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Increase, Gas Tax Reimbursement for 2011
by Cameron Hanson
Bolstered by enough data to support a $5 snowmobile registration Meeting
Nov. 20 with a 14-slide Power Point presentation under his arm and his fingers
crossed.
As the organization’s new president, the retired corporate executive had
mentally prepared to persuade Iowa snowmobilers to once again reach into
their pockets. One straw poll later and he found himself breathing a little easier.
The ISSA general membership surprised the entire leadership team by not
only supporting a registration fee increase, but with every arm outstretched in
the meeting room, they unanimously indicated they were willing to pay twice
the current $15 fee.
“I think what you’re telling me is it’s not a lot of money to spend,” Burger said,
summing up the feedback from the group. “If we have to spend a little more
money to build a better program, we will do it. I’m really tickled that you guys
understand the pickle we’re in and are willing to step up to the plate.”
The ISSA Board of Directors made it official the following morning and
endorsed a $30 annual snowmobile registration. The ISSA’s Emergency
Funding and Legislation Committee (EFC) is now charged with finding a
sponsor for the bill at the State Capitol in Des Moines when the Legislature
convenes in January.
The last fee increase came in 2005 when snowmobile registration fees went
from $25 every two years to $15 per year. Burger remembers the challenges
well. “Snowmobilers then were asking, ‘Why do we have to pay more?’,” he
recalled. “Until I really sat down and looked at these kind of expenses, I really
didn’t know what to think. What I’m trying to present to you today is the dilemma
that we’re in by running a state program at half capacity.”
Five years ago, snowfall was sporadic at best in Iowa, and grooming
operations did not deplete the bottom line as much as they do now. Coming off
a season of near-record snowfall in 2009-10, the state snowmobile program is
now feeling the pinch.
“With a great year for snowmobiling, you are going to have a lot more
breakdowns and a lot more problems with the groomers, and that costs
money,” Burger said.
With 30,798 snowmobiles registered in Iowa, registration fees generate
$461,970 in revenue. By Administrative Rule, that amount is split 50-50
between the Iowa Department of Natural Resources (IDNR) and what is
referred to as the “local side,” i.e. snowmobile clubs.
The IDNR portion accounts for program administration, including office staff,
law enforcement and safety training, and the local side is earmarked for trail
maintenance expenses, signage, trail insurance and groomer purchases.
For the 2010-11 season alone, Iowa snowmobile clubs submitted grant
requests totalling $510,000, more than the program’s combined revenue. As a
result, the ISSA/IDNR Review and Selection Committee was forced to cut the
grant requests by two-thirds, spreading approximately $180,000 among 54
snowmobile clubs.
At the General Membership Meeting, held during the 37th Annual ISSA
Convention in Storm Lake, some called into question the amount of money
going to the IDNR. In fact, Past ISSA President Terry Durby acknowledged in
October that comments from the 2010 Economic Impact Study survey on
snowmobiling in Iowa reflected a similar sentiment.
“As the ISSA board, we trust the IDNR, but our survey of our membership says
otherwise,” Durby said then. “I want to reassure everybody that the IDNR is
working well with us. They are paying for more things if the local side does not
have enough money for it.”
“The IDNR has gone out and funded trail signs, they have helped with the
insurance and they have helped with groomer purchases,” Burger responded
at convention. “The money has stayed in the program. We have a great use of
funds and have a great accounting of funds.”
At its current funding levels, the state snowmobile program spends about $92
per mile of snowmobile trail. Compare that to $409 in Wisconsin or $1,499 in
Michigan. Doubling the snowmobile registration fee in Iowa would bring the
fund up to $923,340 annually, or $185/mile. Even a $10 fee increase would
raise it to $769,950 each year.
“We really need to take a good look at ourselves and the amount of money we
are going to spend for registration fees if we really want to have great
snowmobiling here,” Burger said. “If we want to do the kinds of things you want
with trail development and groomer purchases, better signs, etc., the fact of the
matter is we are going to have to pay the price. Nobody else is going to do this
for us.”
Another revenue source the ISSA is pursuing is reimbursement of taxes on the
fuel consumed in snowmobiles. The EFC estimates that between 18 to 19
cents of every gallon sold to a snowmobiler could return to the snowmobile
program.
Based on a 60-gallon-per-snowmobile average from the economic impact
study, the ISSA is estimating a boon of $331,200 to the state snowmobile
coffers. Compare that to the $5.46 million generated in Minnesota.
The EFC has patterned its proposal after the marine fuel tax reimbursement
which is already on the books. “They already give it to the boating industry. Why
can’t we get our share?” Burger asked. “We want to go after the gas tax, but we
know it will be an uphill battle.”
Over the next couple of months, members of the EFC will be travelling to
snowmobile club meetings throughout the state, making its sales pitch for
increased registration fees and the fuel-tax reimbursement. Working closely
with ISSA lobbyists Mike Heller and Paula Feltner, they will also be collecting
signatures of support so they can show the petitions to legislators and
demonstrate to them that snowmobilers are not afraid to pay to play.
“Undoubtedly there is going to be a great deal of discussion on both the gas
tax and registration fees in the near future,” said Burger, now the ISSA’s
president. “We will be seeking both your input and your active involvement in
pursuing increased financial support for snowmobiling in Iowa.”
by Cameron Hanson
Bolstered by enough data to support a $5 snowmobile registration Meeting
Nov. 20 with a 14-slide Power Point presentation under his arm and his fingers
crossed.
