Feb 12, 2008 12:21 pm US/Central
For Some, Gas Tax Hike Is 5 Cents Too Many
ST. PAUL (WCCO) ―
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If the transportation plan passes, Minnesota drivers would end up paying 45.4 cents in local, state and federal taxes on gas.
AP
Legislative leaders promised to unveil a transportation plan Tuesday that would raise the gas tax for roads. It would be the first gas tax increase in Minnesota in 20 years.
And while most motorists, who are already feeling the pinch at the pump, seemed to resist the proposed 5-cent per gallon tax hike, there is at least one business in the Twin Cities metropolitan area that welcomes the idea.
One On One is a combination bike and coffee shop. Owner Dan Keene said every time the prices at the gas pump jump up, so does the number of people riding bicycles.
"I think, in the end, it's good for business," he said. "I like to ride my bike most of the time rather than guzzle gas."
Keene said he spends, at the most, $30 a week on gas, so the effect of the tax hike would be minimal on his pocketbook, but other commuters in the Twin Cities thought they would end up paying more than they could afford.
Karen Nerdahl, who drives 100 miles every day for her job, said a gas tax increase would hurt both her own pocketbook as well as that of her employer, which gives her partial reimbursement.
John Velibar said he pays about $100 every week, and said that every penny counts.
"I think gas costs a lot already," he said. "I think that is really stealing from us."
If the transportation plan passes, Minnesota drivers would end up paying 45.4 cents in local, state and federal taxes on gas, which is actually about one and a half cents cheaper than the national average.
Wisconsin drivers spend approximately 11 cents more toward taxes than Minnesotans.
The money generated from the tax increase would go to fund $1.4 billion in transportation needs.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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