The Iowa House has passed a bill that would grant a tax rebate of up to two-million dollars to the Knoxville Raceway. Representative Scott Ourth, a Democrat from Ackworth, lives 25 miles west of the dirt track.
“Not only is the sprint car track and the Knoxville Raceway a huge economic development boon to Marion County and the Knoxville area, but it also fills up the hotels in Lucas County, Appanoose County, Warren County and many of the other south central Iowa counties when the races come to town,” Ourth said.
The Knoxville Raceway’s owners would get the same type of tax break that’s been extended to the Iowa Speedway in Newton. The five percent state sales tax that’s charged on goods and services sold at the Knoxville track would revert back to the track’s owners who plan to upgrade the track facilities on the Marion County Fairgrounds. Ourth was the only member of the House to speak about the track when the bill came up for a vote.
“It’s a huge economic development boon for an otherwise somewhat depressed economy in southern Iowa,” Ourth said. “I’m very excited about this whole thing and they are doing great things to help grow southern Iowa and bring business into that neck of the woods.”
The bill passed the House on a 78-15 vote. It now must pass the Senate before it can go to the governor for his review. Governor Branstad went to Newton earlier this month to sign the bill that provided a similar tax break to the Iowa Speedway.