Decision delayed on Kandiyohi County gravel tax

WILLMAR -- Implementing a tax on aggregate mined in Kandiyohi County could generate between $48,000 and $72,000 a year in revenue that could be used, in part, to repair county, township and city roads.

The figures were based on data provided voluntarily by local contractors on the amount of gravel mined from 2000 to 2006.

During a hearing Tuesday, the Kandiyohi County Commissioners had a brief discussion about the pros and cons of a gravel tax but will not vote until Oct. 16 on whether or not to implement it.

While the promise of new revenue for roads is appealing, Commissioner Richard Falk said the hassle the added paperwork would cause to contractors and the county auditor, as well as the amount of tax the county would pay itself for using gravel on public works project, wouldn't make the tax worth the bother.

By using the estimates provided by Public Works Director Gary Danielson, Falk estimated the county would net about $18,000 a year in new revenue. "I don't see that this is a real benefit," Falk said.

Harris Duininck, president of Duininck Bros. Inc. of Prinsburg, said Kandiyohi County is the "big user" of the county's gravel.

Danielson said about 50 percent of the gravel mined in the county is used by government entities.

Commissioner Richard Larson, a longtime supporter of the gravel tax, questioned the accuracy of that, especially if another building boom hits.

Under state law, the county would receive 60 percent of the gravel tax for road projects and 30 percent would go to townships or cities.

Another 10 percent is to be dedicated to restore public or tax-forfeited gravel mines, but because none exist here, the county would get 70 percent of the revenue for road projects.

Neighboring counties, like Meeker, Stearns and McLeod, have a gravel tax and currently collect revenue on gravel that's brought into their county from Kandiyohi County.

Commissioner Harlen Madsen said if Kandiyohi County implemented a gravel tax, it would take that tax money away from those counties.

Duininck said he believed only about 10 percent of the gravel his company mines in Kandiyohi County actually went to other counties.

He said that he anticipates that gravel for the future state Highway 23 bypass around Paynesville would come from Stearns County.