The Minnesota Senate Transportation Committee this week approved a comprehensive transportation bill that provides more than $5.7 billion in transportation funding, including more than $4.32 billion for roads and bridges over the next five years, without a gas tax, mileage tax, sales tax, or license tab fee increase. Included in the bill is language championed by Senator Jeff Howe (R-Rockville) that dedicates 100% of revenue from auto parts sales taxes to roads and bridges.

“The current flat amount of funding for our roads and bridges is insufficient, and if we want to keep up with maintaining roads, highways, and bridges, we need an adjustment to ensure the fund grows over time,” said Sen. Howe. “Minnesotans count on these roads in their daily lives, and we need to ensure roads across the state get the steady funding they’ve needed.”

Under current law, every year a flat amount of $145.644 million of the auto parts sales tax is taken from the general fund and given to the Highway Users Tax Distribution Fund (HUTDF), which is less than 50% of the amount collected from the auto parts sales tax. This HUTDF funding supports highways, roads, and streets across the state. This bill would adjust that amount to 100% of auto parts sales tax funds, so that the Transportation fund continues to grow over time. 86% of funding would go to HUTDF, 7% would go to the Small Cities Account, and 7% would go to the Townships Road Account.

The bill continues Senate Republicans’ strong commitment to roads and bridges by providing an additional $982.98 million for state roads and bridges, $154.5 million for Corridors of Commerce, $303.59 million for County State Aid Highways, $79.75 million for Municipal State Aid Highways, and $69.1 million for town roads and $69.01 million for small cities assistance.