MN Gov. Walz’s Budget Proposal Includes 20 Cent Per Gallon Gas Tax Hike

ST. PAUL, Minn. (FOX 9) – Gov. Tim Walz on Tuesday proposed hiking Minnesota’s gas tax by 20 cents per gallon to pay for road and bridge projects.

Under the governor’s spending proposal, the state’s gas tax would increase by 70 percent from the current 28.6 cents per gallon to 48.6 cents. That would make Minnesota’s gas tax the fourth-highest in the U.S., behind only Pennsylvania, California and Washington.

The move would raise $6.5 billion over 10 years, Walz’s office said. The governor is also proposing to increase the state’s vehicle registration tax and motor vehicle sales tax to raise an additional $4.5 billion for infrastructure projects.

Walz on Tuesday unveiled his $49 billion, two-year spending plan that will dominate conversation at the state Capitol over the next three months. His proposal faces an uncertain future in the divided state Legislature, and Republicans who control the Senate have vowed to fight any tax increase.

Among Walz’s other proposals:

  • Expand the state’s working family tax credit, a move Walz expects will save 46,700 households an average of $227.
  • Reinstate a two percent tax on medical providers. The tax is scheduled to end this year, and state analysts estimate Minnesota would lose nearly $1 billion in revenue by 2023 without it.
  • Creating a public option so more Minnesotans can buy into state-run health insurance under a program called ONECare Minnesota.
  • Increase K-12 education funding by $189 per student in the first year of the biennium and by $130 in the second year.
  • Spend $70 million on a broadband grant program so all Minnesota households will have high-speed internet access by 2022.

KVRR will interview Gov. Walz on his budget proposal and get a Republican response from State Sen. Mark Johnson of East Grand Forks. See their reaction on KVRR local news at 6:00 and 9:00.

Categories: Local News, Minnesota News, Politics / Elections