Present law provides the following:
(1) If there exists in a municipality a sports authority organized pursuant to the Sports Authorities Act of 1993, and if that authority has secured a major league professional baseball, basketball, soccer, or major or minor league professional hockey franchise for that municipality, and only if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the sales tax revenue, then an amount must be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to events of the franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. Present law provides that the amount distributed to the municipality is for the exclusive use of the authority, or comparable municipal agency formally designated by the municipality, in accordance with the Sports Authorities Act of 1993; and
(2) If an indoor sports facility owned by such an authority, in which a professional sports franchise is a tenant, exists in a county with a metropolitan form of government, then an amount must be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all other events occurring at the indoor sports facility and from all other sales of food and drink and other authorized goods or products sold on the premises of the sports facility, parking charges, and related services. Present law provides that the amounts distributed to the municipality are for the exclusive use of the authority, or comparable municipal agency formally designated by the municipality, in accordance with the Sports Authorities Act of 1993. Additionally, such amounts must be used exclusively for the payment of, or the reimbursement of expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency formally designated by the municipality, in accordance with the Sports Authorities Act of 1993.
Present law generally limits any distribution to a municipality as provided for by (1) to a period of 30 years. Following the expiration of this 30-year period, all amounts that would have otherwise been distributed to the municipality or retained in lieu of distribution must be allocated as provided elsewhere without regard to (1). However, the apportionment and distribution of state tax revenue provided in subdivision (1) as it pertains to National Hockey League franchises and the apportionment and distribution of state tax revenue provided in (2) must continue until June 30, 2049.
This bill adds to the above provision that the apportionment and distribution of state tax revenue provided in subdivision (1) as it pertains to National Basketball Association franchises and the apportionment and distribution of state tax revenue provided in (2) must continue until June 30, 2059.
ON APRIL 21, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1085, AS AMENDED.
AMENDMENT #1 adds a requirement that, if an indoor sports facility owned by a sports authority organized under the Sports Authorities Act of 1993, in which an NBA franchise is a tenant, exists in Shelby County, then an amount must be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all other events occurring at the sports facility and all sales of food, drink, and other authorized goods or products sold on the premises, parking charges, and other related services. The amounts distributed to the municipality under this amendment are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, for payment of, or the reimbursement of, expenses associated with securing current, expanded, or new events for indoor sports facilities owned by a municipal agency.

Statutes affected:
Introduced: 67-6-103(d)(1)(B), 67-6-103
Amended with HA0465 -- 04/21/2023: 67-6-103(d)(1)(B), 67-6-103, 67-6-103(d)(1)(A)