Back to legislation introduced in Council period 15

Baseball Revenue Amendment Act of 2003
Bill 15-270

Chairman Linda W. Cropp, at the request of the Mayor

A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Chairman Linda W. Cropp, at the request of the Mayor, introduced the following bill, which was referred to the Committee on

To amend Title 47 of the District of Columbia Official Code to create a special non-lapsing account within the General Fund to be denominated as the "Ballpark Revenue Fund"; and to amend the Tax Increment Financing Authorization Act of 1998 to create a tax increment financing district and allocate to the Ballpark Revenue Fund the incremental real property tax revenues and sales tax revenues from such district, to impose a fee on the gross receipts of certain persons doing business within the District of Columbia, to impose a sales tax at the point of sale within the District of Columbia on tickets of admission to certain events, and to provide that the Ballpark Revenue Fund be used to pay, or to support debt service on bonds or other evidence of indebtedness to be issued to pay, certain costs of the development, construction, or renovation of a stadium or arena after January 1, 2003, that has as its primary purpose the hosting of professional athletic team events in the District of Columbia.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Ballpark Revenue Amendment Act of 2003".

Sec. 2. The Council of the District of Columbia finds that:

(1) The construction, development, or renovation of a publicly financed stadium or arena, after January 1, 2003, for professional athletic team events would be in the interest of the citizens of the District because such a publicly financed stadium or arena would contribute to the social and economic well being of the citizens of the District and would significantly enhance the economic development and employment opportunities within the District.

(2) In order to further that interest, it is appropriate for the District to contribute a portion of the cost of constructing, developing, or renovating such a stadium or arena and to that end, to impose a fee based upon the gross receipts of certain persons doing business within the District of Columbia, to impose a tax on the sales of tickets to certain events at the stadium or arena and to allocate to a special non-lapsing account within the General Fund the incremental real property tax revenues and the incremental sales tax revenues derived from a tax increment financing district comprising the area surrounding the stadium or arena, and to utilize the revenues derived from such fees and taxes to pay a portion of the cost of development, construction, or renovation of the stadium or arena or the debt service on bonds or other evidence of indebtedness issued to finance a portion of the cost of the development, construction, or renovation of the stadium or arena.

Sec. 3. Creation of Revenue Fund.

Title 47 of the District of Columbia Official Code is hereby amended by adding the following new section:

"§47- E 31.01 Ballpark Revenue Fund.

(a) Notwithstanding Article 9 of Title 28 of the D.C. Official Code or any other provision, pursuant to the authority granted by § 47-131(b), the Council hereby establishes within the General Fund a special non-lapsing account to be denominated as the "Ballpark Revenue Fund". The Chief Financial Officer shall pay into the Ballpark Revenue Fund all receipts from those fees and taxes specifically identified by any provision of District of Columbia law to be paid into such fund. The Chief Financial Officer shall create a sub-account within the Ballpark Revenue Fund for each type of fee and tax that is to be paid into such fund and shall allocate the receipts from each type of fee and tax to the appropriate sub-account. The Mayor, or any District government agency or instrumentality which has been designated by the Mayor, may pledge and create a security interest in the monies in the Ballpark Revenue Fund, or any sub-account or sub-accounts within such fund for the payment of the costs of carrying out any of the purposes described in subsection (c) of this section, or for the payment of the debt service on any bonds or other evidence of indebtedness issued by the District, or any District government agency or instrumentality, for any of the purposes described in subsection (c) of this section, without further action by the Council as permitted by section 490(f) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 809; D.C. Official Code 1-204.90(1)). If bonds or other evidence of indebtedness are issued, such payment will be made in accordance with the provisions of the documents entered into by the District or any District agency or instrumentality in connection with the issuance of any such bonds or other evidence of indebtedness. Notwithstanding Article 9 of Title 28 or any other provision to the contrary, any security interest created pursuant to this subsection shall be valid, binding and perfected from the time such security interest is created, with or without the physical delivery of any funds or any other property and with or without further action. Such security interest shall be valid, binding and perfected whether or not any statement, document, or instrument relating to such security interest is recorded or filed. The lien created by such security interest is valid, binding and perfected with respect to any person (as defined in § 47-2001(i)) having claims against the District, whether or not such person has notice of such lien.

