Minnesota's transportation finance bill, passed late last month over a gubernatorial veto, raises fuel taxes starting Oct. 1 but puts the brakes on privatization of highways.


The American Trucking Associations' state laws newsletter says there are in effect two fuel tax increases, the first a straight 5-cents-a-gallon increase on gasoline and diesel fuel, effective Oct. 1 this year. The second is a phased-in surcharge to fund transportation bonds issued by the state. The surcharge will take effect at 0.5 cents a gallon on Aug. 1, and will be increased each succeeding July 1 by 1.6 cents, 0.4 cents, and 0.5 cents. For fiscal years after 2012, the increase will be computed according to the debt service required.

In addition to the fuel tax increases, the bill includes a provision for what is termed a "value capture study," a look at how improved transportation facilities increase the value of surrounding land and other properties, and at ways the state may take these increases into account in future transportation funding plans.

There are also several provisions, two aimed specifically at local governments in the Twin Cities area, allowing local option sales taxes, primarily for transportation, and seeking to ensure that metro-area counties coordinate their efforts in spending any such revenues.

Finally, there are two provisions addressing toll roads and privatization. The first prohibits any road authority from ever converting any existing road to a toll road (there are exceptions for tolls that increase highway capacity) or from requiring a commercial vehicle to use any toll facility. The second prohibits any road authority from transferring, whether by sale or lease, any road to a private party for it to operate.