Sales Tax for Transit Catching on in Twin Cities

Five counties in metropolitan Minneapolis have approved the creation of a new quarter-cent sales tax that will be dedicated to funding transit projects.

"In historic votes that could hasten development of new rail lines and bus transitways in the Twin Cities area, three more metro counties Tuesday approved a new transit sales tax that takes effect on July 1."

"Hennepin and Dakota county commissioners both approved the quarter-cent sales tax -- which would amount to a penny on a $4 purchase -- on 5-2 votes, joining Ramsey and Anoka counties, which passed the tax last week."

"The new tax could raise more than $100 million in 2009."

"The optional tax is the result of the transportation bill passed by the Legislature in February over the governor's veto. Metro counties that passed the tax will join a joint powers board that will award grants and issue bonds for transit projects. Each county also will impose a $20 excise tax on vehicle sales by auto dealers."

Full Story: 3 more counties OK transit sales tax


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