Sales tax; exempt admissions charged at athletic games or contests between universities or colleges.
If enacted, the bill will significantly alter the financial landscape for collegiate athletic events by eliminating the imposition of a sales tax, which currently stands at 7% on admission fees to various forms of entertainment. This exemption is expected to result in more students and families attending games as the cost of entry becomes lower. Furthermore, it may incentivize universities and colleges to invest further in their athletic programs, potentially enhancing the quality of college sports in the state.
House Bill 1719 aims to amend Section 27-65-22 of the Mississippi Code of 1972 to exempt admissions charged at athletic games or contests between universities or colleges from sales taxation. Proponents of the bill argue that this exemption will encourage attendance at these events and support collegiate athletics by making games more financially accessible for students and fans. This aligns with broader efforts to bolster state and local economies through increased participation in sporting events.
Notably, there may be dissenting opinions regarding the state’s decision to forego this revenue. Critics could argue that this exemption undermines the state's fiscal capacity to support other essential services that may rely on sales tax revenue, which could include education and public infrastructure. Others may also express concerns about creating uneven advantages for certain athletic programs over others, particularly between larger universities and smaller colleges that may not have similar sports revenue strengths.