Local and state officials question Six Flags tax filings for Ohio park

Posted | Contributed by Jeff

The reported worth of rides, equipment and other taxable items at the former Six Flags Worlds of Adventure amusement park dropped by more than 70 percent between 2002 and 2003, according to tax information recently received by the Geauga County Auditor's Office. The park reported personal property valued at nearly $13.6 million in 2002. That dropped to $3.8 million in 2003. The company is also contesting state taxes owed. These issues do not affect Cedar Fair, the current owner of the park, now called Geauga Lake.

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Sounds like somebody majored in Creative Accounting. I've heard of rapid depreciation, but that's just plain unbelievable. Even more so is did SF really expect to get away with it?

Yes, Six Flags, like all major corporations, think they can get away with anything.

For once, a company understating its value!

(disclaimer: my former employer)*** This post was edited by Olsor 9/18/2004 10:53:13 PM ***

That's a pretty unfounded generalization, CoastermanX.

Not all major corps think they can get away with anything. In fact some pride themselves on their clean records. CoastermanX, you need to go read the newspaper and stop listening to stereotypes.

I find it curious that the value of the park's property is so low in either case. 3.8 million? Didn't some of the park's coasters cost more than 3 times that amount to build?

I'm confused, does the property value just mean the land value? Then the rides' worth would be added onto that? Because if it was all inclusive then the figure would be absolutely ridiculous.

Generally, property taxes are affected by permanent improvements, i.e. buildings walkways, infrastructure,etc. Rides for the most part are not permanent. It would be interesting see what was claimed in 2002 and not in 2003. It sounds like they didn't include the value of any of the "pig iron".

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