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Tax break on sporting events could give Atlanta an edge to host World Cup matches
Lawmakers pushed for a tax break on tickets for non-recurring sporting events. It strengthens Mercedes-Benz Stadium's bid to host the 2026 FIFA World Cup.
ATLANTA - A Georgia lawmaker hopes to add the FIFA World Cup to the list of major sporting events where the state exempts tickets from sales tax.
"I look at it as an investment," state Rep. Marcus Wiedower, R-Watkinsville, told a House subcommittee Tuesday afternoon.
Lawmakers first approved the legislation back in 2016 ahead of Atlanta hosting the 2018 College Football National Championship, the 2019 Super Bowl and the NCAA Final Four in 2020, though it was canceled because of the coronavirus pandemic.
"This bill allows us to kind of be at the table to be considered for these types of events," explained Rep. Wiedower.
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FIFA announced that the United States, Mexico and Canada have won the bid to host the 2026 World Cup, which features 48 teams and takes place over 35 days.
Atlanta is one of more than a dozen cities in the running to host one or more events and could be the site of the International Broadcast Center, which would host media from all over the world. The FIFA delegation visited Mercedes-Benz Stadium in September as part of the selection process.
The original law will sunset at the end of this year. If approved, Rep. Wiedower's bill would extend the tax break through 2031.
"The Metro Atlanta Chamber and Atlanta Sports Council support HB 1034 and extending the sunset on the sales tax exemption for major sporting events. Extending the sunset ensures Georgia’s competitiveness as a host for future sporting events," said Marshall Guest, senior vice president of public policy and business climate for the Metro Atlanta Chamber.
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During the hearing, representatives from the Chamber revealed they are already looking at bidding on future events including the 2025 College Football National Championship, the 2028 Super Bowl and the 2029 Final Four.
Rep. Wiedower said the maximum cost to the state in lost tax revenue would be about $12 million if Atlanta hosted all the World Cup events, which will not be the case. He said the return on investment would be in hundreds of millions of dollars.
"There's a lot of things that we put out there that we have to invest in and hope that those things turn out well. This is one of those where we're not having to risk any tax dollars for the state. We get to put it out there as an incentive for them to select us," said Rep. Wiedower. "The revenue that would be generated will just do great things for everybody in the state."
The committee did not vote on the measure, but will hold another hearing.
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