Minnesota Governor Mark Dayton Proposes Gas Tax

The tax would be a wholesale tax paid by fuel suppliers as has become more common in the last two years, not a retail tax at the gas pump. The Democratic governor's main problem may be his timing—the house flipped to Republican control.

2 minute read

January 2, 2015, 5:00 AM PST

By Irvin Dawid


"The plan calls for a 6.5 percent wholesale surtax on gasoline -- separate from the existing 28.5 cents-per-gallon tax already levied," writes David Montgomery, political reporter at the St. Paul Pioneer Press (PP). "That means the tax would bring in more money when gas prices increase" [and less when prices decrease.]

This is a huge reversal from 2013 when the Minnesota Democratic Farmer Labor Party (DFL) controlled both houses of the Minnesota State Legislature and DFL Gov. Mark Dayton rejected their 7.5-cent gallon tax increase, as noted in April, 2013. "Elections have consequences," as the saying goes.

The Republican fix for crumbling roads and structurally deficient bridges: "shift money from public transit to roads," writes Montgomery.

"My gosh, should we spend a billion on a train when we can't fill potholes?" said incoming House Speaker Kurt Daudt

"Daudt said a gas tax increase is 'incredibly unpopular'", reminiscent of what Dayton told the then-Democrat controlled House earlier:

The Democratic governor, who fears that a gas tax increase lacks popular approval, maintained his support for "raising sales taxes in the seven-county Twin Cities metro area for light-rail and bus transit", but the Democratic chairman of the House transportation committee canceled a meeting in which they would take up a bill authorizing the regional sales tax. [Planetizen 2013].

Dayton remains committed to "a half-percent increase in the sales tax in the seven-county metro area," writes Montgomery about the Twin Cities metro region, double what was proposed in 2013, with revenue devoted to public transit.

The collapse of the I-35W bridge over the Mississippi River in Minneapolis on August 1, 2007 may be a distant memory for the incoming speaker. The bridge failure, including the death of 13 people, may have inspired the legislature in 2008 to successfully override the third veto by then-Republican Gov. Tim Pawlenty which resulted in an incremental 7.5-cent gas tax increase.

Michigan Gov. Rick Snyder had proposed converting the fuel excise tax to a wholesale sales tax in the fall, but the legislature opted for a general sales tax increase ballot proposal instead. 

Hat tip to AASHTO Daily Transportation Update

Wednesday, December 31, 2014 in Pioneer Press

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and "harrowing" close calls are a growing reality.

7 hours ago - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

June 15 - Fast Company

Bike lane in Washington D.C. protected by low concrete barriers.

DC Backpedals on Bike Lane Protection, Swaps Barriers for Paint

Citing aesthetic concerns, the city is removing the concrete barriers and flexposts that once separated Arizona Avenue cyclists from motor vehicles.

June 15 - The Washington Post