Posted on 01/09/2005 10:08:57 PM PST by 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
(Excerpt) Read more at dailyinterlake.com ...
What morons. What else can they possibly tax? How is this helping to spur on new business?
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.
How about that lady from the DMV trying to get us to be Taxed by the Mileages we put on the car vs yearly?
LOL that's news to me but she'd be a moron too.
The only ones feeling the pressure are the taxpayers. This tax proposal is just an excuse for the Legislature to continue to squander what little money is already in the budget.
LOL seriously it was circulating around for a while on here, i don't know what ever became of it.
In the last session the Legislature had thought of taxing fast food, junk food, and soft drinks.
How about a catchall fun tax?
Don't give 'em ideas. :P LOL
My first prediction after the Democrat wins this last election was that we'd start hearing a lot about how badly money was needed for education. Under the Democrats education will get a lot more expensive but not any better. Take a look at California. With the Dims money for education is a religion.
Walmarts, KMart and Costco ought to shut down until the vote.
HA!
Costco is a huge contributor to the democrats.
This is sweet.
I'm from California, so I know "stupid" when I see it.
I always believed that red states had better sense. Is Montana red? I can't remember.
Guess the Montanans still haven't figured out the smoke and mirrors game here: Businesses like these never pay increased new taxes. Their customers do. The businesses just collect the taxes for the cockroaches as increased prices. Forever. Or until the tax is repealed. Whichever comes first.
How irredeemably dumb do you have to be to not see that?
I see a $60 million reduction in tax revenues when larger existing businesses (lower prices) start fleeing across the state line.
...where did all the businesses go? Hellllooooo ?
It's typical Liberalism. Throw money on the problem and hope the problem goes away.
Wal-Mart will be able to afford this, if indeed it goes through. I look at a proposed Super Wal-Mart in Minot, North Dakota. The city of Minot said Wal-Mart could build a Super Wal-Mart within the city limits as long as Wal-Mart paid for the street lights, signs, and paved highway to the proposed site.
Wal-Mart agreed, and the plans are going forward.
I fill scripts at Costco and buy "some" other items
from time to time, but I truly hate to give them my business.
I've driven by a number of Costco stores, but I have never set foot in one.
I typically shop at Wal-Mart for items such as toiletry items, household cleaning items, paper towels, toilet paper, soda pop, and hearing aid batteries. Each of these items I can buy in bulk and still save money. I could never buy in bulk and save money at the local grocery store.
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