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Minn. Chamber: Increase gas tax

Posted: 2/2/05

By T.W. Budig
ECM capitol reporter

The Minnesota Chamber of Commerce proposes a nickel gas tax increase and other revenue enhancers to inject about $6 billion into transportation and transit.

Itís just smart business, Chamber officials argue.

One metro company wanting to ship cargo just 20 miles away, as the crow flies, had to drive 297 miles because of constricted roadway, low bridge decks, other obstacles, explained Fred Bobich, chair of the Minnesota Chamber Board of Directors.

Chamber officials believe their proposal, piggybacked on current state transportation bonding, will markedly help to address state transportation needs estimated at more than $1 billion a year.

ìThe (Chamber) package provides a well-rounded, multimodal vision for Minnesota,î said Jeffrey Gongoll, president of the 390-member strong Elk River Area Chamber of Commerce, speaking at a Capitol press conference Wednesday (Jan. 26).

The Chamberís transportation plan, Minnesota Moves FASTER, was crafted over months from meetings across the state, according to the Chamber.

They herald the proposal for its specificity in identifying 13 major transportation projects in the metro, 48 in Greater Minnesota, that will be completed within 10 years using new proposed revenues.
Some north metro projects targeted by the plan includes the Highway 610 completion ñ advancing construction by as much as six years ñ and the Highway 65/242 interchange.
Even if the transportation projects listed arenít local, the proposal still makes sense, said Gongoll.

ìIf we donít benefit specifically from the projects, we do benefit when everything else around us ñ especially the metro area ñ gets improvements.î he said, ìThatís going to help us,î said Gongoll.

The Chamber proposes a series of revenues sources to help fund the initiative.
Besides the proposed gas tax increase, the proposal includes expected toll dollars, bonding, motor vehicle sales tax transfer, and other sources.

That the Chamber is calling for a gas tax increase isnít new ñ it has for three years in a row.
As proposed, the gas increase would take the shape of a constitutional amendment needing approval by voters.
Sen. Geoff Michel, R-Edina, Senate sponsor of the proposed legislation, said he could support the measure.

ìAnd still be a Tim Pawlenty Republican, because theyíre going to take this to the voters,î he said.
If approved, a nickel tax increase would tie Minnesota for 11th place national in terms of the tax, according to the Chamber.

The average Minnesota driver will pay about $24 more annually were the gas tax raised a nickel.
Kathy Lindo, North Branch Area Chamber director, said in a phone interview that she does not know if she can support the whole plan, but ìit is very innovative.î

She said that transportation issues do need to be addressed and that unimproved roads can eventually bring the cost to consumers.

ìTransportation is a key factor in business,î she said.
The Minnesota Chamberís transportation proposal can be found at www.mnchamber.com.

Editorís note: Aaron Vehling contributed to this report.


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