Costco puts plans for new stores on hold

The Daily Interlake ^ | Jan 09, 2005 | JIM MANN

[claudiustg]

Costco has put a hold on plans to develop a new store in Kalispell, or new stores anywhere in Montana, because of a proposed tax on "box stores" that will be considered by the state Legislature, a Costco executive said Friday. "We feel this proposal is punitive against Costco and we are going to hold off on any additional investment in Montana until this is resolved," said Doug Schutt, chief operating officer for Costco's Northern Division.

Costco has yet to break ground on its new store at the Spring Prairie Center on U.S. 93 north of Kalispell, and construction probably could not get under way until spring anyway because of weather.

But Schutt said that if the bill passes the Legislature and is signed by the governor, "there is a good chance" that Costco will abandon the Kalispell store, which was expected to be almost twice the size of the current Costco store on U.S. 2 ...

...The bill, sponsored by Sen. Ken Toole, D-Helena, would impose a 1 percent tax on gross retail receipts between $10 million and $20 million; a 1.5 percent tax on receipts between $20 million and $30 million; and a 2 percent tax on receipts above $30 million.

The bill would impact other large retailers such as Wal-Mart, Kmart and ShopKo, along with dozens of grocery stores, according to Brad Griffin, a lobbyist for the Montana Retail Association, a group that has already staked out vigorous opposition to the legislation.

A similar measure, defeated in the 2003 session by a narrow 26-24 vote in the Senate, was projected to raise roughly $60 million annually for the state.

Because of the Senate's current makeup of 27 Democrats and 23 Republicans, Griffin speculates the bill could easily clear the Senate hurdle this time around

[Skibane]

Typical democrats. The extra money their state would get in property and sales tax alone would be more than if Costco didn't move in.

The irony of the situation: Costco's management was outspoken in its support for Kerry during the last election, and has grandstanded for union causes on numerous occasions. They've also taken a hard line against the legal carrying of concealed firearms in their stores – doesn't "enhance the shopping experience", according to company spokesmen.

Alas, it's hard when Socialist is pitted against Socialist...Ya honestly don't know who to root for! :-D

[claudiustg]

Well, I just hope the voters can associate that lightness in their wallets with the Democrats they just put in office!

[lewislynn]

Businesses like these never pay increased new taxes. Their customers do

Both you and the Democrats think that way but someone forgot to tell that to COSTCO. I guess that's why they don't want to build anymore stores there.

[monkeyshine]

What else can they possibly tax?

Well poll taxes are definitely out. But they can try calling them fees and see if they can get away with it for a while.

[conservativecorner]

Costco is a 100% blue state/Dim contributor. I don't buy from them for this very reason.