Rochester, MN (KROC AM News) - The Olmsted County Board is scheduled to hold a public hearing Tuesday on a proposed new tax.

The transportation sales and use tax would be dedicated to the funding of county roads and bridges. The board will have to decide the size of the tax.

A state law passed in 2008 allows counties outside the Twin Cities area to impose a transportation sales tax to address transportation infrastructure needs. It gives counties permission to collect up to a half-cent sales tax on retail sales and uses. County Chief Finance Officer Robert Bendzick says it’s estimated a ½ percent tax would generate about $6 million a year.

If it is approved by the commissioners, the county could begin collecting the tax on July 1st.

Three years ago, Olmsted County began collecting a $10  vehicle wheelage fee and a quarter-cent sales tax to pay for DMC-related infrastructure expenses.

The board meeting is scheduled to begin at 3 p.m.

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