Reynolds Warns NBA Bill Could Drain State Coffers

Legislation providing tax incentives to NBA basketball teams may contain major flaws that could ultimately drain hundreds of millions of taxpayer dollars that would otherwise go to schools, roads, and health care programs, state Rep. Mike Reynolds warned today.

"We've already eliminated one major loophole that would have given millions of taxpayer dollars to out-of-state teams that simply visit Oklahoma, but this bill is still fatally flawed," said Reynolds, R-Oklahoma City. "Voters need to contact their legislators to voice opposition to this multi-million-dollar boondoggle."

Senate Bill 1819 would expand Oklahoma's Quality Jobs Act, originally designed to lure manufacturers to the state, to include NBA teams. The bill would permit an NBA team to receive rebates on the taxable payroll paid to players.

The bill is expected to receive a final vote in the Oklahoma House of Representatives today.

Originally, the legislation would have allowed any team that spends more than $2.5 million on payroll in Oklahoma to receive tax rebates on the payroll - which Reynolds said could easily happen in future seasons given the high salaries paid to some players.

He noted that each NBA plays 82 games in the regular season, 41 at home and 41 away. Each team faces opponents in its own division four times a year.

The Dallas Mavericks, which have a payroll of more than $105.2 million, would spend more than $2.5 million on player salaries in just two away games at Oklahoma City and would have qualified for state tax incentives under the bill's original language, Reynolds noted.

More teams are likely to reach that threshold in future years due to the rapid escalation of player salaries.

Reynolds authored an amendment to close that loophole that was originally rejected in the House, but later adopted in the state Senate.

"This bill is so poorly designed that it would have funneled millions of dollars to other states every time Shaquille O'Neal or Kobe Bryant set foot in Oklahoma," Reynolds said. "Oklahomans would have been sending their taxes to support nearly 30 teams all across the country and receiving no benefit at home."