With broad bipartisan support, the Minnesota Senate passed 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.

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 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. “This bill also provides vital ongoing funding for townships and small cities to repair local roads and bridges, which will help reduce property taxes. 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.”

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, $303.596 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.

Other notable provisions authored by Sen. Howe that are included in the bill:

• Creation of Air Medal license plates for Veterans
• Expansion of accepted documents for receiving a “Veteran” designation on Minnesota drivers’ licenses 
• Increase in fees for electric vehicle registration to ensure parity across all vehicle owners and their contributions to transportation funding
• Funding for additional acceleration lanes at specific intersections on Trunk Highway 23