Senate Republicans and labor and business leaders today proposed a massive new investment in roads and bridges using existing revenue. The proposal would direct 100% of tax revenue from the sale of auto parts to rebuild Minnesota’s transportation infrastructure, allowing the state to fund roads and bridges without raising gas taxes, tab fees, or sales taxes, and without adding a new mileage tax on commuters.
Dedicating 100% of auto parts sales tax revenue would provide more than $314 million for roads and bridges in 2023, $324 million in 2024, and $336 million in 2025, according to a nonpartisan Senate Fiscal analysis.
“Nearly every aspect of our economy relies on safe and dependable road and bridge infrastructure,” said Sen. Eichorn (R-Grand Rapids). “We don’t need to raise taxes to fund critical infrastructure. Instead, we can dedicate existing revenue to meet our transportation needs and help power our economy.”
“We (business and labor) are here together because this is what our industry looks like working together both at the project level and here at the policy level to maximize investments in infrastructure that benefit all Minnesotans,” said Tim Worke, CEO, Associated General Contractors of Minnesota.
“These state investments not only mean solid roads and bridges to move people and goods, they also mean family-sustaining careers for Minnesotans statewide,” said Jason George, Business Manager, Operating Engineers Local 49.
“Businesses across the state depend on a safe, reliable, and efficient transportation system to get their goods to market and their customers and employees to their door. But this requires investment – sustained investment. We support proposals like this to help ensure the long-term stability and viability of our transportation system,” said Bentley Graves, Director of Health Care and Transportation Policy at the Minnesota Chamber of Commerce.
“Transportation projects require years of planning to make sure they’re done right. Our contractors need reliable, long-term funding to have the confidence to make workforce and supply investments now for projects that won’t break ground for months or years,” said Ryan Pecinovsky, North Central States Regional Council of Carpenters.
In 2017, Republicans successfully led the effort to redirect a set portion of revenue from auto parts sales taxes to roads and bridges. In 2021, Republicans aimed to convert the set amount to an equivalent percentage, so the figure would increase each year along with inflation. Republicans also secured $7.8 billion for state roads, including construction, development, and maintenance.