In a move that surprised no one, Gov. Mark Dayton proposed to solve a Minnesota problem by raising gas taxes. Dayton’s proposal to apply a sales tax to wholesale gasoline, raise vehicle registration fees and raise the sales tax in the metro area will disproportionally impact poor and middle class families.
“Gov. Dayton is showing once again he is either unwilling or unable to set priorities in the state budget, and instead resorts to massive new taxes on lower and middle class Minnesotans,” said Senate Republican Leader David Hann (Eden Prairie). “The legislature should take the time to adequately define our transportation needs and then come up with solutions that actually address it, without raising gas taxes.”
“The minute working families begin to see some relief from high gas prices, Governor Dayton is willing to take that money right back out of their checkbook by implementing the highest gas tax in the Midwest.” added Senator John Pederson (St. Cloud). “We think we can show the Governor how to increase funding for roads and bridges across the state without raising gas taxes and we will come forward with specific ideas as the session progresses.”
Gov. Dayton continues to misquote his own Transportation Finance Advisory Committee report from 2012 saying it will take $6 billion over the next ten years just to maintain our current roads and bridges. In fact, the TFAC report outlines three scenarios for transportation funding over the next twenty years.
Scenario One includes the baseline revenue for the next twenty years at $18 billion. Scenario Two includes an additional $5 billion over twenty years to “maintain current performance.” Scenario Three includes an additional $12 billion for an “economically competitive/world class” transportation system.
TFAC report by MN Senate Transportation & Public Safety Committee & Finance Division