No Tax Subsidies for Stadiums Act

No Tax Subsidies for Stadiums Act

This bill amends the Internal Revenue Code, with respect to the tax exemption requirements for state and local bonds, to specify that bonds issued to finance professional sports stadiums meet the private security or payment test. (A state or local bond that satisfies both the private business use test and the private security or payment test is considered a private activity bond that is taxable unless it is used for certain qualified private activities.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 811 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 811

    To amend the Internal Revenue Code of 1986 to treat obligations 
  financing professional sports stadiums as private activity bonds if 
          such obligations meet the private business use test.


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                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2017

 Mr. Russell (for himself, Mr. Meadows, and Mr. Blumenauer) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to treat obligations 
  financing professional sports stadiums as private activity bonds if 
          such obligations meet the private business use test.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Tax Subsidies for Stadiums Act''.

SEC. 2. TREATMENT OF CERTAIN OBLIGATIONS FINANCING PROFESSIONAL SPORTS 
              STADIUMS AS PRIVATE ACTIVITY BONDS.

    (a) In General.--Section 141(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(10) Special rule for professional sports stadiums.--
                    ``(A) In general.--In the case of any issue any 
                proceeds of which are to be used to provide a 
                professional sports stadium, such issue shall be 
                treated as meeting the private security or payment test 
                of subsection (b)(2).
                    ``(B) Professional sports stadium.--For purposes of 
                this paragraph, the term `professional sports stadium' 
                means any facility (and appurtenant real property) 
                which, during at least 5 days during any calendar year, 
                is used as a stadium or arena for professional sports 
                exhibitions, games, or training.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.
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