HB 397

Present law requires the commissioner of revenue to deposit promptly to the credit of the state treasurer in state depositories all moneys received through sales and use taxes, and all such moneys must be be earmarked and allocated in a certain way. Pre sent law provides several special allocations. This bill creates a special allocation, requiring that a stadium in Hamilton County must be apportioned and distributed an amount equal to that of state and local sales tax revenue, excluding any portion of local sales taxes that otherwise would be alloc ated for school purposes, if it meets certain parameters, including all of the following:  It is designed to host games of an intercollegiate football team that competes in the NCAA Division I Football Championship Subdivision (FCS).  It is designed to host games of international and high school soccer teams.  It is designed to host local and regional events.  The entity designated to govern the operations of the stadium reimburses the state for costs to reallocate apportionments of the tax revenue under this bill. If the above parameters are met, this bill requires such amount be apportioned and distributed to the entity. The amount is derived from the sale of admissions to all events occurring within the stadium and from all sales of food, drinks, merchandise, a nd authorized goods and products sold from a location on the premises of the stadium in conjunction with an event occurring at the stadium, parking charges, and related services. However, this bill requires amounts apportioned and distributed to the entity be for the exclusive use of the entity to fund capital projects at the stadium, including the payment of debt service for capital projects, and operation expenses associated wi th the stadium. The allocation provided under this bill must continue until the debt service is retired, or July 1, 2055, whichever is sooner. ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 397, AS AMENDED. AMENDMENT #1 makes the following changes:  Requires the special allocation be apportioned and distributed to the entity beginning July 1, 2026.  Requires the portion of state and local sales tax derived from the sale of parking charges and related services, in addition to local sales tax from the sale of admissions to all events, foods, drinks, merchandise, and authorized goods and products, to be allocated to the facility until July 1, 2056, or until the debt service is retired. The allocated sales tax must be from the sale of goods and services on the premises of the stadium or on, or adjacent to, the premises of a related ancillary facility, including a pavilion.  Authorizes a municipality to negotiate and receive annual payments from then entity if a portion of the state and local sales tax revenue to be allocated to the entity was previously subject to allocation to such municipality. Further, the municipality may enter into an agreement with respect to the payments, that are substantially equal to the amount that would otherwise have been allocated to the municipality. However, such agreement must expire on June 30, 2032. The entity must submit to the agreement to the commissioner of revenue in order to receive an allocation of sales and use tax revenue pursuant to this bill.  Changes the effective date of this bill from July 1, 2025, to upon becoming a law. ON APRIL 22, 2026, THE SENATE SUBSTITUTED HOUSE BILL 397 FOR SENATE BILL 211, ADOPTED AMENDMENT #1, AND PASSED HOUSE BILL 397, AS AMENDED. AMENDMENT #1 changes the date after which sales tax revenue must be apportioned to the entity described in the bill for capital improvements to the stadium from July 1, 2027, to January 1, 2027.