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Associated Press, Published November 30 2012

Group urges Dayton to raise gas tax, tab fees

ST. PAUL — A transportation group created by Gov. Mark Dayton is calling for higher gas taxes, vehicle registration fees and Twin Cities sales taxes to raise at least $90 billion for road and transit over the next two decades.

The Minnesota Department of Transportation released the advisory group's recommendations Friday.

The recommendations include two ways to raise $15.2 billion through the gas tax — an up-front hike of 10 cents followed by small annual increases or a series of 3.5-cent increases over five years with small incremental increases afterward.

Another $4 billion for transit would come from increasing the sales tax in five Twin Cities counties by a half percentage point, or a nickel on a $10 purchase.

Raising vehicle license tab fees roughly 10 percent would bring in another $1.1 billion.


Copyright 2012 The Associated Press.