Gas Tax Proposal 19 Feb 14

ST. PAUL, Minn. (AP) — A coalition of transportation, business and labor interests proposes a new 5-percent sales tax on fuel in Minnesota to help raise money for new transportation projects.

The $750-million-a year roads and transit plan from the group calling itself Move MN unveiled the proposal Tuesday at a legislative hearing. In addition to $360 million annually from a wholesale fuel tax increase, the group proposes a three-quarter cent sales tax increase in the seven-county Twin Cities area to generate $335 million a year for transit projects.

Move MN wants $16 million for bike and pedestrian infrastructure, and to dedicate a sales tax on leased vehicles for an additional $32 million yearly for roads and transit.

Move MN has been working closely with House and Senate transportation chairmen on the proposal.