HCS SS SCS SB 269 -- ATHLETES AND ENTERTAINERS TAX

SPONSOR:  Shields (Hoskins)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Urban Issues by a vote of 11 to 4 with 2 present.

This substitute requires the Department of Revenue to annually
estimate the amount of revenue collected from the nonresident
entertainer and professional athletic team income tax.  Once
collected, the revenue from the tax will be deposited into the
Nonresident Entertainer and Athlete Fund created by the
substitute.

For Fiscal Year 2007 and each fiscal year thereafter, an annual
allocation of 18% of the available amount of the total annual
estimate of revenue derived from the tax will be deposited into
the Missouri Arts Council Trust Fund.

For Fiscal Year 2007 and each fiscal year thereafter, 6% of the
available amount of the annual estimates of taxes generated from
the tax will be deposited into the Missouri Cultural Arts Trust
Fund.  Subject to appropriation, moneys in the fund will be
annually allocated as follows:  (1) 12.5% to the Negro League
Baseball Museum; (2) 12.5% to the St. Louis Black Repertory
Theater; and (3) 75% will be equally divided among 15 other
organizations listed in the substitute.

For Fiscal Year 2007 and each fiscal year thereafter, annual
allocations of 4% of the available amount of the total annual
estimate of revenue derived from the tax will be deposited into
the Missouri Humanities Council Trust Fund, Missouri State
Library Networking Fund, and Missouri Public Television
Broadcasting Corporation Special Fund.  The $10 million cap per
fiscal year on allocations made to the Missouri Arts Council is
removed.

Four percent of the available amount of the total annual estimate
of revenue will be placed into a subaccount, known as the
Missouri Sports Authority Subaccount, within the Nonresident
Entertainer and Athlete Fund.  The funds in the subaccount will
be allocated, conditioned upon local matching funds, as follows:
(1) 22% to the Springfield Sports Commission; (2) 16% to the
Joplin Sports Authority; (3) 8% to the Branson Sports Authority;
(4) 23% to the St. Charles County Convention and Sports Facility;
(5) 2% to the Lake St. Louis Unlimited Play, Handicap Accessible
Playground Facility; and (6) the remaining funds will be
allocated among cities with convention and visitors bureaus
operating sports marketing programs.  For Fiscal Year 2007, the
Joplin Sports Authority's allocation percentage will be
supplanted by a $400,000 grant from the subaccount with no local
match requirement.

The substitute provides that for Fiscal Year 2007 and each
subsequent fiscal year, the remaining 60% of the available amount
of the total annual estimate of revenue derived from the tax will
be distributed as follows: (1) 4% to the Negro League Baseball
Museum; (2) 5% to the State School Moneys Fund; and (3) the
remainder on a pro-rated basis to the Jackson County Sports
Authority, the City of St. Louis, the Edward Jones Dome, and each
county commission in an amount proportionate to each entity's
contribution to the fund.  Any distributions to the Edward Jones
Dome will be in lieu of any other appropriations the dome
receives from general revenue.  Any funds remaining after the
annual allocations have been made will revert to the General
Revenue Fund.

For Fiscal Year 2007, all allocations provided under the
substitute will be limited to 20% of the total annual estimate of
revenue derived from the tax; for Fiscal Year 2008, 40%; and for
Fiscal Year 2009 and each subsequent fiscal year, 100%.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2006, FY
2007, and FY 2008.  Estimated Effect on Other State Funds of an
Income of $0 in FY 2006, a Cost of Unknown to an Income of
Unknown in FY 2007, and a Cost of Unknown to an Income of Unknown
in FY 2008.  Estimated to exceed $100,000.

PROPONENTS:  Supporters say that the revenue from this tax is
needed to help certain facilities or stadiums stay competitive
with others around the country.

Testifying for the bill were Senator Shields; Jackson County
Sports Complex Authority; Missouri Citizens for the Arts; St.
Joseph Area Legislative Coalition; and City of Springfield.

OPPONENTS:  Those who oppose the bill say that too much is spent
on debt services on sports issues, and we have gotten away from
the original purpose for this taxing.

Testifying against the bill were Missouri River Regional Library;
Missouri Budget Project; Missourians for Tax Justice; and
Telecommunications Association of Missouri.

Robert Triplett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm