Sales tax exemption sought on tickets for high school league activities

As part of the 2006 deal for receiving public money to fund the new Minnesota Twins ballpark, a provision was enacted that provided a sales tax exemption on tickets to Minnesota State High School League tournaments and events. The money went to a non-profit foundation that, in turn, made grants for scholarships to help offset high school extra-curricular participation fees.

The five-year exemption was extended before ending June 30, 2015. During that time, approximately $850,000 per year was allocated “reducing the cost of participation fees as well as providing training for coaches … late activity buses and many other activities,” Rep. Dean Urdahl (R-Grove City) told the House Taxes Committee Tuesday.

He sponsors HF301, which would revive the ticket and admission sales tax exemption and make it permanent, beginning with sales and purchases after June 30, 2017. The bill was held over for possible omnibus bill inclusion. Its companion, SF113, is sponsored by Sen. Carla Nelson (R-Rochester) and has been referred to the Senate Taxes Committee.

WATCH Full video of Tuesday's meeting of the House Taxes Committee on YouTube

Urdahl’s son, Troy, is the athletics and activities director for the St. Anthony-New Brighton School District and testified before the committee. “We understand that money can be a barrier to participation,” he said. “And we work hard to ensure that every student who wants to participate is able to do so.”

He noted that the grant program has enabled participating districts to significantly lower the participation costs for needy students.

Rep. Jim Davnie (DFL-Mpls) noted “an opportunity gap,” in the state. He said that lower income kids many times can’t participate in extra-curricular activities because of the cost. “We need kids to be engaged and giving them the opportunity to play sports gives them that,” he said. “It pays.”

According to a Department of Revenue analysis of the bill, it would translate to a roughly $870,000 annual loss to the state’s General Fund.