Creating a state sales tax rebate to the owner or operator of a newly constructed baseball and softball park project

This bill creates a state sales tax rebate to the owner or operator of a newly constructed baseball and softball park and makes the rebate subject to an award by the enhance Iowa board (board). 2016 Iowa Acts, chapter 1117, modified the sales tax rebate program by eliminating the rebate for movie sites and modified the rebate program for baseball and softball facilities, and applied the rebate program to baseball and softball complexes completed after July 1, 2016, and that had a cost of construction upon completion that was at least $10 million. The baseball and softball complex sales tax rebate program created in 2016 Iowa Acts, chapter 1117, was repealed by its own terms after the board awarded sales tax rebates totaling $5 million, thus no new baseball and softball complexes are eligible to receive a sales tax rebate. Currently, sales tax rebates are occurring to the baseball and softball complexes awarded sales tax rebates until the total rebate award limit of $5 million has been achieved or years after the last project completion date, whichever is earlier. BASEBALL AND SOFTBALL PARK REBATE PROGRAM. The bill changes the name of the qualifying “baseball and softball complex” to “baseball and softball park”, to distinguish it from the ongoing “baseball and softball complex” rebate program. The bill makes the “baseball and softball park” rebate program very similar to the “baseball and softball complex” rebate program enacted in 2016 Iowa Acts, chapter 1117. The bill requires an owner or operator of a baseball and softball park to make an application to the economic development authority (EDA) for financial assistance under the community attraction and tourism program (CAT program) in the same manner and form as an application for the CAT program is made. However, a project for a baseball and softball park is not required to be receiving financial assistance under another part of the CAT program in order to be awarded a sales tax rebate. In order to be eligible for a rebate award, the project upon completion will be a baseball and softball park. The bill defines a “baseball and softball park” to mean the construction of a new baseball and softball park containing multiple baseball and softball fields which includes adjacent retail establishments being developed in conjunction with the baseball and softball park, that has a project completion date that is after July 1, 2023, and has a cost of construction upon completion that is at least $75 million. The bill defines “owner or operator” to means a legal entity where more than percent of its equity interest or voting interest is owned or controlled by individuals who are residents of Iowa, an Iowa corporation, or combination of both and that is the owner or operator of a baseball and softball park and is primarily a promoter of baseball or softball tournaments, or both. Applications for a rebate are reviewed by the EDA in the same manner as applications under the CAT program, except that the EDA is not required to consider whether the applicant has received financial assistance under the CAT program for the same project. Upon review of the application, the EDA makes a recommendation to the board and the board approves, defers, or denies the application. The board shall not award more than $5 million in sales tax rebates for any one baseball and softball park and shall not award more than $5 million in total sales tax rebates for all baseball and softball parks. The sales tax rebate award provisions are repealed days after the board awards a total of $5 million in sales tax rebates. A baseball and softball park that has received an award qualifies for the sales tax rebate if it is located in this state, has a project completion date that is after July 1, 2023, and has construction costs of at least $75 million. “Project completion date” is defined in the bill to mean the date on which baseball or softball games are first played at the baseball and softball park. Under the bill, the availability of the sales tax rebate only applies to sales tax collected for the period that begins on the complex’s project completion date or the date on which the rebate award was made, whichever is later, and ends on the date which is years after the complex’s project completion date. FUTURE REPEAL. The bill repeals the baseball and softball park rebate program days after a total of $5 million has been awarded by the board, and repeals the remaining portions of the program days after $5 million in sales tax rebates have been provided to the baseball and softball parks receiving an award under the bill.