The Minnesota Senate Transportation Finance and Policy Committee on Thursday passed a comprehensive transportation budget that invests billions over the next two years in the state’s transportation infrastructure – without a gas tax, mileage tax, sales tax, or license tab fee increase. Include in this omnibus bill are a number of bills authored by Senator Jeff Howe (R-Rockville).

Specifically included is language that would increase the amount of Auto Parts Sales Tax allocated towards roads and bridges. Currently, a flat amount of $145.6 million is taken from the auto parts sales tax that is collected and given to the Highway Users Tax Distribution fund, which supports highways, roads, and streets across the state. This language would adjust that amount to 60% of auto parts sales tax funds, allowing the amount for Transportation funding to grow as the costs of automotive parts increases. The bill also dedicates money to small cities and town roads.

“The current flat amount of transportation funding is just not sufficient,” said Sen. Howe. “We need to keep up with maintaining our roads, highways, and bridges, and that means adjusting the funding source.”

Also in the budget is an increase to the surcharge for electric vehicles and plug-in hybrid cars. Specifically, the surcharge for electric vehicles will increase from $75 to $229, and a new surcharge of $114.5 would be introduced for plug-in EV’s. EV motorcycle owners would also receive a decrease in surcharges, from $75 down to $46. These charges would be linked to the State gas tax, and if that tax fluctuates up or down, the EV surcharge fees would follow suit. 

“The bottom line is every single citizen should be contributing funds to our roads and bridges, regardless of what vehicle they choose to purchase,” continues Sen. Howe. “Our roads are in constant need of attention and repairs, and that requires funding. We all use these roads and contribute to their wear-and-tear, and knowing that gas taxes are potentially regressive, this language remedies that possibility.” 

Another key bill included prohibits local governments from unilaterally creating bike paths in any place that would eliminate or force relocation of disability parking spots. 

“I’m really happy to see these bills factored into the Transportation budget. Minnesotans depend on a robust transportation system and these three bills help fund and enhance that very system,” finished Sen. Howe.