There is a fear of losing our share of the revenue. Ciccone called for changes in state taxation of pipeline facilities that would allow Superior to tax a company like Lakehead Pipeline. The state taxes property of railroads, utilities, airlines and pipeline companies. The money then gets redistributed as state aid, said Ciccone, but oftentimes a municipality receives less from the state than if the municipality taxed the facility. The state deals with the issue with a individual valuation of railroads and pipeline facilities by assessing the property s total value then returning an amount apportionable to the property.
Pipelines transferring oil to vessels is valued separately, however.
A change is the statute is appropriate and the city would be better able to serve its citizens with a direct tax on property within the city rather than through state revenue sharing, said Ciccone. Bayfield Mayor Larry MacDonald said having a population of 700, but operating as a city of several thousand has been hurting Bayfield s residents. We don t benefit from shared revenues, said MacDonald. Less than 5 percent of our budget is from shared revenues. I would like a local option tax.