Hockey wants tax bill help

The Lightning tax bill is almost as much as the rest of the U.S. teams combined, the NHL's commissioner says.

By BILL VARIAN, Times Staff Writer
© St. Petersburg Times
published May 7, 2002

TAMPA -- Of Tampa Bay's three major pro sports franchises, only the Lightning hockey team contributed a significant portion of the costs to build its arena.

The Lightning also is the only team required to pay its full property tax bill, and team officials say that's getting tough after losing $40-million over the past three years.

National Hockey League commissioner Gary Bettman visited political and business leaders in Tampa on Monday to plead for relief. In addition to the property tax issue, he was hoping to persuade Hillsborough commissioners to hold off on a planned hike to a government surcharge on Ice Palace events.

"We're happy to be here and we're happy to be in this market," Bettman said. "But is the goal to make it as difficult as possible?"

Taking a break from the NHL playoffs, Bettman said he also is seeking greater corporate involvement with the team, from advertising to season ticket purchases. His visit coincided with the start of a Lightning summer sales campaign with sharp discounts on season-ticket prices compared to last year.

Escorted by Tampa Mayor Dick Greco, Bettman said he was not issuing an ultimatum.

"I think they're basically just letting everyone know that they could use some help," Greco said.

Bettman's pitch offered few specifics on how much tax relief the team and league are seeking.

"It was very cordial," said Warren Weathers, chief deputy for Property Appraiser Rob Turner. "We don't make a commission on this thing. We just want to get the right number and we certainly will look at every number."

The Lightning is currently challenging its 2001 tax bill of nearly $3.06-million, which placed the assessed value of the Ice Palace at $120-million. Bettman said the bill nearly equals the combined property taxes paid by all the other pro hockey teams in the United States.

His numbers come from 1998, when 13 teams paid no property or capital taxes and the other seven teams that existed then paid a combined $4-million, said Bill Daly, executive vice president and chief legal officer for the NHL.

But decreasing the Ice Palace tax bill, or eliminating it all together, will likely be a tough sell, particularly in an election year. Six of seven Hillsborough County Commission seats are up for election this year.

More importantly, the Florida Supreme Court ruled last year that sports arenas owned by cities but used by private teams must pay property taxes.

Palace Sports and Entertainment bought the Lightning three years ago. It also books and reaps the proceeds of other events at the Ice Palace. The Tampa Sports Authority owns the arena and leases it to Palace Sports.

The Ice Palace was built about five years ago, in part with $84-million from the Lightning's previous owners. Palace Sports has since spent another $16-million on arena upgrades, the company estimates.

Local government helps pay a portion of the construction costs through a 75-cent ticket surcharge for Ice Palace events. But the surcharge hasn't kept up with the debt payments. Hillsborough commissioners are considering whether to increase the surcharge to as much as $3.40 a ticket by October.

Lightning officials say the surcharge plus a 7 percent sales tax on tickets could chase away groups that stage other events at the Ice Palace.

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