A bill introduced by Congressman Glenn Grothman aims to close a loophole, allowing sports stadiums to use tax-exempt bonds on construction projects.
The No Tax Subsidies for Stadium Act is co-sponsored by Virginia Democrat Don Beyer, and was also introduced in the Senate by Oklahoma Republican James Lankford and New Jersey Democrat Cory Booker.
Rep. Grothman noted in a news release that, under current law, professional sports teams are allowed to finance stadium construction using tax-exempt municipal bonds, a provision originally intended to help local governments fund essential public infrastructure projects such as schools, hospitals, and roads.
This loophole has enabled wealthy sports franchises to benefit from taxpayer dollars, often with little measurable economic return to the surrounding communities.
Rep. Grothman said of the issue, “Sports infrastructure brings value to communities. But, just like most government programs, we must be intellectually honest and question the need for tax dollars to subsidize projects. If a billion-dollar stadium is worth the investment, the builder should seek those investments in the free market instead of demanding discounted rates courtesy of taxpayers.”
