Churchill Downs tax exemption will remain through 2055

Churchill Downs will remain exempt from property taxes for the next 30 years after a vote by the Louisville Metro Council on Thursday. The bill passed Thursday also authorizes the city to issue up to $1.2 billion worth of industrial revenue bonds for renovations and development of the Churchill Downs property, loans that the track would be bound to pay back to the city.

The vote extended a tax exemption that has been in place for Churchill Downs since 2002. Some council members expressed concern over the company's corporate citizenship and also argued that the track should pay taxes in order to compensate the city for services such as fire fighting, emergency medical services, police and road maintenance. Others, however, pointed out the wave of high-profile companies leaving Louisville and argued that the tax break for Churchill Downs will help keep business in Louisville and keep local residents employed.

"Could they be a better corporate partner? Yes. Could they be doing more for the community? Yes. If we don't come up with this deal for them, will they proceed with their expansion? Probably not. And then, what have we gained?" council member Scott Reed said.

Metro Council approved the bill by a vote of 18-7, with council member Shameka Parrish-Wright voting "present". The vote was previously reported by Roberto Roldan of Louisville Public Media.

Though Churchill Downs does not pay property taxes, it does pay a PILOT, or payment in lieu of taxes, to the Jefferson County Public Schools. The PILOT covers the portion of tax revenue that the school district would otherwise have received if the track paid property tax.

The original proposal for the exemption extension included a plan to reroute that PILOT funding to the city budget instead. However, that was changed in the budget committee. PILOT funding from Churchill Downs will continue to be paid to the school system and earmarked for workforce development.

"When we looked into the change we were informed immediately by JCPS attorneys that we didn't have the authority to change that PILOT language," Metro Council member and bill co-sponsor Kevin Kramer said at Thursday's meeting. "Whether we actually have the authority or not is still up for some discussion, but the mayor's office felt like that wasn't something worth challenging and wanted to instead work with JCPS to reach an agreement that we could all be comfortable with."