FIRSTREGULARSESSION
HOUSEBILLNO.501
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECHRIST.
1333H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections67.3000and67.3005,RSMo,andtoenactinlieuthereoftwonewsections
relatingtotaxcreditsforsportingevents.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections67.3000and67.3005,RSMo,arerepealedandtwonewsections
2enactedinlieuthereof,tobeknownassections67.3000and67.3005,toreadasfollows:
67.3000.1.Asusedinthissectionandsection67.3005,thefollowingwordsshall
2mean:
3 (1)"Activemember",anorganizationlocatedinthestateofMissouriwhichsolicits
4andservicessportsevents,sportsorganizations,andothertypesofsports-relatedactivitiesin
5thatcommunity;
6 (2)"Applicant"or"applicants",oneormorecertifiedsponsors,endorsingcounties,
7endorsingmunicipalities,oralocalorganizingcommittee,actingindividuallyorcollectively;
8 (3)"Certifiedsponsor"or"certifiedsponsors",anonprofitorganizationwhichisan
9activememberofthe[NationalAssociationofSportsCommissions] SportsEventsand
10TourismAssociation;
11 (4)"Department",theMissouridepartmentofeconomicdevelopment;
12 (5)"Director",thedirectorofrevenue;
13 (6)["Eligiblecosts"shallinclude:
14 (a)Costsnecessaryforconductingthesportingevent;
15 (b)Costsrelatingtothepreparationsnecessaryfortheconductofthesportingevent;
16and
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (c)Anapplicant'spledgedobligationstothesiteselectionorganizationasevidenced
18bythesupportcontractforthesportingeventincluding,butnotlimitedto,bidfeesand
19financialguarantees.
20
21Eligiblecostsshallnotincludeanycostassociatedwiththerehabilitationorconstructionof
22anyfacilitiesusedtohostthesportingeventordirectpaymentstoafor-profitsiteselection
23organization,butmayincludecostsassociatedwiththeretrofittingofafacilitynecessaryto
24accommodatethesportingevent;
25 (7)]"Eligibledonation",donationsreceived,byacertifiedsponsororlocalorganizing
26committee,fromataxpayerthatmayincludecash,publiclytradedstocksandbonds,andreal
27estatethatwillbevaluedanddocumentedaccordingtorulespromulgatedbythedepartment.
28Suchdonationsshallbeusedsolelytoprovidefundingtoattractsportingeventstothisstate;
29 [(8)](7)"Endorsingmunicipality"or"endorsingmunicipalities",anycity,town,
30incorporatedvillage,orcountythatcontainsasiteselectedbyasiteselectionorganizationfor
31oneormoresportingevents;
32 [(9)](8)"Joinderagreement",anagreemententeredintobyoneormoreapplicants,
33actingindividuallyorcollectively,andasiteselectionorganizationsettingoutrepresentations
34andassurancesbyeachapplicantinconnectionwiththeselectionofasiteinthisstateforthe
35locationofasportingevent;
36 [(10)] (9)"Joinderundertaking",anagreemententeredintobyoneormore
37applicants,actingindividuallyorcollectively,andasiteselectionorganizationthateach
38applicantwillexecuteajoinderagreementintheeventthatthesiteselectionorganization
39selectsasiteinthisstateforasportingevent;
40 [(11)](10)"Localorganizingcommittee",anonprofitcorporationoritssuccessorin
41interestthat:
42 (a)Hasbeenauthorizedbyoneormorecertifiedsponsors,endorsingmunicipalities,
43orendorsingcounties,actingindividuallyorcollectively,topursueanapplicationandbidon
44itsortheapplicant'sbehalftoasiteselectionorganizationforselectionasthehostofoneor
45moresportingevents;or
46 (b)Withtheauthorizationofoneormorecertifiedsponsors,endorsing
47municipalities,orendorsingcounties,actingindividuallyorcollectively,executesan
48agreementwithasiteselectionorganizationregardingabidtohostoneormoresporting
49events;
50 (11)"Registeredparticipant",anindividualwhoisregisteredtocompeteina
