BATON ROUGE -- Legislation that would give the NBA's Hornets a $36.5 million tax rebate over a 10-year period as part of a new deal to keep them in New Orleans cleared a Senate committee Monday after being criticized by opponents as a raid on state funds when dollars are scarce.
The Committee on Revenue and Fiscal Affairs voted 7-2 to keep alive House Bill 1072 by Rep. Cameron Henry, R-Jefferson. The bill now heads to the Senate floor for debate.
"I am thinking we ought to change their names from Hornets to Bandits," complained Sen. Robert Kostelka, R-Monroe.
Henry said that the team is now getting paid a subsidy from the state for "empty seats" that totals almost $30 million for the next three years as well as the tax credits under the Quality Jobs program.
Henry said a newly negotiated contract bewteen the state and the NBA would end the subsidy for attendance levels and extend the job credits program througjh the Hornets' 2024 season.
Henry said that granting the tax rebate for the next decade is not that much more than what is paid now.
He said the state has signed an agreement to keep the Hornets in the Arena through 2024 with a five-year renewal option. The team is limited in the bill to no more than a 10-year tax rebate based on the jobs they create and salaries and benefits paid.
The Joint Legislative Committee on the Budget will review the jobs and tax breaks after the first five years to determine if the franchise still qualifies for the rebates.
"This is a piece of the puzzle to keep them here," Henry said.
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