Bill would force vote on Nebraska sports facilities seeking sales tax incentives

A bill proposed by Sen. Teresa Ibach would put a clock on approvals for sports complexes seeking tax incentives from the state.

LB1116 requires the Sports Arena Facility Financing Assistance Act Board to make a determination on a project within 30 days of holding a public hearing. If the board fails to make a determination in that 30-day period, then the project would be automatically approved.

The bill is borne out of frustration at the lack of approvals under the act. Over the past 14 months, the board has failed to vote on nine different projects, ranging from large sports complexes in Lincoln and Omaha to smaller recreation facilities in Valentine and West Point.

The act allows sports facilities to use up to 70% of new state sales taxes generated within 600 yards of them to help pay off bonds used in construction. In smaller communities, the facility can use 25% of all state sales taxes for up to five years.

Gov. Jim Pillen’s office said last year that he will not vote on any of the projects until at least June of this year, largely because he is trying to eliminate sales tax loopholes to provide more property tax relief. That presents a big problem because currently, his vote holds veto power on the five-member board.

Ibach’s bill also would remove the requirement that the governor vote in favor of the project.

But she said it is not aimed at Pillen.

“LB1116 is not about any one governor or any one administration,” Ibach said. “This bill focuses on structure. It ensures our statutes provide clear, consistent decision-making processes that provide certainty and serves the state well over the long term.”

No one testified against the bill at Wednesday’s hearing, and those who testified in favor of it said the projects seeking the incentives bring in more money than they cost the state.

“I think there is a narrative that we don't think is accurate, that these programs cost the state money,” said Lynn Rex, executive director of the League of Nebraska Municipalities. “We don't think it costs you money. We think this gives you money.”

Anthony Carrow, president of Nebraska Elite Volleyball, which wants to build a new $63 million volleyball complex in Omaha, said a tournament he hosts in Omaha had to turn away over 100 teams this year because it couldn’t find enough courts to accommodate them.

“The lost demand represents approximately $3 million in lost revenue for the state through hotels, restaurants, and local tourism from this year alone,” Carrow said. He noted there will be a similar loss next year due to the lack of a vote on incentives for his project delaying its construction.

Ibach said the uncertainty the projects face from the delayed votes undermines local planning, increases costs and discourages investment.

"By guaranteeing a clear vision within 30 days, LB1116 ensures Nebraska communities are not left in limbo and can move forward with confidence," she said.

More from the Unicameral:

Supporters testify for bill requiring warrant for immigration officers at schools

Fentanyl penalties slowed by cost concerns, free school meals proposal heard

Suspending young students sparks debate, data center proposals heard

Nebraska Legislature reprimands senator who removed pictures from walls

Committee hears sales-tax-for-property-tax swap, first responder protections advance

Senators debate human relations training, dynamic pricing for rideshares

Legislative committee hears proposals to regulate AI chatbots

Harassment allegation against senator derails antisemitism bill in Nebraska Legislature

Legislature passes minimum wage decrease for teen workers

Citing political violence, Nebraska senator wants secure parking garage access currently used by state employees