Raise sales tax to fix transportation, Twin Cities legislators say

02/27/2007

BY DENNIS LIEN
Pioneer Press


Twin Cities residents concerned about traffic congestion could direct more sales-tax money for transportation projects under a funding package announced today at the state Capitol.

Two lawmakers proposed a half-cent sales tax increase dedicated to metro transportation and transit projects. Metro area residents, however, would have to approve the increase in a referendum.

The proposal from Sen. Dan Larson, DFL-Bloomington, and Rep. Melissa Hortman, DFL-Brooklyn Park, joins others aimed at addressing what is widely depicted as a worsening transportation problem in Minnesota. Gov. Tim Pawlenty has proposed a $1.7 billion bonding package, while other lawmakers have proposed increasing the gasoline tax by as much as 10 cents a gallon.

Pawlenty opposes the gas-tax increase and said today he also thinks the sales-tax increase for transportation is a bad idea. "I don't think raising taxes is a good way to go,'' Pawlenty said.

That didn't stop a dozen Twin Cities mayors, including Minneapolis Mayor R.T. Rybak, from endorsing the sales-tax idea.

Under it, voters could increase the sales tax from 6.5 percent to 7 percent, generating more than $200 million more a year, and a joint powers board consisting of metro-area officials would decide how that extra money would be spent. Counties outside the Twin Cities also could vote to extend the sales tax for transportation to themselves.

"Minnesota needs to make a bigger and stronger investment in our transportation infrastructure,'' Larson said at a Capitol news conference.