0264S.02C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 184
AN ACT
To repeal sections 67.3000 and 67.3005, RSMo, and to
enact in lieu thereof two new sections relating to
tax credits for certain sporting events.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 67.3000 and 67.3005, RSMo, are
repealed and two new sections enacted in lieu thereof, to be
known as sections 67.3000 and 67.3005, to read as follows:
67.3000. 1. As used in this section and section
67.3005, the following words shall mean:
(1) "Active member", an organization located in the
state of Missouri which solicits and services sports events,
sports organizations, and other types of sports -related
activities in that community;
(2) "Applicant" or "applicants", one or more certified
sponsors, endorsing counties, endorsing municipalities, or a
local organizing committee, acting individually or
collectively;
(3) "Certified sponsor" or "certified sponsors", a
nonprofit organization which is an ac tive member of the
[National Association of Sports Commissions ] Sports Events
and Tourism Association ;
(4) "Department", the Missouri department of economic
development;
(5) "Director", the director of revenue;
(6) ["Eligible costs" shall include:
(a) Costs necessary for conducting the sporting event;
(b) Costs relating to the preparations necessary for
the conduct of the sporting event; and
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(c) An applicant's pledged obligations to the site
selection organization as evidenced by the support contract
for the sporting event including, but not limited to, bid
fees and financial guarantees.
Eligible costs shall not include any cost associated with
the rehabilitation or construction of any facilities used to
host the sporting event or direct payments to a for -profit
site selection organization, but may include costs
associated with the retrofitting of a facility necessary to
accommodate the sporting event;
(7)] "Eligible donation", donations received, by a
certified sponsor or local organizing committee, from a
taxpayer that may include cash, publicly traded stocks and
bonds, and real estate that will be valued and documented
according to rules promulgated by the department. Such
donations shall be used s olely to provide funding to attract
sporting events to this state;
[(8)] (7) "Endorsing municipality" or "endorsing
municipalities", any city, town, incorporated village, or
county that contains a site selected by a site selection
organization for one or more sporting events;
[(9)] (8) "Joinder agreement", an agreement entered
into by one or more applicants, acting individually or
collectively, and a site selection organization setting out
representations and assurances by each applicant in
connection with the selection of a site in this state for
the location of a sporting event;
[(10)] (9) "Joinder undertaking", an agreement entered
into by one or more applicants, acting individually or
collectively, and a site selection organi zation that each
applicant will execute a joinder agreement in the event that
the site selection organization selects a site in this state
for a sporting event;
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[(11)] (10) "Local organizing committee", a nonprofit
corporation or its successor in interest that:
(a) Has been authorized by one or more certified
sponsors, endorsing municipalities, or endorsing counties,
acting individually or collectively, to pursue an
application and bid on its or the applicant's behalf to a
site selection organization for selection as the host of one
or more sporting events; or
(b) With the authorization of one or more certified
sponsors, endorsing municipalities, or endorsing counties,
acting individually or collectively, executes an agreement
with a site selection organization regarding a bid to host
one or more sporting events;
(11) "Registered participant", an individual who is
registered to compete in a sporting event, or an athlete,
coach, or other individual who is part of a team's official
contingent with an official capacity for such sporting event;
(12) "Site selection organization", the National
Collegiate Athletic Association (NCAA); an NCAA member
conference, university, or institution; the National
Association of Intercollegiate Athletics (NAIA); the United
States Olympic & Paralympic Committee [(USOC)] (USOPC); a
national governing body (NGB) or international federation of
a sport recognized by the [USOC] USOPC; the United States
Golf Association (USGA); the Uni ted States Tennis
Association (USTA); the Amateur Athletic Union (AAU); the
National Christian College Athletic Association (NCCAA); the
National Junior College Athletic Association (NJCAA); the
United States Sports Specialty Association (USSSA); any
rights holder member of the [National Association of Sports
Commissions (NASC)] Sports Events and Tourism Association
(Sports ETA); other major regional, national, and
international sports associations, and amateur organizations
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that promote, organize, or administer sporting games or
competitions; or other major regional, national, and
international organizations that promote or organize
sporting events;
(13) "Sporting event" or "sporting events", an
amateur, collegiate, or Olympic sporting ev ent that is
competitively bid or is awarded by a site selection
organization;
(14) "Support contract" or "support contracts", an
event award notification, joinder undertaking, joinder
agreement, or contract executed by an applicant and a site
selection organization;
(15) "Tax credit" or "tax credits", a credit or
credits issued by the department against the tax otherwise
due under chapter 143 or 148, excluding withholding tax
imposed under sections 143.191 to 143.265;
(16) "Taxpayer", any of the following individuals or
entities who make an eligible donation:
(a) A person, firm, partner in a firm, corporation, or
a shareholder in an S corporation doing business in the
state of Missouri and subject to the state income tax
imposed under chapter 143;
(b) A corporation subject to the annual corporation
franchise tax imposed under chapter 147;
(c) An insurance company paying an annual tax on its
gross premium receipts in this state;
(d) Any other financial in stitution paying taxes to
the state of Missouri or any political subdivision of this
state under chapter 148;
(e) An individual subject to the state income tax
imposed under chapter 143;
(f) Any charitable organization which is exempt from
federal income tax and whose Missouri unrelated business
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taxable income, if any, would be subject to the state income
tax imposed under chapter 143.
