Minnesota Legislature passes $1.3B transportation deal with gas tax hike, sending it to Walz


Elizabeth Flores, Star Tribune file

Indexing the gas tax to inflation would boost it by 5 cents over the current 28.5 cents a gallon by 2027.

Lawmakers on Sunday sent the governor a $1.3 billion deal bolstering Minnesota's extensive transportation network over the next two years - an agreement that Democrats called "historic," while Republicans fumed over a last-minute move that would boost the state's gas tax.

The House passed the measure 69-61 Sunday following vigorous debate. The Senate soon followed, passing it on a party-line vote with Sen. Eric Pratt, R-Prior Lake, absent.

If Gov. Tim Walz signs it as expected, the bill would index the gas tax to inflation, resulting in a 5-cent increase over the current rate of 28.5 cents a gallon by fiscal year 2027. The bill being debated on Sunday would also raise a metro-area sales tax to fund transit projects and add a 50-cent fee on deliveries over $100.



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