2/27/08-The Minnesota Legislature voted Feb. 25 to override Gov. Tim Pawlenty’s veto of a 10-year, $6.6 billion transportation bill. In addition to higher fuel taxes, roads, bridges and transit also will get a boost from higher sales taxes and license tab fees.
The House voted 91-41 in favor of the legislation – HF2800 – that ends a long-running transportation funding debate. It needed 90 votes in the chamber for the override. The Senate followed suit on a 47-20 vote.
The per-gallon tax on gas and diesel will climb a nickel, to 25 cents per gallon, by the end of the year. The current 20-cent-per-gallon tax rate hasn’t changed since 1988.
The fuel tax will rise by 2 cents per gallon on April 1 and another 3 cents this fall. Another 3.5-cent increase will be phased in during the next few years to pay off road construction debt.
Also included in the bill is a quarter-cent increase in the sales tax in the seven counties surrounding Minneapolis-St. Paul. Registration fees for new vehicles bought throughout the state will increase after Sept. 1. In addition, annual license tab costs on affected vehicles also will rise.