KANSAS CITY, Mo. — The Kansas City Chiefs are heading to court Wednesday. The organization is being challenged by the State of Missouri and will have to appear in the state Supreme Court.
The issue at hand boils down to whether or not the Chiefs should have to pay taxes on $23 million in purchases made to upgrade Arrowhead Stadium from 2008 to 2010.Advertisement
According to a state panel ruling earlier this year, the Chiefs owe around $1 million in back taxes on those purchases because they improperly claimed tax-exempt status on them.
The Chiefs appealed that ruling, which is how the case landed in state Supreme Court.
The renovations in question happened a decade ago and cost $375 million, $250 million of which came from a 2006 voter-approved three-eighth percent sales tax. The rest was furnished by the Chiefs.
The Chiefs organization contends that most of the $125 million the team kicked in should be exempt from sales tax because the money went into a fund controlled by the Jackson County Sports Complex Authority.
While the amount currently owed by the organization is a small drop in the bucket to a franchise estimated to be worth more than a billion dollars, attorneys have previously said the legal challenge is based mostly on principle.