House bill would remove tax exemption for stadium bonds

A new bill introduced this month in the House would remove a tax exemption for stadium bonds, potentially affecting the construction of an NFL facility in Las Vegas.

The “No Tax Subsidies for Stadiums Act” was introduced last week by GOP Rep. Steve Russell of Oklahoma. It is similar to a measure he introduced almost a year ago to restrict tax exemptions for stadium bonds.

Russell introduced the measure just days after Sheldon Adelson backed out of a stadium deal for the Oakland Raiders in Las Vegas that would have been financed by $750 million in bonds from a .88 percent increase in the room tax rate. The bill, which has attracted Oregon Democrat Earl Blumenthal’s support, would remove the tax exemption for those bonds and thus potentially reduce how much they would raise.

The NFL owners have yet to approve the Raiders relocation and the team has not found a partner to replace Adelson, who had pledged $650 million. Goldman Sachs, which had pledged to finance the deal, also has dropped out of the Vegas stadium plan as originally structured.