House tax bill would finally put a fork in tax-exempt bonds for sports stadiums

Llama19

Registered User
Jan 19, 2013
7,202
1,007
Outside GZ
To quote:

"Sec. 3604. No tax exempt bonds for professional stadiums.

Current law: Under current law, State and local governments may issue public purpose bonds, interest on which is excluded from Federal tax. In contrast, the interest on private activity bonds issued by State and local governments, but which benefit private individuals or entities, is generally subject to Federal tax unless such bonds are deemed qualified by meeting very specific criteria. Examples include exempt facility bonds, qualified mortgage bonds, qualified veterans’ mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and qualified 501(c)(3) bonds. Professional sports stadiums do not generally meet any of these criteria. Nonetheless, some State and local governments have issued bonds and successfully taken the position that interest on the bonds is exempt from Federal tax because the bonds are public purpose bonds.

Provision: Under the provision, interest on bonds issued to finance the construction of, or capital expenditures for, a professional sports stadium would be subject to Federal tax. A professional sports stadium is any facility that is used as a stadium or arena for professional sports exhibitions, games or training for at least five days in any calendar year. The provision would be effective for bonds issued after the date of introduction."

Source: http://www.fieldofschemes.com/2017/...fork-in-tax-exempt-bonds-for-sports-stadiums/

Tax Cuts and Jobs Act source (PDF): http://3hm75d2ak36959oew3zvzim1.wpe...ent/uploads/2017/11/Tax-Cuts-And-Jobs-Act.pdf
 

gstommylee

Registered User
Jan 31, 2012
14,403
2,742
This won't end public subsidies sports stadium. And one thing i saw in the field of schemes article that they can bypass the issue and pay for stuff that has nothing to do with sports but other stuff with tax exempt bonds. A loop hole to be exact.

Also this doesn't stop anyone from stripping it out in the final bill.
 

mouser

Business of Hockey
Jul 13, 2006
29,285
12,586
South Mountain
This won't end public subsidies sports stadium. And one thing i saw in the field of schemes article that they can bypass the issue and pay for stuff that has nothing to do with sports but other stuff with tax exempt bonds. A loop hole to be exact.

Also this doesn't stop anyone from stripping it out in the final bill.

Also, if it doesn't change behavior--i.e. stopping municipalities from financing sports stadiums--then the end result is the tax payers in that municipality end up paying more then they would with tax exempt bonds.
 

David Dennison

I'm a tariff, man.
Jul 5, 2007
5,940
1,444
Grenyarnia
GOP Is Poised to Pass Sweeping Tax Overhaul

The bill also preserves the ability to use tax-exempt bonds for professional sports stadium bonds—a priority for Mr. Trump, a GOP aide said.

Real estate mogul who became president protects building and development subsidies? The 100 or so richest families in America get to keep fleecing local municipalities who in turn defer costs to the federal government? Who could have seen it coming?
4e107816609e3eaed0b319947bc9c13272a5d371d8132451a569531fdd05b28a.jpg
 
Last edited:

Ad

Upcoming events

Ad

Ad

-->