On Monday, March 20, the Senate Transportation Committee heard a Republican-backed proposal to ensure sustainable funding for Minnesota’s roads and bridges. Senate File 414 allows for 100% of tax revenue from the sale of auto parts to go from the general fund to the Highway User Tax Distribution Fund (HUTDF). This funding would help rebuild transportation infrastructure throughout Minnesota, including in small cities and townships. 

“Minnesota’s transportation infrastructure is in disrepair, and it is essential that we provide funding,” said State Senator Gary Dahms (R ‒ Redwood Falls). “My transportation priority has always been improving our state’s roads and bridges. By allocating 100% of tax revenue from the sale of auto parts, we create a massive new investment in roads and bridges through an existing, long-term funding stream. This will avoid adding a new mileage tax on commuters or raising taxes or fees such as gas taxes, sales taxes, and tab fees.” 

Senate File 414 directs 24% of the auto part sales tax revenue to be split evenly between small cities and townships. Currently, small cities with under 5,000 residents receive no dedicated funding, and township roads receive very little dedicated funding. 

“Minnesota’s smaller communities struggle to maintain their local roads and bridges. To address this issue, I am strongly supportive of directing a dedicated portion of this funding to our small cities and townships,” Senator Dahms concluded. 

In 2017, Republicans successfully led the effort to redirect a set portion of revenue from auto parts sales taxes to roads and bridges. During recent legislative sessions, Senate Republicans have pushed to significantly increase the percentage of the tax revenue from the sale of auto parts that is directed to the HUTDF. 

Senate File 414 was laid over for possible inclusion in an omnibus transportation bill.