Obama's budget proposal eliminates tax benefits for stadium building

[datruth55]

President Obama's latest budget proposal, released Monday, would eliminate tax breaks associated with city-funded professional sports stadiums. Many cities, when faced with either losing their teams to different areas of the country or ponying up taxpayer dollars to help owners finance a new, better stadium, choose the latter option.

Some cities even contribute money when they're not in danger of losing the team. Surely, the cities of New York and Dallas (well, Arlington) did not think the Yankees or Cowboys would move away when their lawmakers approved $1 billion and $325 million contributions of tax-free debt, respectively, to help build new stadiums for those teams.

According to the proposed budget, as much as $542 million could be raised by 2025 through the elimination of the so-called private payment test, which allows governments to use proceeds from tax-exempt bonds for stadium projects unless more than 10 percent of the debt service comes from a private business and more 10 percent of the facility's usage is dedicated to private interests. The proposal would go into effect for bonds issued after December 31, 2015, if approved.

If the President's proposed budget becomes law, that could affect the futures of several NFL teams struggling in their current markets. There has already been talk of the Rams, Raiders, Chargers and/or Jaguars moving from their cities to Los Angeles or elsewhere. While it is surely be a source of civic pride to keep sports teams in town, various studies have shown that the approval of using tapayer funds to aid the financing of new stadiums rarely results in a "win" for the city.

http://www.cbssports.com/nfl/eye-on...-eliminates-tax-benefits-for-stadium-building

Well that should put an end to all these new stadiums popping up every year.

 

[Spesh]

Id love for this to happen. Unfortunately, it has absolutely no chance of actually happening.

You see, there's a very major flaw in his proposal that makes it impossible for Congress to agree to it. I'll throw it in spoilers to avoid making people sick. Viewer discretion is advised:

Spoiler

Barack Obama is the one proposing it. So it must die.

 

[Daytona Fin]

Would they still be eligible for individual state relief? I read this in my local paper a couple weeks back and it looks like the Dolphins and/or Jags are likely to receive funding.

DAYTONA BEACH — Daytona International Speedway has cleared another hurdle in its quest to receive up to $90 million in state sales-tax incentives over the next three decades through a program that rewards sports organizations for major improvements.

Applications for the sales tax payments that the Speedway and three other Florida professional sports organizations submitted last fall to the state Department of Economic Opportunity have all been approved and are ready for decisions from state legislators over the next few months.

“DEO has notified the Legislature that each of the applications met the criteria established in the statute and has provided a copy of the applications for legislative approval,” Jessica Sims, press secretary for the DEO in Tallahassee, said Friday. “The Legislature may conduct an economic analysis through the Office of Economic and Demographic Research or other means and may choose to fund the submitted projects.”

The bipartisan Legislative Budget Commission will meet within the next month or so to decide whether to recommend that the Speedway, Miami Dolphins, Jacksonville Jaguars and Orlando City Soccer Club receive the sales tax dollars. If some or all of the organizations are recommended, the dollars dedicated to them will go into the state budget that will be voted on in the upcoming session.

“The buzz around the capital is the Speedway project is the one that is more worthy because of its economic impact,” said state Rep. David Santiago, R-Deltona.

The Speedway is feeling good about its chances with eligibility for the state funds based on investment, the number and types of events held at sports facilities, the potential to attract out-of-state visitors and the amount of sales tax generated.

In the summer of 2013, the Speedway began a $400 million overhaul of its frontstretch grandstand that it calls Daytona Rising. The project is creating a new 1.72 million-square-foot area for fans to relax, drink, dine and watch races. The Speedway renovations will include 101,000 permanent new seats that will be wider and more comfortable, five expanded entrances, 40 escalators and 14 elevators.

The Speedway projects average annual increases of $56.7 million in ticket sales and 1.37 million in attendance over the next 40 years as new non-racing events are added to the calendar.

“We are pleased that the state’s Department of Economic Opportunity has approved our application to the Sports Development Program,” said Speedway President Joie Chitwood III. “This decision does not guarantee funding as we will still need approval from the Legislative Budget Commission. However, this is good news and proof that Daytona Rising boasts significant economic impact, much of which is generated from out-of-state visitors.”

The Speedway and Dolphins are each seeking $3 million per year under the program, while Orlando is requesting $2 million annually and Jacksonville wants $1 million per year. The Dolphins are planning a $350 million stadium project, the Jaguars are planning a $63 million stadium upgrade and the Orlando soccer club is planning a $110 million stadium project.

The state has approved $7 million for the current fiscal year that started in July. In subsequent fiscal years, the state is expected to make up to $13 million available.

The funds have to go toward facility improvements such as construction, reconstruction and renovations, and payouts are expected to be made monthly.

http://m.news-journalonline.com/art...step-closer-to-90-million-in-state-incentives

 

[Buddy]

Obama's budget has about as much chance of passing as I do of winning the lottery tonight. Just in case you were wondering, that's why he proposed it. Smells like crap just like the house proposing bills the last few years to repeal Obamacare. It's not going to happen, it's just despicable political grandstanding.