest conventioneers, Mary Kay Cosmetics -- they bring 52,000 women in our city every July -- is not happy, and we want to keep those pink ladies happy," Miller said.


TOPICS: Business/Economy; Front Page News; Government; US: Texas
KEYWORDS: corporatewelfare; dallascowboys; marykay; stadium
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Mary Kay vs. Jerry Jones.
1 posted on 01/29/2004 12:36:37 PM PST by PAR35
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To: PAR35
I must say, good for Mary Kay. If the rich corporate execs want their nice skyboxes let them pay for it.
2 posted on 01/29/2004 12:38:43 PM PST by dfwgator
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To: PAR35
If approved by voters, Dallas' hotel tax rate would rise from 15 percent to what officials said would be the highest in the nation at 18 percent.

I will never understand why the average citizen has to fund a multi-million dollar stadium so that multimillionaire football players can chase an oblonged ball down a field and charge the average citizen through the nose to watch the event.

3 posted on 01/29/2004 12:45:58 PM PST by 2banana
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To: PAR35
Good to see some muscled & vocal opposition to these confiscatory hotel & motel taxes.
4 posted on 01/29/2004 12:52:15 PM PST by elli1
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To: 2banana
One definition of football:

22 men who desperately need a rest being watched by 80,000 fans who desperately need exercise.
5 posted on 01/29/2004 12:56:55 PM PST by taxcontrol (People are entitled to their opinion - no matter how wrong it is.)
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To: dfwgator
The fairer approach would be for the City to impose an extra hotel tax on the 8 days the Stadium will be in use. They could also assess the spectators a 30% tax on the admission price of their ticket. My guess is Jerry Jones would object because he would fear a loss of attendance due to excessive prices. Good for Mary Kay letting Dallas know there are more businesses in town than the NFL.
6 posted on 01/29/2004 12:58:24 PM PST by Sgt_Schultze
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To: elli1
Hotel & Motel taxes are taxation without representation. It's just a way to shakedown visitors to cities, who can't vote.
7 posted on 01/29/2004 12:59:52 PM PST by You Dirty Rats
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To: You Dirty Rats
It's just a way to shakedown visitors to cities, who can't vote.

Oh they'll vote alright...with their dollars.

8 posted on 01/29/2004 1:01:56 PM PST by dfwgator
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To: elli1
Absolutely agreed. I find hotel taxes to be among the most egregious shakedowns there are. Hotels undoubtedly already pay property taxes to the county where they are sited to pay for the services used. There is no justification for these taxes other than to gouge the traveler who is supposedly coming to the town to spend money anyway.
9 posted on 01/29/2004 1:03:54 PM PST by Attention Surplus Disorder (You get more with a gun and a smile than just a smile itself!)
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To: Sgt_Schultze
53,000 women for 3 seperate meetings. 9 days with 53,000 paying visitors. that is almost the same as the cowboys produce and we don't need to worry about a 600,000 million dollar building. looks like someone needs a math lesson.

as a matter of fact they use the convention center and they use thousands of hotel rooms which are not used during a cowboy game. I think the pink ladies do more for the city than the cowboys.

10 posted on 01/29/2004 1:20:16 PM PST by q_an_a
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To: MeekOneGOP
Ping for Texas entrepreneurs fighting back against the tax Nazis.
11 posted on 01/29/2004 1:24:06 PM PST by anymouse
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To: PAR35
If Dallas could only tax stupidity, it would break Jerry Jones and balance its budget in the same stroke.
12 posted on 01/29/2004 1:25:22 PM PST by mywholebodyisaweapon
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To: 2banana
yea if it's such a great investment and helps the economy so much then why don't the fatcats instead of the taxpayers pay for it...
13 posted on 01/29/2004 1:28:55 PM PST by Republicus2001
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To: mywholebodyisaweapon
It don't matter to Jerry, he'll eventually find another sucker, I mean city, that will kowtow to him.
14 posted on 01/29/2004 1:31:15 PM PST by dfwgator
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To: Sgt_Schultze
The fairer approach would be for the City to impose an extra hotel tax on the 8 days the Stadium will be in use.

The fairest approach of all would be to have the stadium's tenants pay sufficient rent on the damned thing to pay it off.

One of the major (though relatively unheralded) factors in Jesse Ventura's victory in the governor's race in Minnesota a few years ago was his steadfast opposition to the use of public funds to build venues for the state's professional sports teams. His most effective campaign slogan in that regard: "If the Minnesota Timberwolves can sign players to $100 million contracts, then they can pay for their own arena."

15 posted on 01/29/2004 1:33:54 PM PST by Alberta's Child (Alberta -- the TRUE North strong and free.)
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To: dfwgator
Yeah, you're right. Jones is stupid like a fox.
16 posted on 01/29/2004 1:35:33 PM PST by mywholebodyisaweapon
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To: PAR35
If I were Mary Kay, I would tell Dallas that not only will they not raise the hotel tax, they will lower it to the 12% charged in Grapevine or the conventions will move to the Gaylord center.
17 posted on 01/29/2004 1:41:18 PM PST by Orbiting_Rosie's_Head
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To: PAR35
Socialism stinks as much on the municipal level as it does on the state or Federal levels. Why does the taxpayer have to certain forms of entertainment, such as professional sports and "public" TV? As much as I despise the content and news reporting of the major networks and the liberal newspapers and magazines, at least they don't try to steal my money. If Michael Eisner and Rupert Murdoch can keep their hands out of my pockets, so should Jerry Jones and Mark Cuban (owner of the Dallas NBA franchise).
18 posted on 01/29/2004 1:42:29 PM PST by Wallace T.
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To: PAR35
Don't be surprised to hear the Texas state legislature jumping into the fray, if it's a proposal to raise taxes. Then, Mary will just have to go to Oklahoma.
19 posted on 01/29/2004 1:47:10 PM PST by azhenfud ("He who is always looking up seldom finds others' lost change...")
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To: dfwgator
The Cowboys would like to use recent legislation that allows Dallas County to levy additional taxes on car rentals and hotel rooms to help pay for a proposed $1 billion stadium complex.

Much more to the story than what is told. Houston raised hotel taxes and car rental tax saying "Local citizens will not have to pay for the tax". Only to find out later that any rental is taxed including equipment rental.

Some Examples:

1. Homeowner rents a carpet cleaning machine: pay for the statium tax.

2. Hire a contractor to build your house and he rent heavy equipment: pay the stadium tax.

3. Have a auto accident or car stolen. The insurance company pays the stadium tax and included the cost into insurance rates.

20 posted on 01/29/2004 1:51:36 PM PST by Orange1998
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