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State Representative Tom Hackbarth
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-2439
For more information contact: Austin Bleess 651-296-5529
NEWS COLUMN
MORE THAN JUST A GAS TAX
By Tom Hackbarth
State Representative
Minnesota needs to do something to improve transportation. Most people will agree with that. How should we fund transportation is where people split. This week the House passed what people called “the gas tax bill”. But it’s a sad fact that it was much more than a gas tax increase.
If the bill had only been a gas tax increase I would have supported it. That is the best way to fund roads and bridges, as the gas tax is dedicated to putting pavement on the roads. In fact most people would be in favor of a standalone gas tax increase bill.
It wasn’t just a 5 cent gas tax increase. This bill had too many other things in it.
Included in the bill is a 2.5 cents per gallon gas tax increase that is not talked about. First off there is no such thing as a half a cent tax increase, it will be rounded up. The “2.5” cent increase puts the total gas tax increase at 7.5 cents. That will put us at 7th highest in the nation.
The bill contained a sales tax increase. That will affect people who don’t even drive cars. If you buy a candy bar at the grocery store you’ll pay an extra sales tax to pay for roads. If you go to the store and come home with new gardening tools you’ll pay an extra sales tax for roads. We pay enough in taxes; we don’t need to raise the sales tax for yet another reason. And only 25% of the new sales tax increase would go to highways.
Tab fees will increase under this bill. The current caps on vehicle registration fees is being removed, so that when you buy a new car the sky is the limit on how much it will cost you for registration fees. There are also fee increases on your drivers’ license and license plates.
It also increases the fees on a rental car. That fee would go up to 5%, with only a portion of those fees going to the state. In the metro area there will be a wheelage tax on your car. That will cost you an extra $5 - $10 on every car you own. Funny, but they didn’t mention that on the news. Come to think of it most places didn’t mention any of the fee increases or sales tax hikes.
The Governor has promised to veto this bill. It will come back to the legislature and there will be an attempt to override the veto. With less than a week to go this legislative session it remains to be seen if a transportation bill will get passed. Many projects need funding, and many roads need repair. We need to work to pass a fiscally responsible funding plan for transportation.
News Items
- Dems propose to spend and tax - (Posted: Mar 22 2013 12:00AM)
- Statewide insurance plan makes headlines - (Posted: Mar 15 2013 12:00AM)
- Bill is the poster for government waste - (Posted: Mar 7 2013 12:00AM)
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