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HF 4949

Sports and events reimbursement program established, and reports required.

2025-2026 Regular Session Introduced by Greg Davids and 4 co-sponsors

The bill creates the Sports and Events Reimbursement Program (SERP) that divert incremental event-related tax revenues to fund reimbursements for Minnesota-hosted major events and

Author added Davids
#athletics #recreation #taxation
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Bill Summary · HF 4949

Summary of HF 4949 (2025-2026) – Minnesota

Aim: Establish a Sports and Events Reimbursement Program (SERP) to reimburse certain costs related to hosting eligible events in Minnesota and to designate dedicated revenues to fund the program. The bill also modifies multiple tax revenue distribution provisions to deposit a portion of event-related tax revenues into the SERP account.

1) Purpose and Intent

  • Create the Sports and Events Reimbursement Program (SERP) to attract and host major sports, entertainment, and other high-profile events in Minnesota.
  • Provide state-administered funding to cover eligible expenses associated with hosting events, including preparations, event operations, and facility improvements or construction.
  • Use incremental tax revenues attributable to an event to finance the SERP.
  • Require reporting, due diligence, and governance mechanisms to ensure responsible administration.

2) Key Provisions and Changes

A. Definitions and Coverage

  • Establishes “Account” as the Sports and Events Reimbursement Program Account.
  • Defines “Event” broadly to include a wide range of major sporting and entertainment events (examples listed: Amateur Athletic Union Junior Olympic Games, Big Ten events, Bowl Season, College Football Playoff, CONCACAF Gold Cup, CONMEBOL Copa America, CrossFit Games, Formula 1 US Grand Prix, IIHF World Juniors, ISU Worlds, NBA All-Star, NCAA Final Four, NFL Draft/Super Bowl, NHL All-Star/World Cup of Hockey, World Cup Soccer, X Games, PGA championships, etc., and others designated as Unrivaled Event or Olympic Trials among others).
  • Defines “Local Organizing Committee” and “Site Selection Organization” for attracting and contracting events.

B. SERP Account and Administration

  • Creates SERP account in the state’s special revenue fund.
  • Money credited to the SERP account remains available for expenditure.
  • Prior to state contract determinations, a local organizing committee must apply for funding, including certifications that the event meets eligibility and documentation from a site selection organization.
  • State Auditor/commissioner of revenue may require and review annual audited statements and attendance/economic impact data for the event.

C. Eligibility and Funding Criteria

  • An event is eligible only if (a) a site selection organization chooses a Minnesota site after evaluating non-Minnesota options, and (b) Minnesota is selected either as the sole site or as part of a regional site, and (c) the event occurs no more than once per year.
  • Funding is contingent on an event being selected as above and on entering into an event contract or similar arrangement.
  • Funding may cover:
    • Preparatory costs and event operations
    • Improvements/renovations to facilities
    • New facility construction or other facility-related costs

D. Reporting Requirements

  • Local organizing committees must provide annual audited statements and data on attendance (including nonresidents) and estimated economic impact.
  • Annual audited financial statements must be provided within four months after the period covered.
  • Post-event reporting includes attendance, nonresident attendees, financial information, and other data as requested.

E. Revenue Deposit and Allocation (Tax Provisions)

  • The bill adds explicit deposits of the SERP-relevant revenue shares into the SERP account (Sections 168E.09, 295.75, 295.81, 297A.94, etc.), in addition to existing general fund deposits.
  • Subdivision 4 of 270C.45 describes the calculation and deposit mechanism of incremental tax revenues attributable to an event, with the University of Minnesota performing incremental revenue estimations after an event.
  • Determined incremental revenues may include multiple taxes: sales tax, corporate-like taxes, and related user fees, as specified in Subd. 2 and Subd. 3.
  • In practice, after each event, Minnesota will determine the incremental tax increase attributable to the event and disburse those funds to the local organizing committee within 30 days.

F. Effective Date

  • Several sections indicate that the revenue deposits and program provisions apply to revenues collected after a future effective date (date placeholder in the bill): “Effective for revenues collected for sales and purchases made after …” (the exact date is to be set in the final enacted version).

3) Who Would Be Affected

  • Local Organizing Committees for eligible events seeking to host or expand events in Minnesota.
  • Site Selection Organizations that evaluate and select Minnesota event sites.
  • The University of Minnesota, which is named to perform incremental revenue determinations.
  • Minnesota Department of Revenue, which would administer the SERP deposits, oversee reporting, and manage rulemaking.
  • Taxpayers in Minnesota, as certain event-related incremental tax revenues would be redirected to the SERP account rather than solely funding the general fund.
  • Businesses and municipalities hosting events may benefit from state-backed funding for site readiness, facilities, and related improvements.

4) Procedural and Timeline Aspects

  • Applications: Local organizing committees must apply before any determination under standard contract processes (270C.45, subd. 2).
  • Due Diligence: The Department of Revenue may contract with professionals for due diligence.
  • Reporting: Annual audited statements due within four months after the period reported; post-event reporting to the commissioner.
  • Revenue Determination Timeline: After each event, the local committee requests an incremental increase determination; the University must begin estimating within 10 days after the event’s conclusion, for a rolling one-year period preceding the event start.
  • Disbursement: Within 30 days after the incremental increase determination, the SERP funds are disbursed to the local organizing committee.
  • Effective Date: Provisions hinge on revenues collected after a future date; the exact effective date remains to be specified in final language.

Notes:
- The bill creates a dedicated funding mechanism to support Minnesota-hosted events by diverting a portion of selected tax revenues to the SERP account, subject to performance-based eligibility and reporting requirements.
- The structure emphasizes due diligence, measurable economic impact, and oversight to ensure funds support event readiness and lasting infrastructure.

Compiled from official sources — confirm details with the bill’s official record.

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