On Tuesday Senator Jeff Howe (R-Rockville) presented the Auto Parts Sales Tax bill in the Transportation committee. This legislation seeks to increase funding towards the state’s transportation budget, without raising taxes.

“We need to take a hard look at our transportation funding,” said Senator Howe. “The current flat amount of funding just isn’t sufficient. If we want to keep up with maintaining our roads, highways, and bridges, we need to adjust the funding so it continues to grow over time.”

Under current law, every year a flat amount of $145.644 million is taken from the auto parts sales tax and given to the Highway Users Tax Distribution Fund (HUTDF). This HUTDF funding supports highways, roads, and streets across the state. This bill would adjust that amount to 60% of auto parts sales tax funds, so that the Transportation fund continues to grow over time. 54% of funding would go to HUTDF, 3% would go to the Small Cities Account, and 3% would go to the Townships Road Account.

Also included in this bill as amended is the creation of the Township Road Improvement Account, which allows towns to apply for grants or loans from MnDOT, which must then work with townships to create a criterion for which projects would be selected based on the availability of funding, the effectiveness of the project, the amount of people positively impacted, the project’s contribution to local and regional economic development, and the ability for the town to provide maintenance.

“Our local communities and townships need these funds,” continued Senator Howe. “The Governor released his budget last month and he failed to address transportation funding.  His proposal was to do nothing. Our roads are in bad shape, and this bill ensures they get adequate steady funding to give our roads the attention they’ve been needing for years.”