News

Group recommends higher gas tax

Photo: George Doyle, Photos.com

Nov 30, 2012 at 4:18 pm

ST. PAUL, Minn. (KNSI) A transportation group created by Gov. Mark Dayton is calling for higher gas taxes, vehicle registration fees and Twin Cities sales taxes to raise more than $50 billion for road and transit over the next two decades.

The Minnesota Department of Transportation released the advisory group's recommendations Friday.

The recommendations include two options for raising the gas tax to bring in $15.2 billion — an up-front hike of 10 cents followed by incremental annual increases or an immediate 3.5-cent increase with yearly increases after five years.

Another $4 billion for transit would come from increasing the sales tax in five Twin Cities counties by a half percentage point, or a nickel on a $10 purchase.

Raising vehicle license tab fees roughly 10 percent would bring in another $1.1 billion.