COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:5220H.02I Bill No.:HB 2544 Subject:Taxation and Revenue - Sales and Use; Taxation and Revenue - General;
Entertainment, Sports and Amusements; Kansas City; Tourism
Type:Original Date:February 8, 2022Bill Summary:This proposal provides a sales tax exemption for the sale of 2026 FIFA
World Cup tickets to matches held in Jackson County.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025FY 2026General Revenue*$0$0$0$0 or ($240,710)
to ($2,521,728)
Total Estimated Net
Effect on General
Revenue
$0$0$0
$0 or ($240,710)
to ($2,521,728)
*The fiscal impact is ranged from $0 (Kanas City is not selected to host a FIFA World Cup
Match) OR a range of roughly $105 average price per ticket (assuming seating capacity will
remain at 76,416 as currently configured for American football) to $1,100 price per ticket.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025 FY 2026Park, Soil, and Water
Fund
$0$0$0$0 or ($8,024) to
($84,058)
Conservation
Commission Fund
$0$0$0$0 or ($10,030)
to ($105,072)
School District Trust
Fund
$0$0$0$0 or ($80,237)
to ($840,576)
Total Estimated Net
Effect on Other State
Funds$0$0$0
$0 or ($98,291)
to ($1,029,706)
Numbers within parentheses: () indicate costs or losses. L.R. No. 5220H.02I
Bill No. HB 2544
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February 8, 2022
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2026)
Total Estimated
Net Effect on
All Federal
Funds $0$0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2026)
Total Estimated
Net Effect on
FTE 000$0
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025FY 2026Local
Government
$0$0$0$0 or ($371,095)
to ($3,887,664) L.R. No. 5220H.02I
Bill No. HB 2544
Page 3 of
February 8, 2022
KLP:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue (DOR) state this proposal grants a local sales and
use tax exemption for admission tickets to the 2026 FIFA World Cup soccer tournament. The
tournament is scheduled to be played in July 2026. Historically tickets go on sale the month
before and are sold out within hours. The FIFA association is in the process of choosing a site.
The City of Kansas City is under consideration as one of the sites. It is unknown if they will get
chosen and if chosen whether they would host a group match or final match.
DOR notes this sales tax exemption would be limited to June 1, 2026 - July 31, 2026 in Kansas
City for the tickets sales of the event. If Kansas City is not chosen then this proposal will not
have a fiscal impact.
If Kansas City is chosen, the teams are expected to play at Arrowhead Stadium, which has a
seating capacity of 76,416. The average ticket prices for the 2022 World Cup show that group
match tickets are between $105- $210, while final matches sell for $455-$1,100. Using this
information DOR calculated:
Estimated Total Ticket SalesTotal Estimated Ticket
SalesLowHigh
Group Match$8,023,680 $16,047,360 Finals$34,769,280 $84,057,600
The impact will be either $0 (not selected as a site) or the amounts projected below:
Arrowhead Stadium is in the following taxing jurisdictions. Jackson County has a local sales tax
rate of 1.25%, Kansas City has a 3.25% rate and the Kansas City Zoological District has a
.0125% rate for a total of 4.625%. DOR will use the 4.625% for the fiscal note. L.R. No. 5220H.02I
Bill No. HB 2544
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February 8, 2022
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Estimated Local Sales Tax ImpactFY 2026
Local Sales Tax
Low PriceHigh PriceNot Selected$0 $0 ORGroup Match • Jackson County($100,296)($200,592)• Kansas City($260,770)($521,539)• Kansas City Zoological
District($10,030)($20,059)
Group Match Total($371,095)($742,190)ORFinals • Jackson County($434,616)($1,050,720)• Kansas City($1,130,002)($2,731,872)• Kansas City Zoological
District($43,462)($105,072)
Finals Total($1,608,079)($3,887,664)
DOR notes this proposal will require programming changes estimated to cost $3,596.
