Senator Anderson: Democrats’ transportation budget includes $2.7 billion in tax and fee increases

Friends and neighbors,

This week, the Senate heard the Democrats’ Transportation budget bill. This legislation contains $2.7 billion in tax increases, including tab fees and vehicle registration taxes as well as motor vehicle tax hikes. The tax increases are part of Democrats’ $10 billion tax increase agenda, which they are seeking despite the state holding a record $17.5 billion budget surplus. Among them:

  • $901.81 million: 8% increase to the vehicle registration tax. The bill also slows the vehicle depreciation schedule, so people could pay up to 33% more every year 
  • $223 million: Increasing license tab fees. This is a $7.50 fee per transaction, so everybody will pay more 
  • $214.8 million: Increasing the motor vehicle sales tax 

The bill also provides $50 million for the controversial Northern Lights Express passenger train to Duluth. A Met Council report on Northstar rail found ridership is less than half of original projections and it requires the highest per-passenger subsidy and lowest fare recovery of any comparable rail line. On the heels of the Southwest Light Rail boondoggle, the bill also spends another $50 million to extend the Blue Line Light Rail line from Target Field to Brooklyn Park. 

With a historic budget surplus, it is appalling that Democrats are seeking to raise Minnesotans’ taxes and fees by $2.7 billion. Under this legislation, Minnesotans are only getting higher costs, not better roads and bridges or safer transit. We all want to ensure we have the funding necessary to make critical infrastructure improvements. Yet this year’s Transportation budget bill will not achieve this goal.

Additionally, last week I highlighted how Senate Democrats passed a hyper-partisan State Government budget that will result in a 40% increase in spending above the previous budget cycle. On this Tuesday, April 25, Democrats passed their State Government policy bill that will result in even greater government obtrusion and more bureaucracy. 
 
We should be passing policies that ensure Minnesota government has strong oversight, is accountable to taxpayer dollars, and operates independently from special interest groups’ influence. The Democrats’ State Government policy bill does not advance these fundamental objectives. This legislation will only erode our checks and balances, reduce transparency in government, and put special interests ahead of taxpayers. I see this as a path to government that will diminish the role of the legislature by granting more authority to the executive branch. 
 
During the floor debate, Senate Republicans successfully offered several amendments to protect taxpayers, advance accountability, and keep the focus on a government that works effectively for all Minnesotans. Among them: 

  • Review State trooper pay with local police departments and potentially adjust to a more competitive trooper salary 
  • Require electric vehicle chargers on the Capitol to be covered by the user, protecting taxpayer dollars from being used for free EV charging

Concerns raised about the bill include provisions to: 

  • Remove Senate confirmation power over commissioners if the Senate does not act in 60 days 
  • Create the Office of Sustainability 
  • Remove legislative approval and oversight of state union contracts 
  • Remove the compensation limit for public employees, which currently requires state employees to make no more than 110% of the Governor’s salary (unless approved through petitioning MMB)

As we look ahead, the Democrats’ taxes omnibus bill is likely on the agenda soon. This legislation focuses on raising Minnesotans’ taxes at a time when we should be passing meaningful tax relief. I will continue to share updates on this legislation as it advances in the legislative process.

Contact My Office

I want to hear from you, my constituents, on issues that are important to you. Please feel free to reach out to my office with any concerns or ideas you may have. I will continue to keep your thoughts and concerns in mind as legislation comes before me. You can contact my office at sen.bruce.anderson@senate.mn or 651-296-5981.

Sincerely,

Bruce Anderson