Federal

No Tax Subsidies for Stadiums Act of 2023

Source: Congress.gov · 351 words in original text

What This Bill Does

This bill changes tax rules for bonds used to pay for professional stadiums. It stops these bonds from getting special tax treatment that currently reduces the taxes owed on the money earned from them.

Who It Affects

Organizations that issue bonds to finance professional stadiums or arenas. Investors who buy these bonds. Professional sports teams and facilities that use stadiums.

Key Provisions

• Bonds used to finance or refinance building costs for stadiums or arenas cannot be treated as tax-exempt bonds (meaning the income from these bonds will be subject to taxes). (Sec. 2(b)) • This rule applies to facilities that function as stadiums or arenas for professional sports exhibitions, games, or training for at least 5 days in any calendar year. (Sec. 2(b)) • The rule also applies to bonds used to finance appurtenant real property (land or structures attached to and belonging with the main facility). (Sec. 2(b))

What Changes

Bonds issued to pay for professional stadium construction or upgrades after this bill becomes law will no longer receive tax-exempt status. This means people and organizations earning money from these bonds will have to pay federal taxes on that income.

Important Definitions

Professional stadium bond: Any bond issued to pay for building costs or improvements for a facility used as a stadium or arena for professional sports at least 5 days per calendar year.

Effective Date

Bonds issued after the date this bill becomes law. (Sec. 2(c))

II 118TH CONGRESS 1ST SESSION S. 392 To amend the Internal Revenue Code of 1986 to ensure that bonds used to finance professional stadiums are not treated as tax-exempt bonds. IN THE SENATE OF THE UNITED STATES FEBRUARY 13, 2023 Mr. LANKFORD (for himself and Mr. BOOKER) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to ensure that bonds used to finance professional stadiums are not treated as tax-exempt bonds. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘No Tax Subsidies for 4 Stadiums Act of 2023’’. 5 SEC. 2. NO TAX-EXEMPT BONDS FOR PROFESSIONAL STA- 6 DIUMS. 7 (a) IN GENERAL.—Section 103(b) of the Internal 8 Revenue Code of 1986 is amended by adding at the end 9 the following new paragraph: 10 VerDate Sep 11 2014 00:13 Feb 28, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S392.IS S392 kjohnson on DSK79L0C42PROD with BILLS 2 •S 392 IS ‘‘(4) PROFESSIONAL STADIUM BOND.—Any pro- 1 fessional stadium bond.’’. 2 (b) PROFESSIONAL STADIUM BOND DEFINED.—Sec- 3 tion 103(c) of such Code is amended by adding at the end 4 the following new paragraph: 5 ‘‘(3) PROFESSIONAL STADIUM BOND.—The 6 term ‘professional stadium bond’ means any bond 7 issued as part of an issue any proceeds of which are 8 used to finance or refinance capital expenditures al- 9 locable to a facility (or appurtenant real property) 10 which, during at least 5 days during any calendar 11 year, is used as a stadium or arena for professional 12 sports exhibitions, games, or training.’’. 13 (c) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to bonds issued after the date of 15 the enactment of this Act. 16 Æ VerDate Sep 11 2014 00:13 Feb 28, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S392.IS S392 kjohnson on DSK79L0C42PROD with BILLS

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