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Group Urges Dayton to Raise Gas Tax, Tab Fees

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ST. PAUL (AP) – A transportation group created by Gov. Mark Dayton is calling for higher gas taxes and other fees and taxes to raise at least $50 billion more than current funding levels for roads and transit over the next two decades.

The Minnesota Department of Transportation released the advisory group’s recommendations Friday.

The recommendations include two ways to raise $15.2 billion through the gas tax – an up-front hike of 10 cents followed by small annual increases or a series of 3.5-cent increases over five years with small incremental increases afterward.

Another $4 billion for transit would come from increasing the sales tax in five Twin Cities counties by a half percentage point, or a nickel on a $10 purchase.

Raising vehicle license tab fees would bring in another $1.1 billion.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

 

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