Oversight notes that DOR assumes this proposal will require programming changes with an
estimated cost of $3,596. OversightDepartment of Revenue is provided with core
funding to handle a certain amount of activity each year. Oversight assumes DOR could absorb
the costs related to this proposal. If multiple bills pass which require additional staffing and
duties at substantial costs, DOR could request funding through the appropriation process.
Officials from the Office of Administration - Budget and Planning (B&P) note this proposal
may impact the calculation under Article X, Section 18(e).
B&P notes this proposal would exempt all tickets sold to the 2026 FIFA World Cup in Jackson
County between 6/1/2026 and 7/31/2026.
B&P notes that Kansas City, MO is currently a possible host city selection for the 2026 FIFA
World Cup. B&P further notes that the final U.S. host cities have not yet been determined. As
of 12/19/2021, there are currently 17 cities competing to host 11 U.S. FIFA World Cup Games.
B&P further notes that, if selected, Kansas City would host a 2026 FIFA World Cup game at the
Arrowhead Stadium, which has a capacity of 76,416. Therefore, B&P will assume that 76,416
tickets would be sold and qualify under this exemption. L.R. No. 5220H.02I
Bill No. HB 2544
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February 8, 2022
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In addition, the prices of 2026 game tickets are still unknown. However, tickets for the 2022
FIFA World cup ranged from $105 to $210 for regular group matches and $455 to $1,100 for the
finals. It is currently unknown which game would be hosted in Kansas City. Table 1 shows the
estimated ticket sales under both game-hosting scenarios.
Table 1: Estimated Total Ticket SalesTotal Estimated Ticket
SalesLowHigh
Group Match$8,023,680 $16,047,360 Finals$34,769,280 $84,057,600 *Site selection is still occurring. It is unknown if
Kansas City will be selected or what game may be
hosted in the city.
B&P notes that while the exemption would cover both FY26 (6/2026) and FY27 (7/2026), ticket
sales for the 2022 games typically sold out within hours of release. Therefore, B&P will reflect
the total potential loss as occurring in FY26 (6/2026).
For the purpose of this fiscal note, B&P will reflect three potential impacts. First, that Kansas
City is not selected. Second, that Kansas City is selected to host a group match. Third, that
Kansas City is selected to host the finals. Table 2 shows the potential revenue impact under all
three scenarios.
FY 2026
State Funds
Low PriceHigh PriceNot Selected$0 ORGroup Match General Revenue($240,710)($481,421)Education($80,237)($160,474)Conservation($10,030)($20,059)DNR($8,024)($16,047)Total State
Revenues($339,000)($678,001)
ORFinals Match General Revenue($1,043,078)($2,521,728)Education($347,693)($840,576)Conservation($43,462)($105,072)DNR($34,769)($84,058)Total State
Revenues($1,469,002)($3,551,434) L.R. No. 5220H.02I
Bill No. HB 2544
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February 8, 2022
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Therefore, B&P estimates that if Kansas City is not selected to host a 2026 FIFA World Cup
game, there will be no TSR or local sales tax impact. If Kansas City is selected to host a group
match, GR could be reduced by ($240,710 to $481,421) and TSR could be reduced by ($339,000
to $678,001). If Kansas City is selected to host a final match, GR could be reduced by
($1,043,078 to $2,521,728) and TSR could be reduced by ($1,469,002 to $3,551,434).
Table 3: Estimated Local Sales Tax ImpactFY 2026
Local Sales Tax
Low PriceHigh PriceNot Selected$0 $0 ORGroup Match • Jackson County($100,296)($200,592)• Kansas City($260,770)($521,539)• Kansas City Zoological
District($10,030)($20,059)
Group Match Total($371,095)($742,190)
ORFinals • Jackson County($434,616)($1,050,720)• Kansas City($1,130,002)($2,731,872)• Kansas City Zoological
District($43,462)($105,072)
Finals Total($1,608,079)($3,887,664)
For the purpose of this fiscal note, B&P assumes that the sales tax rate for the Arrowhead
Stadium would be applied to all ticket sales (in-person and online). B&P notes that the sales tax
rate for the Arrowhead Stadium is 4.625%, with 1.25% for Jackson County, 3.25% for Kansas
City, and 0.125% for the Kansas City Zoological District. Therefore, B&P estimates that local
sales tax could be reduced by ($371,095 to $742,190) if Kansas City hosts a group match game
or by ($1,608,079 to $3,887,664) if Kansas City hosts a final match.
