From staff reports

With memories of prices approaching $2 a gallon fresh in Minnesotans’ minds, the idea of a higher gas tax is one that will surely have its share of critics.

Friday, December 14, 2001

With memories of prices approaching $2 a gallon fresh in Minnesotans’ minds, the idea of a higher gas tax is one that will surely have its share of critics.

But the issue is not whether gas costs too much – rather, it’s a matter of finding the best, most fair way to fund needed highway projects. Common sense suggests that charging users is the best way to do so, and a gasoline tax increase fits the bill.

The fact is that a gas tax increase, for the most part, would collect money from those who directly benefit from road construction. A proposal to be heard by the legislature this year would issue state bonds to pay for needed road projects and pay them back through gas tax increses somewhere between a fraction of a cent and five cents a gallon. The tax would increase incrementally, rather than having all the increase applied at once.

Since road repair is a contining need, it makes sence that it be funded from a dedicated source. Since Gov. Jesse Ventura cut license tab fees, which are another source of highway funds, there has been less guaranteed money for road projects.

The initial reaction to a gas tax can be negative because it’s a visible product that people are already sensitive about. But considering that Minnesota’s gas tax has not increased since 1988 – not even to keep up with inflation – this is an area where an increase makes sense.