ST. PAUL – The Minnesota House of Representatives has approved a transportation funding package that would raise taxes and fees on Minnesotans by roughly $3.5 billion. State Representative Steve Jacob (R-Altura) voted against the plan.
“It’s unbelievable that with a $17 billion budget surplus, Democrats have decided they still want to raise taxes on Minnesotans in order to needlessly grow state government,” Jacob said.
Jacob said the biggest financial hit will be directed towards those who live and shop in the Metro Area, as a ¾ of a cent sales tax increase is expected to raise more than $2 billion.
Speaking of shopping, Jacob said if you enjoy having items delivered to your home, you will soon pay more for the privilege. The transportation proposal includes a 75-cent delivery tax that will be implemented every time someone drops off your order at your front door, whether it’s a pizza, an Amazon package, or a piece of furniture.
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.
Jacob said there are also questionable spending priorities in the proposal, such as $194 million to fund a high-speed train to Duluth.
“No one will argue that we need to maintain funding for road and bridge repair, but funding could have been utilized through our existing surplus rather than forcing tax increases on everyone,” Jacob said.
The transportation tax increase plan will now be sent to the Minnesota Senate for further debate.