51sportingevent,oranathlete,coach,orotherindividualwhoispartofateam'sofficial
52contingentwithanofficialcapacityforsuchsportingevent;
HB501 2 53 (12)"Siteselectionorganization",theNationalCollegiateAthleticAssociation
54(NCAA);anNCAAmemberconference,university,orinstitution;theNationalAssociation
55ofIntercollegiateAthletics(NAIA);theUnitedStatesOlympic&ParalympicCommittee
56[(USOC)] (USOPC); anationalgoverningbody(NGB)orinternationalfederationofasport
57recognizedbythe[USOC] USOPC; theUnitedStatesGolfAssociation(USGA);theUnited
58StatesTennisAssociation(USTA);theAmateurAthleticUnion(AAU);theNational
59ChristianCollegeAthleticAssociation(NCCAA);theNationalJuniorCollegeAthletic
60Association(NJCAA);theUnitedStatesSportsSpecialtyAssociation(USSSA);anyrights
61holdermemberofthe[NationalAssociationofSportsCommissions(NASC)] SportsEvents
62andTourismAssociation(SportsETA);othermajorregional,national,andinternational
63sportsassociations,andamateurorganizationsthatpromote,organize,oradministersporting
64gamesorcompetitions;orothermajorregional,national,andinternationalorganizationsthat
65promoteororganizesportingevents;
66 (13)"Sportingevent"or"sportingevents",anamateur,collegiate,orOlympic
67sportingeventthatiscompetitivelybidorisawardedbyasiteselectionorganization;
68 (14)"Supportcontract"or"supportcontracts",aneventawardnotification,joinder
69undertaking,joinderagreement,orcontractexecutedbyanapplicantandasiteselection
70organization;
71 (15)"Taxcredit"or"taxcredits",acreditorcreditsissuedbythedepartmentagainst
72thetaxotherwisedueunderchapter143or148,excludingwithholdingtaximposedunder
73sections143.191to143.265;
74 (16)"Taxpayer",anyofthefollowingindividualsorentitieswhomakeaneligible
75donation:
76 (a)Aperson,firm,partnerinafirm,corporation,orashareholderinanScorporation
77doingbusinessinthestateofMissouriandsubjecttothestateincometaximposedunder
78chapter143;
79 (b)Acorporationsubjecttotheannualcorporationfranchisetaximposedunder
80chapter147;
81 (c)Aninsurancecompanypayinganannualtaxonitsgrosspremiumreceiptsinthis
82state;
83 (d)AnyotherfinancialinstitutionpayingtaxestothestateofMissouriorany
84politicalsubdivisionofthisstateunderchapter148;
85 (e)Anindividualsubjecttothestateincometaximposedunderchapter143;
86 (f)Anycharitableorganizationwhichisexemptfromfederalincometaxandwhose
87Missouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
88imposedunderchapter143.
HB501 3 89 2.Anapplicantmaysubmitacopyofasupportcontractforasportingeventtothe
90department.Withinsixtydaysofreceiptofthesportingeventsupportcontract,the
91departmentmayreviewtheapplicant'ssupportcontractandcertifysuchsupportcontractifit
92complieswiththerequirementsofthissection.Uponcertificationofthesupportcontractby
93thedepartment,theapplicantmaybeauthorizedtoreceivethetaxcreditundersubsection4of
94thissection.
95 3.Nomorethanninetydaysfollowingtheconclusionofthesportingevent,the
96applicantshallsubmit[eligiblecostsanddocumentationofthecostsevidencedbyreceipts,
97paidinvoices,eventsettlements,orotherdocumentationinamannerprescribedbythe
98department.Eligiblecostsmaybepaidbytheapplicantoranentitycohostingtheeventwith
99theapplicant] aticketsalesorboxofficestatementverifyingthetotalnumberoftickets
100soldforsuchevent,or,ifsucheventwasparticipantbased,alistofallregistered
101participants.
102 4.(1)[Nolaterthansevendaysfollowingtheconclusionofthesportingevent,the
103department,inconsultationwiththedirector,shalldeterminethetotalnumberofticketssold
104atfacevalueforsucheventor,ifsucheventwasparticipant-basedanddidnotselladmission
105tickets,thetotalnumberofpaidparticipantregistrations.
