State fixes gas tax situation

Published 10:54 pm Monday, September 17, 2012

VALLEY GRANDE — The Valley Grande City Council passed a resolution Monday that approved a gas tax transfer, which would allow the city to benefit from gasoline taxes.

Mayor Tom Lee said he hopes roads will be improved as a result of receiving gasoline tax money.

Until recently, Lee said Valley Grande was not being recognized by the state and therefore not benefiting from gas taxes.

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“The state was not remitting it to us because they did not recognize us as a city,” Lee said. “That was an error on the part of the state.”

State gasoline taxes are fixed in a 4 percent, 5 percent and 7 percent rate, Lee said, and that money is usually funded back to the city to help improve road quality.

“That money was just being sent outside to Dallas County,” Lee said. “Valley Grande was not being recognized, therefore there was no separate distribution of gas tax money to the city of Valley Grande.”

Now, Lee said the city will be able to give tax money they receive from the state back to the county, which can then fund construction to repair Valley Grande roads.

If the city did not give money to the county to do this, Lee said Valley Grande would have to go through another contractor, costing more.

“We’re hoping by allowing us to help pay them, we can get a little bit of extra help,” Lee said of the agreement.