Temperatures will continue to fall over the next few days

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

Two recently imposed taxes and fees that feed road construction and other transportation projects are being targeted by House Republicans, who want to drop a retail delivery charge and prevent future automatic increases to the gas tax.

Their effort would roll back the taxes and fees approved when Democrats had full control of state government, but could leave a gap in financing for transportation improvements. The proposals are already getting aired as the GOP holds hearings while Democrats continue to boycott over a power dispute. 

“It’s time we take a stance to make sure people want to move here and want to live here,” Rep. Jim Joy, R-Hawley, said at press conference Wednesday used to outline three bills to undo DFL measures put in place over the prior two years. 

Republicans are seeking to eliminate a 50-cent delivery fee for sales transactions at $100 or more. 

At a hearing of the House Transportation Committee, Steve Barthel with Minnesota Grocers Association testified in favor of the bill. 

“Every one of the projected $55 million collected annually by the delivery fee comes directly out of the pockets of Minnesota consumers who are already facing an increased cost of living,” he said.

The proposal also would cancel future automatic gas tax hikes that were designed to keep up with inflation. It would freeze the state tax on gas at 31.8 cents rather than let it rise again next January. 

But unless that revenue is somehow replaced, the two repeals would leave financial holes in an already strained transportation budget.

Anne Finn with the League of Minnesota Cities said revenue sources dedicated to transportation and split among levels of government have been helpful for her city members. 

“The main concern that we hear from our cities is that we want the funding source to be reliable, so that they know that it's coming from year to year,” Finn told the committee.  

“We consider the retail delivery fee to be a user fee that helps pay for the wear and tear of our roads and is a fair approach given the significant increase in delivery vehicles on the system,” Emily Murray with the Association of Minnesota Counties 

The bills have a long way to go before reaching floor votes. Any of them would require 68 votes to clear the House and then need buy-in from a closely divided Senate to proceed to Gov. Tim Walz, who supported putting the taxes into law in the place.

Republicans currently have 67 House seats. So far, none of the 66 current Democrats have been at the Capitol for floor sessions or committee hearings.

Rep. Chris Swedzinski, R-Ghent, said the Republican-led hearings without Democrats have been fair and he encouraged Democrats to show up.

“The doors are open,” Swedzinski said. 

Politics and Government News

NewsPartners

Homepage

Clay Masters

Author

Minnesota House Republicans are seeking to roll back taxes and fees approved when Democrats had full control of state government. A delivery fee and automatic increases to the gas taxes are on the GOP chopping block.

House Republicans seek to roll back DFL taxes, fees tied to transportation programs

Go Deeper.

Like this?