Senate approves phased sales-tax exemption for Lagoon after heated debate

The Senate on Feb. 27 took up first substitute House Bill 110, which would provide a narrowly tailored sales-tax exemption for destination amusement parks and phase in the fiscal impact over two years.

Sponsor remarks stressed parity with exemptions already provided to ski resorts, the high capital-reinvestment needs of the amusement-park operator Lagoon, and the park’s role as a major youth employer. Senator Taylor described Lagoon as "a great place for kids to come and to work" and highlighted scholarship contributions and annual reinvestment; supporters also pointed to double‑taxation concerns when parks pay sales tax on equipment and then charge sales tax on tickets.

Opponents framed the measure as an instance of corporate welfare. Senator Millie Peterson said she "cannot support this type of continual corporate welfare," arguing that workers and low-income families would effectively subsidize a tax break for an established business. Senator Petersen and others warned the exemption could set a precedent prompting other venues (7 Peaks, Saratoga Park, Wild Wave) to seek similar treatment.

Senators debated the fiscal scale and phase‑in formula; the first substitute reduced the immediate fiscal impact by phasing benefits at 54% in year one rising to 100% in year two and included a governor‑requested review date. Following a call of the Senate and roll-call vote, the Senate recorded the substitute as passing: 16 aye votes, 9 nay votes, 4 absent. The bill was sent back to the House.

Senators on both sides emphasized local economic arguments — jobs and capital reinvestment for advocates, fairness and precedent concerns for opponents — and several asked staff to provide exact fiscal numbers for the state revenue impact prior to final enrollment.