# Plain Language Summary: No Tax Subsidies for Stadiums Act of 2023

Right now, when cities and states want to build or renovate professional sports stadiums, they can issue special bonds to raise money. These bonds are treated as "tax-exempt," which means the people who buy them don't have to pay federal income tax on the interest they earn. This makes the bonds cheaper and easier to sell, which effectively means taxpayers across the country are subsidizing stadium construction even if they don't live there or care about sports. This bill would eliminate that tax break by making it illegal to issue tax-exempt bonds specifically for professional sports stadiums.

The practical effect is straightforward: building a new stadium or renovating an existing one would become more expensive for cities and sports teams. Without the tax-exempt status, bonds would have higher interest rates because investors would demand more return to compensate for the taxes they'd owe. This means teams and local governments would either have to pay more money to borrow funds, find other ways to finance stadium projects, or scale back their plans. The bill applies to any facility used as a stadium or arena for professional sports at least five days a year, so it covers major league sports venues across the country.

The people affected would primarily be sports teams, local governments considering stadium projects, and the investors who buy these bonds. Taxpayers nationwide would benefit because they'd no longer be indirectly funding stadium construction through foregone tax revenue. However, communities that were counting on cheap financing for stadium projects would face tougher choices about whether and how to proceed with construction or renovation plans. The bill only applies to bonds issued after it becomes law, so any existing stadium financing arrangements would continue unchanged.

No Tax Subsidies for Stadiums Act of 2023

Blumenauer, Earl

No Tax Subsidies for Stadiums Act of 2023 This bill denies an exclusion from tax of the interest on professional stadium bonds (i.e., bonds used to finance or refinance capital expenditures for a stadium or arena used for professional sports exhibitions, games, or training).