HCS HB 1786 -- INCOME TAX CREDIT TO ATTRACT SPORTING GAMES AND
EVENTS

SPONSOR:  Jones (89)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 9 to 3.

This substitute authorizes an income tax credit for the eligible
costs, as specified in the substitute, for bringing eligible
events such as conventions or sporting games to Missouri.
"Eligible event" is defined in the substitute and is based on
population characteristics of the areas where the events will
occur.  In order to receive the tax credit, the Department of
Economic Development must certify the applicant's game or event
support contract between the applicant and a site selection
organization.  These organizations are specified in the
substitute and include the National Collegiate Athletic
Association (NCAA) and the United States Olympic Committee
(USOC).

Within 60 days of the conclusion of the game or event, the
department, in consultation with the Director of the Department
of Revenue, must determine the amount of tax revenues which is
directly attributable or related to the game or event.  Within 60
days of receiving documentation from the applicant of the
eligible costs, the Department of Economic Development will issue
a refundable tax credit equal to 100% of the eligible costs or
90% of the tax revenues within the market area which are directly
attributable to the game or event, whichever is less.  The
applicant must submit evidence of the eligible costs within 60
days of the conclusion of the game or event.

No more than $10 million of these tax credits can be issued by
the department in any fiscal year, and the credit may be
transferred or sold.  The department is also limited to issuing
no more than 75% of total tax credits for game promotion and no
more than 25% of total tax credits for event promotion.  Support
contracts cannot be certified by the department later than six
years from the effective date of the substitute; however, the
department can certify contracts during this six-year period for
games that will be held more than six years from the effective
date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $63,561
to $10,063,516 in FY 2011, $71,751 to $10,071,751 in FY 2012, and
$73,903 to $10,073,903 in FY 2013.  No impact on Other State
Funds in FY 2011, FY 2012, and FY 2013.

PROPONENTS:  Supporters say that the bill will allow Missouri to
compete with states such as Ohio and Texas that use similar tax
credits to attract games and conventions.  Non-profit
organizations bear significant risk in attracting and hosting
large events and need help to continue attracting prominent
events to Missouri.  Tax credits will be awarded after the fact
and will be based on the addtional tax revenues generated by the
event or game.  Major sporting events at the college and amateur
level have provided over $228 million since 1994.  Missouri is
now at a competitive disadvantage in competing to host games.

Testifying for the bill were Representative Jones (89); St. Louis
Sports Commission; and Doug Elgin, Missouri Valley Conference.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that it would be
useful to expand the bill to include all types of conventions and
events.  It would also be good to allow for smaller event credits
in small communities and allow audit mechanisms to ensure
accuracy.

Testifying on the bill were St. Louis Convention and Visitors
Commission; and Kitty Ratcliffe, St. Joseph Convention and
Visitors Bureau.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm