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Pennington County backs letter supporting use of contractors' excise tax revenue for roads near Ellsworth

January 07, 2026 | Pennington County, South Dakota


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Pennington County backs letter supporting use of contractors' excise tax revenue for roads near Ellsworth
Representatives from Box Elder and Meade County presented a proposal at the Jan. 6 Pennington County meeting to direct a portion of the state's 2% contractors excise tax generated by Ellsworth Air Force Base construction into a fund for off-base roadway repairs.

Rob Timm, government affairs director for Box Elder, told the commission that projected base-related construction totals could be large (millions to billions over time) and estimated local roadway repairs tied to base construction would cost roughly $8 million. He outlined a draft legislative approach that would place funds in a Department of Transportation-held account to be distributed as grants for the identified road segments. Timm said he is coordinating with state legislators and that a letter of support from Pennington County would help the proposal's progress in Pierre.

Commissioners discussed scope, timing and the legislative strategy. Commissioner Durer moved that the board approve a letter endorsing creation of a contractor's-excise rebate fund derived from Ellsworth construction projects for associated roadway repairs; the motion passed. Several commissioners volunteered to testify before the legislature and county staff will distribute talking points and the draft resolution when ready.

The board clarified the action was a letter of support (not a formal resolution) to aid local coordination ahead of the 2026 legislative session. The letter and any future formal resolutions would be circulated to partner jurisdictions and legislative contacts.

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