What Did Speedway Gas Station Pay In Taxes In 2018? [Answered!]

One of the most recognizable logos in sports history is that of the former American Motor Speedway. Aptly named, the speedway was the site of the annual Indianapolis 500, which was originally part of that track’s sports and entertainment complex. The speedway also sponsored a number of IndyCar racing series events as well as the Indianapolis Colts throughout the years. Having been a part of the Indianapolis community for more than 80 years, it’s only fitting that the last remaining slot in the complex would be dedicated to remembering and celebrating all that the speedway stood for.

The 2018 Indianapolis 500 Was The Last One Held At The Speedway

As you might expect, the events that took place at the Indianapolis Speedway over the summer of 2018 were dedicated to the memory of the track itself. The first and foremost of these events was the 98th annual Indianapolis 500. This year’s 500 took place on May 23 and was won by Alexander Rossi. The race also served as a memorial to those who lost their lives in the 2018 tornadoes that struck the city. The final race at the speedway was also the Grand Prix of America, an annual award ceremony that honors motorsport pioneers. This year’s edition of the Grand Prix of America was held on October 15 and was dedicated to the memory of those who lost their lives in the 2019 California wildfires.

What Other Events Occurred At The Speedway This Year?

Apart from the Indianapolis 500, the racing season also celebrated the 100th running of the Kentucky Derby. The Kentucky Derby is one of the preeminent sporting events in America, and it also serves as the starting point for the annual Triple Crown Races. The Derby is also where Thoroughbred horses are officially named and registered, so there are plenty of reasons why this year’s running of the Kentucky Derby was especially special.

The Indianapolis 500, the Kentucky Derby, and the Grand Prix of America all took place at the same time this year, which allowed fans to follow along with the action from start to finish. What’s more, the combination of the three events made for one of the sporting events’ most historic runs. The 2021 edition of the Triple Crown will be held a little closer to home for the Kentucky Derby, which will be run at Churchill Downs in Louisville, Kentucky.

What Taxes Did The Speedway Pay In 2018?

IndyCar racing and its supporting events are a huge financial boon for the state of Indiana, as more than $220 million is pumped into the economy every year. It’s therefore no surprise that racing enthusiasts will often do their best to make sure the state sees as much of the race-related income as possible. One way they do this is by maximizing their tax deductions when possible. This year, the speedway benefited from a new Indiana tax law that reduced its tax rate from 7% to 4.9%. This equates to a $60 million savings for the speedway alone. (The Indianapolis Star)

Among the other Indiana businesses that reaped the benefits of that new law were Lucas Oil Stadium, home of the Indianapolis Colts, and the University of Indianapolis, where the Indianapolis 500 is held each year. Those businesses each saved $23 million in taxes on an annual basis, which is largely thanks to the passing of the new law. (The Indianapolis Star)

What Did The Indianapolis Star And IndyCar Say About The New Tax Law?

The passing of the tax law got considerable attention from local media outlets because of how much it helped the city’s businesses and residents. The Indianapolis Star applauded the state for “doing what’s right for the most people,” while IndyCar said that it was “proud to be a part of the resurgence of Indy in the community.” Those sentiments were more than likely shared by many in the community who benefited financially from the new law. (The Indianapolis Star)

While the effects of the new tax law are still being felt four months later, it’s clear that the IndyCar community is happy that the state of Indiana is taking steps to promote business and industry in the state.

Where Do I Stand On The New Tax Law?

Like many others, I feel that the new tax law will have positive effects for average Hoosiers, as it closes a corporate tax loophole that had been allowing companies to avoid paying much in state income taxes. What’s more, the new law does away with the death tax, which had been imposed on the estates of deceased business owners, so more people will be able to enjoy their estates and pass on their successful businesses to the next generation. (The Indianapolis Star).

Certainly, there will be some negative effects from the new law, too. For one thing, the law won’t directly apply to those who receive charitable donations, as nonprofit organizations were specifically exempted from the new law. For another, the law doesn’t provide for an income tax break for tuition and fees for students who attend private and independent schools. So, if you’re in the fortunate position of being able to attend a top-notch university or college without financial assistance, you may still end up paying more in taxes under this new scheme.

What Other Major Changes Did The New Tax Law Bring?

Besides the income tax change, the new tax law also modified the state’s corporate franchise tax, doubled the standard business investment tax credit to 10%, and allowed parents to transfer up to $500,000 of their school-related debt to their children without having to pay the debt back (provided they’re over the age of 25).

Even if you don’t directly benefit from any of those changes, you’ll likely feel the effects of the new tax law in the near future if you own a business in the state. Those who find themselves in the unfortunate situation of having to close down their business as a result of the new law can apply for a refund of what they paid in excess of four million dollars in business taxes. (The Indianapolis Star)

What Did The State Of Indiana Say About The New Tax Law?

Speaking of the state, Governor Eric Holcomb was quoted by the Indianapolis Star as saying that the new tax law “will help ensure that Indiana remains a good place to do business.” He continued, “This new economic development bill will allow us to better position Indiana as a place to live, work and play. It’s great to see so many people and companies take advantage of the opportunity and make the most of this new law.”

As we’ve seen, the state of Indiana will benefit greatly from the new tax law, with many businesses and industry segments seeing major relief. But it’s also important to remember that not all businesses will see the same benefits, so owners of more expensive businesses will need to take steps to ensure they get their fair share of tax dollars too.

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