A multi-year legal battle has come to an end for the Kansas City Chiefs.
The Chiefs won’t have to pay $1 million in back taxes to the state of Missouri, the state Supreme Court ruled on Tuesday. The court reversed the decision of a state panel from back in January that claimed the Chiefs owed back taxes to the state.
In 2014, an audit from the Missouri Department of Revenue flagged a number of purchases made by the Chiefs during Arrowhead Stadium’s largest renovation, completed in 2010. Taxpayers paid for the majority of the $375 million renovation, which included a new press box, new seating arrangements and new concourses.
The Chiefs kicked in over $100 million of their own funds for the project. The Department of Revenue claimed the team avoided paying nearly $1 million in state sales taxes on $23 million in purchases. The Chiefs, however, believed they were exempt from sales taxes for a number of reasons.
First, their contributions were paid into a common fund controlled by the Jackson County Sports Complex Authority. Everything purchased in the renovation belonged to Jackson County and not the team. Second, the Missouri Finance Development Board had granted a tax credit specifically for that fund, exempting both the team and the county authority from specific state taxes.
Ultimately, the Supreme Court unanimously decided in favor of the Chiefs and the Jackson County Sports Complex Authority.
For more information visit: chiefswire.usatoday.comBy Charles Goldman
June 3, 2020