FIRST REGULAR SESSION
HOUSE BILL NO. 336
96TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES BURLISON (Sponsor), TILLEY, JONES (89), DIEHL, TALBOY, JONES (117), McNARY, DIECKHAUS, CARTER, HUMMEL, WEBBER, CURLS AND HUBBARD (Co-sponsors).
0910L.01I D. ADAM CRUMBLISS, Chief Clerk
To amend chapter 67, RSMo, by adding thereto one new section relating to tax incentives to attract sporting events to Missouri.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 67, RSMo, is amended by adding thereto one new section, to be known as section 67.3000, to read as follows:
67.3000. 1. As used in this section, the following words shall mean:
(1) "Active member", an organization located in the state of Missouri, which solicits and services sports events, sports organizations, and other types of sports-related activities in that community;
(2) "Applicant" or "applicants", one or more certified sponsors, endorsing counties, endorsing municipalities, or a local organizing committee, acting individually or collectively;
(3) "Certified sponsor" or "certified sponsors", a nonprofit organization which is an active member of the National Association of Sports Commissions;
(4) "Department", the Missouri department of economic development;
(5) "Director", the director of revenue;
(6) "Eligible costs", shall include:
(a) Costs necessary for conducting the sporting event;
(b) Costs relating to the preparations necessary for the conduct of the sporting event; and
(c) An applicant's pledged obligations to the site selection organization as evidenced by the support contract for the sporting event.
Eligible costs shall not include any cost associated with (i) the rehabilitation or construction of any facilities used to host the sporting event but may include costs associated with the retrofitting of a facility necessary to accommodate the sporting event, and (ii) direct payments to a for-profit site selection organization;
(7) "Endorsing municipality" or "endorsing municipalities", any city, town, incorporated village, or county that contains a site selected by a site selection organization for one or more sporting events;
(8) "Joinder agreement", an agreement entered into by one or more applicants, acting individually or collectively, and a site selection organization setting out representations and assurances by each applicant in connection with the selection of a site in this state for the location of a sporting event;
(9) "Joinder undertaking", an agreement entered into by one or more applicants, acting individually or collectively, and a site selection organization that each applicant will execute a joinder agreement in the event that the site selection organization selects a site in this state for a sporting event;
(10) "Local organizing committee", a nonprofit corporation or its successor in interest that:
(a) Has been authorized by one or more certified sponsors, endorsing municipalities, or endorsing counties, acting individually or collectively, to pursue an application and bid on its or the applicant's behalf to a site selection organization for selection as the site of one or more sporting events; or
(b) With the authorization of one or more certified sponsors, endorsing municipalities, or endorsing counties, acting individually or collectively, executes an agreement with a site selection organization regarding a bid to host one or more sporting events;
(11) "Site selection organization", the National Collegiate Athletic Association (NCAA); an NCAA member conference, university, or institution; the National Association of Intercollegiate Athletics (NAIA); the United States Olympic Committee (USOC); a national governing body (NGB) or international federation of a sport recognized by the USOC; the United States Golf Association (USGA); the United States Tennis Association (USTA); the Amateur Athletic Union (AAU); the Amateur Softball Association of America (ASA); other major regional, national, and international sports associations, leagues, and organizations that promote, organize, or administer sporting games, competitions, or events; or other major regional, national, and international organizations that promote or organize eligible events;
(12) "Sporting event" or "sporting events", an NCAA national championship, including the Final Four, Frozen Four, wrestling championships, and other Division I, II, and III men's and women's national championship events; NCAA postseason basketball regional and first and second rounds; college football bowl game; NCAA post-season college football game; college football or basketball game played at a neutral site; collegiate athletic conference championship or tournament; NAIA tournament or championship; a regional or national championship of an amateur sport sanctioned by the national governing body of a sport recognized by the USOC; Olympic trials or other Olympic competition; USGA amateur event; Davis Cup or Fed Cup tennis match; World Cup soccer match; AAU, ASA, US Youth Soccer, or other major regional or national youth sports tournaments; or other major sporting events approved by the department that generate new tax revenue for the state of Missouri. The term includes any event and activity related to or associated with a sporting event;
(13) "Support contract" or "support contracts", an event award notification, joinder undertaking, joinder agreement, or contract executed by an applicant and a site selection organization;
(14) "Tax credit" or "tax credits", a credit or credits issued by the department against the tax otherwise due under chapter 143 or 148, excluding withholding tax imposed by sections 143.191 to 143.265.
