Taxpayer Watchdog Group Urges Missouri Voters to Reject Referendum for New Sales Tax to Fund Stadiums

For Immediate Release

Contact: Kara Zupkus, (224)-456-0257

WASHINGTON, D.C. – The Taxpayers Protection Alliance (TPA) urges all Jackson County, Missouri, voters to vote against a referendum that would add a 40-year sales tax to help fund a new Kansas City Royals stadium and renovations to Arrowhead Stadium.

The new tax would be a sales tax of roughly .38 percent for 40 years. Jackson County taxpayers would each incur an estimated $115 annually in taxes for the construction and upkeep of two private sports franchises stadiums. Based on campaign finance information from the Missouri Ethics Commission, the Kansas City Royals and Kansas City Chiefs both contributed $1 million each to The Committee to Keep the Chiefs and Royals in Jackson County. In contrast, the stadiums would receive $1.5 billion in taxpayer subsidies. Meanwhile, Chiefs President Mark Donovan recently told a news outlet that the Chiefs would have to consider moving out of Kansas City if the public vote for the sales tax fails. 

TPA Executive Director Patrick Hedger offered the following comments about the Chiefs’ intimidation tactics and the upcoming referendum:

“Here they go again: another professional sports franchise is trying to take taxpayers for a ride. Taxpayer-funded stadiums are never a good investment, and taxpayers always end up picking up the tab when it comes to cost overruns and other funding shortfalls. Tax revenue should be allotted to basic public services that everyone can use, not corporate welfare for billionaires.

“Economists, academics, and activists across the political spectrum agree that publicly subsidized stadiums and arenas do not have a net-positive economic effect on their communities. Offering taxpayer money for stadium funding and other incentives is corporate welfare. Jackson County is effectively transferring wealth from the taxpayers to the professional sports teams and their owners.

“Stadiums subsidies are a scam. They never have a positive return on investment. Cost overruns are never accounted for and pose an additional risk since these projects rarely are completed within their estimated budget and timeline.

“Jackson County taxpayers should reject this sales tax referendum. Billionaire sports teams and their owners should explore other options to finance their stadiums and keep their hands out of hardworking taxpayer’s pockets.”

###

Taxpayers Protection Alliance (TPA) is a rapid response non-profit, non-partisan organization dedicated to educating the public through the research, analysis, and dissemination of information on the government’s effects on the economy.