Business group calls for gas tax hike for ailing roads

Published 11:40 am Thursday, January 8, 2015

ST. PAUL — A coalition of businesses, labor groups and others is calling for a new statewide sales tax on gas to pay for road and bridge repairs.

The group calling itself Move MN proposed today that the Legislature add a 6.5 percent sales tax on gas in addition to what’s assessed per gallon. They said the change would mean a 14-cent increase per gallon based on recent cost averages. The group also would increase a general metropolitan-area sales tax by a half-percent for transit projects.

Move MN’s proposal is similar to what Gov. Mark Dayton has suggested.

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Funding infrastructure repairs is one of the biggest challenges facing state lawmakers this session. Republicans who control the state House said they want to pay for repairs without raising taxes.