ST. PAUL – House Democrats are expected to approve Monday 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.
“Increasing the gas tax by 20 cents per gallon would significantly raise the cost of living and driving in Minnesota,” said Rep. Sandy Layman (R-Cohasset). “Last session, we proved meaningful investments in our state’s roads and bridges can be made without cutting into family budgets with a gas tax hike. With a dedicated revenue source and a state budget surplus of over $1 billion, asking Minnesotans to pay more at the pump should be out of the question.”
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 will increase taxes on Minnesotans by a combined $2.3 billion dollars. The bill transfers statutorily dedicated auto parts sales tax funds — $417 million in 2020-21 – into the general fund. This reversed the major investments House & Senate Republicans made during the last biennium to fund road and bridge infrastructure without a gas tax increase.