Virginia SB 718: Virginia Sports and Entertainment Authority and Financing Fund; established, report.

Bill Text

2024SESSION
INTRODUCED
24103208D
1 SENATEBILLNO.718
2 OfferedJanuary19,2024
3 A BILL to amend the Code of Virginia by adding in Title 15.2 a chapter numbered 58.1, consisting of
4 sections numbered 15.2-5824 through 15.2-5842, relating to Virginia Sports and Entertainment
5 Authority and Financing Fund established; report.
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Patrons––SurovellandStuart
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8 ReferredtoCommitteeonFinanceandAppropriations
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10 Be it enacted by the General Assembly of Virginia:
11 1. That the Code of Virginia is amended by adding in Title 15.2 a chapter numbered 58.1,
12 containing consisting of sections numbered 15.2-5824 through 15.2-5842, as follows:
13 CHAPTER58.1.
14 VIRGINIASPORTSANDENTERTAINMENTAUTHORITY.
15 §15.2-5824. Definitions.
16 As used in this chapter, unless the context requires a different meaning:
17 "Affiliate" means any person that is owned entirely or in part by a company or is an affiliate,
18 assignee, employee, or agent of a company or is otherwise selected by a company to exercise any rights
19 or undertake any obligations of the company that may be granted or established pursuant to this
20 chapter.
21 "Authority" means the Virginia Sports and Entertainment Authority established in this chapter.
22 "Campus" means the land, buildings, facilities, and other development from which revenues will be
23 generated for the Authority. For purposes of this definition, "facilities" includes without limitation (i) a
24 sports arena capable of hosting professional sports games; (ii) a performance venue; (iii) a public plaza
25 located between the arena and the performance venue; (iv) hotel developments; (v) retail, food, and
26 beverage developments, including whether fixed or mobile; (vi) office building development that includes
27 space for company headquarters and other entities; (vii) areas for practices and training of professional
28 sports teams; (viii) areas for broadcasting production; (ix) onsite underground parking of at least 2,500
29 parking spaces; (x) residential buildings; (xi) parks and other public open spaces; and (xii) related
30 on-site infrastructure necessary or desirable for all such elements for the campus.
31 "City" means the City of Alexandria.
32 "Company" means a sports and entertainment company that has entered into a lease with the
33 Authority pursuant to §15.2-5830.
34 "Corporate income tax revenues" means corporate income tax revenues as estimated by the Tax
35 Commissioner under Article 10 (§ 58.1-400 et seq.) of Chapter 3 of Title 58.1 from the company or any
36 professional sports team or any affiliates thereof based on income generated on the campus, also
37 including revenues generated in connection with the development and construction of the campus. Upon
38 the recommendation of the Authority, and the written approval of the Governor, "corporate income tax
39 revenues" shall also include corporate income tax revenues generated by other business entities new to
40 the Commonwealth that locate on the campus. The Tax Commissioner shall calculate such revenues by
41 multiplying the estimated tax payment of any corporation as required under Article 20 (§ 58.1-500 et
42 seq.) of Chapter 3 of Title 58.1 generating income as described herein by the ratio of their gross
43 revenues from the activities as described herein to gross revenues from all activities in Virginia.
44 "Eligible expenses" means the reasonable expenses necessary for the Authority to carry out
45 responsibilities set forth under this chapter.
46 "Excess funds" means any moneys available to the Authority in the Fund after the accounts set forth
47 in subsection B of §15.2-5833 have been sufficiently funded.
48 "Fund" means the Virginia Sports and Entertainment Authority Financing Fund established in this
49 chapter.
50 "Pass-through entity tax revenues" means income tax revenues as estimated by the Tax Commissioner
51 according to the provisions of Article 9 (§ 58.1-390.1 et seq.) of Chapter 3 of Title 58.1 from any
52 pass-through entity, as defined in § 58.1-390.1, generated from the company or any professional sports
53 team or any affiliates thereof based on income generated on the campus, including revenues generated
54 in connection with the development and construction of the campus.
55 "Person" means the same as that term is defined in § 1-230, except that "person" does not include
56 the Commonwealth or any of its political subdivisions or any agency or instrumentality thereof.
57 "Personal income tax revenues" means personal income tax revenues as estimated by the Tax
58 Commissioner from individuals under Article 2 (§ 58.1-320 et seq.) of Chapter 3 of Title 58.1 based on
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59 salaries, wages, and other income generated through employment or the conduct of a trade or business
60 in on the campus. The Tax Commissioner shall calculate such revenues by multiplying wages and
61 salaries described by the average effective tax rate calculat