[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1880 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1880

To amend the Internal Revenue Code of 1986 to correct the treatment of 
        tax-exempt financing of professional sports facilities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 14, 1996

 Mr. Moynihan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to correct the treatment of 
        tax-exempt financing of professional sports facilities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Tax-Exempt Arena Debt Issuance 
Act''.

SEC. 2. TREATMENT OF TAX-EXEMPT FINANCING OF PROFESSIONAL SPORTS 
              FACILITIES.

    (a) In General.--Section 141 of the Internal Revenue Code of 1986 
(defining private activity bond and qualified bond) is amended by 
redesignating subsection (e) as subsection (f) and by inserting after 
subsection (d) the following new subsection:
    ``(e) Certain Issues Used for Professional Sports Facilities 
Treated as Private Activity Bonds.--
            ``(1) In general.--For purposes of this title, the term 
        `private activity bond' includes any bond issued as part of an 
        issue if the amount of the proceeds of the issue which are to 
        be used (directly or indirectly) to provide professional sports 
        facilities exceeds the lesser of--
                    ``(A) 5 percent of such proceeds, or
                    ``(B) $5,000,000.
            ``(2) Bond not treated as a qualified bond.--For purposes 
        of this title, any bond described in paragraph (1) shall not be 
        a qualified bond.
            ``(3) Professional sports facilities.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `professional sports 
                facilities' means real property or related improvements 
                used for professional sports exhibitions, games, or 
                training, regardless if the admission of the public or 
                press is allowed or paid.
                    ``(B) Use for professional sports.--Any use of 
                facilities which generates a direct or indirect 
                monetary benefit (other than reimbursement for out-of 
                pocket expenses) for a person who uses such facilities 
                for professional sports exhibitions, games, or training 
                shall be treated as a use described in subparagraph 
                (A).
            ``(4) Anti-abuse regulations.--The Secretary shall 
        prescribe such regulations as may be appropriate to carry out 
        the purposes of this subsection, including such regulations as 
        may be appropriate to prevent avoidance of such purposes 
        through related persons, use of related facilities or multiuse 
        complexes, or otherwise.''
    (b) Effective Date.--The amendments made by this section shall 
apply to bonds issued on or after June 14, 1996.
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