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| Volume 17, Issue 3 | Spring 2004 |
State Gas Tax Exemption Legislation Proposed for North Dakota Transit Operators Michael SimonsonTransit Planner, City of Fargo In 2003, a bill was introduced in the North Dakota Legislature to eliminate the 21 cents per gallon state gas tax paid for fuel used in public transit vehicles. House Bill #1482, introduced and carried by Rep. Steve Zaiser (D) of Fargo, had broad support from urban and rural transit organizations, but ultimately failed. The North Dakota Department of Transportation and the North Dakota League of Cities moderately opposed the bill. They acknowledged the worthiness of the bill's objectives, but felt it would set a bad precedent by opening NDDOT coffers. Transit operators understand that public transportation is an essential service to both urban and rural areas. It is becoming increasingly more important as our population ages. Many people rely upon public transportation for basic necessities such as medical services, food, etc. Public transportation enables people to live at home longer, decreasing the need for costly elderly housing/care facilities. Perhaps most importantly, it provides dignity to our elderly and disabled by helping them maintain their independence. Public transportation is primarily funded by tax dollars. Both rural and urban systems are challenged to meet the needs of their citizens with limited resources. The gas tax on public transportation vehicles reallocates local public transportation funding to the state. Ironically, NDDOT returns some of this funding to local governments for public transportation. Most states, including Minnesota and Montana, do not pay state gas taxes for fuel used in public transportation vehicles. This creates issues for transit systems operating on state borders, such as the one in Fargo-Moorhead. Early on, NDDOT raised concerns about the possibility of the commercial operators benefiting from the bill. To eliminate this concern, the bill was written to apply only to vehicles used solely for public transportation purposes. The bill (#1482) and the fiscal note can be viewed at the ND Legislative Council website: www.state.nd.us/lr/assembly/58-2003/leginfo/bill-inquiry/. The fiscal note prepared by the ND Tax Department projected state revenue loss for the 2003-05 biennium at $300,000. While $150,000/year is only a small portion of NDDOT's budget, it is significant to transit operators. With fuel prices headed for all time highs, it will be more difficult than ever for some transit operations to provide necessary services. The need for this bill is greater now than ever before. The benefit of the bill to a transit operator can quickly be determined-take the number of gallons of fuel used times 21 cents. Transit operators in both North and South Dakota should rally to support this or a similar bill for the upcoming legislative sessions. Many good pieces of legislation do not pass on the first attempt, but, with modification and education, subsequently go on to become law. The bill should have broad support from legislators representing both rural and urban districts. It is a good bill for the benefit of all Dakotans. By working to improve the bill, and building broad support up front, the bill may well pass this time. See You at the RoadeoThe North Dakota/South Dakota Bus Roadeo and Driver Training will be held Saturday and Sunday, August 28-29 in Minot. The event marks the first year that South Dakota has participated in the annual event. Drivers from both states will compete on the same course together, but will be scored separately. A North Dakota winner and a South Dakota winner will be named for the roadeo competition. There will be two simultaneous training sessions for drivers. Pass training will be taught by Rick Thoms and Darrell Francis. Thoms is the manager and Francis is the treasurer of Souris Basin Transportation in Minot. A hands-on driver training course will be taught by Darrell Michalenko, manager of Minot City Transit. The number of drivers participating in the training will be restricted, so registration will be on a first-come, first-served basis. Additional information will be sent out later this summer. Hotel accommodations for Roadeo participants will be at the International Inn in Minot.
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