Associated Press 2/18/14 By Patrick Condon
ST. PAUL, Minn. — A large coalition of transportation, business and labor interests called Tuesday for a new 5 percent sales tax on fuel in Minnesota to help raise money for roads and transit projects.
The group, which calls itself Move MN, laid out a $750-million-a-year spending plan at a legislative hearing. It includes two major sources of revenue: $360 million annually for roads from the 5 percent sales tax on wholesale fuel, and another $335 million for transit projects from a three-quarter-cent sales tax increase in the seven counties that make up the Twin Cities metropolitan area.
Move MN also seeks $16 million from a flexible federal account for bike and pedestrian infrastructure, and wants to dedicate the state’s sales tax on leased vehicles directly to road and transit funds for an additional $32 million a year. The group formed around the belief that if Minnesota wants to remain economically competitive, it needs a boost in transportation spending so it can reduce bottlenecks and repair battered infrastructure.