Discussions by the Koochiching County Board Tuesday indicated commissioners will not seek to impose a new tax on the county’s 13,000 registered vehicles in 2014.
County Engineer Joe Sutherland explained a “wheelage tax,” which was originally passed by the legislature in 1972 for counties in the Twin Cities area, expanded to the rest of the state this year. The tax is a $10 fee paid when drivers annually register their vehicles with the state. While there are exclusions to the tax, estimates are the new tax would generate more than $130,000 each year for county road improvements and repairs.
“Today was just intended to give you an overview of (the tax),” Sutherland told the board Tuesday. “Money (from the fee) would be earmarked for road and bridge construction projects.”
Until this year, only Anoka, Carver, Dakota, Scott and Washington counties have charged drivers a $5 wheelage tax. County commissioners across the state are now considering the idea after the 2013 Minnesota Legislature expanded the option to all 87 counties, up to $10 per car or truck. Motorcycles, mopeds, trailers, boat trailers, collector cars and ATVs are excluded from the tax.
Sutherland noted that if commissioners want to implement the fee, they must pass a resolution to adopt the tax by Aug. 1 in order for it to take effect in 2014.
“This is an opportunity the county can look at on a yearly basis,” Sutherland said, noting that in 2018, the fee will bump up to $20 per vehicle.
“My concern with something like this is that down the road, the state would want to start assessing fees to counties,” said board Chairman Kevin Adee.
Sutherland said the state does, in fact, require a “small handling fee.”
Commissioner Wayne Skoe also had concerns, including the families who own multiple vehicles.
“There are some people who don’t have only two cars per family...they have six or seven vehicles,” he said. “It might not sound like much...but it adds up.”
Skoe said he was also worried that legislators would withhold highway funding to counties that apply the wheelage tax.
“Seventy-five percent of my calls are on highway (comments or concerns),” he said. “It is an issue, but I just can’t see (a need for) the tax raise.”
Commissioners said while an additional $130,000 in Koochiching’s highway fund is tempting, it “won’t make or break the county.”
Commissioner Wade Pavleck said with more money coming out of taxpayers’ pockets, he felt the wheelage tax would only add to that load.
“I don’t think this is the right time,” he said. “Having said that...some day we might have to look at this.”
In other business Tuesday, commissioners amended a June 4 motion to comply with an agreement of which they were previously unaware.
During its June 4 meeting, the board appointed Paul Nevanen to fill a vacated at-large position on the local airport commission on an interim basis while the commission’s bylaws are reviewed before making a permanent appointment. Commissioners said Nevanen will serve in the position through the remainder of the year.
The commission governs operations of the Falls International Airport, which is jointly owned by International Falls and Koochiching County. Falls Mayor Bob Anderson vacated the at-large seat on the commission, made up of International Falls and Koochiching County representatives, in 2012.
However, Tuesday, International Falls City Attorney Steve Shermoen said the commission does not have bylaws, but rather an operating agreement that was signed by city and county officials in 1997.
“It says if there is a vacancy, it is to be filled for the unexpired portion of the term,” Shermoen said.
To comply with the agreement, Shermoen said, Nevanen’s term shouldn’t expire until January 2015. He added that an amendment would correct the misunderstanding.
“I’m not sure the motion would have passed,” Pavleck said referring to the information Shermoen provided. “It has nothing to do with Mr. Nevanen, it has to do with involving the public and letting them have a voice to sit on that board...we have a history of having a non government official sitting in that capacity.”
Nevanen serves as director of the Koochiching Economic Development Authority, and Shermoen assured the board that it wasn’t a conflict of interest with him serving on the airport commission.
“In the interim, Paul will do a good job,” Pavleck concluded.
The board also Tuesday awarded the Benike family of Birchdale with the 2013 Koochiching County Family Farm Award.
The award, which is given through the county’s Extension program, recognizes the farmers in the community.
See Saturday’s edition of The Journal for a full story on the Benike family.
