Hoppe backs Vikings stadium bill

Rep. Joe Hoppe is one of the authors on the House version of the Vikings stadium bill.  Here’s a primer on how the bill would work, since you’ll be hearing a lot about it over the next few weeks.

The costs of the facility would be split into thirds:  1/3 by the state, 1/3 by a local partner (a city or county), and 1/3 by the team.  The stadium would be owned and operated by a new government agency called the Minnesota Stadium Authority.  The Authority would have the responsibility for selecting the site of the new stadium, and after construction would fulfill a similar role to the current Metropolitan Sports Facility Commission (which operates the Metrodome).

The state share of the costs would be financed as follows:

  • The state would collect the naming rights from the facility
  • a 10% wholesale tax on sports memorabilia, including clothing, trading cards, and other licensed products.  This tax applies to ALL sports, not just the NFL, so 10% of your Joe Mauer jersey purchase would go to the Vikings stadium.
  • a 5% income tax surcharge on player salaries
  • a sales tax on luxury boxes
  • proceeds from a football-themed lottery game
  • a sales tax on video equipment used for satellite downloads

According to the Minnesota House Research Service, these funding sources would generate enough revenue to support $250-300 million worth of bonds.  Based on this, the total cost of the facility would be between $750 and $900 million dollars, assuming a minimum 33% contribution by the Vikings.

The local partner as part of the bill would have a menu of taxing options they could choose from to pay their share of the stadium’s cost.  These include:

  • Increasing the sales tax in their jurisdiction by 0.5%
  • 3% taxes on any (or all) of the following:  tickets, entertainment, food, lodging, and liquor
  • Minneapolis has the option of using any excess sales tax revenues from Target Field and/or the Minneapolis Convention Center to apply to their share
  • Any localities who want to partner with stadium’s host site would be allowed to keep 60% of the revenue for their purposes.  For instance, if Golden Valley wanted to partner with Minneapolis, it could institute the same taxes as Minneapolis, send 40% of the revenues to the stadium fund and keep the rest.

The team, meanwhile, would face the requirement of having to spend at least one-third of the facility’s cost.  The state and local contributions are capped once an agreement is struck between the Authority, the local partner, and the team.  Any cost overruns in construction are the team’s responsibility.

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2 Responses to “Hoppe backs Vikings stadium bill”

  1. These information are very relevant to present times and issues about taxes. Thanks for sharing this post.:)

Trackbacks/Pingbacks

  1. Hoppe and the Stadium: Having it both ways | Brick City Blog - April 15, 2011

    […] the Taxpayers League of Minnesota blasted him for being an author on the Minnesota Vikings stadium bill, Rep. Joe Hoppe has responded, giving the following statement to the Chanhassen Villager: […]

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