MN Lawmakers Pass Gas Tax, Retail Delivery Fee, And Metro Sales Tax

ST. PAUL, MN — The Minnesota Legislature on Sunday passed three major tax measures as part of a transportation bill. The bill sent to the governor's desk implements a delivery fee, ties the state gas tax to inflation, and adds a metro-wide sales tax.

The measures are intended to pay for the maintenance of the state's transportation infrastructure.

Walz is expected to sign the bill into law.

Delivery fee

Despite protests from businesses, Minnesota's Democratic majority at the Capitol passed a 50-cent fee on retail deliveries of more than $100.

There are certain exemptions from the fee, however, including:

• Baby products
• Drugs
• Medical devices
• Food (including restaurant deliveries)

Retailers that generate less than $1 million in annual sales are also exempt.

Gas tax

Minnesota's gas tax hasn't been raised since 2008. It currently sits at 28.5 cents. But under the transportation bill, the gas tax would be tied to inflation.

Once implemented, the gas tax is expected to jump up 5 cents by 2027, the Star Tribune reported.

Metro sales tax

Under the transportation bill is a requirement that the Metropolitan Council impose a 0.75 percent sales tax on retail purchases in the seven counties of the Twin Cities metro area. The money would go to maintain the metro's transit systems.

Tax rebates, credits

Minnesotans can also expect money to flow back to them as a result of the $17.5 billion surplus.

Democrats in the majority agreed to send one-time checks of $260 to individuals who make up to $75,000 or $520 for married couples earning up to $150,000.

Families that qualify will also get $260 per child up to three.

A child tax credit will also send money to families earning less than $90,000.

Additionally, about 80 percent of Minnesotans currently on Social Security will be exempt from taxes as a result of a measure passed this session.

Homeowners and renters would also get one-time in their property tax refunds.

Reporting from the Associated Press was used in this story.