There’s a public hearing Tuesday, then another one next Tuesday, and then the St. Louis County Board is poised to pass a new sales tax to raise money to repair county highways and bridges. If you think that sounds like a pretty aggressive timeline you wouldn’t be alone.
Just like that, eight days from now, all of us who live in the county could be looking at having to spend .05 percent more for everything from car parts to perfume to dolls that poop charms you wear on your wrist. Only food and clothing would be exempt.
As much as most of us despise taxes, especially new taxes, sound arguments actually can be made for this one. The county estimates it should be spending as much as $40 million a year to maintain safe and smooth highways and bridges. But it’s spending only about
$17 million a year. The new sales tax could raise a much-needed additional $10.5 million annually. And that’s money that’d come not just from county residents or county property taxpayers. It’d come from everyone driving to malls and other stores and businesses, including those just visiting our area.
There’s no denying the need, and the sales tax certainly seems a fair way of raising the funds.
But that doesn’t mean the new tax should be rushed into existence. Is enough time being taken here to make sure the tax is necessary - and necessary at its proposed percentage? Are all questions and concerns being carefully addressed and answered?
For example, the Minnesota Legislature is expected to pass a transportation bill this session. It certainly will impact the county’s transportation funding needs. In addition, the Iron Range taconite tax is being audited; the Iron Range Resources and Rehabilitation Board, which distributes funds for public good, is getting new leadership; and the federal government always seems to be talking about raising the gas tax. Any and all of these things, too, promise to affect the county’s bottom line for highway and bridge repairs.
“There are so many unknowns,” St. Louis County Commissioner Chris Dahlberg of Duluth said in an interview with members of the News Tribune editorial board last week. “To me, the need is there, but the question is whether this is a good time. … Can we at least (wait until the end of) the legislative session (to consider adopting this new tax)? Because I think we need to address what’s going to happen at the federal level (and) what’s going to happen with the state. … Let’s go through the session and then let’s come back and consider this.”
Dahlberg’s desire seems reasonable. And responsible.
Another issue that could be tackled then, he said, is this disparity: An estimated 65 percent of this new St. Louis County sales tax promises to be collected in the Duluth and Hermantown business districts, easily the largest retail hub in the county. But very few of the county’s highways and bridges are in the Duluth area. So while the tax would be collected here, it wouldn’t be spent here, especially not with the county’s Haines Road and Highland Street just getting done in the Duluth area.
“Why should a Hermantown commissioner (or) the three Duluth county commissioners say, ‘OK, let’s all belly up.’?” Dahlberg asked.
Fair question.
Another fair question is whether the new tax would drive shoppers away from Duluth, where the sales tax would climb to 7.875 percent, and into Douglas County in Northwestern Wisconsin, where the sales tax is just
5.5 percent. The more expensive an item to be purchased the more likely that scenario seems. Have businesses been asked about this? Is enough time being taken for that to happen?
Even a public entity that has been as fiscally responsible as St. Louis County and the St. Louis County Board has to ask tough questions - with enough time allotted for the answers.
Be heard Two public hearings are scheduled as St. Louis County commissioners consider enacting a .05 percent sales tax. They are:
- Tuesday at 9:30 a.m. in the County Board Room in the St. Louis County Courthouse in Duluth
- Tuesday, Nov. 25 at 9:50 a.m. in the Hibbing City Council Chambers
By the numbers $10.5 million per year a proposed St. Louis County half-cent sales tax is expected to raise for transportation-related repair work in the county
3,000 miles of roadway St. Louis County is responsible for maintaining, about half of which are paved and half are gravel
500 miles of roadway St. Louis County is responsible for that’s considered “in very poor condition”
600 bridges St. Louis County is responsible for maintaining
120 bridges St. Louis County is responsible for maintaining that are considered “deficient,” which is about 20 percent of the total
9.26% increase in St. Louis County’s levy to raise the same $10.5 million per year that a proposed .05 percent sales tax increase is expected to raise
Source: St. Louis County (stlouiscountymn.gov)
