Opposition to Minnesota's gas tax hike proposal

Published: Feb. 25, 2019 at 5:18 PM CST
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Here is a press release from Fargo-Moorhead West Fargo Chamber of Commerce:

The Fargo Moorhead West Fargo Chamber of Commerce supports investing in Minnesota’s workforce, infrastructure and education. We acknowledge these vital needs as crucial to the economic and community success of the state. However, we don’t support an avenue that includes increasing taxes and spending. The Chamber is committed to advocating for a business friendly environment in Minnesota as it leads to economic success for the entire state.

Included in Governor Tim Walz’s budget proposal is an increase on the gas tax by 70%, raising the gas tax from the current 28.6 cents per gallon to 48.6 cents per gallon. This immense gas tax increase would make Minnesota the fourth highest in the nation. This plan specifically threatens border cities such as Moorhead, as they work to compete with surrounding communities and states. North Dakota enjoys a moderate 24 cent gas tax per gallon making for already stiff competition for neighboring Minnesota cities including Moorhead. Raising the gas tax in Minnesota this dramatically will drive Moorhead to lose more than just business on gas sales as individuals take their business across the bridge to Fargo. The Chamber advocates for sensible border city policies to protect the economic security of our border cities.

Border cities are especially sensitive to tax policies that put businesses at a competitive disadvantage with their peers. The Chamber will be reaching out to our area legislators in order to reiterate the importance of rejecting the 70% increase in gas tax and the other proposed business tax increases for the protection of the economic success of Moorhead and other Minnesota bordering cities in our region. This issue must be addressed at the state level when discussing the budget and gas tax.

The Chamber doesn’t support raising the gas tax as proposed by Minnesota Governor Walz, as an avenue to invest in the state’s transportation needs including roads and bridges. We support cultivating a business friendly environment with private-sector innovators to fuel growth in our economy.

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