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Village not collecting tax on haulers

WELLSVILLE — Seven companies blamed for the deteriorated condition of village streets traveled by their trucks are prepared to contribute $50,000 annually over the next five years to help with repairs.

Jay Muse, vice president of the Wellsville Terminal Co., said they submitted a proposal seven months ago and have been trying to work out the details with village officials.

“We’re ready to go. We were ready to go in December …,” Muse said.

Mayor Nancy Murray expects the proposal to be brought before council soon. “It’s all done. We’re just waiting to hear back from the attorney” representing the seven companies to iron out the remaining details, she said.

Last August, council enacted a 20-cents-per-ton tax on bulk material transported by truck to and from businesses operating in town, with the money to help repair and maintain the village streets traveled by those trucks. The affected businesses are Wellsville Terminal and Marathon Petroleum Co. and the five businesses located in the Columbiana County Port Authority’s riverfront industrial park.

Wellsville Terminal and Marathon both sent warning letters prior to the vote saying they would take legal action challenging the hauling tax if it was enacted. The tax is in effect, but it has yet to be enforced because the village was concerned about being sued, although no lawsuit has been filed.

Meanwhile, the companies submitted a proposed memorandum of understanding (MOU) agreeing to contribute $50,000 annually to the village over five years. The village decided to hold off implementing the tax in the hopes of reaching an agreement with the companies similar to what is in place in neighboring East Liverpool, “and if we can’t come to an agreement, we’ll begin enforcing it,” Murray said.

East Liverpool City Council was in the process of imposing a 10-cents-per-ton hauling tax in 2014 when eight companies operating in the city agreed to donate $50,000 a year, and the fee was never enacted.

Larry Heck of Pier 48 Stevedoring — one of the tenants at the port authority’s industrial park — said the companies want language included guaranteeing the money they contribute will be spent for the intended purpose, which is repairing the truck routes.

“We’re trying to be good neighbors … We’re willing to work with the village to help with the streets,” Heck said

Wellsville voters last November approved a 0.5 percent increase in the village’s 1 percent income tax with the understanding the additional money would be split 50/50 between the police department and street repairs. Less than three months after the tax increase took effect, council changed the split, with the police department getting 75 percent.

Murray said they oppose placing any restrictions on how the hauling tax money is spent, noting the village has to pay for keeping the same streets free of snow and ice during the winter and police also patrol the areas where the businesses are located. “We have to keep those streets safe too. They’re trying to tell us how we can spend the money, and I don’t think that’s right,” she said,

Murray also objected to a proposed provision the companies wanted in the MOU that would prevent the mayor from lowering load restrictions on the truck routes. She said this would prevent her from taking action during an emergency.

“They’re not going to tell me how to run the village,” Murray said. “I’m not relinquishing my duties as mayor.”

As mentioned above, Wellsville already levies an income tax on people working in the village as well as their employers, which is charged based on the company’s net profits. Combined income taxes paid to the village by these companies are not public record, but village officials reported in 2016 (when the income tax was 1 percent) the companies had paid a combined $40,000 through the first eight months of the year. Murray said those same companies only paid a combined $30,000 in 2017, “and they want to know why I want the bulk fee” to help maintain the streets.

The trucks going to and from Wellsville Terminal and Marathon have been identified as the chief culprits. The trucks bound for the port authority exit off state Route 7 and have to travel a 0.4 mile stretch of Clark Avenue, which the port authority spent $536,000 to upgrade five years ago.

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