Maryland Files Tax Lien On Baltimore Racing Development

BALTIMORE (WJZ) — A major speed bump for the Baltimore Grand Prix.  The state has now filed a tax lien on Baltimore Racing Development.

Andrea Fujii has more on what that means for the future of the race.

Baltimore Racing Development owes the city and state nearly $600,000 in taxes. Now, officials say they will get their money one way or another.

The first annual Baltimore Grand Prix could be the last. Baltimore Racing Development owes nearly $600,000 in taxes.

“I know they owe money to Baltimore and they owe money to the vendors but when they owe money to the taxman, then they’re in trouble,” said State Comptroller Peter Franchot.

Franchot says the state will go after the corporation and its officers.

“These folks have opted to duck their obligation and it’s only fair that we collect that money,” Franchot said.

Earlier this month, the mayor’s office threatened to pull the plug on the city’s five-year contract with the Baltimore Grand Prix unless the organization settles its debts with the city by the end of the year. Those debts include $375,000 in city services, nearly $500,000 for admissions and amusement taxes, $250,000 for race event fees and $50,000 for Parking Authority. That doesn’t include hundreds of thousands owed to vendors.

Former Race CEO Jay Davidson spoke with WJZ following the mayor’s threat.

“If they ask for us to do it without running the race again, I mean, no, we don’t have the money just sitting there. Otherwise, we would have paid it,” Davidson said.

He says he thought escrowed ticket money would be used to pay the taxes but it hasn’t been.

Franchot says he won’t accept excuses.

“Fair is fair and wrong is wrong,” Franchot said. “This is wrong.”

Davidson says he couldn’t speak on behalf of the Grand Prix because he’s no longer the CEO. However, he and his wife were both named in the tax lien.

The Grand Prix is reportedly close to hiring a new CEO, Felix Dawson, a former executive for Constellation Energy Group.

  • great idea

    And thats why we have race tracks…

  • willie joe

    Another get rich quick not well thought out scheme. Unfortunately the city’s taxpayers & surrounding counties will pick up the tab just as America is doing when the few pricks who are immoral on Wall st turned our economy upside down. Government @ all levels is corrupt, Americans would have a much better chance of plucking hairs around a Lion’s azzhole than find a sincere dedicated politican who has the people’s rights in mind.

  • Nobody

    Why not take a tax lein on those on welfare to repay the money back that they are filtering from the system?

    • matt

      because there was no initial agreement for them to pay it back. though that stipulation should be written in from now on.

  • robertryan

    After one baby, the checks stop period! These people are just gaming the system & creating a new generation of dependent on government voters for the Democratic party. Time for America to say no mas, no more, F…!!

  • nobody

    Letting Baltimore City Gov’t put a black cloud over something that was good for the city. The Cart people possibly could care less if they came back to Baltimore. If these companies didn’t pay do you think the other host cities would still be hosting? I think the Gov’t gave them self big bonus’s that they can’t pay back to the city until this money comes in. I am rooting for the F1 people to pull Baltimore from the schedule. F B’more

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