As the organization’s new president, the retired corporate executive had
mentally prepared to persuade Iowa snowmobilers to once again reach into
their pockets. One straw poll later and he found himself breathing a little easier.
The ISSA general membership surprised the entire leadership team by not
only supporting a registration fee increase, but with every arm outstretched in
the meeting room, they unanimously indicated they were willing to pay twice
the current $15 fee.
“I think what you’re telling me is it’s not a lot of money to spend,” Burger said,
summing up the feedback from the group. “If we have to spend a little more
money to build a better program, we will do it. I’m really tickled that you guys
understand the pickle we’re in and are willing to step up to the plate.”
The ISSA Board of Directors made it official the following morning and
endorsed a $30 annual snowmobile registration. The ISSA’s Emergency
Funding and Legislation Committee (EFC) is now charged with finding a
sponsor for the bill at the State Capitol in Des Moines when the Legislature
convenes in January.
The last fee increase came in 2005 when snowmobile registration fees went
from $25 every two years to $15 per year. Burger remembers the challenges
well. “Snowmobilers then were asking, ‘Why do we have to pay more?’,” he
recalled. “Until I really sat down and looked at these kind of expenses, I really
didn’t know what to think. What I’m trying to present to you today is the dilemma
that we’re in by running a state program at half capacity.”
Five years ago, snowfall was sporadic at best in Iowa, and grooming
operations did not deplete the bottom line as much as they do now. Coming off
a season of near-record snowfall in 2009-10, the state snowmobile program is
now feeling the pinch.
“With a great year for snowmobiling, you are going to have a lot more
breakdowns and a lot more problems with the groomers, and that costs
money,” Burger said.
With 30,798 snowmobiles registered in Iowa, registration fees generate
$461,970 in revenue. By Administrative Rule, that amount is split 50-50
between the Iowa Department of Natural Resources (IDNR) and what is
referred to as the “local side,” i.e. snowmobile clubs.
The IDNR portion accounts for program administration, including office staff,
law enforcement and safety training, and the local side is earmarked for trail
maintenance expenses, signage, trail insurance and groomer purchases.
For the 2010-11 season alone, Iowa snowmobile clubs submitted grant
requests totalling $510,000, more than the program’s combined revenue. As a
result, the ISSA/IDNR Review and Selection Committee was forced to cut the
grant requests by two-thirds, spreading approximately $180,000 among 54
snowmobile clubs.
At the General Membership Meeting, held during the 37th Annual ISSA
Convention in Storm Lake, some called into question the amount of money
going to the IDNR. In fact, Past ISSA President Terry Durby acknowledged in
October that comments from the 2010 Economic Impact Study survey on
snowmobiling in Iowa reflected a similar sentiment.
“As the ISSA board, we trust the IDNR, but our survey of our membership says
otherwise,” Durby said then. “I want to reassure everybody that the IDNR is
working well with us. They are paying for more things if the local side does not
have enough money for it.”
“The IDNR has gone out and funded trail signs, they have helped with the
insurance and they have helped with groomer purchases,” Burger responded
at convention. “The money has stayed in the program. We have a great use of
funds and have a great accounting of funds.”
At its current funding levels, the state snowmobile program spends about $92
per mile of snowmobile trail. Compare that to $409 in Wisconsin or $1,499 in
Michigan. Doubling the snowmobile registration fee in Iowa would bring the
fund up to $923,340 annually, or $185/mile. Even a $10 fee increase would
raise it to $769,950 each year.
“We really need to take a good look at ourselves and the amount of money we
are going to spend for registration fees if we really want to have great
snowmobiling here,” Burger said. “If we want to do the kinds of things you want
with trail development and groomer purchases, better signs, etc., the fact of the
matter is we are going to have to pay the price. Nobody else is going to do this
for us.”
Another revenue source the ISSA is pursuing is reimbursement of taxes on the
fuel consumed in snowmobiles. The EFC estimates that between 18 to 19
cents of every gallon sold to a snowmobiler could return to the snowmobile
program.
Based on a 60-gallon-per-snowmobile average from the economic impact
study, the ISSA is estimating a boon of $331,200 to the state snowmobile
coffers. Compare that to the $5.46 million generated in Minnesota.
The EFC has patterned its proposal after the marine fuel tax reimbursement
which is already on the books. “They already give it to the boating industry. Why
can’t we get our share?” Burger asked. “We want to go after the gas tax, but we
know it will be an uphill battle.”
Over the next couple of months, members of the EFC will be travelling to
snowmobile club meetings throughout the state, making its sales pitch for
increased registration fees and the fuel-tax reimbursement. Working closely
with ISSA lobbyists Mike Heller and Paula Feltner, they will also be collecting
signatures of support so they can show the petitions to legislators and
demonstrate to them that snowmobilers are not afraid to pay to play.
“Undoubtedly there is going to be a great deal of discussion on both the gas
tax and registration fees in the near future,” said Burger, now the ISSA’s
president. “We will be seeking both your input and your active involvement in
pursuing increased financial support for snowmobiling in Iowa.”