Legislative Update: Gas Tax Hike Proposal Returns?

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April 9, 2021

Democrat Budget Highlighted by Massive Tax Hikes 

This week, Democrats unveiled their taxes omnibus budget bills. Unfortunately but unsurprisingly, the bills include numerous tax increases that will prove harmful for Minnesotans.

In total, their tax bill alone bill raises taxes by more than $1 billion and fails to fully protect businesses from Paycheck Protection Program (PPP) tax hikes on forgiven loans. The bulk of the tax revenue comes from a brand-new 5th tier income tax of 11.15%, like the Governor's plan, which would give Minnesota the 2nd highest top income tax rate in the country and directly impact many businesses who have been hit hard during during Governor Walz's shutdown.. 

On top of this, Democrats are seeking even more tax revenue through their Transportation Omnibus bill including a new gas tax and light rail tax. In fact, their transportation bill raises more than $1.5 billion in tax and fee hikes.

Here is a quick rundown:

• A gas tax increase ($363 million over four years) by linking Minnesota's gas tax to the Highway Construction Cost Index. This would result in an automatic annual inflationary gas tax increase. 
• A Light Rail Tax would impose sales tax increase to fund light rail and other transit ($916 million over four years). Democrats are proposing a half-percent increase in the Metro sales tax. 
• A Motor Vehicle Sales Tax (MVST) increase ($120 million over four years). 
• Registration tax increase ($149 million over four years) through changes to vehicle depreciation schedules. 
• Luxury vehicle registration tax increases ($10.7 million over four years). To recap, Democrats introduced more than $1.5 billion in transportation tax increases without a single bill hearing or minute of discussion in committee.

Minnesota has a $1.6 billion surplus and billions more coming from the federal government. There is no reason to be raising taxes on Minnesotans and risk hampering our economic recovery. 

I will fight these awful proposals in the House and encourage the Republican Senate to stand strong against these tax hikes. 

DFL Anti-law Enforcement Public Safety Bill

This week House Democrats unveiled their Public Safety Omnibus bill, which includes numerous anti-law enforcement policies, as well as provisions to reduce sentences for criminals and hide even violent offenses from the public record. 

Minnesota Democrats are pushing an anti-law enforcement agenda while reducing consequences for criminals. It's madness. Democrats are pushing policies with bipartisan opposition because of the anti-law enforcement views on the far left of the Democrat caucus.

There are good provisions in the bill that could have strong bipartisan support, including important reforms to Minnesota's Criminal Sexual Conduct (CSC) laws and grants to combat sex trafficking, but the same radical partisan agenda that derailed the SAFE Account earlier this session makes it impossible to support.

Minnesota's top law enforcement organizations — the Minnesota Police and Peace Officers Association (MPPOA), the Minnesota Chiefs Association, and the Minnesota Sheriff's Association — sent letters this week in opposition to the Public Safety Omnibus, highlighting several concerns, including unfunded mandates on local law enforcement agencies, automatic expungement of numerous violent crimes, and granting activist civilian organizations policy and discipline power over local agencies.

The law enforcement groups also noted their disappointment that the bill did not include funding for the proposed SAFE Account, as well as the Arik Matson bill that strengthens penalties for deadly force assault of police officers and other criminal justice officials. The Officer Matson bill (SF82) has bipartisan co-authors in the Senate and passed the Senate Judiciary Committee without opposition on a voice vote earlier this year.

You can find a copy of MPPOA's letter here, and a copy of the letter from the Minnesota Police and Sheriffs here. 

Please Stay in Touch 

Please continue to stay in touch to share your thoughts or concerns. My phone number is 651-296-4265 or you can email me at rep.matt.grossell@house.mn.

Have a great weekend and God Bless!

Matt

227 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
ph: 651.296.4265