The Circuit of the Americas future as host of the United States Grand Prix received a boost on Monday after reaching an agreement with the local Travis Central Appraisal District, which will save millions in property tax payments.
The circuit’s future on the Formula 1 calendar took a hit last year when the local government changed the way in which it calculates the positive economic impact of events on the local area.
The governments promised contribution of $25 million annually will reduce to $19m this year, leaving a $6m black hole in the circuit’s finances, which led to COTA chairman Bobby Epstein to declare the circuit “screwed”.
COTA launched legal action against the appraisal district – unrelated to the events contribution shortfall – in 2014, believing the value of the track had been massively overestimated, leading to higher than expected property tax payments.
An agreement to reduce that valuation has now been agreed, which will see the value drop from $271.5m in 2014 to $91.2m this year. Meanwhile the deal will retroactively lower the value in previous years, potentially saving upwards of $13m over the three years according to calculations by the American-Statesman.
Meanwhile F1 chief Bernie Ecclestone recently said he was confident the race would go ahead.
"I think Austin will happen this year. Epstein is confident. He knows the money is coming,” the 85-year-old told Forbes.
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