Speak Out: Should Lockheed Pay Hotel Taxes On Training Center?
Debate over the lodging facility Lockheed operates for its Bethesda training center has emerged once again, The Washington Post reports.
The Maryland Senate has advanced a bill that would exempt Lockheed Martin from paying taxes on its Bethesda training center, The Washington Post reports.
If the measure is approved, Lockheed would be exempted from about $450,000 a year in taxes and the county could owe the Bethesda-based defense giant a $1.4 million refund, according to the report.
The bill would apply to Maryland companies that operate lodging facilities used only to support training or conference centers – a description Sen. Nancy J. King (D-Montgomery) said applied only to Lockheed, but for which other facilities may qualify in the future, The Post reported.
Sen. Bryan W. Simonaire (R-Anne Arundel) called the bill a “carve-out” for Lockheed Martin, according to the report.
Should Lockheed Martin have to pay hotel taxes on the lodging facility it operates for its conference center? Tell us in the comments.
Eric S.
3:13 pm on Monday, March 11, 2013
This is a tough one . . . On the one hand, I really hate seeing very specific exemptions like this for large corporations basically writing their own laws.
On the other hand, I used to work for LM, and this center really is just used for training and mostly other LM'ers to stay in the vicinity. Hell, unless things have turned around, I'm pretty sure they're losing money on the deal. And I know there's a policy that if you're within something like 30 miles of the place on LM business, you HAVE to stay there. So yeah, this means it pulls people away from VA and DC hotels and puts them in Bethesda. Those people are still eating out and doing other stuff in the area, so MD is still getting some money. And let's not forget that LM Corporate is in Bethesda also, and they have quite a few facilities here, so they pay other taxes.
It seems to be a trend for large companies to build these sorts of centers, and I know Deloitte has one in Texas where they steer a whole ton of major conferences and such. If this does prompt more of these in MD, well, it sucks for the hotels, but I'd imagine it's a wash for the state.
Ok, again, not defending my former employer in the least. I do think targeted tax breaks are akin to Satan, but this is one where I see both sides.