WASHINGTON — Ennis Rep. Joe Barton is rallying to prevent the GOP's sweeping tax revamp from costing the city of Arlington millions of dollars on its voter-approved plans to finance the new Texas Rangers ballpark.
The Republican, whose district includes the stadium, is trying to exempt the new Globe Life Field from a provision in the House GOP bill that would prevent local governments from using tax-exempt municipal bonds to fund the building or renovation of professional sports stadiums.
Arlington voters last year approved a $500 million bond package to help fund the stadium. Ground broke on the project in late September. But since the city isn't expected to sell its bond package until next spring, it would be snagged by the new rules.
So Barton, a longtime Rangers fan, is going to extra innings to protect Arlington from a financial hit that he said could total some $200 million.
"It's basic fairness," he said late Tuesday at a House Rules Committee meeting. "Since the voters approved this bond package, it makes sense to grandfather this project."
The House GOP's sprawling tax revamp, set for a vote as early as Thursday, has stirred the sports world with its focus on stadium financing.
The government-funded perk has long been a sore spot for policymakers, given that tax dollars end up boosting sports teams already awash in riches. The Brookings Institution, for instance, found that such financing cost taxpayers at least $3.2 billion from 2000 to 2014.
And President Donald Trump, battling the NFL over national anthem protests, has threatened to take away the "massive tax breaks" enjoyed by pro sports teams.
Even Barton said there is "nothing wrong" with the House GOP's overall approach of removing the tax break. He said it's a "good reform," adding that "I totally support it." Rather, he said, the problem is the timing that the bill proposes for the new restrictions to go into effect.
That deadline would cover bonds issued after Nov. 2, meaning Arlington's deal would strike out.
The loss of tax-exempt status on those bonds would have a real financial impact. Investors would have to pay tax on the interest from those bonds, forcing the city to offer higher interest rates to stay competitive. The net result would cost the city more money.
"Changing the tax policy in the middle of the process is not good public policy, particularly when the stadium is already being built and the change would add significant cost to the project," said Jay Warren, an Arlington city spokesman.
Warren said the city is "pleased to see that a change to the House tax plan is under consideration." A spokesman for the Rangers, whose portion of the stadium financing would not be affected by the tax legislation, added that the team is "certainly working with the city on this issue."
The solution could come through Barton's amendment to change the stadium provision by adding a narrow exemption for the new Rangers stadium. He said the tweak would cost the Treasury around $84 million, according to "the seat of the pants estimate by the experts in Arlington."
"So there is a cost," he said. "But in a package that's going to cost in the neighborhood of $1.5 [trillion] to $2 trillion, I don't think that's excessive."
It's unclear if Barton will succeed.
House Republicans aren't expected to make any amendments to their bill before it hits the floor as early as Thursday. That means any differences would likely have to be worked out in a conference committee with the Senate, whose Republicans so far are leaving stadium financing alone.
Barton said he had the support of Rep. Kevin Brady, R-The Woodlands, who chairs the House Ways and Means Committee. A Barton spokesman added that the congressman is confident the carve-out gets included. And Brady, while supportive, was noncommittal in an interview with Roll Call.
"It's a very reasonable request for me to make sure the transition is accurate for that provision," he told Roll Call. "I know Congressman Barton and I have talked about this. ... We will continue to work together in conference, as I am with a number of members' provisions."
