Golf's Benefit to Iowa

The Iowa Golf Course Owners Association is an association of golf course owners and affiliated industries from across Iowa, each with a variety of sizes and organizational structures.  There are currently 425 golf courses in Iowa, with at least one course in each of Iowa’s 99 counties.  Per capita, Iowa leads the nation in golf courses. 

Each golf course adds value to Iowa in many ways: 

Economic Impact
Each golf course is a small business that provides employment to numerous Iowans, such as Golf Course Superintendents and staff, Food & Beverage Managers and staff, General Managers, PGA Professionals and many others. Currently, over 80,000 Iowans are employed in the Turfgrass Industry. (Iowa Agricultural Statistics Service Room 833, 210 Walnut Street, Des Moines, Iowa 50309-2195) View the survey results at: http://www.iowaturfgrass.org/survey/surveyhome.htm Specific information on employment in Iowa is located at: http://www.iowaturfgrass.org/survey/wordformat/generalstats.doc 

Each golf course is an economic driver in its community, as hotels, restaurants, and other businesses benefit from having those golfers spend their dollars in that community. Nationally, Golf Courses generate $20.5 billion in direct revenue and $62 billion in all associated economic activity in each community (numbers from Golf 20/20 and World Golf Foundation). More information at: www.golf2020.com/economicresearch.asp.  Further, golf courses add value to real estate that adjoins and fronts golf course property and adds valuable tax dollars to that community. 

Tourism & Tournaments
Each golf course generates significant tourism dollars for Iowa, as each course is a destination attraction that complements and showcases the beauty of our state. Nationally, golfers spend about $26.1 billion a year on golf travel, 75 percent of which goes to the hotel, transportation and food and beverage industries. (National Golf Foundation – www.ngf.org).  With the relatively low greens fees paid by Iowans, we attract golfers from all over the Midwest who praise our courses back in their states. The Iowa Golf Association website has a list of Iowa Golf Tournaments at: http://www.iowagolf.org/tournamentlist.asp  For list of IGA Sponsored events visit: http://www.iowagolf.org/HTML/Championships/index.htm 

Recreation in Iowa
Golf courses provide the state with recreational Greenspace. According to almost every study, this is a highly desired commodity for attracting people to move to Iowa and to remain here.  We have more valuable Greenspace than other states and we need to promote it.   

Golf courses both private and public, give a lot back to their communities.  Each course hosts a number of charitable fundraising outings that they give the use of the golf course for each year.  In addition, many courses allow the local high school golf teams to use their facilities at no cost or a greatly reduced cost.

Threats & Challenges We Face
However, the golf course industry in Iowa is threatened and has some extensive challenges to overcome in order to survive. Golf courses pay taxes like other businesses, but each golf course is impacted greatly by its property taxes and assessments.  In fact, property taxes are the largest portion of a golf course’s overall budget second only to salaries/wages. Why is this? The history of most courses is telling. 

The history of the vast majority of golf courses in Iowa is that a farmer decided to convert his farmland to a golf course. When completed, most county assessors reclassified that land to commercial property rather than agricultural land despite virtually no change in the condition and use of the land.  The result is correspondingly much higher property taxes to be paid for the same use by the landowner. This change is patently unfair and needs to be corrected.

Assessment of Golf Course Property
A further hurdle golf courses face is that there is a great discrepancy amongst counties when it comes to assessing golf courses in Iowa.  Some assessors classify golf courses as agricultural land while others do not.  Further, the problem is exacerbated because there are no set standards or guidelines for assessors to follow when assessing golf courses. The end result is vastly different assessments and taxes to be paid depending on which county the course is located in.  This is obviously unfair and must be corrected.

Call to Action
These problems can be corrected.  First of all, the classification of golf courses must be addressed.  Because these golf courses remain in the same condition as when they were agricultural land, they should be reclassified as agricultural land for property tax purposes.  Alternatively, the legislature should create a new classification and assessment for recreational Greenspace that includes land such as golf courses, private parks, and other lands that are truly for recreational purposes.  Finally, county assessors must be provided with some uniform guidelines to follow in assessing these properties so that the discrepancies amongst counties are removed. 

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