ST. PAUL – Today, House Democrats are expected to approve their Transportation bill (HF 1555) which increases the gas tax by 20 cents per gallon – a 70% increase – and in total raises taxes by more than $4 billion dollars over four years.
“There’s no way around it: a 20-cent per gallon gas tax increase would make living and working in Minnesota more expensive,” said Rep. Barb Haley (R-Red Wing). “We demonstrated last session that transportation infrastructure needs can be met without further burdening taxpayers. With a billion dollar surplus and a dedicated revenue source, I don’t believe lawmakers should be asking Minnesotans to pay more at the pump.”
In addition to the 20 cent per gallon increase, which would give Minnesota the fourth highest gas tax in the country, the House Democrat Transportation bill increases the vehicle registration tax, the metro sales tax, and the new vehicle sales tax. In total the bill will increase taxes on Minnesotans by a combined $2.3 billion dollars. The bill also transfers statutorily dedicated auto parts sales tax funds — $417 million in 2020-21 – into the general fund. This reverses the major investments House& Senate Republicans made during the last biennium to fund road and bridge infrastructure without a gas tax increase.