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PILOTs and Public Policy: Steering through the Economic Ramifications

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Author Info
Brad R. Humphreys () (Department of Economics, University of Alberta)
Victor Matheson () (Department of Economics, College of the Holy Cross)

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Abstract

A recent IRS ruling has allowed the new Yankees Stadium construction project to be financed by a tax exempt bond offering backed by payments in lieu of taxes (PILOTS). This decision appears to contradict the spirit of the Tax Reform Act of 1986. From an economic standpoint, the question is whether it is desirable to significantly expand the number of projects eligible for tax subsidies in exchange for a more direct connection between those receiving benefits from the projects and those paying the taxes, or should the state and municipal bond tax exemption narrowly extend only to true public works even if this means taxing the populace more broadly when certain segments of the population are more apt to benefit from certain projects.

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File URL: http://www.holycross.edu/departments/economics/RePEc/Matheson-Humphreys_PILOTS.pdf
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Publisher Info
Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0817.

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Length: 17 pages
Date of creation: Dec 2008
Date of revision:
Publication status: Published in Villanova Sports and Entertainment Law Journal
Handle: RePEc:hcx:wpaper:0817

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Phone: (508)793-3362
Fax: (508) 793-3708
Web page: http://www.holycross.edu/departments/economics/website/
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Related research
Keywords: sports; stadiums; tax subsidies; economic impact;

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Find related papers by JEL classification:
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R53 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans and Credits

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rodney Fort, 2004. "Inelastic sports pricing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 87-94. [Downloadable!]
  2. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Working Papers 0818, International Association of Sports Economists. [Downloadable!]
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