Jasinski: Democrat Transportation Budget Agreement raises gas tax, license tab fees, & sales taxes and imposes a new delivery tax as part of $3.77 billion in tax increases

The Minnesota Senate on Sunday approved a transportation budget agreement that imposes $3.77 billion in tax increases on Minnesotans, including a gas tax increase tied to inflation, license tab fee increases, delivery fees for mobile and internet purchases, and a sales tax increase. Despite the tax increases, the bill contains $0 in additional ongoing dollars for state roads, outside of Infrastructure Investment and Jobs Act funding and agency funding to maintain current service levels.

“We have a $19 billion surplus. There is absolutely no reason to raise taxes, period,” said Senator John Jasinski (R-Faribault), the lead Republican on the Senate Transportation Committee. “A gas tax tied to inflation, a new fee on deliveries, hiking tab fees, and increasing the cost of buying a new vehicle will hit every single Minnesotan at all income levels. Even worse, it will inflict particular pain on low-income families and people living paycheck to paycheck. We have plenty of money to fix our roads and bridges throughout the state; there is no need to keep coming after Minnesota taxpayers for more, especially since they are already getting hammered by new taxes and fees throughout the Democrats’ budget.”

Despite the numerous tax increases, Senator Jasinski was able to successfully add several priorities to the bill that he has worked on and authored for years, including:

  • Dedicated road funding for small cities and townships
  • $18 million more for local road improvements program
  • $18 million more for local bridges
  • $153 million in one-time funding for Corridors of Commerce
  • $200 million from Trunk Highway Bonds in one-time funding for state road construction
  • Allowing for a portion of driver’s education to be conducted online
  • Additional funding for deputy registrars

OTHER CONTROVERSIAL PROVISIONS IN THE BILL

  • Nearly $200 million to build the Northern Lights Express passenger rail between the Twin Cities and Duluth
  • $50 million for the Blue Line rail to northwest suburbs
  • A requirement to consider greenhouse gas emissions in transportation projects, which will make it almost impossible for new road projects to be built
  • $976,000 per biennium in ongoing funding for “intercity passenger rail planning and project management”
  • A study to expand the Northstar line to St. Cloud or even Fargo/Moorhead
  • A working group to consider having traffic signals prioritize light rail and buses
  • Deletes the ban on state money going to Southwest Light Rail operations and maintenance