Minneapolis Super Bowl Could See Additional Tax Breaks

Published On: 5th June 2014

From the internet

In 2018, Minneapolis is going to be filled with Super Bowl fans, as the NFL has awarded Minneapolis the big game.

This is why during the last legislative session, Gov. Mark Dayton and other officials said it is very likely that they’ll ask for more tax breaks to make the 2018 Super Bowl a bit sweeter for the fans.

Members of the city’s bid committee and Dayton held a press conference to celebrate the award the day after the NFL chose the city. The NFL chose it mostly because of the $1 billion stadium that is being built in the Metrodome’s former place. He said the state has not promised any public money outside of the Minnesota sales tax exemption on Super Bowl tickets. This tax exemption has been in place since the city hosted the Super Bowl in 1992.

Chair of the Minnesota Sports Facilities Authority says that they will sit down with NFL officials to discuss the needs of the organization. It is very likely that the Legislature will be asked in 2015 for sales tax exemptions for tickets to some of the other festivities that surround the Super Bowl, such as the NFL Experience exhibition. Private donors will be asked to cover the remainder of the costs.

It is very important for the needs of the NFL to be met for the Super Bowl because it can have far reaching effects into the economy. It is also important to meet needs so that the Super bowl will return to Minneapolis in the future.

It is also a requirement by the NFL for hosts to exempt the Super Bowl players form state income tax. However, the Minnesota Sports facilities Authority said the legislative leaders and the governor were not comfortable with that. In return, the local corporate community will pay that bill. There will be no lodging tax exemption for fans visiting from out of town. However, there may be talks about an exemption for the NFL staffers.

Both the governor and other officials have said that they are not sure how much revenue the state may lose in the process from tax breaks since they don’t know what those taxes will be. They do believe that the ticket tax exemption will cost around $9 million.

The organizers have promised a net benefit to taxpayers. It is estimated that the total costs to conduct the Super Bowl will be around $30 million to $40 million, but local companies already made $30 million in pledges in the first week of the drive. That wasn’t even half of the companies on the list, so there is a benefit here.

One major government commitment, however, is going to come in the form of security, even if donor money covers the cost. They expect the need to be similar to the MLB All-Star game at Target Field or the Republican National convention that was held in 2008 in St. Paul. It is possible that the FBI could become involved since they have a special events management unit that handles such events.

While the state may not make any money in the way of sales tax on tickets, having so many visitors to the Twin Cities means there will be more people spending their money there and producing revenue in other ways, which can make up a lot, if not all or more, of the costs associated with hosting the event.