Proposed tax on preferred sports seating would fund shelters, housing

What do private suites at sports events and shelters for women and girls fleeing sex trafficking have in common? One could end up funding the other.

That’s the goal of HF4738, a bill sponsored by Rep. Heather Keeler (DFL-Moorhead) that would repeal the state’s sales tax exemptions on preferred seating and amenities at athletic events.

While the windfall such a change would produce would go to the state’s General Fund, the bill would also appropriate to the Department of Human Services $8.8 million in Fiscal Year 2027 and $8.9 million in Fiscal Year 2028 and beyond for grants to safe harbor shelter and housing grants.

On Wednesday, the House Taxes Committee laid the bill over for omnibus bill consideration.

“It’s my job as a legislator to get creative on how we fund the things that really matter,” Keeler said. “We have children being trafficked at as young as 10, 11 and 12. And that’s not OK. We have got to get serious about how we’re going to fund this.”

The items that would lose their sales tax exemption under the bill include:

• a license to use a private suite, private skybox, or private box seat;
• season tickets to collegiate events in preferred seating areas; and
• amenities included in the sale of the privilege of admission to athletic events.

The Revenue Department estimates the change would increase the General Fund by $7.6 million in Fiscal Year 2027 and $8.4 million in Fiscal Year 2028.

Committee Co-Chair Rep. Greg Davids (R-Preston) told supporters that they shouldn’t get their hopes up.

“The funding is coming from a very important bill that I took many years to get passed,” Davids said. “What the bill does is provide scholarship money for women’s sports. … I’m not saying that this isn’t a very worthy program. I am saying you have the wrong funding source, because this is not going to happen.”

About 85% of the revenue generated from the bill would come from the suites repeal, while 10% would be from collegiate seats (which fund scholarships) and 5% from amenities.

Rep. Andy Smith (DFL-Rochester) suggested the bill could be amended to focus more on the suite sales.

Alec Williams, a researcher for advocacy organization We Make Minnesota, supports the bill.

“Suites are a high-end discretionary purchase,” he said. “The average cost of a suite to watch the Wolves or Wild is $4,000 to $8,000 per game. Twins games are similar, but can reach $41,000 per game for the largest suites. For Vikings games, suite costs range from $25,000 to $75,000 per game.”

While Rep. Kristin Robbins (R-Maple Grove) suggested that closing the housing stabilization fund and channeling that money toward the victims of sex trafficking would be a better idea, Rep. Liish Kozlowski (DFL-Duluth) emphasized the seriousness of the problem and the urgency of funding remedies for it in light of federal cuts.

“People purchasing stadium suites get $8 million out of the state every year,” said the committee’s co-chair, Rep. Aisha Gomez (DFL-Mpls). “Every decision we make is about tradeoffs. We show who we’re here to fight for in those decisions.”