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Local road tax options report published Anne Finn Barry Ryan of the University of Minnesota's Department Three are related to vehicle ownership and travel, ofApplied Economics recently completed a research proj- including: ect evaluating road tax options for Minnesota.The report • Motor vehicle registration taxes. compares approaches used in Minnesota to those of sev- • Motor fuel taxes. eral other states.Ryan's final research report on this project, • Toll charges. titled Local Road Tax Options:Is Minnesota Really That Finally,three are related to local economic activity. Different?(Mn/DOT 2006-17),was recently published by They are: the Minnesota Department ofTransportation and is avail- • Sales taxes. able online at:www.Irrb.org/PDF/200617.pdf. • Personal income taxes. The report looks at states with local road revenue • Business taxes. structures similar to Minnesota's,as well as states with The report documents that local governments in local road revenue structures unlike Minnesota's.It iden- Minnesota rely primarily on local general funds,property tifies twelve local road taxes used in various places in the taxes,special assessments and state aid.According to the United States. study,Nebraska,Wisconsin,Mississippi,New Mexico,and Of the 12 revenue mechanisms,six are related to Kansas have local road revenues most like Minnesota.New property access.They include: Hampshire,Florida,Georgia,Hawaii,and Nevada are the • Real estate (property) taxes. least similar to Minnesota. • Personal property taxes. While the report does not make any recommenda- • Levies in specific"road districts" tions,it does contain valuable information that could assist • Real estate transfer taxes. policymakers in Minnesota with weighing—and possibly • Special assessments. expanding—local road funding options. Ir • Development impact fees. Continued from page 8 Local registration of licensed plumbers.The depart- plumbing in a city with a population less than 5,000, ment is considering a proposal to expressly prohibit local unless that city has an ordinance requiring licensure. registration of licensed plumbers. The PHCC-MN proposal would likely allow certain Statewide licensing of plumbers. Over the last sev- plumbing contractors in small cities to continue minor eral years,the Minnesota Association of Plumbing-Heat- plumbing installations under current law.While this pro- ing-Cooling Contractors (PHCC-MN) has expressed posal is not currently part of the department's draft leg- an interest in legislation requiring statewide licensing of islation,language requiring statewide licensing of all all plumbing contractors.Under current law (Minn.Stat. plumbers could be considered as an amendment to the 326.40),plumbers working in cities with a population agency's bill as it moves through the legislative process. of 5,000 or more must have a state hcense.A plumber's Please contact Laura Harris,LMC,at (651) license is not required for any person contracting to do 281-1260 or lharris@lmnc.org with any comments or concerns about these proposals. Y September 13, 2006 LMC Cities Bulletin Page 9