Officials from the City of Kansas City note this proposal would have a negative fiscal impact on
Kansas City in an indeterminate amount.
Oversight notes the above local political subdivision stated this proposal would have negative
fiscal impact on their respective of an indeterminate amount. Therefore, Oversight will note B&P
and DOR’s estimates for local political subdivisions on the fiscal note.
Oversight only reflects the responses received from state agencies and political subdivisions.
Officials from Jackson County were requested to respond to this proposed legislation but did not. L.R. No. 5220H.02I
Bill No. HB 2544
Page 7 of
February 8, 2022
KLP:LR:OD
A general listing of political subdivisions included in Oversight’s database is available upon
request.
Oversight notes Arrowhead stadium is not configured for soccer and assume adjustments will
need to be made regarding the width of the field to accommodate a FIFA match. Oversight is
unsure if this will impact seating capacity. Oversight will range the fiscal impact from $0
(Kansas City not selected) OR a range from $105 per ticket to $1,100 per ticket. L.R. No. 5220H.02I
Bill No. HB 2544
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February 8, 2022
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FISCAL IMPACT – State
Government
FY 2023
(10 Mo.)
FY 2024FY 2025FY 2026GENERAL REVENUERevenue loss - § 144.051
exemption of sales tax for FIFA
World Cup Admission
$0$0$0$0 or
($240,710) to
($2,521,728)
ESTIMATED NET EFFECT
ON GENERAL REVENUES
$0$0$0$0 or
($240,710) to
($2,521,728)
PARK, SOIL, WATER FUNDS
(0614)
Revenue loss - § 144.051
exemption of sales tax for FIFA
World Cup Admission
$0$0$0$0 or ($8,024)
to ($84,058)
ESTIMATED NET EFFECT
ON PARK , SOIL AND
WATER FUNDS
$0$0$0$0 or ($8,024)
to ($84,058)
CONSERVATION
COMMISSION FUNDS (0609)
Revenue loss - § 144.051
exemption of sales tax for FIFA
World Cup Admission
$0$0$0$0 or ($10,030)
to ($105,072)
ESTIMATED NET EFFECT
ON CONSERVATION
COMMISSION FUNDS
$0$0$0$0 or ($10,030)
to ($105,072) L.R. No. 5220H.02I
Bill No. HB 2544
Page 9 of
February 8, 2022
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FISCAL IMPACT – State
Government (continued)
FY 2023
(10 Mo.)
FY 2024FY 2025FY 2026SCHOOL DISTRICT TRUST
FUND (0688)
Revenue loss - § 144.051
exemption of sales tax for FIFA
World Cup Admission
$0$0$0$0 or ($80,237)
to ($840,576)
ESTIMATED NET EFFECT
ON SCHOOL DISTRICT
TRUST FUND
$0$0$0$0 or ($80,237)
to ($840,576)
FISCAL IMPACT
– Local
Government
FY 2023
(10 Mo.)
FY 2024FY 2025FY 2026LOCAL
GOVERMENTS
Revenue loss - §
144.051 exemption
of sales tax for FIFA
World Cup
Admission -
$0$0$0$0 or
($371,095) to
($3,887,664)
ESTIMATED NET
EFFECT ON
LOCAL
GOVERMENTS
$0$0$0$0 or
($371,095) to
($3,887,664)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed provides a sales tax exemption for the sale of 2026 FIFA World Cup tickets to
matches held in Jackson County L.R. No. 5220H.02I
Bill No. HB 2544
Page 10 of 10
February 8, 2022
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This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
City of Kansas City
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 8, 2022February 8, 2022