(b) For purposes of this section, "ballpark" shall mean a stadium or arena that has as its primary purpose the hosting of professional athletic team events and is constructed or renovated after January 1, 2003 through the use of, in whole or in part, public financing.

(c) The purposes for which the monies deposited in the Ballpark Revenue Fund may be used are as follows:

(1) To directly pay or to finance the reimbursement of any fund of the General Fund of the District which has been the source of the payment of, or any loan, reprogramming or transfer of funds to any District government agency or instrumentality for the payment of, reasonable and verified predevelopment and development costs that have been borne by the District or such District government agency or instrumentality for a ballpark or any transportation facilities (including parking) adjacent to or serving a ballpark;

(2) To directly pay or finance the reimbursement of the District or any District government agency or instrumentality for any and all reasonable and verified predevelopment and development costs that were borne by the District or such District government agency or instrumentality for a ballpark or any transportation facilities (including parking) adjacent to or serving a ballpark;

(3) To directly pay or finance the acquisition of real property, including the costs of purchasing, leasing, condemning, or otherwise acquiring real property or an interest in them, including rights-of way or other easements, that will serve as the site for a ballpark;

(4) To directly pay or finance the demolition of buildings located on the future site of a ballpark;

(5) To directly pay or finance a portion of the cost of the development and construction of a ballpark and any facilities functionally related and subordinate to a ballpark;

(6) To directly pay or finance a portion of the cost of renovating Robert F. Kennedy Stadium for use as a ballpark until the construction of a new ballpark;

(7) To directly pay or finance a portion of the cost of any future renovations, improvements or upgrades to Robert F. Kennedy Stadium or a ballpark after its construction; and

(8) To directly pay or finance any other costs of the District government associated with the development of a ballpark.

Sec. 4. Creation of the Ballpark TIF Area.

The Tax Increment Financing Authorization Act of 1998 ("Tax Act"), effective June 24,
13 2000 (D.C. Law I3-128; D.C. Official Code 2-1217.01 et seq.) is hereby amended by adding the
14 following new section:

"§13. Ballpark TIF Area.

(a) Notwithstanding any other provision of this title, there is hereby created a TIF area denominated the "Ballpark TIF Area", the real property tax increment revenues and the sales tax increment revenues from which shall be allocated as provided in this section. The DC Ballpark TIF Area is defincd as either: (i) the RFK TIF Area until such time as construction shall have been completed and operations have commenced at a ballpark constructed after January 1, 2003, that has as its primary purpose the hosting of professional athletic events, financed in whole or in part by monies deposited in, or bonds or other evidence of indebtedness, the debt service upon which is financed in whole or in part by monies deposited in, the Ballpark Revenue Fund or (ii) after such time the New Ballpark TIF Area. The RFK TIF Area is described as that geographic area of the District of Columbia consisting of the areas designated as A, B, C, D or E on the revised map entitled "Map to Designate Transfer of Stadium and Lease of Parking Lots to the District," prepared jointly by the National Park Service (National Capital Region) and the District of Columbia Department of Public Works for site development and dated October 1986 (NPS Drawing number 831/87284-A) and any other future additions thereto. The New Ballpark TIF Area is such geographic area of the District of Columbia as may be designated by resolution of the Council.

(b) Notwithstanding any other provision of this subchapter, with respect to the RFK TIF Area, the initial sales tax amount shall mean the available sales tax revenue from locations within such area for the tax year 2003 and the initial assessed value shall mean the assessed value of each lot of taxable real property within such area on January 1, 2003. Notwithstanding any other provision of this subchapter, with respect to the New Ballpark TIF Area, the initial sales tax amount shall mean the available sales tax revenue from locations within such area for the tax year preceding the year in which the area is designated by resolution of the Council and the initial assessed value shall mean the assessed value of each lot of taxable real property on the date the area is designated by resolution of the Council.

