Missouri Senate

House Committee Substitute

AMATEUR SPORTING EVENT TAX CREDIT

This act modifies several provisions related to tax credits for amateur sporting events.

The definition of "eligible costs" is modified to include bid fees and financial guarantees pledged to a site selection organization. The definition of "site selection organization" is also modified to include several additional organizations, as described in the act.

Currently, an applicant is required to submit eligible costs and documentation to the Department of Economic Development no more than thirty days following the conclusion of the sporting event. This act changes such deadline to ninety days. Documented eligible costs paid may be paid either by the applicant or an entity co-hosting the event with the applicant.

This act requires, rather than allows, the Department of Economic Development to determine the total number of tickets sold to the event, or, if such event is participant-based with no admission tickets, the total number of paid participant registrations.

This act also requires, rather than allows, the Department to issue a tax credit pursuant to the provisions of the program. For the purposes of calculating the amount of the tax credit, an applicant shall be allowed $10 for every paid participant registration if the event is participant-based with no paid admission tickets.

The aggregate amount of tax credits issued under this program is limited to $3 million per fiscal year. This act implements a fiscal year cap of $2.7M for all events located in Jackson or St. Louis Counties or St. Louis City.

Collegiate football bowls and other neutral-site games with at least one out-of-state team shall be exempt from the competitive bid requirements of the program.

Currently the Department is prohibited from accepting applications for this tax credit program after August 28, 2019. This act extends the program until August 28, 2030. (Section 67.3000)

This act also extends the sunset for a tax credit for contributions to a local organizing committee or certified sponsor from August 28, 2019, to August 28, 2030. (Section 67.3005)

This provision is identical to HB 1438 (2018).

ATHLETES AND ENTERTAINERS TAX

Currently, the revenue generated from an income tax on certain nonresident athletes and entertainers is distributed among several funds. Such distributions will currently end on December 31, 2020. This act extends the distributions until December 31, 2030. (Section 143.183)

This provision is similar to a provision contained in SS#2/SCS/SBs 617, 611, & 667 (2018).

CORPORATE INCOME APPORTIONMENT

This act provides that intercompany transactions between corporations that file a consolidated return shall not be included in the definition of sales for the purposes of income apportionment. (Section 143.451)

This provision is identical to a provision contained in HCS/SB 884 (2018) and is similar to a provision contained in SS#2/SCS/SBs 617, 611, & 667 (2018).

JOSHUA NORBERG