from the Institute for Policy Innovation


Number 2.36:

Take Me Out ‘of’ the Ballgame

09/06/2005

Share/Save/Bookmark

Cities around the country are ponying up taxpayer funds for new stadiums to get, or keep, professional sports teams.

But Arlington, Texas, is blazing a new path.

The Dallas Cowboys decided several years ago it wanted a new stadium. Texas Stadium seemed fine to many of us, but new stadiums provide lots of new revenue opportunities. The Cowboys management negotiated with the City of Dallas for several months, but the city — or at least some city officials — decided the team wanted too much and passed on the deal.

Ready on the sidelines and eager to play was Arlington, located about halfway between Dallas and Fort Worth. The city already has Ameriquest Field, formerly The Ballpark in Arlington, home of the Texas Rangers.

Arlington and the Cowboys struck a deal and the voters approved. So what’s new about a city willing to pay to play? Well, generally in these agreements the city will pay part of the costs and the team pays the rest.

In this case, Arlington increased property, car rental and hotel taxes to pay for the city’s share. But according to a story in the Dallas Morning News, it also wants to levy a 10 percent tax on tickets and a $3 parking tax.

The twist here is that those user taxes will be applied toward the Cowboy’s portion of the bill.

So, the residents of Arlington, along with those renting cars and staying at hotels, will pay for Arlington’s share. And those who attend the games will pay the Cowboy’s portion.

The Arlington City Council certainly has the right to tax its constituents as much as it likes — and the voters can “throw the bums out” come the next elections if they choose. But should it also tax all of those who want to go see a game — to pay the Cowboys’ bill?

How do those people, who are guilty of nothing more than wanting to go to a football game, reflect their dissatisfaction (or satisfaction) at the polls?

Share/Save/Bookmark

All Past TaxBytes Commentaries



(c) Institute for Policy Innovation

TaxBytes is published by the IPI Center for Tax Analysis of the Institute for Policy Innovation. TaxBytes is distributed via email, as well as through the website at http://www.ipi.org
Questions, comments, and subscription requests should be directed to ipi@ipi.org
Requests to be removed from this email list will be attended to promptly.
TaxBytes may be reproduced or quoted with appropriate attribution, which should include 1) the name TaxBytes, and one of either 2) the name "Institute for Policy Innovation", or 3) the acronym "IPI".
Media inquiries should be directed to ipi@ipi.org

IPI Home