2. An applicant may submit a copy of a support
contract for a sporting event to the department. Within
sixty days of receipt of the sporting event support
contract, the department may review the applicant's support
contract and certify such support contract if it complies
with the requirements of this section. Upon certification
of the support contract by the department, the applicant may
be authorized to receive the tax credit under subsection 4
of this section.
3. No more than ninety days following the conclusion
of the sporting event, the applicant shall submit [eligible
costs and documentation of the costs evidenced by receipts,
paid invoices, event settlements, or other documentation in
a manner prescribed by the department. Eligible costs may
be paid by the applicant or an entity cohosting the event
with the applicant] a ticket sales or box office statement
verifying the total number of tickets sold for such event,
or, if such event was participant -based, a list of all
registered participants .
4. (1) [No later than seven days following the
conclusion of the sporting event, the department, in
consultation with the director, shall determine the total
number of tickets sold at face value for such event or, if
such event was participant -based and did not sell admission
tickets, the total number of paid participant reg istrations.
(2)] No later than sixty days following the receipt of
[eligible costs and] documentation of [such costs] ticket
sales or registered participants from the applicant as
required in subsection 3 of this section, the department
shall, except for the limitations under subsection 5 of this
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section, issue a certificate for a refundable tax credit to
the applicant for [the least of]:
(a) [One hundred percent of eligible costs incurred by
the applicant;
(b)] An amount equal to [five] six dollars for every
admission ticket sold to such event; or
[(c)] (b) An amount equal to [ten] twelve dollars for
every [paid] registered participant [registration] if such
event was participant -based [and did not sell admission
tickets].
The calculations under paragraphs [(b)] (a) and [(c)] (b) of
this subdivision shall use the actual number of tickets sold
or [registrations paid] registered participants , not an
estimated amount.
(2) The department of revenue shall issue a refund of
the refundable tax credit to the applicant within ninety
days of the applicant's submission of a valid tax credit
certificate issued in accordance with subdivision (1) of
this subsection. Notwithstanding any provision of law to
the contrary, this may include a refund issued in advance of
the close of the tax period to which the tax credit applies.
(3) Tax credits authorized by this section may be
claimed against taxes imposed by chapters 143 and 148 [and
shall be claimed within one year o f the close of the tax
year for which the credits were issued ]. Tax credits
authorized by this section [may] shall not be transferred,
sold, or assigned [by filing a notarized endorsement thereof
with the department that names the transferee, the amou nt of
tax credit transferred, and the value received for the
credit, as well as any other information reasonably
requested by the department ]. Notwithstanding any provision
of law to the contrary, tax credits authorized by this
section may be refunde d at any time following issuance, even
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prior to the close of the tax period for which the credits
were issued. An erroneous, excessive, or improper refund of
these tax credits shall be considered an underpayment of tax
on the date made. If any applicant is issued tax credits
pursuant to this section that are refunded to such
applicant, but the department of revenue later determines
that the applicant receiving the credits owes or owed taxes
that were not paid for the tax year for which the tax cre dit
was issued, such applicant shall pay to the department of
revenue the applicant's tax liability still due, including
any underpayment caused by the erroneous, excessive, or
improper refund of these tax credits.
5. In no event shall the amount of tax credits issued
by the department under subsection 4 of this section exceed
three million dollars in any fiscal year. For all events
located within the following counties, the total amount of
tax credits issued shall not exceed two million seve n
hundred thousand dollars in any fiscal year:
(1) A county with a charter form of government and
with more than six hundred thousand inhabitants; or
(2) A city not within a county.
