State Fiscal Highlights
· No direct fiscal effect on the state.
Local Fiscal Highlights
· No direct fiscal effect on political subdivisions.
Detailed Fiscal Analysis
Background
Current law enacted in H.B. 1, the main operating budget act for FY 2010 and FY 2011, creates a financial incentive for local political subdivisions to enter into joinder agreements with site selection organizations to host certain sporting events. The incentive is to be provided through the Department of Development in the form of a payment from the GRF in an amount equal to the estimated incremental increase in state sales tax revenues resulting from the event if such an increase is estimated to be at least $250,000. H.B. 1 capped state incentive payments at $500,000 for a single eligible entity, and caps the total amount that the state may disburse in a single year at $1,000,000. Disbursements for these incentives will not begin until July 1, 2011, the beginning of FY 2012.
The bill
The bill adds certain Olympic-style boxing competitions to the list of sporting events for which local governments are eligible to receive the incentive that was created in H.B. 1. Eligible competitions include the National Golden Gloves Tournament, the USA Boxing Association National Championships, and the International Boxing Association World Cup or World Championships. The bill does not create any additional costs to the state or local governments by adding these boxing events. The caps on disbursements would remain the same for boxing events as for other eligible events listed in current law. In addition, as under current law, any payments made to local governments to attract eligible boxing events would not be made before July 1, 2011.