106 (2)] Nolaterthansixtydaysfollowingthereceiptof[eligiblecostsand]
107documentationof[suchcosts] ticketsalesorregisteredparticipantsfromtheapplicant
108asrequiredinsubsection3ofthissection,thedepartmentshall,exceptforthelimitations
109undersubsection5ofthissection,issueacertificateforarefundabletaxcredittothe
110applicantfor[theleastof]:
111 (a)[Onehundredpercentofeligiblecostsincurredbytheapplicant;
112 (b)]Anamountequalto[five] sixdollarsforeveryadmissionticketsoldtosuch
113event;or
114 [(c)](b)Anamountequalto[ten]twelvedollarsforevery[paid] registered
115participant[registration] ifsucheventwasparticipant-based[anddidnotselladmission
116tickets].
117
118Thecalculationsunderparagraphs[(b)](a)and[(c)](b)ofthissubdivisionshallusethe
119actualnumberofticketssoldor[registrationspaid]registeredparticipants, notanestimated
120amount.
121 (2)Thedepartmentofrevenueshallpaytheamountoftherefundabletaxcredit
122totheapplicantwithinninetydaysoftheapplicant'ssubmissionofavalidtaxcredit
123certificateissuedinaccordancewithsubdivision(1)ofthissubsection.
124 (3)Taxcreditsauthorizedbythissectionmaybeclaimedagainsttaxesimposedby
125chapters143and148[andshallbeclaimedwithinoneyearofthecloseofthetaxyearfor
HB501 4 126whichthecreditswereissued]. Taxcreditsauthorizedbythissection[may] shallnotbe
127transferred,sold,orassigned[byfilinganotarizedendorsementthereofwiththedepartment
128thatnamesthetransferee,theamountoftaxcredittransferred,andthevaluereceivedforthe
129credit,aswellasanyotherinformationreasonablyrequestedbythedepartment]. Taxcredits
130authorizedbythissectionshallberefundableatanytimefollowingissuanceandshall
131notberequiredtooffsettaxesestimatedorotherwisedue.Ifanytaxpayerisawarded
132taxcreditsunderthissectionthatarerefundedtosuchtaxpayerbutthedepartmentof
133revenuelaterdeterminesthatthetaxpayerreceivingthecreditsstillowedtaxesthat
134werenotpaidinthetaxyearthetaxcreditwasapplied,suchtaxpayershallrepaythe
135stateanamountequaltotheamountofthetaxcreditsalreadyrefundedortheamount
136ofthetaxpayer'staxliabilitystilldue,whicheverisless.Thedepartmentofrevenue
137maypromulgatesuchrulesasarenecessarytoadministersuchclawbackprovisions
138underthissubdivision.
139 5.Innoeventshalltheamountoftaxcreditsissuedbythedepartmentunder
140subsection4ofthissectionexceed[three] sixmilliondollarsinanyfiscalyear.Forallevents
141locatedwithinthefollowingcounties,thetotalamountoftaxcreditsissuedshallnotexceed
142[two]fivemillion[seven] fivehundredthousanddollarsinanyfiscalyear:
143 (1)Acountywithacharterformofgovernmentandwithmorethansixhundred
144thousandinhabitants;or
145 (2)Acitynotwithinacounty.
146 6.Anapplicantshallprovideanyinformationnecessaryasdeterminedbythe
147departmentforthedepartmentandthedirectortofulfillthedutiesrequiredbythissection.At
148anytimeupontherequestofthestateofMissouri,acertifiedsponsorshallsubjectitselftoan
149auditconductedbythestate.
150 7.Thissectionshallnotbeconstruedascreatingorrequiringastateguaranteeof
151obligationsimposedonanendorsingmunicipalityunderasupportcontractoranyother
152agreementrelatingtohostingoneormoresportingeventsinthisstate.
153 8.Thedepartmentshallonlycertifyanapplicant'ssupportcontractforasporting
154eventinwhichthesiteselectionorganizationhasyettoselectalocationforthesportingevent
155asofDecember1,2012.Nosupportcontractshallbecertifiedunlessthesiteselection
156organizationhaschosentousealocationinthisstatefromcompetitivebids,atleastoneof
157whichwasabidforalocationoutsideofthisstate,exceptthatcompetitivebidsshallnotbe
158requiredforanypreviously-awardedeventwhosesiteselectionorganizationextendsits
159contractualagreementwiththeevent'scertifiedsponsororforany[post-season] neutral-site
160collegiate[footballgameorotherneutral-site] gamewithatleastoneout-of-stateteam.
