Minnesota Legislature / 10-cent gas tax hike clears committee

03/17/2007

BY BRIAN BAKST
Associated Press


Three House Republicans helped steer a bill through committee Friday that includes a 10-cent-per-gallon increase in the state gas tax, although the prospects of overriding a likely gubernatorial veto still appear shaky.

The trio — Reps. Michael Beard, of Shakopee; Ron Erhardt, of Edina; and Dan Severson, of Sauk Rapids — joined 12 DFLers in moving an expansive road and transit spending bill through the House Transportation Finance Committee.

Severson said in an interview that he thinks the bill raises taxes too much and he would be more comfortable with a 5-cent bump. He said his support will only go so far.

"I won't trump the governor's veto," he said.

On Thursday, a comparable Senate committee approved a similar bill that would raise a smorgasbord of taxes to pay for road construction and expanded transit lines. Both bills also call for higher license tab fees and allow counties to enact new vehicle surcharges and to seek transportation-related sales tax increases.

If every allowable tax in the House bill was levied, it would pour another $1.2 billion into road and transit projects between now and June 2009.

Gov. Tim Pawlenty has vowed to veto any gas tax increase, saying the only palatable option is to have voters approve it in a statewide referendum.

"If everyone holds out for their idea of the perfect, they're going to end up with nothing," Pawlenty said this week. "Namely the transportation lobbyists. That's what they did for most of the 1990s, and it didn't serve the state well."

House Democrats control 85 seats but would need 90 votes to override a veto. In the Senate, a united DFL front would leave the chamber one vote short of the 45-vote override threshold.

The gas tax increase would be phased in a nickel at a time over the next two years. It would raise an estimated $510 million in fiscal years 2008-09.

Minnesota currently applies a 20-cent tax to every gallon of gas, a rate that hasn't changed since 1988.

Rep. Melissa Hortman, DFL-Brooklyn Park, said if Minnesota's tax had kept up with inflation, it would be 34 cents now.

The dime increase, she said, is "not too rich for my taste. It's a little too light."

Rep. Jeremy Kalin, DFL-Lindstrom, said the gas tax is the ultimate in user fees.

"It's dedicated money. It goes straight into new pavement and new projects," he said.

The transportation bill is on course to be voted on by the full House by the end of next week.