Clay County adopts wheel tax ordinance after public hearing and legal review

The Clay County Board of Commissioners set and completed the ordinance process for a county wheel tax in early 2015. Following a public challenge and legal review, the Board repealed an earlier ordinance and set a new ordinance in motion; on March 3, the Board adopted Ordinance #2015-01 imposing a county wheel tax by a recorded vote of 5‑0 after the required second reading.

Residents spoke during public hearings about the fairness and local impacts of the tax. Paul Hasse challenged the county's approach and said the Board was “using political bullying” by saying the state might withhold funds from counties that do not adopt a wheel tax. The Board discussed traffic counts and road-use rationale; Commissioner Manning noted that “approximately 42% of the workforce in Vermillion comes from outside of the city,” a point used to justify road funding focus. State's Attorney Teddi Gertsma advised the Commission on procedural requirements, citing SDCL 7‑18A‑6 and noting the second-reading vote must be taken by yeas and nays.

The ordinance process and the hearings were recorded in the county minutes, and the Board scheduled subsequent readings and public hearings as required. The State's Attorney's Office also indicated it would provide an opinion to address legal challenges raised by residents.