Staff: Elms Nickel proceeds must be used for capital projects; two statute sections differ in scope

Aug 31, 2026

A staff member told the Washington County board that Section 1 of the local-option fuel tax statute applies broadly (including diesel) while Section 2 applies only to gasoline and is more restrictive; staff stressed proceeds are intended for capital expenditures, not routine salaries.

The full story

A staff member explained the statutory framework for local-option motor fuel taxes during discussion of the "Elms Nickel," telling the board the tax is intended for capital expenditures and that two distinct statutory sections affect permitted uses.

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