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August 20, 2008, 12:58 pm
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Tax for transit still up in the air

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By Shannon Fiecke, Correspondent

While you may have to pay an additional quarter-cent sales tax while shopping in much of the metro, due to a new law, there’s a good chance you won’t be paying extra in Scott County.

Scott County commissioners indicate they are unlikely to impose a 0.25 percent metropolitan sales tax, which was approved by the Legislature as part of a 10--year $6.6 billion transportation package.

Originally the tax bump was supposed to be a half-cent and go towards roads and transit, said Representative Mike Beard of Shakopee before the Shakopee City Council on Tuesday, but to gain support from the state Chamber of Commerce, the tax was halved. But now it can only be spent on transit.

In the metro area, the sales tax can only be enacted with approval of county boards (who then must agree how to spend the money), while up to a half-cent sales tax is allowed in outstate Minnesota counties if approved by their voters. Those referendums must be directed toward a specific transportation project.

The metro sales tax is directed toward "transitways," but the definition of "transitways" must still be defined, said Yvonne Forsythe, who is with the Metro Transitways Development Board, which has Scott County representation.

Rail is included. Bus-rapid transit would likely be eligible for funding, she said, but it’s unclear whether express buses or other types of bus service could be funded.

Forsythe said it’s more open-ended what rural counties can spend the sales tax on.

Legislators also authorized metro counties to enact a $20 excise tax on vehicles sold at retail.

The legislative package increases the state gas tax by 8.5 cents, while adjusting an arcane formula for divvying up transportation taxes, which has been greatly weighted toward the benefit of rural counties.

Although there’s been no official discussion yet, Commissioner Jon Ulrich of Savage said his sense is the Scott County board will not be supportive of the additional sales tax.

Commissioner Bob Vogel of Elko-New Market currently opposes enacting the tax, as does Commissioner Barb Marschall of Prior Lake.

County residents will already be paying a higher gas tax, Marschall said, and she agrees with the many phone calls and e-mails she’s received, that, given the hard economic times, the county shouldn’t be enacting additional transportation taxes.

She also has questions about how much benefit the county would receive from the sales tax or excise tax.

Ulrich said commissioners are still "sorting out" what the transportation bill means for Scott County.

Carver County Administrator David Hemze said his county board will receive a summary on Tuesday of the transportation bill’s impact, including the sales tax component.

Ulrich and Marschall expect to attending a briefing on the bill next week in a Scott County transportation committee meeting and then the matter will go to the county board for discussion.

Counties were unsuccessful in their support of legislation that would allow them to raise more money through the wheelage tax. Scott County currently collects an annual $5 per vehicle.

Marschall is supportive of the wheelage tax, because all money raised stays in Scott County. However, at this time, she said she is satisfied with the current amount collected.

Although some Republican legislators crossed party lines to support an override of the governor’s veto on the state transportation bill, locally it was opposed by Republican Senators Claire Robling of Jordan and Sen. Julianne Ortman of Chanhassen, along with Republicans State Representatives Michael Beard of Shakopee, Rep. Mark Buesgens of Jordan and Paul Kohls of Victoria.

Voting for the legislation were DFL Senators Kevin Dahle of Northfield and John Doll of Burnsville and DFL State Representatives David Bly of Northfield and Will Morgan of Burnsville.

-Shannon Fiecke can be reached at (952) 345-6679 or sfiecke@swpub.com.


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