To create a tax break for the Miami Dolphins, Florida might eliminate a tax break for Miami’s foreign banks.
On Thursday, the state Senate is scheduled to vote on a bill allowing Florida to pay out $15 million a year in sales-tax rebates for stadium renovations, including a possible $3 million yearly subsidy for the Dolphins’ Sun Life Stadium. To pay for the new stadium dollars, the legislation would end a tax deduction reserved for international banking operations, which in Florida are clustered in the Miami area.
The deduction dates back to the 1980s and costs Florida about $14 million a year in lost tax revenue, according to a Senate analysis. The targeted deduction involves arcane rules of global finance and banking regulation, making the issue an easy one to miss amid the heated argument over whether to invest public dollars in professional sports facilities.