Minnesota Narrowly Escapes Massive Gas Tax Increase

Minnesota just narrowly escaped a gas tax increase for the time being as lawmakers finally reached a budget deal on the evening of May 19th that excludes it.

Gas Tax Increase

Governor Tim Walz told Minnesotans that a gas tax would be at the top of his priority list in his term as governor but Minnesota Republicans vowed to never let this happen.

In his initial budget proposal, the gas tax would cost Minnesotans an average of $300 more a year but a poll by the Minnesota Chamber of Commerce and Minnesota Business Partnership found that 60% of Minnesotans greatly opposed the increase.

Minnesota was ranked the least friendly tax state in the nation in 2018. John Phelan, Economist at the Center of the American Experiment, says our current “gas tax may be the only reasonable tax rate Minnesota has left. Our income tax, estate tax, and corporate tax rates are sky-high compared to other states.”

It is clear that the gas tax would have had numerous detrimental effects to Minnesota’s economy including raising “the cost of every product sold on store shelves and the delivery of online purchases” Phelan says.

See more of what is included in the budget deal agreed upon by Minnesota lawmakers here.

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