OPPOSING RESTRICTIONS ON LOCAL USE OF TAX-EXEMPT BONDS FOR PUBLICLY OWNED PROFESSIONAL SPORTS FACILITIES
WHEREAS, language was inserted into the Senate version of the Food and Energy Security Act of 2007, in order to provide a revenue offset for an unrelated tax incentive, that would have prohibited the use of tax-exempt bond financing for professional sports facilities; and
WHEREAS, such proposed legislation represents a dangerous precedent for federal intrusion into state and local governments’ financing decisions by dictating the types of projects that state and local governments may finance through tax-exempt bonds; and
WHEREAS, the proposed legislation even prohibits use of tax-exempt bond financing for mixed-purpose facilities that occasionally are used by professional sports teams, including minor league teams and events; and
WHEREAS, sports facilities and mixed-purpose facilities used for professional sports events often serve as an important stimulus for local economic development; and
WHEREAS, by eliminating tax-exempt financing for sports facilities, the cost to state and local taxpayers for building new sports facilities or rehabilitating existing ones would be dramatically increased or possibly become unaffordable,
NOW, THEREFORE, BE IT RESOLVED that the U.S. Conference of Mayors urges members of Congress to oppose legislation that would impose limitations on state and local governments’ use of tax-exempt bond financing.