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Box Elder presentation urges redirecting contractor excise tax to repair roads damaged by Ellsworth AFB construction
Summary
Rob Timm, representing an Ellsworth excise tax coalition, told the Box Elder City Council the group is drafting state legislation to set aside a portion of contractor excise tax revenue to create a grant fund estimated at about $8 million for local roadway repairs tied to Ellsworth Air Force Base construction.
Rob Timm, government affairs director for the Ellsworth excise tax coalition, told the Box Elder City Council on Jan. 6 that the coalition is preparing draft legislation to divert a share of the state's contractor excise tax into a time-limited grant fund to repair roadways damaged by construction at Ellsworth Air Force Base. "We're looking for about $8,000,000," Timm said during a presentation to council members and staff.
The coalition frames the proposal as a targeted redirection of existing revenue rather than a new tax. Timm said roughly $1.4 billion in construction work is under way at Ellsworth and that as much as $2 billion is expected, noting that the National Defense Authorization Act for 2026 included about $378 million of approved construction there. The coalition's estimate—about 2% of that identified construction value—would seed a regional grant program distributed to affected jurisdictions for roadway repairs and maintenance.
Why it matters: council members and presenters said local roads are bearing the traffic burden from base construction, while much of the contractor excise tax flows to the state. Supporters told the council the fund would be time-limited and disbursed to jurisdictions based on identified projects and local need; Mead and Pennington counties and the city of Rapid City have already signaled support, Timm said.
What council heard: Timm described outreach to state lawmakers and agencies. He said Representative Drew Peterson (Salem) had begun outreach among East River legislators and that Senator Duhamel has been an early supporter. Timm said the Legislative Research Council had reviewed an early draft and that the state Department of Transportation and the governor's office had been briefed; he named Joel Junt at the state DOT as an interested reader of the draft.
Local reaction included comparisons with other states. One attendee recalled a Texas program that maintains a dedicated fund for communities near military installations. Another speaker, identified as Curry, said the city bears much of the base's local costs while statewide revenues accrue elsewhere: "The state gets all the benefits from the base being here, but this city bears the burden," Curry said, summarizing the coalition's case for targeted local relief.
Next steps: Timm told the council the coalition is refining language with legislative sponsors and plans further briefings and testimony; the council passed a resolution of support during committee and coalition representatives said they would distribute draft legislation and talking points to local officials when they are ready.
The proposal does not yet change state law; it remains a pending legislative initiative that must pass the Legislature and be implemented by state agencies before any funds would be distributed.
