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FAIRMONT-- The Martin County Board of Commissioners on Tuesday heard information from County Engineer Kevin Peyman to discuss whether or not the county wants to continue to collect wheelage tax.
Martin County has been collecting wheelage tax on each vehicle in the county since July of 2013. Peyman shared that 55 out of 87 counties in the state are collecting wheelage tax.Twenty-six of them are collecting $20, four are collecting $15 and 25, including Martin County, are collecting $10.
The discussion comes as, a year ago, the county implemented a half cent transportation sales and use tax. Peyman said he was providing information to see if the county wanted to continue with both or drop the wheelage tax.
In Martin County, the wheelage tax is bringing in roughly $220,000 and to date, since it started being collected, nearly $2.8 million has been raised.
Peyman said the money hasn't funded any projects on its own but it's helped by being additional funding on projects that use state aid.
"It's stretched construction dollars that we have to make them last longer," he said.
He said that was the goal back when the wheelage tax went into effect in Martin County back in 2013 and that it was also intended to use to fund rumble strips for safety.
"I completely understand if the goal was to add the bigger funding from the sales tax to replace this, we can live with that, it's still a big win. But we also have projects if we want to do both," Peyman said.
Commissioner Billeye Rabbe pointed out that the wheelage tax is already included in the highway department's proposed budget for next year. She asked what would happen if the wheelage tax is cut.
Peyman said there would not be a levy change as most counties don't spend levy dollars on construction.
"You would have to cut some construction? And that's been a priority," Rabbe said.
Peyman said they wouldn't necessarily need to cut construction right away but that it could alter big picture projects five to 10 years down the road.
"I'd have less money planned for projects moving forward," Peyman said.
Commissioner Richard Koons said he understood it would be $200,000 less coming in, but that there's also about $3 million more coming in now with the sales and use tax.
"We have the opportunity to give back to the people of this community," Koons said.
He said he has heard that the wheelage tax is unfair as tractors, combines and semi trailers don't pay the tax, yet their heavy equipment is hardest on roads.
"This is an opportunity for us to give back to the community. Something that no government ever does, they just take, take, take," Koons said.
However, Commissioner Joe Loughmiller said that the board wound't have passed the sales and use tax if it hadn't seen an increase in needs for highway funds.
"Year by year I agree with you, it's not a huge amount, but in 10 years, that's a bridge or a new section of road construction for the county," Loughmiller said of the wheelage tax.
He said he would hate to stop collecting the wheelage tax and in 10 years realize the mistake and have to bring it back. He also acknowledged that construction costs are not going to go down.
Commissioner Jaime Bleess said he didn't understand why the board would give up recurring revenue that helps the county. He said he felt like they were behind in implementing the sales and use tax.
"We are ultimately responsible for our roads and this is one way to help maintain the roads," Rabbe said in agreement.
To close out the discussion, Peyman said that the wheelage tax will stay in effect until the board passes another resolution to stop collecting it.
The board indicated that it will revisit the discussion in July of 2027.
Moving to other matters, the board held another budget discussion. Currently, it's looking at a 7.52 percent levy increase.
Auditor/Treasurer Mike Forstner talked about some of the changes since the last budget discussion, including annual funding requests that came in from the South Central Volunteer Dive Team and volunteer organization Crest.
He said they also reduced the health incentive to 50 percent participation, where it was originally at 75 or 80 percent.
"Empower requested $30,000 but we cut it down to $25,000," Forstner said. "The Historical Society and Fair Board decreased from the 2026 allocation amount."
Loughmiller pointed out that the Red Rock Center for the Arts has not made an allocation request yet. He questioned why they're on the appropriation list and County Coordinator Scott Higgins said they are anticipating the request.
"They've done it every year. They haven't come forward this year. I don't think we need to hold their hand. If they want to come and ask, they can come and ask. If they don't, they don't. I don't think we need to call local non-profits and ask them if they're going to come," Loughmiller said.
Bleess and Rabbe agreed. Bleess said they're a government entity and that for some of these groups, they may get grants and add staff and then when their grants end they want to keep operating as they were.
"I'm just not convinced we need to be funding multiple employees," Bleess said, mentioning Kinship.
Loughmiller said the county does have a contract with Kinship for $40,000 (though $45,000 is budgeted) and he said the demand for their services is increasing.
"I think our commitment and our contract is $40,000. That's what it needs to be," Koons said.
"We just have to be careful that we're not just writing checks all the time," Bleess said.
After some more discussion, it was also said that the proposed budget and levy will likely change as there isn't a definitive amount for health and human services.
"I think we'll get real serious really quick once we see what that number's going to be," Bleess said.
In other business:
-- The board heard a summer work summary from the county's intern, Max Poetter.
-- The board approved a 10 year tax abatement request from Andrew and Lauren Schmidt for construction of a single family home in Tenhassen Township.
-- The board approved a request from IT Director Jeramie Jones to purchase a Microsoft SQL server standard 2025 in a one-time amount of $7,450.
-- The board approved a Local Housing Trust Fund (LHTF) project funding request in the amount of $60,000, with half going to a Truman Habitat for Humanity home and half going to a Sherburn Habitat for Humanity home.
-- The board approved a request for two budgeted radios and batteries for the sheriff's department in the amount of $10,192.