LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington, Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6806 NOTE PREPARED: Mar 23, 2021
BILL NUMBER: SB 385 BILL AMENDED:
SUBJECT: Additional Professional Sports Development Area.
FIRST AUTHOR: Sen. Sandlin BILL STATUS: Enrolled
FIRST SPONSOR: Rep. Speedy
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill provides that an additional professional sports development area (PSDA)
in Marion County must be established before July 1, 2024 (instead of July 1, 2022). It provides that taxes
may not be collected in the additional PSDA until after the earlier of: (1) certain conditions having been met;
or (2) June 30, 2023 (instead of June 30, 2021).
Effective Date: June 29, 2021; July 1, 2021.
Explanation of State Expenditures: Department of State Revenue (DOR): The DOR will incur additional
expenses to compute the tax capture from an additional PSDA in Marion County. The DOR’s current level
of staff and resources should be sufficient to implement the provisions within this bill.
Explanation of State Revenues: Summary - The bill extends the time period for allowing Marion County
to establish an additional PSDA, provided that certain requirements are met. The area could capture tax
revenue attributable to taxable events, earned within the area, or derived from activities within the area
beginning in FY 2023. The taxes captured by the area are: the Sales and Use Tax, Individual Adjusted Gross
Income (AGI) tax, local income tax, and food and beverage tax. In addition, the Capital Improvement Board
must provide the innkeeper’s tax and admissions tax captured in the area. Current statute limits the state tax
revenue capture in the additional PSDA to $9.5 M a year for 32 consecutive years. The total amount of the
state tax revenue that could be captured by the additional PSDA is estimated to total about $0.93 M to $1.29
M annually beginning in FY 2023.
Additional Information - The state and local revenue captured from each revenue source by the special taxing
area is shown in the table below. The revenue capture will likely increase in future years.
SB 385 1
 Tax Type Annual Revenue Estimates
Local Tax Revenue Captured
Local Income $53,000 - $129,000
Food And Beverage Tax $40,000 - $55,000
Innkeeper’s Tax*^ $432,000 - $485,000
Admissions Tax* $360,000 - $493,000
Total Local Revenue $885,000 - $1,162,000
State Tax Revenue Captured
Adjusted Gross Income (AGI) Tax $126,000 - $314,000
Sales and Use Tax $800,000 - $980,000
Total State Revenue $926,000 - $1,294,000
Grand Total $1,811,000 - $2,456,000
*The CIB has the option to contribute these taxes towards the total repayment amount.
^The estimate assumes the CIB will only contribute revenue from the original 6%
Marion County Innkeeper’s Tax.
The revenue estimates assume the additional PSDA will contain a multipurpose stadium used for professional
soccer events, a training facility, the building that contains the team's management office, and a hotel once
the state revenue capture begins. The stadium is assumed to be home to a professional soccer team, hold three
other large events each year, and seat approximately 18,500 people. The hotel is assumed to have 200 rooms.
The estimate is based on several factors including: the attendance at Indianapolis' professional soccer games,
attendance at other sporting events held within the existing Professional Sports Development Area (PSDA)
in Marion County, the operating revenue of the franchises within the existing PSDA, the forecasted state tax
revenue captured by the existing PSDA, nonsporting events held at similar venues, and data on hotel
occupancy. Actual revenue captured will depend on the size of the facility, the facilities included in the tax
area, the number of events held at the stadium, future attendance, and the economic activity within the tax
area.
Sales Tax revenue is deposited in the General Fund (99.838%), Commuter Rail Service Fund (0.131%), and
Industrial Rail Service Fund (0.031%). Income Tax revenue is deposited in the state General Fund.
Explanation of Local Expenditures:
Explanation of Local Revenues: The bill extends the time period for allowing Marion County to establish
an additional PSDA from of July 1, 2022, to July 1, 2024. Once the area is established the state will capture
the local income tax and food and beverage tax revenue from attributable events and deposit it in the
Additional Professional Sports Development Area Fund. Additionally, the CIB may pass a resolution to use
the Admissions Tax and Innkeeper’s Tax revenue attributable to the additional PSDA towards payment of
lease rentals related to the additional PSDA. If all the attributable revenue is dedicated towards the additional
SB 385 2
PSDA, it may reduce total local tax collections by approximately $0.89 M to $1.16 M annually beginning
FY 2023.
Additional Information: Local Income Tax (LIT): The additional PSDA may capture the local income tax
revenue attributable to income earned within the area beginning in FY 2023. The creation of the additional
PSDA could result in $53,000 to $129,000 in LIT revenue annually being diverted to fund capital
improvements within the additional PSDA.
Food and Beverage Tax: The amount of Food and Beverage Tax revenue from covered events is estimated
to be between $40,000 and $55,000 in FY 2023.
Marion County Admissions Tax: Marion County may impose a 10% Admission Tax on events held in a
facility located in the additional PSDA. The Admissions Tax would be imposed on the potential professional
soccer events held at facilities located inside the additional PSDA. The amount of Admissions Tax revenue
from covered events is estimated to be between $330,000 and $450,000 in FY 2023. The estimate is based
on the capacity of the professional soccer team's current stadium and the team playing in a larger facility. The
CIB may adopt a resolution to apply all or portions of the admissions tax collected at the soccer facility to
the payment of lease rentals allowed.
Innkeeper’s Tax: The CIB may adopt a resolution to apply all or portions of the 10% Innkeeper’s Tax
collected at the soccer facility to the payment of lease rentals allowed under the bill. The amount of
Innkeeper’s Tax revenue from covered events is estimated to be between $432,000 and $485,000 in FY 2023.
Marion County TIF: The bill states that CIB and the city may reach an agreement to use any revenues
attributable to a current or new tax increment financing district to make payments of bonds.
State Agencies Affected: State Budget Agency; Department of State Revenue.
Local Agencies Affected: Marion County.
Information Sources: LSA, Fiscal Issue Brief - Indiana's Geographically Targeted Development Programs:
Professional Sports and Convention Development Areas; Forbes, NFL Team Values: The Business of
Football; Forbes, NBA Team Values: The Business of Basketball; Forbes, Minor League Baseball's Most
Valuable Teams; ESPN, NFL Attendance, NBA Attendance. Minor League Baseball, International League;
Indy Eleven, http://www.indyeleven.com/#; Bureau of Labor Statistics, Quarterly Census of Employment
and Wages.
Fiscal Analyst: Seth Payton, 317-233-3546.
SB 385 3


Statutes affected:
1. Introduced Senate Bill (S): 36-7-31.5-5, 36-7-31.5-8
2. Senate Bill (S): 36-7-31.5-5, 36-7-31.5-8
3. Senate Bill (H): 36-7-31.5-5, 36-7-31.5-8
4. Enrolled Senate Bill (S): 36-7-31.5-5, 36-7-31.5-8