In a sudden shift Friday, the Minnesota Senate revived the possibility of raising the gas tax for roadwork and a metropolitan area sales tax for mass transit projects by making over what had been a stand-pat transportation finance plan.
After backing off a proposed gas tax increase in the face of opposition from Gov. Mark Dayton, state Senate Democrats on Wednesday proposed an alternative in the form of a new sales tax on fuel sales at the wholesale level as a way to raise money for road and bridge projects.
Democratic lawmakers who lead House transportation panels are seeking a menu of transportation tax and fee hikes including a five-cent increase in the state gas tax.
Gov. Mark Dayton said Wednesday he opposes increasing the state’s gas tax “at this time,” putting him at odds with the man he appointed to lead Minnesota’s Department of Transportation.
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.