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At a public hearing last week on the gravel tax-- when the County Board was considering whether to increase it or cancel the tax altogether-- a relatively rare thing happened. Franconia Sand and Gravel Company owners John and Patty Mattson testified that they understood the need for the tax and could support the increase. John Mattson testifed he has "no problem" with the new state legislative action that requires counties to increase the tax to 21.5 cents per cubic yard produced. If the state mandated amount isn't collected then counties may drop the tax. The state had earlier set the allowed tax amount at 10 cents.

This tax was adopted by the Chisago County Board in 2004 and the first collections arrived in 2005-2006.

(There was also a charge of 7 cents per ton, which with the action taken is increased to 15 cents per ton. How the tax is assessed depends on how the pit tracks its inventory.)

Mattson said as a county resident and taxpayer he realizes the county relies on this revenue to help fund road maintenance and pit restoration and he would not be opposed.

The vote by the county commissioners to adopt the new ordinance language was 4-1 with Commissioner Mike Robinson opposed. Robinson did not express reasons for his opposition.

The clerk of the Board also read two letters into the public hearing record from two pit owners/operators who did not support the tax hike, but were unable to attend the hearing. Richard Peterson of R.E. Peterson Inc. and Karla Abrahamson of KGM Industries expressed opposition to adopting the hike in submitted testimony.

Planning and Environmental Services Director Mary Schmitz told the County Board she and her staff endorse the hike. She pointed out that the revenues help fund restoration as well as pit permit enforcement costs.

A report submitted in 2006 for the first full year of gravel tax receipts showed $86,000 collected. County Auditor Dennis Freed told the Board the most recent year's collection was more like $50,000. Freed said he couldn't estimate how much revenue this new tax will bring in because, even though the tax itself is increased, "...the production may be going down" Freed also mentioned the legislature wisely provided for administrative costs (5 percent) to be paid with the tax revenues.

Other highlights include:

The tax is effective January 1, 2009

The Board may by resolution (separate action) exempt the first 400 cubic yards or 575 tons per year, produced by operators or imported into the county. It's assumed the "small" operator applies for this exemption.

To not remit the tax or falsify inventory reports is a misdemeanor.

Distribution of revenues is changed to 42.5 percent goes into county coffers, 42.5 percent to the township or city where the pit is located and 15 percent goes into a special reserve fund to restore abandoned quarries, pits etc.

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