- Associated Press - Tuesday, January 24, 2017

GLEN ULLIN, N.D. (AP) - A new city councilman is proposing Glen Ullin impose a 2-cent tax to anyone fueling at the town’s two gas stations.

City Councilman Sid White‘s proposal of the 2-cent tax would go toward future street improvements, The Bismarck Tribune (https://bit.ly/2j51A10 ) reported.

“It’s a way to think outside the box and a quicker avenue toward some changes,” White said.

City attorney John Mahoney said that before imposing the tax, the city would have to amend its home charter rule and have it approved during an election by the city’s citizens.

In 2011, the state Legislature clarified home rule taxation powers and provided an exemption for vehicle fuels.

Mahoney said taxes can only be charged on fuel sold in town and not sold in bulk in the countryside.

“If Glen Ullin primes the pump on this, there might be other municipalities that might like to do it,” Mahoney said.

A few communities have looked into the concept, but none so far have adopted the tax, according to Kathy Strombeck, state Tax Commission research analyst.

About 750,000 gallons of fuel for vehicles is sold in Glen Ullin, which would provide the city with $15,000 revenue, according to White. He said that at 20 to 40 cents a fill, it’s not a lot, but it could make the city’s payment on a street improvement loan or other fixed cost.

“This could be an alternative way to fund repairs without putting a huge burden on the community,” White said.

White said he’d like to see an election sometime this spring.


Information from: Bismarck Tribune, https://www.bismarcktribune.com

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