2. An applicant may submit a copy of a support contract for a sporting event to the department. Within sixty days of receipt of the sporting event support contract, the department shall review the applicant's support contract and certify such support contract if it complies with the requirements of this section. Upon certification of the support contract by the department, the applicant shall be authorized to receive the tax credit under subsection 4 of this section. In addition, at any time, including during the site selection process, an applicant may request that the department estimate the receipts from the total tax imposed by chapter 144, determined in the manner set forth in subsection 3 of this section, that is directly attributable to the preparation for and conduct of the sporting event. The applicant may submit the department's estimate to a site selection organization.
3. In making the determinations of the estimated or actual tax receipts provided for in this section, the department, in consultation with the director, shall determine the geographic boundaries of the market area for the sporting event and the time period for which there is likely to be an economic impact attributable to the sporting event. The market area shall be the geographic area in which there is a reasonable likelihood of a measurable economic impact directly attributable to the preparation for and conduct of the sporting event, including areas likely to provide venues, accommodations, and services in connection with the sporting event based on the support contract entered into by the applicant and the site selection organization. An endorsing municipality that has been selected as the site for the sporting event shall be included in the market area for the sporting event. The tax revenues in the market area of the sporting event shall be calculated from the total tax imposed by chapter 144. The time period shall be the greater of:
(1) The period for which the primary venue is contracted by the site selection organization for the sporting event; or
(2) The two-week period that ends at the end of the day after the date on which a sporting event will be held or such longer period as determined by the department.
4. No more than thirty days following the conclusion of the sporting event, the applicant shall submit eligible costs and documentation of the costs evidenced by receipts, paid invoices, or other documentation in a manner prescribed by the department.
5. No later than sixty days following the conclusion of the sporting event, the department, in consultation with the director, shall determine the amount of tax revenues which are directly attributable to the sporting event or related events, in the manner provided under subsection 3 of this section. No later than sixty days following the receipt of eligible costs and documentation of such costs from the applicant as required in subsection 4 of this section, the department shall issue a refundable tax credit to the applicant for the lesser of one hundred percent of eligible costs incurred by the applicant or fifty percent of the increase in tax revenues within the market area directly attributable to the supporting event. Tax credits authorized by this section may be claimed against taxes imposed by chapters 143 and 148 and shall be claimed within one year of the close of the taxable year for which the credits were issued. Tax credits authorized by this section may be transferred, sold, or assigned by filing a notarized endorsement thereof with the department that names the transferee, the amount of tax credit transferred, and the value received for the credit, as well as any other information reasonably requested by the department.
6. In no event shall the amount of tax credits issued by the department under this section exceed ten million dollars in any fiscal year. In any fiscal year, no more than eight million dollars in tax credits shall be available to all applicants which submit support contracts for sporting events to be held in any city not within a county or counties with a population in excess of three hundred thousand inhabitants.
7. An applicant shall provide any information necessary as determined by the department for the department and the director to fulfill the duties required by this section. At any time upon the request of the state of Missouri, a certified sponsor will subject itself to an audit conducted by the state.
8. This section shall not be construed as creating or requiring a state guarantee of obligations imposed on an endorsing municipality under a support contract or any other agreement relating to hosting one or more sporting events in this state.
9. The department shall only certify an applicant's support contract for a sporting event in which the site selection organization has yet to select a location for the sporting event as of August 28, 2011. Support contracts shall not be certified by the department after August 28, 2017, provided that the support contracts may be certified prior to August 28, 2017, for sporting events that will be held after such date.
10. The department may promulgate rules, statements of policy, procedures, forms, and guidelines as necessary to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010 that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2011, shall be invalid and void.