Effort could raise $2M a year to address deficit

The public will have the chance in March to learn more about a proposed half-cent sales tax that would go toward funding road repairs across Freeborn County.

County commissioners will have an outreach session at 7 p.m. March 17 in the commissioners’ boardroom at the Freeborn County Courthouse.

“The purpose of that is to explain the reasons why we’re looking into a proposed half-cent sales tax for highway projects and then to take comment on the proposed tax,” said Freeborn County Administrator John Kluever.

The commissioners have discussed the issue at three workshops during the last few months. Kluever said even with the $2 million expected to be raised from the tax each year, that would leave a roughly $4 million annual deficit in road projects that need to be completed.

He said those estimates do not cover costs for bridges, chip sealing or other maintenance to highways.

Kluever said if the county tried to raise the $2 million with property taxes that would equate to an about 10 percent increase in the tax levy.

Eleven other counties in the state have already implemented a similar sales tax, including Fillmore, Olmsted, Rice and Steele.

The Legislature gave county governments the authority to pass a designated sales tax to deal with infrastructure concerns.

The county in 2014 began collecting a tax from residents with motor vehicles — called a wheelage tax — that also is going toward road repairs.

That tax is $10 per car or truck that is ordinarily stored or parked in Freeborn County during non-business hours or when not in use. It is paid at the time of tab renewals and does not apply to motorcycles, mopeds, trailers, boat trailers, collector cars or all-terrain vehicles.

It is unclear whether the county would have both taxes. The wheelage tax could be rescinded if the board chooses.

Kluever said if the proposal moves forward there will be an official public hearing in late summer or early fall. If approved, it takes 90 days to go into effect. Kluever said the targeted start date would be in January.