JEFFERSON CITY, Mo. – State Rep. Jean Evans has filed legislation that will help the state continue to attract amateur sporting events and their associated economic benefits. Evans’ legislation, HB 1438, would renew and enhance the Amateur Sporting Tax Credit Program that was originally passed into law in 2013, and fully implemented in 2014.
The tax credit allows for a portion of state sales tax revenue generated by new sporting events brought to Missouri to be rebated to certified nonprofit local host organizations to offset event expenses and obligations. Since its implementation, the credit has helped Missouri attract at least 50 events that in total will generate an estimated $229 million in direct visitor spending, $9.86 million in state tax revenue, and more than 325,000 overnight visitors.
“This program has been a huge success in making us competitive with other states as we work to land major events like the SEC Men’s Basketball Tournament and the NCAA Tournament. These events are major stimulators for our economy that bring in thousands of visitors and millions of dollars in spending,” said Evans, R-Manchester. “As we look for ways to create jobs and boost economic activity, this program has a proven track record of success that we can continue to benefit from in the years to come.”
Evans noted the program has built-in protections to ensure the state receives a return on its investment. Specifically, nonprofit host organizations receive the tax credit only after an event is secured, takes place, and dollars have already been pumped into the state’s economy. The tax credit is based on the number of people an event attracts. It is not based on projected economic activity, but on actual economic activity.
Evans’ legislation would make the tax credit program even more effective by allowing participant-based events to qualify, in addition to attendance-based events. The change would provide cities outside of Kansas City and St. Louis greater opportunity to utilize the tool for the benefit of their communities and the entire state.
HB 1438 would reauthorize the Amateur Sporting Events Tax Credit until August 28, 2030. Without the legislation, the credit is set to expire in 2019.
