Panel: Chiefs Owe Nearly $1M in Back Taxes for Renovation

A state panel in Missouri has ruled that the Kansas City Chiefs owe $930,000 in back tax plus interest on the decade-old Arrowhead Stadium renovation.

The Kansas City Star reports the NFL team argued that it didn’t owe taxes on hundreds of items it bought to outfit the new stadium. But that argument was dismissed Tuesday in a ruling by the Administrative Hearing Commission.

The Chiefs’ lead attorney says the team will likely appeal.

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 the stadium.