I-Team: "Big E" tax payments

WEST SPRINGFIELD, Mass. (WWLP) - The "Big E" makes millions of dollars a year, but gets some significant tax breaks.    
 
The 22News I-Team discovers whether a casino could benefit from the "Big E's" tax status.

The I-Team found the "Big E" has some perks Hard Rock won't be able to take advantage of.  

The Eastern States Exposition is a not for profit charitable organization in West Springfield.  It doesn't have to pay taxes on all of its property.  Now Hard Rock wants to put a casino on part of its land.  

The 22News I-Team investigated what that would mean for the "Big E's" tax status.  The I-Team went to the West Springfield Tax assessor's office.  We discovered West Springfield isn't collecting close to $700,000 due to the Big E's tax exempt status on more than $21 million of its appraised property value.

Gene Cassidy is the "Big E's" CEO, "Everything that we do that is outside of our charitable origins, we have to pay taxes on."

The “Big E” doesn't have to pay taxes on the state buildings, they belong to their respective states.  Also, the historic buildings on the village green and the West Springfield fire house are exempt.  West Springfield did bill the "Big E" more than $410,000 for property taxes last year.    

“We happen to be the 4th or 5th largest tax payer in the town of West Springfield anyways, which most people are probably unaware”, says Cassidy.

Cassidy told the 22News I-Team they do get a tax discount for the land around Gate 9 because they only use it for parking during the “Big E”, but Hard Rock would be taxed in full.

“The parcel of land that we're talking about is a open field and is taxed at a primarily low rate because it is used for the fairgrounds for parking.  We don't use it for anything else”, says Cassidy.

The “Big E” pays more than $43,000 for that parcel of land.  Hard Rock would have to pay at least $16 Million in property taxes a year or about 20 percent of the town's budget based on a state minimum $500 million casino    Greg Neffinger is the Mayor of West Springfield.  

(Are their negatives that come with that influx of Millions of dollars?)

“I think is it sustainable?  Is that amount of money really realistic?  When the money comes in, our tax base or our tax rate will probably drop.  That money also drops”, says Neffinger.  

Cassidy says Hard Rock won't be able to latch on to the “Big E's” not for profit designation.

“They will be a significant taxpayer and its completely unrelated to any tax exemption the Eastern States Exposition carries”, says Cassidy.

Overall In 2011, The “Big E” paid West Springfield more than $1.3 million.  This includes taxes, fire and police protection, licenses and fees.  According to its tax forms, the “Big E” made more than 1.7 Million in profit in 2010.