Bill Introduced to Exempt Tickets to Big Sports Events From Sales Tax
A bill that could bring the Super Bowl and other high-profile sporting events to Atlanta was filed in the House this afternoon. House Bill 951, sponsored by Rep. Chad Nimmer of Blackshear, Jay Powell of Camila, Stacey Abrams of Atlanta and others would exempt tickets to certain sporting events from sales tax.
The bill defines “Major Sporting Event” as a National Football League Championship Game, a semifinal or final game of a national collegiate tournament, All Star games in baseball, soccer or basketball, and any other sporting event that the commissioner of economic development and state revenue commissioner say would generate $50 million in revenue to the host city from lodging, meals, car rentals, and similar activities. If passed, the exemption would apply to admissions purchased after January 1, 2017.
Some have complained that the measure is a taxpayer giveaway. But if the only way you are going to get the sporting event is to forego sales tax revenue on tickets that you wouldn’t get if the event didn’t occur, is it a giveaway or a way to recoup some of the investment in sports facilities?
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Jon Richards
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I wonder if NASCAR will try to get in on this???
The granting of an across the board tax exemption without it even being requested is invitation to request others and perks that accrue to the 1%.
It’s reason why people have been responding to the author of The Art of the Deal.
Sure it is a taxpayer give away, so. Wasn’t part of the reason for backing a new 1.4 billion dollar stadium the additional tax revenue it would generate? Now we are forgoing part of that tax revenue. A simple explanation were spending 5 dollars to make 15. I would do that anytime however what’s to stop every other event from demanding the same?
As I said before start thinking about ways to replace that revenue or be satisfied with less which is something government doesn’t do if it can help it. A prime example is the 200 dollar road tax on electric vehicles. The state legislature work overtime trying to figure out how to get road tax from electric vehicles and finally they came up with a plan.
Be careful that the law of unintended consequences does not come back to haunt you. Once the genie is out of the bottle it is terribly hard to put it back in.
I know my brother-in-law had to pay everytime he gave away free tickets. It was crazy how much he had to pay when he used all his player tix for the world series.
Before the state creates a Crony Billionaire Sales Tax Exemption, shouldn’t someone ask the NFL what they are asking for?
Their intent could be as simple as they don’t want to pay sales tax on free tickets (see ChefDavid’s comment above). In fact, they are right. They shouldn’t pay sales tax on free stuff.
Or perhaps they don’t want their event to be singled out for extra taxation? Wanting to be treated like everyone else and not be soaked, is a very fair request.
Or is it an element of the Total Cost of the event? If so, a smart negotiator would be able to create a structure that makes the tax go away financially, without the need for the Crony Billionaire Sales Tax Exemption.
Of if they believe the NFL should NOT pay taxes ever, then someone needs to find out why this wasn’t disclosed prior to when the stadium was approved. That is a material omission of fact that puts Bernie Marcus and the Falcons in an unfavorable light.
I’d bet that the real issue is that they don’t want special taxes applied to their event and are willing to pay the same sales tax the rest of us pay.