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Bristol speedway wins $397,000 tax case against Tenn.

Published October 18th, 2009 | 0 Comments

NASHVILLE, Tenn. (AP) — A Nashville judge has ruled that Bristol Motor Speedway does not have to pay a $397,000 tax assessment from the state of Tennessee.

Chancellor Ellen Hobbs Lyle, in an order unsealed Friday, ruled in a dispute over money the racetrack brings in from the broadcast of NASCAR races.

The speedway last year challenged the assessment, claiming the state Department of Revenue was illegally taxing the track.

Speedway officials argued that television rights are intangible and that any money derived from the sale of them is not subject to Tennessee sales or business taxes. The suit also claimed the state wrongfully taxed the speedway for money it makes from mailing fees on tickets and from leasing space to vendors.

Lyle wrote that the assessments "do not fall into the category of tangible personal property."

The judge also ruled that "the relationship ... from the NASCAR agreement is more in the nature of a joint venture than contract of service by the (track) to NASCAR."

The taxes covered the period between July 1, 2001, and June 30, 2005.

The state claimed the revenue from the sale of broadcast rights is payment for services the track performs for NASCAR in providing the facility for NASCAR competition.

The NASCAR Sprint Cup Series and NASCAR Nationwide series, as well as the Camping World Truck Series, are historically televised from the Bristol speedway and dragstrip. NASCAR negotiates which of its events will be televised.

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