Changing Laws for Towing Can Help or Hinder Sponsorship

Over the years, I have preached to racers who attend our seminars that the hauler being used to tow is often a more important part of the sponsorship package than the race car. In most cases, more people are going to see the hauler than the race car.

I make the trip to our home in Florida from Pennsylvania a few times each year. While traveling up and down Interstate 95, I entertain myself by watching for trailers/haulers. I pay particular attention to those that have no logos or signage on them. Is there a race car in the trailer or is it a landscaper? The game goes on.

I keep thinking to myself that if it is a race car hauler, the lack of logos or signage means that their sponsors have missed some exposure opportunities to be seen by me. That signage could have caught my attention or another traveler's attention and perhaps resulted in business for the sponsor. Of course, parking the hauler with logos in strategic locations where it will be highly visible helps.

My longtime friend Karl Fredrickson, who is the editor of Speedway Illustrated, wrote to me recently. He knew I would be interested in what he had to share.

He reminded me of a story that was recently published in his magazine that dealt with changing laws for towing and the huge fines racers at all levels are paying. It has been especially troublesome since racers are in a quandary when the IRS says racing is a hobby and the DOT says it is commercial.

Many racers tell me that they do not put logos/signage on the hauler because of the DOT claiming it would be a commercial vehicle and that it would increase the cost of insurance and registration and require a special license. Others have told me there are no logos on their hauler because it would draw attention that they are hauling a race car and could result in the vehicle being stolen.

On top of that, fines are being levied for carrying fuel in a non-DOT-approved container (the fuel cell!) regardless of size and gross vehicle weight rating. As for the IRS saying racing is a hobby or a business, there are some proper procedures you should follow so that you do not get into tax troubles. Get a good accountant who can save you a heap of headaches.

Fredrickson told me he was writing to share the potential for great news: After reading the complete article, one of the subjects (actually, the person who got it started in their pages) named Corey Dripps gathered some friends to see what could be done to create more reasonable laws for transportation of motorsports equipment in Iowa.

Following proper protocol, Corey and his group petitioned Iowa'sHouse of Representatives by writing a letter and sending a copy of the article to each member.

We're thrilled to report that bill HF2447 passed the House with a 93-0 vote. It is now in the Senate Ways & Means Committee. The bill can be found at http://coolice.legis.iowa.gov/coolice/ default.asp?Category=BillInfo&Service=BillBook& GA=85&hbill=HF2447.

Bill HF2447, related to race haulers, does the following:

* Creates a new class of vehicles called "motorsports recreational vehicle." Annual registration is $400 (set by state, so it could be more or less based on the petitioner's request).

* An MRV registration can be used for the purpose of participating in motorsports competitions primarily for relaxation or entertainment purposes and not for a commercial purpose. "Commercial purpose" does not include a competition that involves prize money or commercial sponsorship.

* Exempts transportation of race fuel from general fuel regulations if the fuel is contained in fuel cells of a car or transported in the trailer in SFI containers.

* Permits a combination MRV up to 85 feet, unless specifically prohibited by federal law.

As you may guess, the DOT has made some waves. They have indicated that this legislation violates federal regulations (hence the "unless prohibited by federal law" language); however, no entity is registered against the bill.

Certainly a long road ahead, but change in laws is possible. The more states involved, the more potential for having a national change. Corey encourages us to share this bill as a template for other states. We've done so with readers in seven states. We hope that if enough states sign on, there may be potential at a federal level. Lofty goals, sure, but I'm thrilled how far this has come in Iowa.

I believe that sharing this with readers will help racers avoid problems on the nation's roadways and will certainly help with sponsorship efforts when it comes to including the hauler in a sponsorship package. It is important for racers to understand that laws are changing:

* Even the most modest trucks and trailers (say a duallie and 26-foot box) are subject to commercial laws; many racers believe they are reserved for toterhomes and tractor trailers, but not anymore.

* "Not for hire" on a hauler means nothing.

* Commercial laws apply by simply having the smallest contingency decal on a car or racing for any amount of prize money regardless of profit and loss (the opposite of what the IRS says).

* Hauling fuel across state lines, especially in a non- DOT-approved container, can result in fines like Corey Dripps paid: $4,000.

You can contact your state representatives and share this with them. It could save you some headaches and put you in position to do a better job for your sponsors.

"Racers are in a quandary when the IRS says racing is a hobby and the DOT says it is commercial"

Ernie Saxton is president of Ernie Saxton Communications Inc., which offers public relations, marketing, and sponsorship services and publishes Motorsports Sponsorship Marketing News, a newsletter that helps with sponsorship efforts and keeps readers informed on the latest sponsorship news. Saxton has been involved in the sport for more than 50 years, and his columns appear in a variety of publications. Readers can contact Saxton at 215- 752-7797, via email at [email protected], or online at