ST. PAUL – Legislation authored by Rep. Jeff Howe, R-Rockville, which dedicates revenue from existing sales taxes on auto parts, is a key component in a new 10-year House Republican transportation funding plan.
In all, the Road and Bridge Act of 2015 House Republicans unveiled Monday would put $7 billion toward roads and bridges over the next decade, repairing or replacing an estimated 15,500 lane miles and 330 bridges without a tax increase.
A bill Howe authored, H.F. 215, is incorporated into the multi-faceted package, placing sales tax revenue already paid on everything from spark plugs to motor oil into what would be a new pot called the Transportation Stability Fund. Estimates show Howe's proposal would generate nearly $250 million per year for work on roads and bridges – and even more in the future.
The concept, Howe said, was something of a revelation as he was wrenching on his 18-year-old vehicle last fall.
"I was replacing a rim on the Suburban and the thought just popped into my mind," Howe said. "If I replace this rim and keep this Suburban on the road, the state is losing out on taxes that would have been paid if I just decided to get a new vehicle. Cars are running so much longer today than they used to, so why not dedicate taxes we already pay on auto parts to help support our roads and bridges? This is a way we can prioritize funding for roads and bridges without resorting to regressive options such as raising the gas tax."
Other components in the Road and Bridge Act of 2015 include:
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Metro Capital Improvements Account – revenue from existing sales tax on rental vehicles
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Small Cities Account – revenue from existing rental vehicle tax
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Greater Minnesota Bus Services Account – revenue from 50 percent of existing Motor Vehicle Lease sales tax
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Suburban County Highway Account – revenue from 50 percent of existing Motor Vehicle Lease sales tax
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