(c) Notwithstanding any other provision of this subchapter, the construction, development, or renovation of a publicly financed stadium or arena for use as a ballpark, after January 1, 2003, for professional athletic team events is declared to be an "eligible project" as defined in § 2-1217.01(18).

(d) Notwithstanding any other provision of this subchapter, the real property tax increment revenues and the sales tax increment revenues from the DC Ballpark TIF Area shall be allocated and paid into the Ballpark Revenue Fund, which is hereby declared to be a tax increment allocation account as described in §2-1217.05. The revenues so deposited in the Ballpark Revenue Fund shall be used for any of the purposes described in §47-131.01 and any such use is declared to be use for an eligible project as defined in §2-1217.01(18).

(e) Without limiting the generality of this subchapter, including the ability to apply the real property tax increment revenues and the sales tax increment revenues to the payment of TIF bonds, the monies in the Ballpark Revenue Fund may be used to secure bonds or other evidence of indebtedness issued in accordance with the provisions of §1-204.90 and §3-1411 et seq., without regard to any limitations contained in this subchapter.

(f) The $300 million limitation on the issuance of TIF bonds contained in §2-1217.02(b) l shall not apply to any bonds supported in whole or in part by real property tax increment revenues or sales tax increment revenues allocated to the Ballpark Revenue Fund.

Sec. 5. Imposition of Ticket Tax.

Title 47 of the District of Columbia Official Code is hereby amended by adding the following section:

"§47-2002.05. Tax on Certain Tickets of Admission.

(a) The term "professional athletic team" includes, but is not limited to, any professional baseball, basketball, football, soccer or hockey team.

(b) The term "Ballpark" means (i) a stadium or arena constructed after January 1, 2003 that has as its primary purpose the hosting of professional athletic team events and is constructed in whole or in part with monies deposited in, or bonds or other evidence of indebtedness the debt service upon which is financed in whole or in part by monies deposited in, the Ballpark Revenue Fund, and (ii) until such time as the hosting of professional athletic team events for which tickets are sold has commenced at the aforementioned newly-constructed stadium or arena, the term "Ballpark" shall also include Robert F. Kennedy Stadium, described as that geographic area of the District of Columbia consisting of the areas designated as A, B, C, D or E on the revised map entitled "Map to Designate Transfer of Stadium and Lease of Parking Lots to the District," prepared jointly by the National Park Service (National Capital Region) and the District of Columbia Department of Public Works for site development and dated October 1986 (NPS Drawing number 831/87284-A) and any other future additions thereto.

(c) The term "ticket" means any physical, electronic, or other form of a certificate or token showing that a fare, admission, or license fee for a revocable right to enter the Ballpark has been paid.

(d) Notwithstanding any other provision of this Chapter relating to the imposition of sales tax on either a retail sale or a sale at retail, there is hereby imposed a sates tax of 10% on the gross receipts of any person from the sale of tickets to any public event referred to in §47-2001(n)(1)(H) sponsored by such person (or any affiliate of such person) and to be performed at the Ballpark, regardless of whether any such ticket is sold to a person who resells the ticket to another person or to a person who uses the ticket for admission to the athletic event; provided that with respect to tickets to events at Robert F. Kennedy Stadium, the tax shall apply only to professional baseball games or exhibitions. The sales tax imposed by this section shall be in lieu of any sales tax imposed on tickets by Chapter 20 of Title 47.

(e) The revenues received by the District from the tax imposed by this section shall be deposited into the Ballpark Revenue Fund."

Sec. 6. Ballpark Fee.

