Dayton wants tax on railroads to improve safety

A train with empty oil tankers in Moorhead
Train traffic is a way of life for drivers and pedestrians in Fargo-Moorhead. Here, a train hauling empty crude oil tankers heads west at a Moorhead crossing, Feb. 27, 2014.
Ann Arbor Miller | For MPR News 2014

Gov. Mark Dayton is proposing new taxes on railroads to help pay for rail safety projects.

Calling traffic congestion caused by trains a statewide problem, Dayton said he wants $33 million a year in railroad taxes for 10 years to help fund safety improvements at rail crossings and improved emergency response training.

"Hundreds of railroad crossings that are blocked by these trains every day and night threatening emergency vehicles' access to emergency situations, slowing up everybody's commute," Dayton said.

The governor pitched his spending proposals for transportation and rail safety improvements today in Moorhead and Bemidji.

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Among the projects Dayton wants to fund is an underpass in Moorhead that would allow vehicle traffic to avoid trains. Moorhead officials say trains cause six hours of delays every day.

State and federal officials say the increased frequency of crude oil shipments on railroads put communities at risks from more accidents like the explosion that occurred west of Fargo in December 2013. Every day, trains carry about 500,000 barrels of oil through Minnesota.

Railroad officials oppose new taxes. Federal law prevents the state from imposing new taxes on railroads, say officials with the Minnesota Regional Railroads Association.

Dayton said the railroads need to contribute to the state's efforts to ensure safety.

"It seems to me just common sense and basic fairness to say that they should pay for part of the problem they're causing," Dayton said. "They should pay for the solution. They want to go to court, we'll go to court."

Dayton also is proposing a bonding bill to pay for rail projects, including a new underpass in Moorhead to separate rail and vehicle traffic.