MnPASS 2 Increase speed lanes State Highway System No new revenue Operations and Efficiency 2 Revise concept to generate more revenue State Highway System Low: Revenue Project potential varies Revenue depending upon the project / network Fuel Tax 5 Sales tax on fuel State Highway System estimated to be System High: County State Aid Highway System $870 million by 2022 Revenue Municipal State Aid System at current sales tax rate 3 Equalize fuel tax on all fuel types; i.e. link to diesel and State Highway System Low: estimated to be System other fuels County State Aid Highway System under $1 million Revenue Municipal State Aid System 2 Hybrid/electric vehicle tax State Highway System Low: estimated to be System County State Aid Highway System $4.5 million by 2022 Revenue Municipal State Aid System 12 Increase gas tax and all other special fuels State Highway System High: each cent System proportionally; phase in option County State Aid Highway System generates about $31 Revenue Municipal State Aid System million annually Motor fuel taxes are constitutionally dedicated for highway purposes and represent an appropriate, fee source of funding for highways. Increasing the gas tax can raise significant amounts of funds for highways, is easy to administer and is understandable and acceptable to the public. A gas tax increase could be phased in over time, i.e. three to five cents increase every two or three years.
MnPASS 2 Increase speed lanes State Highway System No new revenue Operations and Efficiency 2 Revise concept to generate more revenue State Highway System Low: Revenue potential varies depending upon the project / network Project Revenue Fuel Tax 5 Sales tax on fuel State Highway System County State Aid Highway System Municipal State Aid System High: estimated to be $870 million by 2022 at current sales tax rate System Revenue 3 Equalize fuel tax on all fuel types; i.e. link to diesel and other fuels State Highway System County State Aid Highway System Municipal State Aid System Low: estimated to be under $1 million System Revenue 2 Hybrid/electric vehicle tax State Highway System County State Aid Highway System Municipal State Aid System Low: estimated to be $4.5 million by 2022 System Revenue 12 Increase gas tax and all other special fuels proportionally; phase in option Motor fuel taxes are constitutionally dedicated for highway purposes and represent an appropriate, source of funding for highways. Increasing the gas tax can raise significant amounts of funds for highways, is easy to administer and is understandable and acceptable to the public. A gas tax increase could be phased in over time, i.e. three to five cents increase every two or three years. State Highway System County State Aid Highway System Municipal State Aid System High: each cent generates about $31 million annually System Revenue fee