Gas Tax Going Up

Minnesota’s gasoline tax increases by three cents a gallon beginning Wednesday.

It was bumped up two and a half cents earlier this year, after the Minnesota Legislature overrode a gubernatorial veto of a transportation spending package. The $6.6 billion highway and transit bill relied in part on a gas tax hike of up to 8.5 cents a gallon in the coming years.

With the new increase, the state gas tax will be at 25.5 cents a gallon. Before the override, Minnesota’s gas tax had remained at 20 cents a gallon for about 20 years. Gas tax revenue is constitutionally dedicated to transportation projects.

Supporters of the legislation said it was needed to start clearing a backlog of needed infrastructure improvements. Opponents said Minneostans cannot afford the tax increase, particularly in tough economic times.

The gas tax goes up to 27.1 cents a gallon next July.