Effective - 28 Aug 2018, 2 histories
67.3000. Definitions — contract submitted to department for certification — tax credit eligibility, procedure, requirements — rulemaking authority. — 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 active member of the National Association of Sports Commissions;
(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
(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 solely to provide funding to attract sporting events to this state;
(8) "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) "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) "Joinder undertaking", an agreement entered into by one or more applicants, acting individually or collectively, and a site selection organization 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;
(11) "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;
(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 Committee (USOC); a national governing body (NGB) or international federation of a sport recognized by the USOC; the United States Golf Association (USGA); the United 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); other major regional, national, and international sports associations, and amateur organizations 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 event 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 institution 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 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.
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 registrations.
(2) No later than sixty days following the receipt of eligible costs and documentation of such costs from the applicant as required in subsection 3 of this section, the department shall, except for the limitations under subsection 5 of this section, issue 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 dollars for every admission ticket sold to such event; or
(c) An amount equal to ten dollars for every paid participant registration if such event was participant-based and did not sell admission tickets.
The calculations under paragraphs (b) and (c) of this subdivision shall use the actual number of tickets sold or registrations paid, not an estimated amount.
(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 of the close of the tax year for which the credits were issued. Tax credits authorized by this section may be transferred, sold, or assigned by filing a notarized endorsement thereof with the department that names the transferee, the amount of tax credit transferred, and the value received for the credit, as well as any other information reasonably requested by the department.
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 seven 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.
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 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*, provided that the support contracts may be certified on or prior to August 28, 2025*, 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 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 rule proposed or adopted after August 28, 2013, shall be invalid and void.
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(L. 2013 S.B. 10 & 25, A.L. 2018 H.B. 1388 merged with S.B. 773)
Sunset date 8-28-25, see § 67.3005
Termination date 9-01-26, see § 67.3005
*Year "2024" appears in original rolls of S.B. 773, 2018.