East Bay Express scribe Robert Gammon points out that per the lease terms, the A's can deduct the tax from the team's lease payment. The payment gets split between the City and County evenly, which means that the County takes the hit. That has caused Alameda County to sue Oakland to prevent the tax collection.
In the grand scheme of things, this is really pushing pennies around. The A's only pay $750k this year and next, and around $1 million the following two years. $2 isn't exactly 18.5% percent, so the A's will be "covering" the remainder. Oakland's budget deficit had been estimated to be around $60 million for this fiscal year until massive cuts were made last week. Let's take a look at the numbers:
- 42 games x 5,000 parking spaces x $2 = $420,000
- $750,000 lease payment - $420,000 tax deduction = $330,000 new lease payment
- Normal terms are $750,000 / 2 = $375,000 to City, $375,000 to County
- $330,000 / 2 = $165,000 to City, $165,000 to County
- City's final take is $420,000 + $165,000 = $585,000 (additional $210,000 revenue)
- County's final take = $165,000 (loss of $210,000 in revenue)
As far as the A's are concerned, it's roughly the same money going out. The tax will probably push some percentage of fans to either the BART lot or to use BART instead. Happy times, people!