6. An applicant shall provide any information
necessary as determined by the department for the department
and the director to fulfill the duties required by this
section. At any time upon the request of the state of
Missouri, a certified sponsor shall subject itself to an
audit conducted by the state.
7. This section shall not be construed as creating or
requiring a state guarantee of obligations imposed on an
endorsing municipality under a support contract or any other
agreement relating to hosting one or more sporting events in
this state.
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8. The department shall only certify an applicant's
support contract for a sporting event in which the site
selection organization has yet to select a location for the
sporting event as of December 1, 2012. No support contract
shall be certified unless the site selection organization
has chosen to use a location in this state from competitive
bids, at least one of which was a bid for a location outside
of this state, except that competitive bids shall not be
required for any previously -awarded event whose site
selection organization extends its contractual agreement
with the event's certified sponsor or for any [post-season]
neutral-site collegiate [football game or other neutral -
site] game with at least one out -of-state team. Support
contracts shall not be certified by the department after
August 28, [2025] 2032, provided that the support contracts
may be certified on or prior to August 28, [2025] 2032, for
sporting events that will be held after such date.
9. The department may promulgate rules as necessary to
implement the provisions of this section. Any rule or
portion of a rule, as that term is defined in section
536.010, that is created under the authority delegated in
this section shall become effective only if it compl ies with
and is subject to all of the provisions of chapter 536 and,
if applicable, section 536.028. This section and chapter
536 are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536 to review, to
delay the effective date, or to disapprove and annul a rule
are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2013, shall be invalid and void.
10. The repeal and reenactment o f subsection 8 of this
section shall become effective August 28, 2025, and the
repeal and reenactment of the remainder of the provisions of
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this section shall become effective July 1, 2026, and shall
apply only to tax credits issued on or after July 1, 2026.
67.3005. 1. For all tax years beginning on or after
January 1, 2013, any taxpayer shall be allowed a credit
against the taxes otherwise due under chapter 143, 147, or
148, excluding withholding tax imposed by sections 143.191
to 143.265, in an amount equal to fifty percent of the
amount of an eligible donation, subject to the restrictions
in this section. The amount of the tax credit claimed shall
not exceed the amount of the taxpayer's state income tax
liability in the tax year for which the credit is claimed.
Any amount of credit that the taxpayer is prohibited by this
section from claiming in a tax year shall not be refundable,
but may be carried forward to any of the taxpayer's two
subsequent tax years.
2. To claim the credit authorized in this section, a
certified sponsor or local organizing committee shall submit
to the department an application for the tax credit
authorized by this section on behalf of taxpayers. The
department shall verify that the app licant has submitted the
following items accurately and completely:
(1) A valid application in the form and format
required by the department;
(2) A statement attesting to the eligible donation
received, which shall include the name and taxp ayer
identification number of the individual making the eligible
donation, the amount of the eligible donation, and the date
the eligible donation was received; and
(3) Payment from the certified sponsor or local
organizing committee equal to the value of the tax credit
for which application is made.
If the certified sponsor or local organizing committee
applying for the tax credit meets all criteria required by
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this subsection, the department shall issue a certificate in
the appropriate amoun t.
3. Tax credits issued under this section may be
assigned, transferred, sold, or otherwise conveyed, and the
new owner of the tax credit shall have the same rights in
the credit as the taxpayer. Whenever a certificate is
assigned, transferred, sold, or otherwise conveyed, a
notarized endorsement shall be filed with the department
specifying the name and address of the new owner of the tax
credit or the value of the credit. In no event shall the
amount of tax credits issued by the departmen t under this
section exceed [ten million] five hundred thousand dollars
in any fiscal year.
4. The department shall promulgate rules to implement
the provisions of this section. Any rule or portion of a
rule, as that term is defined in section 5 36.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of
rulemaking authority and any rul e proposed or adopted after
August 28, 2013, shall be invalid and void.
5. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section and section 67.3000 [and under this section ]
shall automatically sunset six years after August 28, [2019]
2026, unless reauthorized by an act of the general assembly;
and
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(2) If such program is reauthorized, the program
authorized under this section and section 67.3000 [and under
this section] shall automatically sunset twelve years after
the effective date of the reauthorization of these sections;
and
(3) Section 67.3000 and this section shall terminate
on September first of the calendar year immediately
following the calendar year in which the program authorized
under these sections is sunset.
6. The repeal and reenactment of subsection 5 of this
section shall become effective August 28, 2025, and the
repeal and reenactment of the remainder of the provisions of
this section shall become effective July 1, 2026, and shall
apply only to tax credits issued on or after July 1, 2026.