Photo: Tom Smith (flickr)
The Indianapolis Motor Speedway‘s plea for state assistance on improvements to the track is halfway to the finish line. The Senate has voted 37-12 to let the Speedway pocket up to $5 million a year in sales, income and corporate taxes collected within the Speedway property.
The Speedway wants to give the century-old facility a $70 million facelift featuring some combination of lights, high-definition video screens, a modernized scoring pylon, improved parking access, and renovations to the grandstand and restrooms.
Indianapolis Senator Michael Young says the Speedway’s income from the bill is contingent on the track’s success.
“I can‘t think of anything that‘s going to be detrimental to the state, because the burden is on the track,” Young says. “The state doesn‘t have to pay any more than what the track produces, so if the track can‘t produce the income or sales tax, we don‘t put it in as the state; the track would have to put it in.”
The tax recapture would be in effect for 20 years, allowing the Speedway to raise up to $100 million dollars. It is the same mechanism used to help fund construction of Lucas Oil Stadium, Bankers Life Fieldhouse and Victory Field in downtown Indianapolis.
The 12 no votes are the first glimmer of opposition since the proposal was announced last week.