Senate OKs racing tax break

Wednesday, May 16, 2001 | 10:25 a.m.

CARSON CITY -- Senators on Tuesday granted tax breaks for professional auto racing teams, a decision that local officials heralded as a major step forward in the growth of the motorsports industry in Nevada.

"Pending its being signed into law (by Gov. Kenny Guinn), this legislation can make Nevada a haven for motorsports racing teams and sanctioning bodies -- and at the same time bring a tremendous amount of revenue to the state," Las Vegas Motor Speedway general manager Chris Powell said.

It is expected that several teams will consider moving their operations to LVMS to take advantages of the facilities there. Having a testing facility (LVMS) in their backyard, combined with the tax break, is expected to entice several big-time race teams to move to Southern Nevada.

John Force, the 10-time National Hot Rod Association (NHRA) funny car champion, and Gerry Forsythe, who operates a two-car team in the Championship Auto Racing Teams series (featuring Las Vegas-based drivers Patrick Carpentier and Alex Tagliani), are among the top echelon teams said to be interested in relocating here.

"As a motorsports-related cooperation, we at Las Vegas Motor Speedway plan to work diligently to spread the word of the new opportunities that await racing businesses in Nevada," Powell said.

The full Senate voted 15-4 in favor of the tax break on engines and chassis to professional auto racing teams in Nevada. There was no debate.

Supporters of the bill testified earlier in committee that a racing team could save anywhere from $200,000 to $400,000 a year on purchases under the legislation. Currently, there are eight smaller teams already headquartered in Nevada.

CART president Joseph Heitzler, who along with Force campaigned for the bill, said the international CART series is seriously considering moving its headquarters from Troy, Mich., to Las Vegas. CART has 132 employees with average wages of $80,000.

The bill now goes to the governor for his signature.