Wright County may be looking to add a 1/2-cent local sales tax to help pay for road and bridge projects.

 

Clearwater Twp. Supervisor Bill Langenbacher reported the news during Monday’s monthly township meeting.

 

He said the issue was introduced during the township officers meeting last week. 

 

“It’s called a local option sales tax,” he said. “The process is, the county would have to hold a public hearing that identifies the list of projects that would be funded.”

 

The Wright County Highway Dept. has already identified more than $78 million in projects over the next 10-plus years, and $27 million in projects in the next five years.

 

“They only have $6 million for those projects,” said Langenbacher. 

 

Under Minnesota Statute 297A.99, Sub. 12, county boards may, after a public hearing, levy a sales tax for transportation and transit by resolution.

 

“It’s in the proposal stage. I just wanted to let you know it’s out there and it probably will happen,” said Langenbacher. “That’s my take on how the meeting went.”

 

The sales tax can’t be used for any other purpose, said Langenbacher. 

 

According to state statute, the tax must terminate when revenues raised are sufficient to  finance the project, except for taxes for operating costs for a transit project or transit operations.

 

The state sales tax is currently 6.875%. If the local option sales tax goes through, the rate in Wright County would increase to 7.375%. That doesn’t include other local taxes, like the 1/2-cent tax in the City of Clearwater for park improvements.

 

Supervisor Rose Thelen, a former Wright County commissioner, said the tax was discussed back in 2008 but was never voted on.

 

Proponents of the local option sales tax say it is a more equitable way to fund road projects. It allows counties to collect revenue without the need to raise property taxes. Those who travel through the county already have an impact on roads. They would share the cost of road improvements.

 

At the March 14 county board meeting, Wright County Highway Engineer Virgil Hawkins said the tax could generate about $5 million a year - about the same amount the county gets in state aid funding each year.

 

If the Wright County follows through with the tax, it would join 26 other counties that already have the tax in place.

 

Wright County Commissioner Michael Potter said it would be another tool the county could use.

 

“We have 551 miles of county road that requires $12 million a year just to maintain,” he said. “We’ve been waiting for the legislature to do something for the past few years. This is an option given to us. We have a lot of pass-through traffic. Between 30% and 50% of money generated will be people passing through our county.”

 

No hearing date has been set yet.