Senate Transportation Committee Chairman Scott Newman (R-Hutchinson) 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.
“The number one Republican transportation priority has always been roads and bridges,” said Sen. Newman. “We’ve successfully pumped billions into transportation infrastructure over the last several sessions, but we have an opportunity to do so much more. Directing the entirety of sales tax revenue from auto parts sales will allow us to continue rebuilding, repairing, and constructing roads and bridges without new taxes, new fees, or mileage taxes. The state has plenty of money; there’s no need to ask Minnesotans to pay more.”
“Minnesotans deserve to feel safe on the roads and highways they travel on, yet so many of our transportation corridors are falling into disrepair, and it’s absolutely imperative we fund their restoration,” said Sen. Jeff Howe (R-Rockville), who also carries a bill on the subject. “We need to take a hard look at the state’s transportation funding, because the current flat amount of funding we’ve been using is not cutting it. If we are serious about keeping folks safe on their daily commutes, we need to adjust the funding source for fixing our roads and bridges so we can give them the attention they’ve been needing for years.”
“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