REGIONAL – Come spring, county consumers will find the results of an extra half-percent tax on their receipts for products already subject to the state’s sales and use taxes. On Tuesday, the St. Louis County Board of Commissioners voted 5-1 to pass the new transportation sales tax, which, in addition to local property and state and federal gas tax revenues, will fund the county’s Transportation Improvement Plan road and bridge repair work with an estimated $10.5 million a year.

“Any tax is a difficult decision,” said Fourth District County Commissioner, Mike Forsman, according to a county press release. “But knowing the poor condition of our transportation system, this is absolutely needed for public safety. Over the last 20 years, the costs to maintain our roads and bridges have gone up tremendously, but the revenue we’re given to do the work has gone down.”

The new tax, which will take effect April 1, will add a dollar onto every $200 purchase. Vehicles bought from dealerships will have an additional one-time $20 tax in lieu of the new sales tax.

As part of its approval by state legislatures in 2013, the tax will end when the county transportation plan’s projects are fully financed – a total which is currently slated at over $642,200,000.

“In theory, that list could go out 64 years until you satisfy the cost,” said St. Louis County Public Works Director, Jim Foldesi, “but that’s not going to be the case.”

Foldesi explained the county will essentially add the new tax’s $10.5 million annual revenue to the county’s five-year capital infrastructure plan, which is funded by local property taxes as well as state and federal gas taxes.

“Realistically, you’re looking at a 25-year plan if you look at all funding sources,” said Foldesi, who added that the new levy will help fill in the gaps where federal funding has dwindled.

“We used to get $6 million annually, now we’re down to $2 million annually,” he said.

The county board can also delete items from the slated project list at any time through a vote and public hearing, Foldesi said.

Currently, the plan lays out $7 million of the new tax revenue for construction projects that will extend the lives of 670 miles of warped paved roads up to 15 years. About $2 million of the revenue will go toward reconstructing 79 faulty bridges, including timber bridges. And $1 million will be used in efforts to lower transportation risks, including intersection-related safety projects and Safe Routes to School. The remaining $500,000 will help maintain the quality of high-traffic gravel roads.

The fourth district, which has the most road mileage in the county and 1,700 miles, will see reconstruction and repairs on over 30 defective bridges and sub-par road conditions particularly around Embarrass, Hoyt Lakes and Ely.

Commissioners in favor of implementing the new tax argued it is better than the other option to fund the transportation projects, which would be to raise property taxes. Future revenue from the new sales tax is approximated to be equivalent to a 9.3-percent property tax increase, according to a county press release.

An estimated 30-40 percent of the sales tax’s revenue will come from consumers who are non-county residents, including motorists who use county roads yet pay property taxes elsewhere.

Opponents were upset that Duluth would generate most of the sales tax revenue, yet benefit from it the least since rural St. Louis County has the most road mileage. Forsman argued in a previous board meeting that many Iron Rangers shop in Duluth and use rural county roads to get there.

Once the new sales tax is implemented, the county expects the transportation projects can begin shortly after, this summer.