The Minnesota Senate today approved a bill dedicating 100% of auto parts sales tax revenue to roads and bridges. The legislation represents a ​​massive new investment in 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. 

“This is a common-sense solution to an ongoing problem,” Sen. John Jasinski (R-Faribault), vice-chairman of the Transportation Committee said. “We can continue rebuilding our transportation infrastructure using existing money; we do not need to ask Minnesotans to pay higher gas taxes or tab fees to get us where we need to be.”

“Folks in Greater Minnesota have unique transportation needs,” Sen. Jasinski added. “The lack of safe, reliable roads often creates extra headaches for residents of small cities and towns. That’s why I have always been a strong advocate for specific transportation funding for small cities and townships. Setting aside a portion of auto parts sales tax revenue will help us be sure that these communities get the support they need for their road and bridge projects. This will create a historic level of ongoing, dedicated funding for areas that need it most.”

The bill also includes a provision authored by Sen. Jasinski that provides special carve-outs for small cities and townships, each of which would receive an ongoing, dedicated funding stream of 7% of auto parts sales tax revenue for their road needs.

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.
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.