Iowa Speedway sales tax rebate passes in Iowa Senate

A bill to extend a $12.5 million sales tax rebate for Iowa Speedway overwhelmingly passed the Iowa Senate by a 36-9 margin Monday afternoon. A companion bill in the Iowa House is expected to go to the floor in that chamber soon.

The $12.5 million incentive was originally offered in 2006 when Iowa Speedway first broke ground. Under the provisions of the incentive, Iowa Speedway receives an annual rebate of 5 percent of its state sales tax revenue — so far, that has amounted to about $3.1 million.

The incentive is currently set to expire in 2016.

Senate File 2341 extends the incentive for another 10 years and allows for out-of-state ownership of the facility through NASCAR. Iowa Speedway President Jimmy Small had previously told legislators the incentive is necessary to ensure the track is able to move forward with expansion efforts.

In interviews with the Daily News, he said the racetrack, which has faced enormous financial difficulties under previous Iowa-based ownership, has to prove to NASCAR leadership it can operate on its own. Iowa Speedway benefits from the incentive only if it is able to put fans in the grandstand.

State Sen. Bill Dotzler of Waterloo, an avowed racing fan, echoed those sentiments as he urged his colleagues to pass SF 2341. Some Republicans balked at the measure, saying it was “choosing winners and losers” that would be best resolved in an open-market situation.

State Rep. Dan Kelley (D-Newton) said the bill would come to the House floor today.

The bill has passed the Iowa House Ways and Means Committee. SF 2341 was immediately messaged to the House — where it may be considered for a floor vote at any time — after it received the Senate’s approval.

Daily News Editor Bob Eschliman may be contacted at (641) 792-3121, ext. 423, or at beschliman@newtondailynews.com.