Title 47 of the District of Columbia Official Code is hereby amended by adding the following new Chapter:

"Chapter 27B. Ballpark Fee.
§47-2754. Definitions.
For the purposes of this chapter, the term:
(1) "District gross receipts" means all income derived from any activity whatsoever from , sources within the District, whether compensated in the District or not, prior to the deduction of any expense whatsoever connected with the production of such income, except that beginning with the fee that is required by this title to be paid in fiscal year 2004 and thereafter, the calculation of such income shall not include the collection of federal or local taxes on motor vehicle fuel.
(2)(A) "Feepayer", except as provided in subparagraph (B) of this paragraph, means any person, fiduciary, partnership, unincorporated business, association, corporation or any other entity subject to:

(i) Subchapter VII of Chapter 18 of this title;

(ii) Subchapter VIII of Chapter 18 of this title; or

(iii) The provisions of the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 946; D.C. Official Code §51-101 et seq.), except any employer in the employer's capacity as a householder as distinguished from an employer in the pursuit of a trade, occupation, profession, enterprise, or vocation.

(B) "Feepayer" shall not include a child development home, as defined in §4401(3).

§47-2755. Ballpark Fee.
(a)(1) For the fiscal year beginning October 1, 2003, and each fiscal year thereafter until and including October 1, 2033, each feepayer shall remit, on or before June 15 of each year, a fee that shall be based upon the annual District gross receipts of the feepayer for the feepayer's preceding tax year and computed according to the fee schedule provided in subsection (b) of this section.

(2) For purposes of this subsection, a feepayer that is exempt from taxation pursuant to §47-1802.01 shall not be subject to the fee unless, as provided in § 47-1802.01 the feepayer has unrelated business income subject to tax under §511 of the Internal Revenue Code of 1986. If such feepayer exempt from taxation has unrelated business income, the feepayer shall remit the fee based upon the feepayer's annual District gross receipts that were associated with the feepayer's unrelated business income for the feepayer's preceding fiscal year.

(3) The Mayor shall provide the Council with the following information associated with the ballpark:

(i) A copy of any term sheet, loan commitment and any other obligation executed by the District or any District government agency or instrumentality to finance the District government's costs associated with the development of a ballpark;

(ii) A copy of each contract executed by the District or any District government agency or instrumentality for goods or services associated with the development of a ballpark; and

(iii) On or before July 1, 2004, and every 6 months thereafter, a biannual report which provides an accounting and itemization of all financial obligations and expenditures of the District government and all revenues generated to the District government, associated with the development of a ballpark.

(b) The amount of the fee shall be computed according to the following schedule:

(1) Each feepayer with annual District gross receipts of $3,000,000 to $4,000,000 shall pay $1,300;

(2) Each feepayer with annual District gross receipts of $4,000,001 to $8,000,000 shall pay $3,900;

(3) Each feepayer with annual District gross receipts of $8,000,001 to $12,000,000 shall pay $5,900; and

(4) Each feepayer with annual District gross receipts of $12,000,001 to $16,000,000 shall pay $9,000; and

(5) Each feepayer with annual District gross receipts greater than $16,000,000 shall pay $12,900.

(c) The revenues received by the District from the fee imposed by this section shall be deposited into the Ballpark Revenue Fund.

§47-2756 Enforcement.

Any feepayer who fails to file a return for or pay the fee due as required by §47-2755 shall be subject to the same enforcement provisions and administrative provisions applicable to the fee as provided in Chapter 18 and Chapter 41 of this title, but the period of limitations upon assessment and collection shall be determined by §47-4301."

Sec. 7. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by §602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code §1-206(c)(3)).

Sec. 9. Applicability.

Notwithstanding the provisions herein, this act shall not take effect unless on or before October 1, 2003 the Mayor has determined, in writing, that: (a) any professional sports league locating a team within the District after January 1, 2003 has approved the location of a professional sports franchise within the District of Columbia; and (b) there exists an agreement enforceable by the District or an agency or instrumentality thereof for such franchise to play all or substantially all of its regular season home games commencing with the 2004 playing season of such league at a stadium in the District of Columbia that is wholly or partially publicly financed.

Sec. 8. Effective date. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of Congressional review as provided in § 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat 813; D.C. Official Code § 1-246.02(c)(1)), and publication in the District of Columbia Register.

Baseball Revenue Amendment Act of 2003 Bill 15-270

Baseball Revenue Amendment Act of 2003
Bill 15-270