Minnesotans currently pay a motor vehicle sales tax when they purchase a new or used car or truck in Minnesota.
In 1981, the Legislature passed a law dedicating all motor vehicle sales tax revenue to highways and transit. However, for 25 years some (or all) of this money has been diverted away from transportation to pay for other state programs. More than $6 billion in motor vehicle sales tax revenue has been used for non-transportation purposes in this time.
Currently, only 54 percent of the existing motor vehicle sales tax revenue is being spent on transportation and there is no dedicated revenue source for public transit. If the Transportation Amendment is approved by voters, 100 percent of the revenue will go to highways and public transit. More than $300 million per year in additional revenue will be available for Minnesota’s roads, bridges and transit, without raising taxes. The phase-in of the revenue will occur over five years, beginning in 2007 with the full 100 percent dedication in place by 2012.
More info at
www.voteyesmn.org