Missouri Code of State Regulations › Title 4 - Department of Economic Development › Division 85 - Division of Business and Community › Chapter 9 - Amateur Sporting Tax Credit Program › Section 4 CSR 85-9.011 - Definitions

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: 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:
1. Certified sponsors;
2. Endorsing counties;
3. Endorsing municipalities;
4. Local organizing committees; or
5. 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; and
4. 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-
1.
				Construction;
2.
				Rehabilitation;
3. A payment to a
				related party;
4. A direct payment
				to a for-profit site selection organization; or
5. 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; or
2. 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; or
4. 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.