Kansas Legislators Debate Tax Benefits Of Attracting Sports Teams

Will Lawrence, chief of staff to Kansas Gov. Laura Kelly, attends a legislative hearing on a proposal to allow the state to issue bonds to help the Kansas City Chiefs build a new stadium in the state,

Kansas legislators are considering a plan to entice the Kansas City Chiefs and the Kansas City Royals to build new stadiums on the Kansas side of their metropolitan area. The proposal involves authorizing state bonds to assist the Super Bowl champions and the professional baseball team in financing the construction of these new facilities. The aim is to attract significant income tax revenue from players and coaches, which is currently going to Missouri.

Professional athletes and touring entertainers are subject to income taxes not only in their home states but also in states where they perform. In Kansas, athletes are taxed based on the percentage of their income derived from games played in the state. Economists have differing opinions on the potential benefits of subsidizing stadiums for pro sports teams, with some questioning the overall cost-effectiveness for communities.

Supporters of bringing the Chiefs and Royals to Kansas argue that the substantial incomes of top professional players could generate considerable tax revenue for the state. The Chiefs' attorney highlighted that the team's players, executives, coaching staff, and visiting teams all contribute to this potential tax revenue stream.

While Kansas already collects some income taxes from professional athletes, the exact figures are not available. Missouri, home to several major sports teams, has seen an increase in income tax revenue from athletes in recent years. However, the exact amount that could potentially flow from Missouri to Kansas if the teams relocate remains uncertain.

Income tax revenue from athletes in Missouri could potentially flow to Kansas.

Legislators propose state bonds to entice Chiefs and Royals for new stadiums.

Kansas taxes athletes based on income from games played in the state.

Debate on subsidizing stadiums for pro sports teams raises cost-effectiveness concerns.

Supporters argue that top professional players could generate significant tax revenue for Kansas.

Exact figures on income tax revenue from athletes in Kansas are not available.

Experts have varying estimates on the potential new income tax revenues for Kansas, with some suggesting millions of dollars in additional revenue. Concerns have been raised about the impact of a new stadium on issues such as traffic congestion, light pollution, and housing affordability for local residents.

There is also a legal consideration regarding the taxation of visiting athletes, with some experts cautioning that such rules could face challenges in court. While taxing athletes' incomes could provide a financial benefit, it may not be the sole determining factor in the economic viability of a new sports venue.

Overall, the debate over luring the Chiefs and Royals to Kansas continues, with lawmakers weighing the potential benefits and drawbacks of investing in new stadiums to boost income tax revenue for the state.