Repeals certain tax incentives for professional sports teams

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1686
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR MCCREERY .
7292S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 100.240, RSMo, relating to the repeal of certain tax incentives for professional
sports teams.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 100.240, RSMo, is repealed, to read as 1
follows:2
[100.240. 1. This section shall be known 1
and may be cited as the "Show-Me Sports 2
Investment Act". 3
2. The state of Missouri, acting through 4
the department and the office of administration, 5
may, upon such terms and with reasonable 6
consideration as it may determine, subject to 7
appropriation, expend funds for the purpose of 8
aiding and cooperating in the planning, 9
undertaking, financing, or carrying out of an 10
athletic and entertainment facility project for 11
which application is made to the department and 12
approved by the director and the commissioner. 13
3. As used in this section, the following 14
terms shall mean: 15
(1) "Athletic and entertainment facility", 16
structures, fixtures, systems, and facilities of 17
sports and entertainment venues with seating 18
capacity of more than thirty thousand, including 19
associated parking facilities, and that the 20
director and commissioner determine is a 21
contributing factor in the attraction or 22
retention of sports, recreational, or 23
entertainment activities, whether professional, 24
commercial, or private, and a primary factor in 25
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the retention of a professional sports franchise 26
in the state. An athletic and entertainment 27
facility may include a professional sports 28
franchise's headquarters facility and training 29
facility, regardless of whether they are co- 30
located in or adjacent to the stadium, but still 31
located within the state. Such structures, 32
fixtures, systems, and facilities may include, 33
but are not limited to, foundations, roofs, 34
interior and exterior walls or windows, floors, 35
steps, stairs, concourses, hallways, restrooms, 36
event or meeting spaces or other hospitality- 37
related areas, concession or food preparation 38
areas, or services systems such as mechanical, 39
gas utility, electrical, lighting, 40
communication, sound, sanitary, HVAC, elevator, 41
escalator, plumbing, sprinkler, cabling and 42
wiring, life-safety security cameras, access 43
deterrents, public safety improvements, or other 44
building systems; 45
(2) "Baseline year", the calendar year 46
prior to submission of an application to the 47
department under this section; 48
(3) "Baseline year state tax revenues", 49
the state tax revenues derived directly from the 50
operations of the athletic and entertainment 51
facility of the professional sports franchise, 52
including vendors and tenants located in the 53
athletic and entertainment facility but 54
excluding all state tax revenues derived from 55
matches of the 2026 FIFA World Cup soccer 56
tournament which are held in any county with 57
more than seven hundred thousand but fewer than 58
eight hundred thousand inhabitants, during the 59
baseline year; 60
(4) "Board", the Missouri development 61
finance board created by section 100.265; 62
(5) "Commissioner", the commissioner of 63
the office of administration of the state of 64
Missouri; 65
(6) "Department", the Missouri department 66
of economic development created by section 67
620.010; 68
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(7) "Director", the director of the 69
department of economic development; 70
(8) "Lease", a lease agreement between the 71
professional sports franchise and the owner of 72
the athletic and entertainment facility, without 73
regard to options to renew the lease. For the 74
purposes of subdivision (5) of subsection 5 of 75
this section, in the event one component of the 76
athletic and entertainment facility has a 77
different end of the term of the lease date than 78
another component, the lease term that ends the 79
latest in time shall be applicable; 80
(9) "Professional sports franchise", any 81
professional sports team that is a member of 82
Major League Baseball or the National Football 83
League; 84
(10) "Project", the development, 85
construction, reconstruction, rehabilitation, 86
repair, or improvement of any athletic and 87
entertainment facility for which an application 88
is made and approved by the director and the 89
commissioner. A project must have total project 90
costs of at least five hundred million dollars 91
to be eligible for funding under this section. 92
Residential, commercial, retail, or mixed-use 93
development adjacent to an athletic and 94
entertainment facility shall not be included as 95
part of the project. All projects receiving 96
appropriations pursuant to this section shall 97
comply with the provisions of sections 290.210 98
to 290.340; 99
(11) "State tax liability", any liability 100
incurred by a taxpayer under chapter 143, 147, 101
or 148, exclusive of the provisions relating to 102
the withholding of tax as provided for in 103
sections 143.191 to 143.265 and related 104
provisions; 105
(12) "State tax revenues", the sum of the 106
following: 107
(a) The general revenue portion of state 108
sales tax revenues received under section 109
144.020, excluding sales taxes that are 110
constitutionally dedicated, taxes deposited to 111
the school district trust fund in accordance 112
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with section 144.701, sales and use taxes on 113
motor vehicles, trailers, boats, and outboard 114
motors, and future sales taxes earmarked by law; 115
(b) The state income tax withheld on 116
behalf of employees by an employer under section 117
143.221; and 118
(c) The nonresident professional athletes 119
and entertainers state income tax revenues as 120
set forth in section 143.183; 121
(13) "Tax credit", a credit against the 122
taxpayer's state tax liability, or which may be 123
transferred or sold as provided for in 124
subsection 7 of section 100.286. 125
4. Applicants shall submit an application 126
to the department containing all information 127
required by the department, including 128
information to ascertain the applicant's 129
baseline year state tax revenues. The director 130
and the commissioner shall review the 131
application for eligibility and may, in their 132
discretion, enter into an agreement as described 133
