abc
QUICK LINKS:

Gas Tax Increase Proposed For 2014

Updated: 02/19/2014 11:00 AM
Created: 02/18/2014 6:56 PM KSTP.com
By: Tom Hauser

A transportation advocacy group called "Move MN" is making a move to increase the gas tax.  However, it wouldn't be your traditional per gallon gas tax increase. Instead, the group proposes a 5 percent sales tax on wholesale fuel so tax revenue would grow as prices increase.

Unlike a per-gallon fuel tax on consumers at the pump, wholesalers would pay the 5 percent tax on the fuel supplies they buy. 

"Going forward then we would have a system that would keep up with inflation, which the per gallon tax never will," says Margaret Donahoe of the Minnesota Transportation Alliance. She testified before a joint House-Senate Transportation Committee Tuesday afternoon.   

A similar proposal was debated in the Minnesota Senate last year. GOP Senator Dave Osmek says testimony then indicated it would increase the price of gas 15 cents per gallon after wholesalers pass the tax on to consumers. 

"This 15 cents per gallon is going to be passed along to the customer," says Osmek, "whether that's a residential customer, whether that's a trucker. It doesn't matter who it is."

The "Move MN" proposal also includes a three-quarter cent increase in the metro area sales tax to raise money for mass transit. The proposal will likely get additional hearings after the Minnesota Legislature convenes next week.


Dense Fog Advisory

MN AREAS AFFECTED: Anoka; Benton; Carver; Chisago; Dakota; Douglas; Goodhue; Hennepin; Isanti; Kanabec; Kandiyohi; McLeod; Meeker; Mille Lacs; Morrison; Pope; Ramsey; Scott; Sherburne; Stearns; Stevens; Todd; Washington; Wright
Expires: 11/23/2014 8:00 AM

Dense Fog Advisory

WI AREAS AFFECTED: Barron; Chippewa; Dunn; Eau Claire; Pepin; Pierce; Polk; Rusk; St. Croix
Expires: 11/23/2014 8:00 AM

Minneapolis/St. Paul

Overcast
38°
37° | 36°
  • Feels like: 31° F
  • Wind: ESE 9mph
  • Humidity: 97%
  • Sun Occasional showers possible
    44° | 25°
  • Mon Windy with morning snow showers
    25° | 7°
  • Tue More sun than clouds
    24° | 12°
  • Wed Snow showers early
    20° | 6°

Video

KSTP NEWS