Area county considers, then rejects, repeal of wheel tax

Talk about it

HOWARD — In a time when many counties and townships are trying to or have enacted a wheel tax, Miner County contemplated ending its 16-yearold wheel tax Tuesday.

After roughly 45 minutes of discussion, County Commission Chairman Rollin “Rollie” Schulz, of Canova, broke a 2-2 vote to oppose repealing the wheel tax. That means the county will continue imposing the $4 per wheel tax, which is the maximum allowed by the state.

Schulz, who was not re-elected last month, acknowledged that fact before he cast his vote. He said he initially opposed the wheel tax when it began in 1994.

After hearing both sides, Schulz admitted he was torn on the issue.

“It tears me up to think that it’s going to come down to what I may decide,” he said. “I found that it did have a place in Miner County that was good. It was used (in) the right way for several years.”

Aside from Schulz, commissioners Don Bowman and Pat Maroney voted against the repeal. Commissioners Heath Thompson and Voni Durant supported it.

Thompson, of Howard, brought a resolution to the board, proposing to end the wheel tax. He cited the fact that the county will receive double the amount of property tax revenue from TransCanada’s Keystone Pipeline project that runs through the western part of the county.

“It can far more than replace the money we are getting back from the wheel tax,” he said. “We could repeal that and if there is a later date or time when that money is needed in the road and bridge fund, we could put it back on.”

Thompson said the reasons for collecting the wheel tax no longer exist. Those reasons included a proposed property tax freeze and uncertainty of replacement funds because of state cutbacks if video lottery would end.

County Auditor Susan Connor said Monday the county will receive an estimated $127,000 from the Keystone Pipeline starting in 2011 for 2010 taxes.

Miner County’s wheel tax generated $63,409 in 2007 and rose to $67,340 last year, Connor said.

Maroney, of Howard, said too many budget uncertainties exist at the state level. He pointed out that the state Association of County Commissioners has asked counties to have a wheel tax because state lawmakers have complained that counties have an opportunity to generate revenue with that tax and don’t take it.

Durant, of rural Carthage, said the county is in a fortunate position and she wants the tax ended to let county residents know commissioners can give them back tax money instead of continuing to pump the well.

“Maybe we are running the bucket more than we need to,” she said, adding she didn’t want it to go empty.

Bowman, of rural Fedora, cited the economy as a consideration and asked what the county would do if gas prices rose significantly. He noted that license plate fees in South Dakota are reasonable.

“If we are going to do this, we need to sit down and think about it,” Bowman said. “If we repeal it, what are the chances of getting it back?”

County Highway Superintendent Ron Krempges noted the rising costs for materials, equipment and projects and gave examples.

The price tag of completing a ninemile asphalt overlay project has risen from $357,847 in 2002 to $864,000 this year. As for a nine-mile, chip-seal project, that rose from $67,592 to $130,000 in those eight years.

“Everything is going up. I feel we are in a pretty good plan as far as roads and equipment,” he said.

Krempges said afterward that he has two asphalt overlay projects planned in 2014. He plans to replace a gravel truck set up for snow removal next year, a front-end loader in 2012 and motor grader in 2013.

Connor asked if commissioners would consider a decrease in the property tax levy to give taxpayers some relief for the 2012 budget.

She added that employees from the county treasurer’s office have told her they don’t receive complaints about the wheel tax.

Cindy Foster, a Beaver Township resident from rural Fulton, noted 11 of 16 townships in the county have opted out of the state property tax freeze.

She wondered if there is a way that some wheel tax revenue could be appropriated to townships. She added she doesn’t want to see more county roads turned back to gravel.

Prior to Schulz’s vote, Connor said portions of wheel tax revenue could be set aside for townships and the county’s road and bridge fund.

Schulz said several townships, including the one in which he lives, are in financial trouble.

“This money could be well spent that way,” he said.

After the vote, Bowman and Maroney said Foster’s suggestion is worth considering.

Krempges said afterward he was pleased that the wheel tax was kept, noting he didn’t think the tax could be reinstated again.

Thompson didn’t express disappointment after the vote, but said the prospect of giving townships part of the county’s wheel tax revenue raises more questions in his mind as far as the breakdown and how such money should be disbursed.

Tags: wheel tax, news, howard