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Legislative News and Views - Rep. Bjorn Olson (R)

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Thursday, April 20, 2023

ST. PAUL – State Representative Bjorn Olson (R-Fairmont) said many residents dreamed of receiving significant tax relief when it was announced Minnesota had a nearly $20 billion surplus. Instead, its expected that nearly every Minnesotan will be paying higher taxes and fees if a new transportation funding proposal approved by the Minnesota House Democrat majority becomes law.


“It is absolutely shameful to raise taxes for transportation in this financial environment,” Olson said. “It is even more embarrassing for a member of the House majority to state we don’t have enough money to fund everything when there was a $20 billion surplus.”


The largest tax increase would be leveled against shoppers in the Metro Area, as $2 billion is expected to be raised through a ¾ of a cent sales tax increase.


But Olson said rural Minnesota residents will also be forced to pay more, as the House majority wants to include a 75-cent delivery tax on items delivered to your home. Residents can expect to pay this tax for services such as pizza delivery or a drop off of their Amazon order.


Additional Democrat tax increases include raising the costs of license tab renewals, which will cost Minnesota drivers $736 million, and an increase in the Motor Vehicle Sales Tax (MVST), which would jump from 6.5% to 6.875%, and cost residents more than $215 million. It would also make Minnesota the state with the 5th highest rate when it comes to motor vehicle sales tax.


“As gas approaches $4 per gallon once again and the price of groceries continues to be high, people cannot afford to pay higher taxes,” Olson said. “To date, the House majority has proposed more than $7 billion in tax increase even though Minnesota had a historic budget surplus, which is mortifying.”