By Shannon Fiecke, Correspondent

While Minnesotans may soon have to pay an additional quarter-cent sales tax while shopping in much of the metropolitan area, there’s a good chance shoppers won’t be paying extra in Scott County.

County commissioners have indicated they are unlikely to impose a 0.25-percent metropolitan sales tax, approved by the Legislature as part of a 10-year, $6.6 billion transportation package. The legislation also relies on increases to the gas tax, vehicle registration fees and other fees.

Originally, the sales tax increase was supposed to be a half cent and go toward roads and transit, said state Rep. Mike Beard, R-Shakopee. But to gain support from the state Chamber of Commerce, legislators halved the tax. Now, it can only be spent on transit.

In the metro area, the sales tax can only be enacted with the approval of county boards (which also must agree how to govern its allocation), while up to a half-cent sales tax increase is allowed in out-state Minnesota counties if approved by voters. Those referendums, however, must be directed toward a specific transportation project.

Along with the sales tax would come a $20 fee on vehicle purchases.

The metro sales tax is directed toward “transitways,” but the definition of “transitways” must still be defined, said Yvonne Forsythe, a staff member with the Metro Transitways Development Board.

Along with rail, bus rapid transit would likely be eligible for funding, but it’s unclear whether express buses or other types of bus service would qualify, according to Forsythe. She said what rural counties can spend the sales tax on is more open-ended.

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

It also raises significantly more revenue through vehicle registration fees – for instance, an additional $518 over 10 years for a $24,000 car.

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

Commissioners Barbara Marschall of Prior Lake and Bob Vogel of Elko-New Market both said they oppose it.

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

She also questions how much benefit the county would gain from the sales and excise tax.

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

Of the metro counties, Scott and Carver are considered the least likely to support implementation of the sales and excise taxes, despite the possibility that the money would stay here.

Counties contributing less than 3 percent of the total metro sales tax could spend it locally on new transit projects. Assuming all metro counties participated, the funds raised locally would stay in Scott and Carver counties.

Ulrich and Marschall were scheduled to receive a briefing on the bill this week in a Scott County transportation committee meeting; the matter is expected to go to the full County Board for discussion this month.

Wheelage tax

Counties were unsuccessful in support of legislation that would have allowed 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, she said, because all money raised stays in Scott County. However, at this time, she said she is satisfied with the current amount collected.

Hennepin County Commissioner Peter McLaughlin, who chairs the Metro Transitways Development Board, said at least two counties must opt in for the sales tax to be enacted.

Counties that participate will form an agreement and decide how to weigh their votes in picking projects. If by the end of the month they decide to adopt the tax, it could be in place by July 1.

“This represents an historic leap” for transit, McLaughlin said.

Because the financing would make the looming central corridor light rail project possible, Ramsey County is eager to adopt the tax, he said. Anoka and Hennepin are looking positively toward it, also.

For Hennepin, which would produce more than half the sales tax revenue, support will be contingent upon how much influence the county would have in allocating the funds.

“Our board thinks we should have a major role in deciding where the money goes,” McLaughlin said.

But State Sen. Claire Robling, R-Jordan, is concerned Hennepin County will have too much power.

She thinks representation on the joint-powers board should be done based on population, vs. sales tax receipts, given that much of the spending in Hennepin County is done by non-residents.

“We know Scott and Carver counties will spend a lot of money in Hennepin County,” she said.

McLaughlin said counties that choose not to enact the sales tax now could still join later.

Legislative action

Although enough Republican legislators crossed party lines to support an override of the governor’s veto on the transportation-funding package, locally it was opposed by Republican Sens. Claire Robling of Jordan and Julianne Ortman of Chanhassen, along with Republican Reps. Beard of Shakopee, Mark Buesgens of Jordan and Paul Kohls of Victoria.

Voting for the legislation were DFL Sens. Kevin Dahle of Northfield and John Doll of Burnsville, as well as DFL Reps. David Bly of Northfield and Will Morgan of Burnsville.

Robling and Beard were open to some level of a gas tax increase but said they think the total package was too much.

“I really did want to support a transportation bill,” Robling said, “but this one was not attractive to me.”

Rep. Buesgens opposed the legislation even more. He was against any tax increase, arguing that existing state dollars should be reallocated toward transportation.

“Unfortunately, the tax increase comes at a very unfortunate time,” he said.

Beard felt the legislation was weighted heavily toward light rail projects at the cost of roads and bridges. He said Republican legislators that sustained the override succumbed to an idle threat by the DFL that it would the only chance for passage of a transportation bill.

“There would have been another one — and a good one,” he said. “One not so transit-rich. Transit would have been taken care of, but this was over the top.”

Sen. John Doll of Burnsville said he didn’t hear from anyone against the bill until after it passed.

Robling said much of the focus on the bill has centered on the gas tax increase, even though it represents just a portion of the funding, with each penny adding only about $31 million per year.

 “The tab fees are going to sneak up and bite people,” she said.

Robling thinks the bill discourages the purchase of new vehicles, which are often more energy-efficient.

Doll noted that the state Chamber of Commerce supported the bill, and the legislation was half the size of an earlier proposed package, also opposed by the governor. After years of debate on transportation funding, this bill was overdue, he said.

“Waiting isn’t an option anymore,” he said.

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