Aggregate Tax Could Bring Money to Blaine County

If a bill coming through the Legislature becomes law this year, it could mean more than $60,000 for Blaine County.

State Sen. David Bullard, a Republican from Durant has sponsored a bill in the Senate – SB 960 – that would allow counties the option to tax aggregates mined in that county with the proceeds split between the county and the cities in that county.

There have been three previous versions of the bill, all of which died in committee in the Senate. This goround, though, Bullard started in the Senate and included the caveat the money be split between the county and the towns.

Under the bill, the counties will have to vote to enact the tax and how long the taxes would be collected. They could only use the funds for the upkeep, repair and construction of bridges and roads. Towns could use the funds for infrastructure, which includes roads, bridges, municipal utilities and other capital improvements.

While $60,000 is a drop in the bucket of road and bridge repair and costs, it is something. Because heavy trucks moving the aggregated damage the roads, the theory is the money could in some way help counties recoup the expense.

In 2020, the last year for which numbers are available, Blaine County produced more 1.2 million tons of aggregate, mostly gypsum. However, those numbers do include the production of the now-shuttered Black Sands mine near Canton. Under the bill, taxes levied on frac sand would be refunded to the producer.

If the 10-cent per ton levy were passed into law by the Legislature, and Blaine County enacted it, the result would be $123,774, using the 2020 figures. That equates about $60,000 to each the county and to be split among the towns.

The bill has been read twice and is now in the Senate Energy and Telecommunications committee. Thereafter it will have to clear the Finance Committee before heading to the House for reading. Similar bills have run into trouble at this stage, dying without clearing committee.

Should the bill clear all committees and pass the Legislature vote, it would become law in November.