Gibbons backs bill on speedway taxes

Suzanne Struglinski

Monday, Oct. 6, 2003 | 11:24 a.m.

WASHINGTON -- Rep. Jim Gibbons, R-Nev., voiced support Friday for a pending bill that would prevent tax bill increases for auto racing tracks.

The bill, offered by Rep. J.D. Hayworth, R-Ariz., would allow a "'motorsports entertainment complex," such as the Las Vegas Motor Speedway, to follow the same seven-year depreciation schedule as amusement parks. The depreciation policy recognizes that as property gets older it loses value and must eventually be replaced.

"Congress has structured the depreciation provisions of the Internal Revenue Code to promote investment and modernization of business assets," Hayworth said.

According to Gibbons' office, the Internal Revenue Service has been questioning the race track industry's 29-year practice of using this formula, so the bill would clear up any confusion.

"The operation, design, and economics of motorsport facilities are entirely consistent with those assets covered under the depreciation schedule in the tax code," Gibbons said. "This bill will remove any question or doubt on the matter."

The speedway is in Gibbons' congressional district. He attended the UAW-DaimlerChrysler 400 in March and the Craftsmen Truck Series Las Vegas 350 late last month, according to his office.