Rogers Countians on Tuesday overwhelmingly approved a sales tax extension that will support the funding of roads and bridges and help reduce the debt on a hefty civil judgment against the county.
More than 63 percent of the voters OK’d the one-cent tax. One-eighth of the levy’s proceeds will go toward paying off a $32.375 million judgment to Material Service Corp.
Elsewhere on Tuesday, voters in the city of Yale (Payne County) easily passed a one-cent sales tax for transportation projects.
“Honestly, I’m not surprised by the results,” said Kirt Thacker, chair of the Rogers County Board of Commissioners. “The people of Rogers County stepped up once again because they know how important these roads are to continued growth. I’m thrilled they got out and showed their support for their county.”
Rogers County passed the renewal of the one-cent sales tax in May. But because of a publication error, commissioners two weeks later voted to nullify the results of the election, rescheduling the vote for Tuesday.
The panel this summer also voted to dedicate one-eighth of that one-cent tax to the Material Service judgment. Rogers County residents are already paying that debt via a one-third-cent tax increase OK’d by voters in June 2012.
The one-cent sales tax extension, first approved in 1988, will be for five years, starting Oct. 1. The one-eighth cent over that period would generate an estimated $4.2 million, County Commissioner Mike Helm has said.
A total of 3,300 people voted in Tuesday’s election.
“I sincerely wish more people would get out and vote, but I don’t have any control over that,” Thacker said. “But they voted for this because this is a tax they can see in action. They had a say-so in it. We’re going to continue to build roads and bridges and move right on.”
Thacker said he expects the judgment earmark’s effect on road funds will be offset by several new businesses that have cropped up in the county, particularly a Walmart that is under construction in Catoosa.
The 2009 judgment to Material Service Corp., a mining company, was affirmed last year by the Oklahoma Supreme Court.
Material Service Corp. filed the action against the county in 2000. The company wasn’t seeking monetary damages but wanted a determination by the court that the county had improperly annexed the property leased by Material Service, preventing it from mining there, an attorney for the company said.
After a change-of-venue request was granted, the inverse condemnation case went to trial in Mayes County in 2009, with the jury awarding Material Service $12.5 million. Prejudgment and post-judgment interest, attorneys fees and costs since the 2009 jury verdict pushed the amount to more than $32 million.
Helm said last week that taxpayers have paid $623,804 in interest on the debt and will start making payments on the principal in 2014.
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