Mo. Code Regs. tit. 4 § 85-9.011
Current through Register Vol. 49, No. 21, November 1, 2024.
Section 4 CSR 85-9.011 - DefinitionsPURPOSE: The purpose of this rule is to explain the meaning of terms used in connection with the Amateur Sporting Tax Credit Program.
(1) As used in 4 CSR 85-9.011 through 4 CSR 85-9.051, the following words shall mean: (A) Account(s) receivable: A legally enforceable claim for payment against an applicant, payable within sixty (60) days following the sporting event;(B) Active member: An organization located in the state of Missouri, which solicits and services sports events, sports organizations, and other types of sports-related activities in that community;(C) Admission ticket: A ticket that is purchased for face value;(D) Amateur athlete: An individual who participates in a sporting event as a competitor, and is not compensated for participating in that sporting event; or an Olympian. Examples include: Olympic athletes and collegiate athletes participating under NCAA sponsored events;(E) Amateur organization: An interstate organization, dedicated to promoting, organizing, or administering sporting games, or competitions among amateur athletes, athletes competing in Olympic pre-qualifying competitions, or Olympians;(F) Applicant or applicants: One (1) or more of the following acting individually or collectively: 3. Endorsing municipalities;4. Local organizing committees; or5. Related parties to another applicant;(G) Certified sponsor or certified sponsors: One (1) or more nonprofit organizations which are active members of the National Association of Sports Commissions;(H) Competitive bidding process: The selection system used by a site selection organization to choose the location of a sporting event. For a bidding process to be competitive, the competition must include at least one (1) site located outside of Missouri, and the sporting event cannot be one (1) whose history would typically place it in Missouri;
(I) Construction: Any activity directly or indirectly related to the building of new improvements on real property;(J) DED: The Missouri Department of Economic Development;(K) Department: The Missouri Department of Economic Development;(L) De Minimis ticket price: A ticket sold for less than five dollars ($5);(M) Director: The director of the Department of Revenue;(N) DOR: The Department of Revenue;(O) Eligible costs: All costs, except ineligible costs, that are:1. Necessary for conducting a sporting event;2. Related to the preparations necessary for conducting a sporting event;3. The pledged obligations to a site selection organization as evidenced by a support contract for a sporting event; and4. Costs that are associated with retrofitting a facility if necessary to accommodate the specific approved sporting event;(P) End of a sporting event: A sporting event shall be deemed to end upon the conclusion of the sporting event; or upon the last sporting event if there are multiple sporting events being held over several days;(Q) Endorsing county: An endorsing municipality that is also a county;(R) Endorsing municipality or municipalities: Any city, town, incorporated village, or county that contains a site selected by a site selection organization for one (1) or more sporting events;(S) Event notification period: A period starting no more than sixty (60) days prior to the start of a sporting event and ending no less than thirty (30) days prior to the start of a sporting event. If the sporting event is a series of sporting events covered under a single support contract, then the date of the first sporting event shall serve as the start of all the sporting events under that support contract;(T) Face value: The sales price for a ticket that is sold at the amount printed on the face of the ticket (or disclosed in a comparable fashion in the case of an online purchase), provided that the face value is not for a de minimis ticket price, and the ticket is sold in the primary market;(U) Ineligible expense: Any expense related to-3. A payment to a related party;4. A direct payment to a for-profit site selection organization; or5. Any accrued cost, except that accounts receivable that are paid and submitted to the DED in the sixty (60) days following the submission of the Certification of Costs shall be treated as eligible;(V) Invoice: A descriptive list of goods and services provided, listing the sum due to be paid;(W) Joinder agreements: An agreement entered into by one (1) or more applicants, acting individually or collectively, and a site selection organization setting out representations and assurances by each applicant in connection with the selection of a site in Missouri for the location of a sporting event;(X) Joinder undertaking: An agreement entered into by one (1) or more applicants, acting individually or collectively, and a site selection organization that each applicant will execute a joinder agreement in the event that the site selection organization selects a site in Missouri for a sporting event;(Y) Local organizing committee: A nonprofit corporation or its successor in interest that-1. Has been authorized by one (1) or more certified sponsors, endorsing municipalities, or endorsing counties, acting individually or collectively, to pursue an application and bid on its or the applicant's behalf to a site selection organization regarding a bid to host one (1) or more sporting events; or2. With the authorization of one (1) or more certified sponsors, endorsing municipalities, or endorsing counties, acting individually or collectively, executes an agreement with a site selection organization regarding a bid to host one (1) or more sporting events;(Z) Major regional, national, and international sports organizations: An interstate organization, dedicated to promoting, organizing, or administering sporting games, or competitions among amateur athletes;(AA) Necessary for conducting or necessary for the conduct of: Costs or preparations shall be deemed necessary, only if the sporting event could not occur without the cost in question;(BB) Pledged obligation: All reasonable expense that must be undertaken by an applicant, pursuant to the support contract, as a condition of hosting the sporting event;(CC) Proof of payment: Proof of payment must be indicated with a document showing that costs were incurred by the applicant, and that funds were transferred to the payee. Proof of payment documentation may include, but is not limited to, the following: 1. A bank or credit card statement showing the transfer of funds to the payee;2. A canceled check from a bank;3. A title company statement showing the transfer of funds from the title company to the payee. Documentation must also be provided showing the transfer of funds from the applicant to the title company; or4. Other documentation acceptable to the department;(DD) Rehabilitation: The repair, renovation, restoration, or reconstruction of a building.(EE) Related party: Any party that would be deemed a related party under IRC section 267(b) and its associated regulations;(FF) Retrofitting: The costs (hard and soft) related to modifying the facility that is directly necessary and required to facilitate the specific sporting event. Retrofit costs are designated to be project specific and may be temporary or permanent in nature;(GG) Site selection organization: The National Collegiate Athletic Association (NCAA); an NCAA member conference, university, or institution; the National Association of Intercollegiate Athletics (NAIA); the United States Olympic Committee (USOC); a national governing body (NGB) or international federation of a sport recognized by the USOC; the United States Golf Association (USGA); the United States Tennis Association (USTA); the Amateur Softball Association of America (ASA); other major regional, national, and international sports associations, and amateur organizations that promote, organize, or administer sporting games, or competitions; or other major regional national, and international organizations that promote or organize sporting events;(HH) Sources and uses: A document prepared by the applicant showing the available funds that will be used to conduct the sporting event, along with all projected expenses associated with the sporting event;(II) Sporting event: An amateur or Olympic sporting event that is competitively bid (at least one (1) of which was a bid for a location outside of Missouri) and is awarded by a site selection organization. A sporting event may include several sporting events provided those sporting events are all covered under a single support contract;(JJ) Support contract: An event award notification, joinder undertaking, joinder agreement, or contract executed by an applicant and a site selection organization as submitted with the project proposal. All pledged obligations must be specifically listed within the support contract itself. If the support contract incorporates additional documents by reference, those additional documents must be submitted as part of the support contract in order to be considered by the DED;(KK) Tax credit: A credit issued by the Department of Economic Development against the tax otherwise due under Chapters 143 or 148, RSMo, excluding withholding tax imposed under sections 143.191 to 143.265, RSMo. AUTHORITY: section 67.3000, RSMo Supp. 2013. Original rule filed Feb. 7, 2014, effective July 31, 2014.