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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: COM DPA 8-1-1-0 |
HB 2704: tax; distribution; county stadium district
Sponsor: Representative Weninger, LD 13
House Engrossed
Overview
Creates a funding mechanism for reconstructing, equipping, repairing, maintaining or improving the Major League Baseball facility owned and operated by the County Stadium District.
History
The Maricopa County Stadium District was formed in accordance with A.R.S. § 48-4202(A) through action of the Maricopa County Board of Supervisors in September 1991. The Stadium District owns Chase Field, home of the Arizona Diamondbacks.
Provisions
1. Requires, beginning January 1, 2026, the State Treasurer to transfer the applicable income taxes collected from professional baseball athletes to the County Stadium District for deposit into the County Stadium District Fund. (Sec. 2)
2. Requires the State Treasurer, beginning the first day of the month following the general effective date, to transfer the applicable transaction privilege tax (TPT) revenues to the County Stadium District for deposit into the County Stadium District Fund. (Sec. 6)
3. States the applicable TPT revenues will be derived from persons conducting business under the retail, amusement, restaurant and prime contracting classifications at, or with respect to events at the Major League Baseball facility or an adjacent building that is owned and operated by the County Stadium District or the Professional Baseball Franchise Organization that occupies the facility or adjacent building. (Sec. 6)
4. Requires, beginning the first day of the month following the general effective date, Arizona Department of Revenue (DOR) to separately account for revenues collected under the retail classification from businesses selling tangible personal property on the premises of a Major League Baseball facility or an adjacent building that is owned and operated by the County Stadium District or the Professional Baseball Franchise Organization that occupies the facility or adjacent building. (Sec. 7)
5. Requires, beginning the first day of the month following the general effective date, DOR to separately account for revenues collected under the amusement classification from the sales of admissions to a Major League Baseball facility that is owned and operated by the County Stadium District or the Professional Baseball Franchise Organization that occupies the facility or adjacent building. (Sec. 8)
6. Requires, beginning the first day of the month following the general effective date, DOR to separately account for revenues collected under the restaurant classification from businesses operating restaurants, dining rooms, lunchrooms, lunch stands, soda fountains, catering services or similar establishments on the premises of a Major League Baseball facility that is owned and operated by the County Stadium District or the Professional Baseball Franchise Organization that occupies the facility or adjacent building. (Sec. 9)
8. Requires, beginning the first day of the month following the general effective date, a city or town to transmit the applicable TPT or similar taxes and fees to the County Stadium District for deposit into the County Stadium District Fund. (Sec. 12)
9. States that the amount to be transmitted is the first 2% of the jurisdiction's tax rate and is derived from the applicable city or town TPT or similar taxes and fees from persons selling tangible personal property at retail, operating as an amusement or similar specified activities, operating as a restaurant or similar specified establishment and prime contracting at, or with respect to events at the Major League Baseball facility that is owned and operated by the County Stadium District or the Professional Baseball Franchise Organization that occupies the facility or adjacent building. (Sec. 12)
11. Requires, beginning the first day of the month following the general effective date, a county to transmit the applicable county excise taxes collected to the County Stadium District for deposit into the County Stadium District Fund. (Sec. 13)
12. States the applicable county excise taxes collected will be derived from persons selling tangible personal property at retail, operating as an amusement or similar specified activities, operating as a restaurant or similar specified establishment and prime contracting at, or with respect to events at the Major League Baseball facility that is owned and operated by the County Stadium District or the Professional Baseball Franchise Organization that occupies the facility or adjacent building. (Sec. 13)
13. Requires, beginning the first day of the month following the general effective date, DOR to separately account for these county excise tax revenues. (Sec. 13)
14. Includes the income tax amount reported to DOR by a Professional Baseball Franchise Organization when determining net proceeds of the state income taxes for the year. (Sec. 17)
15. Requires a Professional Baseball Franchise Organization that is domiciled in AZ to provide DOR the federal taxpayer identification number for each resident and nonresident employee of the organization who provided services in this state for the organization. (Sec. 17)
16. Requires DOR, on or before March 31 of each year, to separately account for and report to the State Treasurer as an aggregate amount the total net income tax revenues collected on all income from an AZ Professional Baseball Franchise Organization and its resident and nonresident employees domiciled in AZ during the preceding year. (Sec. 17)
17. Defines professional baseball franchise organization. (Sec. 17)
18. Requires, on or before November 1 of each year, the Board of Directors to report to the Joint Legislative Budget Committee and the Governor's Office of Strategic Planning and Budgeting regarding all new projects for reconstructing, equipping, repairing, maintaining or improving the Major League Baseball facility or adjacent buildings that are paid for by the district from the County Stadium District Fund and that this report indicates which projects the Professional Baseball Franchise Organization contributed monies toward and the amount contributed. (Sec. 18)
19. Stipulates that any individual, including employees of the Professional Baseball Franchise Organization, are subject to the Conflict of Interest laws for the purposes of spending monies in the Fund. (Sec. 19)
20. Requires monies in the Fund may be used for reconstructing, equipping, repairing, maintaining or improving the Major League Baseball facility or the adjacent buildings that are owned by the District and operated by the District or the Professional Baseball Franchise Organization that occupies the facility or adjacent buildings. (Sec. 19)
21. Requires the District Treasurer to notify the State Treasurer and the Department of Revenue if the Professional Baseball Franchise Organization leaves AZ. On receipt of the notice, the State Treasurer will stop transmitting monies to the Maricopa County Stadium District. (Sec. 20)
22. Requires the State Treasurer to assess a penalty on the Professional Baseball Franchise Organization in the following amounts:
a) $10 Million if it leaves AZ before October 1, 2035.
b) $5 Million if it leaves AZ before October 1, 2045.
c) $1 Million if it leaves AZ before October 1, 2050. (Sec. 20)
23. Requires DOR to stop separately accounting for the TPT and Income tax revenues associated with this funding. (Sec. 20)
24. Requires the District Treasurer to return any remaining monies that are unexpended and unencumbered to be sent to the appropriate jurisdiction from which the monies were generated. (Sec. 20)
25. Requires the State Treasurer to allocate the Penalty amount as follows:
a) 50% to the State General Fund;
b) 25% o the county in which the facility is located; and
c) 25% to the city in which the facility is located. (Sec. 20)
26. States the Legislature finds the Professional Baseball Franchise Organization will contribute at least $250 Million for the purposes reconstructing, equipping, repairing, maintaining or improving the Major League Baseball facility and adjacent buildings. (Sec. 22)
27. Specifies that the TPT and income tax revenues shall only be transmitted through the date the State Treasurer receives notice the Professional Baseball Franchise Organization leaves the Major League Baseball facility or December 31, 2055. (Sec. 2, 6, 12, 14)
28. Contains a delayed repeal date of January 1, 2056. (Sec. 13, 15, 21)
29. Contains technical and conforming changes.
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HB 2704
Initials VP Page 0 House Engrossed
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