in subsection 2 of this section, provided the 134
agreement meets all other requirements of this 135
section. Notwithstanding section 32.057 to the 136
contrary, the department of revenue shall, 137
pursuant to an agreement as authorized by 138
section 610.032, disclose to the director and 139
the commissioner, or their duly authorized 140
employees, information from reports or returns 141
so that the baseline state tax revenues can be 142
verified. 143
5. Any annual expenditure by the state in 144
connection with an athletic and entertainment 145
facility project shall be subject to annual 146
appropriation and shall be no greater than an 147
amount equal to the baseline year state tax 148
revenues for the applicable professional sports 149
franchise's athletic and entertainment facility, 150
as stated in an agreement entered into between 151
the department, the office of administration, 152
and the applicant; provided, however, that: 153
(1) The term of state appropriations under 154
any such agreement shall not exceed thirty years; 155
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(2) The annual amount of the state 156
appropriation authorized under this section for 157
a project shall not exceed an amount equal to 158
the baseline year state tax revenues for the 159
athletic and entertainment facility of the 160
professional sports franchise for any fiscal 161
year; 162
(3) The net bond proceeds of any bonds 163
supported by annual expenditures by the state 164
under subsections 2 to 5 of this section for any 165
project shall not exceed fifty percent of the 166
total costs of the project; 167
(4) The director and the commissioner are 168
satisfied that there is sufficient public 169
investment made or to be made by units of local 170
government to support infrastructure or other 171
needs generated by the project; and 172
(5) For any athletic and entertainment 173
facility project for which funds are expended 174
under this section, if the owners of the 175
applicable professional sports franchise 176
relocate any of the professional sports 177
franchise, athletic and entertainment facility, 178
headquarters, or training facility, and if any 179
such facility is located in the state at the 180
time the application is submitted or is 181
constructed in the state as part of the project, 182
to another state during the term of the 183
agreement entered into under subsections 2 to 5 184
of this section, it shall be considered a 185
default event, and such owners of the 186
professional sports franchise shall repay to the 187
state general revenue fund: 188
(a) The amount of funds expended by the 189
state pursuant to such agreement through the 190
date of the default event; 191
(b) The total debt service remaining for 192
any outstanding bonded indebtedness for the 193
project that was to be paid from state revenues 194
under the agreement after the date of the 195
default event through the maturity date of any 196
such bonds or an amount sufficient to pay off 197
any such bonds; and 198
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(c) The amount of the tax credits issued 199
under subsection 6 of this section. If, 200
however, the default event occurs within five 201
years of the ending of the term of the lease, 202
then the owners of the professional sports 203
franchise shall be responsible for the total 204
debt service remaining for any outstanding 205
bonded indebtedness for the project that was to 206
be paid from state revenues under the agreement 207
or an amount sufficient to pay off any such 208
bonds, and for no other funds expended by the 209
state under the agreement nor for tax credits 210
issued under subsection 6 of this section. 211
6. (1) For the purposes of funding an 212
athletic and entertainment facility project as 213
described in this section, the board may, in 214
addition to the authority under subsection 6 of 215
section 100.286, authorize any taxpayer, 216
including any charitable organization that is 217
exempt from federal income tax and whose 218
Missouri unrelated business taxable income, if 219
any, would be subject to the state income tax 220
imposed pursuant to chapter 143, to receive a 221
tax credit in the amount of fifty percent of any 222
amount contributed in money or property by the 223
taxpayer to the infrastructure development fund 224
during the taxpayer's tax year, provided, 225
however, the tax credits awarded under this 226
subsection for an athletic and entertainment 227
facility project shall not exceed ten percent of 228
the amount of private investment in the athletic 229
and entertainment facility project or fifty 230
million dollars, whichever is less, and the 231
total of such tax credits may be issued over a 232
maximum of three calendar years, at the 233
discretion of the board. Such credit shall not 234
apply to reserve participation fees paid by 235
borrowers under sections 100.250 to 100.297. 236
(2) The portion of earned tax credits 237
which exceeds the taxpayer's tax liability may 238
be carried forward for up to five years 239
following the issuance year. 240
(3) The annual limits in section 100.286 241
shall not apply to tax credits issued under this 242
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subsection. Tax credits issued under this 243
subsection shall not count towards the annual 244
limits in section 100.286. 245
(4) The tax credits issued under this 246
subsection may be transferred or sold as 247
described in subsection 7 of section 100.286. 248
(5) If an athletic and entertainment 249
facility project receives tax credits under this 250
subsection, such athletic and entertainment 251
facility project shall not be permitted to 252
receive tax credits under section 100.286. 253
7. In addition to any other authority 254
granted under section 100.250, the board is 255
authorized to issue its bonds payable from the 256
annual expenditure by the state described in 257
this section to assist in the financing of an 258
athletic and entertainment facility project. 259
8. Notwithstanding any provision of law to 260
the contrary, contributions received by any 261
committee, as such terms are defined in section 262
130.011, may be used for any reasonable legal 263
fees incurred in defense of a legal proceeding 264
arising out of the official duties conducted 265
pursuant to this section by a holder of elective 266
office.] 267
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