From the 11/11/16 edition of the Weekly State Tax Report:
Sundays in the fall mean football fans across the country rush into NFL stadiums to watch their favorite teams play. Others watch from home or at bars with friends and family. Fans are well aware of the multi-million dollar contracts of the players on the field, but few know that billions of tax dollars are spent building and renovating the stadiums that house those players. According to a 2015 report from the Taxpayers Protection Alliance, nearly $7 billion worth of taxpayer money was funneled to 29 of the 31 NFL stadiums between 1995 and 2015 (Sun Life Stadium in Miami and MetLife Stadium in East Rutherford, New Jersey are the exceptions).
Recently, the Nevada Legislature approved $750 million in public money to build a 65,000 seat stadium in Las Vegas in hopes of luring the Raiders organization away from Oakland. Legislators anticipate funding the $750 million subsidy with a 0.88 percent increase in Las Vegas area hotel taxes.
Why would Nevada legislators be willing to spend $750 million of public money to build a stadium for a team that currently resides in Oakland?
The answer is that proponents believe luring sports franchises with publicly funded stadiums not only generates civic pride, but also creates a multiplier effect that leads to more job creation, higher incomes and an overall increase in economic activity. However, real world evidence, published in peer-reviewed academic journals, shows that using public money to finance professional sports venues in an effort to attract and retain sports franchises does not lead to economic growth.
Jacob Bundrick, a policy analyst with the Arkansas Center for Research in Economics (ACRE) at the University of Central Arkansas, discusses the details how using public money to finance professional sports venues in an effort to attract and retain sports franchises does not lead to economic growth in this week’s BNA Insights article, available here (subscription required). Or sign up for a free trial to the Weekly State Tax Report.
Adapting to the Digital Economy: Sales and Use Tax Nexus Developments in 2016
As the 2016 year comes to a close, we continue to see important developments surrounding sales and use tax nexus. For a time, it looked like we might be close to a congressional solution, but it's been left up to the states to determine their own destinies by establishing guidelines primarily for remote seller/online sales activity.
Jeremiah Lynch, a Principal and Practice Leader for Ryan’s National Tax services, discusses key sales and use tax developments over the past year, including congressional activity, state activity and Colorado's unique compliance solution, in a second BNA Insights article this week, available here (subscription required). Or sign up for a free trial to the Weekly State Tax Report.
Compiled by Lauren E. Colandreo
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