SENATE EXTENDS TAX REBATE FOR NEWTON SPEEDWAY

Rod Boshart
Published: March 24 2014 | 4:03 pm - Updated: 1 April 2014 | 10:06 am in

The Iowa Senate agreed Monday to continue a state sales tax rebate for the Iowa Speedway at Newton and extend the potential $12.5 million benefit until 2026. In approving Senate File 2341 on a 36-9 vote, senators agreed to forego the previous requirement that the track be an Iowa-owned entity, noting that the new owner is an Iowa LLC and that the venue has a substantial economic benefit both locally and statewide. Last November NASCAR announced that the sanctioning body had itself bought the 7/8-mile track 30 miles east of Des Moines. To facilitate the track, which opened in 2006, the Senate agreed to rebate the 5 percent state sales tax through 2016 with an expected $12.5 million benefit. So far, the track has recouped about $3.5 million and the proposed legislative change would ensure the remaining $9 million tax benefit through 2026. Voters also approved local option and school infrastructure sales taxes total 2 cents – revenue which is retained locally, not by the track. Two Democrats joined seven Republicans in opposing the bill, while five GOP senators were absent for Monday’s vote. The bill goes to the Iowa House for consideration.

 

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