Property Taxes Help Fund Roads As Gas Tax Revenue Dwindles

Revenue from gas taxes has been down in recent years, leaving little money to handle road improvements and maintenance. The State of Minnesota has shifted the costs to property owners.

1 minute read

May 15, 2007, 9:00 AM PDT

By Nate Berg


"Dedicated roads funding from state and federal road-user sources such as fuel and vehicle taxes has been relatively stagnant for years. Meanwhile, local property levies for roads and bridges in Minnesota have doubled since the mid-1990s -- to an estimated $1.6 billion in 2006. The result, little noticed by most Minnesotans, is that property taxes have become the state's single largest funder of roads, nearly equal to all state and federal sources combined."

"And the connection between crumbling, congested roads and rising property taxes is helping fuel legislative debate over increasing state taxes for transportation."

"State transportation officials under Gov. Tim Pawlenty acknowledge that local governments, which manage 90 percent of Minnesota's 132,000 miles of streets and roads, need more revenue to build and maintain them. But Pawlenty opposes increasing state-level taxes for transportation, more than a third of which go to local road expenses."

Monday, May 14, 2007 in Minneapolis-St. Paul Star Tribune

View form second story inside Southdale Mall in Edina, Minnesota with escalators and model cars parked on downstairs floor.

The Mall Is Dead — Long Live the Mall

The American shopping mall may be closer to its original vision than ever.

March 21, 2024 - Governing

View of Austin, Texas skyline with river in foreground during morning golden hour.

The Paradox of American Housing

How the tension between housing as an asset and as an essential good keeps the supply inadequate and costs high.

March 26, 2024 - The Atlantic

Houston, Texas skyline.

Report: Las Vegas, Houston Top List of Least Affordable Cities

The report assesses the availability of affordable rental units for low-income households.

March 22, 2024 - Urban Edge

Aerial view of Anchorage, Alaska downtown with mountains in background at golden hour.

Anchorage Leaders Debate Zoning Reform Plan

Last year, the city produced the fewest new housing units in a decade.

March 28 - Anchorage Daily News

Young man in wheelchair crossing zebra crosswalk.

How to Protect Pedestrians With Disabilities

Public agencies don’t track traffic deaths and injuries involving disabled people, leaving a gap in data to guide safety interventions.

March 28 - Governing

Aerial view of mountain town of Steamboat Springs, Colorado in the winter with snow at dusk.

Colorado Town Fills Workforce Housing Need With ‘Dorm-Style’ Housing

Median rent in Steamboat Springs is $4,000 per month.

March 28 - CBS News

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.