Arena financing bill passed

Senators passed a bill Feb. 5 that changes the way turnback taxes are distributed to cities that build qualifying sports arena facilities.

Under current state law, 70 percent of state sales taxes generated by new and existing retailers near an arena are turned back to the city to help pay for the new facility. Thirty percent is directed to the Civic and Community Center Financing Fund, which provides development grants to smaller communities across the state.

Under LB285, introduced by Sen. Merv Riepe of Ralston, any funds in excess of $1 million at the end of each year will be distributed proportionally to the cities that generated the turnback revenue to help pay for eligible sports arenas.

Senators voted 41-3 to pass the bill.