This bill amends existing tax laws to exempt certain leasehold interests in arenas with a seating capacity of more than 2,000 from the leasehold excise tax. Specifically, it introduces a new exemption for leasehold interests in public or entertainment areas of arenas that have a seating capacity of more than 4,000, are located on city-owned land, are situated within cities with populations over 100,000, and where private entities were responsible for 100% of the construction costs of improvements to the arena. The bill also establishes a requirement for taxpayers claiming this exemption to file an annual tax performance report and specifies that this exemption will not apply to leasehold interests on or after October 1, 2033.

Additionally, the bill includes various amendments to existing law, such as changing the population thresholds for certain exemptions and updating the definitions of "public or entertainment areas." It also sets forth a performance statement to evaluate the effectiveness of the tax preference, focusing on economic benefits, employment opportunities, and community support provided by the operational entities of these arenas. The bill is set to take effect on October 1, 2023, and will expire on January 1, 2034.

Statutes affected:
Original Bill: 82.29A.130
Substitute Bill: 82.29A.130
Bill as Passed Legislature: 82.29A.130
Session Law: 82.29A.130