KANSAS CITY, Mo. (AP) – A state panel has ruled that the Chiefs owe $930,000 in back tax plus interest on the decade-old Arrowhead Renovation.
The Kansas City Star reports that at issue was the team’s argument that it didn’t owe taxes on hundreds of items it bought to outfit the new Arrowhead. The Administrative Hearing Commission disagreed in its ruling Tuesday.
The case stems from a 2014 audit in which the Missouri Department of Revenue challenged sales tax exemptions on $23 million in purchases. The state auditor found that items such as leotards for cheerleaders and weight-lifting equipment didn’t fall under the public purpose of fixing up the stadium.
The Chiefs’ lead attorney says the team will likely appeal. The Missouri Department of Revenue has previously said it won’t comment on pending litigation.