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A referendum question on the Nov. 4 ballot will ask residents to allow an additional 0.5 percent sales tax in the county to pay for dam repairs.
Seeking additional tax money in a time of economic downturn is difficult, but it’s necessary and has benefits to those who live here, Vernon County Board Chairman Tom Spenner, of rural Hillsboro, said.
It’s necessary because repairing the dams is a matter of public safety. The Wisconsin Department of Natural Resources has ordered the county to repair five dams, Vernon County Conservation-ist Kelly Jacobs said. The county has also received 18 different directives from the DNR for dam repairs. Of the $11.75 million total, $3.57 million is to repair Runge Hollow dam, $1.87 million is for Jersey Valley dam, and the other $6.3 million is for other dams, Jacobs said.
Spenner said the county board could simply borrow the money and pay for the bonds through the property tax. However, he said, offering the sales tax is a way to pay for the dam repairs that includes revenue from outside the county. The sales tax will gather money from those who live here and those passing through, and visiting or absentee landowners — of which there are many.
“If a sales tax is passed, not only will people in Vernon County pay, but also tourists who use our recreational areas,” Spenner said. “Vacationers, deer hunters, seasonal visitors — all will pay some of the cost.”
Vernon County already has a 0.5 percent sales tax that was instituted in 1997. Most of Wisconsin’s counties have the same tax, which is used solely to offset the property tax.
Vernon County Clerk Ron Hoff said in 2007 the tax generated $1.19 million. In 2006, it generated $1.1 million. A sales tax for dam repair, if approved, would generate the same amount. Spenner said the tax would eventually be discontinued when dam repairs were paid in full.
In Wisconsin, it’s unusual for a county to establish a sales tax beyond what is allowed for property tax relief. Brown and Milwaukee counties, as part of raising revenue for stadiums for the Green Bay Packers and Milwaukee Brewers, respectively, have had county sales taxes passed on their behalf by the state.
County sales taxes have to be approved by the Legislature after they are approved by voters. Spenner said legislators have told him Vernon County’s initiative could require a two-year process to get final approval from the state.
Vernon County’s sales tax initiative isn’t the only one on the ballot in Wisconsin this year. Spenner said Milwaukee County has a 1 percent sales tax referendum on its ballot and, if approved, that money will go to Milwaukee County’s budget.
The difference, Spenner said, is Vernon County’s referendum goes directly toward paying for public safety.
“They are mighty powerful in Milwaukee, but if they can get that, why can’t we get a 0.5 percent sales tax to save lives?” Spenner said.
On the ballot
To avoid additional property taxes and subject to the approval of the state, should Vernon County impose an additional 0.5 percent sales tax which shall be maintained in a separate account and used exclusively for the repair and rehabilitation of the 22 PL566 structures (dams) within Vernon County and further, that this tax remain in place until the sum needed for repairs is received.
A ‘YES’ VOTE: Means that the county can petition the state legislature to have the sales tax approved. Then if it is approved, the county can begin collecting the tax and the money collected would only be used to repair dams. The tax would remain in effect until the total money needed to pay for dam repairs is received.
A ‘NO’ VOTE: Vernon County would have to find another way to pay for dam repairs.
