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Interlocal agreement between Missoula City and County defines gas tax collection and distribution responsibilities

Posted at 10:18 PM, Sep 16, 2020
and last updated 2020-09-17 00:18:36-04

The City of Missoula and Missoula County passed an interlocal agreement on Wednesday outlining how the two entities will enforce the new 2 cent gas tax.

The gas tax which was approved in June and took affect yesterday is estimated to bring in $400,000 annually from tourists and 1.2 million dollars in total each year.

The interlocal agreement outlines how money made from the tax will be distributed between the city and county evenly and how it will be managed.

Money made from the tax will go exclusively towards road maintenance and construction projects.

"The money has to be used for construction reconstruction maintenance or repair of public streets and roads. It’s fairly broad, we anticipate using this in part for street maintenance and in part into our capital improvement," City of Missoula Public Works Director Jeremy Keene said.

Money will be distributed to different projects based of the public works department budget process and public works is also conducting a study on which areas around town need the most attention.