161SupportcontractsshallnotbecertifiedbythedepartmentafterAugust28,[2025] 2031,
HB501 5 162providedthatthesupportcontractsmaybecertifiedonorpriortoAugust28,[2025] 2031,for
163sportingeventsthatwillbeheldaftersuchdate.
164 9.Thedepartmentmaypromulgaterulesasnecessarytoimplementtheprovisionsof
165thissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
166createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies
167withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.
168Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe
169generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
170disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
171rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2013,shallbeinvalid
172andvoid.
67.3005.1.ForalltaxyearsbeginningonorafterJanuary1,2013,anytaxpayershall
2beallowedacreditagainstthetaxesotherwisedueunderchapter143,147,or148,excluding
3withholdingtaximposedbysections143.191to143.265,inanamountequaltofiftypercent
4oftheamountofaneligibledonation,subjecttotherestrictionsinthissection.Theamount
5ofthetaxcreditclaimedshallnotexceedtheamountofthetaxpayer'sstateincometax
6liabilityinthetaxyearforwhichthecreditisclaimed.Anyamountofcreditthatthetaxpayer
7isprohibitedbythissectionfromclaiminginataxyearshallnotberefundable,butmaybe
8carriedforwardtoanyofthetaxpayer'stwosubsequenttaxyears.
9 2.Toclaimthecreditauthorizedinthissection,acertifiedsponsororlocalorganizing
10committeeshallsubmittothedepartmentanapplicationforthetaxcreditauthorizedbythis
11sectiononbehalfoftaxpayers.Thedepartmentshallverifythattheapplicanthassubmitted
12thefollowingitemsaccuratelyandcompletely:
13 (1)Avalidapplicationintheformandformatrequiredbythedepartment;
14 (2)Astatementattestingtotheeligibledonationreceived,whichshallincludethe
15nameandtaxpayeridentificationnumberoftheindividualmakingtheeligibledonation,the
16amountoftheeligibledonation,andthedatetheeligibledonationwasreceived;and
17 (3)Paymentfromthecertifiedsponsororlocalorganizingcommitteeequaltothe
18valueofthetaxcreditforwhichapplicationismade.
19
20Ifthecertifiedsponsororlocalorganizingcommitteeapplyingforthetaxcreditmeetsall
21criteriarequiredbythissubsection,thedepartmentshallissueacertificateintheappropriate
22amount.
23 3.Taxcreditsissuedunderthissectionmaybeassigned,transferred,sold,or
24otherwiseconveyed,andthenewownerofthetaxcreditshallhavethesamerightsinthe
25creditasthetaxpayer.Wheneveracertificateisassigned,transferred,sold,orotherwise
26conveyed,anotarizedendorsementshallbefiledwiththedepartmentspecifyingthename
HB501 6 27andaddressofthenewownerofthetaxcreditorthevalueofthecredit.Innoeventshallthe
28amountoftaxcreditsissuedbythedepartmentunderthissectionexceed[ten]fivemillion
29dollarsinanyfiscalyear.
30 4.Thedepartmentshallpromulgaterulestoimplementtheprovisionsofthissection.
31Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatiscreatedunder
32theauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandis
33subjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissection
34andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
35pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannula
36rulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandany
37ruleproposedoradoptedafterAugust28,2013,shallbeinvalidandvoid.
38 5.Undersection23.253oftheMissourisunsetact:
39 (1)Theprovisionsofthe[new] programauthorizedundersection67.3000andunder
40thissectionshallautomaticallysunsetsixyearsafterAugust28,[2019] 2025, unless
41reauthorizedbyanactofthegeneralassembly;and
42 (2)Ifsuchprogramisreauthorized,theprogramauthorizedundersection67.3000
43andunderthissectionshallautomaticallysunsetDecemberthirty-firsttwelveyearsafterthe
44effectivedateofthereauthorizationofthesesections;and
45 (3)Section67.3000andthissectionshallterminateonSeptemberfirstofthecalendar
46yearimmediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthese
47sectionsissunset.
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HB501 7