Democrat Minnesota Gov Proposes Gas Tax Hike

Gov. Tim Walz has proposed a 20-cent gas tax increase.

Roads and bridges, schools and affordable health care coverage are top priorities in Gov. Tim Walz’s $49.5 billion budget proposal.

The new Democratic governor proposed a two-year spending plan Tuesday that reflects goals he touted on the campaign trail.

To help pay for the new spending, Walz’s budget includes a 20 cent gas tax increase phased in over two years and would increase the motor vehicle sales tax and registration tax. Those taxes and the gas tax would add $11 billion over ten years to fund transit and road and bridge improvements. His proposal includes a continuation of a tax on health care providers and pulls more money from corporations through changes to the state tax code.

Walz’s budget proposal for 2020 and 2021 would be a nearly 8 percent increase from the roughly $46 billion current two-year budget. The governor faces a tough political test in the months ahead, as he enters negotiations with Republicans at the Capitol who oppose tax increases and aim to hold down growth in state spending.

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