By PETER HUSSMANN
Iowa Speedway will continue to be able to receive a rebate on state sales taxes collected at the track even if its Iowa ownership involvement falls to 25 percent.
Changes in the state sales tax rebate provisions Iowa lawmakers previously granted to the speedway were signed into law by Gov. Chet Culver Tuesday night as part of the wide-ranging "standings bill."
In 2006, Iowa lawmakers approved a measure where the speedway would be able to claim a rebate on sales taxes at the facility for a 10-year period or up to $12.5 million. In granting that incentive, lawmakers included provisions that required that at least 60 percent of the ownership of the facility rest with Iowa residents, an Iowa corporation or a combination of both. The sales tax rebate would cease should "change of control" of the Newton racetrack fall below those percentage levels prior to its ending date.
The measure signed by the governor lowers the Iowa ownership requirements to 25 percent. The Iowa track owners now become ineligible for the sales tax rebate if their ownership interests fall below that threshold.
The change in the ownership requirements signed into law by the governor is likely an outgrowth the speedway's board of director's decision to substantially increase the availability of ownership shares in the racetrack.
In a filing with the Iowa Secretary of State in late October 2008, the U.S. MotorSport Corporation, parent company of Iowa Speedway, amended its articles of incorporation to increase the number of shares the corporation is authorized to issue.
The amended article states that "the aggregate number of shares of stock which the corporation is authorized to issue is 100,000,000 (100 million) shares of common stock, no par value. The common stock shall have unlimited voting rights and shall be entitled to receive the net assets of the Corporation upon dissolution."
Previously, the corporation was authorized to issue 20 million shares.
The Iowa Speedway has attracted several high-caliber races this season. In addition to the return of the Indy Car Series, the Newton raceway will also host a NASCAR Nationwide race and a NASCAR Camping World Truck Series event, the number two and number three NASCAR series. Speedway officials have said they will bring in temporary seating to accommodate the expected large crowds. The track currently has permanent seating for 25,000 but officials have said they will look to expand that capacity.
Recent Comments