County in line for new gas-tax revenue

Flathead County is eligible for nearly $180,000 from the first round of state fuel tax funding generated by a tax increase that began last July 1.

The county plans to use the money for its gravel-crushing operation in the Gladys Glen pit in Coram, county Public Works Director Dave Prunty said.

The tax on a gallon of gas increased 4.5 cents — from 27 to 31.5 cents — for two fiscal years after the Montana Legislature last year passed the Bridge and Road Safety and Accountability Act. The tax jumps to 32 cents per gallon for another two fiscal years before going to 32.5 cents for two years and eventually settling at 33 cents a gallon.

The tax on diesel fuel jumped from 27.75 cents to 29.25 cents when the legislation took effect July 1, 2017.

Local governments can request the money starting March 1, but must have a plan for its use and a $1 match for every $20 they’re requesting.

Prunty said he got a letter from the state last week noting Flathead County’s share of the revenue will be $179,739. That’s far less than the estimate provided earlier by the Montana Association of Counties, which had indicated Flathead’s take would be close to $294,000.

The Montana Association of Counties is holding its midwinter conference this week in Billings, and Flathead County Commissioner Pam Holmquist hoped to learn why MACO’s gas-tax revenue estimates were so much higher than the actual allocations, Prunty said.

“While we don’t want to look a gift horse in the mouth, this first installment is $115,000 less than what we budgeted,” Prunty said. “We’re excited, though, to get the $179,000.”

The county commissioners must pass a resolution requesting the money and identify the source of the 5 percent match. County Finance Director Amy Dexter said she anticipates that will happen within the next month.

The increased fuel taxes raised $6.2 million statewide for road and bridge projects for cities and counties in the first four months.

Lynn Zanto, transportation planning administrator with the state Department of Transportation, said next year cities and counties will have a full year’s worth of increased taxes available, according to an Associated Press report. About one-third of the tax increase goes to the department for state projects.

Features editor Lynnette Hintze may be reached at 758-4421 or lhintze@dailyinterlake.com.