The Pennington County Commission will consider imposing a wheel tax on vehicles in the county to make up for lost revenue from state and federal sources and to offset rising costs of materials for the county highway department.

County Highway Superintendent Hiene Junge said the commission should consider a wheel tax of between $2 to $4 per wheel because the county is losing hundreds of thousands of dollars from the state and federal governments to replace and repair roads and bridges and because the county budget continues to get tighter.

A $2 wheel tax would raise slightly more than $1 million, which could be used only to maintain roads and bridges, Junge told the commissioners. A $3 tax would raise $1.5 million, and a $4 tax per wheel would raise about $2 million. The maximum tax on any single vehicle would be $16 under the proposal.

The commission voted 3-1, with Ethan Schmidt voting no, to continue the wheel-tax discussion at its next meeting, Tuesday, June 17. Meanwhile, it is seeking public comment on the issue.

Schmidt said he opposed a wheel tax, citing high food and gas prices that families are facing.

Commission Chairwoman Brenda Young noted that the commission last year cut $3 million from its proposed 2008 budget, including $500,000 from the road and bridge department. She said the commission plans to cut $1 million from the proposed 2009 budget.

She read a statement from the commission that said a different source of funding other than property taxes must be found if the county is to continue operating in a fiscally responsible manner. State legislators have said counties already have a revenue source they can use - the wheel tax.

Young said two previous attempts to impose a wheel tax have failed in Pennington County.

She said the county has been fiscally conservative. "However, there's still considerable growth, and property-tax revenue will not be able to keep up with the demands and needs caused by that growth," Young read from the prepared statement.

In a later, related discussion about a long-term highway plan, Young referred to the impact if another source of funding is not found to replace shrinking funds from federal, state and local sources. "There's not going to be bridges fixed, there's not going to be roads repaired. There's going to be snow plowing, but it's going to be minimal," she said.

Young said commissioners want to hear from supporters and opponents alike of a wheel tax.

Junge said the federal government is predicting a $3 billion shortfall in its highway fund next year. The state Department of Transportation is predicting a $27 million shortfall in its highway budget.

Already this year, the county is losing $613,000 in federal forest funds that Congress stripped from an energy bill last winter. The money previously had been allocated to compensate counties and school districts for the loss of revenue because of a decline in timber harvests on federal lands. The money is used for county roads and bridges.

Junge said the state is also talking about passing on to the counties a 20 percent match it has formerly paid to get federal money for local projects. That would cost Pennington County about $260,000, he said.

The state's Pavement Marking Program for South Dakota counties was cut from $1 million in 2007 to $500,000 in 2008 and may be dropped entirely next year, costing Pennington County $120,000, he said.

"That all trickles down to local governments," Junge told the commissioners.

Junge also said the county highway department has seen a 166 percent increase in gas costs, from $1.32 a gallon in 2003 to $3.51 most recently, and a 300 percent increase in diesel fuel, from $1 a gallon in 2003 to $4 now. He said costs for road oil have gone up 300 percent, truck tires have increased 210 percent and asphalt mix has risen by 109 percent.

"Without an increase in revenues, our roads and bridges will become unsafe and overcrowded, and there will be more accidents and increased loss of life and injuries to our citizens," Junge said in his presentation.

He said that without adequate revenue to keep pace with population and traffic growth, his department will fall so far behind on maintenance that many roads will have to be completely rebuilt by 2020.

The total county road and bridge budget for 2009 is estimated at $12.9 million.

A wheel tax, if approved, would be imposed on cars and trucks, trailers, motorcycles and commercial vehicles.

Revenue from a wheel tax could replace some or all of the property-tax revenue currently allocated to the highway department.

In other action, the commission voted to authorize moving $45,677 from its contingency fund to the Central States Fair for electrical upgrades on the county-owned fairgrounds.

It also scheduled a June 17 hearing on a plan to spend up to $21,000 from contingency funds for a fairgrounds emergency evacuation sound system.

County seeks public comment

The Pennington County Commission is seeking public comment on a proposed wheel tax.

To comment, call the commission office at 394-2171, send an e-mail to ernieh@co.pennington.sd.us, or mail a comment to Pennington County Commission, Pennington County Courthouse, 315 St. Joseph St., Rapid City, SD 57701. Citizens also can contact individual commissioners.

Contact Steve Miller at 394-8417 or steve.miller@rapidcityjournal.com