[Congressional Record Volume 150, Number 55 (Tuesday, April 27, 2004)]
[Senate]
[Pages S4425-S4426]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  MOTORSPORTS FACILITIES FAIRNESS ACT

  Mr. ALLEN. Mr. President, I rise today to express my strong and 
enthusiastic support for S. 1524, the ``Motorsports Facilities Fairness 
Act.'' This legislation would properly clarify and codify the 
classification of a ``motorsports entertainment complex'' as 7-year 
property for depreciation purposes. The legislation would define a 
``motorsports entertainment complex'' as a permanent facility that 
hosts one or more racing events each year that are sanctioned by a 
nationally recognized sanctioning body. I was an original cosponsor of 
S. 1524, when my colleague, Senator Santorum, introduced it last July 
31.
  Virginia is home to twenty-seven motorsports facilities, ranging from 
the one-eighth of a mile Natural Bridge Dragstrip to such NASCAR Nextel 
Cup facilities as Richmond International Raceway and Martinsville 
Speedway. These tracks are found in every part of the Commonwealth, 
from Coeburn in Southwest Virginia, to Manassas in Northern Virginia to 
Norfolk in Hampton Roads. Every track makes a contribution to the 
economy, whether they run a weekly racing series, or draw over 100,000 
fans for a Nextel Cup event.
  The importance of these tracks for jobs and economic growth in 
Virginia was illustrated in an April 21, article in the Washington 
Times, by Jeffrey Sharpshott, entitled, ``Virginia City Seeks 
`Something Else.' '' This article described the significant positive 
impact of motorsports and the Martinsville Speedway on the area's 
economy: ``Martinsville, next-door neighbor to North Carolina, also 
tried to latch onto the rising popularity of auto racing and NASCAR. 
The town parlayed its speedway into a tourist draw. It opened a small 
community-

[[Page S4426]]

college program to teach future auto-team mechanics and managers. Kyle 
Petty, a team owner and driver, donated automotive parts. Tobacco 
commission funds allowed Patrick Henry Community College, the county's 
lone institution of higher learning, to retool a derelict building into 
headquarters for a motor-sports training program and to rev up the 
curriculum. ``We're actually getting people jobs,'' motor-sports 
instructor Mike Sharpe says, standing among brightly painted car 
bodies, reinforced racing frames, powerful engines and high-tech 
calibration equipment.''
  The Motorsports Facilities Fairness Act would provide certainty to 
track and speedway operators regarding the depreciation of their 
properties. This common sense proposal is necessary to allow these 
facilities to continue to enhance local and regional economies and to 
contribute to job growth.
  The Motorsports Facilities Fairness Act responds to the recent 
decision of the IRS to question the long-standing depreciation 
treatment of motorsports complexes used by facility owners. For 
decades, motorsports facilities were classified as ``theme and 
amusement facilities'' for depreciation purposes. This long-standing 
treatment was widely applied and accepted, until now. Over the years, 
relying on this good faith understanding of the tax law, facility 
owners and operators invested hundreds of millions of dollars in 
building and upgrading these properties.
  S. 1524 would merely allow the track owners to classify these 
facilities for tax purposes in the same way that they have done, 
without question, for years, or in some cases, decades.
  I urge the Senate to ``green flag'' the process on this winning 
measure. Approve S. 1524, the Motorsports Facilities Fairness Act. 
Let's wave the ``checkered flag'' for jobs, economic growth and logic.

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