COUNTY ROADS AND TAXES

Recently, the Southeast Missourian newspaper published an article and editorial on the issue of road tax funding. Even though a county-wide transportation sales tax option to replace or reduce the existing property tax is not under consideration at this time, the Southeast Missourian suggested that more discussion be advanced on the issue of the transportation sales tax option.

As county commissioner of the first district, I have the responsibility of oversight for the county road and transportation system. Even before I became county commissioner a year and half ago, the county had been experiencing shortfalls in the county road budget that was being compensated for by shifting other county funds.

There has been recent discussion about this and the possibility of tax increases for funding the Cape Girardeau county road and transportation system in the media. These discussions may be putting the cart before the horse.

I want to make it clear that there is no plan at this time to raise any tax. There are other options that need to be explored before any decision can be made. Before we even consider raising taxes, we will need to see if existing county revenue can cover our future road and transportation budget needs. Regardless, I do not support any option that would raise taxes without voter approval.

Several months ago, the county commissioners had a general discussion on future funding options of the county road and transportation system. One option that I felt we should review was the reduction or elimination of county property tax on roads, and substituting it with a transportation sales tax approved by a vote of the people. Another option mentioned by others, which I do NOT support, would be for the county commission to impose a 50 percent increase of the property tax for county roads without a vote of the people.

Taxes should be fair to all. The impression of quotes in the Southeast Missourian article was that the existing property tax is a more fair way to fund county roads because it is only leveled on people who own property next to county roads. Not true, the existing property tax is on every piece of property in every city and every corner of this county. In addition, the county requires residents share in the cost of dust control and in the overlay program where it borders their property. There is no free ride in this county for anyone.

Our schools, library and senior citizen programs all depend on property tax and in most cases is their only local source of funding. There will be continued increases of our property taxes to pay for state mandates, capital improvements, and operations of our schools and other worthy projects. We can pay for our roads by raising property taxes that will compete for funding with our schools, or we can help our schools by exploring other options that would not increase property taxes such as a transportation sales tax that would be subject to voter approval.

MYTH: Property tax reduction benefits farmers more. State law requires farm land that is used for production to be assessed lower than commercial/industrial or residential property. Farm land assesses at 12 percent versus commercial/industrial land at over 30 percent, and residential land at 19 percent. As a result, any decrease in the property tax would give commercial and residential property owners a greater decrease in taxes.

MYTH: Sales taxes are not a reliable source of revenue. The record indicates otherwise. Several counties across the state already successfully use sales tax to fund transportation. In our county, sales tax have significantly contributed to the county's strong financial position, and a county sales tax built the Southeast Missouri Port. The City of Jackson has passed and uses a transportation tax to provide valuable road projects for the community. The majority of the City of Cape Girardeau's general operating budget comes from sales tax, and they have been able to not only fund operations, but build reserves. Also, the City of Cape Girardeau financed their portion of the $24 million Corps of Engineers Flood Project with a capitol sales tax.

MYTH: Farmers would benefit more because they don't pay sales tax. Not only do farmers and others that live in out-county areas pay sales tax to support the county, but every time they shop in our county's cities they pay city sales taxes on goods such as food, cars, trucks, and all kinds of items. Farmers are only exempted from sales tax on production equipment and supplies to produce their crops. The same applies to many other industries that produce goods.

The City of Cape Girardeau, which uses sales tax to provide many city services, estimates that around 70 percent of its sales tax revenues come from non-residents. Presently, Cape County property owners pay for 100 percent of the county road property tax because it comes from only Cape County property owners. A transportation sales tax would spread the cost to Illinois residents and residents from other counties that use our roads, lessenening the burden on Cape Girardeau county taxpayers.

In the 1990 census, the out-county areas of Cape Girardeau County experienced significant population growth. More people have moved into the county which will place more demands on our county's road and transportation system. In addition, business and industry has continued to move in to the county because of lower land development cost. Cape Girardeau County is quickly becoming one community. My job is to provide fiscally responsible management to meet the changing demands on Cape Girardeau County's Road and Transportation System.

Later this year the county commission may decide to review the county road and transportation system. With the retirement of the other two commissioners, the commission may decide to wait and allow the new county commissioners to address road transportation needs next year.

Either way, I will continue to search for options to better manage our county's road finances and continue to manage our county road and transportation system to meet any and all new demands placed on it.

Larry Bock represents District One on the Cape County Commission.